Document:

EX-10.45 Subordination Agreement, International

 

Exhibit 10.45

SUBORDINATION AND INTERCREDITOR AGREEMENT

          This SUBORDINATION AND INTERCREDITOR AGREEMENT (this “Agreement”), dated as of January
5, 2007 is among TERREMARK WORLDWIDE, INC., a Delaware corporation (the “Company”); NAP OF
THE AMERICAS, INC.; NAP OF THE AMERICAS/WEST, INC.; OPTICAL COMMUNICATIONS, INC.; PARK WEST
TELECOMMUNICATIONS INVESTORS, INC.; SPECTRUM TELECOMMUNICATIONS CORP.; TECOTA SERVICES CORP.;
TERREMARK FINANCIAL SERVICES, INC.; TERREMARK FORTUNE HOUSE #1, INC.; TERREMARK LATIN AMERICA,
INC.; TERREMARK MANAGEMENT SERVICES, INC.; TERREMARK REALTY, INC.; TERREMARK TECHNOLOGY
CONTRACTORS, INC.; TERRREMARK TRADEMARK HOLDINGS, INC.; TERRENAP DATA CENTERS, INC.; TERRENAP
SERVICES, INC.; TERREMARK FEDERAL GROUP, INC.; and TERREMARK EUROPE, INC. (each, a
“Guarantor” and, collectively, the “Guarantors”), FALCON MEZZANINE PARTNERS, LP
(“Falcon”), STICHTING PENSIOENFONDS VOOR DE GEZOND-HEID, GEESTELIJKE EN MAATSCHAPPELIJKE
BELANGEN (“SPM”), STICHTING PENSIOENFONDS ABP (“ABP” and, