Document:

Exhibit 10.10

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is made by and between Akero Therapeutics, Inc., a Delaware corporation with its principal place of business at 170 Harbor Way, South San Francisco, CA 94080 (the “Company”), and William White (the “Executive”) and is effective as of the closing of the Company’s first underwritten public offering of its equity securities pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Effective Date”).  Except with respect to the Restrictive Covenants Agreement and the Equity Documents (each as defined below), this Agreement supersedes in all respects all prior agreements between the Executive and the Company regarding the subject matter herein, including without limitation (i) the Employment Agreement between the Executive and the Company dated April 22, 2019 (the “Prior Agreement”), and (ii)  any offer letter, employment agreement or severance agreement.

 

WHEREAS, the Company desires to continue to employ the Executive and the Executive desires to continue to be employed by the Company on the new terms and conditions contained herein.

 

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

 

1.                                EMPLOYMENT.  The Company hereby employs the Executive, and the Executive hereby accepts employment, upon the terms and subject to the conditions hereinafter set forth.  At all times, the Executive’s employment with the Company will continue to be “at-will,” meaning that the Executive’s employment may be terminated by the Company or the Executive at any time and for any reason, with or without cause, subject to the terms of this Agreement.

 

2.                                JOB TITLES AND DUTIES.

 

(a)                                 Title.  The Executive shall continue to be employed as the Company’s Executive Vice President, Chief Financial Officer and Head of Corporate Development (the “CFO”) and shall report to the Chief Executive Officer (the “CEO”).  To the extent applicable, the Executive shall be deemed to have resigned from all officer and board member positions that the Executive holds with the Company or any of its respective subsidiaries and affiliates upon the termination of the Executive’s employment for any reason.  The Executive shall execute any documents in reasonable form as may be requested to confirm or effectuate any such resignations.

 

(b)                                 Duties.  As CFO, the Executive shall have responsibilities and duties as may from time to time be prescribed by the CEO. The Executive shall devote himself exclusively to the performance of his duties during normal working hours and at all other times which may be reasonably necessary for the proper performance of his duties. The Executive will not engage in any other employment, any additional consulting or other business activities (whether full-time or part-time), without the prior approval of the Company’s Board of Directors (the “Board”), provided that the Executive may engage in religious, charitable and other community activities so long as such activities do not interfere or conflict with the Executive’s obligations to the Company.

 

 

(c)                                  Location. The Executive shall work out of New York, New York and shall report to the Company’s San Francisco, CA and/or other offices as needed to perform the Executive’s duties and responsibilities. The Company shall provide the Executive with office space in New York, New York.

 

3.                                TERM.  The Executive’s employment hereunder shall commence on the Effective Date and shall continue until it is terminated in accordance with the provisions of Section 6 (the “Term”).

 

4.                                COMPENSATION AND BENEFITS.  Until the termination of the Executive’s employment hereunder, in consideration for the services of the Executive hereunder, the Company shall compensate the Executive as follows:

 

(a)                                 Base Salary.  The Company shall pay the Executive, in accordance with the Company’s standard payroll practices as in effect from time to time, a base salary (the “Base Salary”).  The Base Salary will be paid at an annual rate of $400,000. Notwithstanding the foregoing, at the Board’s discretion the Company may increase the Base Salary from time to time.

 

(b)                                 Incentive Bonus.  The Executive shall be eligible to receive an annual bonus with a target of 40% of the Base Salary (the “Target Bonus”).  The amount of any such bonus shall be in the sole discretion of the Board.  If a bonus is awarded for any year, it shall be paid no later than March 15 of the following year.  Except as set forth herein, the Executive must be employed by the Company on the date of payment in order to receive any bonus that has been awarded to him.  Notwithstanding the foregoing, at the Board’s discretion the Company may award other bonus compensation and/or increase the target annual bonus from time to time.

 

(c)                                  Vacation.  The Executive shall be entitled to four weeks’ vacation each calendar year, which shall accrue ratably over the course of the year and must be used in accordance with the Company’s vacation policy as may be in effect from time to time.

 

(d)                                 Equity.  Any equity awards held by the Executive shall continue to be governed by the terms and conditions of the Company’s applicable equity incentive plan(s) and the applicable award agreement(s) governing the terms of such equity awards held by the Executive (collectively, the “Equity Documents”).  In addition, upon the earlier of (x) six (6) months after the consummation of a Sale Event (as defined in the Company’s 2019 Stock Option and Incentive Plan, as amended and restated thereafter from time to time, or its successor (the “Plan”)) and (y) termination of the Executive’s employment following the consummation of a Sale Event, other than termination for Cause, 100% of any unvested shares of the non-qualified stock option granted to the Executive on April 5, 2019 (the “Initial Equity Award”) shall vest effective as of the date of the event set forth in (x) or (y), as applicable.  Notwithstanding anything to the contrary in the Plan or any stock option agreement, in the event that the Executive (i) terminates his employment for Good Reason pursuant to Section 6(d) of this Agreement and (ii) the condition giving rise to Good Reason is the requirement of the Executive to relocate to a location that is not located within 35 miles of the Executive’s residence in New York, New York, then the Initial Equity Award shall be subject to nine (9) months of accelerated vesting as of the Date of Termination; provided that the Executive enters into the Separation Agreement and Release (as defined below) and it becomes effective within the timeframe set forth therein.

 

2

 

(e)                                  Other Benefits.  The Executive shall be entitled to participate in all benefit programs that the Company establishes and makes available to its executives to the extent that the Executive’s position, tenure, salary, age, health and other qualifications make him eligible to participate.  Such participation shall be subject to (i) the terms of the applicable plan documents, (ii) generally applicable Company policies and (iii) the discretion of the Board or any administrative or other committee provided for in or contemplated by such plan.

 

(f)                                   Section 409A.

 

(i) Anything in this Agreement to the contrary notwithstanding, if at the time of the Executive’s “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), the Company determines that the Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that the Executive becomes entitled to under this Agreement on account of the Executive’s separation from service would be considered deferred compensation subject to the twenty percent (20%) additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (x) six (6) months and one (1) day after the Executive’s separation from service, or (y) the Executive’s death.

 

(ii)                                  The parties intend that this Agreement will be administered in accordance with Section 409A of the Code.  To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner so that all payments hereunder comply with Section 409A of the Code.  The parties agree that this Agreement may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party.

 

(iii)                               All in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Company or incurred by the Executive during the time periods set forth in this Agreement.  All reimbursements shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred.  The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year.  Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

 

(iv)                              To the extent that any payment or benefit described in this Agreement constitutes “non-qualified deferred compensation” under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Executive’s termination of employment, then such payments or benefits shall be payable only upon the Executive’s “separation from service.” The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation Section 1.409A-1(h).

 

(v)                                 The Company makes no representation or warranty and shall have no liability to the Executive or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such Section.

 

3

 

(vi)                              If under this Agreement an amount is to be paid in installments, each installment shall be treated as a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii).

 

5.                                EXPENSES.  The Company shall reimburse the Executive for all reasonable expenses of types authorized by the Company and incurred by the Executive in the performance of his duties hereunder, including travel and lodging expenses incurred in the course of travel to locations for Company purposes. The Executive shall comply with such budget limitations and approval and reporting requirements with respect to expenses as the Company may establish from time to time; including any established, or to be established, travel policy, provided that subject to the prior approval of the CEO, Executive shall be entitled to travel business class (if available) on flights longer than five (5) hours in duration.

 

6.                                TERMINATION.  The Executive’s employment hereunder may be terminated without any breach of this Agreement under the following circumstances:

 

(a)                                 Death or Disability.  The Executive’s employment hereunder shall terminate upon the death of the Executive or, at the option of the Company, in the event of the Executive’s disability.  The Executive shall be deemed disabled if an independent medical doctor (selected jointly by the Company and the Executive) certifies that the Executive has for 90 consecutive days or 180 days (which need not be consecutive) in any 12-month period been disabled in a manner which makes him unable to perform the essential functions of his then existing position or positions with or without a reasonable accommodation.  Under such circumstances, the Executive hereby agrees to submit to medical examination by such medical doctor.

 

(b)                                 Termination by the Company for Cause.  For “Cause” immediately upon written notice by the Company to the Executive.  For purposes of this Agreement, a termination by the Company shall be for Cause if any one or more of the following has occurred:

 

(i)                               the Executive shall have committed an act of fraud, misappropriation or breach of fiduciary duty against the Company or any of its affiliates; or

 

(ii)                            the Executive shall have been convicted of, or pleaded guilty or nolo contendere to, any crime triable upon indictment or involving moral turpitude; or

 

(iii)                         the Executive shall have been chronically absent from work for reasons that were not excused, which shall mean a failure to be present and available, during normal work hours, at the Executive’s home office or wherever his duties are required to be performed; or

 

(iv)                        the Executive shall have refused, after written notice, to obey any lawful direction by the Board which is consistent with the Executive’s duties hereunder; or

 

(v)                           the Executive shall have breached materially any of the provisions or representations of this Agreement.

 

Any determination of Cause under subsections (iii), (iv) or (v) above will be made by the Chief Executive Officer of the Company, provided that no such determination may be made until the Executive has been given written notice detailing the specific Cause event and a period of 30

 

4

 

days following receipt of such notice to cure such event to the reasonable satisfaction of the Company.

 

(c)                                  Termination by the Company without Cause.  The parties agree that the Company may terminate the Executive’s employment hereunder without Cause upon written notice, subject to the terms set out in Section 7 below.  Any termination by the Company of the Executive’s employment under this Agreement that does not constitute a termination for Cause under Section 6(b) and does not result from the death or disability of the Executive under Section 6(a) shall be deemed a termination without Cause.

 

(d)                                 Termination by the Executive for Good Reason.  The Executive may resign for Good Reason.  “Good Reason” shall mean the occurrence, without the Executive’s prior written consent, of any of the events or circumstances set forth in clauses (i) through (iv) below; provided, however, that a termination for Good Reason by the Executive can only occur if (x) the Executive has given the Company a written notice indicating the existence of a condition giving rise to Good Reason, and the Company has not cured the condition giving rise to Good Reason within 30 days after receipt of such notice (the “Cure Period”), and (y) such notice is given within 60 days after the initial occurrence of the condition giving rise to Good Reason and termination for Good Reason occurs within 180 days after such initial occurrence of the condition giving rise to Good Reason.  The conditions giving rise to Good Reason are as follows: (i) a material diminution in the Executive’s rate of Base Salary or Target Bonus opportunity described in Section 4(b); (ii) a material diminution in the Executive’s authority or a diminution in the Executive’s title; (iii) a material breach by the Company of this Agreement; or (iv) the requirement of Executive to relocate to a location that is not located within 35 miles of the Executive’s residence in New York, New York.  If the Company cures the condition giving rise to Good Reason during the Cure Period, Good Reason shall be deemed not to have occurred.

 

(e)                                  Termination by the Executive other than for Good Reason.  The Executive may resign upon written notice to the Company in circumstances that do not constitute Good Reason.

 

Upon termination of employment for any reason, the Company shall be obligated to pay the Executive: (A) the Base Salary payable to Executive under Section 4 through the Date of Termination, (B) any bonus for the immediately preceding fiscal year that is due and owed to the Executive that remains unpaid, (C) any expense reimbursements under Section 5 for expenses reasonably incurred in the performance of the Executive’s duties prior to termination, and (D) the value of any accrued but unused vacation accrued through the Date of Termination (collectively, the “Accrued Benefits”).

 

7.                                SEVERANCE PAY AND BENEFITS.

 

(a)                                 Severance Pay and Benefits upon Termination by the Company without Cause or by the Executive for Good Reason outside the Change in Control Period.  During the Term, if the Executive’s employment is terminated by the Company without Cause as provided in Section 6(c), or the Executive terminates employment for Good Reason as provided in Section 6(d), each outside of the Change in Control Period (as defined below), then in addition to the Accrued Benefits, and subject to (i) the Executive signing a separation agreement and release in substantially the form attached hereto as Exhibit A (the “Separation Agreement and Release”), and (ii) the Separation Agreement and Release becoming irrevocable, all within 60

 

5

 

days after the Date of Termination (or such shorter period as set forth in the Separation Agreement and Release):

 

(i)                                     The Company shall pay the Executive an amount equal to 9 months of the Executive’s Base Salary (the “Severance Amount”); and

 

(ii)                                  subject to the Executive’s copayment of premium amounts at the applicable active employees’ rate and the Executive’s proper election to receive benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company shall pay to the group health plan provider, the COBRA provider or the Executive a monthly payment equal to the monthly employer contribution that the Company would have made to provide health insurance to the Executive if the Executive had remained employed by the Company until the earliest of (A) the 9 month anniversary of the Date of Termination; (B) the Executive’s eligibility for group medical plan benefits under any other employer’s group medical plan; or (C) the cessation of the Executive’s continuation rights under COBRA; provided, however, if the Company determines that it cannot pay such amounts to the group health plan provider or the COBRA provider (if applicable) without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), then the Company shall convert such payments to payroll payments directly to the Executive for the time period specified above.  Such payments shall be subject to tax-related deductions and withholdings and paid on the Company’s regular payroll dates.

 

The amounts payable under Section 7(a), to the extent taxable, shall be paid out in substantially equal installments in accordance with the Company’s payroll practice over 9 months commencing within 60 days after the Date of Termination; provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar year, the Severance Amount, to the extent it qualifies as “non-qualified deferred compensation” within the meaning of Section 409A of the Code, shall begin to be paid in the second calendar year by the last day of such 60-day period; provided, further, that the initial payment shall include a catch-up payment to cover amounts retroactive to the day immediately following the Date of Termination.  Each payment pursuant to this Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2).

 

(b)                                 Severance Pay and Benefits upon Termination by the Company without Cause or by the Executive for Good Reason within the Change in Control Period.  The provisions of this Section 7(b) shall apply in lieu of, and expressly supersede, the provisions of Section 7(a) if the Company terminates the Executive’s employment without Cause as provided in Section 6(c) or if the Executive terminates his employment for Good Reason as provided in Section 6(d), in either case within the Change in Control Period.  These provisions shall terminate and be of no further force or effect after the Change in Control Period.  During the Term, if during the Change in Control Period the Executive’s employment is terminated by the Company without Cause as provided in Section 6(c) or the Executive terminates employment for Good Reason as provided in Section 6(d), then, subject to the signing of the Separation Agreement and Release by the Executive and the Separation Agreement and Release becoming fully effective, all within the time frame set forth in the Separation Agreement and Release but in no event more than 60 days after the Date of Termination:

 

(i)                                     The Company shall pay the Executive a lump sum in cash in an amount equal to the sum of (A) 12 months of the Executive’s then current Base Salary

 

6

 

(or the Executive’s Base Salary in effect immediately prior to the Change in Control, if higher) plus (B) one times the Executive’s Target Bonus for the then-current year (the “Change in Control Payment”);

 

(ii)                                  notwithstanding anything to the contrary in any applicable option agreement or other stock-based award agreement, all time-based stock options and other stock-based awards subject to time-based vesting held by the Executive (the “Time-Based Equity Awards”) shall immediately accelerate and become fully exercisable or nonforfeitable as of the later of (i) the Date of Termination or (ii) the Effective Date of the Separation Agreement and Release (the “Accelerated Vesting Date”); provided that any termination or forfeiture of the unvested portion of such Time-Based Equity Awards that would otherwise occur on the Date of Termination in the absence of this Agreement will be delayed until the Effective Date of the Separation Agreement and Release and will only occur if the vesting pursuant to this subsection does not occur due to the absence of the Separation Agreement and Release becoming fully effective within the time period set forth therein.  Notwithstanding the foregoing, no additional vesting of the Time-Based Equity Awards shall occur during the period between the Executive’s Date of Termination and the Accelerated Vesting Date; and

 

(iii)                               subject to the Executive’s copayment of premium amounts at the applicable active employees’ rate and the Executive’s proper election to receive benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company shall pay to the group health plan provider, the COBRA provider or the Executive a monthly payment equal to the monthly employer contribution that the Company would have made to provide health insurance to the Executive if the Executive had remained employed by the Company until the earliest of (A) the 18 month anniversary of the Date of Termination; (B) the Executive’s eligibility for group medical plan benefits under any other employer’s group medical plan; or (C) the cessation of the Executive’s continuation rights under COBRA; provided, however, if the Company determines that it cannot pay such amounts to the group health plan provider or the COBRA provider (if applicable) without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), then the Company shall convert such payments to payroll payments directly to the Executive for the time period specified above.  Such payments shall be subject to tax-related deductions and withholdings and paid on the Company’s regular payroll dates.

 

The amounts payable under this Section 7(b), to the extent taxable, shall be paid or commence to be paid within 60 days after the Date of Termination; provided, however, that if the 60-day period begins in one calendar year and ends in a second calendar year, such payments to the extent they qualify as “non-qualified deferred compensation” within the meaning of Section 409A of the Code, shall be paid or commence to be paid in the second calendar year by the last day of such 60-day period.

 

8.                                GENERAL.

 

(a)                                 Other Limitations.  Anything in this Agreement to the contrary notwithstanding, in the event that the amount of any compensation, payment or distribution by the Company to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, calculated in a manner consistent with Section 280G of the Code and the applicable regulations thereunder (the “Aggregate Payments”), would be

 

7

 

subject to the excise tax imposed by Section 4999 of the Code, then the Aggregate Payments shall be reduced (but not below zero) so that the sum of all of the Aggregate Payments shall be $1.00 less than the amount at which the Executive becomes subject to the excise tax imposed by Section 4999 of the Code; provided that such reduction shall only occur if it would result in the Executive receiving a higher After Tax Amount (as defined below) than the Executive would receive if the Aggregate Payments were not subject to such reduction.  In such event, the Aggregate Payments shall be reduced in the following order, in each case, in reverse chronological order beginning with the Aggregate Payments that are to be paid the furthest in time from consummation of the transaction that is subject to Section 280G of the Code: (i) cash payments not subject to Section 409A of the Code; (ii) cash payments subject to Section 409A of the Code; (iii) equity-based payments and acceleration; and (iv) non-cash forms of benefits; provided that in the case of all the foregoing Aggregate Payments all amounts or payments that are not subject to calculation under Treas. Reg. § 1.280G-1, Q&A-24(b) or (c) shall be reduced before any amounts that are subject to calculation under Treasury Regulation §1.280G-1, Q&A-24(b) or (c).  For purposes of this Section 8(a), the “After Tax Amount” means the amount of the Aggregate Payments less all federal, state, and local income, excise and employment taxes imposed on the Executive as a result of the Executive’s receipt of the Aggregate Payments.  For purposes of determining the After Tax Amount, the Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year in which the determination is to be made, and state and local income taxes at the highest marginal rates of individual taxation in each applicable state and locality, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes.  The determination as to whether a reduction in the Aggregate Payments shall be made pursuant to this Section 8(a) shall be made by a nationally recognized accounting firm selected by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and the Executive within fifteen (15) business days of the employment termination date, if applicable, or at such earlier time as is reasonably requested by the Company or the Executive.  Any determination by the Accounting Firm shall be binding upon the Company and the Executive.

 

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

 

“Change in Control” shall mean a “Sale Event” as defined in the Plan, but only to the extent such Sale Event is also a “change in control event” within the meaning of Section 409A of the Code and the regulations promulgated thereunder.

 

“Change in Control Period” shall mean the 12 month period immediately following the occurrence of the first event constituting a Change in Control.

 

“Date of Termination” shall mean (i) if the Executive’s employment is terminated by death, the date of death; (ii) if the Executive’s employment is terminated on account of disability under Section 6(a) or by the Company for Cause under Section 6(b), the date on which Notice of Termination is given; (iii) if the Executive’s employment is terminated by the Company under Section 6(c) without Cause, the date on which a Notice of Termination is given or the date otherwise specified by the Company in the Notice of Termination; (iv) if the Executive’s employment is terminated by the Executive under Section 6(d) for Good Reason, the date on which a Notice of Termination is given after the end of the Cure Period, and (v) if the Executive’s employment is terminated by the Executive under Section 6(e) other than for Good

 

8

 

Reason, 30 days after the date on which a Notice of Termination is given.  Notwithstanding the foregoing, in the event that the Executive gives a Notice of Termination to the Company, the Company may unilaterally accelerate the Date of Termination and such acceleration shall not result in a termination by the Company for purposes of this Agreement.

 

“Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon.  Except for termination due to the Executive’s death, any termination of the Executive’s employment by the Company or any such termination by the Executive shall be communicated by written Notice of Termination to the other party hereto.

 

(c)                                  Captions.  The captions of sections or subsections of this Agreement are for reference only and shall not affect the interpretation or construction of this Agreement.

 

(d)                                 Notices.  All notices and other communications hereunder shall be in writing, and shall be deemed to have been duly given if delivered personally or if mailed by certified mail, return receipt requested, postage prepaid or sent by telecopy, electronic (PDF) transmission, or recognized delivery service, to the relevant address set forth below, or to such other address as the recipient of such notice or communication shall have specified to the other party hereto by notice given in accordance with this Section 8(d):

 

If to the Company, to:

 

Akero Therapeutics, Inc.

Attention: Chief Executive Officer

170 Harbor Way, 3rd Floor

South San Francisco, CA 94080

 

If to the Executive, to:

 

William White

At the address on file with the Company

 

(e)                                  Restrictive Covenants Agreement.  The terms of the Confidentiality, Assignment and Non-Solicitation Agreement dated April 5, 2019 (the “Restrictive Covenants Agreement”) shall continue to be in full force and effect, the terms and conditions of which are incorporated herein by reference.

 

(f)                                   Withholding; Tax Effect.  All payments made by the Company to the Executive under this Agreement shall be net of any tax or other amounts required to be withheld by the Company under applicable law.  Nothing in this Agreement shall be construed to require the Company to make any payments to compensate the Executive for any adverse tax effect associated with any payments or benefits or for any deduction or withholding from any payment or benefit.

 

(g)                                  Severability.  If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect under any law, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired, and the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions

 

9

 

contemplated hereby are fulfilled to the greatest extent possible.

 

(h)                                 Waivers.  No delay or omission by either party hereto in exercising any right, power or privilege hereunder shall impair such right, power or privilege, nor shall any single or partial exercise of any such right, power or privilege preclude any further exercise thereof or the exercise of any other right, power or privilege.

 

(i)                                     Counterparts.  This Agreement may be executed in multiple counterparts, including by electronic (PDF) transmission, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

(j)                                    Assigns.  This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company.  The Company may only assign this Agreement to any successor (whether through a sale or merger of stock or assets or otherwise), parent, subsidiary or affiliated entity of the Company, or in connection with any other form of reorganization of the Company; provided that if the Executive remains employed or becomes employed by the Company, the purchaser or any of their affiliates in connection with any such transaction, then the Executive shall not be entitled to any payments, benefits or vesting pursuant to Section 7(a) or 7(b) of this Agreement.  Executive shall not have the right to assign Executive’s duties under this Agreement.

 

(k)                                 Entire Agreement.  Except with respect to the Equity Documents, this Agreement (together with the Restrictive Covenants Agreement, which is incorporated by reference herein) contains the entire understanding of the parties, supersedes all prior agreements and understandings relating to the subject matter hereof, including without limitation the Prior Agreement, and may not be amended except by a written instrument hereafter signed by each of the parties hereto.

 

(l)                                     Governing Law.  This Agreement and the performance hereof shall be construed and governed in accordance with the laws of the State of California, without regard to the conflict of laws provisions thereof, and the parties hereto submit to the non-exclusive jurisdiction of the state and federal courts having subject matter jurisdiction within the State of California.

 

(m)                             Contract Construction.  Where the context of this Agreement so requires, use of masculine gender pronouns shall be deemed to mean or include the feminine or neuter gender, and vice versa, and use of the word “person” shall be deemed to mean or include individual persons, entities, trusts and governmental bodies and agencies, and vice versa.  Definitions in this Agreement apply equally to both the singular and the plural forms of the defined terms.  It is the intent of the parties that this Agreement shall not be construed for or against any party by reason of the authorship or alleged authorship of any provisions hereof or by reason of the status of the respective parties.

 

[Remainder of Page Intentionally Left Blank]

 

10

 

IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties hereto have caused this Agreement to be duly executed as of the Effective Date.

 

	
 
    	
AKERO   THERAPEUTICS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name: 
    	
Andrew Cheng
    
	
 
    	
Title: 
    	
President and   Chief Executive Officer
    
	
 
    	
 
    
	
EXECUTIVE:
    	
 
    
	
 
    	
 
    
	
Signature:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name: William   White
    	
 
    

 

 

EXHIBIT A

FORM OF RELEASEBlueprint

 

Exhibit 10.1

 

 

 

 

SUPERPRIORITY SECURED DEBTOR-IN-POSSESSION CREDIT AND GUARANTY
AGREEMENT

 

dated as of June 7, 2019,

 

among

 

FUSION CONNECT, INC.,

a Debtor and Debtor-in-Possession under Chapter 11 of the
Bankruptcy Code,

as Borrower,

 

CERTAIN SUBSIDIARIES OF FUSION CONNECT, INC.,

each, a Debtor and Debtor-in-Possession under Chapter 11 of the
Bankruptcy Code,

 

as Guarantor Subsidiaries,

 

THE LENDERS PARTY HERETO

 

and

 

WILMINGTON TRUST, NATIONAL ASSOCIATION,

as Administrative Agent and Collateral Agent

 

________________________________________________________

 

$59,500,000 Superpriority Secured Debtor-in-Possession Term Credit
Facility

________________________________________________________

 

 

 

 

 

 

 

TABLE OF CONTENTS

Page

 

	

SECTION 1.

	

DEFINITIONS AND INTERPRETATION

	

1

	

1.1

	

Definitions

	

1

	

1.2

	

Accounting Terms

	

36

	

1.3

	

Interpretation, Etc.

	

36

	

1.4

	

Classification of Loans and Borrowings

	

36

	
 

	
 

	
 

	

SECTION 2.

	

LOANS

	

37

	

2.1

	

Loans

	

37

	

2.2

	

[Reserved]

	

38

	

2.3

	

[Reserved]

	

38

	

2.4

	

Pro Rata Shares; Obligations Several; Availability of
Funds

	

38

	

2.5

	

Use of Proceeds

	

39

	

2.6

	

Evidence of Debt; Register; Notes

	

39

	

2.7

	

Interest on Loans

	

40

	

2.8

	

Conversion/Continuation

	

41

	

2.9

	

Default Interest

	

41

	

2.10

	

Fees

	

42

	

2.11

	

Repayment

	

42

	

2.12

	

Voluntary Prepayments

	

43

	

2.13

	

Mandatory Prepayments

	

43

	

2.14

	

Application of Prepayments

	

45

	

2.15

	

General Provisions Regarding Payments

	

45

	

2.16

	

Ratable Sharing

	

46

	

2.17

	

Making or Maintaining Eurodollar Rate Loans

	

47

	

2.18

	

Increased Costs; Capital Adequacy and Liquidity

	

49

	

2.19

	

Taxes; Withholding, Etc.

	

50

	

2.20

	

Obligation to Mitigate

	

54

	

2.21

	

Defaulting Lenders

	

54

	

2.22

	

Replacement of Lenders

	

55

	

2.23

	

Withdrawal of Funds from the DIP Term Funding Account

	

55

	
 

	
 

	
 

	

SECTION 3.

	

CONDITIONS PRECEDENT

	

56

	

3.1

	

Closing Date

	

56

	

3.2

	

Delayed Draw Borrowing

	

59

	

3.3

	

Each Credit Extension

	

60

	
 

	
 

	
 

	

SECTION 4.

	

REPRESENTATIONS AND WARRANTIES

	

61

	

4.1

	

Organization; Requisite Power and Authority;
Qualification

	

61

	

4.2

	

Equity Interests and Ownership

	

61

	

4.3

	

Due Authorization

	

61

	

4.4

	

No Conflict

	

62

	

4.5

	

Governmental Approvals

	

62

	

4.6

	

Binding Obligation

	

62

	

4.7

	

Historical Financial Statements

	

62

	

4.8

	

No Material Adverse Effect

	

62

	

4.9

	

Adverse Proceedings

	

63

	

4.10

	

Payment of Taxes

	

63

 

 

 

 

	

4.11

	

Properties

	

63

	

4.12

	

Environmental Matters

	

64

	

4.13

	

No Defaults

	

64

	

4.14

	

Investment Company Act

	

64

	

4.15

	

Federal Reserve Regulations

	

64

	

4.16

	

Employee Benefit Plans

	

65

	

4.17

	

[Reserved]

	

65

	

4.18

	

Compliance with Laws

	

65

	

4.19

	

Disclosure

	

65

	

4.20

	

Collateral Matters

	

65

	

4.21

	

Sanctioned Persons; Anti-Corruption Laws; PATRIOT Act

	

66

	

4.22

	

Communications Regulatory Matters

	

67

	

4.23

	

Cases; Orders

	

68

	
 

	
 

	
 

	

SECTION 5.

	

AFFIRMATIVE COVENANTS

	

68

	

5.1

	

Financial Statements and Other Reports

	

68

	

5.2

	

Existence, Licenses, Etc.

	

72

	

5.3

	

Payment of Taxes

	

72

	

5.4

	

Maintenance of Properties

	

72

	

5.5

	

Insurance

	

73

	

5.6

	

Books and Records; Inspections

	

73

	

5.7

	

Weekly Conference Calls

	

74

	

5.8

	

Compliance with Laws

	

74

	

5.9

	

Environmental Matters

	

74

	

5.10

	

Subsidiaries

	

74

	

5.11

	

Additional Collateral

	

75

	

5.12

	

Further Assurances

	

75

	

5.13

	

Maintenance of Ratings

	

75

	

5.14

	

Use of Proceeds

	

75

	

5.15

	

Post-Closing Matters

	

76

	

5.16

	

Priority of Liens

	

76

	

5.17

	

[Reserved]

	

77

	

5.18

	

Bankruptcy Related Matters

	

77

	
 

	
 

	
 

	

SECTION 6.

	

NEGATIVE COVENANTS

	

78

	

6.1

	

Indebtedness

	

78

	

6.2

	

Liens

	

80

	

6.3

	

No Further Negative Pledges

	

82

	

6.4

	

Restricted Payments

	

82

	

6.5

	

Restrictions on Subsidiary Distributions

	

82

	

6.6

	

Investments

	

83

	

6.7

	

Financial Covenants

	

84

	

6.8

	

Fundamental Changes; Disposition of Assets; Equity Interests of
Subsidiaries

	

85

	

6.9

	

Sales and Leasebacks

	

87

	

6.10

	

Transactions with Affiliates

	

87

	

6.11

	

Conduct of Business

	

87

	

6.12

	

Hedge Agreements

	

87

	

6.13

	

Amendments or Waivers of Organizational Documents and Certain
Agreements

	

88

	

6.14

	

Fiscal Year

	

88

	

6.15

	

Additional Matters

	

88

	

6.16

	

Payments to Lingo

	

89

 

 

 

 

	
 

	
 

	
 

	

SECTION 7.

	

GUARANTEE

	

89

	

7.1

	

Guarantee of the Obligations

	

89

	

7.2

	

Indemnity by the Borrower; Contribution by the
Guarantors

	

89

	

7.3

	

Liability of Guarantors Absolute

	

90

	

7.4

	

Waivers by the Guarantors

	

92

	

7.5

	

Guarantors’ Rights of Subrogation, Contribution,
Etc.

	

92

	

7.6

	

Continuing Guarantee

	

92

	

7.7

	

Authority of the Guarantors or the Borrower

	

93

	

7.8

	

Financial Condition of the Credit Parties

	

93

	

7.9

	

Bankruptcy, Etc.

	

93

	
 

	
 

	
 

	

SECTION 8.

	

EVENTS OF DEFAULT

	

94

	

8.1

	

Events of Default

	

94

	
 

	
 

	
 

	

SECTION 9.

	

AGENTS

	

101

	

9.1

	

Appointment of Agents

	

101

	

9.2

	

Powers and Duties

	

102

	

9.3

	

General Immunity

	

102

	

9.4

	

Acts in Individual Capacity

	

104

	

9.5

	

Lenders’ Representations, Warranties and
Acknowledgments

	

104

	

9.6

	

Right to Indemnity

	

105

	

9.7

	

Successor Administrative Agent and Collateral Agent

	

106

	

9.8

	

Collateral Documents and Obligations Guarantee

	

107

	

9.9

	

Withholding Taxes

	

109

	

9.10

	

Administrative Agent May File Bankruptcy Disclosure and Proofs of
Claim

	

110

	

9.11

	

Certain ERISA Matters

	

110

	
 

	
 

	
 

	

SECTION 10.

	

MISCELLANEOUS

	

112

	

10.1

	

Notices

	

112

	

10.2

	

Expenses

	

114

	

10.3

	

Indemnity

	

114

	

10.4

	

Set-Off

	

115

	

10.5

	

Amendments and Waivers

	

115

	

10.6

	

Successors and Assigns; Participations

	

118

	

10.7

	

Independence of Covenants

	

122

	

10.8

	

Survival of Representations, Warranties and Agreements

	

122

	

10.9

	

No Waiver; Remedies Cumulative

	

123

	

10.10

	

Marshalling; Payments Set Aside

	

123

	

10.11

	

Severability

	

123

	

10.12

	

Independent Nature of Lenders’ Rights

	

123

	

10.13

	

Headings

	

123

	

10.14

	

APPLICABLE LAW

	

123

	

10.15

	

CONSENT TO JURISDICTION

	

124

	

10.16

	

WAIVER OF JURY TRIAL

	

124

	

10.17

	

Confidentiality

	

125

	

10.18

	

Usury Savings Clause

	

126

	

10.19

	

Counterparts

	

126

	

10.20

	

Effectiveness; Entire Agreement

	

126

	

10.21

	

PATRIOT Act

	

126

	

10.22

	

Electronic Execution of Assignments

	

126

	

10.23

	

No Fiduciary Duty

	

127

	

10.24

	

[Reserved]

	

127

	

10.25

	

Acknowledgement and Consent to Bail-In of EEA Financial
Institutions

	

127

 

 

 

 

 

 

 

 

	

SCHEDULES:

	

2.1

	

Commitments

	
 

	

4.1

	

Organization;
Requisite Power and Authority; Qualification

	
 

	

4.2

	

Equity
Interests and Ownership

	
 

	

4.9

	

Adverse
Proceedings

	
 

	

4.10

	

Payment
of Taxes

	
 

	

4.11(b)

	

Real
Estate

	
 

	

4.18

	

Compliance
with Laws

	
 

	

4.22

	

Regulatory
Matters

	
 

	

6.1

	

Indebtedness

	
 

	

6.2

	

Liens

	
 

	

6.3

	

Negative
Pledges

	
 

	

6.5

	

Restrictions
on Subsidiary Distributions

	
 

	

6.6

	

Investments

	
 

	

6.10

	

Affiliate
Transactions

	
 

	

10.1

	

Notices

 

 

	

EXHIBITS:

	

A

	

Assignment
Agreement

	
 

	

B

	

Closing
Date Certificate

	
 

	

C

	

Compliance
Certificate

	
 

	

D

	

Conversion/Continuation
Notice

	
 

	

E

	

Counterpart
Agreement

	
 

	

F

	

Funding
Notice

	
 

	

G

	

Intercompany
Indebtedness Subordination Agreement

	
 

	

H

	

Intercompany
Note

	
 

	

I

	

DIP
Term Funding Withdrawal Notice

	
 

	

J

	

Pledge
and Security Agreement

	
 

	

K

	

Interim
Order

	
 

	

L

	

Critical
Vendor Report

	
 

	

M

	

Form of
Note

	
 

	

N-1

	

Form of
US Tax Certificate For Foreign Lenders That Are Not Partnerships
For US Federal Income Tax Purposes

	
 

	

N-2

	

Form of
US Tax Certificate For Foreign Participants That Are Not
Partnerships For US Federal Income Tax Purposes

	
 

	

N-3

	

Form of
US Tax Certificate For Foreign Participants That Are Partnerships
For US Federal Income Tax Purposes

	
 

	

N-4

	

Form of
US Tax Certificate For Foreign Lenders That Are Partnerships For US
Federal Income Tax Purposes

 

 

 

 

 

SUPERPRIORITY
SECURED DEBTOR-IN-POSSESSION CREDIT AND GUARANTY AGREEMENT
dated as of June 7, 2019, among FUSION CONNECT, INC., a Delaware
corporation and a debtor and debtor-in-possession under Chapter 11
of the Bankruptcy Code (the “Borrower”), CERTAIN SUBSIDIARIES OF THE BORROWER
party hereto, each, a debtor and debtor-in-possession under Chapter
11 of the Bankruptcy Code, as Guarantor Subsidiaries, the
LENDERS party hereto and
WILMINGTON TRUST, NATIONAL
ASSOCIATION (“Wilmington Trust”), as Administrative Agent
and Collateral Agent.

 

On June
3, 2019 (the “Petition
Date”), the Borrower and the Guarantor Subsidiaries
(each a “Debtor”
and collectively, the “Debtors”) filed voluntary
petitions with the Bankruptcy Court commencing their respective
cases that are pending under Chapter 11 of the Bankruptcy Code
(each case of the Borrower and each other Debtor, a
“Case” and
collectively, the “Cases”) and have continued in the
possession of their assets and management of their business
pursuant to Section 1107(a) and 1108 of the Bankruptcy
Code.

 

The
Borrower has requested that the Lenders extend credit to the
Borrower in the form of new-money loans in an aggregate principal
amount of up to $39,500,000 and in the form of roll-up loans in an
aggregate principal amount equal to the principal amount of the
loans outstanding under the Super Senior Secured Credit Agreement
on the Final Order Entry Date pursuant to this Agreement
(collectively, the “DIP Term
Facility”), with all of the Borrower’s
obligations under the DIP Term Facility to be guaranteed by each
Guarantor Subsidiary.

 

The
priority of the DIP Term Facility with respect to the Collateral
granted to secure the Obligations shall be as set forth in the
Interim Order and the Final Order, as applicable, in each case upon
entry thereof by the Bankruptcy Court.

 

The
Borrower and the Guarantor Subsidiaries are engaged in related
businesses, and each Guarantor Subsidiary will derive substantial
direct and indirect benefit from the making of the extensions of
credit under this Agreement.

 

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

 

SECTION
1.                                DEFINITIONS
AND INTERPRETATION

 

1.1           Definitions. As
used in this Agreement (including the recitals hereto), the
following terms have the meanings specified below:

 

“Acceptable Confirmation Order”
means an order of the Bankruptcy Court confirming an Acceptable
Plan of Reorganization, in form and substance satisfactory to the
Requisite Lenders in their sole discretion (as the same may be
amended, supplemented, or modified from time to time after entry
thereof with the consent of the Requisite Lenders in their sole
discretion).

 

“Acceptable Disclosure Statement”
means the disclosure statement relating to the Acceptable Plan of
Reorganization, in form and substance satisfactory to the Requisite
Lenders in their reasonable discretion (as the same may be amended,
supplemented, or modified from time to time after the initial
filing thereof with the consent of the Requisite Lenders in their
reasonable discretion).

 

“Acceptable Disclosure Statement Approval
Order” means an order of the Bankruptcy Court
approving the Acceptable Disclosure Statement, in form and
substance satisfactory to the Requisite Lenders in their reasonable
discretion (as the same may be amended, supplemented, or modified
from time to time after entry thereof so long as such amendment,
supplement, or modification is satisfactory to the Requisite
Lenders in their reasonable discretion).

 

 

 

1

 

 

“Acceptable Plan of Reorganization”
means a plan of reorganization for each of the Cases, in form and
substance consistent in all material respects with the
Restructuring Support Agreement and satisfactory to the Requisite
Lenders in their reasonable discretion, that, among other things,
(i) provides for the termination of the Commitments and the
indefeasible payment in full in Cash and full discharge of the
Obligations (other than contingent indemnification obligations not
yet due) upon the consummation date with respect to such plan of
reorganization and (ii) provides for releases for the
Administrative Agent, the Collateral Agent, the Lenders and the
agents and lenders under the Existing First Lien Credit Agreement
and their respective Related Parties (as the same may be amended,
supplemented, or modified from time to time with the consent of the
Requisite Lenders in their reasonable discretion).

 

“Acquisition” means the purchase or
other acquisition (in one transaction or a series of transactions,
including pursuant to any merger or consolidation) of all or
substantially all the issued and outstanding Equity Interests in,
or all or substantially all the assets of (or all or substantially
all the assets constituting a business unit, division, product line
or line of business of), any Person.

 

“Ad Hoc Group of Term Lenders” mean
those certain lenders under the Existing First Lien Credit
Agreement represented by Davis Polk and Greenhill as of the Closing
Date.

 

“Additional OID” as defined in Section
2.10(a).

 

“Adjusted Eurodollar Rate” means,
for any Interest Period for a Eurodollar Rate Loan, the rate per
annum obtained by dividing (a) the rate per annum (rounded to
the nearest 1/100th of 1%) determined by the Administrative Agent
by reference to the ICE Benchmark Administration London Interbank
Offered Rate for deposits in Dollars (as set forth on the
applicable Bloomberg screen page or such other commercially
available source providing such quotations as may be designated by
the Administrative Agent from time to time) for deposits (for
delivery on the first day of such Interest Period) with a term
equivalent to such Interest Period in Dollars, determined as of
approximately 11:00 a.m. (London time) on the Interest Rate
Determination Date for such Interest Period, by (b) an amount
equal to one minus the Applicable Reserve Requirement; provided that, notwithstanding
the foregoing, the Adjusted Eurodollar Rate shall at no time be
less than 1.00% per annum.

 

“Administrative Agent” means
Wilmington Trust, in its capacity as administrative agent for the
Lenders hereunder and under the other Credit Documents, and its
successors in such capacity as provided in Section 9.

 

“Administrative Agent Fee Letter”
means the Fee Letter, dated as of the Closing Date, between the
Administrative Agent, the Collateral Agent and the
Borrower.

 

“Administrative Questionnaire”
means an Administrative Questionnaire in a form supplied by the
Administrative Agent or another form reasonably acceptable to the
Administrative Agent.

 

“Adverse Proceeding” means any
action, suit, proceeding, hearing or investigation, in each case
whether administrative, judicial or otherwise, by or before any
Governmental Authority or any arbitrator, that is pending or, to
the knowledge of the Borrower or any Subsidiary, threatened in
writing against or affecting the Borrower or any Subsidiary or any
property of the Borrower or any Subsidiary.

 

“Affected Lender” as defined in
Section 2.17(b).

 

 

 

2

 

 

 

 

“Affected Loans” as defined in
Section 2.17(b).

 

“Affiliate” means, with respect to
any Person, any other Person directly or indirectly Controlling,
Controlled by or under common Control with the Person specified;
provided that for
purposes of Section 6.10, the term “Affiliate”
also means any Person that directly or indirectly beneficially owns
Equity Interests in the Person specified representing 10% or more
of the aggregate ordinary voting power or the aggregate equity
value represented by the issued and outstanding Equity Interests in
the Person specified and any Person that would be an Affiliate of
any such beneficial owner pursuant to this definition (but without
giving effect to this proviso).

 

“After-Acquired Intellectual
Property” as defined in Section 4.20(c).

 

“Agent” means each of (a) the
Administrative Agent, (b) the Collateral Agent, and (c) any other
Person appointed under the Credit Documents to serve in an agent or
similar capacity.

 

“Aggregate Amounts Due” as defined
in Section 2.16.

 

“Agreement” means this
Superpriority Secured Debtor-In-Possession Credit and Guaranty
Agreement dated as of June [___], 2019.

 

“Anti-Corruption Laws” as defined in
Section 4.21.

 

“Applicable Rate” means, on any
day, (x) with respect to any Roll-Up
Loans, (i) 9.00% per annum, in the case of a Base Rate
Loan, and (ii) 10.00% per annum, in the case of a Eurodollar Rate
Loan and (y) with respect to New-Money Loans, (i) 9.00% per
annum, in the case of a Base Rate Loan, and (ii) 10.00% per annum,
in the case of a Eurodollar Rate Loan.

 

“Applicable Reserve Requirement”
means, at any time, for any Eurodollar Rate Loan, the maximum rate,
expressed as a decimal, at which reserves (including any basic,
marginal, special, supplemental, emergency or other reserves) are
required to be maintained by member banks of the United States
Federal Reserve System against “Eurocurrency
liabilities” (as such term is defined in Regulation D) under
regulations issued from time to time by the Board of Governors or
other applicable banking regulator. Without limiting the effect of
the foregoing, the Applicable Reserve Requirement shall reflect any
other reserves required to be maintained by such member banks with
respect to (a) any category of liabilities that includes deposits
by reference to which the applicable Adjusted Eurodollar Rate or
any other interest rate for a Loan is to be determined or (b) any
category of extensions of credit or other assets that includes
Eurodollar Rate Loans. A Eurodollar Rate Loan shall be deemed to
constitute Eurocurrency liabilities and as such shall be deemed
subject to reserve requirements without the benefit of credits for
proration, exceptions or offsets that may be available from time to
time to the applicable Lender. The rate of interest on Eurodollar
Rate Loans shall be adjusted automatically on and as of the
effective date of any change in the Applicable Reserve
Requirement.

 

“Approved Budget” means the Initial
DIP Budget or then most current DIP Budget prepared by the Borrower
and approved by the Requisite Lenders pursuant to Section
‎5.1(o), as applicable.

 

“Approved Electronic
Communications” means any notice, demand,
communication, information, document or other material that any
Credit Party, or its counsel or advisors, provides to any Agent
that is distributed to any Agent or any Lender by means of
electronic communications pursuant to Section 10.1(b).

 

 

 

3

 

 

 

 

“Asset Sale” means any Disposition
of assets (other than Dispositions made in reliance on Section
6.8(b)(i), (ii), (iii), (iv) or (vi)) other than any such
Disposition (or series of related Dispositions) which, together
with any prior Dispositions, does not result in aggregate Net
Proceeds not exceeding $500,000 during the term of this
Agreement.

 

“Assignment Agreement” means an
Assignment and Assumption Agreement substantially in the form of
Exhibit A, with such amendments or modifications thereto as
may be approved by the Administrative Agent.

 

“Assignment Effective
Date” as
defined in Section 10.6(b).

 

“Authorized Officer” means, with
respect to any Person, any individual holding the position of chief
executive officer, president, chief operating officer, chief
financial officer, principal accounting officer, treasurer,
secretary, assistant secretary, executive vice president or senior
vice president of such Person; provided that, when such term
is used in reference to any document executed by, or a
certification of, an Authorized Officer, the secretary or assistant
secretary of such Person shall have delivered an incumbency
certificate to the Administrative Agent as to the authority of such
individual.

 

“Avoidance Action” means the
Debtors’ claims and causes of action under sections 502(d),
544, 545, 547, 548 and 550 of the Bankruptcy Code.

 

“Avoidance Proceeds” means any
proceeds or property recovered, unencumbered or otherwise in
connection with successful Avoidance Actions, whether by judgment,
settlement or otherwise.

 

“Backstop Fee” as defined in
Section 2.10(a).

 

“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.

 

“Bankruptcy Code” means
Title 11 of the United States Code entitled
“Bankruptcy”.

 

“Bankruptcy  Court” means the
United States Bankruptcy Court for the Southern District of New
York, or any appellate court having jurisdiction over the Cases
from time to time.

 

“Bankruptcy Rules” means the
Federal Rules of Bankruptcy Procedure, as the same may from time to
time be in effect and applicable to the Cases.

 

“Base Rate” means, for any day, the
rate per annum equal to the greatest of (a) the Prime Rate in
effect on such day, (b) the Federal Funds Effective Rate in effect
on such day plus 1⁄2 of 1% per annum and (c) the Adjusted
Eurodollar Rate that would be applicable to a Eurodollar Rate Loan
with an Interest Period of one month commencing on such day plus
1%; provided that, notwithstanding the foregoing, the Base Rate
shall at no time be less than 2.00% per annum. Any change in the
Base Rate due to a change in the Prime Rate, the Federal Funds
Effective Rate or the Adjusted Eurodollar Rate shall be effective
on the effective day of such change in the Prime Rate, the Federal
Funds Effective Rate or the Adjusted Eurodollar Rate, as the case
may be.

 

 

 

4

 

 

 

 

“Base Rate Borrowing” means a
Borrowing comprised of Base Rate Loans.

 

“Base Rate Loan” means a Loan
bearing interest at a rate determined by reference to the Base
Rate.

 

“Benefit Plan” means any of (a) an
“employee benefit plan” (as defined in ERISA) that is
subject to Title I of ERISA, (b) a “plan” as defined in
and subject to Section 4975 of the Code or (c) any Person whose
assets include (for purposes of ERISA Section 3(42) or otherwise
for purposes of Title I of ERISA or Section 4975 of the Code) the
assets of any such “employee benefit plan” or
“plan”.

 

“Board of Governors” means the
Board of Governors of the United States Federal Reserve
System.

 

“Borrower” as defined in the
preamble hereto.

 

“Borrowing” means Loans of the same Type made,
converted or continued on the same date and, in the case of
Eurodollar Rate Loans, as to which a single Interest Period is in
effect.

 

“Budget Test Period” means, as of
any date of determination, (a) at any time prior to the approval of
a DIP Budget pursuant to Section 5.1(o), the period beginning with
the Closing Date through the most recent Sunday prior to the
delivery of the applicable Budget Variance Report (Compliance) and
(b) one week after the delivery of an Approved Budget pursuant to
Section 5.1(o), the period beginning with the first date covered by
the most recently delivered DIP Budget that has become the Approved
Budget through the most recent Sunday prior to the delivery of the
applicable Budget Variance Report (Compliance).

 

“Budget Variance Report
(Compliance)” means a variance report, in a form
reasonably satisfactory to the Requisite Lenders or their advisors,
setting forth (a) for the then applicable Budget Test Period (and,
for informational purposes, the most recently ended week), (x) the
cumulative (and, for informational purposes, weekly) variance
(positive or negative) on a weekly basis of the aggregate receipts
(as compared to the Approved Budget covering such period) of the
Debtors, (y) the cumulative (and, for informational purposes,
weekly) variance (positive or negative) on a weekly basis (as
compared to the Approved Budget covering such period) of the
aggregate operating disbursements (excluding professional fees and
expenses and adequate protection payments) made by the Debtors, and
(b) an explanation, in reasonable detail, of any material variance
and a distinction between permanent and timing-related variances,
certified by the chief financial officer of the
Borrower.

 

“Budget Variance Report (Initial)”
means a variance report, in a form reasonably satisfactory to the
Requisite Lenders or their advisors, setting forth (a) for the
period beginning with the Closing Date through the most recent
Sunday prior to the delivery of the Budget Variance Report
(Initial) (and, for informational purposes only, the most recently
ended week), (x) the cumulative (and, for informational purposes,
weekly) variance (positive or negative) of the aggregate receipts
(as compared to the Initial DIP Budget covering such period,
without giving effect to any updates thereto pursuant to Section
5.1(o)) of the Debtors, (y) the cumulative (and, for informational
purposes, weekly) variance (positive or negative) as compared to
the Initial DIP Budget covering such period, without giving effect
to any updates thereto pursuant to Section 5.1(o)) of the aggregate
operating disbursements (excluding professional fees and expenses
and adequate protection payments) made by the Debtors, and (b) an
explanation, in reasonable detail, of any material variance and a
distinction between permanent and timing-related variances,
certified by the chief financial officer of the
Borrower.

 

 

 

5

 

 

 

 

“Business Day” means any day other
than a Saturday or Sunday, a day that is a legal holiday under the
laws of the State of New York or a day on which banking
institutions located in such State are authorized or required by
law to remain closed; provided that, with respect to
all notices, determinations, fundings and payments in connection
with the Adjusted Eurodollar Rate or any Eurodollar Rate Loan, such
day is also a day for trading by and between banks in Dollar
deposits in the London interbank market.

 

“Canadian Bankruptcy Court” means
The Ontario Superior Court of Justice (Commercial List) or any
other Canadian court having jurisdiction in respect of the Canadian
Subsidiaries.

 

“Canadian Subsidiaries” means
collectively, Primus Management ULC, a British Columbia unlimited
liability company, and Bircan Management ULC, a British Columbia
unlimited liability company and any other Subsidiary of the
Borrower organized under the laws of Canada or any province or
political division thereof.

 

“Capital Lease Obligations” of any
Person means the obligations of such Person to pay rent or other
amounts under any lease of (or other arrangement conveying the
right to use) real or personal property, or a combination thereof,
which obligations are required to be classified and accounted for
as capital leases on a balance sheet of such Person in conformity
with GAAP, subject to Section 1.2(a). The amount of such
obligations shall be the capitalized amount thereof determined in
conformity with GAAP, subject to Section 1.2(a), and the final
maturity of such obligations shall be the date of the last payment
due under such lease (or other arrangement) before such lease (or
other arrangement) may be terminated by the lessee without payment
of a premium or penalty. For purposes of Section 6.2, a Capital
Lease Obligation shall be deemed to be secured by a Lien on the
property being leased and such property shall be deemed to be owned
by the lessee.

 

“Carve-Out” as defined in the
Interim Order or the Final Order, as applicable.

 

“Case” and
“Cases” as
defined in the recitals to this Agreement.

 

“Cash” means money, currency or a
credit balance in any demand or deposit account.

 

“Cash Collateral” as defined in the
Interim Order or the Final Order, as applicable.

 

“Cash Equivalents” means, as at any
date of determination, any of the following: (a) marketable
securities (i) issued or directly and unconditionally guaranteed as
to interest and principal by the United States of America or (ii)
issued by any agency of the United States of America and backed by
the full faith and credit of the United States of America, in each
case maturing within one year after such date; (b) marketable
direct obligations issued by any State of the United States of
America or the District of Columbia or any political subdivision of
any such State or District or any public instrumentality thereof,
in each case maturing within one year after such date and having,
at the time of the acquisition thereof, a rating of at least A-1
from S&P or at least P-1 from Moody’s; (c) commercial
paper maturing no more than 270 days from the date of creation
thereof and having, at the time of the acquisition thereof, a
rating of at least A-1 from S&P or at least P-1 from
Moody’s; (d) time deposits, certificates of deposit or
bankers’ acceptances maturing within 270 days after such date
and issued or accepted by any commercial bank organized or licensed
to conduct a banking business under the laws of the United States
of America, any State thereof or the District of Columbia that
(i) is at least “adequately capitalized” (as
defined in the regulations of its primary Federal banking
regulator) and (ii) has Tier 1 capital (as defined in such
regulations) of not less than $500,000,000; (e) fully
collateralized repurchase agreements with a term of not more than
30 days from such date for securities described in clause (a) or
clause (b) above and entered into with a financial institution
satisfying the criteria described in clause (d) above; (f) shares
of any money market mutual fund that (i) has substantially all
its assets invested continuously in the types of investments
referred to in clauses (a) through (e) above, (ii) has net
assets of not less than $5,000,000,000 and (iii) has ratings of at
least AA+ from S&P or at least Aa1 from Moody’s; and (g)
in the case of any Foreign Subsidiary, other short-term investments
that are analogous to the foregoing, are of comparable credit
quality and are customarily used by companies in the jurisdiction
of such Foreign Subsidiary for cash management
purposes.

 

 

 

6

 

 

 

 

“CFC” means (a) any Person that is
a “controlled foreign corporation” (within the meaning
of Section 957 of the Internal Revenue Code), but only if a Credit
Party or a “United States person” (within the meaning
of Section 7701(a)(30) of the Internal Revenue Code) that is an
Affiliate of a Credit Party is, with respect to such Person, a
“United States shareholder” (within the meaning of
Section 951(b) of the Internal Revenue Code) described in Section
951(a)(1) of the Internal Revenue Code and (b) each Subsidiary of
any Person described in clause (a).

 

“CFC Holding Company” means each
Subsidiary that is treated as a partnership or a disregarded entity
for United States federal income tax purposes and that has no
material assets other than assets that consist (directly or
indirectly through disregarded entities or partnerships) of Equity
Interests or indebtedness (as determined for United States tax
purposes) in one or more CFCs or CFC Holding
Companies.

 

“Change in Law” means the
occurrence, after the Closing Date, of any of the following: (a)
the adoption or taking effect of any rule, regulation, treaty or
other law, (b) any change in any rule, regulation, treaty or
other law or in the administration, interpretation, implementation
or application thereof by any Governmental Authority or (c) the
making or issuance of any request, rule, guideline or directive
(whether or not having the force of law) by any Governmental
Authority; provided
that, notwithstanding anything herein to the contrary, (i) the
Dodd-Frank Wall Street Reform and Consumer Protection Act and all
requests, rules, guidelines or directives thereunder or issued in
connection therewith and (ii) all requests, rules, guidelines or
directives promulgated by the Bank for International Settlements,
the Basel Committee on Banking Supervision (or any successor or
similar authority) or the United States or foreign regulatory
authorities, in each case pursuant to Basel III, shall in each case
be deemed to be a “Change in Law”, regardless of the
date enacted, adopted, promulgated or issued.

 

“Change of Control” means
(a)  the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or group
(within the meaning of the Exchange Act and the rules of the SEC
thereunder), other than Permitted Holders, of Equity Interests in
the Borrower representing more than 35% of the aggregate ordinary
voting power represented by the issued and outstanding Equity
Interests in the Borrower, or (b) the occurrence of any
“change of control” (or similar event, however
denominated) with respect to the Borrower under and as defined in
any indenture or other agreement or instrument evidencing,
governing the rights of the holders of or otherwise relating to any
Material Indebtedness of the Borrower or any Restricted Subsidiary
incurred on or after the Petition Date.

 

“Claiming Guarantor” as defined in
Section 7.2(b).

 

“Closing Date” means the date on
which the conditions specified in Section 3.1 have been
satisfied (or waived in accordance with Section 10.5).

 

“Closing Date Certificate” means a
Closing Date Certificate substantially in the form of
Exhibit B.

 

“Closing Date Fees” as defined in
Section 2.10(a).

 

 

 

7

 

 

 

 

“Collateral” means all the
“Collateral” (or equivalent term) as defined in the
Interim Order (and, when entered, the Final Order) or in any
Collateral Document and shall include the DIP Term Funding Account
and any and all amounts held in such account and all proceeds
thereof; provided
that Collateral shall not include the Excluded
Property.

 

“Collateral Agent” means Wilmington Trust, in its
capacity as collateral agent for the Secured Parties under the
Credit Documents, and its successors in such capacity as provided
in Section 9.

 

“Collateral and Guarantee
Requirement” means, at any time, the requirement
that:

 

(a)  the
Administrative Agent shall have received from the Borrower and each
Designated Subsidiary either (i) a counterpart of this Agreement
duly executed and delivered on behalf of such Person, or (ii) in
the case of any Person that becomes a Designated Subsidiary after
the Closing Date, a Counterpart Agreement duly executed and
delivered on behalf of such Person;

 

(b)  the
Collateral Agent shall have received from the Borrower and each
Designated Subsidiary (A) a counterpart of the Pledge and Security
Agreement, duly executed and delivered on behalf of such Person, or
(B) in the case of any Person that becomes a Designated Subsidiary
after the Closing Date, a supplement to the Pledge and Security
Agreement, in the form specified therein, duly executed and
delivered on behalf of such Person;

 

(c)  in
the case of any Person that becomes a Designated Subsidiary after
the Closing Date, the Administrative Agent shall have received, to
the extent requested by the Administrative Agent or the Requisite
Lenders, documents, opinions and certificates of the type referred
to in Sections 3.1(b), 3.1(d), 3.1(e), 3.1(f) and 3.1(k) with
respect to such Designated Subsidiary;

 

(d)  all
Equity Interests owned by or on behalf of any Credit Party shall
have been pledged pursuant to the Pledge and Security Agreement
(provided that the
Credit Parties shall not be required to pledge (i) [reserved]
or (ii) Equity Interests that constitute Excluded Property), and
the Collateral Agent shall, to the extent required by the Pledge
and Security Agreement, have received certificates or other
instruments representing all such Equity Interests, together with
undated stock powers or other instruments of transfer with respect
thereto endorsed in blank;

 

(e)  (i)
the Borrower and each Restricted Subsidiary shall have duly
executed and delivered a counterpart of each of the Intercompany
Note and the Intercompany Indebtedness Subordination Agreement and
(ii) all Indebtedness of any other Person in a principal amount of
$250,000 or more that is owing to any Credit Party shall be
evidenced by a promissory note, and the Intercompany Note, each
other promissory note (if any) evidencing Indebtedness of the
Borrower or any Restricted Subsidiary to any Credit Party and each
promissory note referred to in clause (ii) above shall, in each
case, have been pledged pursuant to the Pledge and Security
Agreement and the Collateral Agent shall have received the
Intercompany Note and all such other promissory notes, together
with undated instruments of transfer with respect thereto endorsed
in blank;

 

(f)  all
instruments and documents, including UCC financing statements
(including transmitting utility financing statements), required by
applicable law or reasonably requested by the Collateral Agent or
the Requisite Lenders to be filed, registered or recorded to create
the Liens intended to be created by the Collateral Documents and to
perfect such Liens to the extent required by, and with the priority
required by, the Collateral Documents shall have been filed,
registered or recorded;

 

 

 

8

 

 

 

 

(g)  within
30 days of the reasonable request by the Collateral Agent (acting
at the written direction of the Requisite Lenders), the Collateral
Agent shall have received (i) a Mortgage with respect to each
Material Real Estate Asset, if any, duly executed and delivered by
the record owner of such Material Real Estate Asset, (ii) a fully
paid policy or policies of title insurance issued by a nationally
recognized title insurance company insuring the Lien of each
Mortgage as a valid and enforceable Lien on the Material Real
Estate Asset described therein, free of any other Liens other than
Permitted Liens, which policies shall be in form and substance
reasonably satisfactory to the Requisite Lenders, together with
such endorsements, coinsurance and reinsurance as the Collateral
Agent or the Requisite Lenders may reasonably request, (iii) a
completed Flood Certificate with respect to any owned Real Estate
Asset subject to a Lien pursuant to a Mortgage, which Flood
Certificate shall be addressed to the Collateral Agent and shall
otherwise comply with the Flood Program and if the Flood
Certificate with respect to any such Real Estate Asset states that
any “Building” (as defined in 12 CFR Chapter III,
Section 339.2) included as part of such Real Estate Asset is
located in a Flood Zone, (A) an acknowledgement of a written
notification from the applicable Credit Party to the Collateral
Agent as to the existence of such Real Estate Asset and as to
whether the community in which such Real Estate Asset is located is
participating in the Flood Program and (B) if such Real Estate
Asset is located in a community that participates in the Flood
Program, evidence that the applicable Credit Party has obtained a
policy of flood insurance that is in compliance with all applicable
requirements of the Flood Program and other applicable law
(including as to the amount of insurance coverage required
thereunder), (iv) with respect to any Material Real Estate Asset
encumbered by a Lien that is to be subordinated to the Lien created
in accordance with this Agreement and the other Credit Documents,
an amendment or agreement of subordination duly executed and
delivered with respect to any Lien or encumbrance that, but for
such subordination, would have priority over the Mortgage delivered
to the Collateral Agent,(v) such surveys, abstracts,
appraisals, legal opinions and other documents as the Collateral
Agent or the Requisite Lenders may reasonably request with respect
to any Mortgage or Material Real Estate Asset and (vi) with respect
to any Leasehold Property with a fair value of greater than
$1,000,000, if reasonably requested by the Requisite Lenders, (A)
evidence that a memorandum of lease for the lease pursuant to which
the leasehold interest in the Leasehold Property has been demised
to the applicable Credit Party has been recorded in the applicable
real property records, (B) to the extent required by such lease,
evidence that the landlord thereunder has consented to the granting
of a Mortgage of the leasehold interest in such Leasehold Property,
in form and substance reasonably acceptable to the Requisite
Lenders, and (C) upon the request of the Collateral Agent or the
Requisite Lenders, an estoppel certificate from the landlord under
the related Lease;

 

(h)  the
Obligations shall be secured as provided in the applicable Order;
and

 

(i)  none
of the Collateral shall be subject to any Liens other than
Permitted Liens.

 

The
foregoing definition shall not require the creation or perfection
of pledges of or security interests in, or the obtaining of title
insurance, legal opinions, consents, approvals or other
deliverables with respect to, any particular assets of the Credit
Parties if and for so long as the Collateral Agent (acting at the
written direction of the Requisite Lenders), in consultation with
the Borrower, determines that the cost of creating or perfecting
such pledges or security interests in such assets, or obtaining
such deliverables shall be excessive in relation to the benefit
that would be afforded to the Lenders therefrom. The Collateral
Agent (acting at the written direction of the Requisite Lenders)
may grant extensions of time for the creation and perfection of
security interests in or the obtaining of title insurance, legal
opinions or other deliverables with respect to particular assets or
the provision of any Obligations Guarantee by any Restricted
Subsidiary (including extensions beyond the Closing Date or in
connection with assets acquired, or Restricted Subsidiaries formed
or acquired, after the Closing Date) where it determines that such
action cannot be accomplished without undue effort or expense by
the time or times at which it would otherwise be required to be
accomplished by this Agreement or the Collateral
Documents.

 

 

 

9

 

 

 

 

Notwithstanding the
foregoing provisions of this definition or anything in this
Agreement or any other Credit Document to the contrary, the
Collateral and Guarantee Requirement shall not apply to any of the
following assets (collectively, the “Excluded Property”; each
capitalized term used in this paragraph but not defined in this
Agreement having the meaning given to it in the Pledge and Security
Agreement): (i) [reserved], (ii) [reserved], (iii) [reserved], (iv)
(A) any assets if, for so long as and to the extent a security
interest may not be granted in such assets as a matter of
applicable law, (B) any lease, license (including any License),
contract or other agreement or any rights or interests thereunder
if, for so long as and to the extent the grant of a security
interest therein would (x) constitute or result in (1) the
unenforceability of any right, title or interest of the applicable
Credit Party in or (2) a breach or termination pursuant to the
terms of, or a default under, such lease, license, contract or
other agreement or (y) require a consent, approval, license or
authorization not obtained from a Governmental Authority or third
party, except, in each case under this clause (B), to the extent
that such breach or default is ineffective under the UCC, the
Bankruptcy Code or other applicable law or principles of equity,
and (C) any property subject to a Lien securing any purchase money
obligation or Capital Lease Obligation incurred following the
Petition Date (or any refinancing indebtedness in respect thereof)
if, for so long as and to the extent the grant of a security
interest therein would constitute or result in a breach or a
default under the related agreements, provided that this clause (C)
shall apply only if such Lien and such purchase money obligation or
Capital Lease Obligation are permitted hereunder, except, in each
case under this clause (iv) to the extent that such law or the
terms in such lease, license, contract or other agreement providing
for such prohibition, breach, right of termination or default or
requiring such consent, approval, license or authorization is
ineffective under the UCC, the Bankruptcy Code or other applicable
law or principles of equity, provided further that this clause (iv)
shall not exclude Proceeds thereof and Accounts and Payment
Intangibles arising therefrom the assignment of which is deemed
effective under the UCC or the Bankruptcy Code, (v) any
governmental licenses or state or local franchises, charters and
authorizations of a Governmental Authority if, for so long as and
to the extent the grant of a security interest therein is
prohibited or restricted by applicable law (including the CPCN
issued in Colorado to Cbeyond Communications LLC and to Fusion LLC
(formerly known as Network Billing Systems, LLC)), except, in each
case under this clause (v), to the extent that such prohibition or
restriction is ineffective under the UCC, the Bankruptcy Code or
other applicable law or principles of equity, provided that this
clause (v) shall not exclude Proceeds thereof and Accounts and
Payment Intangibles arising therefrom the assignment of which is
deemed effective under the UCC or the Bankruptcy Code, (vi) Equity
Interests in any Person that is not a wholly owned Restricted
Subsidiary that is not a Debtor if, for so long as and to the
extent the Organizational Documents of such Person or any related
joint venture, shareholders’ or similar agreement prohibits
or restricts such pledge without the consent of any Person other
than the Borrower or a Restricted Subsidiary (it being understood
that none of the Credit Parties shall be required to seek the
consent of third parties thereunder) except, in each case under
this clause (vi), to the extent that such prohibition or
restriction is ineffective under the UCC, the Bankruptcy Code or
other applicable law or principles of equity, (vii) any
“intent to use” trademark application for which a
statement of use has not been filed with the United States Patent
and Trademark Office, but only to the extent that the grant of a
security interest therein would invalidate such trademark
application, and (viii) any assets specifically excluded from the
Collateral in the Interim Order (or, if applicable, the Final
Order), and in each case of this paragraph other than any Proceeds,
substitutions or replacements of the foregoing (unless such
Proceeds, substitutions or replacements themselves would constitute
assets described in clauses (i) through (viii) above).

 

“Collateral Documents” means the
Pledge and Security Agreement, the Mortgages, if any, the
Intellectual Property Security Agreements, if any, and all other
instruments, documents and agreements delivered by or on behalf of
any Credit Party pursuant to this Agreement or any of the other
Credit Documents in order to grant to, or perfect in favor of, the
Collateral Agent, for the benefit of the Secured Parties, a Lien on
any property of such Credit Party as security for the
Obligations.

 

“Collateral Questionnaire” means
the Collateral Questionnaire delivered by the Borrower pursuant to
Section 3.1(d).

 

 

 

10

 

 

 

 

“Commitment” means, individually or
collectively, as the context may require, the Initial Commitment or
the Delayed Draw Commitment. The aggregate amount of the
Commitments as of the Closing Date is $39,500,000, as set forth on
Schedule 2.1.

 

“Commitment Schedule” means the
Schedule attached hereto as Schedule 2.1.

 

“Communications Laws” means (a) the
Communications Act of 1934, (b) the rules and regulations of the
FCC promulgated under Title 47 of the U.S. Code of Federal
Regulations, as they may be amended or supplemented from time to
time and decisions, policies, reports and orders issued pursuant to
the adoption of such rules and regulations, (c) the Communications
Assistance for Law Enforcement Act, codified at 47 U.S.C.
§1001, et. seq., (d) such other laws of the United States
codified or otherwise included in Title 47 of the U.S. Code as may
be applicable to the conduct of the business of the Borrower and
the Restricted Subsidiaries, (e) any other law of any Governmental
Authority with jurisdiction over telecommunications related
matters, including all laws administered by any State PUC, and (f)
the terms and conditions of any License granted or issued to the
Borrower or any Restricted Subsidiaries.

 

“Compliance Certificate” means a
Compliance Certificate substantially in the form of Exhibit
C.

 

“Connection Income Taxes” means
Other Connection Taxes that are imposed on or measured by net
income (however denominated) or that are franchise Taxes or branch
profits Taxes.

 

“Contractual Obligation” means,
with respect to any Person, any provision of any Security issued by
such Person or any indenture, mortgage, deed of trust, contract,
undertaking or other agreement or instrument to which such Person
is a party or by which such Person or any of its properties is
bound or to which such Person or any of its properties is
subject.

 

“Control” means, with respect to
any Person, the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies, or
the dismissal or appointment of the management, of such Person,
whether through the ability to exercise voting power, the ownership
of Securities, by contract, or otherwise. The words
“Controlling”, “Controlled by” and
“under common Control with” have correlative
meanings.

 

“Conversion/Continuation Date”
means the effective date of a continuation or conversion, as the
case may be, as set forth in the applicable Conversion/Continuation
Notice.

 

“Conversion/Continuation Notice”
means a Conversion/Continuation Notice substantially in the form of
Exhibit D.

 

“Counterpart Agreement” means a
Counterpart Agreement substantially in the form of
Exhibit E.

 

“Credit Date” means the date of any
Credit Extension.

 

“Credit Document” means each of
this Agreement, the Collateral Documents, the Administrative Agent
Fee Letter, the Counterpart Agreements and, except for purposes of
Section 10.5, the Notes, if any, the Collateral Questionnaire and
all other documents, certificates, instruments or agreements
executed and delivered by or on behalf of any Credit Party for the
benefit of any Agent or any Lender in connection herewith on or
after the date hereof and which are designated as “Credit
Documents” pursuant to an agreement between the Borrower and
the Administrative Agent.

 

 

 

11

 

 

 

 

“Credit Extension” means the making
of a Loan.

 

“Credit Parties” means the Borrower
and the Guarantor Subsidiaries.

 

“Critical Vendor Report” means a
report, in a form reasonably acceptable to the Lenders or their
advisors, describing in reasonable detail the matters set forth on
Exhibit L hereto.

 

“Davis Polk” means Davis Polk &
Wardwell LLP, acting in their capacity as counsel to the Ad Hoc
Group of Term Lenders.

 

“Debtor” as defined in the preamble
hereto.

 

“Debtor Relief Laws” means the
Bankruptcy Code and all other liquidation, conservatorship,
bankruptcy, assignment for the benefit of creditors, moratorium,
arrangement (including under corporate statutes), rearrangement,
receivership, insolvency, reorganization or similar debtor relief
laws of the United States of America or other applicable
jurisdictions from time to time in effect.

 

“Default” means a condition or
event that, after notice or lapse of time or both, would constitute
an Event of Default.

 

“Defaulting Lender” means any
Lender that (a) has failed (i) to fund all or any portion of
its Loans within two Business Days of the date such Loans were
required to be funded hereunder, unless such Lender notifies the
Administrative Agent and the Borrower in good faith in writing that
such failure is the result of such Lender’s determination
that one or more conditions precedent to funding (which conditions
precedent, together with the applicable Default, if any, shall be
specifically identified in such writing) has not been satisfied, or
(ii) to pay to the Administrative Agent, the Collateral Agent or
any Lender any other amount required to be paid by it hereunder
within two Business Days of the date when due, (b) has notified the
Borrower and the Administrative Agent in writing that it does not
intend to comply with its funding obligations hereunder, or has
made a public statement to that effect (unless such writing or
public statement relates to such Lender’s obligation to fund
a Loan hereunder and states that such position is based on such
Lender’s determination that a condition precedent to funding
(which condition precedent, together with the applicable Default,
if any, shall be specifically identified in such writing or public
statement) cannot be satisfied), (c) has failed, within three
Business Days after written request by the Administrative Agent or
the Borrower, to confirm in writing to the Administrative Agent and
the Borrower that it will comply with its prospective funding
obligations hereunder (provided that such Lender shall
cease to be a Defaulting Lender pursuant to this clause (c) upon
receipt of such written confirmation by the Administrative Agent
and the Borrower), or (d) is, or a direct or indirect parent
company of such Lender is, (i) the subject of a Bail-In
Action, (ii) insolvent, or is generally unable to pay its debts as
they become due, or admits in writing its inability to pay its
debts as they become due, or makes a general assignment for the
benefit of its creditors or (iii) the subject of a proceeding under
any Debtor Relief Laws, or a receiver, trustee, conservator,
intervenor or sequestrator or the like (including the Federal
Deposit Insurance Corporation or any other state or federal
regulatory authority acting in a like capacity with respect to such
Lender) has been appointed for such Lender or its direct or
indirect parent company, or such Lender or its direct or indirect
parent company has taken any action in furtherance of or indicating
its consent to or acquiescence in any such proceeding or
appointment; provided that a Lender shall
not be a Defaulting Lender solely by virtue of the ownership or
acquisition of any Equity Interest in such Lender or any direct or
indirect parent company thereof by a Governmental Authority so long
as such ownership interest does not result in or provide such
Lender with immunity from the jurisdiction of courts within the
United States or from the enforcement of judgments or writs of
attachment on its assets or permit such Lender (or such
Governmental Authority) to reject, repudiate, disavow or disaffirm
any contracts or agreements made with such Lender. Any
determination by the Administrative Agent or the Requisite Lenders
that a Lender is a Defaulting Lender under any one or more of
clauses (a) through (d) above shall be conclusive and binding
absent manifest error, and such Lender shall be deemed to be a
Defaulting Lender upon delivery of written notice of such
determination by the Administrative Agent or the Requisite Lenders
to the Borrower and each Lender, and, if such determination is made
by the Requisite Lenders, to the Administrative Agent.

 

 

 

12

 

 

 

 

“Delayed Draw Borrowing Date” means
any date on which the Delayed Draw Loan is made, which shall be no
earlier than the Final Order Entry Date.

 

“Delayed Draw Commitment” means,
with respect to each Lender, the commitment of such Lender to make
a Delayed Draw Loan to the Borrower in an aggregate principal
amount not to exceed the amount set forth opposite such
Lender’s name on the Commitment Schedule, as applicable, as
such amount may be adjusted from time to time in accordance with
this Agreement.

 

“Delayed Draw Loan” as defined in
Section ‎2.1.

 

“Delaware LLC” shall mean any
limited liability company organized or formed under the laws of the
State of Delaware.

 

“Delaware Divided LLC” shall mean
any Delaware LLC which has been formed upon consummation of a
Delaware LLC Division.

 

“Delaware LLC Division” shall mean
the statutory division of any Delaware LLC into two or more
Delaware LLCs pursuant to Section 18-217 of the Delaware Limited
Liability Company Act.

 

“Designated Subsidiary” means each
Restricted Subsidiary of the Borrower, other than (a) any
Subsidiary that is not a wholly owned Subsidiary,
(b) [reserved], (c) [reserved], (d) [reserved], (e) any
Subsidiary that is prohibited by applicable law or, in the case of
any Subsidiary acquired after the Petition Date, any Contractual
Obligation in effect at the time such Subsidiary is acquired (and
not entered into in contemplation of or in connection with such
acquisition) from providing an Obligations Guarantee (including any
such prohibition arising from any requirement to obtain a consent,
approval (including regulatory approval), license or authorization
of any Governmental Authority that has not been obtained in order
to provide such Obligations Guarantee); provided that to the extent any
such consent, approval, license or authorization is required from
the FCC or any State PUC, the Borrower and the Restricted
Subsidiaries shall use commercially reasonable efforts (including
by making all applicable filings and submitting all applicable
notices) to obtain the same promptly after such Restricted
Subsidiary is otherwise required to become a Designated Subsidiary,
(f) any captive insurance company and (g) any not-for-profit
Subsidiary, (h) any Subsidiary where the burden or cost of
providing an Obligations Guarantee by such Subsidiary is excessive
in relation to the benefit that would be afforded to the Lenders
thereby, as determined by the Requisite Lenders in consultation
with the Borrower or (i) any Canadian Subsidiaries for as long as
the Requisite Lenders reasonably determine in good faith, after
consultation with the Borrower, that the direct and indirect costs
and risks associated with providing an Obligations Guarantee
outweigh the benefits afforded thereby; provided that each of the
Debtors in any of the Cases shall at all times be a Designated
Subsidiary.

 

“DIP Budget” means a rolling cash
flow forecast delivered on or prior to the Closing Date and on any
date as set forth in Section 5.01(o) thereafter, setting forth the
Debtors’ projected cash receipts and cash disbursements on a
week-by-week basis (i) initially, covering the period commencing on
or about the Closing Date and ending seven months after the Closing
Date and (ii) thereafter, covering the period commencing on the
first Business Day of the week of the delivery of such forecast to
the date ending seven months after the Closing Date.

 

 

 

13

 

 

 

 

“DIP Term Facility” as defined in
the recitals to this Agreement.

 

“DIP Term Funding Account” means
the segregated deposit account to be established in the name of the
Borrower at a financial institution satisfactory to the Requisite
Lenders and subject to an account control agreement providing for
“day 1” control in favor of the Collateral Agent in
form and substance reasonably satisfactory to the Collateral Agent
and the Requisite Lenders into which the proceeds of the Delayed
Draw Loan are to be deposited; it being acknowledged and agreed
that the funds in such account shall only be made available to the
Borrower in accordance with the terms and conditions set forth in
Section 2.23.

 

“DIP Term Funding Account Withdrawal
Notice” as defined in Section 2.23.

 

“Disposition” means any sale,
transfer, lease or other disposition (including any sale or
issuance of Equity Interests in a Subsidiary) of any property by
any Person, including any sale, transfer or other disposition, with
or without recourse, of any notes or accounts receivable or any
rights and claims associated therewith and including any
disposition of property to a Delaware Divided LLC pursuant to a
Delaware LLC Division. “Dispose” has the meaning
correlative thereto.

 

“Disqualified Equity Interest”
means, with respect to any Person, any Equity Interest in such
Person that, by its terms (or by the terms of any security or other
Equity Interests into which it is convertible or for which it is
exchangeable, either mandatorily or at the option of the holder
thereof), or upon the occurrence of any event or condition,
(a) matures or is mandatorily redeemable (other than solely
for Equity Interests in such Person that are not Disqualified
Equity Interests and Cash in lieu of fractional shares of such
Equity Interests), whether pursuant to a sinking fund obligation or
otherwise, (b) is redeemable at the option of the holder
thereof (other than solely for Equity Interests in such Person that
do not constitute Disqualified Equity Interests and Cash in lieu of
fractional shares of such Equity Interests), in whole or in part,
or is required to be repurchased by the Borrower or any Restricted
Subsidiary, in whole or in part, at the option of the holder
thereof (other than solely for Equity Interests in such Person that
do not constitute Disqualified Equity Interests and Cash in lieu of
fractional shares of such Equity Interests) or (c) is or becomes
convertible into or exchangeable for, either mandatorily or at the
option of the holder thereof, Indebtedness or any other Equity
Interests (other than solely for Equity Interests in such Person
that do not constitute Disqualified Equity Interests and Cash in
lieu of fractional shares of such Equity Interests), in each case,
prior to the date that is 91 days after the Stated Maturity Date
(determined as of the date of issuance thereof or, in the case of
any such Equity Interests outstanding on the date hereof, the date
hereof), except, in the case of clauses (a) and (b), as a result of
a “change of control” or “asset sale”, so
long as any rights of the holders thereof upon the occurrence of
such a change of control or asset sale event are subject to the
prior payment in Cash in full of all Obligations and, if any are
then in effect, the termination of the Commitments; provided that an Equity
Interest in any Person that is issued to any employee or to any
plan for the benefit of employees or by any such plan to such
employees shall not constitute a Disqualified Equity Interest
solely because it may be required to be repurchased by such Person
or any of its Subsidiaries in order to satisfy applicable statutory
or regulatory obligations or as a result of such employee’s
termination, death or disability’ provided further that the Holcombe
Preferred Stock shall not constitute a Disqualified Equity
Interest.

 

 

 

14

 

 

 

 

“Disqualified Institution” means
(a) such competitors of the Borrower and its Subsidiaries as have
been identified by name in writing by the Borrower to the
Administrative Agent from time to time and (b) any Affiliate of any
such Person identified pursuant to clause (a) above (i) that
has been identified by name in writing by the Borrower to the
Administrative Agent from time to time or (ii) where such
Affiliate’s relationship to such Person is readily apparent
on its face on the basis of the name of such Affiliate, in each
case under this clause (b), other than any such Affiliate that is a
bona fide fixed income investor or debt fund that is engaged in the
making, purchasing, holding or otherwise investing in commercial
loans, bonds or similar extensions of credit in the ordinary course
of business; provided that no Person shall
be a Disqualified Institution until the date on which the list of
Disqualified Institutions that have been so identified by name
pursuant to this definition shall have been made available to the
Lenders on the Platform. It is understood and agreed that any
identification by the Borrower pursuant to this definition shall
not apply retroactively to disqualify any assignment or
participation to any Person that shall have become a Lender or a
participant prior thereto (but that no further assignments or
delegations to, or sales of participations by, may be made to any
such Person thereafter and such Person shall thereafter for all
other purposes be a Disqualified Institution). The Administrative
Agent will promptly make such list available on the Platform upon
the written request of the Borrower that it do so. Notwithstanding
anything to the contrary in this Agreement, each of the parties
hereto acknowledges and agrees that the Administrative Agent shall
not have any duty to ascertain, monitor or enforce compliance with
the list of Disqualified Institutions and shall not have any
liability with respect to any assignment or participation made to a
Disqualified Institution.

 

“Dollars” and the sign
“$” mean the
lawful money of the United States of America.

 

“Domestic Subsidiary” means any
Subsidiary organized under the laws of the United States of
America, any State thereof or the District of
Columbia.

 

“EBITDA” shall mean consolidated
EBITDA of the Borrower and its Subsidiaries, calculated in a manner
reasonably acceptable to the Requisite Lenders or their advisors
and consistent with the projections delivered pursuant to Section
3.1(l)(ii) in the form set forth on Exhibit C.

 

“EBITDA Variance Percentage” shall
mean (i) for the test periods ending on June 30, 2019 and July 31,
2019: 15%, (ii) for the test periods ending on August 31, 2019 and
September 30, 2019: 12.5% and (iii) for the test periods ending
thereafter: 10.0%

 

“EEA Financial Institution” means
(a) any credit institution or investment firm established in any
EEA Member Country that is subject to the supervision of an EEA
Resolution Authority, (b) any entity established in an EEA Member
Country that is a parent of an institution described in clause (a)
above, or (c) any financial institution established in an EEA
Member Country that is a subsidiary of an institution described in
clause (a) or (b) above 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.

 

“Eligible Assignee” means (a) any
Lender, any Affiliate of any Lender and any Related Fund (any two
or more Related Funds of any Lender being treated as a single
Eligible Assignee for all purposes hereof) and (b) any
commercial bank, insurance company, investment or mutual fund or
other Person that is an “accredited investor” (as
defined in Regulation D under the Securities Act) and that
extends credit or buys loans in the ordinary course of business;
provided that in no
event shall any natural person (or any holding company, investment
vehicle or trust for, or owned and operated for the primary benefit
of, a natural person), any Defaulting Lender, any Disqualified
Institution, the Borrower, any Subsidiary or any other Affiliate of
the Borrower be an Eligible Assignee.

 

 

 

15

 

 

 

 

“Employee Benefit Plan” means any
of (a) an “employee benefit plan”, as defined in
Section 3(3) of ERISA, that is subject to Parts II, III or IV of
Title I of ERISA or Title IV of ERISA and that is or was sponsored,
maintained or contributed to by, or required to be contributed to
by, the Borrower, any Restricted Subsidiary or any of their
respective ERISA Affiliates, (b) a “plan” as defined in
Section 4975 of the Code or (c) any Person whose assets include
(for purposes of ERISA Section 3(42) or otherwise for purposes of
Title I of ERISA or Section 4975 of the Code) the assets of any
such “employee benefit plan” or “plan”, in
each case, other than a Foreign Plan.

 

“Environmental Laws” means all
applicable laws (including common law), statutes, ordinances,
orders, rules, regulations, judgments, Governmental Authorizations
or any other requirements of Governmental Authorities relating to
pollution or to the protection of the environment, natural
resources, threatened or endangered species or human health and
safety.

 

“Environmental Liability” means all
liabilities, obligations, damages, losses, claims, actions, suits,
judgments, orders, fines, penalties, fees, expenses and costs,
(including administrative oversight costs, natural resource
damages, monitoring and remediation costs and reasonable fees and
expenses of attorneys and consultants), whether contingent or
otherwise, arising out of or relating to: (a) compliance
or non-compliance with any Environmental Law, (b) the
generation, use, handling, transportation, storage, treatment,
recycling, disposal (or arrangement for such activities) of any
Hazardous Materials, (c) exposure to any Hazardous Materials,
(d) the presence or Release of any Hazardous Materials or
(e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to
any of the foregoing.

 

“Equity Interests” means any and
all shares, interests, participations or other equivalents (however
designated) of capital stock of a corporation, any and all
equivalent ownership interests in a Person (other than a
corporation), including partnership interests and membership
interests, and any and all warrants, rights or options to purchase
or acquire any of the foregoing (other than, prior to the date of
such conversion, Indebtedness that is convertible into any such
Equity Interests).

 

“ERISA” means the Employee
Retirement Income Security Act of 1974 and the rules and
regulations promulgated thereunder.

 

“ERISA Affiliate” means, with
respect to any Person, (a) any corporation that is a member of
a controlled group of corporations within the meaning of Section
414(b) of the Internal Revenue Code of which such Person is a
member, (b) any trade or business (whether or not incorporated)
that is a member of a group of trades or businesses under common
control within the meaning of Section 414(c) of the Internal
Revenue Code of which such Person is a member and (c) any member of
an affiliated service group within the meaning of
Section 414(m) or 414(o) of the Internal Revenue Code of which
such Person, any corporation described in clause (a) above or any
trade or business described in clause (b) above is a member. Any
Person that was, but has since ceased to be, an ERISA Affiliate
(within the meaning of the previous sentence) of the Borrower or
any Restricted Subsidiary shall continue to be considered an ERISA
Affiliate of the Borrower or such Restricted Subsidiary within the
meaning of this definition with respect to the period such Person
was an ERISA Affiliate of the Borrower or such Restricted
Subsidiary and with respect to liabilities arising after such
period for which the Borrower or such Restricted Subsidiary could
be liable under the Internal Revenue Code or ERISA.

 

 

 

16

 

 

 

 

“ERISA Event” means (a) the
occurrence of a “reportable event” within the meaning
of Section 4043 of ERISA and the regulations issued thereunder
with respect to any Pension Plan (excluding those for which the
provision for 30 day notice to the PBGC has been waived by
regulation), (b) the failure of the Borrower, any Restricted
Subsidiary or any of their respective ERISA Affiliates to meet the
minimum funding standard of Section 412 of the Internal Revenue
Code or Section 302 of ERISA with respect to any Pension Plan
(whether or not waived in accordance with Section 412(c) of
the Internal Revenue Code) or the failure to make by its due date a
required installment under Section 430(j) of the Internal Revenue
Code with respect to any Pension Plan or the failure of the
Borrower, any Restricted Subsidiary or any of their respective
ERISA Affiliates to make any required contribution to a
Multiemployer Plan, (c) the filing pursuant to Section 412(c)
of the Internal Revenue Code or Section 302(c) of ERISA of an
application for a waiver of the minimum funding standard with
respect to any Pension Plan, (d) the provision by the administrator
of any Pension Plan pursuant to Section 4041(a)(2) of ERISA of a
notice of intent to terminate such plan in a distress termination
described in Section 4041(c) of ERISA, (e) the withdrawal by the
Borrower, any Restricted Subsidiary or any of their respective
ERISA Affiliates from any Pension Plan with two or more
contributing sponsors or the termination of any such Pension Plan
resulting in liability to the Borrower, any Restricted Subsidiary
or any of their respective Affiliates pursuant to Section 4063 or
4064 of ERISA during a plan year in which such entity was a
“substantial employer” as defined in Section 4001(a)(2)
of ERISA, (f) the institution by the PBGC of proceedings to
terminate any Pension Plan, or the appointment of a trustee to
administer, any Pension Plan, (g) the incurrence by the Borrower,
any Restricted Subsidiary or any of their respective ERISA
Affiliates of any liability with respect to the withdrawal or
partial withdrawal from any Pension Plan, (h) the imposition of
liability on the Borrower, any Restricted Subsidiary or any of
their respective ERISA Affiliates pursuant to Section 4062(e) or
4069 of ERISA, (i) the withdrawal of the Borrower, any Restricted
Subsidiary or any of their respective ERISA Affiliates in a
complete or partial withdrawal (within the meaning of Sections 4203
and 4205 of ERISA) from any Multiemployer Plan if there is any
liability therefor, (j) the receipt by the Borrower, any Restricted
Subsidiary or any of their respective ERISA Affiliates of notice
from any Multiemployer Plan (i) that such Multiemployer Plan is in
insolvency pursuant to Section 4245 of ERISA, (ii) that such
Multiemployer Plan is in “endangered” or
“critical” status (within the meaning of Section 432 of
the Internal Revenue Code or Section 305 of ERISA) or (iii) that
such Multiemployer Plan intends to terminate or has terminated
under Section 4041A or 4042 of ERISA, (k) a determination that any
Pension Plan is in “at risk” status (as defined in
Section 430(i)(4) of the Internal Revenue Code or Section 303(i)(4)
of ERISA) with respect to any plan year, (l) the occurrence of
an act or omission that could reasonably be expected to give rise
to the imposition on the Borrower, any Restricted Subsidiary or any
of their respective ERISA Affiliates of fines, penalties, taxes or
related charges under Chapter 43 of the Internal Revenue Code or
under Section 409, Section 502(c), 502(i) or 502(l), or Section
4071 of ERISA in respect of any Employee Benefit Plan, (m) the
assertion of a claim (other than routine claims for benefits)
against any Employee Benefit Plan other than a Multiemployer Plan
or the assets thereof, or against the Borrower, any Restricted
Subsidiary or any of their respective ERISA Affiliates in
connection with any Employee Benefit Plan, (n) receipt from the IRS
of notice of the failure of any Pension Plan (or any other Employee
Benefit Plan intended to be qualified under Section 401(a) of the
Internal Revenue Code) to qualify under Section 401(a) of the
Internal Revenue Code, or the failure of any trust forming part of
any Pension Plan to qualify for exemption from taxation under
Section 501(a) of the Internal Revenue Code, (o) the imposition of
a Lien pursuant to Section 430(k) of the Internal Revenue Code or
Section 303(k) of ERISA or a violation of Section 436 of the
Internal Revenue Code or (p) the occurrence of a non-exempt
“prohibited transaction” (as defined in Section 4975 of
the Internal Revenue Code or Section 406 of ERISA) with respect to
which the Borrower, any Restricted Subsidiary or any of their
respective ERISA Affiliates is a “disqualified person”
(within the meaning of Section 4975 of the Internal Revenue Code)
or a “party in interest” (within the meaning of Section
406 of ERISA).

 

“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.

 

“Eurodollar Rate Borrowing” means a
Borrowing comprised of Eurodollar Rate Loans.

 

“Eurodollar Rate Loan” means a Loan
bearing interest at a rate determined by reference to the Adjusted
Eurodollar Rate.

 

“Event of Default” means any
condition or event set forth in Section 8.1.

 

 

 

17

 

 

 

 

“Exchange Act” means the Securities
Exchange Act of 1934.

 

“Excluded Property” as defined in
the definition of the term “Collateral and Guarantee
Requirement”.

 

“Excluded Taxes” means any of the
following Taxes imposed on or with respect to a Recipient or
required to be withheld or deducted from a payment to a Recipient:
(a) Taxes imposed on or measured by net income (however
denominated), franchise Taxes and branch profits Taxes, in each
case, (i) imposed as a result of such Recipient being organized
under the laws of, or having its principal office or, in the case
of any Lender, its applicable lending office located in, the
jurisdiction imposing such Tax (or any political subdivision
thereof) or (ii) that are Other Connection Taxes, (b) in the case
of a Lender, US federal withholding Taxes imposed on amounts
payable to or for the account of such Lender with respect to an
applicable interest in a Loan or Commitment pursuant to a law in
effect on the date on which (i) such Lender acquires such interest
in the Loan or Commitment (other than pursuant to an assignment
requested by the Borrower under Section 2.22) or (ii) such Lender
changes its lending office, except in each case to the extent that,
pursuant to Section 2.19, amounts with respect to such Taxes were
payable either to such Lender’s assignor immediately before
such Lender acquired the applicable interest in such Loan or
Commitment or to such Lender immediately before it changed its
lending office, (c) Taxes attributable to such Recipient’s
failure to comply with Section 2.19(g) and (d) any US federal
withholding Taxes imposed under FATCA.

 

“Existing Debt” means the
Indebtedness under (i) the Super Senior Secured Credit Agreement
(prior to its roll-up into Term Loans pursuant to the terms
hereof), (ii) the Existing First Lien Credit Agreement, (iii) the
Existing Second Lien Credit Agreement and (iv) the Subordinated
Notes.

 

“Existing Debt Documents” means the
Super Senior Secured Credit Agreement, the Existing First Lien
Credit Agreement, the Existing Second Lien Credit Agreement and the
Subordinated Notes.

 

“Existing First Lien Credit
Agreement” means the First Lien Credit and Guaranty
Agreement dated as of May 4, 2018, among the Borrower, the
guarantors named therein, the financial institutions named therein,
and Wilmington Trust, National Association, as administrative agent
and collateral agent, as amended, supplemented or otherwise
modified prior to the Petition Date.

 

“Existing First Lien Pledge and Security
Agreement” means the First Lien Pledge and Security
Agreement dated as of May 4, 2018, among the Borrower, the
guarantors party thereto, and Wilmington Trust, National
Association, as collateral agent, as amended, supplemented or
otherwise modified prior to the Petition Date.

 

“Existing Second Lien Credit
Agreement” means the Second Lien Credit and Guaranty
Agreement dated as of May 4, 2018, among the Borrower, the
guarantors named therein, the financial institutions named therein,
and Wilmington Trust, National Association, as administrative agent
and collateral agent, as amended, supplemented or otherwise
modified prior to the Petition Date.

 

“Existing Subordinated Notes” means
the subordinated notes, each dated October 28, 2016, as amended and
restated as of May 4, 2018, in favor of Holcombe T. Green, Jr., R.
Kirby Godsey and the Holcombe T. Green, Jr. 2013 Five-Year Annuity
Trust.

 

“Facility” means any real property
(including all buildings, fixtures or other improvements located
thereon) now, hereafter or heretofore owned, leased, operated or
used by the Borrower or any Restricted Subsidiary or any of their
respective predecessors or Affiliates.

 

 

 

18

 

 

 

 

“FATCA” means Sections 1471 through 1474
of the Internal Revenue Code, effective as of the date hereof (or
any amended or successor version that is not materially more
onerous to comply with), any current or future regulations or
official interpretations thereof, any agreements entered into
pursuant to Section 1471(b)(1) of the Internal Revenue Code and any
fiscal or regulatory legislation, rules or practices adopted
pursuant to any intergovernmental agreement, treaty or convention
among Governmental Authorities and implementing such Sections of
the Internal Revenue Code.

 

“FCC” means the Federal
Communications Commission, or any Governmental Authority succeeding
to the functions thereof.

 

“Federal Funds Effective Rate”
means, for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal Funds transactions with
members of the Federal Reserve System on such day, as published by
the Federal Reserve Bank of New York on the Business Day next
succeeding such day; provided that (a) if such day
is not a Business Day, the Federal Funds Effective Rate for such
day shall be such rate on such transactions on the next preceding
Business Day as so published on the next succeeding Business Day,
and (b) if no such rate is so published on such next succeeding
Business Day, the Federal Funds Effective Rate for such day shall
be the rate per annum equal to the average (rounded upwards, if
necessary to the next 1/100th of 1%) of the quotations for the day
for such transactions received by the Administrative Agent from
three federal funds brokers of recognized standing selected by it.
Notwithstanding the foregoing, if the Federal Funds Effective Rate,
determined as above, would otherwise be less than zero, then the
Federal Funds Effective Rate shall be deemed to be zero for all
purposes of this Agreement.

 

“Final Order” means an order of the
Bankruptcy Court authorizing and approving on a final basis, among
other things, the DIP Term Facility and the Transactions
contemplated by this Agreement in the form of the Interim Order
(with only such modifications thereto as are necessary to convert
the Interim Order to a final order and such other modifications as
are satisfactory to the Requisite Lenders (and with respect to any
provision that affects the rights or duties of any Agent, the
Administrative Agent) in their sole discretion) (as the same may be
amended, supplemented, or modified from time to time after entry
thereof with the consent of the Requisite Lenders (and with respect
to any provision that affects the rights or duties of any Agent,
the Administrative Agent) in their sole discretion) as to which no
stay has been entered.

 

“Final Order Entry Date” means the
date on which the Final Order is entered by the Bankruptcy
Court.

 

“Financial Officer Certification”
means, with respect to any consolidated financial statements of any
Person, a certificate of the chief financial officer of such Person
stating that such financial statements present fairly, in all
material respects, the consolidated financial position of such
Person and its Subsidiaries as of the dates indicated and the
consolidated results of their operations and their cash flows for
the periods indicated in conformity with GAAP applied on a
consistent basis (except as otherwise disclosed in such financial
statements), subject to changes resulting from normal year-end
audit adjustments and the absence of footnotes.

 

“Fiscal Quarter” means a fiscal
quarter of any Fiscal Year.

 

“Fiscal Year” means the fiscal year
of the Borrower and the Subsidiaries ending on December 31 of each
calendar year.

 

“Flood Hazard Property” means any
Real Estate Asset subject to a Mortgage or required pursuant to the
terms hereof to become subject to a Mortgage in favor of the
Collateral Agent, for the benefit of the Secured Parties, and
located in an area designated by the Federal Emergency Management
Agency as having special flood or mud slide hazards.

 

 

 

19

 

 

 

 

“Flood Certificate” means a life of
loan “Standard Flood Hazard Determination Form” of the
Federal Emergency Management Agency.

 

“Flood Program” means the National Flood Insurance
Program created by the US Congress pursuant to (a) the National
Flood Insurance Act of 1968, as now or hereafter in effect or any
successor statute thereto, (b) the Flood Disaster Protection Act of
1973, as now or hereafter in effect or any successor statute
thereto, (c) the National Flood Insurance Reform Act of 1994, as
now or hereafter in effect or any successor statute thereto, (d)
the Flood Insurance Reform Act of 2004, as now or hereafter in
effect or any successor statute thereto and (e) the Biggert-Waters
Flood Insurance Reform Act of 2012, as now or hereafter in effect
or any successor statute thereto, including any and all rules and
regulations promulgated thereunder.

 

“Flood Zone” means areas having special flood
hazards as described in the National Flood Insurance Act of 1968,
as now or hereafter in effect or any successor statute
thereto.

 

“Foreign Lender” means a Lender
that is not a US Person.

 

“Foreign Plan” means any plan that
would be an Employee Benefit Plan but for the fact that it is not
subject to United States law and that is maintained or contributed
to by the Borrower, any Restricted Subsidiary or, to the extent
that the Borrower or any Restricted Subsidiary shall have liability
with respect to such Employee Benefit Plan, any of their respective
ERISA Affiliates, for or on behalf of its employees whose principal
place of employment is outside of the United States.

 

“Foreign Plan Event” means, with
respect to any Foreign Plan, (a) the failure to make or, if
applicable, accrue in accordance with normal accounting practices,
any employer or employee contributions required by applicable laws
or by the terms of such Foreign Plan, (b) the existence of
unfunded liabilities in excess of the amount permitted under any
applicable law, or in excess of the amount that would be permitted
absent a waiver from the applicable Governmental Authority, (c) the
receipt of a notice from a Governmental Authority relating to the
intention to terminate any such Foreign Plan, or alleging the
insolvency of any such Foreign Plan, or alleging the insolvency of
the Borrower or any Restricted Subsidiary that sponsors,
contributes to or participates in such Foreign Plan, (d) the
initiation of any action or filing by the Borrower or any
Restricted Subsidiary to voluntarily terminate or wind up in whole
or in part any Foreign Plan where any such Foreign Plan is not
fully funded and that would result in the incurrence of a liability
by the Borrower or any Restricted Subsidiary, (e) the incurrence of
liability by the Borrower or any Restricted Subsidiary under
applicable law on account of the complete or partial termination of
such Foreign Plan or the complete or partial withdrawal of any
participating employer therein, (f) the failure to timely register
or loss of good standing with applicable Governmental Authorities
of any such Foreign Plan required to be so registered or maintain
such standing if such failure to register or loss of such standing
would result in the incurrence of a liability by the Borrower or
any Restricted Subsidiary or (g) the failure of any Foreign Plan to
comply with any material provisions of applicable laws or with the
material terms of such Foreign Plan if such failure would result in
the incurrence of a liability by the Borrower or any Restricted
Subsidiary.

 

“Foreign Subsidiary” means any
Subsidiary that is not a Domestic Subsidiary.

 

“Funding Notice” means a notice
substantially in the form of Exhibit F.

 

 

 

20

 

 

 

 

“GAAP” means, at any time, subject
to Section 1.2(a), United States generally accepted accounting
principles as in effect at such time, applied in accordance with
the consistency requirements thereof.

 

“Green Subordinated Note” means the
subordinated unsecured note issued by the Borrower on May 4, 2018
to Holcombe T. Green, Jr. (or an entity majority-owned and
Controlled by Holcombe T. Green, Jr. or his heirs, beneficiaries,
trusts or estate) in an aggregate principal amount of
$10,000,000.

 

“Greenhill” means Greenhill &
Co., LLC, acting in their capacity as financial advisor to the Ad
Hoc Group of Term Lenders.

 

“Governmental Act” means any act or
omission, whether rightful or wrongful, of any present or future de
jure or de facto government or Governmental Authority.

 

“Governmental Authority” means any
federal, state, municipal, national, supranational or other
government, governmental department, commission, board, bureau,
court, agency or instrumentality or political subdivision thereof
or any entity, officer or examiner exercising executive,
legislative, judicial, regulatory or administrative functions of or
pertaining to any government or any court, in each case whether
associated with the United States of America, any State thereof or
the District of Columbia or a foreign entity or government
(including any supra-national body exercising such powers or
functions, such as the European Union or the European Central
Bank).

 

“Governmental Authorization” means
any permit, license, registration, approval, exemption,
authorization, plan, directive, binding agreement, consent order or
consent decree made to, or issued, promulgated or entered into by
or with, any Governmental Authority.

 

“Guarantee” of or by any Person
(the “guarantor”) means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having
the economic effect of guaranteeing any Indebtedness or other
obligation of any other Person (the “primary obligor”) in any manner,
whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or
advance or supply funds for the purchase or payment of) such
Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment
thereof, (b) to purchase or lease property, Securities or
services for the purpose of assuring the owner of such Indebtedness
or other obligation of the payment thereof, (c) to maintain
working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the
primary obligor to pay such Indebtedness or other obligation or (d)
as an account party in respect of any letter of credit or letter of
guaranty issued to support such Indebtedness or other obligation;
provided that the
term “Guarantee” shall not include (i) endorsements for
collection or deposit in the ordinary course of business or (ii)
customary indemnity obligations entered into in connection with any
Disposition permitted hereunder (other than any such obligations
with respect to Indebtedness). The amount, as of any date of
determination, of any Guarantee shall be the principal amount
outstanding on such date of Indebtedness or other obligation
guaranteed thereby (or, in the case of (A) any Guarantee the terms
of which limit the monetary exposure of the guarantor or (B) any
Guarantee of an obligation that does not have a principal amount,
the maximum monetary exposure as of such date of the guarantor
under such Guarantee (as determined, in the case of clause (A),
pursuant to such terms or, in the case of clause (B), reasonably
and in good faith by the chief financial officer of the
Borrower)).

 

“Guarantor Subsidiary” means each
Restricted Subsidiary that is a party hereto as a
“Guarantor” and a party to the Pledge and Security
Agreement as a “Grantor” thereunder.

 

 

 

21

 

 

 

 

“Guarantors” means each Guarantor
Subsidiary; provided that the term
“Guarantors” shall also include the Borrower solely for
purposes of the Guarantee of Obligations of the other Credit
Parties pursuant to Section 7.

 

“Hazardous Materials” means any
petroleum or petroleum products, radioactive materials or wastes,
asbestos in any form, polychlorinated biphenyls, hazardous or toxic
substances and any other chemical, material, waste or substance
that is prohibited, limited or regulated, or that could result in
liability, under any Environmental Law.

 

“Hedge Agreement” means any
agreement with respect to any swap, forward, future or derivative
transaction, or any option or similar agreement, involving, or
settled by reference to, one or more rates, currencies,
commodities, prices of equity or debt securities or instruments, or
economic, financial or pricing indices or measures of economic,
financial or pricing risk or value, or any similar transaction or
combination of the foregoing transactions; provided that no phantom stock,
stock option, stock appreciation right or similar plan or right
providing for payments only on account of services provided by
current or former directors, officers, employees or consultants of
the Borrower or the Subsidiaries shall be a Hedge
Agreement.

 

“Highest Lawful Rate” means the
maximum lawful interest rate, if any, that at any time or from time
to time may be contracted for, charged, or received under the laws
applicable to any Lender that are presently in effect or, to the
extent allowed by law, under such applicable laws that may
hereafter be in effect and that allow a higher maximum nonusurious
interest rate than applicable laws now allow.

 

“Historical Borrower Financial
Statements” means the audited consolidated balance
sheets and related consolidated statements of operations, changes
in stockholders’ equity and cash flows, in each case prepared
in conformity with GAAP, of the Borrower and its consolidated
Subsidiaries for the Fiscal Year ended December 31, 2017 and the
unaudited quarterly consolidated balance sheets and related
consolidated statements of operations, changes in
stockholders’ equity and cash flows, in each case prepared in
conformity with GAAP, of the Borrower and its consolidated
Subsidiaries for the fiscal quarters ended March 31, 2018, June 30,
2018 and September 30, 2018.

 

“Holcombe Preferred Stock” means
the preferred shares of the Borrower, designated as Series D
Cumulative Preferred Stock, par value $0.01 per share, issued and
sold on May 4, 2018 by the Borrower to Holcombe T. Green, Jr. (or
an entity majority-owned and Controlled by Holcombe T. Green, Jr.),
for gross cash proceeds of $14,700,000.

 

“incur” means to create, incur,
assume or, in the case of any Indebtedness, otherwise become liable
with respect to such Indebtedness.

 

 

 

22

 

 

 

 

“Indebtedness” means, with respect
to any Person, without duplication, (a) all obligations of
such Person for borrowed money, (b) all obligations of such
Person evidenced by bonds, debentures, notes or similar
instruments, (c) all obligations of such Person under
conditional sale or other title retention agreements relating to
property acquired by such Person (excluding trade accounts payable
incurred in the ordinary course of business), (d) all
obligations of such Person in respect of deferred purchase price of
property or services (excluding (i) current accounts payable
incurred in the ordinary course of business, (ii) deferred
compensation payable to directors, officers, employees or
consultants of such Person or any of its Subsidiaries and
(iii) purchase price adjustments, earnouts, deferred
compensation or other similar arrangements incurred in connection
with any Acquisition, except to the extent that the amount payable
pursuant to such purchase price adjustment, earnout, deferred
compensation or similar arrangement is reflected on such
Person’s consolidated balance sheet in conformity with GAAP),
(e) all Capital Lease Obligations of such Person, (f) the
maximum aggregate amount (determined after giving effect to any
prior drawings or reductions that have been reimbursed) of all
letters of credit and letters of guaranty in respect of which such
Person is an account party, (g) the principal component of all
obligations, contingent or otherwise, of such Person in respect of
bankers’ acceptances, (h) all Indebtedness of others
secured by any Lien on any property owned or acquired by such
Person, whether or not the Indebtedness secured thereby has been
assumed by such Person, valued, as of any date of determination, at
the lesser of (i) the principal amount of such Indebtedness and
(ii) the fair value of such property (as determined in good faith
by such Person), (i) all Guarantees by such Person of
Indebtedness of others and (j) all Disqualified Equity Interests in
such Person, valued, as of the date of determination, at the
greater of (i) the maximum aggregate amount that would be
payable upon maturity, redemption, repayment or repurchase thereof
(or of Disqualified Equity Interests or Indebtedness into which
such Disqualified Equity Interests are convertible or exchangeable)
and (ii) the maximum liquidation preference of such Disqualified
Equity Interests. The Indebtedness of any Person shall include the
Indebtedness of any other Person (including any partnership in
which such Person is a general partner) to the extent such Person
is liable therefor as a result of such Person’s ownership
interest in or other relationship with such other Person, except to
the extent the terms of such Indebtedness provide that such Person
is not liable therefor.

 

“Indemnified Liabilities” means any
and all liabilities (including Environmental Liabilities),
obligations, losses, damages (including natural resource damages),
penalties, claims, actions, judgments, suits, costs (including the
costs of any investigation, study, sampling, testing, abatement,
cleanup, removal, remediation or other response action necessary to
remove, remediate, clean up or abate any Hazardous Materials),
expenses and disbursements of any kind or nature whatsoever
(including the reasonable out-of-pocket fees, expenses and other
charges of counsel and consultants for the Indemnitees in
connection with any investigative, administrative or judicial
proceeding or hearing commenced or threatened by any Person
(including by any Credit Party or any Affiliate thereof), whether
or not any such Indemnitee shall be designated as a party or a
potential party thereto (but limited, in the case of any one such
proceeding or hearing, to fees, expenses and other charges of (i)
one firm of primary counsel for the Agents and their Related
Parties (taken as a whole) and one firm of primary counsel for the
other Indemnitees (taken as a whole) and (ii) one firm of
regulatory counsel, and, if reasonably necessary, one firm of local
counsel in each applicable jurisdiction for all the Indemnitees
(and, if any Indemnitee shall have advised the Borrower that there
is an actual or perceived conflict of interest, one additional firm
of primary counsel, one additional firm of regulatory counsel and,
if reasonably necessary, one additional firm of local counsel in
each applicable jurisdiction for each group of affected Indemnitees
that are similarly situated (in each case, excluding allocated
costs of in-house counsel)), and any fees or expenses incurred by
the Indemnitees in enforcing this indemnity), whether direct,
indirect, special, consequential or otherwise and whether based on
any federal, state or foreign laws, statutes, rules or regulations
(including securities and commercial laws, statutes, rules or
regulations and Environmental Laws), on common law or equitable
causes of action or on contract or otherwise, that may be imposed
on, incurred by or asserted against any such Indemnitee, in any
manner relating to, resulting from or arising out of (a) this
Agreement or the other Credit Documents or the transactions
contemplated hereby or thereby (including the Lenders’
agreement to make Credit Extensions, the syndication of the credit
facilities provided for herein or the use or intended use of the
proceeds thereof, the execution, delivery and administration of
this Agreement and the other Credit Documents, any amendments,
waivers or consents with respect to any provision of this Agreement
or any of the other Credit Documents, or any enforcement of any of
the Credit Documents (including any sale of, collection from, or
other realization upon any of the Collateral or the enforcement of
the Obligations Guarantee)), (b) any commitment letter, engagement
letter, fee letter or other letter or agreement delivered by any
Agent or any Lender to the Borrower or any of its Affiliates in
connection with the arrangement of the credit facilities provided
for herein or in connection with the transactions contemplated by
this Agreement or (c) any actual or alleged presence or
Release of Hazardous Materials on, at or under or from any property
currently or formerly owned, leased or operated by the Borrower or
any Affiliate or any Environmental Liability related in any way to
the Borrower or any Affiliate.

 

 

 

23

 

 

 

 

“Indemnified Taxes” means (a)
Taxes, other than Excluded Taxes, imposed on or with respect to any
payment made by or on account of any obligation of any Credit Party
under any Credit Document and (b) to the extent not otherwise
described in clause (a), Other Taxes.

 

“Indemnitee” as defined in Section
10.3.

 

“Initial Commitment” means, with
respect to each Lender, the commitment of such Lender to make an
Initial Loan to the Borrower in an aggregate principal amount not
to exceed the amount set forth opposite such Lender’s name on
the Commitment Schedule, as such amount may be adjusted from time
to time in accordance with this Agreement. The aggregate amount of
the Lenders’ Initial Commitments on the Closing Date is
$20,000,000.

 

“Initial DIP Budget” means the DIP
Budget delivered on or prior to the Closing Date.

 

“Initial Loan” as defined in
Section ‎2.1.

 

“Intellectual Property” as defined
in the Pledge and Security Agreement.

 

“Intellectual Property Collateral”
as defined in the Pledge and Security Agreement.

 

“Intellectual Property Security
Agreements” as defined in the Pledge and Security
Agreement.

 

“Intercompany Indebtedness Subordination
Agreement” means an Intercompany Indebtedness
Subordination Agreement substantially in the form of
Exhibit G.

 

“Intercompany Note” means a
promissory note substantially in the form of
Exhibit H.

 

“Interest Payment Date” means (a)
with respect to any Base Rate Loan, the last Business Day of each
calendar month, commencing on the first such date to occur after
the Closing Date and (b) with respect to any Eurodollar Rate Loan,
the last day of each Interest Period applicable to such
Loan.

 

“Interest Period” means, with
respect to any Eurodollar Rate Borrowing, the period commencing on
the date of such Borrowing and ending on the numerically
corresponding day in the calendar month that is one month (or, such
longer period thereafter as shall have been consented to by each
Lender and notified in writing by each Lender to the Administrative
Agent), as selected by the Borrower in the applicable Funding
Notice or Conversion/Continuation Notice; provided that (a) if an
Interest Period would otherwise end on a day that is not a Business
Day, such Interest Period shall be extended to the next succeeding
Business Day unless no succeeding Business Day occurs in such
month, in which case such Interest Period shall end on the
immediately preceding Business Day, (b) any Interest Period
that commences on the last Business Day of a calendar month (or on
a day for which there is no numerically corresponding day in the
calendar month at the end of such Interest Period) shall, subject
to clause (c) below, end on the last Business Day of the last
calendar month of such Interest Period and (c) notwithstanding
anything to the contrary in this Agreement, no Interest Period for
a Eurodollar Rate Borrowing may extend beyond the Stated Maturity
Date. For purposes hereof, the date of a Eurodollar Rate Borrowing
shall initially be the date on which such Borrowing is made and
thereafter shall be the effective date of the most recent
conversion or continuation of such Borrowing.

 

“Interest Rate Determination Date”
means, with respect to any Interest Period, the date that is two
Business Days prior to the first day of such Interest
Period.

 

 

 

24

 

 

 

 

“Interim Order” means an order of
the Bankruptcy Court, in the form set forth in Exhibit K,
authorizing on an interim basis, among other things, the DIP Term
Facility and the Transactions contemplated by this Agreement, with
only such modifications as are satisfactory to the Borrower and the
Requisite Lenders (and with respect to any provision that affects
the rights or duties of any Agent, the Administrative Agent) in
their sole discretion.

 

“Interim Order Entry Date” means
the date on which the Interim Order is entered by the Bankruptcy
Court.

 

“Internal Revenue Code” means the
Internal Revenue Code of 1986.

 

“Investment” means, with respect to
a specified Person, any Equity Interests, evidences of Indebtedness
or other Securities (including any option, warrant or other right
to acquire any of the foregoing) of, or any capital contribution or
loans or advances (other than trade advances made in the ordinary
course of business that would be recorded as accounts receivable on
the balance sheet of the specified Person prepared in conformity
with GAAP) to, Guarantees of any Indebtedness of (including any
such Guarantees arising as a result of the specified Person being a
co-maker of any note or other instrument or a joint and several
co-applicant with respect to any letter of credit or letter of
guaranty), or any other investments in (including any investment in
the form of transfer of property for consideration that is less
than the fair value thereof (as determined reasonably and in good
faith by the chief financial officer of the Borrower)), any other
Person that are held or made by the specified Person. The amount,
as of any date of determination, of (a) any Investment in the form
of a loan or an advance shall be the aggregate principal amount
thereof made on or prior to such date of determination, minus the
amount, as of such date of determination, of any Returns with
respect thereto, but without any adjustment for write-downs or
write-offs (including as a result of forgiveness of any portion
thereof) with respect to such loan or advance after the date
thereof, (b) any Investment in the form of a Guarantee shall be
determined in accordance with the definition of the term
“Guarantee”, (c) any Investment in the form of a
purchase or other acquisition for value of any Equity Interests,
evidences of Indebtedness or other Securities of any Person shall
be the fair value (as determined reasonably and in good faith by
the chief financial officer of the Borrower) of the consideration
therefor (including any Indebtedness assumed in connection
therewith), plus
the fair value (as so determined) of all additions, as of such date
of determination, thereto, and minus the amount, as of such
date of determination, of any Returns with respect thereto, but
without any other adjustment for increases or decreases in value
of, or write-ups, write-downs or write-offs with respect to, such
Investment after the time of such Investment, (d) any Investment
(other than any Investment referred to in clause (a), (b) or (c)
above) in the form of a transfer of Equity Interests or other
property by the investor to the investee, including any such
transfer in the form of a capital contribution, shall be the fair
value (as determined reasonably and in good faith by the chief
financial officer of the Borrower) of such Equity Interests or
other property as of the time of such transfer (less, in the case
of any investment in the form of transfer of property for
consideration that is less than the fair value thereof, the fair
value (as so determined) of such consideration as of the time of
the transfer), minus the amount, as of such
date of determination, of any Returns with respect thereto, but
without any other adjustment for increases or decreases in value
of, or write-ups, write-downs or write-offs with respect to, such
Investment after the time of such transfer, and (e) any Investment
(other than any Investment referred to in clause (a), (b), (c) or
(d) above) in any Person resulting from the issuance by such Person
of its Equity Interests to the investor shall be the fair value (as
determined reasonably and in good faith by the chief financial
officer of the Borrower) of such Equity Interests at the time of
the issuance thereof.

 

“IRS” means the United States
Internal Revenue Service.

 

“Leasehold Property” means, as of
any time of determination, any leasehold interest then owned by any
Credit Party in any leased real property.

 

 

 

25

 

 

 

 

“Lender” means each Person listed
on the signature pages hereto as a Lender, and any other Person
that shall have become a party hereto in accordance with the terms
hereof pursuant to an Assignment Agreement, other than any such
Person that shall have ceased to be a party hereto pursuant to an
Assignment Agreement.

 

“License” means any license,
permit, consent, certificate, franchise approval, waiver,
registration or authorization granted or issued by the FCC, any
State PUC or any other Governmental Authority with authority to
regulate the provision of telecommunications services.

 

“Lien” means any lien, mortgage,
pledge, assignment, security interest, hypothecation, charge or
encumbrance of any kind (including any conditional sale or other
title retention agreement, and any lease or license in the nature
thereof) and any option, trust or other preferential arrangement
having the practical effect of any of the foregoing.

 

“Lingo” as defined in Section
6.16.

 

“Lingo Report” means a report, in a
form reasonably satisfactory to the Requisite Lenders or their
advisors, setting forth in reasonable detail the outstanding
receivables from Lingo owed to the Borrower and its Restricted
Subsidiaries and payments made by the Borrower or any Restricted
Subsidiary to Lingo.

 

“Loan” means a Term
Loan.

 

“Margin Stock” as defined in
Regulation U.

 

“Material Adverse Effect” means a
material adverse effect on (a) the business, results of operations,
assets or financial condition of the Borrower and the Restricted
Subsidiaries, taken as a whole, (b) the ability of the Credit
Parties to fully and timely perform their obligations under the
Credit Documents, taken as a whole, (c) the legality, validity,
binding effect or enforceability against the Credit Parties of any
Credit Documents to which they are party or (d) the rights,
remedies and benefits available to, or conferred upon, any Agent,
any Lender or any Secured Party under the Credit Documents, taken
as a whole; provided, however, that “Material
Adverse Effect” shall expressly exclude (i) any matters
publicly disclosed in the most recent 10-K or subsequent 10-Qs or
8-Ks filed with the SEC prior to the Petition Date, (ii) any
matters disclosed, in each case on or prior to the Petition Date,
in writing to the Lenders in connection herewith (including the
Schedules or Exhibits hereto) or in connection with any other
Credit Document, (iii) any matters disclosed in any “first
day” pleadings or declarations, and (iv) the effect of filing
the Cases, the events and conditions related to, resulting from
and/or leading up thereto and the effects thereon and any action
required to be taken under the Credit Documents or the
Orders.

 

“Material Indebtedness” means
Indebtedness (other than the Loans and Guarantees under the Credit
Documents), or obligations in respect of one or more Hedge
Agreements, of any one or more of the Borrower and the Restricted
Subsidiaries in an aggregate principal amount of $500,000 or more.
In the case of any Material Indebtedness that is a Guarantee of any
other Indebtedness, each reference to “Material
Indebtedness” shall be deemed to include a reference to such
Guaranteed Indebtedness. For purposes of determining Material
Indebtedness, the “principal amount” of the obligations
of the Borrower or any Restricted Subsidiary in respect of any
Hedge Agreement at any time shall be the maximum aggregate amount
(giving effect to any netting agreements) that the Borrower or such
Restricted Subsidiary would be required to pay if such Hedge
Agreement were terminated at such time.

 

“Material Real Estate Asset” means
each Real Estate Asset owned in fee by a Credit Party that,
together with the improvements thereon and all contiguous and all
related parcels and the improvements thereon forming part of such
Real Estate Asset, has a fair value, as of the Closing Date or as
of the time of the acquisition thereof, of greater than $1,000,000
in the aggregate.

 

 

 

26

 

 

 

 

“Monthly Recurring Revenue” shall
mean the monthly recurring revenue of the Borrower and its
Subsidiaries, calculated in a manner reasonably acceptable to the
Requisite Lenders or their advisors and consistent with the
projections delivered pursuant to Section 3.1(l)(ii) in the form
set forth on Exhibit C.

 

“Monthly Recurring Revenue Variance
Percentage” shall mean (i) for the fiscal months
ending June 30, 2019, July 31, 2019 and August 31, 2019: 3.0%, (ii)
for the fiscal months ending September 30, 2019 and October 31,
2019: 4.0% and (iii) for the fiscal months ending November 30, 2019
and December 31, 2019: 4.5%.

 

“Moody’s” means Moody’s
Investors Service, Inc., or any successor to its rating agency
business.

 

“Mortgage” means a mortgage, deed
of trust, assignment of leases and rents or other security document
granting a Lien on any Material Real Estate Asset in favor of the
Collateral Agent, for the benefit of the Secured Parties, as
security for the Obligations. Each Mortgage shall be in form and
substance reasonably satisfactory to the Collateral Agent and the
Requisite Lenders.

 

“Multiemployer Plan” means any
Employee Benefit Plan that is a “multiemployer plan” as
defined in Section 3(37) of ERISA.

 

“Net Proceeds” means, with respect
to any event, (a) the Cash (which term, for purposes of this
definition, shall include Cash Equivalents) proceeds received in
respect of such event, including any Cash received in respect of
any noncash proceeds, but only as and when received, net of (b) the
sum, without duplication, of (i) all reasonable fees and
out-of-pocket expenses (including any underwriting discounts and
commissions) paid in connection with such event by the Borrower or
any Restricted Subsidiary to Persons that are not Affiliates of the
Borrower or any Restricted Subsidiary, (ii) in the case of any
Prepayment Event described in clauses (a) or (b) of the definition
of “Prepayment Event”, (A) the amount of all
payments (including in respect of principal, accrued interest and
premiums) required to be made by the Borrower and the Restricted
Subsidiaries as a result of such event to repay Indebtedness of the
Borrower or the Restricted Subsidiaries of the types referred to in
clauses (a) through (e) of the definition of
“Indebtedness” (other than Loans and any Indebtedness
owed to the Borrower or any Subsidiary) secured by the assets
subject thereto or, in the case of an “Asset Sale” by
any Canadian Subsidiary, of any secured intercompany Indebtedness
owed by a Canadian Subsidiary to a Debtor, (B) the amount of
all Taxes paid (or reasonably estimated to be payable) by the
Borrower or any Restricted Subsidiary, and the amount of any
reserves established by the Borrower or any Restricted Subsidiary
in conformity with GAAP to fund purchase price adjustment,
indemnification and similar contingent liabilities reasonably
estimated to be payable that are directly attributable to the
occurrence of such event and (C) the repayment of customer deposits
required upon such Prepayment Event described in clauses (a) or (b)
of the definition of “Prepayment Event” and (iii) in
the case of any proceeds from any Prepayment Event described in
clauses (a) or (b) of the definition of “Prepayment
Event” affecting the assets of a Restricted Subsidiary that
is not a wholly owned Subsidiary, the portion of such proceeds
received by such Restricted Subsidiary attributable to the
noncontrolling interests in such Restricted Subsidiary, in each
case as determined reasonably and in good faith by the chief
financial officer of the Borrower. For purposes of this definition,
in the event any contingent liability reserve established with
respect to any event as described in clause (b)(ii)(B) above
shall be reduced, the amount of such reduction shall, except to the
extent such reduction is made as a result of a payment having been
made in respect of the contingent liabilities for which such
reserve has been established, be deemed to be receipt, on the date
of such reduction, of Cash proceeds in respect of such
event.

 

 

 

27

 

 

 

 

“New-Money Loans” means the Initial
Loans and the Delayed Draw Loans.

 

“Note” means a promissory note
issued to any Lender pursuant to Section 2.6(c).

 

“Obligations” means all obligations
of every nature of each Credit Party under this Agreement and the
other Credit Documents, whether for principal, interest (including
default interest accruing pursuant to Section 2.9 and interest
(including such default interest) that would continue to accrue
pursuant to the Credit Documents on any such obligation after the
commencement of any proceeding under the Debtor Relief Laws with
respect to any Credit Party, whether or not such interest is
allowed or allowable against such Credit Party in any such
proceeding), fees (including prepayment fees), expenses,
indemnification or otherwise.

 

“Obligations Guarantee” means the
Guarantee of the Obligations created under
Section 7.

 

“OFAC” means the United States
Treasury Department Office of Foreign Assets Control.

 

“OID” as defined in Section
2.10(a).

 

“Orders” means the Interim Order
and the Final Order, as applicable, in each case upon entry thereof
by the Bankruptcy Court.

 

“Organizational Documents” means
(a) with respect to any corporation or company, its certificate or
articles of incorporation, organization or association, as amended,
and its bylaws, as amended, (b) with respect to any limited
partnership, its certificate or declaration of limited partnership,
as amended, and its partnership agreement, as amended, (c) with
respect to any general partnership, its partnership agreement, as
amended, and (d) with respect to any limited liability company, its
certificate of formation or articles of organization, as amended,
and its operating agreement, as amended. In the event any term or
condition of this Agreement or any other Credit Document requires
any Organizational Document to be certified by a secretary of state
or similar governmental official, the reference to any such
“Organizational Document” shall only be to a document
of a type customarily certified by such governmental
official.

 

“Other Connection Taxes” means,
with respect to any Recipient, Taxes imposed as a result of a
present or former connection between such Recipient and the
jurisdiction imposing such Tax (other than connections arising from
such Recipient having executed, delivered, become a party to,
performed its obligations under, received payments under, received
or perfected a security interest under, engaged in any other
transaction pursuant to or enforced any Credit Document, or sold or
assigned an interest in any Loan or Credit Document).

 

“Other Taxes” means any and all present or
future stamp, court or documentary, intangible, recording, filing
or similar Taxes that arise from any payment made under, from the
execution, delivery, performance, enforcement or registration of,
from the receipt or perfection of a security interest under, or
otherwise with respect to, this Agreement or any other Credit
Document, except any such Taxes that are Other Connection Taxes
imposed with respect to an assignment (other than an assignment
made pursuant to Section 2.22).

 

“Participant Register” as defined
in Section 10.6(g).

 

“PATRIOT Act” means the Uniting and
Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act (Title III of Pub. L.
107-56).

 

 

 

28

 

 

 

 

“PBGC” means the Pension Benefit
Guaranty Corporation.

 

“Pension Plan” means any Employee
Benefit Plan, other than a Multiemployer Plan, that is subject to
Section 412 of the Internal Revenue Code or Section 302 of
ERISA.

 

“Permitted Encumbrances”
means:

 

(a)  Liens
imposed by law for Taxes arising Post-Petition that are not overdue
by more than 30 days or are being contested in compliance with
Section 5.3, if adequate reserves with respect thereto are
maintained by the applicable Person in conformity with
GAAP;

 

(b)  carriers’,
warehousemen’s, mechanics’, materialmen’s,
repairmen’s and other like Liens imposed by law (other than
any Lien imposed pursuant to Section 430(k) of the Internal Revenue
Code or Section 303(k) of ERISA), arising in the ordinary course of
business and securing obligations that are not overdue by more than
60 days or are being contested in good faith by appropriate
proceedings promptly and diligently conducted, if adequate reserves
with respect thereto are maintained by the applicable Person in
conformity with GAAP;

 

(c)  subject
to the Orders and the terms thereof, pledges and deposits made (i)
in the ordinary course of business in compliance with
workers’ compensation, unemployment insurance and other
social security laws (other than any Lien imposed pursuant to
Section 430(k) of the Internal Revenue Code or Section 303(k) of
ERISA) and (ii) in respect of letters of credit, bank guarantees or
similar instruments issued for the account of the Borrower or any
Restricted Subsidiary in the ordinary course of business supporting
obligations of the type set forth in clause (i) above;

 

(d)  pledges
and deposits made (i) in the ordinary course of business to secure
the performance of bids, trade contracts (other than for payment of
Indebtedness), leases (other than capital leases), statutory
obligations (other than any Lien imposed pursuant to Section 430(k)
of the Internal Revenue Code or Section 303(k) of ERISA), public
utility services provided to the Borrower or a Restricted
Subsidiary, surety, litigation and appeal bonds, performance bonds
and other obligations of a like nature and (ii) in respect of
letters of credit, bank guarantees or similar instruments issued
Post-Petition for the account of the Borrower or any Restricted
Subsidiary in the ordinary course of business supporting
obligations of the type set forth in clause (i) above;

 

(e)  judgment
liens in respect of judgments after the Petition Date that do not
constitute an Event of Default under Section 8.1(h);

 

(f)  easements,
zoning restrictions, rights-of-way and similar encumbrances on real
property imposed by law or arising in the ordinary course of
business that do not secure any monetary obligations and do not
materially detract from the value of the affected property or
interfere with the ordinary conduct of business of the Borrower and
the Restricted Subsidiaries, taken as a whole;

 

(g)  any
zoning or similar law or right reserved to or vested in any
Governmental Authority to control or regulate the use of any real
property that is not violated by the current use and operation of
the affected real property;

 

(h)  ground
leases in respect of real property on which facilities owned or
leased by the Borrower or any Restricted Subsidiary are
located;

 

 

 

29

 

 

 

 

(i)  Liens
of a collecting bank arising Post-Petition in the ordinary course
of business under Section 4-208 of the Uniform Commercial Code in
effect in the relevant jurisdiction covering only the items being
collected upon;

 

(j)
banker’s liens, rights of set-off or similar rights and
remedies as to deposit accounts or other funds maintained with
depository institutions arising Post-Petition; provided that such deposit
accounts or funds are not established or deposited for the purpose
of providing collateral for any Indebtedness and are not subject to
restrictions on access by the Borrower or any Restricted Subsidiary
in excess of those required by applicable banking
regulations;

 

(k)  Liens
filed prior to the Petition Date arising by virtue of precautionary
UCC financing statement filings (or similar filings under
applicable law) regarding operating leases entered into by the
Borrower and the Restricted Subsidiaries in the ordinary course of
business;

 

(l)  Liens
representing any interest or title of a licensor, lessor or
sublicensor or sublessor, or a licensee, lessee or sublicensee or
sublessee, in the property subject to any lease (other than any
capital lease), license or sublicense or concession agreement
permitted by this Agreement;

 

(m)  Liens
in favor of customs and revenue authorities arising as a matter of
law to secure payment of customs duties arising Post-Petition in
connection with the importation of goods;

 

(n)  deposits
of Cash with the owner or lessor of premises leased and operated by
the Borrower or any Restricted Subsidiary to secure the performance
of its obligations under the lease for such premises, in each case
in the ordinary course of business and consistent with the Approved
Budget;

 

(o)  Liens
that are contractual rights of set-off arising Post-Petition;
and

 

(p)  Liens
on Cash and Cash Equivalents securing obligations in respect of
Hedge Agreements permitted under Section 6.12, in the ordinary
course of business and consistent with the Approved
Budget;

 

provided that the term “Permitted Encumbrances”
shall not include any Lien securing Indebtedness, other than Liens
referred to in clauses (c) and (d) above securing letters of
credit, bank guarantees and similar instruments.

 

“Permitted Holders” means (a)
Holcombe T. Green, Jr., R. Kirby Godsey, Holcombe Green, III,
Marvin S. Rosen and Matthew D. Rosen and their respective heirs,
beneficiaries, trusts, estates and controlled Affiliates
(including, for so long as such Person constitutes such a
controlled Affiliate, BCHI Holdings, LLC, a Georgia limited
liability company) and (b) any employee benefit plan of the
Borrower or any Subsidiary, or any Person acting in its capacity as
trustee, agent or other fiduciary or administrator of any such
plan.

 

“Permitted Lien” means any Lien
permitted by Section 6.2.

 

“Person” means any natural person,
corporation, limited partnership, general partnership, limited
liability company, limited liability partnership, joint stock
company, joint venture, association, company, trust, bank, trust
company, land trust, business trust or other organization, whether
or not a legal entity, and any Governmental Authority; provided
that any division of a limited liability company or allocation of
assets to a series of limited liability companies shall constitute
a separate “Person”.

 

 

 

30

 

 

 

 

“Petition Date” as defined in the
preamble hereto.

 

“Platform” means Debtdomain,
IntraLinks/IntraAgency, SyndTrak or another similar website or
other information platform.

 

“Pledge and Security Agreement”
means the Pledge and Security Agreement dated as of the date
hereof, among the Borrower, the other Credit Parties and the
Collateral Agent, substantially in the form of
Exhibit J.

 

“Post-Petition” means the time
period commencing immediately upon the filing of the
Cases.

 

“Prepayment Event” means (a) any
Asset Sale, (b) any casualty or other insured damage to, or any
taking under power of eminent domain or by condemnation or similar
proceeding of, any property or asset of the Borrower or any
Subsidiary having a book value or fair market value in excess of
$250,000, (c) the receipt of any Cash or Cash Equivalents by the
Borrower or any Subsidiary not in the ordinary course of business,
including without limitation (i) tax refunds, (ii) pension plan
reversions, (iii) proceeds of insurance (including key man life
insurance, but excluding Net Proceeds described in clause (b)
above), (iv) judgments, proceeds of settlements or other
consideration of any kind in connection with any cause of action,
(v) indemnity payments and (vi) any purchase price adjustment
received in connection with any purchase agreement to the extent
not needed to reimburse the Borrower or applicable Subsidiary for
any reasonable and customary out-of-pockets costs and expenses
previously incurred by the Borrower or applicable Subsidiary with
respect to which such purchase price adjustment was received, or
(d) the incurrence by the Borrower or any Subsidiary of any
Indebtedness, other than Indebtedness permitted by Section
6.1.

 

“Prime Rate” means the rate of
interest quoted in the print edition of The Wall Street Journal, Money Rates
Section as the Prime Rate (currently defined as the base rate on
corporate loans posted by at least 70% of the nation’s 10
largest banks), as in effect from time to time; provided that if The Wall Street Journal ceases to
publish for any reason such rate of interest, “Prime Rate” shall mean the prime
lending rate as set forth on the Bloomberg page PRIMBB Index (or
successor page) for such day (or such other service as determined
by the Administrative Agent from time to time for purposes of
providing quotations of prime lending interest rates). The Prime
Rate is a reference rate and does not necessarily represent the
lowest or best rate actually charged to any customer. Any Agent and
any Lender may make commercial loans or other loans at rates of
interest at, above or below the Prime Rate.

 

“Private Lenders” means Lenders
that wish to receive Private-Side Information.

 

“Private-Side Information” means
any information with respect to the Borrower and the Subsidiaries
that is not Public-Side Information.

 

“Pro Rata Share” means, with
respect to any Lender, at any time, the percentage obtained by
dividing (i) the Term Loan Exposure of such Lender at such
time by (ii) the aggregate Term Loan Exposure of all the
Lenders at such time.

 

“Projected Available Liquidity”
means, on any date, the amount of projected unrestricted Cash and
Cash Equivalents of the Debtors with respect to the applicable
period as of such date, as set forth in the liquidity forecast
delivered pursuant to Section 2.23(i).

 

“PTE” means a prohibited
transaction class exemption issued by the U.S. Department of Labor,
as any such exemption may be amended from time to
time.

 

 

 

31

 

 

 

 

“Public Lenders” means Lenders that
do not wish to receive Private-Side Information.

 

“Public-Side Information” means
information that is either (a) available to all holders of Traded
Securities of the Borrower or any Subsidiary or (b) non-public
information that is not material (for purposes of United States
federal, state or other applicable securities laws).

 

“Real Estate Asset” means any
interest (fee, leasehold or otherwise) owned by any Credit Party in
any real property.

 

“Recipient” means any Agent and any
Lender, as applicable.

 

“Register” as defined in
Section 2.6(b).

 

“Regulation D” means
Regulation D of the Board of Governors.

 

“Regulation T” means
Regulation T of the Board of Governors.

 

“Regulation U” means
Regulation U of the Board of Governors.

 

“Regulation X” means
Regulation X of the Board of Governors.

 

“Related Fund” means, with respect
to any Lender that is an investment fund, any other investment fund
that invests in commercial loans and that is managed or advised by
the same investment advisor as such Lender or by an Affiliate of
such investment advisor.

 

“Related Parties” means, with
respect to any Person, such Person’s Affiliates and the
directors, officers, partners, members, trustees, employees,
controlling persons, agents, administrators, managers,
representatives and advisors of such Person and of such
Person’s Affiliates.

 

“Release” means any release, spill,
emission, leaking, dumping, injection, pouring, deposit, disposal,
discharge, dispersal, leaching or migration into or through the
environment or from, under, within or upon any building, structure,
facility or fixture.

 

“Released DIP Party” as defined in
Section 2.24.

 

“Releasing Parties” as defined in
Section 2.24.

 

“Remedies Notice Period” as defined
in the Interim Order (and, when entered, the Final
Order).

 

“Requisite Lenders” means, at any
time, two or more Lenders (counting for purposes of this definition
Lenders that are Affiliates or are under common management as one
single Lender) having or holding Term Loan Exposure representing
more than 50% of the sum of the Term Loan Exposure of all the
Lenders at such time. For purposes of this definition, the amount
of Term Loan Exposure shall be determined by excluding the Term
Loan Exposure of any Defaulting Lender.

 

“Restricted Payment” means
(a) any dividend or other distribution, direct or indirect
(whether in Cash, Securities or other property), with respect to
any Equity Interests in the Borrower or any Restricted Subsidiary,
(b) any payment or distribution, direct or indirect (whether in
Cash, Securities or other property), including any sinking fund or
similar deposit, on account of any redemption, retirement,
purchase, acquisition, exchange, conversion, cancelation or
termination of, or any other return of capital with respect to, any
Equity Interests in the Borrower or any Restricted Subsidiary and
(c) other than permitted by Section 6.15(a) or the applicable
Order, any payment or other distribution, direct or indirect
(whether in Cash, Securities or other property) of or in respect of
principal of or interest or premium on any Indebtedness that arose
prior to the Petition Date, or any payment or other distribution
(whether in Cash, Securities or other property), including any
sinking fund or similar deposit, on account of the redemption,
retirement, purchase, acquisition, defeasance (including
in-substance or legal defeasance), exchange, conversion,
cancelation or termination of any such Indebtedness that arose
prior to the Petition Date.

 

 

 

32

 

 

 

 

“Restricted Subsidiary” means any
Subsidiary.

 

“Restructuring Support
Agreement” means that certain Restructuring
Support Agreement dated as of June [ ], 2019, executed and
delivered by the Credit Parties and the other parties thereto, as
such agreement may be amended, supplemented or otherwise modified
from time to time in accordance with the terms
thereof.

 

“Returns” means (a) with respect to
any Investment in the form of a loan or advance, the repayment to
the investor in Cash or Cash Equivalents of principal thereof and
(b) with respect to any other Investment, any return of capital
received by the investor in Cash or Cash Equivalents in respect of
such Investment.

 

“Roll-Up Loan” as defined in
Section ‎2.1.

 

“S&P” means S&P Global
Ratings, or any successor to its rating agency
business.

 

“Sale/Leaseback Transaction” means
an arrangement relating to property owned by the Borrower or any
Restricted Subsidiary whereby the Borrower or such Restricted
Subsidiary Disposes of such property to any Person and the Borrower
or any Restricted Subsidiary leases such property, or other
property that it intends to use for substantially the same purpose
or purposes as the property Disposed of, from such Person or its
Affiliates.

 

“Sanctioned Country” means, at any
time, a country, region or territory that is itself the subject or
target of any Sanctions (at the date of this Agreement, Crimea,
Cuba, Iran, North Korea and Syria).

 

“Sanctioned Person” means, at any
time, (a) any Person listed in any Sanctions-related list of
designated Persons maintained by the US Department of State, the US
Department of Treasury (including OFAC), the United Nations
Security Council, the European Union, any European Union member
state, Her Majesty’s Treasury of the United Kingdom or the
Department of Foreign Affairs, Trade and Development (Canada), (b)
any Person operating, organized or resident in a Sanctioned Country
or (c) any Person controlled or 50% or more owned by any such
Person or Persons described in clause (a) or (b)
above.

 

“Sanctions” as defined in
Section 4.21.

 

“Sanctions Laws” as defined in
Section 4.21.

 

“SEC” means the United States Securities
and Exchange Commission.

 

“Secured Parties” as defined in the
Pledge and Security Agreement.

 

“Securities” means any stock,
shares, partnership interests, voting trust certificates,
certificates of interest or participation in any profit-sharing
agreement or arrangement, options, warrants, bonds, debentures,
notes or other evidences of indebtedness, secured or unsecured,
convertible, subordinated or otherwise, or in general any
instruments commonly known as “securities” or any
certificates of interest, shares or participations in temporary or
interim certificates for the purchase or acquisition of, or any
right to subscribe to, purchase or acquire, any of the
foregoing.

 

 

 

33

 

 

 

 

“Securities Act” means the
Securities Act of 1933.

 

“Senior Permitted Liens” means
Liens described in clauses (b), (d), (p), (q) and (s) of Section
6.2, in each case that are required to be senior to the Obligations
pursuant to applicable law or the Contractual Obligations (to the
extent such contract and such requirement are entered into the
ordinary course of business) pursuant to which such Lien
arises.

 

 “State
PUC” means any Governmental Authority of any State
that exercises authority over intrastate telecommunications rates
or provision of telecommunications services or the ownership,
construction or operation of any intrastate network facility or
telecommunications systems or over Persons that own, construct or
operate an intrastate network facility or telecommunications
systems, in each case by reason of the nature or type of the
business subject to regulation and not pursuant to laws and
regulations of general applicability to Persons conducting business
in such state.

 

“Stated Maturity Date” means the
date that is four months after the Closing Date (or, if such date
is not a Business Day, the immediately preceding Business Day);
provided that such
date may be extended up to three times total over the life of this
facility by one calendar month from the then applicable Stated
Maturity Date by the Requisite Lenders in accordance with the terms
of Section ‎10.5(b)(ii).

 

“Subordinated Notes” means the
Existing Subordinated Notes and the Green Subordinated
Note.

 

“Subsidiary” means, with respect to
any Person (the “parent”) at any date, (a) any
Person the accounts of which would be consolidated with those of
the parent in the parent’s consolidated financial statements
if such financial statements were prepared in conformity with GAAP
as of such date and (b) any other Person  of which Equity
Interests representing more than 50% of the equity value or more
than 50% of the ordinary voting power or, in the case of a
partnership, more than 50% of the general partnership interests
are, as of such date, owned, controlled or held, by the parent or
one or more subsidiaries of the parent or by the parent and one or
more subsidiaries of the parent. Unless otherwise specified, all
references herein to Subsidiaries shall be deemed to refer to
Subsidiaries of the Borrower.

 

“Super Senior Secured Credit
Agreement” means the Super Senior Secured Credit
Agreement dated as of May 9, 2019, among the Borrower, the
guarantors named therein, the financial institutions named therein,
and Wilmington Trust, National Association, as administrative agent
and collateral agent, as amended, supplemented or otherwise
modified prior to the Petition Date.

 

“Super Senior Secured Term Loans”
shall mean the Term Loans under and as defined in the Super Senior
Secured Credit Agreement including, for the avoidance of doubt, the
Additional Term Loan (as defined in the Incremental Amendment and
Amendment No. 1 to the Super Senior Secured Credit Agreement, dated
as of May 28, 2019).

 

“Superpriority Claim” means any
administrative expense claim in the case of any Credit Party having
priority over any and all administrative expenses, diminution
claims and all other priority claims against the Debtors, subject
only to the Carve-Out, now existing or hereafter arising, of any
kind whatsoever, including, without limitation, all administrative
expenses of the kind specified in sections 503(b) and 507(b) of the
Bankruptcy Code, and over any and all administrative expenses or
other claims arising under sections 105, 326, 328, 330, 331, 365,
503(b), 506(c) (subject only to and effective upon entry of the
Final Order), 507(a), 507(b), 726, 1113 or 1114 of the Bankruptcy
Code.

 

 

 

34

 

 

 

 

“Supplemental Collateral
Questionnaire” means a certificate providing
additional information as may be required to create, perfect or
enforce any Liens on any Collateral in a form approved by the
Requisite Lenders, acting reasonably.

 

“Tax” means all present or future
taxes, levies, imposts, duties, deductions, withholdings (including
backup withholding), assessments, fees or other charges imposed by
any Governmental Authority, including any interest, additions to
tax or penalties applicable thereto.

 

“Telecommunications Supplier Payables
Report” means a report, in a form reasonably
satisfactory to the Requisite Lenders or their advisors, setting
forth in reasonable detail the payables aging by supplier of
telecommunication services to the Borrower and the other Credit
Parties, a going forward payment plan in respect of such payables
and the rationale for making payments to such
suppliers.

 

“Term Borrowing” means a Borrowing
comprised of Term Loans.

 

“Term Loan” means (i) an Initial
Loan made by a Lender to the Borrower pursuant to
Section 2.1(a)(i), (ii) a Delayed Draw Loan made by a Lender
to the Borrower pursuant to Section 2.1(a)(ii) and (iii) a
Roll-Up Loan.

 

“Term Loan Exposure” means, with
respect to any Lender at any time, the sum of (a) the Initial
Commitment and the Delayed Draw Commitment of such Lender at such
time and (b) the aggregate principal amount of the Term Loans of
such Lender outstanding at such time.

 

“Termination Date” means the
earliest of (a) the Stated Maturity Date, (b) the effective date of
any plan for the reorganization of the Borrower or any other Debtor
under Chapter 11 of the Bankruptcy Code, (c) the consummation of a
sale or other disposition of all or substantially all of the assets
of the Debtors under section 363 of the Bankruptcy Code, (d) the
date of acceleration of the Loans and the termination of unused
Commitments with respect to the DIP Term Facility in accordance
with the terms of this Agreement upon and during the continuance of
an Event of Default and (e) the date that is thirty-five (35) days
after the Petition Date (or such later date as may be agreed by the
Requisite Lenders), unless the Final Order Entry Date has occurred
on or prior to such date.

 

“Traded Securities” means any debt
or equity Securities issued pursuant to a public offering
registered under the Securities Act or Rule 144A offering or other
similar private placement.

 

“Transactions” means the execution
and delivery of this Agreement and the transactions contemplated
hereby and thereby and the payment of fees and expenses in
connection with the foregoing.

 

“Type” when used in reference to
any Loan or Borrowing, refers to whether the rate of interest on
such Loan, or on the Loans comprising such Borrowing, is determined
by reference to the Adjusted Eurodollar Rate or the Base
Rate.

 

“UCC” means the Uniform Commercial
Code (or any similar or equivalent legislation) as in effect from
time to time in any applicable jurisdiction.

 

“US Person” means any Person that
is a “United States Person” as defined in
Section 7701(a)(30) of the Internal Revenue Code and a
disregarded entity (for US federal income tax purposes) owned by
such Person.

 

 

 

35

 

 

 

 

“US Tax Compliance Certificate” as
defined in Section 2.19(g)(ii)(B)(3).

 

“wholly owned”, when used in
reference to a Subsidiary of any Person, means that all the Equity
Interests in such Subsidiary (other than directors’
qualifying shares and other nominal amounts of Equity Interests
that are required to be held by other Persons under applicable law)
are owned, beneficially and of record, by such Person, another
wholly owned Subsidiary of such Person or any combination
thereof.

 

“Wilmington Trust” means Wilmington
Trust, National Association.

 

“Withdrawal Date” as defined in
Section 2.23.

 

“Withdrawal Termination
Instruction” as defined in
Section 2.23.

 

“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.

 

1.2           Accounting
Terms. (a) Except as
otherwise expressly provided herein, all terms of an accounting or
financial nature used herein shall be construed in conformity with
GAAP as in effect from time to time; provided that (i) if the
Borrower, by notice to the Administrative Agent, shall request an
amendment to any provision hereof to eliminate the effect of any
change occurring after the date hereof in GAAP or in the
application thereof on the operation of such provision (or if the
Administrative Agent or the Requisite Lenders, by notice to the
Borrower, shall request an amendment to any provision hereof for
such purpose), regardless of whether any such notice is given
before or after such change in GAAP or in the application thereof,
then such provision shall be interpreted on the basis of GAAP as in
effect and applied immediately before such change shall have become
effective until such notice shall have been withdrawn or such
provision amended in accordance herewith and
(ii) notwithstanding any other provision contained herein, all
terms of an accounting or financial nature used herein shall be
construed, and all computations of amounts and ratios referred to
herein shall be made, (A) without giving effect to any election
under Financial Accounting Standards Board Accounting Standards
Codification 825 (or any other Accounting Standards Codification or
Financial Accounting Standard having a similar result or effect)
(and related interpretations) to value any Indebtedness or other
liabilities of the Borrower or any Subsidiary at “fair
value”, as defined therein, (B) without giving effect to
any treatment of Indebtedness in respect of convertible debt
instruments under Accounting Standards Codification 470-20 (or any
other Accounting Standards Codification or Financial Accounting
Standard having a similar result or effect) to value any such
Indebtedness in a reduced or bifurcated manner as described
therein, and such Indebtedness shall at all times be valued at the
full stated principal amount thereof, and (C) without giving
effect to any change to GAAP occurring after the date hereof as a
result of the adoption of any proposals set forth in the
Proposed Accounting Standards
Update, Leases (Topic 842), issued by the Financial
Accounting Standards Board on May 16, 2013, or any other proposals
issued by the Financial Accounting Standards Board in connection
therewith, in each case if such change would require treating any
lease (or similar arrangement conveying the right to use) as a
capital lease where such lease (or similar arrangement) was not
required to be so treated under GAAP as in effect on December 31,
2017.

 

1.3           Interpretation,
Etc.  
Any of
the terms defined herein may, unless the context otherwise
requires, be used in the singular or the plural, depending on the
reference. References herein to any Article, Section,
Schedule or Exhibit shall be to an Article or a Section of, or
a Schedule or an Exhibit to, this Agreement, unless otherwise
specifically provided. The words “include”,
“includes” and “including” shall be deemed
to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning
and effect as the word “shall”. The words
“asset” and “property” shall be construed
to have the same meaning and effect and to refer to any and all
real and personal, tangible and intangible assets and properties,
including Cash, Securities, accounts and contract rights. The word
“law” shall be construed as referring to all statutes,
rules, regulations, codes and other laws (including official
rulings and interpretations thereunder having the force of law or
with which affected Persons customarily comply), and all judgments,
orders, writs and decrees, of all Governmental Authorities. The
words “not otherwise applied”, and words of similar
import, when used with reference to any amount of Net Proceeds of
any issuance or sale of Equity Interests that is proposed to be
applied to any particular use, payment or transaction, shall be
construed to mean that such amount was not previously applied, or
is not simultaneously being applied, to any other use, payment or
transaction other than such particular use, payment or transaction.
Except as otherwise expressly provided herein and unless the
context requires otherwise, (a) any definition of or reference
to any agreement, instrument or other document (including this
Agreement and the other Credit Documents) shall be construed as
referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified (subject
to any restrictions on such amendments, supplements or
modifications set forth herein), (b) any definition of or reference
to any statute, rule or regulation shall be construed as referring
thereto as from time to time amended, supplemented or otherwise
modified (including by succession of comparable successor laws),
and all references to any statute shall be construed as referring
to all rules, regulations, rulings and official interpretations
promulgated or issued thereunder, (c) any reference herein to any
Person shall be construed to include such Person’s successors
and assigns (subject to any restrictions on assignment set forth
herein) and, in the case of any Governmental Authority or any
self-regulating entity, any other Governmental Authority or entity
that shall have succeeded to any or all functions thereof, and (d)
the words “herein”, “hereof” and
“hereunder”, and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any
particular provision hereof. Terms defined in the UCC as in effect
in the State of New York on the Closing Date and not otherwise
defined herein shall, unless the context otherwise indicates, have
the meanings provided by those definitions.

 

1.4           Classification
of Loans and Borrowings. For purposes of this Agreement,
Loans and Borrowings may be classified and referred to by Type
(e.g., a
“Eurodollar Rate Loan” or “Eurodollar Rate
Borrowing”).

 

 

 

36

 

 

SECTION
2.                                LOANS

 

2.1           Loans.
(a) Commitments.
Subject to the terms and conditions hereof and in the Orders, each
Lender agrees to (i) following entry of the Interim Order and the
satisfaction of the conditions to Borrowing set forth in Sections
3.1 and 3.3, to make a term loan to the Borrower in a single
Borrowing on the Closing Date in a principal amount in Dollars not
to exceed such Lender’s Initial Commitment (the
“Initial Loan”)
and (ii) following satisfaction of the conditions to Borrowing set
forth in Sections 3.2 and 3.3, to make an additional delayed draw
term loan to the Borrower in a single Borrowing on the Delayed Draw
Borrowing Date (the “Delayed
Draw Loans”) in an aggregate principal amount not to
exceed such Lender’s Delayed Draw Commitment. Following the
making of the Initial Loan, the Initial Commitment of such Lender
shall terminate, and following the making of the Delayed Draw
Loans, the Delayed Draw Commitment of such Lender shall terminate.
To the extent not terminated earlier, each Lender’s Delayed
Draw Commitment shall terminate immediately and without further
action on the date that is five (5) Business Days following the
Final Order Entry Date. Once funded, each Initial Loan and each
Delayed Draw Loan shall be a “Loan”, “New-Money
Loan” and a “Term Loan” for all purposes under
this Agreement and the other Credit Documents. The Administrative
Agent, the Lenders and the Credit Parties each acknowledge and
agree that (i) all Super Senior Secured Term Loans outstanding on
the Final Order Entry Date (immediately prior to the entry of the
Final Order) shall be deemed fully borrowed and funded hereunder on
the Final Order Entry Date concurrently with the entry of the Final
Order (the “Roll-Up
Loans”) (without any notice or request by the
Borrower) in accordance with the terms of the Final Order, (ii) on
the Final Order Entry Date concurrently with the entry of the Final
Order, a Roll-Up Loan shall be deemed funded by each Lender in the
exact same principal amount equal to the aggregate outstanding
principal amount of the Super Senior Secured Term Loans held by
such Lender on the Final Order Entry Date (immediately prior to the
entry of the Final Order) and (iii) the aggregate outstanding
principal amount of the Super Senior Secured Term Loans shall be
automatically substituted and exchanged for (and deemed prepaid by)
the Roll-Up Loans deemed made hereunder (and the parties hereto
hereby agree that the Administrative Agent and the Administrative
Agent (as defined in the Super Senior Secured Credit Agreement) may
each conclusively rely on the provisions of this Section 2.1(a) in
adjusting the Register and the Register (as defined in the Super
Senior Secured Credit Agreement) to reflect (x) the cancellation of
the aggregate outstanding principal amount of the Super Senior
Secured Term Loans and (y) the Roll-Up Loans to be received by the
Lenders upon entry of the Final Order); provided, that notwithstanding
the foregoing, (x) no lender under the Super Senior Secured Credit
Agreement shall receive its portion of the Roll-Up Loans hereunder
(and the Super Senior Secured Term Loans of such lender shall not
be deemed exchanged for Roll-Up Loans hereunder) unless such
lender, to the extent such lender is not then already a Lender
hereunder, has, on or prior to the Final Order Entry Date, executed
and delivered to the Administrative Agent a joinder to this
Agreement in form and substance reasonably satisfactory to the
Administrative Agent and (y) unless an appropriate Assignment
Agreement (as defined in the Super Senior Secured Credit Agreement)
has become effective prior to the Final Order Entry Date between
any lender under the Super Senior Secured Credit Agreement and an
assignee thereof who is intended to receive its Roll-Up Loans
hereunder, only the lenders listed in the Register (as defined in
the Super Senior Secured Credit Agreement) as of the Final Order
Entry Date will receive Roll-Up Loans hereunder (subject to clause
(x) of this proviso). Notwithstanding anything to the contrary
contained herein, (i) for the period commencing on the Final Order
Entry Date, the Roll-Up Loans shall initially accrue interest
hereunder at the same exact rate as was applicable to the Super
Senior Secured Term Loans being exchanged for Roll-Up Loans
hereunder as in effect immediately prior to the Final Order Entry
Date (and to the extent any of the Super Senior Secured Term Loans
were Eurodollar Rate Loans (as defined in the Super Senior Secured
Credit Agreement), the Interest Period initially applicable to such
Roll-Up Loans shall end on the same date as the Interest Period (as
defined in the Super Senior Secured Credit Agreement) applicable to
such Super Senior Secured Term Loans) and (ii) on the first
Interest Payment Date applicable to each Roll-Up Loan, in addition
to paying all accrued and unpaid interest on such Roll-Up Loan for
the period commencing on the Final Order Entry Date, the Borrower
shall also pay to the Lenders all accrued and unpaid interest on
the Super Senior Secured Term Loan that was exchanged into such
Roll-Up Loan for the period ending on the Final Order Entry Date,
unless the applicable Order requires to make such payment to the
lenders under the Super Senior Secured Credit Agreement as an
adequate protection payment or otherwise. Amounts borrowed, deemed
borrowed or exchanged under this ‎Section 2.1‎(a) and repaid or prepaid may not be
reborrowed.

 

(b)           Borrowing
Mechanics for Loans.

 

(i)             Each
Term Loan shall be made as part of a Borrowing consisting of Term
Loans of the same Type made by the Lenders proportionately to their
applicable Pro Rata Shares. At the commencement of each Interest
Period for any Eurodollar Rate Term Borrowing, such Borrowing shall
be in an aggregate amount of $1,000,000 or an integral multiple of
$500,000 in excess of such amount (or such different amount that
constitutes (x) the full amount of the Term Loans outstanding or
(y) in the case of the Roll-Up Loans, the original aggregate
principal amount of the Roll-Up Loans); provided that a Eurodollar
Rate Term Borrowing that results from a continuation of an
outstanding Eurodollar Rate Term Borrowing may be in an aggregate
amount that is equal to the amount of such outstanding
Borrowing.

 

 

 

37

 

 

 

 

(ii)             To
request a Term Borrowing (other than a Borrowing of Roll-Up Loans),
the Borrower shall deliver to the Administrative Agent a fully
completed and executed Funding Notice (A) in the case of a
Eurodollar Rate Term Borrowing, not later than 2:00 p.m. (New
York City time) at least two Business Days in advance of the
proposed Credit Date (which shall be a Business Day) and (B) in the
case of a Base Rate Term Borrowing, not later than 11:00 a.m. (New
York City time) one Business Day prior to the proposed Credit Date
(which shall be a Business Day). Promptly upon receipt by the
Administrative Agent of a Funding Notice in accordance with this
paragraph, the Administrative Agent shall notify each Lender of the
details thereof and of the amount of such Lender’s Term Loan
to be made as part of the requested Term Borrowing. Following
delivery of a Funding Notice for a Eurodollar Rate Term Borrowing,
any failure to make such Borrowing shall be subject to
Section 2.17(c).

 

(iii)             Each
Lender shall make the principal amount of each Term Loan required
to be made by it hereunder on any Credit Date available to the
Administrative Agent not later than 12:00 p.m. (New York City
time) on such Credit Date by wire transfer of same day funds in
Dollars to the account of the Administrative Agent most recently
designated by it for such purpose by notice to the Lenders. The
Administrative Agent will make each such Term Loan available to the
Borrower by promptly remitting the amounts so received, in like
funds, to the account specified by the Borrower in the applicable
Funding Notice; provided that the proceeds of
the Delayed Draw Loans funded on the Delayed Draw Borrowing Date
shall be distributed to and deposited into the DIP Term Funding
Account.

 

2.2           [Reserved].

 

2.3           [Reserved].

 

2.4           Pro
Rata Shares; Obligations Several; Availability of
Funds. (a) All Loans on
the occasion of any Borrowing shall be made by the Lenders in
proportion to their applicable pro rata shares of the applicable
Borrowing (based on the applicable Commitments). The failure of any
Lender to make any Loan shall not relieve any other Lender of its
obligations hereunder; provided that the Commitments
and other obligations of the Lenders hereunder are several, and no
Lender shall be responsible for the failure of any other Lender to
make any Loan or to satisfy any of its other obligations
hereunder.

 

(b)           Unless
the Administrative Agent shall have been notified by a Lender prior
to the applicable Credit Date that such Lender does not intend to
make available to the Administrative Agent the amount of such
Lender’s Loan requested to be made on such Credit Date, the
Administrative Agent may assume that such Lender has made such
amount available to the Administrative Agent on such Credit Date
and may, in its sole discretion, but shall not be obligated to,
make available to the Borrower a corresponding amount. In such
event, if a Lender has not in fact made the amount of its Loan
available to the Administrative Agent, then such Lender and the
Borrower severally agree to pay to the Administrative Agent
forthwith on demand, such corresponding amount, with interest
thereon for each day from and including the date such amount is
made available to the Borrower to but excluding the date of such
payment to the Administrative Agent, at (i) in the case of a
payment to be made by such Lender, (A) at any time prior to the
third Business Day following the date such amount is made available
to the Borrower, the customary rate set by the Administrative Agent
for the correction of errors among banks and (B) thereafter, the
Base Rate or (ii) in the case of a payment to be made by the
Borrower, the interest rate applicable hereunder to Base Rate
Loans. If the Borrower and such Lender shall both pay such interest
to the Administrative Agent for the same or an overlapping period,
the Administrative Agent shall promptly remit to the Borrower the
amount of such interest paid by the Borrower for such period. If
such Lender pays such amount to the Administrative Agent, then such
amount shall constitute such Lender’s Loan included in the
applicable Borrowing.

 

 

 

38

 

 

 

 

2.5           Use
of Proceeds. The Borrower will
use the proceeds of any Borrowing solely in accordance with the
Orders and the Approved Budget, (a) to pay fees and expenses
in connection with the Transactions and (b) for working
capital and other general corporate purposes of the Debtors (and,
to the extent permitted hereunder, the other Restricted
Subsidiaries of the Borrower) following the commencement of the
Cases and (c) to pay payments in respect of Adequate
Protection (as defined in the Interim Order or Final Order, as
applicable) as authorized by the Bankruptcy Court in the applicable
Order and (d) to pay obligations arising from or related to the
Carve-Out, in each case, not in contravention of any applicable law
and not in violation of this Agreement or the other Credit
Documents.

 

2.6           Evidence
of Debt; Register; Notes. (a) Lenders’ Evidence of
Debt. Each Lender shall maintain records evidencing the
Obligations of the Borrower owing to such Lender, including the
principal amount of the Loans made by such Lender and each
repayment and prepayment in respect thereof. Such records
maintained by any Lender shall be prima facie evidence thereof,
absent manifest error; provided that the failure to
maintain any such records, or any error therein, shall not in any
manner affect the obligation of the Borrower to pay any amounts due
hereunder in accordance with the terms hereof; provided further that in the event of
any inconsistency between the records maintained by any Lender and
the records maintained by the Administrative Agent, the records
maintained by the Administrative Agent shall govern and
control.

 

(b)           Register.
The Administrative Agent shall maintain records of the name and
address of, and the Commitments of and the principal amount of and
stated interest on the Loans owing to, each Lender from time to
time (the “Register”). The entries in the
Register shall be prima facie evidence thereof, absent manifest
error; provided
that the failure to maintain the Register, or any error therein,
shall not in any manner affect the obligation of any Lender to make
a Loan or other payment hereunder or the obligation of the Borrower
to pay any amounts due hereunder, in each case in accordance with
the terms of this Agreement. The Register shall be available for
inspection by the Borrower or any Lender (but, in the case of a
Lender, only with respect to (i) any entry relating to such
Lender’s Commitments or Loans and (ii) the identity of
the other Lenders (but not information as to such other
Lenders’ Commitments or Loans)) at any reasonable time and
from time to time upon reasonable prior notice. The Borrower hereby
designates the Person serving as the Administrative Agent to serve
as the Borrower’s non-fiduciary agent solely for purposes of
maintaining the Register as provided in this Section 2.6(b)
and agrees that, in consideration of such Person serving in such
capacity, such Person and its Related Parties shall constitute
“Indemnitees”.

 

(c)           Notes.
Upon the request of any Lender by written notice to the Borrower
(with a copy to the Administrative Agent), the Borrower shall
promptly prepare, execute and deliver to such Lender a promissory
note payable to such Lender (or, if requested by such Lender, to
such Lender and its registered assigns) to evidence such
Lender’s Loans, which shall be substantially in the form
attached hereto as Exhibit M.

 

 

 

39

 

 

 

 

2.7           Interest
on Loans. (a) Subject to
Section 2.9, each Loan shall bear interest on the outstanding
principal amount thereof from the date made or deemed made
(including through funding into the DIP Term Funding Account or
roll-up of the Roll-Up Loans hereunder) through repayment (whether
by acceleration or otherwise) thereof as follows:

 

(i)             if
a Base Rate Loan, at the Base Rate plus the Applicable Rate;
or

 

(ii)             if
a Eurodollar Rate Loan, at the Adjusted Eurodollar Rate plus the
Applicable Rate.

 

The
applicable Base Rate or Adjusted Eurodollar Rate shall be
determined by the Administrative Agent, and such determination
shall be conclusive and binding on the parties hereto, absent
manifest error.

 

(b)           The
basis for determining the rate of interest with respect to any
Loan, and the Interest Period with respect to any Eurodollar Rate
Borrowing, shall be selected by the Borrower pursuant to the
applicable Funding Notice or Conversion/Continuation Notice
delivered in accordance herewith; provided that there shall be no
more than 3 (or such greater number as may be agreed to by the
Administrative Agent in its sole discretion) Eurodollar Rate
Borrowings outstanding at any time. In the event the Borrower fails
to specify in any Funding Notice the Type of the requested
Borrowing, then the requested Borrowing shall be made as a Base
Rate Borrowing. In the event the Borrower fails to deliver in
accordance with Section 2.8 a Conversion/Continuation Notice
with respect to any Eurodollar Rate Borrowing prior to the end of
the Interest Period applicable thereto, then, unless such Borrowing
is repaid as provided herein, at the end of such Interest Period
such Borrowing shall be converted to a Base Rate Borrowing. In the
event the Borrower requests the making of, or the conversion to or
continuation of, any Eurodollar Rate Borrowing but fails to specify
in the applicable Funding Notice or Conversion/Continuation Notice
the Interest Period to be applicable thereto, the Borrower shall be
deemed to have specified an Interest Period of one
month.

 

(c)           Interest
payable pursuant to Section 2.7(a) shall be computed (i) in the
case of Base Rate Loans, on the basis of a 360-day year (or, in the
case of Base Rate Loans determined by reference to the Prime Rate,
a 365-day or 366-day year, as applicable), and (ii) in the case of
Eurodollar Rate Loans, on the basis of a 360-day year, in each case
for the actual number of days elapsed in the period during which
such interest accrues. In computing interest on any Loan, the date
of the making of such Loan or the first day of an Interest Period
applicable to such Loan or, with respect to a Base Rate Loan being
converted from a Eurodollar Rate Loan, the date of conversion of
such Eurodollar Rate Loan to such Base Rate Loan, as the case may
be, shall be included, and the date of payment of such Loan or the
expiration date of an Interest Period applicable to such Loan or,
with respect to a Base Rate Loan being converted to a Eurodollar
Rate Loan, the date of conversion of such Base Rate Loan to such
Eurodollar Rate Loan, as the case may be, shall be excluded;
provided that if a
Loan is repaid on the same day on which it is made, one day’s
interest shall accrue on such Loan.

 

(d)           Except
as otherwise set forth herein, accrued interest on each Loan shall
be payable in arrears (i) on each Interest Payment Date applicable
to such Loan, (ii) upon any voluntary or mandatory repayment or
prepayment of such Loan, to the extent accrued on the amount being
repaid or prepaid, (iii) on the Termination Date and (iv) in
the event of any conversion of a Eurodollar Rate Loan prior to the
end of the Interest Period then applicable thereto, on the
effective date of such conversion.

 

 

 

40

 

 

 

 

2.8           Conversion/Continuation.
(a) Subject to Section 2.17, the Borrower shall have the
option:

 

(i)             to
convert at any time all or any part of any Borrowing from one Type
to the other Type; and

 

(ii)             to
continue, at the end of the Interest Period applicable to any
Eurodollar Rate Borrowing, all or any part of such Borrowing as a
Eurodollar Rate Borrowing and to elect an Interest Period
therefor;

 

provided, in each case, that at
the commencement of each Interest Period for any Eurodollar Rate
Borrowing, such Borrowing shall be in an amount that complies with
Section 2.1(b) or 2.2(b), as applicable.

 

In the
event any Borrowing shall have been converted or continued in
accordance with this Section 2.8 in part, such conversion or
continuation shall be allocated ratably, in accordance with their
applicable Pro Rata Shares, among the Lenders holding the Loans
comprising such Borrowing, and the Loans comprising each part of
such Borrowing resulting from such conversion or continuation shall
be considered a separate Borrowing.

 

(b)                 To
exercise its option pursuant to this Section 2.8, the Borrower
shall deliver a fully completed and executed
Conversion/Continuation Notice to the Administrative Agent (i) not
later than 11:00 a.m. (New York City time) one Business Day in
advance of the proposed Conversion/Continuation Date, in the case
of a conversion to a Base Rate Borrowing, and (ii) not later than
2:00 p.m. (New York City time) at least three Business Days in
advance of the proposed Conversion/Continuation Date, in the case
of a conversion to, or a continuation of, a Eurodollar Rate
Borrowing. Except as otherwise provided herein, a
Conversion/Continuation Notice for a conversion to, or a
continuation of, any Eurodollar Rate Borrowing shall be irrevocable
on and after the related Interest Rate Determination Date, and the
Borrower shall be bound to effect a conversion or continuation in
accordance therewith; any failure to effect such conversion or
continuation in accordance therewith shall be subject to Section
2.17(c).

 

(c)                 Notwithstanding
anything to the contrary herein, if an Event of Default under
Section 8.1(a), 8.1(f) or 8.1(g) or, at the written request of
the Requisite Lenders, any other Event of Default shall have
occurred and be continuing, then no outstanding Borrowing may be
converted to or continued as a Eurodollar Rate
Borrowing.

 

(d)                 Notwithstanding
anything to the contrary contained herein, there shall not at any
time be more than a total of 7 different Interest Periods in effect
for Eurodollar Rate Borrowings at any time outstanding (or such
greater number of different Interest Periods as the Administrative
Agent may agree from time to time).

 

2.9           Default
Interest. Notwithstanding
anything to the contrary herein, upon the occurrence and during the
continuance of any Event of Default, any principal of or interest
on any Loan or any fee or other amount payable by the Borrower
hereunder shall bear interest, payable on demand, after as well as
before judgment, at a rate per annum equal to (a) in the case of
the principal of any Loan, 2.00% per annum in excess of the
interest rate otherwise applicable hereunder to such Loan or (b) in
the case of any other amount, a rate (computed on the basis of a
year of 360 days for the actual number of days elapsed) that is
2.00% per annum in excess of the highest interest rate otherwise
payable hereunder for Base Rate Loans. Payment or acceptance of the
increased rates of interest provided for in this Section 2.9 is not
a permitted alternative to timely payment and shall not constitute
a waiver of any Event of Default or otherwise prejudice or limit
any rights or remedies of the Administrative Agent or any
Lender.

 

 

 

41

 

 

 

 

2.10           Fees.
(a) On the Closing Date, the Borrower shall pay (i) to each Lender,
a fee in the form of original issue discount in an amount equal to
2.50% of the amount of the Commitments of such Lender on the
Closing Date (the “OID”), (ii) to each member of the
Ad Hoc Group of Term Lenders who has made a commitment with respect
to the New-Money Loans under the Restructuring Support Agreement
and has notified the Borrower of its intention to collect the
Backstop Fee on the Closing Date, a backstop fee equal to 2.50% of
the amount of such commitment with respect to the New-Money Loans
of such member on the Closing Date (the “Backstop Fee”) and (iii) to each
Lender on the Closing Date, with respect to the commitment with
respect to the New-Money Loans of each member of the Ad Hoc Group
of Term Lenders with respect to the New-Money Loans under the
Restructuring Support Agreement that has notified the Borrower of
its intention not to collect a Backstop Fee on the Closing Date,
additional OID equal to 2.50% of the amount of such commitment of
such member on the Closing Date (the “Additional OID” and collectively
with the OID and the Backstop Fee, the “Closing Date Fees”), it being
understood and agreed that such Additional OID shall be payable not
in addition but instead of the Backstop Fee that otherwise would be
payable to such member on the Closing Date. The Closing Date Fees
shall be fully and irrevocably due and payable in Cash on the
Closing Date and may be deducted by each Lender from the proceeds
of the Loans made by such Lender on the Closing Date in the form of
original issue discount. The Closing Date Fees shall be earned by
the Lenders upon the funding of the Loans as a fee in consideration
of the Commitments and the making of the Loans and for the time and
costs expended in extending the Commitments and the making of the
Loans. THE BORROWER EXPRESSLY WAIVES THE PROVISIONS OF ANY PRESENT
OR FUTURE STATUTE OR LAW THAT PROHIBITS OR MAY PROHIBIT THE
COLLECTION OF THE CLOSING DATE FEES. The Borrower expressly agrees
that: (A) the Closing Date Fees are reasonable and are the product
of an arm’s length transaction between sophisticated business
people, ably represented by counsel; (B) the Closing Date Fees
shall be payable notwithstanding the then prevailing market rates
at the time payment is made; (C) there has been a course of conduct
between the Lenders and the Borrower giving specific consideration
in this transaction for such agreement to pay the Closing Date
Fees; and (D) the Borrower shall be estopped hereafter from
claiming differently than as agreed to in this paragraph. The
Borrower expressly acknowledges that its agreement to pay the
Closing Date Fees to the Lenders as herein described is a material
inducement for the Lenders to provide the Commitment and provide
the Loans.

 

(b)           The
Borrower agrees to pay to the Administrative Agent and the
Collateral Agent, for their own account, the fees in the amounts
and at the times separately agreed upon (including pursuant to the
Administrative Agent Fee Letter) in respect of the credit
facilities provided herein. Such fees will be in addition to the
payment of the Agents’ fees, costs and expenses pursuant to
Section 10.2 and Section 10.3 hereof.

 

(c)           Fees
paid hereunder shall not be refundable or creditable under any
circumstances.

 

(d)           Fees
paid hereunder and pursuant to the Administrative Agent Fee Letter
shall be fully earned when due. Such fees shall not be refundable
or creditable under any circumstances except as may be expressly
agreed in writing by the party to whom such fees are or are to be
paid.

 

2.11           Repayment.
To the extent not previously paid, all Term Loans (including the
Roll-Up Loans) shall be due and payable on the Termination
Date.

 

 

 

42

 

 

 

 

2.12           Voluntary
Prepayments.

 

(a)           At
any time and from time to time, the Borrower may, without premium
or penalty (except as applicable under Section 2.12(b)) but subject
to compliance with the conditions set forth in this Section 2.12(a)
and with Section 2.17(c), prepay any Term Borrowing in whole or in
part; provided
that each such partial voluntary prepayment of any Borrowing
shall be in an aggregate principal amount of $1,000,000 or an
integral multiple of $500,000 in excess of such amount (or such
lesser amount that constitutes the full amount of the Term Loans
outstanding). To make a voluntary prepayment pursuant to this
Section 2.12(a), the Borrower shall notify the Administrative
Agent not later than 11:00 a.m. (New York City time) (A) at
least one Business Day prior to the date of prepayment, in the case
of prepayment of Base Rate Borrowings, or (B) at least three
Business Days prior to the date of prepayment, in the case of
prepayment of Eurodollar Rate Borrowings. Each such notice shall
specify the prepayment date (which shall be a Business Day) and the
principal amount of each Borrowing or portion thereof to be
prepaid, and shall be given in writing. Each such notice shall be
irrevocable, and the principal amount of each Borrowing specified
therein shall become due and payable on the prepayment date
specified therein. Promptly following receipt of any such notice,
the Administrative Agent shall advise the Lenders of the details
thereof. Each voluntary prepayment of a Borrowing shall be
allocated among the Lenders holding Loans comprising such Borrowing
in accordance with their applicable Pro Rata Shares.

 

(b)           In
the event that prior to the Termination Date, all or any portion of
the Borrowings are prepaid pursuant to Section 2.12(a) or in
connection with a refinancing in full of the Borrowings, then each
Lender whose Loans are so prepaid shall be paid a fee equal to
2.50% of the aggregate principal amount of such Lender’s
Loans so prepaid.

 

2.13           Mandatory
Prepayments.

 

(a)           Prepayment
Event. Not later than the fifth Business Day following the
date of receipt by the Borrower or any Restricted Subsidiary of any
Net Proceeds in respect of any Prepayment Event (or, in the case of
a Prepayment Event described in clause (d) of the definition
thereof, on the date of the incurrence of the applicable
Indebtedness), the Borrower shall prepay the Borrowings in an
aggregate amount equal to 100% of such Net Proceeds.

 

 

 

43

 

 

 

 

(b)           Insurance/Condemnation
Events. Notwithstanding anything to the contrary contained
herein, not later than the fifth Business Day following the date of
receipt by the Borrower or any Restricted Subsidiary, or by the
Collateral Agent as loss payee, of any Net Proceeds in respect of
any Prepayment Event described in clause (b) of the definition
thereof, the Borrower shall prepay the Term Borrowings in an
aggregate amount equal to 100% of such Net Proceeds; provided that the Borrower may,
at least one Business Day prior to the date of the required
prepayment, deliver to the Administrative Agent a certificate of an
Authorized Officer of the Borrower to the effect that the Borrower
intends to cause such Net Proceeds (or a portion thereof specified
in such certificate) to be reinvested in replacement assets
(including through the repair, restoration or replacement of the
damaged, destroyed or condemned assets) or other non-current assets
useful in the business of the Borrower and its Restricted
Subsidiaries or in Acquisitions, in each case, within 365 days
after the receipt of such Net Proceeds, and certifying that, as of
the date thereof, no Event of Default has occurred and is
continuing, in which case during such period the Borrower shall not
be required to make such prepayment to the extent of the amount set
forth in such certificate; provided further that any such Net
Proceeds that are not so reinvested by the end of such period (or
within a period of 270 days thereafter if by the end of such
initial 365-day period the Borrower or any of its Restricted
Subsidiaries shall have entered into a binding agreement with a
third party to so reinvest such Net Proceeds) shall be applied to
prepay the Term Borrowings promptly upon the expiration of such
period.

 

(c)           Vector
Subordinated Note Collateral. Notwithstanding anything to
the contrary herein, no mandatory prepayment shall be required from
any proceeds of the Vector Subordinated Note Collateral (as defined
in the Interim Order and, when entered, the Final Order) prior to
the payment in full of the claims of the Revolving Lenders and
Issuing Banks (each as defined in the Existing First Lien Credit
Agreement) arising under the Existing First Lien Credit Agreement
and application of proceeds thereof in accordance with the last
paragraph of Section 5.02 of the Existing First Lien Pledge and
Security Agreement.

 

(d)           [Reserved].

 

(e)           [Reserved].

 

(f)           [Reserved].

 

(g)           Notice
and Certificate. At least one Business Day prior to any
mandatory prepayment pursuant to this Section 2.13, the Borrower
(i) shall notify the Administrative Agent in writing of such
prepayment and (ii) shall deliver to the Administrative Agent a
certificate of an Authorized Officer of the Borrower setting forth
the calculation of the amount of the applicable prepayment. Each
such notice shall be irrevocable and shall specify the prepayment
date and the principal amount of each Borrowing or portion thereof
to be prepaid and shall be given in writing. Promptly following
receipt of any such notice, the Administrative Agent shall advise
the Lenders of the details thereof. Each mandatory prepayment of
any Borrowing shall be allocated among the Lenders holding Loans
comprising such Borrowing in accordance with their applicable Pro
Rata Shares and shall be subject to compliance with Section
2.17(c).

 

 

 

44

 

 

 

 

(h)           Foreign
Restrictions and Taxes. Notwithstanding any other provisions
of this Section 2.13 to the contrary, if the Borrower determines in
good faith that (i) any Net Proceeds in respect of any Prepayment
Event described in clauses (a) or (b) of the definition of
“Prepayment Event” affecting the assets of a Restricted
Subsidiary that is a Foreign Subsidiary, CFC or a CFC Holding
Company, are prohibited, restricted or delayed by applicable
foreign law (including currency controls) from being repatriated to
the United States or if the officers or directors of such Foreign
Subsidiary, CFC or a CFC Holding Company, as applicable, reasonably
determine in good faith that the repatriation of such Net Proceeds
could be inconsistent with their fiduciary duties (and that, in
view of the available liquidity and working capital requirements of
the Borrower and the Restricted Subsidiaries that are not Foreign
Subsidiaries, CFCs or CFC Holding Companies (as determined by the
Borrower in good faith and taking into account the foregoing
considerations), such repatriation is reasonably required in order
to provide the Borrower with the funds with which to make such
prepayment as would otherwise be required hereunder), then the
amount thereof so affected will not be required to be applied to
prepay Term Borrowings as otherwise required under Section 2.13(a);
provided that
(A) the Borrower shall, and shall cause such Foreign
Subsidiary, CFC or CFC Holding Company to, use commercially
reasonable efforts to take actions reasonably required by the
applicable foreign law to permit such repatriation and (B) the
Borrower shall prepay Term Borrowings in accordance with Section
2.13(a) in a principal amount equal to such affected amount (or a
portion thereof) at such time as (x) the repatriation of such
amount (or such portion thereof) becomes permitted under applicable
foreign law (or is no longer inconsistent with the fiduciary duties
of the officers or directors of the applicable Subsidiary) or (y)
the Borrower determines in good faith that, in view of the
available liquidity and working capital requirements of the
Borrower and the Restricted Subsidiaries that are not Foreign
Subsidiaries, CFCs or CFC Holding Companies (taking into account
the foregoing considerations), funds are available in the United
States to make such prepayment (or such portion thereof);
provided
further that any
such prepayment shall no longer be required to be made with respect
to any such amounts that, after the use of such commercially
reasonable efforts, have not been repatriated prior to the date
that is one year after the date the original prepayment was
required to be made under Section 2.13(a), or (ii) any repatriation
of Net Proceeds in respect of any Prepayment Event described in
clauses (a) or (b) of the definition of “Prepayment
Event” affecting the assets of a Restricted Subsidiary that
is a Foreign Subsidiary, CFC or a CFC Holding Company, would have a
material adverse tax consequence (taking into account any
withholding tax, any Subpart F inclusion, any Code Section 951A
inclusion and any foreign tax credit or benefit actually realized
in connection with such repatriation) to the Borrower and the
Restricted Subsidiaries (and that, in view of the available
liquidity and working capital requirements of the Borrower and the
Restricted Subsidiaries that are not Foreign Subsidiaries, CFCs or
CFC Holding Companies (as determined by the Borrower in good faith
and taking into account the foregoing considerations), such
repatriation is reasonably required in order to provide the
Borrower with the funds with which to make such prepayment as would
otherwise be required hereunder), then the amount thereof so
affected will not be required to be applied to prepay Term
Borrowings as otherwise required under Section 2.13(a), provided
that the Borrower shall prepay Term Borrowings in accordance with
Section 2.13(a) in a principal amount equal to such affected amount
(or a portion thereof) at such time as (A) the repatriation of such
amount (or such portion thereof) would no longer result in a
material adverse tax consequence or (B) the Borrower determines in
good faith that, in view of the available liquidity and working
capital requirements of the Borrower and the Restricted
Subsidiaries that are not Foreign Subsidiaries, CFCs or CFC Holding
Companies (taking into account the foregoing considerations), funds
are available in the United States to make such prepayment (or such
portion thereof), provided further that any such prepayment shall
no longer be required to be made after the date that is one year
after the date the original prepayment was required to be made
under Section 2.13(a).

 

2.14           Application
of Prepayments. Any prepayment of
Borrowings pursuant to Section 2.12 or Section 2.13 shall be
allocated among the Lenders holding Loans comprising such Term
Borrowing in accordance with their applicable Pro Rata
Shares.

 

2.15           General
Provisions Regarding Payments. (a) All payments
by the Borrower or any other Credit Party of principal, interest,
fees and other amounts required to be made hereunder or under any
other Credit Document shall be made by wire transfer of same day
funds in Dollars, without defense, recoupment, set-off or
counterclaim, free of any restriction or condition, to the account
of the Administrative Agent in the United States of America most
recently designated by it for such purpose and received by the
Administrative Agent not later than 2:00 p.m. (New York City time)
on the date due for the account of the Persons entitled thereto;
provided that
payments made pursuant to Sections 2.17(c), 2.18, 2.19, 10.2 and
10.3 shall be made directly to the Persons entitled thereto. The
Administrative Agent shall distribute any payment received by it
hereunder for the account of any other Person to the appropriate
recipient promptly following receipt thereof.

 

(b)           All
payments in respect of the principal amount of any Loan shall be
accompanied by payment of accrued interest on the principal amount
being repaid or prepaid, and all such payments (and, in any event,
any payments in respect of any Loan on a date when interest is due
and payable with respect to such Loan) shall be applied to the
payment of interest then due and payable before application to
principal.

 

 

 

45

 

 

 

 

(c)           If
any Conversion/Continuation Notice is withdrawn as to any Affected
Lender or if any Affected Lender makes Base Rate Loans in lieu of
its applicable Pro Rata Share of any Eurodollar Rate Borrowing, the
Administrative Agent shall give effect thereto in apportioning
payments received thereafter.

 

(d)           Subject
to the proviso set forth in the definition of “Interest
Period”, whenever any payment to be made hereunder with
respect to any Loan shall be stated to be due on a day that is not
a Business Day, such payment shall be made on the next succeeding
Business Day, and such extension of time shall be included in the
computation of the payment of interest hereunder.

 

(e)           Any
payment hereunder by or on behalf of the Borrower to the
Administrative Agent that is not received by the Administrative
Agent in same day funds prior to 2:00 p.m. (New York City time) on
the date due shall, unless the Administrative Agent shall determine
otherwise, be deemed to have been received, for purposes of
computing interest and fees hereunder (including for purposes of
determining the applicability of Section 2.9), on the Business Day
immediately following the date of receipt (or, if later, the
Business Day immediately following the date the funds received
become available funds).

 

(f)           If
an Event of Default shall have occurred and the maturity of the
Loans shall have been accelerated pursuant to Section 8.1, all
payments or proceeds received by the Administrative Agent or the
Collateral Agent in respect of any of the Obligations, or from any
sale of, collection from or other realization upon all or any part
of the Collateral, shall be applied in accordance with the
application arrangements set forth in Section 8.1
hereof.

 

(g)           Unless
the Administrative Agent shall have been notified by the Borrower
prior to the date on which any payment is due to the Administrative
Agent for the account of the Lenders hereunder that the Borrower
will not make such payment, the Administrative Agent may assume
that the Borrower has made such payment on such date in accordance
herewith and may, in its sole discretion, but shall not be
obligated to, distribute to the Lenders the amount due. In such
event, if the Borrower has not in fact made such payment, then each
of the Lenders severally agrees to pay to the Administrative Agent
forthwith on demand the amount so distributed to such Lender with
interest thereon, for each day from and including the date such
amount is distributed to it to but excluding the date of payment to
the Administrative Agent (i) at any time prior to the third
Business Day following the date such amount is distributed to it,
the customary rate set by the Administrative Agent for the
correction of errors among banks and (ii) thereafter, the Base
Rate.

 

2.16           Ratable
Sharing. The Lenders
hereby agree among themselves that if any Lender shall, whether
through the exercise of any right of set-off or banker’s
lien, by counterclaim or cross action or by the enforcement of any
right under the Credit Documents or otherwise, or as adequate
protection of a deposit treated as cash collateral under the
Bankruptcy Code, receive payment of a portion of the aggregate
amount of any principal, interest and fees owing to such Lender
hereunder or under the other Credit Documents (collectively, the
“Aggregate Amounts
Due” to such Lender) resulting in such Lender
receiving payment of a greater proportion of the Aggregate Amounts
Due to such Lender than the proportion received by any other Lender
in respect of the Aggregate Amounts Due to such other Lender, then
the Lender receiving such proportionately greater payment shall
(a) notify the Administrative Agent and each other Lender in
writing of the receipt of such payment and (b) apply a portion
of such payment to purchase (for cash at face value) participations
in the Aggregate Amounts Due to the other Lenders so that all such
payments of Aggregate Amounts Due shall be shared by all the
Lenders ratably in accordance with the Aggregate Amounts Due to
them; provided
that, if all or part of such proportionately greater payment
received by any purchasing Lender is thereafter recovered from such
Lender upon the bankruptcy or reorganization of any Credit Party or
otherwise, such purchase shall be rescinded and the purchase price
paid for such participation shall be returned to such purchasing
Lender ratably to the extent of such recovery, but without
interest. Each Credit Party expressly consents to the foregoing
arrangements and agrees that any holder of a participation so
purchased may exercise any and all rights of banker’s lien,
consolidation, set-off or counterclaim with respect to any and all
monies owing by such Credit Party to such holder with respect
thereto as fully as if such holder were owed the amount of the
participation held by such holder. The provisions of this Section
2.16 shall not be construed to apply to (i) any payment made by the
Borrower pursuant to and in accordance with the express terms of
this Agreement, including any payment made by the Borrower pursuant
to Section 2.22, or (ii) any payment obtained by any Lender as
consideration for the assignment of or sale of a participation in
Loans or other Obligations owing to it pursuant to and in
accordance with the express terms of this Agreement.

 

 

 

46

 

 

 

 

2.17           Making
or Maintaining Eurodollar Rate Loans. (a) Inability to Determine Applicable
Interest Rate.

 

(i)           If
prior to the commencement of any Interest Period for a Eurodollar
Rate Borrowing:

 

(A)           the
Administrative Agent determines (which determination shall be
conclusive absent manifest error) that adequate and reasonable
means do not exist for ascertaining the Adjusted Eurodollar Rate
for such Interest Period; or

 

(B)           the
Administrative Agent is notified in writing by the Requisite
Lenders that the Adjusted Eurodollar Rate for such Interest Period
will not adequately and fairly reflect the cost to such Lenders of
making or maintaining their Loans included in such Eurodollar Rate
Borrowing for such Interest Period;

 

then
the Administrative Agent shall give notice thereof to the Borrower
and the Lenders as promptly as practicable, whereupon, (x) no
Loans may be made as, or converted to, Eurodollar Rate Loans until
such time as the Administrative Agent notifies the Borrower and the
Lenders that the circumstances giving rise to such notice no longer
exist, and (y) any Funding Notice or Conversion/Continuation Notice
given by the Borrower with respect to the Loans in respect of which
such determination was made shall be deemed rescinded by the
Borrower. The Administrative Agent shall promptly notify the
Borrower and the Lenders when such circumstances no longer
exist.

 

(ii)           If
at any time the Administrative Agent determines (which
determination shall be conclusive absent manifest error) that
(x) the circumstances set forth in Section 2.17(a)(i)(A) have
arisen (including because the rate described in clause (a) of the
definition of “Adjusted
Eurodollar Rate” is not available or published on a
current basis) and such circumstances are unlikely to be temporary
or (y) the circumstances set forth in Section 2.17(a)(i)(A)
have not arisen but the supervisor for the administrator of the
rate described in clause (a) of the definition of
“Adjusted Eurodollar
Rate” or a Governmental Authority having jurisdiction
over the Administrative Agent has made a public statement
identifying a specific date after which the rate described in
clause (a) of the definition of “Adjusted Eurodollar Rate” no
longer be used for determining interest rates for loans, then the
Administrative Agent (acting at the direction of the Requisite
Lenders) and the Borrower shall endeavor to establish an alternate
rate of interest to the Adjusted Eurodollar Rate that (x) gives due
consideration to the then prevailing market convention for
determining a rate of interest for syndicated loans denominated in
Dollars in the United States at such time, and (y) is a rate for
which the Administrative Agent has indicated in writing to the
Lenders (which includes email) that it is able to calculate and
administer, and the Administrative Agent and the Borrower shall
enter into an amendment to this Agreement to reflect such alternate
rate of interest and such other related changes to this Agreement
as may be applicable (but for the avoidance of doubt, such related
changes shall not include a reduction of the Applicable Rate);
provided that if
such alternate rate of interest shall be less than zero, such rate
shall be deemed to be zero for all purposes of this Agreement (and
the Term Loan Lenders hereby (A) authorize and direct the
Administrative Agent to execute and deliver any such amendment in
respect of which the Requisite Lenders have indicated in writing to
the Administrative Agent (which may be via email) that such
amendment (and the alternate interest rate specified therein) is
satisfactory to the Requisite Lenders and (B) acknowledge and agree
that the Administrative Agent shall be entitled to all of the
exculpations and indemnifications provided for in this Agreement in
favor of the Administrative Agent in executing and delivering any
such amendment). Notwithstanding anything to the contrary contained
in Section 10.5, such amendment shall become effective without any
further action or consent of any other party to this Agreement.
Until an alternate rate of interest shall be determined in
accordance with this paragraph (but, in the case of the
circumstances described in clause (y) above, only to the extent the
rate described in clause (a) of the definition of
“Adjusted Eurodollar
Rate” for such Interest Period is not available or
published at such time on a current basis), (1) no Loans may
be made as, or converted to, Eurodollar Rate Loans and (2) any
Funding Notice or Conversion/Continuation Notice given by the
Borrower requesting the making of, or conversion to or continuation
of, any Eurodollar Rate Borrowing shall be deemed rescinded by the
Borrower.

 

 

 

47

 

 

 

 

(b)           Illegality
or Impracticability of Eurodollar Rate Loans. In the event
that on any date (i) any Lender shall have determined (which
determination shall be final and conclusive and binding upon all
parties hereto) that the making, maintaining, converting to or
continuation of its Eurodollar Rate Loans has after the Closing
Date become unlawful as a result of compliance by such Lender in
good faith with any law (or would conflict with any treaty, rule,
regulation, guideline or order not having the force of law even
though the failure to comply therewith would not be unlawful), or
(ii) the Requisite Lenders shall have determined (which
determination shall be final and conclusive and binding upon all
parties hereto) that the making, maintaining, converting to or
continuation of their Eurodollar Rate Loans has become
impracticable as a result of contingencies occurring after the
Closing Date that materially and adversely affect the London
interbank market or the position of the Lenders in that market,
then, if such Lender or Lenders shall have provided notice thereof
to the Administrative Agent and the Borrower, such Lender or each
of such Lenders, as the case may be, shall be an
“Affected
Lender”. If the Administrative Agent and the Borrower
receive a notice from (A) any Lender pursuant to clause (i) of the
preceding sentence or (B) a notice from Lenders constituting
Requisite Lenders pursuant to clause (ii) of the preceding
sentence, then (1) the obligation of the Lenders (or, in the case
of any notice pursuant to clause (i) of the preceding sentence, of
the applicable Lender) to make Loans as, or to convert Loans to,
Eurodollar Rate Loans shall be suspended until such notice shall be
withdrawn by each applicable Affected Lender, (2) to the extent
such determination by any Affected Lender relates to a Eurodollar
Rate Loan then being requested by the Borrower pursuant to a
Funding Notice or a Conversion/Continuation Notice, the Lenders (or
in the case of any notice pursuant to clause (i) of the preceding
sentence, the applicable Lender) shall make such Loan as (or
continue such Loan as or convert such Loan to, as the case may be)
a Base Rate Loan, (3) the Lenders’ (or in the case of any
notice pursuant to clause (i) of the preceding sentence, the
applicable Lender’s) obligations to maintain Eurodollar Rate
Loans (the “Affected
Loans”) shall be terminated at the earlier to occur of
the expiration of the Interest Period then in effect with respect
to the Affected Loans or when required by law, and (4) the Affected
Loans shall automatically convert into Base Rate Loans on the date
of such termination. Notwithstanding the foregoing, to the extent
any such determination by an Affected Lender relates to a
Eurodollar Rate Loan then being requested by the Borrower pursuant
to a Funding Notice or a Conversion/Continuation Notice, the
Borrower shall have the option, subject to Section 2.17(c), to
rescind such Funding Notice or Conversion/Continuation Notice as to
all Lenders by giving written notice thereof to the Administrative
Agent of such rescission on the date on which the Affected Lender
gives notice of its determination as described above (which notice
of rescission the Administrative Agent shall promptly transmit to
each other Lender). Each Affected Lender shall promptly notify the
Administrative Agent and the Borrower when the circumstances that
led to its notice pursuant to this Section 2.17(b) no longer
exist.

 

(c)           Compensation
for Breakage or Non-Commencement of Interest Periods. In the
event that (i) a borrowing of any Eurodollar Rate Loan does not
occur on a date specified therefor in any Funding Notice given by
the Borrower (other than as a result of a failure by such Lender to
make such Loan in accordance with its obligations hereunder),
whether or not such notice may be rescinded in accordance with the
terms hereof, (ii) a conversion to or continuation of any
Eurodollar Rate Loan does not occur on a date specified therefor in
any Conversion/Continuation Notice given by the Borrower, whether
or not such notice may be rescinded in accordance with the terms
hereof, (iii) any payment of any principal of any Eurodollar
Rate Loan occurs on a day other than on the last day of an Interest
Period applicable thereto (including as a result of an Event of
Default), (iv) the conversion of any Eurodollar Rate Loan occurs on
a day other than on the last day of an Interest Period applicable
thereto, (v) any Eurodollar Rate Loan is assigned other than on the
last day of an Interest Period applicable thereto as a result of a
request by the Borrower pursuant to Section 2.22 or (vi) a
prepayment of any Eurodollar Rate Loan does not occur on a date
specified therefor in any notice of prepayment given by the
Borrower, whether or not such notice may be rescinded in accordance
with the terms hereof, the Borrower shall compensate each Lender
for all losses, costs, expenses and liabilities that such Lender
may sustain, including any loss incurred from obtaining,
liquidating or employing losses from third parties, but excluding
any loss of margin or any interest rate “floor”, for
the period following any such payment, assignment or conversion or
any such failure to borrow, pay, prepay, convert or continue. To
request compensation under this Section 2.17(c), a Lender
shall deliver to the Borrower (with a copy to the Administrative
Agent) a certificate setting forth in reasonable detail the basis
and calculation of any amount or amounts that such Lender is
entitled to receive pursuant to this Section 2.17(c), which
certificate shall be conclusive and binding absent manifest error.
The Borrower shall pay such Lender the amount shown as due on any
such certificate within 10 Business Days after receipt
thereof.

 

 

 

48

 

 

 

 

(d)           Booking
of Eurodollar Rate Loans. Any Lender may make, carry or
transfer Eurodollar Rate Loans at, to or for the account of any of
its branch offices or the office of any Affiliate of such
Lender.

 

(e)           Assumptions
Concerning Funding of Eurodollar Rate Loans. Calculation of
all amounts payable to a Lender under this Section 2.17 and under
Section 2.18 shall be made as though such Lender had actually
funded each of its relevant Eurodollar Rate Loans through the
purchase of a Eurodollar deposit bearing interest at the rate
obtained pursuant to clause (a)(i) of the definition of the term
Adjusted Eurodollar Rate in an amount equal to the amount of such
Eurodollar Rate Loan and having a maturity comparable to the
relevant Interest Period and through the transfer of such
Eurodollar deposit from an offshore office of such Lender to a
domestic office of such Lender in the United States of America;
provided that each
Lender may fund each of its Eurodollar Rate Loans in any manner it
sees fit and the foregoing assumptions shall be utilized only for
the purposes of calculating amounts payable under this Section 2.17
and under Section 2.18.

 

2.18           Increased
Costs; Capital Adequacy and Liquidity. (a) Increased Costs Generally. If
any Change in Law shall:

 

(i)             impose,
modify or deem applicable any reserve, special deposit, compulsory
loan, insurance charge or similar requirement against assets of,
deposits with or for the account of, or credit extended or
participated in by, any Lender (except any such reserve requirement
reflected in the Adjusted Eurodollar Rate);

 

(ii)             subject
any Recipient to any Taxes (other than (A) Indemnified Taxes,
(B) Taxes described in clauses (b) through (d) of the
definition of “Excluded Taxes” and (C) Connection
Income Taxes) on its loans, loan principal, letters of credit,
commitments or other obligations, or its deposits, reserves, other
liabilities or capital attributable thereto; or

 

(iii)             impose
on any Lender or the London interbank market any other condition,
cost or expense (other than Taxes) affecting this Agreement or any
Loan made by such Lender;

 

and the
result of any of the foregoing shall be to increase the cost to
such Lender or such other Recipient of making, converting to,
continuing or maintaining any Loan or of maintaining its obligation
to make any such Loan, or to reduce the amount of any sum received
or receivable by such Lender or other Recipient hereunder (whether
of principal, interest or any other amount) then, from time to time
upon request of such Lender or other Recipient, the Borrower will
pay to such Lender or other Recipient, as the case may be, such
additional amount or amounts as will compensate such Lender or
other Recipient, as the case may be, for such additional costs
incurred or reduction suffered.

 

(b)           Capital
and Liquidity Requirements. If any Lender determines that
any Change in Law affecting such Lender or any lending office of
such Lender or such Lender’s holding company, if any,
regarding capital or liquidity requirements, has had or would have
the effect of reducing the rate of return on such Lender’s
capital or on the capital of such Lender’s holding company,
if any, as a consequence of this Agreement, the Commitments of such
Lender or the Loans made by such Lender to a level below that which
such Lender or such Lender’s holding company could have
achieved but for such Change in Law (taking into consideration such
Lender’s policies and the policies of such Lender’s
holding company with respect to capital adequacy or liquidity),
then from time to time upon request of such Lender, the Borrower
will pay to such Lender such additional amount or amounts as will
compensate such Lender or such Lender’s holding company for
any such reduction suffered.

 

 

 

49

 

 

 

 

(c)           Certificates
for Reimbursement. A certificate of a Lender setting forth
the amount or amounts necessary to compensate such Lender or its
holding company, as the case may be, as specified in
Section 2.18(a) or 2.18(b) and delivered to the Borrower (with
a copy to the Administrative Agent), shall be conclusive absent
manifest error. The Borrower shall pay such Lender, as the case may
be, the amount shown as due on any such certificate within 10
Business Days after receipt thereof.

 

(d)           Delay
in Requests. Failure or delay on the part of any Lender to
demand compensation pursuant to this Section 2.18 shall not
constitute a waiver of such Lender’s right to demand such
compensation; provided that the Borrower
shall not be required to compensate a Lender pursuant to this
Section 2.18 for any increased costs incurred or reductions
suffered more than 120 days prior to the date that such
Lender, as the case may be, notifies the Borrower of the Change in
Law giving rise to such increased costs or reductions, and of such
Lender’s intention to claim compensation therefor (except
that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the 120-day period referred to
above shall be extended to include the period of retroactive effect
thereof).

 

(e)           Certain
Limitations. Notwithstanding any other provision of this
Section to the contrary, no Lender shall request, or be entitled to
receive, any compensation pursuant to this Section unless it shall
be the general policy or practice of such Lender to seek
compensation in similar circumstances under comparable provisions
of other credit agreements, if any.

 

2.19           Taxes;
Withholding, Etc. 
(a)
[Reserved].

 

(b)           Payments
Free of Taxes. Any and all payments by or on account of any
obligation of any Credit Party under any Credit Document shall be
made without deduction or withholding for any Taxes, except as
required by applicable law. If any applicable law (as determined in
the good faith discretion of an applicable withholding agent)
requires the deduction or withholding of any Tax from any such
payment by a withholding agent, then the applicable withholding
agent shall be entitled to make such deduction or withholding and
shall timely pay the full amount deducted or withheld to the
relevant Governmental Authority in accordance with applicable law
and, if such Tax is an Indemnified Tax, then the sum payable by the
applicable Credit Party shall be increased as necessary so that
after such deduction or withholding has been made (including such
deductions and withholdings applicable to additional sums payable
under this Section 2.19) the applicable Recipient receives an
amount equal to the sum it would have received had no such
deduction or withholding been made.

 

(c)           Payment
of Other Taxes by the Credit Parties. Each Credit Party
shall timely pay to the relevant Governmental Authority in
accordance with applicable law, or at the option of the
Administrative Agent timely reimburse it for the payment of, any
Other Taxes.

 

 

 

50

 

 

 

 

(d)           Indemnification
by the Credit Parties. The Credit Parties shall jointly and
severally indemnify each Recipient, within 10 days after written
demand therefor, for the full amount of any Indemnified Taxes
(including Indemnified Taxes imposed or asserted on or attributable
to amounts payable under this Section 2.19) payable or paid by such
Recipient or required to be withheld or deducted from a payment to
such Recipient and any reasonable expenses arising therefrom or
with respect thereto, whether or not such Indemnified Taxes were
correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such
payment or liability delivered to the Borrower by a Lender (with a
copy to the Administrative Agent), or by the Administrative Agent
on its own behalf (including in its capacity as the Collateral
Agent) or on behalf of a Lender, shall be conclusive absent
manifest error.

 

(e)           Indemnification
by the Lenders. Each Lender shall severally indemnify the
Administrative Agent, within 10 days after demand therefor, for (i)
any Indemnified Taxes attributable to such Lender (but only to the
extent that no Credit Party has already indemnified the
Administrative Agent for such Indemnified Taxes and without
limiting the obligation of the Credit Parties to do so), (ii) any
Taxes attributable to such Lender’s failure to comply with
the provisions of Section 10.6(g) relating to the maintenance of a
Participant Register and (iii) any Excluded Taxes attributable to
such Lender, in each case, that are payable or paid by the
Administrative Agent in connection with any Credit Document, and
any reasonable expenses arising therefrom or with respect thereto,
whether or not such Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority. A certificate as
to the amount of such payment or liability delivered to any Lender
by the Administrative Agent shall be conclusive absent manifest
error. Each Lender hereby authorizes the Administrative Agent to
set-off and apply any and all amounts at any time owing to such
Lender under any Credit Document or otherwise payable by the
Administrative Agent to the Lender from any other source against
any amount due to the Administrative Agent under this
Section 2.19(e).

 

(f)           Evidence
of Payments. As soon as practicable after any payment of
Taxes by any Credit Party to a Governmental Authority pursuant to
this Section 2.19, such Credit Party shall deliver to the
Administrative Agent the original or a certified copy of a receipt
issued by such Governmental Authority evidencing such payment, a
copy of the return reporting such payment or other evidence of such
payment reasonably satisfactory to the Administrative Agent or the
relevant Lender, as applicable.

 

(g)           Status
of Lenders. (i) Any Lender that is entitled to an exemption
from or reduction of withholding Tax with respect to payments made
under any Credit Document shall deliver to the Borrower and the
Administrative Agent, at the time or times reasonably requested by
the Borrower or the Administrative Agent, such properly completed
and executed documentation reasonably requested by the Borrower or
the Administrative Agent as will permit such payments to be made
without withholding or at a reduced rate of withholding. In
addition, any Lender, if reasonably requested by the Borrower or
the Administrative Agent, shall deliver such other documentation
prescribed by applicable law or reasonably requested by the
Borrower or the Administrative Agent as will enable the Borrower or
the Administrative Agent to determine whether or not such Lender is
subject to backup withholding or information reporting
requirements. Notwithstanding anything to the contrary in the
preceding two sentences, the completion, execution and submission
of such documentation (other than such documentation set forth in
Section 2.19(g)(ii)(A), (ii)(B) and (ii)(D) below) shall not
be required if in the Lender’s reasonable judgment such
completion, execution or submission would subject such Lender to
any material unreimbursed cost or expense or would materially
prejudice the legal or commercial position of such
Lender.

 

 

 

51

 

 

 

 

(ii)             Without
limiting the generality of the foregoing:

 

(A)            Any
Lender that is a US Person shall deliver to the Borrower and the
Administrative Agent prior to the date on which such Lender becomes
a Lender under this Agreement (and from time to time thereafter
upon the reasonable request of the Borrower or the Administrative
Agent), executed originals of IRS Form W-9 certifying that such
Lender is exempt from United States federal backup withholding
tax.

 

(B)            Any
Foreign Lender shall, to the extent it is legally entitled to do
so, deliver to the Borrower and the Administrative Agent (in such
number of copies as shall be requested by the recipient) on or
prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the
reasonable request of the Borrower or the Administrative Agent),
whichever of the following is applicable:

 

(1)           in
the case of a Foreign Lender claiming the benefits of an income tax
treaty to which the United States is a party (x) with respect to
payments of interest under any Credit Document, executed originals
of IRS Form W-8BEN or W-8BEN-E, as applicable, establishing an
exemption from, or reduction of, US federal withholding Tax
pursuant to the “interest” article of such tax treaty
and (y) with respect to any other applicable payments under any
Credit Document, IRS Form W-8BEN or W-8BEN-E, as applicable,
establishing an exemption from, or reduction of, US federal
withholding Tax pursuant to the “business profits” or
“other income” article of such tax treaty;

 

(2)           executed
originals of IRS Form W-8ECI;

 

(3)           in
the case of a Foreign Lender claiming the benefits of the exemption
for portfolio interest under Section 881(c) of the Internal Revenue
Code, (x) a certificate substantially in the form of Exhibit N-1 to
the effect that such Foreign Lender is not a “bank”
within the meaning of Section 881(c)(3)(A) of the Internal Revenue
Code, a “10 percent shareholder” of the Borrower within
the meaning of Section 881(c)(3)(B) of the Internal Revenue Code,
or a “controlled foreign corporation” described in
Section 881(c)(3)(C) of the Internal Revenue Code
(a “US Tax
Compliance Certificate”) and (y) executed originals of
IRS Form W-8BEN or W-8BEN-E, as applicable; or

 

 

 

52

 

 

 

 

(4)           to
the extent a Foreign Lender is not the beneficial owner, executed
originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS
Form W-8BEN or W-8BEN-E, as applicable, a US Tax Compliance
Certificate substantially in the form of Exhibit N-2 or Exhibit
N-3, IRS Form W-9, and/or other certification documents from each
beneficial owner, as applicable; provided that if the Foreign
Lender is a partnership and one or more direct or indirect partners
of such Foreign Lender are claiming the portfolio interest
exemption, such Foreign Lender may provide a US Tax Compliance
Certificate substantially in the form of Exhibit N-4 on behalf of
each such direct and indirect partner.

 

(C)            Any
Foreign Lender shall, to the extent it is legally entitled to do
so, deliver to the Borrower and the Administrative Agent (in such
number of copies as shall be requested by the recipient) on or
prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the
reasonable request of the Borrower or the Administrative Agent),
executed originals of any other form prescribed by applicable law
as a basis for claiming exemption from or a reduction in US federal
withholding Tax, duly completed, together with such supplementary
documentation as may be prescribed by applicable law to permit the
Borrower or the Administrative Agent to determine the withholding
or deduction required to be made.

 

(D)            If
a payment made to a Lender under any Credit Document would be
subject to US federal withholding Tax imposed by FATCA if such
Lender were to fail to comply with the applicable reporting
requirements of FATCA (including those contained in Section 1471(b)
or 1472(b) of the Internal Revenue Code, as applicable), such
Lender shall deliver to the Borrower and the Administrative Agent
at the time or times prescribed by law and at such time or times
reasonably requested by the Borrower or the Administrative Agent
such documentation prescribed by applicable law (including as
prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue
Code) and such additional documentation reasonably requested by the
Borrower or the Administrative Agent as may be necessary for the
Borrower and the Administrative Agent to comply with their
obligations under FATCA and to determine that such Lender has
complied with such Lender’s obligations under FATCA or to
determine the amount to deduct and withhold from such payment.
Solely for purposes of this clause (D), “FATCA” shall
include any amendments made to FATCA after the date of this
Agreement. For purposes of this Section 2.19, the term
“applicable law” includes FATCA.

 

(iii)             Each
Lender agrees that if any form or certification it previously
delivered expires or becomes obsolete or inaccurate in any respect,
it shall update such form or certification or promptly notify the
Borrower and the Administrative Agent in writing of its legal
inability to do so.

 

 

 

53

 

 

 

 

(h)           Treatment
of Certain Refunds. If any party determines, in its sole
discretion exercised in good faith, that it has received a refund
of any Taxes as to which it has been indemnified pursuant to this
Section 2.19 (including by the payment of additional amounts
pursuant to this Section 2.19), it shall pay to the
indemnifying party an amount equal to such refund (but only to the
extent of indemnity payments made under this Section 2.19 with
respect to the Taxes giving rise to such refund), net of all
out-of-pocket expenses (including Taxes) of such indemnified party
and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund). Such
indemnifying party, upon the request of such indemnified party,
shall repay to such indemnified party the amount paid over pursuant
to this Section 2.19(h) (plus any penalties, interest or other
charges imposed by the relevant Governmental Authority) in the
event that such indemnified party is required to repay such refund
to such Governmental Authority. Notwithstanding anything to the
contrary in this Section 2.19(h), in no event will the indemnified
party be required to pay any amount to an indemnifying party
pursuant to this Section 2.19(h) the payment of which would place
the indemnified party in a less favorable net after-Tax position
than the indemnified party would have been in if the
indemnification payments or additional amounts giving rise to such
refund had never been paid. This Section 2.19(h) shall not be
construed to require any indemnified party to make available its
Tax returns (or any other information relating to its Taxes that it
deems confidential) to the indemnifying party or any other
Person.

 

(i)           Survival.
Each party’s obligations under this Section 2.19 shall
survive the resignation or replacement of the Administrative Agent
or any assignment of rights by, or the replacement of, a Lender,
the termination of the Commitments and the repayment, satisfaction
or discharge of all obligations under any Credit
Document.

 

2.20           Obligation
to Mitigate. If any Lender
becomes an Affected Lender or requests compensation under
Section 2.18, or if the Borrower is required to pay any
Indemnified Taxes or additional amount to any Lender or to any
Governmental Authority for the account of any Lender pursuant to
Section 2.19, then such Lender shall (at the request of the
Borrower) use reasonable efforts to designate a different lending
office for funding or booking its Loans hereunder or to assign and
delegate its rights and obligations hereunder to another of its
offices, branches or Affiliates if, in the judgment of such Lender,
such designation or assignment and delegation (a) would cause such
Lender to cease to be an Affected Lender or would eliminate or
reduce amounts payable pursuant to Section 2.18 or 2.19, as
the case may be, in the future and (b) would not subject such
Lender to any unreimbursed cost or expense and would not otherwise
be disadvantageous to such Lender. The Borrower hereby agrees to
pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment and
delegation.

 

2.21           Defaulting
Lenders. Notwithstanding
anything to the contrary contained in this Agreement, if any Lender
becomes a Defaulting Lender, then, until such time as such Lender
is no longer a Defaulting Lender, to the extent permitted by
applicable law, the Commitments and Loans of such Defaulting Lender
shall not be included in determining whether the Requisite Lenders
or any other requisite Lenders have taken or may take any action
hereunder or under any other Credit Document (including any consent
to any amendment, waiver or other modification pursuant to Section
10.5); provided
that any amendment, waiver or other modification that under clauses
(i), (ii), (v) or (vi) of Section 10.5(b) requires the consent of
all Lenders affected thereby shall require the consent of such
Defaulting Lender in accordance with the terms
thereof.

 

 

 

54

 

 

 

 

2.22           Replacement
of Lenders. If (a) any Lender
has become an Affected Lender, (b) any Lender requests
compensation under Section 2.18, (c) the Borrower is
required to pay any Indemnified Taxes or additional amount to any
Lender or any Governmental Authority for the account of any Lender
pursuant to Section 2.19, (d) any Lender becomes and continues
to be a Defaulting Lender or a Disqualified Institution or
(e) any Lender fails to consent to a proposed waiver,
amendment or other modification of any Credit Document, or to any
departure of any Credit Party therefrom, that under
Section 10.5 requires the consent of all the Lenders (or all
the affected Lenders or all the Lenders) and with respect to which
the Requisite Lenders shall have granted their consent, then the
Borrower may, at its sole expense and effort, upon notice to such
Lender and the Administrative Agent, require such Lender to assign
and delegate, without recourse (in accordance with and subject to
the restrictions contained in Section 10.6, including the
consent requirements set forth therein), all its interests, rights
and obligations under this Agreement and the other Credit Documents
(other than existing rights to payment under Sections 2.17(c), 2.18
and 2.19) (or, in the case of any such assignment and delegation
resulting from a failure to provide a consent, all such interests,
rights and obligations under this Agreement and the other Credit
Documents as a Lender) to an Eligible Assignee that shall assume
such obligations (which may be another Lender, if a Lender accepts
such assignment and delegation); provided that (i) the
Borrower shall have caused to be paid to the Administrative Agent
the registration and processing fee referred to in
Section 10.6(d), (ii) such Lender shall have received
payment of an amount equal to the outstanding principal of its
Loans, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder (including any amounts under
Section 2.17(c)) (if applicable, in each case only to the
extent such amounts relate to its interest as a Lender) from the
assignee (in the case of such principal and accrued interest and
fees) or the Borrower (in the case of all other amounts),
(iii) such assignment and delegation does not conflict with
applicable law, (iv) in the case of any such assignment and
delegation resulting from a claim for compensation under
Section 2.18 or payments required to be made pursuant to
Section 2.19, such assignment will result in a reduction in
such compensation or payments thereafter and (v) in the case of any
such assignment and delegation resulting from the failure to
provide a consent, the assignee shall have given such consent. A
Lender shall not be required to make any such assignment and
delegation if, prior thereto, as a result of a waiver or consent by
such Lender or otherwise, the circumstances entitling the Borrower
to require such assignment and delegation have ceased to apply.
Each party hereto agrees that an assignment and delegation required
pursuant to this Section 2.22 may be effected pursuant to an
Assignment Agreement executed by the Borrower, the Administrative
Agent and the assignee and that the Lender required to make such
assignment and delegation need not be a party thereto.

 

2.23           Withdrawal
of Funds from the DIP Term Funding
Account.
The Borrower shall have the right to withdraw the funds on deposit
in the DIP Term Funding Account from time to time (but not more
frequently than one time in any two week period) by delivering a
written notice to the Collateral Agent and the Lenders in the form
attached as Exhibit I hereto (each such notice, a
“DIP Term Funding Withdrawal
Notice”); provided that (i) the Borrower
shall concurrently provide a liquidity forecast, in a form
substantially consistent with the Approved Budget, certified by the
chief financial officer of the Borrower, demonstrating, to the
reasonable satisfaction of the Requisite Lenders or their advisors,
that the Debtors’ lowest Projected Available Liquidity on any
day during the two-week period after such withdrawal (after giving
effect thereto) will not exceed $10,000,000, (ii) the Final Order
Entry Date shall have occurred and (iii) at the time of and
immediately after giving effect to such withdrawal, no Default or
Event of Default shall have occurred and be continuing or would
result therefrom. Each DIP Term Funding Withdrawal Notice shall
specify the following information:

 

(a)           the
amount of such withdrawal;

 

(b)           the
date of such proposed withdrawal (which shall be on the second
Business Day following the delivery of a DIP Term Funding
Withdrawal Notice) (the “Withdrawal Date”);

 

(c)           the
intended use of proceeds of such withdrawal in reasonable
detail;

 

(d)           that
as of the date of such withdrawal, the conditions set forth in this
Section 2.23 are satisfied; and

 

(e)           the
wiring instructions of the account of the Borrower to which the
proceeds of such withdrawal are to be disbursed.

 

 

 

55

 

 

 

 

On the
Withdrawal Date specified in the DIP Term Funding Withdrawal
Notice, the Collateral Agent shall direct the applicable depository
bank to disburse funds from the DIP Term Funding Account in an
aggregate principal amount equal to the amount specified in such
DIP Term Funding Withdrawal Notice to the account of the Borrower
specified in such DIP Term Funding Withdrawal Notice, unless the
Collateral Agent has received a Withdrawal Termination Instruction
from the Requisite Lenders prior to 10:00 a.m., New York City
time, on such Withdrawal Date (and such Withdrawal Termination
Instruction has not been withdrawn by the Requisite Lenders in
writing prior to 10:00 a.m., New York City time on such
Withdrawal Date).

 

On and
after the date of receipt by the Collateral Agent of a written
direction from the Requisite Lenders instructing the Collateral
Agent that it may no longer honor instructions from the Borrower
with respect to the DIP Term Funding Account due to any of the
conditions set forth in this Section 2.23 being unsatisfied or
incapable of satisfaction (a “Withdrawal Termination
Instruction”), the Borrower shall have no right to
request withdrawals from the DIP Term Funding Account and the
Collateral Agent shall not honor any such request; provided, however, that the Agents
shall not be liable for (i) any disbursements pursuant to
instructions from the Borrower or (ii) irrevocable electronic
funds transfers or wire transfers that are subject to cut-off
times, in each case, that were processed or initiated prior to
receipt of such Withdrawal Termination Instruction. Any Withdrawal
Termination Instruction received by the Collateral Agent from the
Requisite Lenders shall remain in effect until such time, if any,
as the Collateral Agent shall have received a written termination
of such Withdrawal Termination Instruction from the Requisite
Lenders.

 

With
respect to any disbursement, withdrawal, transfer, or application
of funds from the DIP Term Funding Account hereunder, the
Collateral Agent shall be entitled to conclusively rely upon, and
shall be fully protected in relying upon, (i) any DIP Term Funding
Withdrawal Notice submitted by the Borrower as evidence that all
conditions precedent to a withdrawal and disbursement from the DIP
Term Funding Account to the Borrower have been satisfied and (ii)
any Withdrawal Termination Instruction received by it.
Notwithstanding anything herein to the contrary, the Collateral
Agent shall have no obligation to direct the applicable depository
bank to disburse any amount from the DIP Term Funding Account in
excess of the amounts then held in the DIP Term Funding Account.
The Agents shall have no duty to inquire or investigate whether any
condition precedent to a withdrawal from the DIP Term Funding
Account has been satisfied, and shall not be deemed to have any
knowledge that a condition is not satisfied unless it has received
a Withdrawal Termination Instruction.

 

For the
avoidance of doubt, all proceeds of Term Loans held in the DIP Term
Funding Account shall be Term Loans for all purposes hereunder and,
notwithstanding that the proceeds of such Term Loans are held in
the DIP Term Funding Account, shall bear interest in accordance
with this Agreement and shall be subject to all other terms and
provisions of this Agreement and the other Credit Documents to the
same extent as all other Term Loans.

 

SECTION
3.                                CONDITIONS
PRECEDENT

 

3.1           Closing
Date. This Agreement
and the obligation of each Lender to make any Credit Extension
shall not become effective until the date that is not more than
seven calendar days after the Petition Date on which each of the
following conditions shall be satisfied (or waived in accordance
with Section 10.5) (it being understood and agreed that any Credit
Document and each other document required to be received by the
Lenders shall be deemed so received when it is delivered to the
Administrative Agent or the Collateral Agent, as applicable)
:

 

(a)           Credit
Agreement. The Administrative Agent shall have received from
the Borrower and each Designated Subsidiary and each other party
hereto either (i) a counterpart of this Agreement signed on behalf
of such party or (ii) evidence satisfactory to the
Administrative Agent and the Requisite Lenders (which may include a
facsimile or electronic image scan transmission) that such party
has signed a counterpart of this Agreement.

 

 

 

56

 

 

 

 

(b)           Organizational
Documents; Incumbency. The Administrative Agent and the
Lenders shall have received, in respect of the Borrower and each
Designated Subsidiary, a certificate of such Person (or, in the
case of a partnership, its general partner), dated the Closing Date
and executed by the secretary or an assistant secretary or manager
of such Person, attaching (i) a copy of each Organizational
Document of such Person, which shall be certified as of the Closing
Date or a recent date prior thereto by the appropriate Governmental
Authority, (ii) signature and incumbency certificates of the
officers/manager or general partner of such Person executing each
Credit Document, (iii) resolutions of the Board of Managers, Board
of Directors or similar governing body of such Person approving and
authorizing the execution, delivery and performance of this
Agreement and the other Credit Documents to which it is a party,
certified as of the Closing Date by such secretary or assistant
secretary or manager as being in full force and effect without
modification or amendment, and (iv) a good standing
certificate from the applicable Governmental Authority of such
Person’s jurisdiction of organization, dated the Closing Date
or a recent date prior thereto.

 

(c)           [Reserved].

 

(d)           Collateral
and Guarantee Requirement. The Collateral and Guarantee
Requirement shall have been satisfied. The Collateral Agent and the
Lenders shall have received a completed Collateral Questionnaire in
form and substance reasonably satisfactory to the Requisite
Lenders, dated the Closing Date and executed by an Authorized
Officer of the Borrower, together with all attachments contemplated
thereby, including the results of a search of the UCC (or
equivalent) filings made with respect to the Credit Parties in the
jurisdictions contemplated by the Collateral Questionnaire and
copies of the financing statements (or similar documents) disclosed
by such search and evidence reasonably satisfactory to the
Requisite Lenders that the Liens indicated by such financing
statements (or similar documents) are Permitted Liens or have been,
or substantially contemporaneously with the initial funding of
Loans on the Closing Date will be, released.

 

(e)           Evidence
of Insurance. The Collateral Agent and the Lenders shall
have received a certificate from the Borrower’s insurance
broker or other evidence reasonably satisfactory to the Requisite
Lenders that the insurance required to be maintained pursuant to
Section 5.5 is in full force and effect, and, subject to Section
5.15, together with customary endorsements naming the Collateral
Agent, for the benefit of Secured Parties, as additional insured
and lender’s loss payee thereunder to the extent required
under Section 5.5.

 

(f)           Flood
Documentation. Subject to Section 5.15, with respect to any
Real Estate Asset as to which a Lien is granted pursuant to the
Interim Order, the Requisite Lenders shall have satisfied clause
(g)(iii) of the definition of Collateral and Guarantee
Requirement.

 

(g)           Fees
and Expenses. The Borrower shall have paid to the
Administrative Agent and the Lenders all fees and expenses
(including Closing Date Fees, fees and expenses of Davis Polk,
Greenhill and counsel to the Administrative Agent, and other legal
fees, expenses and recording fees) and other amounts due and
payable on or prior to the Closing Date pursuant to the Credit
Documents. The Administrative Agent shall have received a fully
executed copy of the Administrative Agent Fee Letter.

 

 

 

57

 

 

 

 

(h)           [Reserved.]

 

(i)           Closing
Date Certificate. The Administrative Agent and the Lenders
shall have received the Closing Date Certificate, dated the Closing
Date and signed by an Authorized Officer of the Borrower, together
with all attachments thereto.

 

(j)           [Reserved.]

 

(k)           PATRIOT
Act. At least five days prior to the Closing Date, the
Lenders and the Administrative Agent shall have received all
documentation and other information required by bank regulatory
authorities under applicable “know-your-customer” and
anti-money laundering rules and regulations, including the PATRIOT
Act.

 

(l)           Initial
DIP Budget and Projections of EBITDA and Monthly Recurring
Revenue. The Administrative Agent shall have received the
(i) Initial DIP Budget, in form and substance reasonably
satisfactory to the Requisite Lenders and (ii) projected monthly
balance sheets, income statements and statements of cash flows,
EBITDA and Monthly Recurring Revenue of the Credit Parties for the
period ending seven months after the Closing Date, in each case as
to the projections, with the results and assumptions set forth in
all of such projections in form and substance reasonably
satisfactory to the Requisite Lenders.

 

(m)           Petition
Date. The Petition Date shall have occurred, and the
Borrower and each Guarantor shall be a debtor and
debtor-in-possession in the Cases.

 

(n)           Restructuring
Support Agreement. The Restructuring Support Agreement shall
be effective and binding in accordance with its terms, and no
“Lender Termination Event” or “Company
Termination Event” (as each is defined in the Restructuring
Support Agreement) shall have occurred and be continuing, and no
event that with the passage of time or delivery of notice would
constitute such a Lender Termination Event or Company Termination
Event shall have occurred and be continuing.

 

(o)           Bankruptcy
Related Items.

 

(i)             The
Cases of any of the Debtors shall have not been dismissed or
converted to cases under Chapter 7 of the Bankruptcy
Code.

 

(ii)             A
motion, in form and substance reasonably satisfactory to the
Lenders (and with respect to any provision that affects the rights
or duties of any Agent, the Administrative Agent), seeking approval
of the DIP Term Facility, shall have been filed in each of the
Cases within one (1) day of the Petition Date.

 

(iii)             All
“first day” orders and all related pleadings intended
to be entered on or prior to the Interim Order Entry Date shall
have been entered by the Bankruptcy Court and shall be in form and
substance reasonably acceptable to the Requisite Lenders, it being
understood that drafts approved by counsel to the Requisite Lenders
prior to the Petition Date are acceptable.

 

 

 

58

 

 

 

 

(iv)             The
Borrower shall have made no payments after the Petition Date on
account of any Indebtedness arising prior to the Petition Date
unless such payment is made (i) with the consent of the Requisite
Lenders in their sole discretion or (ii) pursuant to “first
day” orders reasonably acceptable to the Requisite
Lenders.

 

(v)             No
trustee under Chapter 7 or Chapter 11 of the Bankruptcy Code or
examiner with expanded powers shall have been appointed in any of
the Cases.

 

(p)           No
Material Adverse Effect. No change in the business, assets,
management, operations, financial condition or prospects of the
Borrower and its Subsidiaries, other than the filing of the Cases,
shall have occurred since the Petition Date, which change has had
or would reasonably be expected to have a Material Adverse
Effect.

 

(q)           No
Action. Except for the Cases or as disclosed on Schedule
4.9, there shall exist no unstayed action, suit,
investigation, litigation or proceeding pending or (to the
knowledge of the Credit Parties) threatened in any court or before
any arbitrator or governmental instrumentality (other than the
Cases) that would reasonably be expected to have a Material Adverse
Effect.

 

(r)           Interim
Order. The Interim Order Entry Date shall have occurred not
later than five (5) calendar days following the Petition Date, and
the Interim Order shall be in full force and effect and shall not
have been vacated or reversed, shall not be subject to a stay, and
shall not have been modified or amended in any respect without the
prior written consent of the Requisite Lenders or the
Administrative Agent (with the consent of the Requisite Lenders),
and the Administrative Agent shall have received a certified copy
of the Interim Order entered by the Bankruptcy Court.

 

(s)           No
Default. No Default or Event of Default shall exist, or
would result from such Borrowing or from the application of the
proceeds thereof.

 

(t)           Representation
and Warranties. The representations and warranties of the
Borrower and each other Credit Party contained in Section 4 or any
other Credit Document shall be true and correct in all material
respects on and as of the date of the Closing Date; provided that, to the extent
that such representations and warranties specifically refer to an
earlier date, they shall be true and correct in all material
respects as of such earlier date; provided, further, that, any
representation and warranty that is qualified as to
“materiality”, “Material Adverse Effect” or
similar language shall be true and correct (after giving effect to
any qualification therein) in all respects on such respective
dates.

 

Each
Lender, by delivering its signature page to this Agreement, and
funding its Loans on the Closing Date, shall be deemed to have
acknowledged receipt of, and consented to and approved or accepted
or to be satisfied with, each Credit Document and each other
document required to be approved by, acceptable or satisfactory to
any Agent, the Requisite Lenders or any other Lenders, as
applicable, on the Closing Date.

 

3.2           Delayed
Draw Borrowing. The obligations
of the Lenders to make the Delayed Draw Loan hereunder shall not
become effective until the date on which each of the following
conditions is satisfied (or waived in accordance with Section
10.5):

 

 

 

59

 

 

 

 

(a)           The
Closing Date shall have occurred;

 

(b)           The
Borrower shall have paid to the Administrative Agent and the
Lenders all fees and expenses (including Closing Date Fees, fees
and expenses of Davis Polk, Greenhill and counsel to the
Administrative Agent, and other legal fees, expenses and recording
fees) and other amounts due and payable on or prior to the Final
Order Entry Date pursuant to the Credit Documents;

 

(c)           (x)
The DIP Term Funding Account shall have been opened, (y) the
Administrative Agent shall have received a fully-executed account
control agreement (to be in form and substance satisfactory to the
Collateral Agent and the Requisite Lenders) in favor of the
Collateral Agent covering the DIP Term Funding Account and (z) the
proceeds of the Delayed Draw Loans funded on the Delayed Draw
Borrowing Date (net of the fees described in Section 2.10(a)) shall
be deposited into the DIP Term Funding Account concurrently with
the making of such Delayed Draw Loans; and

 

(d)           All
conditions set forth in Section 3.3. shall have been
satisfied.

 

3.3           Each
Credit Extension. The obligation of
each Lender to make any Credit Extension on any Credit Date,
including the Closing Date, and the date of any Borrowing of a
Delayed Draw Loan is subject to the satisfaction (or waiver in
accordance with Section 10.5) of the following conditions
precedent:

 

(a)           the
Administrative Agent shall have received a fully completed and
executed Funding Notice;

 

(b)           The
representations and warranties of the Borrower and each other
Credit Party contained in Section 4 or any other Credit Document
shall be true and correct in all material respects on and as of the
date of the Credit Extension; provided that, to the extent
that such representations and warranties specifically refer to an
earlier date, they shall be true and correct in all material
respects as of such earlier date; provided, further, that, any
representation and warranty that is qualified as to
“materiality”, “Material Adverse Effect” or
similar language shall be true and correct (after giving effect to
any qualification therein) in all respects on such respective
dates;

 

(c)           (i)
with regard to any Credit Extension prior to the Final Order Entry
Date, the Interim Order Entry Date shall have occurred and the
Interim Order shall be in full force and effect, shall not have
been vacated or reversed, and shall not be subject to any stay and
(ii) with regard to any Credit Extension after the Closing Date,
the Final Order Entry Date shall have occurred and the Final Order
shall be in full force and effect, shall not have been vacated or
reversed, and shall not be subject to any stay;

 

(d)           with
regard to any Credit Extension after the Closing Date, all
“second day orders” approving on a final basis any
first day orders intended to be entered on or prior to the date of
entry of the Final Order shall have been entered by the Bankruptcy
Court, shall be reasonably acceptable to the Requisite Lenders,
shall be in full force and effect, shall not have been vacated or
reversed, shall not be subject to a stay and shall not have been
modified or amended other than as reasonably acceptable to the
Requisite Lenders (or the Administrative Agent at the direction of
the Requisite Lenders);

 

 

 

60

 

 

 

 

(e)           The
Restructuring Support Agreement shall be effective and binding in
accordance with its terms, and no “Lender Termination
Event” or “Company Termination Event” (as each is
defined in the Restructuring Support Agreement) shall have occurred
and be continuing, and no event that with the passage of time or
delivery of notice would constitute such a Lender Termination Event
or Company Termination Event shall have occurred and be continuing;
and

 

(f)           at
the time of and immediately after giving effect to such Credit
Extension, no Default or Event of Default shall have occurred and
be continuing or would result therefrom.

 

On the
date of any Credit Extension, the Borrower shall be deemed to have
represented and warranted that the conditions specified in Sections
paragraphs (b), (c) and (d) above have been satisfied.

 

SECTION
4.                                REPRESENTATIONS
AND WARRANTIES

 

In
order to induce the Agents and the Lenders to enter into this
Agreement and to make each Credit Extension to be made thereby,
each Credit Party represents and warrants to each Agent and each
Lender on the Closing Date and on each Credit Date as
follows:

 

4.1           Organization;
Requisite Power and Authority;
Qualification. Except as set
forth on Schedule
4.1, each of the Borrower and the Restricted Subsidiaries
(a) is duly organized, validly existing and in good standing under
the laws of its jurisdiction of organization, (b) has all requisite
power and authority (i) to own and operate its properties and
to carry on its business and operations as now conducted and (ii)
in the case of the Credit Parties, subject to the entry of the
Orders and the terms thereof, to execute and deliver the Credit
Documents to which it is a party and to perform the other
Transactions to be performed by it and (c) is qualified to do
business and in good standing under the laws of every jurisdiction
where its assets are located or where such qualification is
necessary to carry out its business and operations, except, in each
case referred to in clauses (a) (other than with respect to
the Borrower), (b)(i) and (c), where the failure so to be or so to
have, individually or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect.

 

4.2           Equity
Interests and Ownership. Schedule 4.2
sets forth, as of the Closing Date, the name and jurisdiction of
organization of, and the percentage of each class of Equity
Interests owned by the Borrower or any Subsidiary in, (a) each
Subsidiary and (b) each joint venture and other Person in which the
Borrower or any Subsidiary owns any Equity Interests, and
identifies each Designated Subsidiary. The Equity Interests owned
by any Credit Party in any Subsidiary have been duly authorized and
validly issued and, to the extent such concept is applicable, are
fully paid and non-assessable. Except as set forth on Schedule
4.2, as of the Closing Date (i) there are no Equity
Interests in any Restricted Subsidiary outstanding that upon
exercise, conversion or exchange would require the issuance by any
Restricted Subsidiary of any additional Equity Interests or other
Securities exercisable for, convertible into, exchangeable for or
evidencing the right to subscribe for or purchase any Equity
Interests in any Restricted Subsidiary and (ii) there are no
existing options, warrants, calls, rights, commitments or other
agreements to which the Borrower or any Restricted Subsidiary is a
party requiring the issuance by any Restricted Subsidiary of any
additional Equity Interests or other Securities exercisable for,
convertible into, exchangeable for or evidencing the right to
subscribe for or purchase any Equity Interests in any Restricted
Subsidiary.

 

4.3           Due
Authorization. Subject to the
entry of the Orders and the terms thereof, the Transactions to be
entered into by each Credit Party have been duly authorized by all
necessary corporate or other organizational and, if required,
stockholder, shareholder or other equityholder action on the part
of such Credit Party.

 

 

 

61

 

 

 

 

4.4           No
Conflict. The Transactions
do not and will not (a) other than violations arising as a result
of the commencement of the Cases, subject to the entry of the
Orders and the terms thereof, and except as otherwise excused by
the Bankruptcy Code, violate any applicable law, including any
order of any Governmental Authority, except to the extent any such
violation, individually or in the aggregate, would not reasonably
be expected to have a Material Adverse Effect, (b) violate the
Organizational Documents of the Borrower or any Restricted
Subsidiary, (c) other than violations arising as a result of the
commencement of the Cases and except as otherwise excused by the
Bankruptcy Code, violate or result (alone or with notice or lapse
of time, or both) in a default under any Contractual Obligation of
the Borrower or any Restricted Subsidiary, or give rise to a right
thereunder to require any payment, repurchase or redemption to be
made by the Borrower or any Restricted Subsidiary, or give rise to
a right of, or result in, any termination, cancelation or
acceleration or right of renegotiation of any obligation
thereunder, except to the extent any such violation, default, right
or result, individually or in the aggregate, would not reasonably
be expected to have a Material Adverse Effect, or (d) except
for Liens created under the Credit Documents, result in or require
the creation or imposition of any Lien on any asset of the Borrower
or any Restricted Subsidiary.

 

4.5           Governmental
Approvals. Subject to the
Orders and the terms thereof, the Transactions do not and will not
require any registration with, consent or approval of, notice to,
or other action by any Governmental Authority (other than the entry
of the Orders), except (a) such as have been obtained or made and
are in full force and effect, (b) filings and recordings with
respect to the Collateral necessary to perfect Liens created under
the Credit Documents, (c) filings and registrations under
applicable securities laws relating to the Disposition by the
Collateral Agent pursuant to the Pledge and Security Agreement of
Collateral that constitute Securities and (d) Post-Petition filings
with the SEC and applicable State PUCs relating to the Credit
Parties’ status as debtors and debtors-in-possession under
Chapter 11 of the Bankruptcy Code.

 

4.6           Binding
Obligation. Subject to the
Orders and the terms thereof, each Credit Document has been duly
executed and delivered by each Credit Party that is a party thereto
and is, subject to the Orders and the terms thereof, the legally
valid and binding obligation of such Credit Party, enforceable
against such Credit Party in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or limiting
creditors’ rights generally or by equitable principles
relating to enforceability (other than with respect to the
Debtors).

 

4.7           Historical
Financial Statements. The Historical
Borrower Financial Statements were prepared in conformity with GAAP
and present fairly, in all material respects, the consolidated
financial position of the Borrower and its Subsidiaries as of the
respective dates thereof and the consolidated results of operations
and cash flows of the Borrower and its Subsidiaries for each of the
periods then ended, subject, in the case of any such unaudited
financial statements, to changes resulting from normal year-end
audit adjustments and the absence of footnotes. Except as disclosed
on Schedule
4.10, as of the Closing Date, neither the Borrower nor any
Subsidiary has any contingent liability or liability for Taxes,
long-term lease or unusual forward or long-term commitment that is
not reflected in the Historical Borrower Financial Statements
or the notes thereto and
that, in any such case, is material in relation to the business,
operations, assets or financial condition of the Borrower and the
Subsidiaries, taken as a whole.

 

4.8           No
Material Adverse Effect. Since the
Petition Date, there has been no event or condition that has had,
or would reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect.

 

 

 

62

 

 

4.9           Adverse
Proceedings.
Except for the Cases or as disclosed on Schedule 4.9, there are no
Adverse Proceedings that (a) individually or in the aggregate
would reasonably be expected to have a Material Adverse Effect or
(b) in any manner question the validity or enforceability of any of
the Credit Documents or otherwise involve any of the Credit
Documents or the Transactions.

 

4.10           Payment
of Taxes. Except as
disclosed on Schedule
4.10 or otherwise permitted under Section 5.3, all Tax
returns and reports of the Borrower and its Subsidiaries required
to be filed by any of them have been timely filed, and all Taxes
shown on such Tax returns to be due and payable, and all
assessments, fees and other governmental charges upon the Borrower
and the Subsidiaries and upon their properties, income, businesses
and franchises that are due and payable, have been paid when due
and payable, except (a) Taxes that are being contested in good
faith by appropriate proceedings and for which the Borrower or such
Subsidiary, as applicable, has set aside on its books reserves with
respect thereto to the extent required by GAAP, (b) to the extent
that the failure to do so would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect
or (c) Taxes that need not be paid pursuant to an order of the
Bankruptcy Court or pursuant to the Bankruptcy Code.

 

4.11           Properties.
(a) Title. The
Borrower and each Restricted Subsidiary has (i) good, sufficient
and marketable title to (in the case of fee interests in real
property), (ii) valid leasehold interests in (in the case of
leasehold interests in real or personal property), (iii) good and
marketable title to, or valid licensed rights in (in the case of
Intellectual Property) and (iv) good title to (in the case of all
other personal property) all of their material assets reflected in
the Historical Borrower Financial Statements, or, after the first
delivery thereof, in the consolidated financial statements of the
Borrower most recently delivered pursuant to Section 5.1, in
each case except for assets disposed of since the date of such
financial statements in the ordinary course of business or as
otherwise permitted by this Agreement and except for Permitted
Liens and defects that, individually or in the aggregate, do not
materially detract from the value of the affected property or
interfere with the ordinary conduct of business of the Borrower or
any Restricted Subsidiary.

 

(b)           Real
Estate. Set forth on Schedule
4.11(b) is true and complete list, as of the Closing Date,
of all Real Estate Assets owned in fee by any Credit Party,
identifying each Material Real Estate Asset, if any, and the proper
jurisdiction for the filing of a Mortgage in respect
thereof.

 

 

 

63

 

 

 

 

(c)           Intellectual
Property. The Borrower and each Restricted Subsidiary owns,
or has a license to use, all Intellectual Property that is
necessary for the conduct of its business as currently conducted or
proposed to be conducted, and without conflict with the rights of
any other Person, except to the extent any such conflict,
individually or in the aggregate, would not reasonably be expected
to have a Material Adverse Effect. No Intellectual Property used by
the Borrower or any Restricted Subsidiary in the operation of its
business infringes upon the rights of any other Person, except for
any such infringements that, individually or in the aggregate,
would not reasonably be expected to have a Material Adverse Effect.
No claim, action, suit, investigation, litigation or proceeding
regarding any Intellectual Property owned or used by the Borrower
or any Restricted Subsidiary is pending against or, to the
knowledge of the Borrower or any Restricted Subsidiary, threatened
in writing against or affecting the Borrower or any Restricted
Subsidiary (i) challenging the validity or enforceability of (A)
any Intellectual Property owned by such Borrower or Restricted
Subsidiary, or (B) Borrower or Restricted Subsidiary’s
ownership of such Intellectual Property, (ii) alleging that the
operation of the Borrower or any Restricted Subsidiary’s
business, including Borrower or any Restricted Subsidiary’s
use of any Intellectual Property owned by such Borrower or
Restricted Subsidiary, infringes, misappropriates, dilutes or
otherwise violates any other intellectual property rights of any
Person, or (iii) alleging that the Intellectual Property is being
licensed or sublicensed in violation or contravention of the terms
of any license or other agreement, that, individually or in the
aggregate, would reasonably be expected to have a Material Adverse
Effect. To the knowledge of the Borrower or any Restricted
Subsidiary, no Person is engaging in any activity that infringes,
misappropriates, dilutes or otherwise violates the Intellectual
Property owned by such Borrower or Restricted Subsidiary that,
individually or in the aggregate, would reasonably be expected to
have a Material Adverse Effect.

 

4.12           Environmental
Matters. Except with
respect to any matters that, individually or in the aggregate,
would not reasonably be expected to have a Material Adverse Effect,
neither the Borrower nor any Subsidiary (a) has failed to
comply with any Environmental Law or to obtain, maintain or comply
with any permit, license or other approval required under any
Environmental Law, (b) has become subject to any Environmental
Liability, (c) has received notice of any claim with respect
to any Environmental Liability or (d) knows of any basis for
any Environmental Liability.

 

4.13           No
Defaults. No Default or
Event of Default has occurred and is continuing.

 

4.14           Investment
Company Act. None of the
Credit Parties is a “registered investment company” or
a company “controlled” by a “registered
investment company” or a “principal underwriter”
of a “registered investment company” as such terms are
defined in the Investment Company Act of 1940.

 

4.15           Federal
Reserve Regulations. (a) None of the
Borrower or the Subsidiaries is engaged principally, or as one of
its important activities, in the business of purchasing or carrying
Margin Stock or extending credit for the purpose of purchasing or
carrying Margin Stock.

 

(b)           No
portion of the proceeds of any Credit Extension will be used,
directly or indirectly, for any purpose that entails a violation
(including on the part of any Lender) of any of the regulations of
the Board of Governors, including Regulations U and X. Not more
than 25% of the value of the assets of the Borrower and the
Restricted Subsidiaries subject to any restrictions on the sale,
pledge or other Disposition of assets under this Agreement, any
other Credit Document or any other agreement to which any Lender or
Affiliate of a Lender is party will at any time be represented by
Margin Stock.

 

 

 

64

 

 

 

 

4.16           Employee
Benefit Plans. The Borrower,
each Restricted Subsidiary and each of their respective ERISA
Affiliates is in compliance with all applicable provisions and
requirements of ERISA and the Internal Revenue Code and the
regulations and published interpretations thereunder with respect
to each Employee Benefit Plan, and has performed all its
obligations under each Employee Benefit Plan, except where such
failure to comply or perform, individually or in the aggregate,
would not reasonably be expected to have a Material Adverse Effect.
Each Employee Benefit Plan which is intended to qualify under
Section 401(a) of the Internal Revenue Code has received a
favorable determination letter or opinion letter from the IRS
indicating that such Employee Benefit Plan is so qualified and
nothing has occurred subsequent to the issuance of such
determination letter or opinion letter which would cause such
Employee Benefit Plan to lose its qualified status. No liability to
the PBGC (other than required premium payments), the IRS, any
Employee Benefit Plan or any trust established under Title IV of
ERISA has been or is expected to be incurred by the Borrower, any
Restricted Subsidiary or any of their respective ERISA Affiliates,
except as would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect. No ERISA Event or
Foreign Plan Event has occurred or is reasonably expected to occur,
except as would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect. Except to the extent
required under Section 4980B of the Internal Revenue Code or
similar state laws, no Employee Benefit Plan provides health or
welfare benefits (through the purchase of insurance or otherwise)
for any retired or former employee of the Borrower, any Restricted
Subsidiary or any of their respective ERISA Affiliates. The present
value of the aggregate benefit liabilities under each Pension Plan
sponsored, maintained or contributed to by the Borrower, any
Restricted Subsidiary or any of their respective ERISA Affiliates
(determined as of the end of the most recent plan year on the basis
of assumptions used for purposes of Accounting Standards
Codification Topic 715), did not exceed the aggregate current value
of the assets of such Pension Plan. As of the most recent valuation
date for each Multiemployer Plan for which the actuarial report is
available, the potential liability of the Borrower, the Restricted
Subsidiaries and their respective ERISA Affiliates for a complete
withdrawal from such Multiemployer Plan (within the meaning of
Section 4203 of ERISA), when aggregated with such potential
liability for a complete withdrawal from all Multiemployer Plans,
based on information available pursuant to Section 101(l) of ERISA
is zero. The Borrower, each Restricted Subsidiary and each of their
respective ERISA Affiliates is not in material
“default” (as defined in Section 4219(c)(5) of ERISA)
with respect to payments to a Multiemployer Plan. None of the
Borrower or any of its Subsidiaries is an entity deemed to hold
“plan assets” (within the meaning of 29 CFR §
2510.3-101, as modified by Section 3(42) of ERISA).

 

4.17           [Reserved].

 

4.18           Compliance
with Laws. Except as
disclosed on Schedule
4.18 or as excused by the Bankruptcy Code, the Borrower and
each Subsidiary is in compliance with all applicable laws,
including all orders and other restrictions imposed by any
Governmental Authority, in respect of the conduct of its business
and the ownership and operation of its properties (including
compliance with all applicable Environmental Laws), except where
such failure to comply, individually or in the aggregate, would not
reasonably be expected to have a Material Adverse
Effect.

 

4.19           Disclosure.
None of the Initial DIP Budget, any other documents, certificates
or statements or any other written information (other than
financial projections (including financial estimates, budgets,
forecasts and other forward-looking information) and information of
general economic or industry-specific nature) furnished to any
Agent or any Lender by or on behalf of the Borrower or any
Subsidiary in connection with the negotiation of or pursuant to
this Agreement or any other Credit Document or otherwise in
connection with the transactions contemplated hereby or thereby,
when taken as a whole, contains any untrue statement of a material
fact or omits to state a material fact necessary in order to make
the statements contained therein not materially misleading in light
of the circumstances under which they were made (after giving
effect to all supplements theretofore provided); provided that, with respect to
financial projections, financial estimates, budgets, forecasts and
other forward-looking information, the Credit Parties represent
only that such information was prepared in good faith based upon
estimates and assumptions believed by the Credit Parties to be
reasonable at the time such information is so furnished (it being
understood that such information is not a guarantee of financial or
other performance and actual results may differ therefrom and that
such differences may be material). There are no facts known to the
Borrower or any Subsidiary (other than matters of a general
economic or industry-specific nature) that, individually or in the
aggregate, would reasonably be expected to have a Material Adverse
Effect and that have not been disclosed in such documents,
certificates, statements or other information.

 

4.20           Collateral
Matters. (a) Subject to
the entry of the Orders and the terms thereof, the Pledge and
Security Agreement, upon execution and delivery thereof by the
parties thereto, will create in favor of the Collateral Agent, for
the benefit of the Secured Parties, a valid and enforceable
security interest in the Collateral (as defined therein) and when
financing statements in appropriate form are filed in the
applicable filing offices, the security interest created under the
Pledge and Security Agreement will constitute a fully perfected
security interest in all right, title and interest of the Credit
Parties in the Collateral (as defined therein) to the extent
perfection can be obtained by filing UCC financing statements,
prior and superior in right to any other Person, but subject to
Permitted Liens.

 

 

 

65

 

 

 

 

(b)           Each
Mortgage, upon execution and delivery thereof by the parties
thereto, will create in favor of the Collateral Agent, for the
benefit of the Secured Parties, a legal, valid and enforceable
security interest in all the applicable mortgagor’s right,
title and interest in and to the Real Estate Asset subject thereto
and the proceeds thereof, and when the Mortgages have been filed in
the jurisdictions specified therein, the Mortgages will constitute
fully perfected security interests in all right, title and interest
of the mortgagors in the Real Estate Assets subject thereto and the
proceeds thereof, prior and superior in right to any other Person,
but subject to the Permitted Liens.

 

(c)           Upon
the recordation of the Intellectual Property Security Agreements
with the United States Patent and Trademark Office or the United
States Copyright Office, as applicable, and the filing of the
financing statements referred to in Section 4.20(a), the security
interest created under the Pledge and Security Agreement will
constitute a fully perfected security interest in all right, title
and interest of the Credit Parties in the Intellectual Property in
which a security interest may be perfected by filing in the United
States Patent and Trademark Office or United States Copyright
Office, in each case prior and superior in right to any other
Person, but subject to Permitted Liens (it being understood that
subsequent recordings in the United States Patent and Trademark
Office or the United States Copyright Office may be necessary to
perfect a security interest in such Intellectual Property acquired
by the Credit Parties after the Closing Date (the
“After-Acquired Intellectual
Property”)).

 

(d)           Each
Collateral Document, other than any Collateral Document referred to
in the preceding paragraphs of this Section 4.20, upon execution
and delivery thereof by the parties thereto and the making of the
filings and taking of the other actions provided for therein, will
be effective under applicable law to create in favor of the
Collateral Agent, for the benefit of the Secured Parties, a valid
and enforceable security interest in the Collateral subject
thereto, and will constitute a fully perfected security interest in
all right, title and interest of the Credit Parties in the
Collateral subject thereto to the extent perfection may be achieved
by making the filings and taking the other actions provided for
therein, prior and superior to the rights of any other Person,
except for rights secured by Permitted Liens.

 

4.21           Sanctioned
Persons; Anti-Corruption Laws; PATRIOT
Act.
None of the Borrower or any of its Subsidiaries or any of their
respective directors, officers or, to the knowledge of the Borrower
or any Subsidiary, employees, agents or Affiliates is a Sanctioned
Person or otherwise the subject of any sanctions or economic
embargoes administered or enforced by the US Department of State or
the US Department of Treasury (including OFAC), the United
Nations Security Council, the European Union, any European Union
member state, Her Majesty’s Treasury of the United Kingdom or
any other applicable sanctions authority (collectively,
“Sanctions”, and
the associated laws, rules, regulations and orders, collectively,
“Sanctions
Laws”). Each of the Borrower and its Subsidiaries and
their respective directors, officers, and, to the knowledge of the
Borrower or any Subsidiary, employees, agents or Affiliates is in
compliance, in all material respects, with (a) all Sanctions
Laws, (b) the United States Foreign Corrupt Practices Act of 1977,
the Bribery Act 2010 of the United Kingdom and any other applicable
anti-bribery or anti-corruption laws, rules, regulations and orders
(collectively, “Anti-Corruption Laws”) and
(c) the PATRIOT Act and any other applicable terrorism and
money laundering laws, rules, regulations and orders. No part of
the proceeds of the Loans will be used, directly or indirectly, (i)
for the purpose of financing any activities or business of or with
any Person or in any country or territory that at such time is the
subject of any Sanctions, (ii) for any payments to any governmental
official or employee, political party, official of a political
party, candidate for political office, or anyone else acting in an
official capacity, in order to obtain, retain or direct business or
obtain any improper advantage, in violation of any Anti-Corruption
Law or (iii) in any manner that would result in the violation of
any Sanctions Laws applicable to any party hereto.

 

 

 

66

 

 

 

 

4.22           Communications
Regulatory Matters.

 

(a)           Except
as disclosed on Schedule
4.22, the businesses of the Borrower and its Subsidiaries
are being conducted in compliance with all Communications Laws,
except as would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect. The Borrower and the
Restricted Subsidiaries possess all Licenses required to conduct
their businesses in the ordinary course, and all such Licenses are
in full force and effect.

 

(b)           Except
as disclosed on Schedule
4.22, there is no condition, event or occurrence existing,
nor, to the knowledge of the Borrower or any Subsidiary, is there
any proceeding being conducted or threatened by any Governmental
Authority, which would reasonably be expected to cause the
termination, revocation, forfeiture, suspension, cancellation,
adverse modification or non-renewal of any of the Licenses held by
the Borrower or any Subsidiary, or the imposition of any penalty or
fine by any Governmental Authority with respect to any such
Licenses or the Borrower or any Subsidiary, in each case which,
individually or in the aggregate, would reasonably be expected to
have a Material Adverse Effect.

 

(c)           Except
as disclosed on Schedule
4.22, there is no (i) outstanding decree, decision,
judgment, or order that has been issued by the FCC or a State PUC
against the Borrower or any Subsidiary or any License held by the
Borrower or any Subsidiary or (ii) notice of violation, order to
show cause, complaint, investigation, inquiry or other
administrative or judicial proceeding pending or, to the knowledge
of the Borrower or any Subsidiary, threatened by or before the FCC
or a State PUC against the Borrower, any Subsidiary or any License
held by the Borrower or any Subsidiary that, assuming an
unfavorable decision, ruling or finding, in the case of each of (i)
or (ii) above, would, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect.

 

(d)           Except
as disclosed on Schedule
4.22, each of the Borrower and the Subsidiaries have filed
with the FCC and State PUCs all necessary reports, documents,
instruments, information or applications required to be filed
pursuant to the Communications Laws, and have paid all fees,
assessments and other charges required to be paid pursuant to the
Communications Laws, except as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse
Effect.

 

(e)           Except
(x) as has been obtained or will be obtained prior to the Closing
Date and (y) for Post-Petition filings with the SEC and applicable
State PUCs relating to the Credit Parties’ status as debtors
and debtors-in-possession under Chapter 11 of the Bankruptcy Code,
no consent, approval, authorization, order or waiver of, or filing
with, the FCC, the State PUCs or any other Governmental Authority
is required under the Communications Laws to be obtained or made by
the Borrower or any Subsidiary for (i) the execution, delivery and
performance of this Agreement or the other Credit Documents or (ii)
the consummation of the Transactions.

 

 

 

67

 

 

 

 

4.23           Cases;
Orders.

 

(a)           The
Cases were commenced on the Petition Date in accordance with
applicable Laws and proper notice thereof was given for (i) the
motion seeking approval of the Credit Documents and the Interim
Order and, when applicable, Final Order, (ii) the hearing for the
entry of the Interim Order, and (iii) the hearing for the entry of
the Final Order (provided that notice of the final hearing will be
given as soon as reasonably practicable after such hearing has been
scheduled).

 

(b)           After
the entry of the Interim Order, and pursuant to and to the extent
permitted in the Interim Order and the Final Order, the Obligations
will constitute allowed administrative expense claims in the Cases
having priority over all administrative expense claims and
unsecured claims against the Debtors now existing or hereafter
arising, of any kind whatsoever, including all administrative
expense claims of the kind specified in Sections 105, 326, 330,
331, 503(b), 506(c), 507(a), 507(b), 546(c), 726, 1114 or any other
provision of the Bankruptcy Code or otherwise, as provided under
Section 364(c)(l) of the Bankruptcy Code, subject to (i) the
Carve-Out and (ii) the priorities set forth in the Interim Order or
Final Order, as applicable.

 

(c)           After
the entry of the Interim Order and pursuant to and to the extent
provided in the Interim Order and the Final Order, the Obligations
will be secured by a valid and perfected Lien on all of the
Collateral subject, as to priority, to the extent set forth in the
Interim Order or the Final Order.

 

(d)           The
Interim Order (with respect to the period on and after entry of the
Interim Order and prior to entry of the Final Order) or the Final
Order (with respect to the period on and after entry of the Final
Order), as the case may be, is in full force and effect and has not
been reversed, stayed (whether by statutory stay or otherwise),
vacated, or, without the Administrative Agent’s and Requisite
Lenders’ reasonable consent, modified or amended. The Credit
Parties are in compliance in all material respects with the Interim
Order (with respect to the period on and after entry of the Interim
Order and prior to entry of the Final Order) or the Final Order
(with respect to the period on and after entry of the Final
Order).

 

(e)           Notwithstanding
the provisions of Section 362 of the Bankruptcy Code, and subject
to the applicable provisions of the Interim Order or the Final
Order, as the case may be, upon the Termination Date (whether by
acceleration or otherwise) of any of the Obligations, the
Administrative Agent, the Collateral Agent and Lenders shall be
entitled to immediate payment of such Obligations and, subject to
Section 8.1, to enforce the remedies provided for hereunder or
under applicable Laws, without further notice, motion or
application to, hearing before, or order from, the Bankruptcy
Court.

 

SECTION
5.                                AFFIRMATIVE
COVENANTS

 

Until
the Commitments shall have expired or been terminated and the
principal of and interest on each Loan and all fees payable
hereunder shall have been paid in full in Cash, each Credit Party
covenants and agrees with the Agents and the Lenders
that:

 

5.1           Financial
Statements and Other Reports. The Borrower will
deliver to the Administrative Agent for distribution to the Lenders
and, where applicable, to the Lenders:

 

 

 

68

 

 

 

 

(a)           Annual
Financial Statements. As soon as available, and in any event
within 75 days after the Petition Date, the consolidated balance
sheet of the Borrower and the Subsidiaries as of the end of Fiscal
Year 2018 and the related consolidated statements of operations,
stockholders’ equity and cash flows of the Borrower and the
Subsidiaries for such Fiscal Year, setting forth in each case in
comparative form the corresponding figures for the previous Fiscal
Year, together with a report thereon of EisnerAmper LLP or an
independent registered public accounting firm of recognized
national standing (which report shall not contain any
qualification, exception or emphasis as to the scope of audit), and
shall state that such consolidated financial statements present
fairly, in all material respects, the consolidated financial
position of the Borrower and its Subsidiaries as of the dates
indicated and the consolidated results of operations and cash flows
of the Borrower and its Subsidiaries for the periods indicated in
conformity with GAAP applied on a basis consistent with prior years
(except as otherwise disclosed in such financial statements) and
that the examination by such accounting firm in connection with
such consolidated financial statements has been made in accordance
with generally accepted auditing standards;

 

(b)           Quarterly
Financial Statements. As soon as available, and in any event
within 45 days after the end of each of the first three Fiscal
Quarters of each Fiscal Year (and, with respect to the Fiscal
Quarters ended March 31, 2019 and June 30, 2019, August 15, 2019),
the consolidated balance sheet of the Borrower and the Subsidiaries
as of the end of such Fiscal Quarter and the related consolidated
statements of operations, stockholders’ equity and cash flows
of the Borrower and its Subsidiaries for such Fiscal Quarter (in
the case of such statements of operations) and for the period from
the beginning of the then current Fiscal Year to the end of such
Fiscal Quarter, setting forth in each case in comparative form the
corresponding figures for the corresponding periods of (or, in the
case of the balance sheet, as of the end of) the previous Fiscal
Year, together with a Financial Officer Certification and an
auditors review letter with respect thereto in a form reasonably
acceptable to the Requisite Lenders or their advisors;

 

(c)           Monthly
Financial Statements. As soon as available, and in any event
within eleven (11) Business Days after the end of each fiscal
month, the consolidated balance sheet of the Borrower and the
Subsidiaries as of the end of such fiscal month and the related
consolidated statements of operations, stockholders’ equity
and cash flows of the Borrower and its Subsidiaries for such fiscal
month (in the case of such statements of operations) and for the
period from the beginning of the then current Fiscal Year to the
end of such fiscal month, setting forth in each case in comparative
form the corresponding figures for the corresponding periods of
(or, in the case of the balance sheet, as of the end of) the
previous Fiscal Year, together with a Financial Officer
Certification with respect thereto and an associated monthly key
performance indices report for such fiscal month and a comparison
of such financials against the applicable projections provided
pursuant to Section 3.1(l)(ii);

 

(d)           Statements
of Reconciliation after Change in Accounting Principles. If,
as a result of any change in GAAP or in the application thereof
since the date of the most recent balance sheet delivered pursuant
to Section 5.1(a), 5.1(b) or 5.1(c) (or, prior to the first
such delivery, since March 31, 2019), the consolidated financial
statements of the Borrower delivered pursuant to Section 5.1(a),
5.1(b) or 5.1(c) will differ in any material respect from the
consolidated financial statements that would have been delivered
pursuant to such Section had no such change occurred, then,
together with the first delivery of such financial statements after
such change, one or more statements of reconciliation specifying in
reasonable detail the effect of such change on such financial
statements, including those for the prior period;

 

 

 

69

 

(e)           Notice
of Default and Material Adverse Effect. Promptly upon any
officer of the Borrower or any Restricted Subsidiary obtaining
knowledge of any event or condition set forth below, a certificate
of an Authorized Officer of the Borrower setting forth the details
of such event or condition and any action the Borrower or any
Restricted Subsidiary has taken, is taking or proposes to take with
respect thereto:

 

(i)             the
occurrence of any Default or Event of Default; or

 

(ii)             any
event or condition that has had, or would reasonably be expected to
have, individually or in the aggregate, a Material Adverse
Effect;

 

(f)           Notice
of Adverse Proceedings. Promptly upon any officer of the
Borrower or any Restricted Subsidiary obtaining knowledge of (i)
any Adverse Proceeding that would reasonably be expected to have a
Material Adverse Effect or that in any manner questions the
validity or enforceability of any of the Credit Documents or
otherwise involves any of the Credit Documents or (ii) any material
and adverse development in any Adverse Proceeding referred to in
clause (i) above, in each case where such development has not
previously been disclosed in writing by the Borrower to the
Administrative Agent and the Lenders, a certificate of an
Authorized Officer of the Borrower setting forth the details of
such Adverse Proceeding or development;

 

(g)           Compliance
Certificate. As soon as available, and in any event within
eleven (11) days after the end of each fiscal month, a
Compliance Certificate, duly executed by an Authorized Officer of
the Borrower and evidencing compliance with the covenants set forth
in Section 6.7(a), (b) and (c).

 

(h)           Employee
Benefit Plans. (i) Promptly upon any officer of the Borrower
or any Restricted Subsidiary obtaining knowledge of the occurrence
of any ERISA Event or Foreign Plan Event, a written notice
specifying the nature thereof, what action the Borrower, any
Restricted Subsidiary or any of their respective ERISA Affiliates
has taken, is taking or proposes to take with respect thereto and,
when known, any action taken or threatened by the IRS, the
Department of Labor, the PBGC or any other Governmental Authority
with respect thereto; and (ii) with reasonable promptness
after written request by the Administrative Agent, copies of
(A) all material written notices received by the Borrower, any
Restricted Subsidiary or any of their respective ERISA Affiliates
from a Multiemployer Plan sponsor concerning an ERISA Event and
(B) copies of such other material documents or governmental
reports or filings relating to any Employee Benefit Plan with
respect to which such ERISA Event has occurred as the
Administrative Agent or the Requisite Lenders may reasonably
request in writing;

 

(i)           [Reserved];

 

(j)           Information
Regarding Credit Parties and Collateral. Prompt written
notice of any change in (i) any Credit Party’s legal
name, (ii) any Credit Party’s form of organization,
(iii) any Credit Party’s jurisdiction of organization,
(iv) the location of the chief executive office of any Credit Party
and (v) any Credit Party’s Federal Taxpayer
Identification Number or state organizational identification
number;

 

(k)           Collateral
Verification. At any time upon the reasonable request of the
Administrative Agent or the Requisite Lenders, completed
Supplemental Collateral Questionnaire executed by an Authorized
Officer of the Borrower, together with all attachments contemplated
thereby;

 

 

 

70

 

 

 

 

(l)           Filed
or Distributed Information. Promptly upon their becoming
available, copies of all regular and periodic reports and all
registration statements and prospectuses, if any, filed by the
Borrower or any Restricted Subsidiary with the SEC or any
Governmental Authority performing similar functions (it being
understood and agreed that any filing of such documents with the
SEC or any other Governmental Authority that makes such documents
publicly available shall constitute delivery for purposes of this
clause (l)) ;

 

(m)           [Reserved];

 

(n)           Other
Information. Promptly after any request therefor, such other
information regarding the business, operations, assets, liabilities
(including contingent liabilities) and condition (financial or
otherwise) of the Borrower or any Subsidiary, or compliance with
the terms of any Credit Document, as the Administrative Agent or
any Lender (through the Administrative Agent) may reasonably
request;

 

(o)           Updated
DIP Budget. No later than by 5:00 p.m. (New York City time)
on the first Wednesday of each month after the Closing Date (or, to
the extent such Wednesday is not a Business Day, the next Business
Day thereafter), a DIP Budget covering the period beginning on the
first Business Day of the week in which it is delivered and ending
seven months after the Closing Date. Each DIP Budget delivered
after the Closing Date shall be subject to the consent of the
Requisite Lenders and no such DIP Budget shall be effective as the
“Approved
Budget” until so approved;

 

(p)           Budget
Variance Reports. No later than by 5:00 p.m. (New York City
time) on each Wednesday of every week (commencing with the first
Wednesday after the Closing Date) or, to the extent such day is not
a Business Day, the next Business Day thereafter, a Budget Variance
Report (Compliance) and a Budget Variance Report (Initial). Each
such report shall be certified by the chief financial officer of
the Borrower as being prepared in good faith and fairly presenting
in all material respects the information set forth
therein;

 

(q)           Additional
Reports. No later than by 5:00 p.m. (New York City time) on
each Wednesday of every week (commencing with the first Wednesday
following the Closing Date) or, to the extent such Wednesday is not
a Business Day, the next Business Day thereafter, (i) a Critical
Vendor Report and (ii) a Telecommunications Supplier Payables
Report;

 

(r)           Quality
of Earnings Report. No later than thirty-five (35) days
after the Petition Date, a due diligence quality of earnings report
prepared by a “big-four” nationally recognized
accounting firm or any other accounting firm reasonably acceptable
to the Requisite Lenders; and

 

(s)           Lingo
Reports. No later than by 5:00 p.m. (New York City time) on
each Wednesday of every week (commencing with the second Wednesday
following the Closing Date) or, to the extent such Wednesday is not
a Business Day, the next Business Day thereafter, an updated Lingo
Report.

 

 

 

71

 

 

 

 

The
Borrower and each Lender acknowledge that certain of the Lenders
may be Public Lenders and, if documents or notices required to be
delivered pursuant to this Section 5.1 or otherwise are being
distributed through the Platform, any document or notice that the
Borrower has indicated contains Private-Side Information will not
be posted on the portion of the Platform that is designated for
Public Lenders. The Borrower agrees to clearly designate all
information provided to any Agent by or on behalf of any Credit
Party that contains only Public-Side Information, and by doing so
shall be deemed to have represented that such information contains
only Public-Side Information. If the Borrower has not indicated
whether a document or notice delivered pursuant to this Section 5.1
contains Private-Side Information, the Administrative Agent
reserves the right to post such document or notice solely on the
portion of the Platform that is designated for Private
Lenders.

 

Information
required to be delivered pursuant to Section 5.1(a), 5.1(b) or
5.1(l) shall be deemed to have been delivered if such information,
or one or more annual or quarterly reports containing such
information, shall have been posted by the Administrative Agent on
the Platform or shall be available on the website of the SEC at
http://www.sec.gov or on the website of the Borrower at
http://www.fusionconnect.com, provided, in each case, that
the Borrower has notified the Administrative Agent that such
information is available on such website and, if requested by the
Administrative Agent, shall have provided hard copies to the
Administrative Agent. Information required to be delivered pursuant
to this Section 5.1 may also be delivered by electronic
communications pursuant to procedures approved by the
Administrative Agent. The Administrative Agent shall have no
obligation to request the delivery of or to maintain paper copies
of the documents referred to above, and in any event shall have no
responsibility to monitor compliance by the Borrower with this
Section 5.1. Each Lender shall be solely responsible for timely
accessing posted documents and maintaining its copies of such
documents.

 

5.2           Existence,
Licenses, Etc. The Borrower and
each Restricted Subsidiary will at all times preserve and keep in
full force and effect (a) its existence and (b) all rights,
franchises, licenses (including all Licenses) and permits necessary
for the ordinary conduct of the business of the Borrower and the
Restricted Subsidiaries; provided that (i) other
than in the case of clause (a) above with respect to the Borrower,
the foregoing shall not apply to the extent the failure to do so
would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect and (ii) the foregoing shall not
prohibit any transaction permitted under Section 6.8.

 

5.3           Payment
of Taxes. In accordance
with the Bankruptcy Code and except as disclosed on Schedule 5.3
and subject to any required approval by the Bankruptcy Court (it
being understood that no Debtor shall be obligated to make any
payments hereunder that may, in its reasonable judgment, result in
a violation of any applicable law, including the Bankruptcy Code,
without an order of the Bankruptcy Court authorizing such
payments), the Borrower and each Subsidiary will pay all Taxes (in
the case of any Debtor, solely to the extent arising after the
Petition Date) imposed upon it or any of its properties prior to
the time when any penalty or fine shall be incurred with respect
thereto; provided
that no such Tax need be paid if (a) it is being contested in
good faith by appropriate proceedings promptly instituted and
diligently conducted so long as an adequate reserve or other
appropriate provision, as shall be required in conformity with
GAAP, shall have been made therefor or (b) the failure to make
such payment would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse
Effect.

 

5.4           Maintenance
of Properties. (a) The Borrower
and each Restricted Subsidiary will maintain or cause to be
maintained in good repair, working order and condition, ordinary
wear and tear excepted, all properties used or useful in the
business of the Borrower and the Restricted Subsidiaries and from
time to time will make or cause to be made all appropriate repairs,
renewals and replacements thereof, in each case except where the
failure to do so would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse
Effect.

 

 

 

72

 

 

 

 

(b)           The
Borrower and each Restricted Subsidiary will take all actions
reasonably necessary to protect and maintain all Intellectual
Property used or useful in the business of the Borrower and the
Restricted Subsidiaries, including (i) protecting the secrecy and
confidentiality of the confidential information and trade secrets
of the Borrower and each Restricted Subsidiary by having and
enforcing a policy requiring all employees, consultants, licensees,
vendors and contractors to execute confidentiality agreements,
(ii) taking all actions reasonably necessary to ensure that
none of the trade secrets of the Borrower and any Restricted
Subsidiary shall fall or has fallen into the public domain and
(iii) protecting the secrecy and confidentiality of the source
code of all computer software programs and applications owned or
licensed by the Borrower and any Restricted Subsidiary by having
and enforcing a policy requiring any licensees of such source code
(including any licensees under any source code escrow agreement) to
enter into license agreements with appropriate use and
nondisclosure restrictions, except in each case where the failure
to take any such action, individually or in the aggregate, would
not reasonably be expected to have a Material Adverse
Effect.

 

5.5           Insurance.
The Borrower and the Restricted Subsidiaries will maintain or cause
to be maintained, with financially sound and reputable insurance
companies, such public liability insurance, third-party property
damage insurance, business interruption insurance and casualty
insurance with respect to liabilities, losses or damage in respect
of the assets and businesses of the Borrower and the Restricted
Subsidiaries as may customarily be carried or maintained under
similar circumstances by Persons of established reputation engaged
in the same or similar businesses operating in the same or similar
locations, in each case in such amounts (with no greater risk
retention), covering such risks and otherwise on such terms and
conditions as shall be customary for such Persons. Without limiting
the generality of the foregoing, the Borrower and the Restricted
Subsidiaries will maintain or cause to be maintained, with
financially sound and reputable insurance companies, flood
insurance with respect to each Flood Hazard Property that is
located in a community that participates in the Flood Program, in
each case in compliance with any applicable regulations of the
Board of Governors or other applicable law. Each such policy of
insurance maintained by or on behalf of the Credit Parties shall
(a) in the case of liability insurance policies (other than
workers’ compensation and other policies for which such
endorsements are not customary), name the Collateral Agent, for the
benefit of the Secured Parties, as an additional insured thereunder
and (b) in the case of business interruption and casualty insurance
policies, contain a lender’s loss payable clause or
endorsement, reasonably satisfactory in form and substance to the
Requisite Lenders, that names the Collateral Agent, for the benefit
of the Secured Parties, as the lender’s loss payee
thereunder, and shall provide that it shall not be canceled or not
renewed (i) by reason of nonpayment of premium upon not less than
10 days’ prior written notice thereof by the insurer to the
Collateral Agent (giving the Collateral Agent the right to cure
defaults in the payment of premiums) or (ii) for any other reason
upon not less than 30 days’ (or such shorter number of days
as may be agreed to by the Requisite Lenders or as may be the
maximum number of days permitted by applicable law) prior written
notice thereof by the insurer to the Collateral Agent.

 

5.6           Books
and Records; Inspections. The Borrower and
each Restricted Subsidiary will keep proper books of record and
accounts in which full, true and correct entries in conformity in
all material respects with GAAP and applicable law are made of all
dealings and transactions in relation to its business and
activities. The Borrower and each Restricted Subsidiary will permit
the Administrative Agent or any Lender (pursuant to a request made
through the Administrative Agent) (or their authorized
representatives, agents or advisors) to visit and inspect any of
its properties, to examine, copy and make extracts from its
financial and accounting records and to discuss its business,
operations, assets, liabilities (including contingent liabilities)
and condition (financial or otherwise) with its officers and
independent registered public accounting firm, all upon reasonable
notice and at such reasonable times during normal business hours
and as often as may reasonably be requested; provided, that so long as no
Default or Event of Default has occurred and is continuing such
visits and inspections to be limited to not more than one visit and
inspection for the Administrative Agent and all Lenders
(coordinated through the Administrative Agent) in any Fiscal
Year.

 

 

 

73

 

 

 

 

5.7           Weekly
Conference Calls. No less than once
per week, the Borrower shall make its senior management and its
financial advisor available via teleconference to discuss with the
Lenders and their advisors the financial position, cash flows,
variances and operations of the Debtors (with a question and answer
session).

 

5.8           Compliance
with Laws. Except as
otherwise excused by the Bankruptcy Code, the Borrower and each
Restricted Subsidiary will comply with all applicable laws
(including all Environmental Laws and all orders of any
Governmental Authorities), except (a) in the case of Sanctions
Laws, the PATRIOT Act and other applicable anti-terrorism and money
laundering laws and Anti-Corruption Laws, where failure to comply,
individually or in the aggregate, is not material and
(b) otherwise, where failure to comply, individually or in the
aggregate, would not reasonably be expected to have a Material
Adverse Effect.

 

5.9           Environmental
Matters. (a) Environmental Disclosure. The
Borrower will deliver to the Administrative Agent and the Lenders,
promptly upon the occurrence thereof, written notice describing in
reasonable detail (i) any material Release required to be
reported to any Governmental Authority under any applicable
Environmental Laws, (ii) any remedial action taken by the
Borrower, any Restricted Subsidiary or any other Person in response
to any Release of Hazardous Materials Activities or any
Environmental Liability that, individually or in the aggregate,
would reasonably be expected to have a Material Adverse Effect,
(iii) the Borrower or any Restricted Subsidiary obtaining
knowledge of any occurrence or condition on any Material Real
Estate Asset that would cause any Facility or any part thereof to
be subject to any material restrictions on the ownership,
occupancy, transferability or use thereof under any Environmental
Laws, and (iv) any Environmental Liability involving the
Borrower or any Restricted Subsidiary that, individually or in the
aggregate, would reasonably be expected to have a Material Adverse
Effect.

 

(b)           Environmental
Response. The Borrower will, and will cause each Restricted
Subsidiary to, take promptly any and all actions necessary to (i)
cure any violation of applicable Environmental Laws by the Borrower
or any Restricted Subsidiary that would reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect
and (ii) make an appropriate response to any claim pursuant to
Environmental Law against the Borrower or any Restricted Subsidiary
and discharge any obligations it may have to any Person thereunder
where failure to do so would reasonably be expected to have,
individually or in the aggregate, a Material Adverse
Effect.

 

5.10           Subsidiaries.
If any Person becomes a Restricted Subsidiary of the Borrower, the
Borrower will, as promptly as practicable, and in any event within
30 days (or such longer period as the Administrative Agent (acting
at the direction of the Requisite Lenders) may agree to in
writing), notify the Administrative Agent in writing thereof and
cause the Collateral and Guarantee Requirement to be satisfied with
respect to such Restricted Subsidiary (if such Restricted
Subsidiary is a Designated Subsidiary) and with respect to any
Equity Interests in or Indebtedness of such Restricted Subsidiary
owned by any Credit Party.

 

 

 

74

 

 

 

 

5.11           Additional
Collateral. The Borrower will
furnish to the Administrative Agent prompt written notice of
(a) the acquisition by any Credit Party of any owned Real
Estate Asset after the Closing Date, (b) the acquisition by
any Credit Party of After-Acquired Intellectual Property and (c)
the acquisition by any Credit Party of any other material assets
(other than any assets constituting Excluded Property) after the
Closing Date, other than any such assets constituting Collateral
under the Collateral Documents in which the Collateral Agent shall
have a valid, legal and perfected security interest (with the
priority contemplated by the applicable Collateral Document) upon
the acquisition thereof. The Borrower will, as promptly as
practicable and in any event within 60 days (or such longer period
as the Administrative Agent(acting at the direction of the
Requisite Lenders) may agree to in writing), cause the requirements
of clause (g) of the Collateral and Guarantee Requirement to be
satisfied with respect to such Material Real Estate Asset. With
respect to After-Acquired Intellectual Property, the Borrower will,
as promptly as practicable and in any event within 60 days (or such
longer period as the Administrative Agent (acting at the direction
of the Requisite Lenders) may agree to in writing), provide the
Administrative Agent written notice thereof, and, upon request of
the Administrative Agent, such Borrower shall promptly execute and
deliver to the Administrative Agent the appropriate Intellectual
Property Security Agreements or such other actions as the
Administrative Agent reasonably deems appropriate under applicable
Law to evidence or perfect its Lien on any Intellectual Property
Collateral, or otherwise to give effect to the intent of this
Agreement.

 

5.12           Further
Assurances. Each Credit Party
will execute any and all further documents, financing statements,
agreements and instruments, and take any and all further actions
(including the filing and recording of financing statements, any
necessary filings with the United States Patent and Trademark
Office and the United States Copyright Office (including with
respect to After-Acquired Intellectual Property) fixture filings,
mortgages, deeds of trust and other documents), that may be
required under any applicable law, or that the Administrative
Agent, the Collateral Agent or the Requisite Lenders may reasonably
request, to cause the Collateral and Guarantee Requirement to be
and remain satisfied at all times (to the extent applicable,
subject to the grace periods set forth in Sections 5.10 and 5.11)
or otherwise to effectuate the provisions of the Credit Documents,
all at the expense of the Credit Parties. All such after-acquired
assets (and any assets of a Restricted Subsidiary, as defined in
Section 5.10) shall automatically constitute fully perfected first
priority Liens on, and security interest in, all right, title and
interest of the Credit Parties, pursuant to and as described in
Section 5.16 and the Interim Order or the Final Order, as
applicable. The Borrower will provide to the Administrative Agent,
the Collateral Agent or the Requisite Lenders, from time to time
upon request, evidence reasonably satisfactory to the
Administrative Agent, the Collateral Agent or the Requisite
Lenders, as applicable, as to the perfection and priority of the
Liens created or intended to be created by the Collateral
Documents.

 

5.13           Maintenance
of Ratings. The Borrower will
use commercially reasonable efforts to obtain, within 30 days after
the Petition Date, and maintain continuously a public credit
facility rating from each of Moody’s and S&P in respect
of the New-Money Loans (in each case, with no requirement as to any
minimum rating).

 

5.14           Use
of Proceeds. (a) The Borrower
and the other Restricted Subsidiaries will use the proceeds of the
Loans made hereunder solely for the purposes set forth in
Section 2.5 and in compliance with
Section 4.15(b).

 

(b)           The
Borrower will not request any Loans and no part of the proceeds of
the Loans will be used, directly or indirectly, (i) for the purpose
of financing any activities or business of or with any Person or in
any country or territory that at such time is the subject of any
Sanctions, (ii) for any payments to any governmental official or
employee, political party, official of a political party, candidate
for political office, or anyone else acting in an official
capacity, in order to obtain, retain or direct business or obtain
any improper advantage, in violation of any Anti-Corruption Law or
(iii) in any manner that would result in the violation of any
Sanctions Laws applicable to any party hereto.

 

 

 

75

 

 

 

 

5.15           Post-Closing
Matters. The Credit
Parties shall satisfy each of the requirements set forth in
Schedule 5.15 on or before the date specified in Schedule 5.15 for
each such requirement, or such later date as may be agreed to by
the Administrative Agent (acting on the written instructions of the
Requisite Lenders, acting reasonably (which may be by
email)).

 

5.16           Priority
of Liens. Each Credit Party
hereby covenants, represents and warrants that, upon entry of the
Interim Order (and when applicable, the Final Order), its
Obligations hereunder and under the other Credit
Documents:

 

(a)           pursuant
to Section 364(c)(1) of the Bankruptcy Code, shall at all times
constitute an allowed superpriority claims pursuant to section
364(c)(1) of the Bankruptcy Code payable from and having recourse
to all prepetition and post-petition property of the Credit
Parties’ estates and all proceeds thereof (other than
Avoidance Actions, but, upon entry of the Final Order, including
Avoidance Proceeds), subject only to the Carve- Out to the extent
provided in the Interim Order or the Final Order, as
applicable;

 

(b)           pursuant
to Section 364(c)(2) of the Bankruptcy Code and subject to the
Carve-Out and the Senior Permitted Liens to the extent provided in
the Interim Order or Final Order, as applicable, shall be secured
by a perfected first priority Lien on all of the assets of the
Credit Parties that are not subject to (x) valid, perfected and
non-avoidable liens as of the Petition Date, or (y) valid Liens in
existence as of the Petition Date that are perfected subsequent to
the Petition Date as permitted by Section 546(b) of the Bankruptcy
Code;

 

(c)           pursuant
to section 364(d)(1) of the Bankruptcy Code and subject to the
Carve-Out and the Senior Permitted Liens to the extent provided in
the Interim Order or Final Order, as applicable, shall at all times
be secured by a valid, binding, continuing, enforceable,
fully-perfected senior priming security interest in and Lien upon
all of the assets of each Credit Party to the extent that such
assets are subject to existing Liens that secure the obligations of
the applicable Credit Party under the Existing Debt Documents
(subject to Prepetition Permitted Prior Liens (as defined in the
Interim Order and, when entered, the Final Order) and any liens
securing the claims of the Revolving Lenders and the Issuing Banks
(each as defined under the Existing First Lien Credit Agreement)
with respect to the Vector Subordinated Note Collateral (as defined
in the Interim Order and, when entered, the Final Order) arising
under the Existing First Lien Credit Agreement, any proceeds of
which shall be applied in a manner consistent with the Prepetition
First Lien Credit Documents (as defined in the Interim Order or the
Final Order, as applicable));

 

(d)           pursuant
to Section 364(c)(3) of the Bankruptcy Code and subject to the
Carve-Out and the Senior Permitted Liens to the extent provided in
the Interim Order or Final Order, shall be secured by a valid,
binding, continuing, enforceable, fully-perfected junior Lien on
all of the assets of the Credit Parties that are subject to (x)
valid, perfected and non-avoidable Liens in existence at the time
of the commencement of the Cases (other than the Liens securing the
obligations under the Existing Debt Documents) or (y) valid Liens
(other than the Liens securing the obligations under the Existing
Debt Documents) in existence at the time of such commencement that
are perfected subsequent to such commencement as permitted by
Section 546(b) of the Bankruptcy Code, with the priority of the
Liens in respect of the DIP Term Facility as set forth in the
Orders; and

 

(e)           for
the avoidance of doubt, the Collateral shall exclude Avoidance
Actions, but shall, subject to entry of the Final Order, include
Avoidance Proceeds.

 

 

 

76

 

 

 

 

(f)           (i)
Each Credit Party hereby confirms and acknowledges that, pursuant
to the Interim Order (and, when entered, the Final Order), the
Liens in favor of the Collateral Agent on behalf of and for the
benefit of the Secured Parties in all of the assets of the Credit
Parties shall be created and (to the extent the Interim Order (and,
when entered, the Final Order) is effective to perfect under local
law) perfected without the recordation or filing in any land
records or filing offices of any Mortgage, assignment or similar
instrument.

 

(g)           Each
Credit Party further agrees that, upon the request of the
Administrative Agent, in the exercise of the Requisite
Lenders’ reasonable business judgment, such Credit Party
shall execute and deliver to the Administrative Agent, as soon as
reasonably practicable following such request but in any event
within 30 days following such request (as may be extended by the
Administrative Agent, acting on the prior written instruction of
the Requisite Lenders), Mortgages in recordable form with respect
to the Real Estate Asset constituting Material Real Estate Asset
and identified by the Administrative Agent (acting at the direction
of the Requisite Lenders) on terms reasonably satisfactory to the
Administrative Agent and the Requisite Lenders, including any
ancillary deliverables described in clause (g) of the definition of
Collateral and Guarantee Requirement.

 

In the
event of a conflict between the terms and provisions of this
Agreement or any other Credit Document and any Order, the terms and
provisions of the applicable Order shall control.

 

5.17           [Reserved].

 

5.18           Bankruptcy
Related Matters. The Borrower will
and will cause each of the Guarantors and Restricted Subsidiaries
to:

 

(a)           cause
all proposed (i) “first day” orders, (ii) “second
day” orders, (iii) orders related to or affecting the Loans,
the Existing Debt and the Credit Documents, any other financing or
use of Cash Collateral, any sale or other disposition of Collateral
outside the ordinary course, cash management, adequate protection,
any plan of reorganization and/or any disclosure statement related
thereto, (iv) orders concerning the financial condition of the
Borrower or any of its Subsidiaries or other Indebtedness of the
Credit Parties or seeking relief under section 363, 365, 1113 or
1114 of the Bankruptcy Code or section 9019 of the Federal Rules of
Bankruptcy Procedure, (v) orders authorizing additional payments to
critical vendors and (vi) orders establishing procedures for
administration of the Cases or approving significant transactions
submitted to the Bankruptcy Court, in each case, proposed by the
Debtors to be in accordance with and permitted by the terms of this
Agreement and reasonably acceptable to the Requisite Lenders (and
(i) with respect to any provision that affects the rights or duties
of any Agent, the Administrative Agent and (ii) with respect to any
orders described in clause (v) above, acceptable to the Requisite
Lenders in their sole discretion) in all respects, it being
understood and agreed that the forms of orders approved by the
Requisite Lenders (and with respect to any provision that affects
the rights or duties of any Agent, the Administrative Agent) prior
to the Petition Date are in accordance with and permitted by the
terms of this Agreement and are reasonably acceptable in all
respects;

 

(b)           comply
in all material respects with each order entered by the Bankruptcy
Court in connection with the Cases;

 

 

 

77

 

 

 

 

(c)           comply
in a timely manner with their obligations and responsibilities as
debtors-in-possession under the Bankruptcy Code, the Bankruptcy
Rules, the Interim Order and the Final Order, as applicable, and
any other order of the Bankruptcy Court;

 

(d)           promptly
upon the Administrative Agent’s written request (acting at
the direction of the Requisite Lenders), each Credit Party shall
provide the Administrative Agent with copies of any informational
packages provided to potential bidders, draft agency agreements,
purchase agreements, status reports, and updated information
related to the sale or any other transaction and copies of any such
bids and any updates, modifications or supplements to such
information and materials;

 

(e)           provide
the Administrative Agent and the Lenders with reasonable access to
non-privileged information (including historical information) and
relevant personnel regarding strategic planning, cash and liquidity
management, operational and restructuring activities, in each case
subject to customary confidentiality restrictions;

 

(f)           deliver
to counsel to the Ad Hoc Group of Term Lenders and to counsel to
the Administrative Agent (to the extent practicable) promptly as
soon as available but no later than two (2) Business Days prior to
filing, copies of all proposed non-ministerial or administrative
pleadings, motions, applications, orders, financial information and
other documents to be filed by or on behalf of the Credit Parties
with the Bankruptcy Court in the Cases, or distributed by or on
behalf of the Credit Parties to any official or unofficial
committee appointed or appearing in the Cases or any other party in
interest, and shall consult in good faith with the Requisite
Lenders’ advisors regarding the form and substance of any
such document; and

 

(g)           if
not otherwise provided through the Bankruptcy Court’s
electronic docketing system, as soon as available, deliver to the
Administrative Agent (for distribution to the Lenders) and to
counsel to the Administrative Agent and Lenders promptly as soon as
available, copies of all final pleadings, motions, applications,
orders, financial information and other documents filed by or on
behalf of the Credit Parties with the Bankruptcy Court in the
Cases, or distributed by or on behalf of the Credit Parties to any
official or unofficial committee appointed or appearing in the
Cases.

 

SECTION
6.                                NEGATIVE
COVENANTS

 

Until
the Commitments shall have expired or been terminated and the
principal of and interest on each Loan and all fees payable
hereunder shall have been paid in full in Cash, each Credit Party
covenants and agrees with the Agents and the Lenders
that:

 

6.1           Indebtedness.
Neither the Borrower nor any Restricted Subsidiary will, directly
or indirectly, incur or remain liable with respect to any
Indebtedness, except:

 

(a)           Indebtedness
created under the Credit Documents;

 

(b)           Indebtedness
of the Borrower or any Restricted Subsidiary owing to the Borrower
or any Restricted Subsidiary; provided that (i) such
Indebtedness shall not have been transferred to any Person other
than the Borrower or any Restricted Subsidiary, (ii) such
Indebtedness shall be evidenced by the Intercompany Note, and, if
owing to a Credit Party, shall have been pledged pursuant to the
Pledge and Security Agreement, (iii) such Indebtedness owing
by a Credit Party to a Restricted Subsidiary that is not a Credit
Party shall be unsecured and subordinated in right of payment to
the payment in full in Cash of the Obligations pursuant to the
terms of the Intercompany Indebtedness Subordination Agreement and
(iv) such Indebtedness is permitted as an Investment under
Section 6.6(d);

 

 

 

78

 

 

 

 

(c)           [Reserved];

 

(d)           Indebtedness
existing on the date hereof and set forth on Schedule 6.1;

 

(e)           Indebtedness
of the Credit Parties under the Existing Debt
Documents;

 

(f)           (i)
Indebtedness of the Borrower or any Restricted Subsidiary (A)
incurred to finance the acquisition, construction or improvement of
any fixed or capital assets of the Borrower or any Restricted
Subsidiary, including Capital Lease Obligations, provided that such Indebtedness
is incurred prior to such acquisition or the completion of such
construction or improvement and the principal amount of such
Indebtedness does not exceed the cost of acquiring, constructing or
improving such fixed or capital assets, or (B) assumed in
connection with the acquisition of any fixed or capital assets of
the Borrower or any Restricted Subsidiary, provided, in the case of this
clause (i), that at the time of incurrence of such Indebtedness,
the aggregate principal amount of Indebtedness then outstanding
under this clause (i), together with the aggregate principal amount
of Capital Lease Obligations outstanding under Section 6.1(n),
shall not exceed $100,000;

 

(g)           Indebtedness
of the Canadian Subsidiaries owing to any Debtor consisting of
intercompany balances arising out of, or relating to the provision
of, shared services provided consistent with past practice (and not
resulting from the advance of Cash or Cash
Equivalents);

 

(h)           [reserved];

 

(i)           [reserved];

 

(j)           [reserved];

 

(k)           Indebtedness
in respect of netting services, overdraft protections and otherwise
arising from treasury, depository and cash management services or
in connection with any automated clearing-house transfers of funds,
overdraft or any similar services, in each case in the ordinary
course of business;

 

(l)           Indebtedness
in respect of letters of credit, bank guarantees and similar
instruments issued for the account of the Borrower or any
Restricted Subsidiary in the ordinary course of business supporting
obligations of the Borrower or any Restricted Subsidiary (i) under
workers’ compensation, unemployment insurance, health,
disability or other employee benefits and other social security
laws and (ii) under bids, trade contracts, leases (other than
Capital Lease Obligations), supply and service agreements with
vendors, statutory obligations, surety, litigation and appeal
bonds, performance bonds and obligations of a like
nature;

 

(m)           [reserved];

 

 

 

79

 

 

 

 

(n)           Capital
Lease Obligations arising under any Sale/Leaseback Transaction
incurred in compliance with Section 6.9, provided that at the time of
the consummation of such Sale/Leaseback Transaction, (i) the
aggregate principal amount of Indebtedness then outstanding under
this clause (n) shall not exceed $50,000 and (ii) the aggregate
principal amount of Indebtedness then outstanding under this clause
(n), together with the aggregate principal amount of Indebtedness
outstanding under Section 6.1(f), shall not exceed
$100,000;

 

(o)           other
Indebtedness of the Borrower or any Restricted Subsidiary in the
aggregate principal amount not to exceed $1,500,000 at any time
outstanding;

 

(p)           [reserved];

 

(q)           [reserved];

 

(r)           Indebtedness
consisting of the financing of insurance premiums or take or pay
obligations contained in supply arrangements that do not constitute
Guarantees, in each case, incurred in the ordinary course of
business, in each case of this clause (r) consistent with the
Approved Budget; and

 

(s)           to
the extent constituting Indebtedness, all premiums (if any),
interest (including post-petition interest), fees, expenses,
charges and additional or contingent interest on obligations
described in this Section 6.1.

 

6.2           Liens.
Neither the Borrower nor any Restricted Subsidiary will, directly
or indirectly, incur or permit to exist any Lien on or with respect
to any asset of the Borrower or any Restricted Subsidiary, whether
now owned or hereafter acquired or licensed, or assign or sell any
income, profits or revenues (including accounts receivable and
royalties) or rights in respect of any thereof,
except:

 

(a)           Liens
created under the Credit Documents or the Orders;

 

(b)           Permitted
Encumbrances;

 

(c)           any
Lien on any asset of the Borrower or any Restricted Subsidiary
securing obligations under the Existing Debt Documents and Liens
existing on the date hereof and set forth on Schedule 6.2;

 

(d)           Liens
on fixed or capital assets acquired, constructed or improved by the
Borrower or any Restricted Subsidiary; provided that (i) such
Liens secure only Indebtedness outstanding under
Section 6.1(f) and obligations relating thereto not
constituting Indebtedness and (ii) such Liens shall not apply
to any other asset of the Borrower or any Restricted Subsidiary,
other than to proceeds and products of, and after-acquired property
that is affixed or incorporated into, the assets covered by such
Liens;

 

(e)           [Reserved];

 

(f)           [Reserved]

 

(g)           [Reserved];

 

(h)           [Reserved];

 

 

 

80

 

 

 

 

(i)           [Reserved];

 

(j)           in
the case of (i) any Restricted Subsidiary that is not a wholly
owned Subsidiary or (ii) the Equity Interests in any Person that is
not a Restricted Subsidiary, any encumbrance, restriction or other
Lien, including any put and call arrangements, related to the
Equity Interests in such Restricted Subsidiary or such other Person
set forth (A) in its Organizational Documents or any related joint
venture, shareholders’ or similar agreement, in each case so
long as such encumbrance or restriction is applicable to all
holders of the same class of Equity Interests or is otherwise of
the type that is customary for agreements of such type or (B) in
the case of clause (ii) above, in any agreement or document
governing Indebtedness of such Person;

 

(k)           [reserved];

 

(l)           [reserved];

 

(m)           nonexclusive
outbound licenses of Intellectual Property and leases or subleases
of equipment or real property, in each case granted by the Borrower
or any Restricted Subsidiary in the ordinary course of business
that do not materially detract from the value of the affected asset
or interfere with the ordinary conduct of business of the Borrower
or any Restricted Subsidiary;

 

(n)           any
Lien in favor of the Borrower or any Restricted Subsidiary (other
than Liens on assets of any Credit Party in favor of a Restricted
Subsidiary that is not a Credit Party);

 

(o)           [reserved];

 

(p)           In
each case consistent with the Approved Budget, (i) deposits made in
the ordinary course of business to secure obligations to insurance
carriers providing casualty, liability or other insurance to the
Borrower and the Restricted Subsidiaries and (ii) Liens on
insurance policies and the proceeds thereof securing the financing
of the premiums with respect thereto;

 

(q)           Cash
deposits not to exceed $500,000 at any time securing letters of
credit, bank guarantees and similar instruments issued in
currencies other than Dollars;

 

(r)           Liens
on the Collateral granted to provide adequate protection pursuant
to the Interim Order (and, when entered, the Final Order);
and

 

(s)           other
Liens securing Indebtedness or other obligations; provided that the aggregate
outstanding amount of Indebtedness and other obligations secured by
Liens permitted by this clause (s) shall not exceed
$500,000.

 

Notwithstanding
anything to the contrary herein, the Borrower shall (i) not permit
any Canadian Subsidiary to, directly or indirectly, incur or permit
to exist any Lien on or with respect to any of its assets, whether
now owned or hereafter acquired or licensed, or assign or sell any
income, profits or revenues (including accounts receivable and
royalties) or rights in respect of any thereof and (ii) not incur
or permit to exist any Lien on or with respect to any of its assets
or any asset of any of its Subsidiaries that do not constitute
Collateral, in each case other than Liens existing on the Petition
Date and described on Schedule 6.2 hereto.

 

 

 

81

 

 

 

 

6.3           No
Further Negative Pledges. Neither the
Borrower nor any Restricted Subsidiary will, directly or
indirectly, enter into, incur or permit to exist any agreement or
other arrangement that prohibits, restricts or imposes any
condition upon the ability of the Borrower or any Restricted
Subsidiary to create, incur or permit to exist any Lien upon any of
its assets, whether now owned or hereafter acquired, to secure any
Obligations; provided that the foregoing
shall not apply to (a) restrictions and conditions imposed by
law or by any Credit Document or the Orders, (b) [reserved], (c) in
the case of any Restricted Subsidiary that is not a wholly owned
Subsidiary or the Equity Interests in any Person that is not a
Restricted Subsidiary, restrictions and conditions imposed by the
Organizational Documents of such Restricted Subsidiary or such
other Person or any related joint venture, shareholders’ or
similar agreement, provided, in each case, that
such restrictions and conditions apply only to such Restricted
Subsidiary and to any Equity Interests in such Restricted
Subsidiary or to the Equity Interests in such other Person, as
applicable, (d) restrictions and conditions imposed by any
agreement or document governing secured Indebtedness permitted by
Section 6.1(f) or 6.1(n) or governing Liens permitted by Section
6.2(d), 6.2(p)(i) or 6.2(q) or by clause (c), (d) or (m) of the
definition of “Permitted Encumbrances”; provided that such restrictions
and conditions apply only to the assets securing such Indebtedness
or subject to such Liens, (e) [reserved], (f) [reserved], (g)
[reserved], (h) restrictions and conditions imposed by customary
provisions in leases, licenses and other agreements restricting the
assignment thereof or, in the case of any lease or license,
permitting to exist any Lien on the assets leased or licensed
thereunder, and (i) customary restrictions in respect of
Intellectual Property contained in nonexclusive licenses or
sublicenses of, or other grants of rights to use or exploit, such
Intellectual Property. Nothing in this Section 6.3 shall be deemed
to modify the requirements set forth in the definition of the term
“Collateral and Guarantee Requirement” or the
obligations of the Credit Parties under Sections 5.10, 5.11 or
5.12 or under the Collateral Documents.

 

6.4           Restricted
Payments. Neither the
Borrower nor any Restricted Subsidiary will declare or pay or make,
or agree to declare or pay or make, directly or indirectly, any
Restricted Payment, or incur any obligation (contingent or
otherwise) to do so, except that any Restricted Subsidiary may
declare and pay dividends or make other distributions with respect
to its capital stock, partnership or membership interests or other
similar Equity Interests, and declare and make other Restricted
Payments in respect of its Equity Interests, in each case ratably
to the holders of such Equity Interests (or, if not ratably, on a
basis more favorable to the Borrower and the Restricted
Subsidiaries).

 

6.5           Restrictions
on Subsidiary Distributions. Neither the
Borrower nor any Restricted Subsidiary will, directly or
indirectly, enter into, incur or permit to exist any agreement or
other arrangement that prohibits, restricts or imposes any
condition upon the ability of any Restricted Subsidiary (a) to
pay dividends or make other distributions on its Equity Interests
owned by the Borrower or any Restricted Subsidiary, (b) to
repay or prepay any Indebtedness owing by such Restricted
Subsidiary to the Borrower or any Restricted Subsidiary,
(c) to make loans or advances to the Borrower or any
Restricted Subsidiary or to Guarantee the Obligations or (d) to
transfer, lease or license any of its assets to the Borrower or any
Restricted Subsidiary; provided that the foregoing
shall not apply to (i) restrictions and conditions imposed by
law or by any Credit Document, (ii) restrictions and
conditions existing on the date hereof identified on Schedule
6.5, (iii) in the case of any Restricted Subsidiary that is
not a wholly owned Subsidiary of the Borrower or, in the case of
restrictions and conditions referred to in clause (d) above, the
Equity Interests in any Person that is not a Restricted Subsidiary,
restrictions and conditions imposed by agreements and documents
governing Indebtedness of such Restricted Subsidiary or such Person
or its Organizational Documents or any related joint venture,
shareholders’ or similar agreement, provided that such restrictions
and conditions apply only to such Restricted Subsidiary or, in the
case of restrictions and conditions referred to in clause (d)
above, to any Equity Interests in such Restricted Subsidiary or
such other Person, as applicable, (iv) in the case of restrictions
and conditions referred to clause in (d) above, restrictions and
conditions imposed by any agreement relating to secured
Indebtedness permitted by Section 6.1(n) or governing Liens
permitted by Section 6.2(d), 6.2(p)(i) or 6.2(q) or by clause (c),
(d) or (m) of the definition of “Permitted
Encumbrances”, provided that such restrictions
and conditions apply only to the assets securing such Indebtedness
or subject to such Liens, (v) [reserved], (vi) [reserved], (vii)
[reserved], (viii) in the case of restrictions and conditions
referred to in clause (d) above, restrictions and conditions
imposed by customary provisions in leases, licenses and other
agreements restricting the assignment thereof or, in the case of
any lease or license, permitting to exist any Lien on the assets
leased or licensed thereunder, and (ix) restrictions on cash
or deposits or net worth imposed by customers, suppliers or
landlords under agreements entered into in the ordinary course of
business, (x) in the case of restrictions and conditions referred
to in clause (d) above, customary restrictions in respect of
Intellectual Property contained in licenses or sublicenses of, or
other grants of rights to use or exploit, such Intellectual
Property. Nothing in this Section 6.5 shall be deemed to modify the
requirements set forth in the definition of the term
“Collateral and Guarantee Requirement” or the
obligations of the Credit Parties under Sections 5.10, 5.11 or
5.12 or under the Collateral Documents.

 

 

 

82

 

 

 

 

6.6           Investments.
Neither the Borrower nor any Restricted Subsidiary will purchase or
acquire (including pursuant to any merger or consolidation with any
Person that was not a wholly owned Restricted Subsidiary of the
Borrower prior thereto), hold, make or otherwise permit to exist
any Investment in any other Person, or make any Acquisition,
except:

 

(a)           Investments
in Cash and Cash Equivalents in accordance with the Approved
Budget;

 

(b)           Investments
existing on the date hereof that are set forth on Schedule 6.6
in accordance with the Approved Budget (but not any additions
thereto (including any capital contributions) made after the date
hereof);

 

(c)           Investments
by the Borrower and the Restricted Subsidiaries in Equity Interests
in their Restricted Subsidiaries; provided that (i) such
investees are Restricted Subsidiaries and Debtors prior to such
Investments, (ii) any such Equity Interests held by a Credit Party
shall be pledged in accordance with the requirements of the
definition of the term “Collateral and Guarantee
Requirement”, (iii) the aggregate amount of such Investments
by the Credit Parties in, and loans and advances under clause (d)
below by the Credit Parties to Restricted Subsidiaries that are not
Credit Parties and Debtors (excluding all such Investments, loans,
advances and Guarantees existing on the date hereof and permitted
by clause (b) above) shall not exceed $5,500,000 at any time
outstanding (provided that such Investments, loans and advances
shall be made solely for the purpose of paying taxes owed by the
Canadian Subsidiaries) and (iv) any such Investments shall be
consistent with the Approved Budget;

 

(d)           loans
or advances made by the Borrower or any Restricted Subsidiary to
the Borrower or any Restricted Subsidiary; provided that (i) the
Indebtedness resulting therefrom is permitted by
Section 6.1(b) and (ii) the amount of such loans and
advances made by the Credit Parties to Restricted Subsidiaries that
are not Credit Parties shall be subject to the limitation set forth
in clause (c) above;

 

(e)           [reserved];

 

(f)           (i)
Investments received in satisfaction or partial satisfaction of
obligations thereof from financially troubled account debtors and
(ii) deposits, prepayments and other credits to suppliers made
in the ordinary course of business and in accordance with the
Approved Budget  of the Borrower
and the Restricted Subsidiaries;

 

 

 

83

 

 

 

 

(g)           Investments
made as a result of the receipt of noncash consideration from any
Disposition of any asset in compliance with
Section 6.8;

 

(h)           [reserved];

 

(i)           Investments
in the form of Hedge Agreements permitted under Section
6.12;

 

(j)           payroll,
travel and similar advances to directors, officers, employees and
consultants of the Borrower or any Restricted Subsidiary to cover
matters that are expected at the time of such advances to be
treated as expenses of the Borrower or such Restricted Subsidiary
for accounting purposes and that are made in the ordinary course of
business and in accordance with the Approved Budget;

 

(k)           [reserved];

 

(l)           [reserved];

 

(m)           [reserved];

 

(n)           [reserved];

 

(o)           any
other Investments made after the Closing Date in an amount not to
exceed $250,000 in the aggregate;

 

(p)           [reserved];

 

(q)           In
each case consistent with the Approved Budget, Investments in the
ordinary course of business consisting of (i) endorsements for
collection or deposit and (ii) customary trade arrangements
with customers; and

 

(r)           Guarantees
of obligations of the Borrower or any Restricted Subsidiary in
respect of leases (other than Capital Lease Obligations) of any
Credit Party entered into in the ordinary course of
business.

 

Notwithstanding
anything to the contrary in this Section 6.6, neither the Borrower
nor any Restricted Subsidiary shall make any Investment that
results in or facilitates in any manner any Restricted Payment not
permitted under Section 6.4.

 

6.7           Financial
Covenants.

 

(a)           The
Borrower will not permit, in each case with respect to each Budget
Test Period as of the last day thereof, beginning with the Budget
Test Period applicable to the first Budget Variance Report
(Compliance) required to be delivered after the Closing Date, (i)
the negative variance as set forth in the Budget Variance Report
(Compliance) of the aggregate receipts of the Credit Parties to
exceed (x) for the Budget Test Period ending June 9, 2019 (and for
the first tested Budget Test Period after a new DIP Budget has
become the Approved Budget pursuant to Section 5.1(o)): 10%, (y)
for the Budget Test Period ending June 16, 2019 (and for the second
tested Budget Test Period after a new DIP Budget has become the
Approved Budget pursuant to Section 5.1(o)): 7.5% and, (z) for any
other Budget Test Period: 5.0% and (ii) the positive variance as
set forth in the Budget Variance Report (Compliance) of the
aggregate operating disbursements (excluding professional fees and
expenses) made by the Credit Parties to exceed (x) for the Budget
Test Period ending June 9, 2019 (and for the first tested
Budget Test Period after a new DIP Budget has become the Approved
Budget pursuant to Section 5.1(o)): 10%, (y) for the Budget Test
Period ending June 16, 2019 (and for the second tested Budget Test
Period after a new DIP Budget has become the Approved Budget
pursuant to Section 5.1(o)): 7.5% and, (z) for any other Budget
Test Period: 5.0%.

 

 

 

84

 

 

 

 

(b)           The
Borrower will not permit, for any cumulative period beginning with
June 1, 2019 and ending on the last day of any fiscal month
(beginning with the period ending on June 30, 2019), EBITDA to be
lower by more than the EBITDA Variance Percentage compared to
EBITDA projected for such period in the projections delivered
pursuant to Section 3.1(l)(ii)

 

(c)           The
Borrower will not permit, for any fiscal month (beginning with the
fiscal month ending on June 30, 2019), Monthly Recurring Revenue to
be lower by more than the Monthly Recurring Revenue Variance
Percentage compared to Monthly Recurring Revenue projected for such
fiscal month in the projections delivered pursuant to Section
3.1(l)(ii).

 

6.8           Fundamental
Changes; Disposition of Assets; Equity Interests of
Subsidiaries. (a) Neither the
Borrower nor any Restricted Subsidiary will merge or consolidate
with or into any other Person (including, in each case, pursuant to
a Delaware LLC Division), or liquidate, wind-up or dissolve (or
suffer any liquidation or dissolution), and neither the Borrower
nor any Restricted Subsidiary shall Dispose (whether in one
transaction or in a series of transactions) of assets that
represent all or substantially all of the assets of the Borrower
and the Restricted Subsidiaries, on a consolidated basis, except
that:

 

(i)             any
Person may merge into the Borrower in a transaction in which the
Borrower is the surviving Person;

 

(ii)             any
Person (other than the Borrower) may merge or consolidate with or
into any Restricted Subsidiary in a transaction in which the
surviving entity is a Restricted Subsidiary (and if any party to
such merger or consolidation is a Guarantor Subsidiary, the
surviving Person is a Guarantor Subsidiary);

 

(iii)             any
Restricted Subsidiary may merge or consolidate with or into any
Person (other than the Borrower) or any Restricted Subsidiary may
liquidate or dissolve, in each case, in connection with a sale of
all or substantially all of the assets of the Debtors approved by
the Bankruptcy Court or in connection with the sale of all or
substantially all of the assets of one or more Canadian
Subsidiaries approved by the Canadian Bankruptcy Court, in each
case to the extent permitted pursuant to Section
6.8(b);

 

(iv)             [reserved];
and

 

(v)             any
Credit Party (other than the Borrower) may Dispose of all or
substantially all of its assets to the Borrower or to another
Credit Party;

 

provided that, in the case of
clauses (i) and (ii) above, any such merger or consolidation shall
not be permitted unless it, and each Investment resulting
therefrom, is also permitted under Section 6.6.

 

 

 

85

 

 

 

 

(b)           Neither
the Borrower nor any Restricted Subsidiary will Dispose of, or
exclusively license, any asset, including any Equity Interest,
owned by it, except:

 

(i)             Dispositions,
in each case consistent with the Budget, of (A) inventory and
obsolete, worn out or surplus equipment in the ordinary course of
business, (B) leasehold improvements to landlords pursuant to the
terms of leases in respect of any Leasehold Property and
(C) Cash and Cash Equivalents;

 

(ii)             Dispositions,
and exclusive licenses, to any Credit Party;

 

(iii)             Investments
made in compliance with Sections 6.6 and 6.10;

 

(iv)             Dispositions
of accounts receivable in connection with the compromise or
collection thereof in the ordinary course of business consistent
with the Approved Budget and not as part of any accounts
receivables financing transaction;

 

(v)             [Reserved];

 

(vi)             leases
and licenses entered into by the Borrower or any Restricted
Subsidiary prior to the Petition Date as a licensor or lessor in
the ordinary course of business, provided that such leases or
license do not adversely affect in any material respect the value
of the properties subject thereto (including the value thereof as
Collateral) or interfere in any material respect with the ordinary
conduct of business of the Borrower or any Restricted
Subsidiary;

 

(vii)             any
casualty or other insured damage to, or the taking under the power
of eminent domain or by condemnation or similar proceeding of any
assets of the Borrower or any Restricted Subsidiary;

 

(viii)             Disposition
of the Equity Interests in the Canadian Subsidiaries, or all or
substantially all assets of any Canadian Subsidiary, in each case
approved by the Bankruptcy Court (in the case of a Disposition of
the Equity Interests in the Canadian Subsidiaries) or the Canadian
Bankruptcy Court (in the case of a Disposition of all or
substantially all assets of a Canadian Subsidiary), as applicable,
and the Requisite Lenders and provided for and made in accordance
with the Restructuring Support Agreement; provided that the Net Proceeds
thereof shall be applied as required by Section 2.13, subject to
Section 2.13(h);

 

(ix)             Dispositions
of all or substantially all of the assets of the Debtors as
approved by the Bankruptcy Court pursuant to the “Sale
Transaction” (as defined in the Restructuring Support
Agreement) made in accordance with the Restructuring Support
Agreement; provided
that the Net Proceeds thereof shall be applied as required by
Section 2.13, subject to Section 2.13(h); and

 

 

 

86

 

 

 

 

(x)             other
Dispositions of assets that are not permitted by any other clause
of this Section 6.8(b), provided that the aggregate Net
Proceeds thereof shall not exceed $250,000.

 

(c)           Notwithstanding
anything to the contrary set forth herein, (i) neither the Borrower
nor any Restricted Subsidiary will sell, transfer or otherwise
dispose of any Equity Interests in any Restricted Subsidiary unless
(A) such Equity Interests constitute all the Equity Interests
in such Restricted Subsidiary held by the Borrower and the
Restricted Subsidiaries and (B) immediately after giving
effect to such transaction, the Borrower and the Restricted
Subsidiaries shall otherwise be in compliance with Section 6.6
and (ii) no Restricted Subsidiary will issue any additional Equity
Interests in such Restricted Subsidiary other than (A) to the
Borrower or any Restricted Subsidiary in compliance with
Section 6.4, (B) directors’ qualifying shares and
(C) other nominal amounts of Equity Interests that are
required to be held by other Persons under applicable
law.

 

(d)           The
Borrower will not permit any Person other than the Borrower, or one
or more of its Restricted Subsidiaries that is not a CFC or CFC
Holding Company, to own any Equity Interests in any Restricted
Subsidiary that is a Domestic Subsidiary (other than any Domestic
Subsidiary that itself is a CFC Holding Company).

 

6.9           Sales
and Leasebacks. Neither the
Borrower nor any Restricted Subsidiary will enter into any
Sale/Leaseback Transaction.

 

6.10           Transactions
with Affiliates. Neither the
Borrower nor any Restricted Subsidiary will, directly or
indirectly, enter into or permit to exist any transaction
(including the purchase, sale, lease or exchange of any property or
the rendering of any service) with any Affiliate of the Borrower or
such Restricted Subsidiary on terms that are less favorable to the
Borrower or such Restricted Subsidiary, as the case may be, than
those that would prevail in an arm’s-length transaction with
unrelated third parties; provided that the foregoing
restriction shall not apply to (a) transactions between or among
the Credit Parties not involving any other Affiliate, (b)
[reserved], (c) [reserved], (d) compensation and indemnification
arrangements for directors, officers, employees and consultants of
the Borrower or any Restricted Subsidiary entered into in the
ordinary course of business in accordance with the Approved Budget
(including, for the avoidance of doubt, grants of stock options,
stock purchase rights, stock exchange rights or other equity-based
awards to directors, employees and officers and any
“key-man” insurance policy maintained by a Credit
Party), (e) loans and advances permitted under Section 6.6(j), (f)
the Transactions and the payment of fees and expenses in connection
with the consummation of the Transactions and (g) the
transactions set forth on Schedule 6.10
in accordance with the Approved Budget (without giving effect to
any amendment, restatement, supplement or other modification
thereto after the Petition Date that could reasonably be expected
to be adverse in any material respect to the Lenders).

 

6.11           Conduct
of Business. Neither the
Borrower nor any Restricted Subsidiary will engage in any business
other than the businesses engaged in by the Borrower and the
Restricted Subsidiaries on the Petition Date.

 

6.12           Hedge
Agreements. Neither the
Borrower nor any Restricted Subsidiary will enter into any Hedge
Agreement, except (a) Hedge Agreements entered into to hedge
or mitigate risks to which the Borrower or any Restricted
Subsidiary has actual exposure (other than in respect of Equity
Interests or Indebtedness of the Borrower or any Restricted
Subsidiary) and (b) Hedge Agreements entered into in order to
effectively cap, collar or exchange interest rates (from fixed to
floating rates, from one floating rate to another floating rate or
otherwise) with respect to any interest-bearing liability or
investment of the Borrower or any Restricted
Subsidiary.

 

 

 

87

 

 

 

 

6.13           Amendments
or Waivers of Organizational Documents and Certain
Agreements. Neither the
Borrower nor any Restricted Subsidiary will agree to any amendment,
restatement, supplement or other modification to, or waiver of any
of its rights under, (a) its Organizational Document, (b) any
certificate of designation or other agreement or instrument
governing or evidencing the Holcombe Preferred Stock or (c) any
agreement or instrument governing or evidencing any Indebtedness,
in each case, to the extent such amendment, modification or waiver
could reasonably be expected to be adverse in any material respect
to the Lenders.

 

6.14           Fiscal
Year. Neither the
Borrower nor any Restricted Subsidiary will change its Fiscal Year
to end on a date other than December 31.

 

6.15           Additional
Matters. Without the
Requisite Lenders’ prior written consent, neither the
Borrower nor any Restricted Subsidiary (in the case of clauses (a),
(b) and (f) below, limited to Restricted Subsidiaries that are
Debtors under the Cases) will, directly or indirectly:

 

(a)           enter
into any agreement to return any of its inventory to any of its
creditors for application against any pre-petition Indebtedness,
pre-petition trade payables or other pre-petition claims under
Section 546(c) of the Bankruptcy Code or allow any creditor to take
any setoff or recoupment against any of its pre-petition
Indebtedness, pre-petition trade payables or other pre-petition
claims based upon any such return pursuant to Section 553(b)(1) of
the Bankruptcy Code or otherwise if, after giving effect to any
such agreement, setoff or recoupment, the aggregate amount applied
to pre-petition Indebtedness, pre-petition trade payables and other
pre-petition claims subject to all such agreements, setoffs and
recoupments since the Petition Date would exceed
$500,000;

 

(b)           incur,
create, assume, suffer to exist or permit any other superpriority
administrative claim which is pari passu with or senior to the
claim of the Administrative Agent or the Lenders against the
Debtors;

 

(c)           assert
or prosecute any claim or cause of action against any of the
Secured Parties (in their capacities as such), unless such claim or
cause of action is in connection with the enforcement of the Credit
Documents against the Administrative Agent or the
Lenders;

 

(d)           subject
to the terms of the Interim Order or the Final Order, as
applicable, object to, contest, delay, prevent or interfere with in
any material manner the exercise of rights and remedies by the
Administrative Agent, the Collateral Agent or the Lenders with
respect to the Collateral following the occurrence of an Event of
Default (provided that any Credit Party may contest or dispute
whether an Event of Default has occurred); or

 

(e)           seek,
consent to, or permit to exist, without the prior written consent
of the Administrative Agent, at the direction of Requisite Lenders,
any order granting authority to take any action that is prohibited
by the terms of this Agreement, the Interim Order, the Final Order
or the other Loan Documents or refrain from taking any action that
is required to be taken by the terms of this Agreement, the Interim
Order, the Final Order or any of the other Loan
Documents;

 

(f)           except
(i) as expressly provided or permitted hereunder (including to the
extent pursuant to any “first day” or “second
day” orders complying with the terms of this Agreement), (ii)
with the prior consent of the Requisite Lenders in their sole
discretion or (iii) as provided pursuant to any other order of the
Bankruptcy Court reasonably acceptable to the Requisite Lenders,
make any payment or distribution on account of any Indebtedness
arising prior to the Petition Date;

 

 

 

88

 

 

 

 

(g)           make
any payment, or set aside funds for the purpose of making any
payments, or otherwise transfer any economic value (including the
payment of any fees, costs or expenses of any advisors) to any
direct or indirect equity holder of the Borrower in its capacity as
such, including, without limitation, Holcombe T. Green, Jr. (or any
affiliate of Holcombe T. Green, Jr.); or

 

(h)           without
the prior written consent of the Requisite Lenders, shall make,
enter into or implement any amendment, waiver, supplement or other
modification to any employment agreement or employee compensation
plan, in each case, solely to the extent such agreement or
compensation plan relates to an Executive Officer (as defined
below), or pay or cause to be paid any amount contemplated by such
agreements or plans before the date on which such amount becomes
due and payable pursuant to the terms of the such agreements or
plans, as applicable, or pay or cause to be paid any bonus,
incentive, retention, severance, change of control or termination
payments pursuant to the terms of such agreements or plans, as
applicable, including, without limitation, any transaction or other
bonus previously awarded but unpaid (it being understood that
“Executive Officer” means the Borrower’s Chief
Executive Officer, Chief Operating Officer, Chief Revenue Officer,
Chief Financial Officer, Chief Technology Officer or Executive Vice
President and General Counsel).

 

6.16           Payments
to Lingo. The Borrower and
its Restricted Subsidiaries shall (i) continue to diligently pursue
all outstanding receivables from Lingo Communications, LLC or its
affiliates (“Lingo”) and (ii) keep the Lenders
promptly advised of the progress and developments related thereto
until all obligations owing from Lingo to the Borrower are paid in
full and Lingo is current with respect to all of its payment
obligations to the Borrower and each Subsidiary.

 

SECTION
7.                                GUARANTEE

 

7.1           Guarantee
of the Obligations. The Guarantors
jointly and severally hereby irrevocably and unconditionally
guarantee the due and punctual payment in full in Cash of all
Obligations when and as the same shall become due. In furtherance
of the foregoing, the Guarantors hereby jointly and severally agree
that upon the failure of the Borrower or any other Person to pay
any of the Obligations when and as the same shall become due,
whether at stated maturity, by required prepayment, acceleration,
demand or otherwise (including amounts that would become due but
for the operation of the automatic stay under Section 362(a)
of the Bankruptcy Code or any similar provision of, or stay imposed
under, any other Debtor Relief Law), the Guarantors will upon
demand pay, or cause to be paid, in Cash, to the Administrative
Agent, for the ratable benefit of Secured Parties, an amount equal
to the sum of all Obligations then due as aforesaid.

 

7.2           Indemnity
by the Borrower; Contribution by the
Guarantors. (a) In addition
to all such rights of indemnity and subrogation as any Guarantor
Subsidiary may have under applicable law (but subject to Section
7.5), the Borrower agrees that (i) in the event a payment shall be
made by any Guarantor Subsidiary under its Obligations Guarantee,
the Borrower shall indemnify such Guarantor Subsidiary for the full
amount of such payment and such Guarantor Subsidiary shall be
subrogated to the rights of the Person to whom such payment shall
have been made to the extent of such payment and (ii) in the event
any Collateral provided by any Guarantor Subsidiary shall be sold
pursuant to any Collateral Document to satisfy in whole or in part
any Obligations, the Borrower shall indemnify such Guarantor
Subsidiary in an amount equal to the fair market value of the
assets so sold.

 

 

 

89

 

 

 

 

7.3           Liability
of Guarantors Absolute. Each Guarantor
agrees that its obligations under this Section 7 are irrevocable,
absolute, independent and unconditional and shall not be affected
by any circumstance that constitutes a legal or equitable discharge
of a guarantor or surety other than payment in full in Cash of the
Obligations. In furtherance of the foregoing and without limiting
the generality thereof, each Guarantor agrees as
follows:

 

(a)           its
Obligations Guarantee is a guarantee of payment when due and not of
collectability and is a primary obligation of such Guarantor and
not merely a contract of surety;

 

(b)           the
Administrative Agent may enforce its Obligations Guarantee upon the
occurrence of an Event of Default notwithstanding the existence of
any dispute between the Borrower and any Secured Party with respect
to the existence of such Event of Default;

 

(c)           the
obligations of each Guarantor hereunder are independent of the
obligations of the Borrower or of any other guarantor (including
any other Guarantor) of the Obligations, and a separate action or
actions may be brought and prosecuted against such Guarantor
whether or not any action is brought against the Borrower, any such
other Guarantor or any other Person and whether or not the
Borrower, any such other Guarantor or any other Person is joined in
any such action or actions;

 

(d)           payment
by any Guarantor of a portion, but not all, of the Obligations
shall in no way limit, affect, modify or abridge any
Guarantor’s liability for any portion of the Obligations that
has not been paid (and, without limiting the generality of the
foregoing, if the Administrative Agent is awarded a judgment in any
suit brought to enforce any Guarantor’s covenant to pay a
portion of the Obligations, such judgment shall not be deemed to
release such Guarantor from its covenant to pay the portion of the
Obligations that is not the subject of such suit, and such judgment
shall not, except to the extent satisfied by such Guarantor, limit,
affect, modify or abridge any other Guarantor’s liability
hereunder in respect of the Obligations);

 

 

 

90

 

 

 

 

(e)           any
Secured Party may, upon such terms as it deems appropriate, without
notice or demand and without affecting the validity or
enforceability of the Obligations Guarantees or giving rise to any
reduction, limitation, impairment, discharge or termination of any
Guarantor’s liability under this Section 7, at any time and
from time to time (i) renew, extend, accelerate, increase the
rate of interest on, or otherwise change the time, place, manner or
terms of payment of the Obligations, (ii) settle, compromise,
release or discharge, or accept or refuse any offer of performance
with respect to, or substitutions for, the Obligations or any
agreement relating thereto, and/or subordinate the payment of the
same to the payment of any other obligations, (iii) request
and accept other guarantees of the Obligations and take and hold
security for the payment of the Obligations, (iv) release,
surrender, exchange, substitute, compromise, settle, rescind,
waive, alter, subordinate or modify, with or without consideration,
any security for payment of the Obligations, any other guarantees
of the Obligations or any other obligation of any Person (including
any other Guarantor) with respect to the Obligations,
(v) enforce and apply any security now or hereafter held by or
for the benefit of such Secured Party in respect of the Obligations
and direct the order or manner of sale thereof, or exercise any
other right or remedy that such Secured Party may have against any
such security, in each case as such Secured Party in its discretion
may determine consistent herewith and any applicable security
agreement, including foreclosure on any such security or exercise
of a power of sale pursuant to one or more judicial or nonjudicial
sales, whether or not every aspect of any such sale is commercially
reasonable, and even though such action operates to impair or
extinguish any right of reimbursement or subrogation or other right
or remedy of any Guarantor against any other Credit Party or any
security for the Obligations, and (vi) exercise any other
rights available to it under the Credit Documents; and

 

(f)           the
Obligations Guarantees and the obligations of the Guarantors
thereunder shall be valid and enforceable and shall not be subject
to any reduction, limitation, impairment, discharge or termination
for any reason, including the occurrence of any of the following,
whether or not any Guarantor shall have had notice or knowledge of
any of them (in any case other than payment in full in Cash of the
Obligations or release of a Guarantor Subsidiary’s
Obligations Guarantee in accordance with Section 9.8(d)(ii)):
(i) any failure or omission to assert or enforce or agreement
or election not to assert or enforce, or the stay or enjoining, by
order of court, by operation of law or otherwise, of the exercise
or enforcement of, any claim or demand or any right, power or
remedy (whether arising under the Credit Documents, at law, in
equity or otherwise) with respect to the Obligations or any
agreement relating thereto, or with respect to any other guarantee
of or security for the payment of the Obligations, (ii) any
rescission, waiver, amendment or modification of, or any consent to
departure from, any of the terms or provisions (including
provisions relating to events of default) of any Credit Document or
any agreement or instrument executed pursuant thereto, or of any
other guarantee or security for the Obligations, in each case
whether or not in accordance with the terms hereof or such Credit
Document or any agreement relating to such other guarantee or
security, (iii) the Obligations, or any agreement relating
thereto, at any time being found to be illegal, invalid or
unenforceable in any respect, (iv) the application of payments
received from any source (other than payments received pursuant to
the other Credit Documents under which any Obligations arose or
from the proceeds of any security for the Obligations, except to
the extent such security also serves as collateral for Indebtedness
other than the Obligations) to the payment of obligations other
than the Obligations, even though any Secured Party could have
elected to apply such payment to all or any part of the
Obligations, (v) any Secured Party’s consent to the
change, reorganization or termination of the corporate structure or
existence of the Borrower or any Subsidiary and to any
corresponding restructuring of the Obligations, (vi) any
failure to perfect or continue perfection of a security interest in
any collateral that secures any of the Obligations, (vii) any
defenses, set-offs or counterclaims that the Borrower or any other
Person may allege or assert against any Secured Party in respect of
the Obligations, including failure of consideration, breach of
warranty, statute of frauds, statute of limitations, accord and
satisfaction and usury, and (viii) any other act or thing or
omission, or delay to do any other act or thing, that may or might
in any manner or to any extent vary the risk of any Guarantor as an
obligor in respect of the Obligations.

 

 

 

91

 

 

 

 

7.4           Waivers
by the Guarantors. Each Guarantor
hereby waives, for the benefit of the Secured Parties: (a) any
right to require any Secured Party, as a condition of payment or
performance by such Guarantor in respect of its obligations under
this Section 7, (i) to proceed against the Borrower, any other
guarantor (including any other Guarantor) of the Obligations or any
other Person, (ii) to proceed against or exhaust any security held
from the Borrower, any such other guarantor or any other Person,
(iii) to proceed against or have resort to any balance of any
deposit account or credit on the books of any Secured Party in
favor of any Credit Party or any other Person, or (iv) to pursue
any other remedy in the power of any Secured Party whatsoever; (b)
any defense arising by reason of the incapacity, lack of authority
or any disability or other defense of the Borrower or any other
Guarantor, including any defense based on or arising out of the
lack of validity or the unenforceability of the Obligations or any
agreement or instrument relating thereto or by reason of the
cessation of the liability of the Borrower or any other Guarantor
from any cause other than payment in full in Cash of the
Obligations; (c) any defense based upon any law that provides that
the obligation of a surety must be neither larger in amount nor in
other respects more burdensome than that of the principal; (d) any
defense based upon any Secured Party’s errors or omissions in
the administration of the Obligations; (e) (1) any principles
or provisions of any law that are or might be in conflict with the
terms hereof or any legal or equitable discharge of such
Guarantor’s obligations hereunder, (2) the benefit of any
statute of limitations affecting such Guarantor’s liability
hereunder or the enforcement hereof, (3) any rights to set-offs,
recoupments and counterclaims and (4) promptness, diligence
and any requirement that any Secured Party protect, secure, perfect
or insure any security interest or lien or any property subject
thereto; (f) notices, demands, presentments, protests, notices of
protest, notices of dishonor and notices of any action or inaction,
including acceptance hereof, notices of default under the Credit
Documents or any agreement or instrument related thereto, notices
of any renewal, extension or modification of the Obligations or any
agreement related thereto, notices of any extension of credit to
the Borrower or any other Guarantor and notices of any of the
matters referred to in Section 7.3 and any right to consent to
any thereof; and (g) any defenses or benefits that may be derived
from or afforded by law which limit the liability of or exonerate
guarantors or sureties, or which may conflict with the terms
hereof.

 

7.5           Guarantors’
Rights of Subrogation, Contribution, Etc.

 

  Until
the Obligations shall have been indefeasibly paid in full in Cash
and the Commitments shall have terminated, each Guarantor hereby
waives any claim, right or remedy, direct or indirect, that such
Guarantor now has or may hereafter have against the Borrower or any
other Guarantor or any of its assets in connection with its
Obligations Guarantee or the performance by such Guarantor of its
obligations thereunder, in each case whether such claim, right or
remedy arises in equity, under contract, by statute, under common
law or otherwise and including (a) any right of subrogation,
reimbursement or indemnity that such Guarantor now has or may
hereafter have against the Borrower with respect to the
Obligations, including any such right of indemnity under Section
7.2(a), (b) any right to enforce, or to participate in, any
claim, right or remedy that any Secured Party now has or may
hereafter have against the Borrower, and (c) any benefit of, and
any right to participate in, any collateral or security now or
hereafter held by or for the benefit of any Secured Party. In
addition, until the Obligations shall have been indefeasibly paid
in full in Cash and the Commitments shall have terminated, each
Guarantor shall withhold exercise of any right of contribution such
Guarantor may have against any other guarantor (including any other
Guarantor) of the Obligations, including any such right of
contribution under Section 7.2(b). Each Guarantor further agrees
that, to the extent the waiver or agreement to withhold the
exercise of its rights of subrogation, reimbursement, indemnity and
contribution as set forth herein is found by a court of competent
jurisdiction to be void or voidable for any reason, any rights of
subrogation, reimbursement or indemnity such Guarantor may have
against the Borrower or against any collateral or security, and any
rights of contribution such Guarantor may have against any such
other Guarantor, shall be junior and subordinate to any rights any
Secured Party may have against the Borrower or any other Guarantor,
to all right, title and interest any Secured Party may have in any
such collateral or security, and to any right any Secured Party may
have against such other Guarantor. If any amount shall be paid to
any Guarantor on account of any such subrogation, reimbursement,
indemnity or contribution rights at any time when all Obligations
shall not have been indefeasibly paid in full in Cash and all
Commitments not having terminated, such amount shall be held in
trust for the Administrative Agent, for the benefit of the Secured
Parties, and shall forthwith be paid over to the Administrative
Agent, for the benefit of Secured Parties, to be credited and
applied against the Obligations, whether matured or unmatured, in
accordance with the terms hereof.

 

7.6           Continuing
Guarantee. The Obligations
Guarantee is a continuing guarantee and shall remain in effect
(except, in the case of a Guarantor Subsidiary, if such Guarantor
Subsidiary’s Obligations Guarantee shall have been released
in accordance with Section 9.8(d)(ii)) until all of the Obligations
(excluding contingent obligations as to which no claim has been
made) shall have been paid in full in Cash and the Commitments
shall have terminated. Each Guarantor hereby irrevocably waives any
right to revoke its Obligations Guarantee as to future transactions
giving rise to any Obligations.

 

 

 

92

 

 

 

 

7.7           Authority
of the Guarantors or the Borrower. It is not
necessary for any Secured Party to inquire into the capacity or
powers of any Guarantor or the Borrower or any Related Party acting
or purporting to act on behalf of any such Person.

 

7.8           Financial
Condition of the Credit Parties. Any Credit
Extension may be made or continued from time to time without notice
to or authorization from any Guarantor regardless of the financial
or other condition of the Borrower or any Subsidiary at the time of
any such making or continuation. No Secured Party shall have any
obligation to disclose or discuss with any Guarantor its
assessment, or any Guarantor’s assessment, of the financial
condition of the Borrower or any Subsidiary. Each Guarantor has
adequate means to obtain information from the Borrower and the
Subsidiaries on a continuing basis concerning the financial
condition of the Borrower and the Subsidiaries and their ability to
perform the Obligations, and each Guarantor assumes the
responsibility for being and keeping informed of the financial
condition of the Borrower and the Subsidiaries and of all
circumstances bearing upon the risk of nonpayment of the
Obligations. Each Guarantor hereby waives and relinquishes any duty
on the part of any Secured Party to disclose any matter, fact or
thing relating to the business, results of operations, assets,
liabilities, condition (financial or otherwise) or prospects of the
Borrower or any Subsidiary now or hereafter known by any Secured
Party.

 

7.9           Bankruptcy,
Etc.

 

  (a) The
obligations of the Guarantors hereunder shall not be reduced,
limited, impaired, discharged, deferred, suspended or terminated by
any case or proceeding, voluntary or involuntary, involving the
bankruptcy, insolvency, receivership, reorganization, liquidation,
arrangement or similar proceeding of the Borrower or any other
Guarantor or by any defense that the Borrower or any other
Guarantor may have by reason of the order, decree or decision of
any court or administrative body resulting from any such
proceeding.

 

(b)           Each
Guarantor acknowledges and agrees that any interest on any portion
of the Obligations that accrues after the commencement of any case
or proceeding referred to in Section 7.9(a) (or, if interest on any
portion of the Obligations ceases to accrue by operation of law by
reason of the commencement of such case or proceeding, such
interest as would have accrued on such portion of the Obligations
if such case or proceeding had not been commenced) shall be
included in the Obligations because it is the intention of the
Guarantors and the Secured Parties that the Obligations that are
guaranteed by the Guarantors pursuant to this Section 7 should be
determined without regard to any rule of law or order that may
relieve the Borrower or any Subsidiary of any portion of any
Obligations. The Guarantors will permit any trustee in bankruptcy,
receiver, debtor in possession, assignee for the benefit of
creditors or similar Person to pay to the Administrative Agent, for
the benefit of the Secured Parties, or allow the claim of any
Secured Party or of the Administrative Agent, for the benefit of
the Secured Parties, in respect of, any such interest accruing
after the date on which such case or proceeding is
commenced.

 

In the
event that all or any portion of the Obligations are paid by the
Borrower or any Subsidiary, the obligations of the Guarantors under
this Section 7 shall continue and remain in full force and effect
or be reinstated, as the case may be (notwithstanding any prior
release of any Obligations Guarantee), in the event that all or any
part of such payment(s) are rescinded or recovered directly or
indirectly from any Secured Party as a preference, fraudulent
transfer or conveyance or transfer at undervalue or otherwise, and
any such payments that are so rescinded or recovered shall
constitute Obligations for all purposes hereunder.

 

 

 

93

 

 

 

 

SECTION
8.                                EVENTS
OF DEFAULT

 

8.1           Events
of Default. If any one or
more of the following conditions or events shall
occur:

 

(a)           Failure
to Make Payments When Due. Failure by the Borrower
(i) to pay, when due, any principal of any Loan, whether at
stated maturity, by acceleration, by notice of voluntary
prepayment, by mandatory prepayment or otherwise or (ii) to pay,
within five Business Days after the date due, any interest on any
Loan or any fee or any other amount due hereunder or under any
other Credit Document;

 

(b)           Default
in Other Agreements. (i) Failure by the Borrower or any
Restricted Subsidiary, after the expiration of any applicable grace
period, to make any payment that shall have become due and payable
(whether of principal, interest or otherwise) in respect of any
Material Indebtedness, or (ii) any condition or event shall occur
that results in any Material Indebtedness becoming due, or
being required to be prepaid, repurchased, redeemed or defeased,
prior to its stated maturity or, in the case of any Hedge
Agreement, being terminated, or that enables or permits the holder
or holders of any Material Indebtedness or any trustee or agent on
its or their behalf, or, in the case of any Hedge Agreement, the
applicable counterparty, with or without the giving of notice but
only after the expiration of any applicable grace period, to cause
such Material Indebtedness to become due, or to require the
prepayment, repurchase, redemption or defeasance thereof, prior to
its stated maturity or, in the case of any Hedge Agreement, to
cause the termination thereof; provided that this
clause (b) shall not apply to (A) any secured
Indebtedness becoming due as a result of the voluntary sale or
transfer of the assets securing such Indebtedness; (B) any
Indebtedness becoming due as a result of a voluntary refinancing
thereof permitted under Section 6.1; (C) any Indebtedness
becoming due as a result of a voluntary prepayment, repurchase,
redemption or defeasance thereof permitted hereunder or (D) any
Indebtedness outstanding hereunder and any Indebtedness of any
Debtor that was incurred prior to the Petition Date;

 

(c)           Breach
of Certain Covenants. (i) Failure of any Credit Party to
perform or comply with any term or condition contained in Section
2.23, 2.5, 5.1(e)(i), 5.2 (with respect to the Borrower only),
5.14, 5.15, 5.16, 5.18 or 6;

 

(d)           Breach
of Representations, Etc. Any representation, warranty,
certification or other statement made or deemed made by or on
behalf of any Credit Party in any Credit Document or in any report,
certificate or statement at any time provided in writing by or on
behalf of any Credit Party pursuant to or in connection with any
Credit Document or the Transactions shall be incorrect in any
material respect as of the date made or deemed made (or if any
representation or warranty is expressly stated to have been made as
of a specific date incorrect in any material respect as of such
specific date);

 

(e)           Other
Defaults under Credit Documents. Failure of any Credit Party
to perform or comply with any term or condition contained herein or
in any other Credit Document, other than any such term or condition
referred to in any other clause of this Section 8.1, and,
except as may be expressly set forth in any such other Credit
Document, such failure shall not have been remedied within 30 days
after the earlier of (i) receipt by the Borrower of notice from the
Administrative Agent or the Requisite Lenders of such failure and
(ii) the Borrower obtaining knowledge of such failure;

 

 

 

94

 

 

 

 

(f)           Involuntary
Bankruptcy; Appointment of Receiver, Etc. (i) A court of
competent jurisdiction shall enter a decree or order for relief in
respect of any Restricted Subsidiary that is not a Debtor in an
involuntary case under any Debtor Relief Laws, which decree or
order is not stayed; or any other similar relief shall be granted
under any applicable federal, state or foreign law; or (ii) an
involuntary case shall be commenced against any Restricted
Subsidiary that is not a Debtor under any Debtor Relief Laws; or a
decree or order of a court having jurisdiction in the premises for
the involuntary appointment of an interim receiver, receiver,
liquidator, sequestrator, trustee, custodian or other officer
having similar powers over any Restricted Subsidiary that is not a
Debtor, or over all or a substantial part of its property, shall
have been entered; or there shall have occurred the involuntary
appointment of an interim receiver, receiver, liquidator,
sequestrator, trustee, custodian or other officer having similar
powers over any Restricted Subsidiary that is not a Debtor, or over
all or a substantial part of its property; or a warrant of
attachment, execution or similar process shall have been issued
against all or a substantial part of the property of any Restricted
Subsidiary that is not a Debtor, and any such event described in
this clause (ii) shall continue for 60 days without having been
dismissed, bonded or discharged;

 

(g)           Voluntary
Bankruptcy; Appointment of Receiver, Etc. Any Restricted
Subsidiary that is not a Debtor shall have an order for relief
entered with respect to it or shall commence a voluntary case under
any Debtor Relief Laws, or shall consent to the entry of an order
for relief in an involuntary case, or to the conversion of an
involuntary case to a voluntary case, under any Debtor Relief Laws,
or shall consent to the appointment of or taking possession by an
interim receiver, receiver, liquidator, sequestrator, trustee,
custodian or other officer having similar powers over any
Restricted Subsidiary that is not a Debtor, or over all or a
substantial part of its property (other than any liquidation
permitted by Section 6.8(a)(iv)); or any other Restricted
Subsidiary that is not a Debtor shall make any general assignment
for the benefit of creditors; or any Restricted Subsidiary that is
not a Debtor shall be unable, or shall fail generally, or shall
admit in writing its inability, to pay its debts as such debts
become due; or the board of directors (or similar governing body)
of any Restricted Subsidiary that is not a Debtor (or any committee
thereof) shall adopt any resolution or otherwise authorize any
action to approve any of the actions referred to in this Section
8.1(g) or in Section 8.1(f); provided, however, that any of the
foregoing actions undertaken by any Canadian Subsidiary with the
consent of the Requisite Lenders shall not constitute an Event of
Default;

 

(h)           Judgments
and Attachments. One or more judgments arising following the
Petition Date for the payment of money in an aggregate amount of
$1,000,000 or more (other than any such judgment covered by
insurance (other than under a self-insurance program) provided by a
financially sound insurer to the extent a claim therefor has been
made in writing and liability therefor has not been denied in
writing by the insurer), shall be rendered against the Borrower,
any Restricted Subsidiary or any combination thereof and the same
shall remain undischarged for a period of 60 consecutive days
during which execution shall not be effectively stayed, or any
action shall be legally taken by a judgment creditor to attach or
levy upon any assets of the Borrower or any Restricted Subsidiary
to enforce any such judgment;

 

(i)           Employee
Benefit Plans. The occurrence of one or more ERISA Events or
Foreign Plan Events that have had, or could reasonably be expected
to result in liability which would reasonably be expected to have,
individually or in the aggregate, a Material Adverse
Effect;

 

 

 

95

 

 

 

 

(j)           Change
of Control. A Change of Control shall occur;

 

(k)           Obligations
Guarantees, Collateral Documents and other Credit Documents.
Any Obligations Guarantee purported to be created under the Credit
Documents for any reason shall cease to be, or shall be asserted by
any Credit Party not to be, in full force and effect (other than in
accordance with its terms), or shall be declared to be null and
void; any Lien purported to be created under any Collateral
Document shall cease to be, or shall be asserted by any Credit
Party not to be, a valid and perfected Lien on any material
Collateral, with the priority required by the applicable Collateral
Document, except as a result of (i) a Disposition of the applicable
Collateral in a transaction permitted under the Credit Documents or
(ii) the release thereof as provided in Section
9.8(d);

 

(l)           Credit
Documents. (i) Any Credit Party shall knowingly contest, or
knowingly support another Person in any action that seeks to
contest, the validity or effectiveness of any Credit Document
(other than pursuant to the terms hereof or thereof) or (ii) any
Credit Document, shall, in whole or in part, terminate, cease to be
effective or cease to be legally valid, binding and enforceable
against any party thereto (other than pursuant to the terms hereof
or thereof); or

 

(m)           [Reserved].

 

(n)           The
Cases; Bankruptcy Matters.

 

(i)             any
of the Cases of the Credit Parties shall be dismissed or converted
to a case under Chapter 7 of the Bankruptcy Code;

 

(ii)             a
trustee, responsible officer or an examiner having expanded powers
(beyond those set forth under sections 1106(a)(3) and (4) of the
Bankruptcy Code) (other than a fee examiner) is appointed or
elected in the any of the Cases, or the Bankruptcy Court shall have
entered an order providing for such appointment;

 

(iii)             an
order of the Bankruptcy Court shall be entered denying or
terminating use of Cash Collateral by the Credit Parties and the
Credit Parties shall have not obtained use of Cash Collateral
pursuant to an order consented to by, and in form and substance
reasonably acceptable to, the Requisite Lenders;

 

(iv)             a
Lender Termination Event (as defined in the Restructuring Support
Agreement as in effect on the date hereof) shall have occurred and
be continuing, or any event that with the passage of time or
delivery of notice would constitute such a Lender Termination Event
shall have occurred and be continuing;

 

(v)             the
Restructuring Support Agreement is terminated for any reason
(except if by mutual agreement among the parties
thereto);

 

(vi)             any
Credit Party, or any person on behalf of any Credit Party, shall
file a motion or other pleading seeking, or otherwise consenting
to, any of the matters set forth in clauses (i) through (iii) above
or the granting of any other relief that if granted would give rise
to an Event of Default; or

 

 

 

96

 

 

 

 

(vii)             any
Credit Party or any of its Subsidiaries, or any person claiming by
or through any Credit Party or any of its Subsidiaries, with any
Credit Party’s or any Subsidiary’s consent, shall
obtain court authorization to commence, or shall commence, join in,
assist or otherwise participate as an adverse party in any suit or
other proceeding against (A) the Administrative Agent, the
Collateral Agent or any of the Lenders relating to the DIP Term
Facility, (B) the administrative agent, the collateral agent or any
lender relating to the Super Senior Secured Credit Agreement or (C)
the administrative agent, the collateral agent or any lender
relating to the Existing First Lien Credit Agreement;

 

(viii)             the
existence of any claims or charges, or the entry of any order of
the Bankruptcy Court authorizing (i) any claims or charges, other
than in respect of the DIP Term Facility and the Carve-Out or as
otherwise permitted under the applicable Credit Documents or the
Orders, entitled to superpriority administrative expense claim
status in any Case pursuant to Section 364(c)(1) of the Bankruptcy
Code that are pari passu with or senior to the claims of the Agents
and the Lenders under the DIP Term Facility, or there shall arise
or be granted by the Bankruptcy Court any claim having priority
over any or all administrative expenses of the kind specified in
clause (b) of Section 503 or clause (b) of Section 507 of the
Bankruptcy Code (other than the Carve-Out), or (ii) any Lien on the
Collateral having a priority senior to or pari passu with the Liens
and security interests provided for herein securing the Obligations
hereunder, except, in each case, as expressly provided in the
Credit Documents or in the Order then in effect (but only in the
event specifically consented to by the Requisite Lenders),
whichever is in effect;

 

(ix)             the
Bankruptcy Court shall enter an order or orders granting relief
from any stay of proceeding (including, the automatic stay
applicable under Section 362 of the Bankruptcy Code to the holder
or holders of any security interest) to (i) permit foreclosure (or
the granting of a deed in lieu of foreclosure or the like) on any
assets that constitute Collateral of any of the Credit Parties
which have a value in excess of $500,000 in the aggregate or (ii)
permit other actions that would have a Material Adverse Effect on
the Credit Parties or their estates (taken as a
whole);

 

(x)             an
order of the Bankruptcy Court shall be entered reversing, amending,
supplementing, staying, vacating or otherwise amending,
supplementing or modifying the Interim Order or the Final Order,
without the prior written consent of the Requisite Lenders (and
with respect to any provision that affects the rights or duties of
any Agent, the Administrative Agent), or a Credit Party shall apply
for the authority to do so;

 

(xi)             the
Interim Order (prior to the Final Order Entry Date) or the Final
Order (on and after the Final Order Entry Date) shall cease to
create a valid and perfected Lien on the Collateral or to be in
full force and effect, shall have been reversed, modified, amended,
stayed, vacated, or subject to stay pending appeal, in the case of
modification or amendment, without prior written consent of the
Requisite Lenders (or the Administrative Agent with the consent of
the Requisite Lenders);

 

 

 

97

 

 

 

 

(xii)             an
order shall have been entered by the Bankruptcy Court avoiding or
requiring disgorgement by the Administrative Agent or any of the
Lenders of any amounts received in respect of the
Obligations;

 

(xiii)             an
order shall have been entered by the Bankruptcy Court terminating
or modifying the exclusive right of any Credit Party to file a
Chapter 11 plan pursuant to section 1121 of the Bankruptcy Code,
without the prior written consent of the Requisite
Lenders;

 

(xiv)             [reserved];

 

(xv)             any
of the Credit Parties shall fail to comply in any material respect,
as reasonably determined by the Requisite Lenders, with the Interim
Order (prior to the Final Order Entry Date) or the Final Order (on
and after the Final Order Entry Date);

 

(xvi)             an
order in the Cases shall be entered charging any of the Collateral
(as defined herein and in the Existing First Lien Credit Agreement)
under Section 506(c) of the Bankruptcy Code against the Lenders or
the lenders under the Existing First Lien Credit Agreement, or the
commencement of other actions that is materially adverse to
Administrative Agent, the Collateral Agent or the Lenders, or the
administrative agent, the collateral agent or the lenders under the
Existing First Lien Credit Agreement or their respective rights and
remedies under the DIP Term Facility in any of the Cases or
inconsistent with any of the Credit Documents;

 

(xvii)             any
order shall be entered which dismisses any of the Cases of the
Credit Parties and which order does not provide for payment in full
in Cash of the Obligations under the Credit Documents (other than
contingent indemnification obligations not yet due and payable), or
any of the Credit Parties and their Subsidiaries shall seek,
support or fail to contest in good faith the entry of any such
order;

 

(xviii)                       [reserved];

 

(xix)             any
Credit Party or any Subsidiary thereof shall take any action in
support of any matter set forth in this Section ‎8.1 or any
other Person shall do so and such application is not contested in
good faith by the Credit Parties and the relief requested is
granted in an order that is not stayed pending appeal;

 

(xx)             any
Credit Party or any Subsidiary thereof shall obtain court
authorization to commence, or shall commence, join in, assist or
otherwise participate as an adverse party in any suit or other
proceeding seeking, or otherwise consenting to (i) the
invalidation, subordination or other challenging of the
Superpriority Claims and Liens granted to secure the Obligations or
any other rights granted to the Administrative Agent, the
Collateral Agent and the Lenders in the Orders or this Agreement or
(ii) any relief under section 506(c) of the Bankruptcy Code with
respect to any Collateral;

 

(xxi)             any
Credit Party shall challenge, support or encourage a challenge of
any payments made to the Administrative Agent, the Collateral Agent
or any Lender with respect to the Obligations or any lender under
any Existing Debt with respect to the obligations thereunder, other
than to challenge the occurrence of a Default or Event of
Default;

 

 

 

98

 

 

 

 

(xxii)             without
the consent of the Administrative Agent and the Requisite Lenders,
the filing of any motion by the Credit Parties seeking approval of
(or the entry of an order by the Bankruptcy Court approving)
adequate protection to any pre-petition agent, trustee or lender
that is inconsistent with the Interim Order (prior to the Final
Order Entry Date) or the Final Order (on and after the Final Order
Entry Date);

 

(xxiii)                       without
the Requisite Lenders’ consent, the entry of any order by the
Bankruptcy Court granting, or the filing by any Credit Party or any
of its Subsidiaries of any motion or other request with the
Bankruptcy Court (in each case, other than the Orders and motions
seeking entry thereof or permitted amendments or modifications
thereto) seeking, authority to use any cash proceeds of any of the
Collateral without the Administrative Agent’s and the
Requisite Lenders’ consent or to obtain any financing under
section 364 of the Bankruptcy Code other than the facility
hereunder unless such motion or order contemplates payment in full
in Cash of the Obligations immediately upon consummation of the
transactions contemplated thereby;

 

(xxiv)                       any
Credit Party or any person on behalf of any Credit Party shall file
any motion seeking authority to consummate a sale of assets of the
Credit Parties or the Collateral having a value in excess of
$250,000 outside the ordinary course of business and not otherwise
permitted hereunder;

 

(xxv)             [reserved];

 

(xxvi)                       the
filing by any of the Credit Parties of a plan of reorganization
under Chapter 11 of the Bankruptcy Code other than an Acceptable
Plan of Reorganization;

 

(xxvii)                       the
filing by any of the Credit Parties of a disclosure statement
related to a plan of reorganization under Chapter 11 of the
Bankruptcy Code other than an Acceptable Disclosure
Statement;

 

(xxviii)                       the
entry of an order approving a plan of reorganization under Chapter
11 of the Bankruptcy Code in any of the Cases other than an
Acceptable Confirmation Order;

 

(xxix)                       the
entry of an order approving a disclosure statement related to a
plan of reorganization under Chapter 11 of the Bankruptcy Code
other than an Acceptable Disclosure Statement Approval
Order;

 

(xxx)             if
any Credit Party or any of its Subsidiaries is enjoined,
restrained, or in any way prevented by court order from continuing
to conduct all or any part of the business affairs of the Credit
Parties and their Subsidiaries, taken as a whole, which could
reasonably be expected to have a Material Adverse Effect; provided,
that the Credit Parties shall have five (5) Business Days after the
entry of such an order to obtain a court order vacating, staying or
otherwise obtaining relief from the Bankruptcy Court or another
court to address any such court order;

 

 

 

99

 

 

 

 

(xxxi)                       any
Credit Party shall make any payment (whether by way of adequate
protection or otherwise) of principal or interest or otherwise on
account of any pre-petition Indebtedness or payables other than
payments in respect of the repayment of the Existing Debt or as
otherwise permitted under this Agreement, in each case, to the
extent authorized by one or more “first day” or
“second day” orders, the Interim Order or the Final
Order and consistent with the Approved Budget;

 

(xxxii)                       without
the Requisite Lenders’ consent, any Credit Party or any
Subsidiary thereof shall file any motion or other request with the
Bankruptcy Court seeking (i) to grant or impose, under section 364
of the Bankruptcy Code or otherwise, liens or security interests in
any Collateral, whether senior, equal or subordinate to the
Collateral Agent’s liens and security interests; (ii) to use,
or seek to use, Cash Collateral; or (iii) to modify or affect any
of the rights of the Administrative Agent, the Collateral Agent or
the Lenders under the Orders or the Credit Documents, by any order
entered in the Cases; or

 

(xxxiii)                       any
order shall be entered which dismisses any of the Cases of the
Debtors and which order does not provide for termination of the
Commitments and indefeasible payment in full in Cash of the
Obligations under the Credit Documents and continuation of the
Liens with respect thereto until the effectiveness thereof (other
than contingent indemnity obligations not yet due), or any of the
Debtors shall seek confirmation of any such plan or entry of any
such order;

 

THEN, upon the occurrence and during the
continuance of any Event of Default and notice to the Borrower by
the Administrative Agent provided at the written request of (or
with the consent of) the Requisite Lenders, (1) the Commitments
shall immediately terminate, (2) the unpaid principal amount of and
accrued interest on the Loans and all other Obligations shall
immediately become due and payable, in each case without
presentment, demand, protest or other requirement of any kind, all
of which are hereby expressly waived by each Credit Party, and (3)
the Administrative Agent may cause the Collateral Agent to enforce
any and all Liens created pursuant to the Collateral
Documents.

 

Notwithstanding
anything to the contrary herein, subject to the provisions of the
Interim Order (and, when entered, the Final Order), (x) the
enforcement of certain Liens or remedies with respect to the
Collateral shall be subject to the Remedies Notice Period and (y)
after expiration of the Remedies Notice Period, the Administrative
Agent and the Collateral Agent, on behalf of the Secured Parties,
shall be entitled to exercise all rights and remedies provided for
in this Agreement, the Collateral Documents, the Orders and under
applicable law. Solely during the Remedies Notice Period, the
Debtors may continue to use Cash Collateral in the ordinary course
of business, consistent with past practices, including for the
purpose of funding the Carve-Out. During the Remedies Notice
Period, any party in interest shall be entitled to seek an
emergency hearing with the Bankruptcy Court, for the sole purpose
of contesting whether an Event of Default has occurred and is
continuing.

 

After
the exercise of remedies provided for in this Section 8 (or after
the Loans have automatically become immediately due and payable,
any amounts received on account of the Obligations, whether as
proceeds of Collateral or otherwise, shall be applied by the
Administrative Agent in the following order (to the fullest extent
permitted by mandatory provisions of applicable law):

 

 

 

100

 

 

 

 

First, to payment of that portion of
the Obligations constituting fees, indemnities, expenses and other
amounts payable to each of the Administrative Agent and the
Collateral Agent in their respective capacities as
such;

 

Second, to payment of that portion of
the Obligations constituting fees, indemnities and other amounts
(other than principal and interest) payable to the Lenders, ratably
among them in proportion to the amounts described in this clause
Second payable to them;

 

Third, to payment of that portion of
the Obligations constituting accrued and unpaid interest on the
Loans, ratably among the Secured Parties in proportion to the
respective amounts described in this clause Third payable to
them;

 

Fourth, to payment of that portion of
the Obligations constituting unpaid principal of the Loans, ratably
among the Secured Parties in proportion to the respective amounts
described in this clause Fourth held by them;

 

Fifth, to the payment of all other
Obligations of the Borrower that are due and payable to the
Administrative Agent and the other Secured Parties on such date,
ratably based upon the respective aggregate amounts of all such
Obligations owing to the Administrative Agent and the other Secured
Parties on such date; and

 

Last, the balance, if any, after all of
the Obligations have been paid in full in Cash, to the Borrower or
as otherwise required by law.

 

Notwithstanding
anything to the contrary herein, any proceeds of the Vector
Subordinated Note Collateral (as defined in the Interim Order and,
when entered, the Final Order) prior to the payment in full of the
claims of the Revolving Lenders and Issuing Banks (each as defined
in the Existing First Lien Credit Agreement) arising under the
Existing First Lien Credit Agreement shall be applied in accordance
with the last paragraph of Section 5.02 of the Existing First Lien
Pledge and Security Agreement.

 

 

 

SECTION
9.                                AGENTS

 

9.1           Appointment
of Agents. Wilmington Trust
is hereby appointed Administrative Agent and Collateral Agent
hereunder and under the other Credit Documents, and each Lender
hereby authorizes Wilmington Trust to act as the Administrative
Agent and the Collateral Agent in accordance with the terms hereof
and of the other Credit Documents. Without limiting the generality
of the foregoing, the Lenders hereby expressly authorize the Agents
to (i) execute any and all documents (including releases) with
respect to the Collateral and the rights of the Secured Parties
with respect thereto, as contemplated by and in accordance with the
provisions of this Agreement and the Collateral Documents and (ii)
negotiate, enforce or settle any claim, action or proceeding
affecting the Lenders in their capacity as such, at the direction
of the Requisite Lenders and, in each case, acknowledge and agree
that any such action by any Agent shall bind the Lenders. Each such
Agent hereby agrees to act in its capacity as such upon the express
conditions contained herein and in the other Credit Documents, as
applicable. Other than Sections 9.7 and 9.8(d), the provisions of
this Section 9 are solely for the benefit of the Agents and the
Lenders, and no Credit Party shall have any rights as a third party
beneficiary of any such provisions. In performing its functions and
duties hereunder, no Agent assumes, and shall not be deemed to have
assumed, any obligation towards or relationship of agency or trust
with or for the Borrower or any Subsidiary.

 

 

 

101

 

 

 

 

9.2           Powers
and Duties. Each Lender
irrevocably authorizes each Agent to take such actions on such
Lender’s behalf and to exercise such powers, rights and
remedies hereunder and under the other Credit Documents as are
specifically delegated or granted to such Agent by the terms hereof
and thereof, together with such actions, powers, rights and
remedies as are reasonably incidental thereto. Each Agent shall
have only those duties and responsibilities that are expressly
specified herein and in the other Credit Documents. Each Agent may
exercise such powers, rights and remedies and perform such duties
by or through its agents, employees and other Related Parties. No
Agent shall have, by reason hereof or of any of the other Credit
Documents, a fiduciary relationship in respect of any Lender or any
other Person (regardless of whether or not a Default or an Event of
Default has occurred), it being understood and agreed that the use
of the term “agent” (or any other similar term) herein
or in any other Credit Documents with reference to any Agent is not
intended to connote any fiduciary or other implied obligations
arising under any agency doctrine of any applicable law, and that
such term is used as a matter of market custom; and nothing herein
or in any of the other Credit Documents, expressed or implied, is
intended to or shall be so construed as to impose upon any Agent
any obligations in respect hereof or of any of the other Credit
Documents except as expressly set forth herein or therein. Without
limiting the generality of the foregoing, no Agent shall, except as
expressly set forth herein and in the other Credit Documents, have
any duty to disclose, or be liable for the failure to disclose, any
information relating to the Borrower or any of its Affiliates that
is communicated to or obtained by the Person serving as such Agent
or any of its Affiliates in any capacity.

 

9.3           General
Immunity.

 

(a)           No
Responsibility for Certain Matters. No Agent shall be
responsible to any Lender for (i) the execution, effectiveness,
genuineness, validity, enforceability, collectability or
sufficiency hereof or of any other Credit Document; (ii) the
creation, perfection, maintenance, preservation, continuation or
priority of any Lien or security interest created, purported to be
created or required under any Credit Document; (iii) the value or
the sufficiency of any Collateral; (iv) the satisfaction of any
condition set forth in Section 3 or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to such
Agent; (v) the failure of any Credit Party, Lender or other Agent
to perform its obligations hereunder or under any other Credit
Document; or (vi) any representations, warranties, recitals or
statements made herein or therein or in any written or oral
statements or in any financial or other statements, instruments,
reports or certificates or any other documents furnished or made by
any Agent to the Lenders or by or on behalf of any Credit Party to
any Agent or any Lender in connection with the Credit Documents and
the transactions contemplated thereby or for the financial
condition or affairs of any Credit Party or any other Person liable
for the payment of any Obligations, nor shall any Agent be required
to ascertain or inquire as to the performance or observance of any
of the terms, conditions, provisions, covenants or agreements
contained in any of the Credit Documents or as to the use of the
proceeds of the Loans or as to the existence or possible existence
of any Default or Event of Default (nor shall any Agent be deemed
to have knowledge of the existence or possible existence of any
Default or Event of Default unless and until written notice thereof
(stating that it is a “notice of default”) is given to
such Agent by the Borrower or any Lender) or to make any
disclosures with respect to the foregoing.

 

 

 

102

 

 

 

 

(b)           Exculpatory
Provisions. None of any Agent or any of its Related Parties
shall be liable to the Lenders for any action taken or omitted by
such Agent under or in connection with any of the Credit Documents
except to the extent caused by such Agent’s gross negligence
or willful misconduct, as determined by a final, non-appealable
judgment of a court of competent jurisdiction. Without limiting the
generality of the foregoing, no Agent nor any of its Related
Parties shall (x) be liable to any Secured Party for any action
taken or omitted by any Agent (i) with the consent or at the
request of the Requisite Lenders (or such other Lenders as may be
required, or as such Agent shall believe in good faith to be
required, to give such instructions under Section 8.1 or 10.5), or
(y) in the absence of its own gross negligence or willful
misconduct as determined by a court of competent jurisdiction by
final and nonappealable judgment, (ii) shall be subject to any
fiduciary or other implied duties, regardless of whether a Default
or Event of Default has occurred and is continuing, and (iii) shall
be liable for any apportionment or distribution of payments made by
it in good faith and if any such apportionment or distribution is
subsequently determined to have been made in error the sole
recourse of any Lender to whom payment was due but not made, shall
be to recover from other Lenders any payment in excess of the
amount to which they are determined to be entitled (and such other
Lenders hereby agree to return to such Lender any such erroneous
payments received by them). Each Agent shall be entitled to refrain
from the taking of any action (including the failure to take an
action) in connection herewith or with any of the other Credit
Documents or from the exercise of any power, discretion or
authority (including the making of any requests, determinations,
judgments, calculations or the expression of any satisfaction or
approval) vested in it hereunder or thereunder unless and until
such Agent shall have received instructions in respect thereof from
the Requisite Lenders (or such other Lenders as may be required, or
as such Agent shall believe in good faith to be required, to give
such instructions under Section 8.1 or 10.5) and upon receipt of
such instructions from the Requisite Lenders (or such other
Lenders, as the case may be), such Agent shall be entitled to act
or (where so instructed) refrain from acting, or to exercise such
power, discretion or authority, in accordance with such
instructions; provided that such Agent shall
not be required to take any action that, in its opinion, could
expose such Agent to liability or be contrary to any Credit
Document or applicable law, including any action that may be in
violation of the automatic stay under any Debtor Relief Laws.
Without prejudice to the generality of the foregoing, (i) each
Agent shall be entitled to rely, and shall be fully protected in
relying, upon any notice, request, certificate, consent, statement,
instrument, document or other writing (including any electronic
message, Internet or intranet website posting or other
distribution) believed by it to be genuine and to have been signed,
sent or otherwise provided by the proper Person (whether or not
such Person in fact meets the requirements set forth in the Credit
Documents for being the signatory, sender or provider thereof) and
on opinions and judgments of attorneys (who may be attorneys for
the Borrower and the Subsidiaries), accountants, insurance
consultants, architects, engineers and other experts or
professional advisors selected by it, and such Agent shall not be
liable for any action it takes or omits to take in good faith in
reliance on any of the foregoing documents; and (ii) no Lender
shall have any right of action whatsoever against any Agent as a
result of such Agent acting or (where so instructed) refraining
from acting hereunder or any of the other Credit Documents in
accordance with the instructions of the Requisite Lenders (or such
other Lenders as may be required, or as such Agent shall believe in
good faith to be required, to give such instructions under Section
8.1 or Section 10.5). In determining compliance with any condition
hereunder to the making of any Credit Extension that by its terms
must be fulfilled to the satisfaction of a Lender, the
Administrative Agent may presume the satisfaction of such Lender
unless the Administrative Agent shall have received written notice
to the contrary from such Lender reasonably in advance of such
Credit Extension.

 

 

 

103

 

 

 

 

(c)           Delegation
of Duties. Each Agent may perform any and all of its duties
and exercise any and all of its powers, rights and remedies under
this Agreement or any other Credit Document by or through any one
or more sub-agents appointed by such Agent. Each Agent and any such
of its sub-agents may perform any and all of its duties and
exercise any and all of its powers, rights and remedies by or
through their respective Affiliates. The exculpatory,
indemnification and other provisions set forth in this Section 9.3
and in Sections 9.6 and 10.3 shall apply to any such sub-agent or
Affiliate (and to their respective Related Parties) as if they were
named as such Agent. No Agent shall be responsible for the
negligence or misconduct of any sub-agent appointed by it except to
the extent that a court of competent jurisdiction determines in a
final, non-appealable judgment that such Agent acted with gross
negligence or willful misconduct in the selection of such
sub-agent. Notwithstanding anything herein to the contrary, with
respect to each sub-agent appointed by any Agent, (i) such
sub-agent shall be a third party beneficiary under the exculpatory,
indemnification and other provisions set forth in this Section 9.3
and Sections 9.6 and 10.3 and shall have all of the rights and
benefits of a third party beneficiary, including an independent
right of action to enforce such provisions directly, without the
consent or joinder of any other Person, against any or all of the
Credit Parties and the Lenders and (ii) such sub-agent shall
only have obligations to such Agent, and not to any Credit Party,
any Lender or any other Person, and no Credit Party, Lender or any
other Person shall have any rights, directly or indirectly, as a
third party beneficiary or otherwise, against such
sub-agent.

 

9.4           Acts
in Individual Capacity. Nothing herein or
in any other Credit Document shall in any way impair or affect any
of the rights and powers of, or impose any duties or obligations
upon, if applicable, any Agent in its individual capacity as a
Lender hereunder. With respect to its Loans, if applicable, each
Agent shall have the same rights and powers hereunder as any other
Lender and may exercise the same as if it were not performing the
duties and functions delegated to it hereunder. Each Agent and its
Affiliates may accept deposits from, lend money to, own securities
of, act as the financial advisor or in any other advisory capacity
for and generally engage in any kind of banking, trust, financial
advisory, commodity, derivative or other business with the Borrower
or any of its Affiliates as if it were not performing the duties
and functions specified herein, and may accept fees and other
consideration from the Borrower and its Affiliates for services in
connection herewith and otherwise, in each case without having to
account therefor to the Lenders. Each Agent and its Affiliates,
when acting under any agreement in respect of any such activity or
under any related agreements, will be acting for its own account as
principal and will be under no obligation or duty as a result of
such Agent’s role in connection with the credit facility
provided herein or otherwise to take any action or refrain from
taking any action (including refraining from exercising any right
or remedy that might be available to it).

 

9.5           Lenders’
Representations, Warranties and
Acknowledgments. (a) Each Lender
represents and warrants that it has made, and will continue to
make, its own independent investigation of the financial condition
and affairs of the Borrower and the Subsidiaries in connection with
Credit Extensions or taking or not taking action under or based
upon any Credit Document, in each case without reliance on any
Agent or any of its Related Parties. No Agent shall have any duty
or responsibility, either initially or on a continuing basis, to
make any such investigation or any such appraisal on behalf of
Lenders or to provide any Lender with any credit or other
information with respect thereto, whether coming into its
possession before the making of the Credit Extensions or at any
time or times thereafter.

 

(b)           Each
Lender, by delivering its signature page to this Agreement
or an Assignment
Agreement and funding its Loans on the Closing Date, as the case
may be, shall be deemed to have acknowledged receipt of, and
consented to and approved, each Credit Document and each other
document required to be approved by any Agent, the Requisite
Lenders or any other Lenders, as applicable, on the Closing
Date.

 

 

 

104

 

 

 

 

(c)           Each
Lender acknowledges and agrees that Wilmington Trust or one or more
of its Affiliates will be acting as the administrative agent and
collateral agent under the Super Senior Secured Credit Agreement
and as the administrative agent and collateral agent under the
Existing First Lien Credit Agreement and, in its capacity as the
administrative agent and collateral agent under the Super Senior
Secured Credit Agreement, is a party to the Intercreditor Agreement
(as defined in the Super Senior Secured Credit Agreement) and, in
its capacity as the administrative agent and collateral agent under
the Existing First Lien Credit Agreement, is a party to the
Intercreditor Agreement (as defined in the Super Senior Secured
Credit Agreement) and the 1L/2L Intercreditor Agreement (as defined
in the Super Senior Secured Credit Agreement). Each Lender and
Credit Party waives any conflict of interest, now contemplated or
arising hereafter, in connection therewith and agrees not to assert
against Wilmington Trust or any of its Affiliates any claims,
causes of action, damages or liabilities of whatever kind or nature
relating to any such conflict of interest.

 

9.6           Right
to Indemnity. Each Lender, in
proportion to its applicable Pro Rata Share (determined as set
forth below), severally agrees to indemnify each Agent and each
Related Party thereof, to the extent that such Agent or such
Related Party shall not have been reimbursed by any Credit Party
(and without limiting any Credit Party’s obligations under
the Credit Documents to do so), for and against any and all
Indemnified Liabilities of any kind or nature whatsoever that may
be imposed on, incurred by or asserted against such Agent or any
such Related Party in its capacity as such; provided that no Lender shall
be liable for any portion of such liabilities, obligations, losses,
damages, penalties, claims, actions, judgments, suits, costs,
expenses or disbursements resulting from such Agent’s gross
negligence or willful misconduct, as determined by a final,
non-appealable judgment of a court of competent jurisdiction;
provided
further that no
action taken in accordance with the directions of the Requisite
Lenders (or such other number or percentage of the Lenders as shall
be required by the Credit Documents) shall be deemed to constitute
gross negligence or willful misconduct for purposes of this Section
9.6. If any indemnity furnished to any Agent for any purpose shall,
in the opinion of such Agent, be insufficient or become impaired,
such Agent may call for additional indemnity and cease, or not
commence, to do the acts indemnified against until such additional
indemnity is furnished; provided that in no event shall
this sentence require any Lender to indemnify such Agent against
any liability, obligation, loss, damage, penalty, claim, action,
judgment, suit, cost, expense or disbursement in excess of such
Lender’s applicable Pro Rata Share thereof; and provided further that this sentence
shall not be deemed to require any Lender to indemnify such Agent
against any liability, obligation, loss, damage, penalty, claim,
action, judgment, suit, cost, expense or disbursement described in
the first proviso (but subject to the second proviso) in the
immediately preceding sentence. In the case of any investigation,
litigation or proceeding giving rise to any Indemnified
Liabilities, this Section 9.6 applies whether any such
investigation, litigation or proceeding is brought by any Lender or
any other Person. Without limitation of the foregoing, each Lender
shall reimburse each Agent upon demand for its Pro Rata Share of
any costs or out-of-pocket expenses (with respect to the fees and
expenses of counsel, limited to such fees, expenses and
disbursements of counsel to the Agents for which the Agents are
entitled payment or reimbursement from any Borrower under Section
10.2 or 10.3) incurred by the Administrative Agent or the
Collateral Agent, as the case may be, in connection with the
preparation, execution, delivery, administration, modification,
amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights
or responsibilities under, this Agreement, any other Credit
Document, or any document contemplated by or referred to herein, to
the extent that the Administrative Agent or the Collateral Agent,
as the case may be, is not reimbursed for such expenses by or on
behalf of the Credit Parties; provided that such reimbursement by
the Lenders shall not affect the Credit Parties’ continuing
reimbursement obligations with respect thereto. For purposes of
this Section 9.6, “Pro Rata Share” shall be determined
as of the time that the applicable indemnity payment is sought (or,
in the event at such time all the Commitments shall have terminated
and all the Loans shall have been repaid in full, as of the time
most recently prior thereto when any Loans or Commitments remained
outstanding). Each Lender hereby authorizes the Administrative
Agent and Collateral Agent to set off and apply any and all amounts
at any time owing to such Lender under any Credit Document or
otherwise payable by the Administrative Agent or the Collateral
Agent to such Lender from any source against any amount due to the
Administrative Agent or the Collateral Agent under this Section
9.6. The undertaking in this Section 9.6 shall survive termination
of the Commitments, the payment of all other Obligations and the
resignation and/or replacement of the Administrative Agent or the
Collateral Agent, as the case may be.

 

 

 

105

 

 

 

 

9.7           Successor
Administrative Agent and Collateral Agent. Subject to the
terms of this Section 9.7, the Administrative Agent may resign at
any time from its capacity as such. In connection with such
resignation, the Administrative Agent shall give notice of its
intent to resign to the Lenders and the Borrower. Upon receipt of
any such notice of resignation, the Requisite Lenders, subject to,
unless an Event of Default shall have occurred and is continuing,
the prior written consent of the Borrower (not to be unreasonably
withheld, conditioned or delayed), shall have the right to appoint
a successor. If no successor shall have been so appointed by the
Requisite Lenders and shall have accepted such appointment within
30 days after the resigning Administrative Agent gives notice of
its intent to resign, then the resigning Administrative Agent may,
on behalf of the Lenders, appoint a successor; provided that in no event shall
any such successor Administrative Agent be a Defaulting Lender or a
Disqualified Institution. If the Administrative Agent shall be a
Defaulting Lender pursuant to clause (d) of the definition of such
term, the Requisite Lenders may, to the extent permitted by
applicable law, by notice in writing to the Borrower and the
Administrative Agent remove the Administrative Agent in its
capacity as such and, subject to, unless an Event of Default shall
have occurred and is continuing, the prior written consent of the
Borrower (not to be unreasonably withheld, conditioned or delayed),
appoint a successor. Any resignation or removal of the
Administrative Agent shall be deemed to be a resignation of the
Collateral Agent, and any successor Administrative Agent appointed
pursuant to this Section 9.7 shall, upon its acceptance of such
appointment, become the successor Collateral Agent for all purposes
of the Credit Documents. Upon the acceptance of its appointment as
Administrative Agent and Collateral Agent hereunder by a successor,
such successor shall succeed to and become vested with all the
rights, powers, privileges and duties of the resigning or removed
Administrative Agent and Collateral Agent, and the resigning or
removed Administrative Agent and Collateral Agent shall be
discharged from its duties and obligations hereunder and under the
other Credit Documents. The fees payable by the Borrower to a
successor Administrative Agent and Collateral Agent shall be the
same as those payable to its predecessor unless otherwise agreed by
the Borrower and such successor. Notwithstanding the foregoing, in the
event (a) no successor to a resigning Administrative Agent shall
have been so appointed and shall have accepted such appointment
within 30 days after the resigning Administrative Agent gives
notice of its intent to resign, the resigning Administrative Agent
may give notice of the effectiveness of its resignation to the
Lenders and the Borrower or (b) no successor to a removed
Administrative Agent shall have been so appointed and shall have
accepted such appointment by the day that is 30 days following of
the issuance of a notice of removal, the removal shall become
effective on such 30th day, and on the date of effectiveness of
such resignation or removal, as the case may be, (i) the resigning
or removed Administrative Agent and Collateral Agent shall be
discharged from its duties and obligations hereunder and under the
other Credit Documents, provided that, solely for
purposes of maintaining any security interest granted to the
Collateral Agent under any Collateral Document for the benefit of
the Secured Parties, the resigning or removed Collateral Agent
shall continue to be vested with such security interest as
collateral agent for the benefit of the Secured Parties and, in the
case of any Collateral in the possession of the Collateral Agent,
shall continue to hold such Collateral, in each case until such
time as a successor Collateral Agent is appointed and accepts such
appointment in accordance with this paragraph (it being understood
and agreed that the resigning or removed Collateral Agent shall
have no duty or obligation to take any further action under any
Collateral Document, including any action required to maintain the
perfection of any such security interest), and (ii) the Requisite
Lenders shall succeed to and become vested with all the rights,
powers, privileges and duties of the resigning or removed
Administrative Agent and Collateral Agent, provided that (A) all payments
required to be made hereunder or under any other Credit Document to
the Administrative Agent for the account of any Person other than
the Administrative Agent shall be made directly to such Person and
(B) all notices and other communications required or contemplated
to be given or made to the Administrative Agent or the Collateral
Agent shall also directly be given or made to each Lender.
Following the effectiveness of the Administrative Agent’s and
Collateral Agent’s resignation from its capacity as such, the
provisions of this Section 9 and of Section 10.2 and Section 10.3
shall continue in effect for the benefit of such resigning or
removed Agent, its sub-agents and their respective Related Parties
in respect of any actions taken or omitted to be taken by any of
them while it was acting as Administrative Agent or Collateral
Agent, as applicable, and in respect of the matters referred to in
the proviso under clause (a) above.

 

 

 

106

 

 

 

 

9.8           Collateral
Documents and Obligations Guarantee. (a) Agents under Collateral Documents and
the Obligations Guarantee. Each Secured Party hereby further
authorizes the Administrative Agent and the Collateral Agent to be
the agent for and representative of the Secured Parties with
respect to the Guarantees purported to be created under the Credit
Documents, the Collateral and the Credit Documents and authorizes
the Administrative Agent and the Collateral Agent to execute and
deliver, on behalf of such Secured Party, any Collateral Documents
that the Administrative Agent or the Collateral Agent determines in
its discretion to execute and deliver in connection with the
satisfaction of the Collateral and Guarantee Requirement (and
hereby grants to the Administrative Agent and the Collateral Agent
any power of attorney that may be required under any applicable law
in connection with such execution and delivery on behalf of such
Secured Party).

 

(b)           Right
to Realize on Collateral and Enforce Obligations Guarantee.
Notwithstanding anything contained in any of the Credit Documents
to the contrary, the Credit Parties, the Administrative Agent, the
Collateral Agent and each Secured Party hereby agree that
(i) except with respect to the exercise of set-off rights of
any Lender or with respect to a Secured Party’s right to file
a proof of claim in any proceeding under the Debtor Relief Laws, no
Secured Party shall have any right individually to realize upon any
of the Collateral or to enforce any Guarantees purported to be
created under the Credit Documents, it being understood and agreed
that all powers, rights and remedies under the Credit Documents may
be exercised solely by the Administrative Agent or the Collateral
Agent, as applicable, for the benefit of the Secured Parties in
accordance with the terms thereof and that all powers, rights and
remedies under the Collateral Documents may be exercised solely by
the Collateral Agent for the benefit of the Secured Parties in
accordance with the terms thereof and (ii) in the event of a
foreclosure, exercise of a power of sale or similar enforcement
action by the Collateral Agent on any of the Collateral pursuant to
a public or private sale or other disposition (including pursuant
to Section 363(k), Section 1129(b)(2)(a)(ii) or any other
applicable section of the Bankruptcy Code, any analogous Debtor
Relief Laws or any law relating to the granting or perfection of
security interests), the Collateral Agent (or any Lender, except
with respect to a “credit bid” pursuant to Section
363(k), Section 1129(b)(2)(a)(ii) or any other applicable
section of the Bankruptcy Code any analogous Debtor Relief Laws or
any law relating to the granting or perfection of security
interests) may be the purchaser or licensor of any or all of such
Collateral at any such sale or other disposition and the Collateral
Agent, as agent for and representative of the Secured Parties (but
not any Lender or Lenders in its or their respective individual
capacities) shall be entitled, upon instructions from the Requisite
Lenders (subject to procedures reasonably satisfactory to the
Collateral Agent), for the purpose of bidding and making settlement
or payment of the purchase price for all or any portion of the
Collateral sold or licensed at any such sale or other disposition,
to use and apply any of the Obligations as a credit on account of
the purchase price for any Collateral payable by the Collateral
Agent at such sale or other disposition. In connection with any
such bid referred to in clause (ii) above, (A) the Collateral
Agent shall be authorized to form one or more acquisition vehicles
to make a bid, (B) the Collateral Agent shall be authorized to
adopt documents providing for the governance of the acquisition
vehicle or vehicles (provided that any actions by the Collateral
Agent with respect to such acquisition vehicle or vehicles,
including any disposition of the assets or Equity Interests
thereof, shall be governed, directly or indirectly, by the vote of
the Requisite Lenders, irrespective of the termination of this
Agreement and without giving effect to the limitations on actions
by the Requisite Lenders contained in Section 10.5(a), (C) the
Collateral Agent shall be authorized to assign the relevant
Obligations to any such acquisition vehicle pro rata among the
Lenders, as a result of which each of the Lenders shall be deemed
to have received a pro rata portion of any Equity Interests and/or
debt instruments issued by such an acquisition vehicle on account
of the assignment of the Obligations to be credit bid, all without
the need for any Secured Party or acquisition vehicle to take any
further action, and (D) to the extent that Obligations that are
assigned to an acquisition vehicle are not used to acquire
Collateral for any reason (as a result of another bid being higher
or better, because the amount of Obligations assigned to the
acquisition vehicle exceeds the amount of debt credit bid by the
acquisition vehicle or otherwise), such Obligations shall
automatically be reassigned to the Lenders pro rata and the Equity
Interests and/or debt instruments issued by any acquisition vehicle
on account of the Obligations that had been assigned to the
acquisition vehicle shall automatically be cancelled, without the
need for any Secured Party or any acquisition vehicle to take any
further action.

 

 

 

107

 

 

 

 

(c)           [Reserved].

 

(d)           Release
of Collateral and Obligations Guarantees. Notwithstanding
anything to the contrary herein or in any other Credit
Document:

 

(i)             When
all Obligations have been paid in full in Cash (excluding
contingent obligations as to which no claim has been made) and all
Commitments have terminated, upon request of the Borrower, the
Administrative Agent and the Collateral Agent shall (without notice
to, or vote or consent of, any Secured Party) take such actions as
shall be required to release its security interest in all
Collateral, and to release all Guarantees provided for in any
Credit Document.

 

(ii)             (A)
If all the Equity Interests in any Guarantor Subsidiary held by the
Borrower and the Subsidiaries shall be sold or otherwise disposed
of (including by merger or consolidation) in any transaction
permitted by this Agreement, and as a result of such sale or other
disposition such Guarantor Subsidiary shall cease to be a
Subsidiary of the Borrower, such Guarantor Subsidiary shall, upon
effectiveness of such designation, or the consummation of such sale
or other disposition, automatically be discharged and released from
its Obligations Guarantee and all security interests created by the
Collateral Documents in Collateral owned by such Guarantor
Subsidiary shall be automatically released, without any further
action by any Secured Party or any other Person.

 

(B)
Upon any sale or other transfer by any Credit Party (other than to
the Borrower or any Restricted Subsidiary) of any Collateral in a
transaction permitted under this Agreement, or upon the
effectiveness of any written consent to the release of the security
interest created under any Collateral Document in any Collateral
pursuant to Section 10.5, the security interests in such
Collateral created by the Collateral Documents shall be
automatically released, without any further action by any Secured
Party or any other Person.

 

 

 

108

 

 

 

 

(iii)             In
connection with any termination, release or subordination pursuant
to this Section 9.8(d), the Administrative Agent and the Collateral
Agent shall execute and deliver to any Credit Party, at such Credit
Party’s expense, all documents that such Credit Party shall
reasonably request to evidence such termination, release or
subordination provided, that, other than in the case of a release
pursuant to Section 9.8(d)(i) above, the Borrower or other
applicable Credit Party shall have provided the Administrative
Agent and the Collateral Agent, at least five (5) Business Days
prior to the date of the proposed termination, release or
subordination, a request for such termination, release or
subordination identifying the terms of the termination, release or
subordination in reasonable detail, together with a written
certification by the Borrower stating that such transaction is in
compliance with this Agreement and the other Credit Documents (and
the Lenders hereby authorize and direct each Agent to conclusively
rely on such certifications in performing its obligations under
this Section 9.8(d)). Any execution and delivery of documents
pursuant to this Section 9.8(d) shall be without recourse to or
warranty by the Administrative Agent or the Collateral
Agent.

 

(e)           Additional
Exculpatory Provisions. The Collateral Agent shall not be
responsible for or have a duty to ascertain or inquire into any
representation or warranty regarding the existence, value or
collectability of any Collateral, the existence, priority or
perfection of the Collateral Agent’s Lien on any Collateral
or any certificate prepared by any Credit Party in connection
therewith, nor shall the Collateral Agent be responsible or liable
to the Secured Parties for any failure to monitor or maintain any
portion of the Collateral.

 

(f)           Acceptance
of Benefits. Each Secured Party, whether or not a party
hereto, will be deemed, by its acceptance of the benefits of the
Collateral or the Guarantees purported to be created under the
Credit Documents, to have agreed to the provisions of this Section
9 (including the authorization and the grant of the power of
attorney pursuant to Section 9.8(a)) and all the other provisions
of this Agreement relating to Collateral, any such Guarantee or any
Collateral Document and to have agreed to be bound by the Credit
Documents as a Secured Party thereunder. It is understood and
agreed that the benefits of the Collateral and any such Guarantee
to any Secured Party are made available on an express condition
that, and is subject to, such Secured Party not asserting that it
is not bound by the appointments and other agreements expressed
herein to be made, or deemed herein to be made, by such Secured
Party.

 

9.9           Withholding
Taxes. To the extent
required by any applicable law, the Administrative Agent may
withhold from any payment to any Lender an amount equivalent to any
applicable withholding Tax. If the IRS or any other Governmental
Authority asserts a claim that the Administrative Agent did not
properly withhold Tax from amounts paid to or for the account of
any Lender because the appropriate form was not delivered or was
not properly executed or because such Lender failed to notify the
Administrative Agent of a change in circumstance which rendered the
exemption from, or reduction of, withholding Tax ineffective or for
any other reason, or if the Administrative Agent reasonably
determines that a payment was made to a Lender pursuant to this
Agreement without deduction of applicable withholding Tax from such
payment, such Lender shall indemnify the Administrative Agent fully
for all amounts paid, directly or indirectly, by the Administrative
Agent as Tax or otherwise, including any penalties or interest and
together with all expenses (including legal expenses, allocated
internal costs and out-of-pocket expenses) incurred.

 

 

 

109

 

 

 

 

9.10           Administrative
Agent May File Bankruptcy Disclosure and Proofs of
Claim. In case of the
pendency of any proceeding under any Debtor Relief Laws with
respect to any Credit Party, the Administrative Agent (irrespective
of whether the principal of any Loan shall then be due and payable
as herein expressed or by declaration or otherwise and irrespective
of whether the Administrative Agent shall have made any demand on
the Borrower) shall be entitled and empowered (but not obligated)
by intervention in such proceeding or otherwise:

 

(a)           to
file a verified statement pursuant to rule 2019 of the Federal
Rules of Bankruptcy Procedure that, in its sole opinion, complies
with such rule’s disclosure requirements for entities
representing more than one creditor;

 

(b)           to
file and prove a claim for the whole amount of the principal and
interest owing and unpaid in respect of the Loans and all other
Obligations that are owing and unpaid and to file such other
documents as may be necessary or advisable in order to have the
claims of the Lenders, the Administrative Agent, the Collateral
Agent and any other Secured Party (including any claim under
Sections 2.7, 2.9, 2.15, 2.17, 2.18, 2.19, 10.2 and 10.3) allowed
in such judicial proceeding; and

 

(c)           to
collect and receive any monies or other property payable or
deliverable on any such claims and to distribute the
same;

 

and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such proceeding is hereby authorized
by each Lender and each other Secured Party to make such payments
to the Administrative Agent and, in the event that the
Administrative Agent shall consent to the making of such payments
directly to the Lenders or the other Secured Parties, to pay to the
Administrative Agent any amount due to the Administrative Agent, in
such capacity or in its capacity as the Collateral Agent, or to its
Related Parties under the Credit Documents (including under
Sections 10.2 and 10.3). To the extent that the payment of any such
amounts due to the Administrative Agent, in such capacity or in its
capacity as the Collateral Agent, or to its Related Parties out of
the estate in any such proceeding shall be denied for any reason,
payment of the same shall be secured by a Lien on, and shall be
paid out of, any and all distributions, dividends, money,
securities and other property that the Lenders or the other Secured
Parties may be entitled to receive in such proceeding, whether in
liquidation or under any plan of reorganization or arrangement or
otherwise. Nothing contained herein shall be deemed to authorize
the Administrative Agent to authorize or consent to or accept or
adopt on behalf of any Lender any plan of reorganization,
arrangement, adjustment or composition affecting the Obligations or
the rights of any Lender, or to vote in respect of the claim of any
Lender in any such proceeding.

 

9.11           Certain
ERISA Matters.

 

(a)           Each
Lender (x) represents and warrants, as of the date such Person
became a Lender party hereto, to, and (y) covenants, from the date
such Person became a Lender party hereto to the date such Person
ceases being a Lender party hereto, for the benefit of, the
Administrative Agent and not, for the avoidance of doubt, to or for
the benefit of the Borrower or any other Credit Party, that at
least one of the following is and will be true:

 

 

 

110

 

 

 

 

(i)             such
Lender is not using “plan assets” (within the meaning
of Section 3(42) of ERISA or otherwise) of one or more Benefit
Plans with respect to such Lender’s entrance into,
participation in, administration of and performance of the Loans,
Commitments or this Agreement,

 

(ii)             the
transaction exemption set forth in one or more PTEs, such as PTE
84-14 (a class exemption for certain transactions determined by
independent qualified professional asset managers), PTE 95-60 (a
class exemption for certain transactions involving insurance
company general accounts), PTE 90-1 (a class exemption for certain
transactions involving insurance company pooled separate accounts),
PTE 91-38 (a class exemption for certain transactions involving
bank collective investment funds) or PTE 96-23 (a class exemption
for certain transactions determined by in-house asset managers), is
applicable with respect to such Lender’s entrance into,
participation in, administration of and performance of the Loans,
Commitments and this Agreement,

 

(iii)             (A)
such Lender is an investment fund managed by a “Qualified
Professional Asset Manager” (within the meaning of Part VI of
PTE 84-14), (B) such Qualified Professional Asset Manager made
the investment decision on behalf of such Lender to enter into,
participate in, administer and perform the Loans, Commitments and
this Agreement, (C) the entrance into, participation in,
administration of and performance of the Loans, Commitments and
this Agreement satisfies the requirements of sub-sections (b)
through (g) of Part I of PTE 84- 14 and (D) to the best knowledge
of such Lender, the requirements of subsection (a) of Part I of PTE
84-14 are satisfied with respect to such Lender’s entrance
into, participation in, administration of and performance of the
Loans, Commitments and this Agreement, or

 

(iv)             such
other representation, warranty and covenant as may be agreed in
writing between the Administrative Agent, in its sole discretion,
and such Lender.

 

(b)           In
addition, unless either (1) sub-clause (i) in the immediately
preceding clause (a) is true with respect to a Lender or (2) a
Lender has provided another representation, warranty and covenant
in accordance with sub-clause (iv) in the immediately preceding
clause (a), such Lender further (x) represents and warrants, as of
the date such Person became a Lender party hereto, to, and (y)
covenants, from the date such Person became a Lender party hereto
to the date such Person ceases being a Lender party hereto, for the
benefit of, the Administrative Agent and not, for the avoidance of
doubt, to or for the benefit of the Borrower or any other Credit
Party, that the Administrative Agent is not a fiduciary with
respect to the assets of such Lender involved in such
Lender’s entrance into, participation in, administration of
and performance of the Loans, Commitments and this Agreement
(including in connection with the reservation or exercise of any
rights by the Administrative Agent under this Agreement, any Credit
Document or any documents related hereto or thereto).

 

 

 

111

 

 

SECTION
10.                                MISCELLANEOUS

 

10.1           Notices.
(a) Notices
Generally. Any notice or other communication hereunder given
to any Credit Party, the Administrative Agent, the Collateral Agent
or any Lender shall be given to such Person at its address, fax
number or e-mail address as set forth on Schedule
10.1 or, in the case of any Lender, at such address, fax
number or e-mail address as shall have been provided by such Lender
to the Administrative Agent in writing; provided that, notwithstanding
the foregoing, no notice or other communication hereunder may be
provided to any Credit Party by means of a fax. Except in the case
of notices and other communications expressly permitted to be given
by telephone and as otherwise provided in Section 10.1(b),
each notice or other communication hereunder shall be in writing
and shall be delivered in person or sent by e-mail, courier service
or certified or registered United States mail or, except for
notices or other communications to any Credit Party, facsimile and
shall be deemed to have been given when delivered in person or by
courier service and signed for against receipt thereof, when sent
by facsimile as shown on the transmission report therefor (or, if
not sent during normal business hours for the recipient, at the
opening of business on the next Business Day for the recipient), as
provided in Section 10.1(b) if sent by e-mail or upon receipt if
sent by United States mail; provided that no notice or
other communication given to the Administrative Agent or the
Collateral Agent shall be effective until received by it; and
provided
further that any
such notice or other communication shall, at the request of the
Administrative Agent, be provided to any sub-agent appointed
pursuant to Section 9.3(c) from time to time. Any party hereto
may change its address (including its e-mail address, fax or
telephone number) for notices and other communications hereunder by
notice to each of the Administrative Agent and the
Borrower.

 

(b)           Electronic
Communications.

 

(i)             Notices
and other communications to any Lender hereunder may be delivered
or furnished by electronic communication (including e-mail and
Internet or intranet websites, including the Platform) pursuant to
procedures approved by the Administrative Agent; provided that the foregoing
shall not apply to notices to any Lender pursuant to Section 2
if such Lender has notified the Administrative Agent that it is
incapable of receiving notices under such Section by electronic
communication. Each of the Administrative Agent, the Collateral
Agent and the Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic
communications pursuant to procedures approved by it; provided that approval of such
procedures may be limited to particular notices or communications
or rescinded by such Person by notice to each other such Person;
provided,
further, that
notices and other communications to the Administrative Agent or the
Collateral Agent may be delivered to it at the e-mail address
specified in Section 10.1(a). Unless the Administrative Agent
otherwise prescribes, (A) notices and other communications
sent to an e-mail address, if not sent during the normal business
hours of the recipient, shall be deemed to have been sent at the
opening of business on the next Business Day for the recipient; and
(B) notices or communications posted to an Internet or
intranet website shall be deemed received upon the deemed receipt
by the intended recipient at its e-mail address as described in the
foregoing clause (A) of notification that such notice or
communication is available and identifying the website address
therefor.

 

(ii)             Each
party hereto understands that the distribution of materials through
an electronic medium is not necessarily secure and that there are
confidentiality and other risks associated with such distribution,
and agrees and assumes the risks associated with such electronic
distribution, except to the extent caused by the willful misconduct
or gross negligence of the Administrative Agent, as determined by a
final, non-appealable judgment of a court of competent
jurisdiction.

 

 

 

112

 

 

 

 

(iii)             THE
PLATFORM AND ANY APPROVED ELECTRONIC COMMUNICATIONS ARE PROVIDED
“AS IS” AND “AS AVAILABLE”. NONE OF THE
AGENTS OR ANY OF THEIR RELATED PARTIES WARRANTS AS TO THE ACCURACY,
ADEQUACY OR COMPLETENESS OF THE APPROVED ELECTRONIC COMMUNICATIONS
OR THE PLATFORM, AND EACH OF THE AGENTS AND THEIR RELATED PARTIES
EXPRESSLY DISCLAIMS LIABILITY FOR ERRORS OR OMISSIONS IN THE
PLATFORM AND THE APPROVED ELECTRONIC COMMUNICATIONS. NO WARRANTY OF
ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT
OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE
DEFECTS, IS MADE BY ANY AGENT OR ANY OF ITS RELATED PARTIES IN
CONNECTION WITH THE PLATFORM OR THE APPROVED ELECTRONIC
COMMUNICATIONS.

 

(iv)             Each
Credit Party and each Lender agrees that the Administrative Agent
may, but shall not be obligated to, store any Approved Electronic
Communications on the Platform in accordance with the
Administrative Agent’s customary document retention
procedures and policies.

 

(c)           Private
Side Information Contacts. Each Public Lender agrees to
cause at least one individual at or acting on behalf of such Public
Lender to at all times have selected the “Private Side
Information” or similar designation on the content
declaration screen of the Platform in order to enable such Public
Lender or its delegate, in accordance with such Public
Lender’s compliance procedures and applicable law, including
United States federal and state securities laws, to make reference
to information that is not made available through the “Public
Side Information” portion of the Platform and that may
contain Private-Side Information. In the event that any Public
Lender has determined for itself not to access any information
disclosed through the Platform or otherwise, such Public Lender
acknowledges that (i) other Lenders may have availed themselves of
such information and (ii) none of any Credit Party or any Agent has
any responsibility for such Public Lender’s decision to limit
the scope of the information it has obtained in connection with
this Agreement and the other Credit Documents.

 

 

 

113

 

 

 

 

10.2           Expenses.
The Borrower agrees to pay promptly (a) all reasonable and
documented out-of-pocket costs and expenses (including the
reasonable fees, expenses and other charges of counsel) incurred by
any Agent, the Ad Hoc Group of Term Lenders and any of their
respective Affiliates in connection with the structuring,
documentation, negotiation, arrangement and syndication of the
credit facilities provided for herein and any credit or similar
facility refinancing, extending or replacing, in whole or in part,
the credit facilities provided herein, including the preparation,
execution, delivery and administration of this Agreement, the other
Credit Documents or any amendments, modifications or waivers of the
provisions hereof or thereof (whether or not the transactions
contemplated thereby shall be consummated) or any other document or
matter requested by the Borrower or any other Credit Party, (b) all
reasonable and documented out-of-pocket costs and expenses of
creating, perfecting, recording, maintaining and preserving Liens
in favor of the Collateral Agent for the benefit of the Secured
Parties, including filing and recording fees, expenses and taxes,
stamp or documentary taxes, search fees, title insurance premiums
and reasonable fees, expenses and other charges of counsel to the
Collateral Agent and of counsel providing any opinions that the
Administrative Agent or the Collateral Agent may reasonably request
in respect of the Collateral or the Liens created pursuant to the
Collateral Documents, (c) all reasonable and documented
out-of-pocket costs, fees, expenses and other charges of any
auditors, accountants, consultants or appraisers of any Agent or
the Ad Hoc Group of Term Lenders, (d) all reasonable and documented
out-of-pocket costs and expenses (including the reasonable fees,
expenses and other charges of any appraisers, consultants, advisors
and agents employed or retained by the Collateral Agent and its
counsel) in connection with the custody or preservation of any of
the Collateral or any insurance process and (e) all out-of-pocket
costs and expenses, including reasonable fees, expenses and other
charges of counsel and costs of settlement, incurred by any Agent,
any Lender, the Ad Hoc Group of Term Lenders and any Term Loan
Lender Advisor in enforcing any Obligations of or in collecting any
payments due from any Credit Party hereunder or under the other
Credit Documents by reason of such Default or Event of Default
(including in connection with the sale, lease or license of,
collection from, or other realization upon any of the Collateral or
the enforcement of any Obligations Guarantee) or in connection with
any refinancing or restructuring of the credit arrangements
provided hereunder in the nature of a “work out” or
pursuant to any insolvency or bankruptcy cases or proceedings;
provided that, in the case of clauses (a), (b), (c) and (d) above,
costs and expenses with respect to counsel shall be limited to (i)
one primary counsel for the Agents and their Related Parties (taken
as a whole), (ii) one primary counsel for the Lenders and their
Related Parties (taken as a whole), (iii) in the event of any
proceeding or hearing under any Debtor Relief Laws in any
jurisdiction other than New York, (x) one firm of local counsel for
the Agents and their Related Parties (taken as a whole) and (y) one
firm of local counsel for the Lenders and their Related Parties
(taken as a whole), (iv) one firm of regulatory counsel and (v) if
reasonably necessary, one firm of local counsel in each applicable
jurisdiction (other than as described in the preceding clause
(iii)), in the case of clauses (iv) and (v) above, for all Persons
entitled to reimbursement under this Section 10.2 (and, if any such
Person shall have advised the Borrower that there is an actual or
perceived conflict of interest, one additional firm of primary
counsel, one additional firm of regulatory counsel, and, if
reasonably necessary, one additional firm of local counsel in each
applicable jurisdiction for each group of affected Persons that are
similarly situated (in each case, excluding allocated costs of
in-house counsel)). All amounts due under this Section 10.2 shall
be payable promptly after written demand therefor.

 

10.3           Indemnity.
(a) In addition to the payment of expenses pursuant to Section
10.2, each Credit Party agrees to defend (subject to the applicable
Indemnitee’s selection of counsel), indemnify, pay and hold
harmless each Agent (and each sub-agent thereof) and Lender and
each of their respective Related Parties (each, an
“Indemnitee”),
from and against any and all Indemnified Liabilities. THE FOREGOING INDEMNIFICATION SHALL APPLY
WHETHER OR NOT SUCH INDEMNIFIED LIABILITIES ARE IN ANY WAY OR TO
ANY EXTENT OWED, IN WHOLE OR IN PART, UNDER ANY CLAIM OR THEORY OF
STRICT LIABILITY, OR ARE CAUSED, IN WHOLE OR IN PART, BY OR OUT OF
ANY NEGLIGENT ACT OR OMISSION OF ANY KIND BY ANY INDEMNITEE;
provided that no
Credit Party shall have any obligation to any Indemnitee hereunder
with respect to any Indemnified Liabilities to the extent such
Indemnified Liabilities have been found by a final, non-appealable
judgment of a court of competent jurisdiction to have resulted from
(i) the gross negligence or willful misconduct of such Indemnitee
or its Related Parties, (ii) other than in the case of any Agent or
any of its Related Parties, a material breach in bad faith by such
Indemnitee or its Related Parties of its express obligations under
this Agreement or (iii) any action, investigation, claim,
litigation or proceeding not involving an act or omission by any
Credit Party or the equityholders or Affiliates of any Credit Party
(or the Related Parties of any Credit Party) that is brought by an
Indemnitee against another Indemnitee (other than against any Agent
(or any holder of any other title or role) in its capacity as
such). This Section 10.3(a) shall not apply with respect to Taxes
other than any Taxes that represent Indemnified Liabilities arising
from any non-Tax claim.

 

 

 

114

 

 

 

 

(b)           To
the extent permitted by applicable law, no Credit Party shall
assert, and each Credit Party hereby waives, any claim against any
Agent or any Lender or any Related Party of any of the foregoing on
any theory of liability, for indirect, consequential, special or
punitive damages (as opposed to direct or actual damages) (whether
or not the claim therefor is based on contract, tort or any duty
imposed by any applicable legal requirement) arising out of, in
connection with, as a result of, or in any way related to this
Agreement or any other Credit Document or any agreement or
instrument contemplated hereby or thereby or referred to herein or
therein, the transactions contemplated hereby or thereby, the
syndication of the credit facilities provided for herein, any Loan
or the use of the proceeds thereof or any act or omission or event
occurring in connection therewith, and each Credit Party hereby
waives, releases and agrees not to sue upon any such claim for
indirect, consequential, special or punitive damages, whether or
not accrued and whether or not known or suspected to exist in its
favor.

 

(c)           Each
Credit Party agrees that no Agent or Lender or any Related Party of
any of the foregoing will have any liability to any Credit Party or
any Person asserting claims on behalf of or in right of any Credit
Party or any other Person in connection with or as a result of this
Agreement or any other Credit Document or any agreement or
instrument contemplated hereby or thereby or referred to herein or
therein, the transactions contemplated hereby or thereby, any Loan
or the use of the proceeds thereof or any act or omission or event
occurring in connection therewith except (but subject to Section
10.3(b)), in the case of any Credit Party, to the extent that any
losses, claims, damages, liabilities or expenses have been found by
a final, non-appealable judgment of a court of competent
jurisdiction to have resulted from (i) the gross negligence or
willful misconduct of such Agent or Lender or its Related Parties
in performing its obligations under this Agreement or any other
Credit Document or (ii) other than in the case of any Agent or its
Related Parties, a material breach in bad faith by such Lender or
its Related Parties of its express obligations under this
Agreement.

 

10.4           Set-Off.
In addition to any rights now or hereafter granted under applicable
law and not by way of limitation of any such rights, upon the
occurrence and during the continuance of any Event of Default each
Lender is hereby authorized by each Credit Party at any time or
from time to time, without notice to any Credit Party, any such
notice being hereby expressly waived, to set-off and to appropriate
and to apply any and all deposits (general or special, including
Indebtedness evidenced by certificates of deposit, whether matured
or unmatured, but not including trust accounts) and any other
Indebtedness at any time held or owing by such Lender to or for the
credit or the account of any Credit Party against and on account of
the obligations and liabilities of any Credit Party to such Lender
hereunder and under the other Credit Documents, including all
claims of any nature or description arising out of or connected
hereto or thereto, irrespective of whether or not (a) such Lender
shall have made any demand hereunder or (b) the principal of or the
interest on the Loans or any other amounts due hereunder shall have
become due and payable and although such obligations and
liabilities, or any of them, may be contingent or unmatured. Each
Lender agrees to notify the Administrative Agent promptly after any
such set-off and application; provided that the failure to
give such notice shall not affect the validity of such set-off and
application.

 

10.5           Amendments
and Waivers. (a) Requisite Lenders’
Consent. None of this Agreement, any other Credit Document
or any provision hereof or thereof may be waived, amended or
modified, and no consent to any departure by any Credit Party
therefrom may be made, except, subject to the additional
requirements of Sections 10.5(b) and 10.5(c) and as otherwise
provided in Sections 10.5(d) and 10.5(e), in the case of this
Agreement, pursuant to an agreement or agreements in writing
entered into by the Borrower and the Requisite Lenders, and
acknowledged by the Administrative Agent, and, in the case of any
other Credit Document, pursuant to an agreement or agreements in
writing entered into by the Administrative Agent or the Collateral
Agent, as applicable, and the Credit Party or Credit Parties that
are parties thereto, in each case with the consent of the Requisite
Lenders; provided, that any amendment or modification to the
Administrative Agent Fee Letter, or waiver of any rights or
privileges thereunder, shall only require the consent of the
Borrower and the Agents.

 

 

 

115

 

 

 

 

(b)           Affected
Lenders’ Consent. In addition to any consent required
pursuant to Section 10.5(a), without the written consent of
each Lender that would be directly affected thereby, no waiver,
amendment or other modification of this Agreement or any other
Credit Document, or any consent to any departure by any Credit
Party therefrom, shall be effective if the effect thereof would be
to:

 

(i)             increase
any Commitment or postpone the scheduled expiration date of any
Commitment (it being understood that no waiver, amendment or other
modification of any condition precedent, covenant, Default or Event
of Default shall constitute an increase in any Commitment of any
Lender);

 

(ii)             extend
the Stated Maturity Date of any Loan (it being understood that, (x)
the Requisite Lender may extend the Stated Maturity Date no more
than three times by one calendar month from the then applicable
Stated Maturity Date, and (y) for the avoidance of doubt, an
extension of the due date of any mandatory prepayment of a Loan or
any extension of the Termination Date resulting from an amendment
of any of clauses (b) through (e) of the definition of
“Termination Date” shall not be subject to this Section
10.5(b)(ii));

 

(iii)             [Reserved];

 

(iv)             [Reserved];

 

(v)             reduce
the rate of interest on any Loan (other than any waiver of any
increase in the interest rate applicable to any Loan pursuant to
Section 2.9) or any fee or any premium payable hereunder, or waive
or postpone the time for payment of any such interest, fee or
premium;

 

(vi)             reduce
the principal amount of any Loan;

 

(vii)             waive,
amend or otherwise modify any provision of this Section 10.5(b),
Section 10.5(c) or any other provision of this Agreement or any
other Credit Document that expressly provides that the consent of
all Lenders is required to waive, amend or otherwise modify any
rights thereunder or to make any determination or grant any consent
thereunder (including such provision set forth in Section
10.6(a));

 

(viii)             amend
the percentage specified in the definition of the term
“Requisite Lenders” or amend the term “Pro Rata
Share”, waive, amend or otherwise modify Section 2.16 hereof
or Section 5.02 of the Pledge and Security Agreement (and any
comparable provision of any other Collateral Document) in a manner
that would alter the pro rata sharing of payments required thereby
or waive, amend or otherwise modify Section 2.14 of this
Agreement;

 

 

 

116

 

 

 

 

(ix)             release
all or substantially all the Collateral from the Liens of the
Collateral Documents, or all or substantially all the Guarantor
Subsidiaries from the Guarantees created under the Credit Documents
(or limit liability of all or substantially all the Guarantor
Subsidiaries in respect of any such Guarantee), in each case except
as expressly provided in the Credit Documents and except in
connection with a “credit bid” undertaken by the
Collateral Agent at the direction of the Requisite Lenders pursuant
to section 363(k), section 1129(b)(2)(a)(ii) or any other
section of the Bankruptcy Code or any other sale or other
disposition of assets in connection with other Debtor Relief Laws
or an enforcement action with respect to the Collateral permitted
pursuant to the Credit Documents (in which case only the consent of
the Requisite Lenders will be required for such release) (it being
understood that (A) an amendment or other modification of the
type of obligations secured by the Collateral Documents or
Guaranteed hereunder or thereunder shall not be deemed to be a
release of the Collateral from the Liens of the Collateral
Documents or a release or limitation of any such Guarantee and
(B) an amendment or other modification of Section 6.8 shall
only require the consent of the Requisite Lenders); or

 

(x)             except
as provided by operation of law and otherwise permitted hereunder,
amend or modify the Superpriority Claims status of the Obligations
under the Orders or under any Credit Document,

 

provided that, for the
avoidance of doubt, all Lenders shall be deemed directly affected
by any waiver, amendment or other modification, or any consent,
described in the preceding clauses (vii), (viii), (ix) and
(x).

 

(c)           Other
Consents. No waiver, amendment or other modification of this
Agreement or any other Credit Document, or any consent to any
departure by any Credit Party therefrom, shall:

 

(i)             [reserved];
or

 

(ii)             waive,
amend or otherwise modify the rights, duties, privileges,
protections, indemnities, immunities or obligations of, or any fees
or other amounts payable to, any Agent without the prior written
consent of such Agent.

 

(d)           [reserved];

 

(e)           Certain
Permitted Amendments. Notwithstanding anything herein or in
any other Credit Document to the contrary:

 

(i)             any
provision of this Agreement or any other Credit Document may be
amended by an agreement in writing entered into by the Borrower and
the Administrative Agent to cure any obvious error or any
ambiguity, omission, defect or inconsistency of a technical nature,
so long as the Lenders shall have received at least five Business
Days’ prior written notice thereof and the Administrative
Agent shall not have received, within five Business Days of the
date of such notice to the Lenders, a written notice from the
Requisite Lenders stating that the Requisite Lenders object to such
amendment;

 

(ii)             [reserved];

 

(iii)             [reserved];

 

 

 

117

 

 

 

 

(iv)             the
Administrative Agent and the Collateral Agent may, without the
consent of any other Secured Party, (A) consent to a departure by
any Credit Party from any covenant of such Credit Party set forth
in this Agreement or any other Credit Document to the extent such
departure is consistent with the authority of the Collateral Agent
set forth in the definition of the term “Collateral and
Guarantee Requirement” or (B) waive, amend or modify any
provision in any Credit Document (other than this Agreement), or
consent to a departure by any Credit Party therefrom, to the extent
the Administrative Agent or the Collateral Agent determines that
such waiver, amendment, modification or consent is necessary in
order to eliminate any conflict between such provision and the
terms of this Agreement; and

 

(v)             any
provision of this Agreement or any other Credit Document may be
amended by an agreement in writing entered into by the Borrower,
the Administrative Agent and the Lenders that will remain parties
hereto after giving effect to such amendment if (A) by the terms of
such agreement the Commitments of each Lender not consenting to the
amendment provided for therein shall be reduced to zero upon the
effectiveness of such amendment and (B) at the time such amendment
becomes effective, each Lender not consenting thereto receives
payment in full of the principal of and interest accrued on each
Loan made by it and all other amounts owing to it or accrued for
its account under this Agreement.

 

Each
Lender hereby expressly authorizes the Administrative Agent and/or
the Collateral Agent to enter into any waiver, amendment or other
modification of this Agreement and the other Credit Documents
contemplated by this Section 10.5(e).

 

(f)           Requisite
Execution of Amendments, Etc. With the concurrence of any
Lender, the Administrative Agent may, but shall have no obligation
to, execute waivers, amendments, modifications or consents on
behalf of such Lender. Any waiver or consent shall be effective
only in the specific instance and for the specific purpose for
which it is given. No notice to or demand on any Credit Party in
any case shall entitle any Credit Party to any other or further
notice or demand in similar or other circumstances. Any amendment,
modification, waiver or consent effected in accordance with this
Section 10.5 shall be binding upon each Person that is at the
time thereof a Lender and each Person that subsequently becomes a
Lender.

 

10.6           Successors
and Assigns; Participations. (a) Generally. This Agreement shall
be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns permitted hereby. No Credit
Party’s rights or obligations under the Credit Documents, and
no interest therein, may be assigned or delegated by any Credit
Party (except, in the case of any Guarantor Subsidiary, any
assignment or delegation by operation of law as a result of any
merger or consolidation of such Guarantor Subsidiary permitted by
Section 6.8) without the prior written consent of the
Administrative Agent and each Lender, and any attempted assignment
or delegation without such consent shall be null and void. Nothing
in this Agreement, expressed or implied, shall be construed to
confer upon any Person (other than the parties hereto, their
respective successors and assigns permitted hereby, the
participants referred to in Section 10.6(g) (to the extent provided
in clause (iii) of such Section) and, to the extent expressly
contemplated hereby, Affiliates of any Agent or any Lender, the
other Indemnitees and other express third party beneficiaries
hereof) any legal or equitable right, remedy or claim under or by
reason of this Agreement.

 

 

 

118

 

 

 

 

(b)           Register.
The Borrower, the Administrative Agent, the Collateral Agent and
the Lenders shall deem and treat the Persons recorded as Lenders in
the Register as Lenders hereunder for all purposes of this
Agreement and the holders and owners of the corresponding
Commitments and Loans recorded therein for all purposes hereof. No
assignment or transfer of any Commitment or Loan shall be effective
unless and until recorded in the Register, and following such
recording, unless otherwise determined by the Administrative Agent
(such determination to be made in the sole discretion of the
Administrative Agent, which determination may be conditioned on the
consent of the assigning Lender and the assignee), shall be
effective notwithstanding any defect in the Assignment Agreement
relating thereto. Each assignment and transfer shall be recorded in
the Register following receipt by the Administrative Agent of the
fully executed Assignment Agreement, together with the required
forms and certificates regarding tax matters and any registration
and processing fee payable in connection therewith, in each case as
provided in Section 10.6(d); provided that the
Administrative Agent shall not be required to accept such
Assignment Agreement or so record the information contained therein
if the Administrative Agent reasonably believes that such
Assignment Agreement lacks any written consent required by this
Section 10.6 or is otherwise not in proper form, it being
acknowledged that the Administrative Agent shall have no duty or
obligation (and shall incur no liability) with respect to obtaining
(or confirming the receipt) of any such written consent or with
respect to the form of (or any defect in) such Assignment
Agreement, any such duty and obligation being solely with the
assigning Lender and the assignee. Each assigning Lender and the
assignee, by its execution and delivery of an Assignment Agreement,
shall be deemed to have represented to the Administrative Agent
that all written consents required by this Section 10.6 with
respect thereto (other than the consent of the Administrative Agent
and the Borrower, if applicable) have been obtained and that such
Assignment Agreement is otherwise duly completed and in proper
form. The date of such recordation of an assignment and transfer is
referred to herein as the “Assignment Effective Date” with
respect thereto. Any request, authority or consent of any Person
that, at the time of making such request or giving such authority
or consent, is recorded in the Register as a Lender shall be
conclusive and binding on any subsequent holder, assignee or
transferee of the corresponding Commitments or Loans.

 

(c)           Right
to Assign. Each Lender shall have the right at any time to
sell, assign or transfer all or a portion of its rights and
obligations under this Agreement, including all or a portion of its
Commitment or Loans or other Obligations owing to it
to:

 

(i)             any
Eligible Assignee of the type referred to in clause (a) of the
definition of the term “Eligible Assignee” upon the
giving of notice to the Borrower and the Administrative Agent;
or

 

(ii)             any
Eligible Assignee of the type referred to in clause (b) of the
definition of the term “Eligible Assignee”, upon (A)
the giving of notice to the Borrower and the Administrative Agent
and (B) except in the case of assignments made during the
primary syndication of any credit facilities established hereunder,
receipt of prior written consent (each such consent not to be
unreasonably withheld or delayed) of the Administrative
Agent;

 

provided that:

 

 

 

119

 

 

 

 

(A)            in
the case of any such assignment or transfer (other than to any
Eligible Assignee meeting the requirements of clause (i) above),
the amount of the Commitment or Loans of the assigning Lender
subject thereto shall not be less than $1,000,000 (with concurrent
assignments to Eligible Assignees that are Affiliates or Related
Funds thereof to be aggregated for purposes of the foregoing
minimum assignment amount requirements) or, in each case, such
lesser amount as shall be agreed to by the Borrower and the
Administrative Agent or as shall constitute the aggregate amount of
the Commitments or Loans of the assigning Lender, provided that the consent of
the Borrower to any lesser amount (x) shall not be required if an
Event of Default shall have occurred and is continuing pursuant to
Section 8.1(a), 8.1(f) or 8.1(g) and (y) shall be deemed to have
been granted if notice shall be given to the Borrower requesting
its consent to a lesser amount and the Borrower shall not have
objected thereto by written notice to the Administrative Agent
within 10 Business Days after having received such request;
and

 

(B)            each
partial assignment or transfer shall be of a uniform, and not
varying, percentage of all rights and obligations of the assigning
Lender hereunder.

 

(d)           Mechanics.
Assignments and transfers of Loans and Commitments by Lenders shall
be effected by the execution and delivery to the Administrative
Agent of an Assignment Agreement. In connection with all
assignments, there shall be delivered to the Administrative Agent
(i) to the extent the assignee is not already a Lender, an
Administrative Questionnaire, (ii) such forms, certificates or
other evidence, if any, with respect to United States federal
income tax withholding matters as the assignee thereunder may be
required to deliver pursuant to Section 2.19(g) and (iii) payment
to the Administrative Agent by the assignor or the assignee of a
registration and processing fee of $3,500 (except that no such
registration and processing fee shall be payable (i) in connection
with an assignment during the primary syndication of any credit
facilities established hereunder or (ii) otherwise waived by the
Administrative Agent in its sole discretion).

 

(e)           Representations
and Warranties of Assignee. Each Lender, upon execution and
delivery hereof or upon succeeding to an interest in the
Commitments and Loans, as the case may be, represents and warrants
as of the Closing Date or as of the applicable Assignment Effective
Date, as applicable, that (i) it is an Eligible Assignee, (ii) it
has experience and expertise in the making of or investing in
commitments or loans such as the applicable Commitments or Loans,
as the case may be, (iii) it will make or invest in, as the
case may be, its Commitments or Loans for its own account in the
ordinary course and without a view to distribution of such
Commitments or Loans within the meaning of the Securities Act or
the Exchange Act or other United States federal securities laws (it
being understood that, subject to the provisions of this Section
10.6, the disposition of such Commitments or Loans or any interests
therein shall at all times remain within its exclusive control) and
(iv) it will not provide any information obtained by it in its
capacity as a Lender to the Borrower, any Permitted Holder or any
Affiliate of the Borrower.

 

 

 

120

 

 

 

 

(f)           Effect
of Assignment. Subject to the terms and conditions of this
Section 10.6, as of the Assignment Effective Date with respect
to any assignment and transfer of any Commitment or Loan, (i) the
assignee thereunder shall have the rights and obligations of a
“Lender” hereunder to the extent of its interest in
such Commitment or Loan as reflected in the Register and shall
thereafter be a party hereto and a “Lender” for all
purposes hereof, (ii) the assigning Lender thereunder shall, to the
extent that rights and obligations hereunder have been assigned and
transferred to the assignee, relinquish its rights (other than any
rights that survive the termination hereof under Section 10.8) and
be released from its obligations hereunder (and, in the case of an
assignment covering all the remaining rights and obligations of an
assigning Lender hereunder, such Lender shall cease to be a party
hereto as a “Lender” on such Assignment Effective Date,
provided that such
assigning Lender shall continue to be entitled to the benefit of
all rights that survive the termination hereof under Section 10.8),
and provided
further that except
to the extent otherwise expressly agreed by the affected parties,
no assignment by a Defaulting Lender will constitute a waiver or
release of any claim of any party hereunder arising from such
Lender’s having been a Defaulting Lender, and (iii) the
assigning Lender shall, upon the effectiveness thereof or as
promptly thereafter as practicable, surrender its applicable Notes
(if any) to the Administrative Agent for cancellation, and
thereupon the Borrower shall issue and deliver new Notes, if so
requested by the assignee and/or assigning Lender, to such assignee
and/or to such assigning Lender, with appropriate insertions, to
reflect the new Commitments and/or outstanding Loans of the
assignee and/or the assigning Lender.

 

(g)           Participations.

 

(i)             Each
Lender shall have the right at any time to sell one or more
participations to any Eligible Assignee in all or any part of its
Commitments or Loans or in any other Obligation; provided that (A) such
Lender’s obligations under this Agreement shall remain
unchanged, (B) such Lender shall remain solely responsible to
the other parties hereto for the performance of such obligations
and (C) the Credit Parties, the Administrative Agent, the
Collateral Agent and the Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender’s
rights and obligations under this Agreement. Each Lender that sells
a participation pursuant to this Section 10.6(g) shall, acting
solely for United States federal income tax purposes as a
non-fiduciary agent of the Borrower, maintain a register on which
it records the name and address of each participant to which it has
sold a participation and the principal amounts (and stated
interest) of each such participant’s interest in the
Commitments or Loans or other rights and obligations of such Lender
under this Agreement or any other Credit Document (the
“Participant
Register”); provided that no Lender shall
have any obligation to disclose all or any portion of the
Participant Register to any Person (including the identity of any
participant or any information relating to a participant’s
interest in any Commitments, Loans or other rights and obligations
under any Credit Document), except to the extent that such
disclosure is necessary to establish that such Commitment, Loan or
other right or obligation is in registered form under Section
5f.103-1(c) of the United States Treasury Regulations. Unless
otherwise required by the IRS, any disclosure required by the
foregoing sentence shall be made by the relevant Lender directly
and solely to the IRS. The entries in the Participant Register
shall be conclusive absent manifest error, and such Lender shall
treat each Person whose name is recorded in the Participant
Register as the owner of such participation for all purposes under
this Agreement, notwithstanding any notice to the contrary. For the
avoidance of doubt, the Administrative Agent (in its capacity as
Administrative Agent) shall have no responsibility for maintaining
a Participant Register.

 

(ii)             The
holder of any such participation, other than an Affiliate of the
Lender granting such participation, shall not be entitled to
require such Lender to take or omit to take any action hereunder,
except that any participation agreement may provide that the
participant’s consent must be obtained with respect to the
consent of such Lender to any waiver, amendment, modification or
consent that is described in Section 10.5(b) that affects such
participant or requires the approval of all the
Lenders.

 

 

 

121

 

 

 

 

(iii)             The
Credit Parties agree that each participant shall be entitled to the
benefits of Sections 2.17(c), 2.18 and 2.19 (subject to the
requirements and limitations therein, including the requirements
under Section 2.19(g) (it being understood that the documentation
required under Section 2.19(g) shall be delivered to the
participating Lender)) to the same extent as if it were a Lender
and had acquired its interest by assignment pursuant to Section
10.6(c); provided
that such participant (x) agrees to be subject to the provisions of
Sections 2.20 and 2.22 as if it were an assignee under Section
10.6(c) and (y) such participant shall not be entitled to receive
any greater payment under Section 2.18 or 2.19 with respect to any
participation than the applicable Lender would have been entitled
to receive with respect to such participation sold to such
participant, except to the extent such entitlement to receive a
greater payment results from a Change in Law that occurs after the
participant acquired the applicable participation. To the extent
permitted by law, each participant also shall be entitled to the
benefits of Section 10.4 as though it were a Lender, provided that such participant
agrees to be subject to Section 2.16 as though it were a
Lender.

 

(h)           Certain
Other Assignments and Participations. In addition to any
other assignment or participation permitted pursuant to this
Section 10.6, any Lender may assign, pledge and/or grant a security
interest in all or any portion of its Loans or the other
Obligations owed to such Lender, and its Notes, if any, to secure
obligations of such Lender, including to any Federal Reserve Bank
as collateral security pursuant to Regulation A of the Board
of Governors and any operating circular issued by any Federal
Reserve Bank or to any other central bank; provided that no Lender, as
between the Borrower and such Lender, shall be relieved of any of
its obligations hereunder as a result of any such assignment and
pledge; and provided further that in no event shall
the applicable Federal Reserve Bank, other central bank, pledgee or
trustee be considered to be a “Lender”
hereunder.

 

10.7           Independence
of Covenants. All covenants
hereunder shall be given independent effect so that if a particular
action or condition is not permitted by any of such covenants, the
fact that it would be permitted by an exception to, or would
otherwise be within the limitations of, another covenant shall not
avoid the occurrence of a Default or an Event of Default if such
action is taken or condition exists.

 

10.8           Survival
of Representations, Warranties and
Agreements. All covenants,
agreements, representations and warranties made by the Credit
Parties in the Credit Documents and in the certificates or other
documents delivered in connection with or pursuant to this
Agreement or any other Credit Document shall be considered to have
been relied upon by the other parties hereto and shall survive the
execution and delivery of the Credit Documents and the making of
any Loans, regardless of any investigation made by any such other
party or on its behalf and notwithstanding that any Agent or Lender
may have had notice or knowledge of any Default or Event of Default
or incorrect representation or warranty at the time any Credit
Document is executed and delivered or any credit is extended
hereunder, and shall continue in full force and effect as long as
the principal of or any accrued interest on any Loan or any fee or
any other amount payable under this Agreement is outstanding and
unpaid and so long as the Commitments have not expired or
terminated. The provisions of Sections 2.17(c), 2.18, 2.19, 9,
10.2, 10.3 and 10.4 shall survive and remain in full force and
effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Loans or the termination
of this Agreement or any provision hereof.

 

 

 

122

 

 

 

 

10.9           No
Waiver; Remedies Cumulative. No failure or
delay on the part of any Agent or Lender in the exercise of any
power, right or privilege hereunder or under any other Credit
Document shall impair such power, right or privilege or be
construed to be a waiver thereof or of any Default or Event of
Default or acquiescence therein, nor shall any single or partial
exercise of any such power, right or privilege, or any abandonment
or discontinuance of steps to enforce such power, right or
privilege, preclude any other or further exercise thereof or the
exercise of any other power, right or privilege. The powers,
rights, privileges and remedies of the Agents and the Lenders
hereunder and under the other Credit Documents are cumulative and
shall be in addition to and independent of all powers, rights,
privileges and remedies they would otherwise have. Without limiting
the generality of the foregoing, the execution and delivery of this
Agreement or the making of any Loan hereunder shall not be
construed as a waiver of any Default or Event of Default,
regardless of whether any Agent or Lender may have had notice or
knowledge of such Default or Event of Default at the
time.

 

10.10                      Marshalling;
Payments Set Aside. None of the
Agents or the Lenders shall be under any obligation to marshal any
assets in favor of any Credit Party or any other Person or against
or in payment of any or all of the Obligations. To the extent that
any Credit Party makes a payment or payments to any Agent or Lender
(or to the Administrative Agent or the Collateral Agent, on behalf
of any Agent or Lender), or any Agent or Lender enforces any
security interests or exercises any right of set-off, and such
payment or payments or the proceeds of such enforcement or set-off
or any part thereof are subsequently invalidated, declared to be
fraudulent, preferential or at undervalue, set aside and/or
required to be repaid to a trustee, receiver or any other party
under any Debtor Relief Laws, any other state or federal law,
common law or any equitable cause, then, to the extent of such
recovery, the obligation or part thereof originally intended to be
satisfied, and all Liens, rights and remedies therefor or related
thereto, shall be revived and continued in full force and effect as
if such payment or payments had not been made or such enforcement
or set-off had not occurred.

 

10.11                      Severability.
In case any provision in or obligation hereunder or under any other
Credit Document shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the
remaining provisions or obligations, or of such provision or
obligation in any other jurisdiction, shall not in any way be
affected or impaired thereby.

 

10.12                      Independent
Nature of Lenders’ Rights. Nothing contained
herein or in any other Credit Document, and no action taken by the
Lenders pursuant hereto or thereto, shall be deemed to constitute
the Lenders as a partnership, an association, a joint venture or
any other kind of entity. The amounts payable at any time hereunder
to each Lender shall be a separate and independent debt, and each
Lender shall be entitled to protect and enforce its rights arising
hereunder and it shall not be necessary for any other Lender to be
joined as an additional party in any proceeding for such
purpose.

 

10.13                      Headings.
Section headings herein are included herein for convenience of
reference only and shall not constitute a part hereof for any other
purpose or be given any substantive effect.

 

10.14                      APPLICABLE
LAW.
THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER (INCLUDING ANY CLAIMS SOUNDING IN CONTRACT LAW OR TORT
LAW ARISING OUT OF THE SUBJECT MATTER HEREOF AND ANY DETERMINATIONS
WITH RESPECT TO POST-JUDGMENT INTEREST) SHALL BE GOVERNED BY, AND
SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK AND TO THE EXTENT APPLICABLE, THE BANKRUPTCY
CODE.

 

 

 

123

 

 

 

 

10.15                      CONSENT
TO JURISDICTION.
SUBJECT TO CLAUSE (E) BELOW, ALL JUDICIAL PROCEEDINGS BROUGHT
AGAINST ANY PARTY HERETO ARISING OUT OF OR RELATING HERETO OR ANY
OTHER CREDIT DOCUMENT, OR ANY OF THE OBLIGATIONS, SHALL BE BROUGHT
EXCLUSIVELY IN THE BANKRUPTCY COURT AND, IF THE BANKRUPTCY COURT
DOES NOT HAVE, OR ABSTAINS FROM JURISDICTION, IN ANY FEDERAL COURT
OF THE UNITED STATES OF AMERICA SITTING IN THE BOROUGH OF MANHATTAN
OR, IF THAT COURT DOES NOT HAVE SUBJECT MATTER JURISDICTION, IN ANY
STATE COURT LOCATED IN THE CITY AND COUNTY OF NEW YORK. BY
EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY HERETO, FOR
ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (A)
ACCEPTS GENERALLY AND UNCONDITIONALLY THE EXCLUSIVE JURISDICTION
AND VENUE OF SUCH COURTS (SUBJECT TO CLAUSE (E) BELOW); (B) WAIVES
ANY DEFENSE OF FORUM NON CONVENIENS; (C) AGREES THAT SERVICE OF ALL
PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY
REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE
APPLICABLE PARTY AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION
10.1; (D) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (C) ABOVE IS
SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE
CREDIT PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND
OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY
RESPECT; AND (E) AGREES THAT THE AGENTS AND THE LENDERS RETAIN THE
RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO
BRING PROCEEDINGS AGAINST ANY CREDIT PARTY IN THE COURTS OF ANY
OTHER JURISDICTION IN CONNECTION WITH THE EXERCISE OF ANY RIGHTS
UNDER ANY CREDIT DOCUMENT OR ANY EXERCISE OF REMEDIES IN RESPECT OF
COLLATERAL OR THE ENFORCEMENT OF ANY JUDGMENT, AND HEREBY SUBMITS
TO THE JURISDICTION OF, AND CONSENTS TO VENUE IN, ANY SUCH
COURT.

 

10.16                      WAIVER
OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY AGREES TO
WAIVE ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING HEREUNDER OR UNDER ANY OF THE OTHER CREDIT
DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT
MATTER OF THIS LOAN TRANSACTION OR THE LENDER/BORROWER RELATIONSHIP
THAT IS BEING ESTABLISHED. THE SCOPE OF THIS WAIVER IS INTENDED TO
BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN
ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS
TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY
HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO
ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON
THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL
CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS.
EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS
REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY
AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY
NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL
WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 10.16 AND
EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL
APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS HERETO OR ANY OF THE OTHER CREDIT DOCUMENTS OR TO ANY
OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS MADE HEREUNDER.
IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A
WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

 

 

124

 

 

 

 

10.17                      Confidentiality.
Each Agent and each Lender shall hold all Confidential Information
(as defined below) obtained by such Agent or such Lender in
accordance with such Agent’s and such Lender’s
customary procedures for handling confidential information of such
nature, it being understood and agreed by the Borrower that, in any
event, the Administrative Agent and the Collateral Agent may
disclose Confidential Information to the Lenders and the other
Agents and that each Agent and each Lender may disclose
Confidential Information (a) to Affiliates of such Agent or Lender
and to its and their respective Related Parties, independent
auditors and other advisors, experts or agents who need to know
such Confidential Information (and to other Persons authorized by a
Lender or Agent to organize, present or disseminate such
information in connection with disclosures otherwise made in
accordance with this Section 10.17) (it being understood that the
Persons to whom such disclosure is made will be informed of the
confidential nature of such Confidential Information and instructed
to keep such Confidential Information confidential or shall
otherwise be subject to an obligation of confidentiality), (b) to
any potential or prospective assignee, transferee or participant in
connection with the contemplated assignment, transfer or
participation of any Loans or other Obligations or any
participations therein or to any direct or indirect contractual
counterparties (or the professional advisors thereto) to any swap
or derivative transaction relating to the Borrower or any of its
Affiliates and their obligations (provided that such assignees,
transferees, participants, counterparties and advisors are advised
of and agree to be bound by either the provisions of this Section
10.17 or other provisions at least as restrictive as this Section
10.17 or otherwise reasonably acceptable to the Administrative
Agent, the Collateral Agent or the applicable Lender, as the case
may be, and the Borrower, including pursuant to the confidentiality
terms set forth in the Confidential Information Memorandum or other
marketing materials relating to the credit facilities governed by
this Agreement; and provided further that without the
Borrower’s prior written consent, no such disclosure may be
made to any Disqualified Institution), (c) on a confidential basis,
to any rating agency, (d) on a confidential basis, to the CUSIP
Service Bureau or any similar agency in connection with the
issuance and monitoring of CUSIP numbers with respect to the Loans,
(e) for purposes of establishing a “due diligence”
defense or in connection with the exercise of any remedies
hereunder or under any other Credit Document, (f) as required by
law or pursuant to legal or judicial process (in which case, unless
specifically prohibited by applicable law or court order, such
Agent or such Lender shall make reasonable efforts to notify the
Borrower promptly thereof), (g) as required or requested by any
Governmental Authority or by any regulatory or quasi-regulatory
authority (including any self-regulatory organization) having
jurisdiction or claiming to have jurisdiction over such Agent or
such Lender or any of their respective Affiliates, (h) received by
it on a non-confidential basis from a source (other than the
Borrower or its Affiliates or Related Parties) not known by it to
be prohibited from disclosing such information to such persons by a
legal, contractual or fiduciary obligation, (i) to the extent that
such information was already in possession of such Agent or such
Lender, as the case may be, or any of its Affiliates or is
independently developed by it or any of its Affiliates and (j) with
the consent of the Borrower and (k) to any other party to this
Agreement. For purposes of the foregoing, “Confidential Information” means,
with respect to any Agent or any Lender, any non-public information
regarding the business, assets, liabilities and operations of the
Borrower and the Subsidiaries obtained by such Agent or Lender
under the terms of this Agreement and identified as confidential by
the Borrower. In addition, each Agent and each Lender may disclose
the existence of this Agreement and the information about this
Agreement to market data collectors, similar services providers to
the lending industry, and service providers to the Agents and the
Lenders in connection with the administration and management of
this Agreement and the other Credit Documents. It is agreed that,
notwithstanding the restrictions of any prior confidentiality
agreement binding on any Agent, such parties may disclose
Confidential Information as provided in this
Section 10.17.

 

 

 

125

 

 

 

 

10.18                      Usury
Savings Clause. Notwithstanding
any other provision herein, the aggregate interest rate charged
with respect to any of the Obligations, including all charges or
fees in connection therewith deemed in the nature of interest under
applicable law shall not exceed the Highest Lawful Rate. If the
rate of interest (determined without regard to the preceding
sentence) under this Agreement at any time exceeds the Highest
Lawful Rate, the outstanding amount of the Loans made hereunder
shall bear interest at the Highest Lawful Rate until the total
amount of interest due hereunder equals the amount of interest that
would have been due hereunder if the stated rates of interest set
forth in this Agreement had at all times been in effect. In
addition, if when the Loans made hereunder are repaid in full the
total interest due hereunder (taking into account the increase
provided for above) is less than the total amount of interest that
would have been due hereunder if the stated rates of interest set
forth in this Agreement had at all times been in effect, then to
the extent permitted by law, the Borrower shall pay to the
Administrative Agent an amount equal to the difference between the
amount of interest paid and the amount of interest that would have
been paid if the Highest Lawful Rate had at all times been in
effect. Notwithstanding the foregoing, it is the intention of the
Lenders and the Borrower to conform strictly to any applicable
usury laws. Accordingly, if any Lender contracts for, charges, or
receives any consideration that constitutes interest in excess of
the Highest Lawful Rate, then any such excess shall be cancelled
automatically and, if previously paid, shall at such Lender’s
option be applied to the outstanding amount of the Loans made
hereunder or be refunded to the Borrower.

 

10.19                      Counterparts.
This Agreement may be executed in any number of counterparts, each
of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but
one and the same instrument. Delivery of an executed counterpart of
a signature page of this Agreement by facsimile or in electronic
format (i.e., “pdf” or “tif”) shall be
effective as delivery of a manually executed counterpart of this
Agreement.

 

10.20                      Effectiveness;
Entire Agreement. Subject to
Section 3, this Agreement shall become effective when it shall have
been executed by the Administrative Agent and there shall have been
delivered to the Administrative Agent counterparts hereof that,
when taken together, bear the signatures of each of the other
parties hereto. THIS AGREEMENT AND
THE OTHER CREDIT DOCUMENTS CONSTITUTE THE ENTIRE CONTRACT AMONG THE
PARTIES RELATING TO THE SUBJECT MATTER HEREOF AND SUPERSEDE ANY AND
ALL PREVIOUS AGREEMENTS AND UNDERSTANDINGS, ORAL OR WRITTEN,
RELATING TO THE SUBJECT MATTER HEREOF (BUT DO NOT SUPERSEDE ANY
PROVISIONS OF ANY FEE LETTER BETWEEN OR AMONG ANY CREDIT PARTIES
AND ANY LENDER, ANY AGENT OR ANY AFFILIATE OF ANY OF THE FOREGOING
THAT BY THE TERMS OF SUCH DOCUMENTS ARE STATED TO SURVIVE THE
EFFECTIVENESS OF THIS AGREEMENT, ALL OF WHICH PROVISIONS SHALL
REMAIN IN FULL FORCE AND EFFECT).

 

10.21                      PATRIOT
Act. Each Lender and
the Administrative Agent (for itself and not on behalf of any
Lender) hereby notifies each Credit Party that pursuant to the
requirements of the PATRIOT Act it is required to obtain, verify
and record information that identifies each Credit Party, which
information includes the name and address of each Credit Party and
other information that will allow such Lender or the Administrative
Agent, as applicable, to identify such Credit Party in accordance
with the PATRIOT Act.

 

10.22                      Electronic
Execution of Assignments. The words
“execution”, “signed”,
“signature” and words of like import in any Assignment
Agreement shall be deemed to include electronic signatures or the
keeping of records in electronic form, each of which shall be of
the same legal effect, validity or enforceability as a manually
executed signature or the use of a paper-based recordkeeping
system, as the case may be, to the extent and as provided for in
any applicable law, including the Federal Electronic Signatures in
Global and National Commerce Act, the New York State Electronic
Signatures and Records Act, or any other similar state laws based
on the Uniform Electronic Transactions Act.

 

 

 

126

 

 

 

 

10.23                      No
Fiduciary Duty. Each Agent, each
Lender and their respective Affiliates (collectively, solely for
purposes of this paragraph, the “Lenders”) may have economic
interests that conflict with those of the Credit Parties, their
equityholders and/or their Affiliates. Each Credit Party agrees
that nothing in the Credit Documents or otherwise will be deemed to
create an advisory, fiduciary or agency relationship or fiduciary
or other implied duty between any Agent or Lender, on the one hand,
and such Credit Party or its equityholders or its Affiliates, on
the other. The Credit Parties acknowledge and agree that (a) the
transactions contemplated by the Credit Documents (including the
exercise of rights and remedies hereunder and thereunder) are
arm’s-length commercial transactions between the Agents and
Lenders, on the one hand, and the Credit Parties, on the other, and
(b) in connection therewith and with the process leading thereto,
(i) no Agent or Lender has assumed an advisory or fiduciary
responsibility in favor of any Credit Party, its equityholders or
its Affiliates with respect to the transactions contemplated hereby
(or the exercise of rights or remedies with respect thereto) or the
process leading thereto (irrespective of whether any Agent or
Lender has advised, is currently advising or will advise any Credit
Party, its equityholders or its Affiliates on other matters) or any
other obligation to any Credit Party except the obligations
expressly set forth in the Credit Documents and (ii) each Agent and
Lender is acting solely as principal and not as the agent or
fiduciary of any Credit Party, its management, equityholders,
creditors or any other Person. Each Credit Party acknowledges and
agrees that it has consulted its own legal and financial advisors
to the extent it has deemed appropriate and that it is responsible
for making its own independent judgment with respect to such
transactions and the process leading thereto. Each Credit Party
agrees that it will not assert, and hereby waives to the maximum
extent permitted by applicable law, any claim that any Agent or
Lender has rendered advisory services of any nature or respect, or
owes a fiduciary or similar duty to such Credit Party, in
connection with any such transaction or the process leading
thereto.

 

10.24                      [Reserved].

 

10.25                      Acknowledgement
and Consent to Bail-In of EEA Financial
Institutions. Notwithstanding
anything to the contrary in any Credit Document or in any other
agreement, arrangement or understanding among the parties hereto,
each party hereto acknowledges that any liability of any EEA
Financial Institution arising under any Credit 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 Credit 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.

 

[Remainder
of page intentionally left blank]

 

 

127

 

IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be duly executed and delivered by
their respective officers thereunto duly authorized as of the date
first written above.

 

	

FUSION CONNECT, INC., as Borrower

	

By:

	

/s/
Keith Soldan

	
 

	

Name: Keith
Soldan

	
 

	

Title: Chief
Financial Officer

 

	

FUSION NBS ACQUISITION CORP.

FUSION LLC

FUSION BCHI ACQUISITION LLC

FUSION CB HOLDINGS, INC.

FUSION CLOUD SERVICES LLC

FUSION COMMUNICATIONS, LLC

FUSION MANAGEMENT SERVICES LLC

FUSION TELECOM, LLC

FUSION TEXAS HOLDINGS, INC.

FUSION TELECOM OF KANSAS, LLC

FUSION TELECOM OF OKLAHOMA, LLC

FUSION TELECOM OF MISSOURI, LLC

FUSION TELECOM OF TEXAS LTD., L.L.P.

BIRCAN HOLDINGS, LLC

FUSION PM HOLDINGS, INC.

FUSION MPHC HOLDING CORP.

FUSION CLOUD COMPANY LLC

FUSION MPHC GROUP, INC., as Guarantors

	

By:

	

/s/
Keith Soldan

	
 

	

Name: Keith
Soldan

	
 

	

Title: Chief
Financial Officer

 

 

[Signature
Page to DIP Credit and Guaranty Agreement]

 

128

 

 

 

	

WILMINGTON TRUST, NATIONAL ASSOCIATION, as the
Administrative Agent

and the
Collateral Agent,

	

By:

	

/s/
Jeffery Rose

	
 

	

Name:
Jeffery Rose

Title:
Vice President

 

[Signature
Page to DIP Credit and Guaranty Agreement]

 

129

 

 

	

[_________],
as a Lender,

	

By:

	

/s/

	
 

	

Authorized
Signatory

 

 

[Signature
Page to DIP Credit and Guaranty Agreement]

 

130

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}]]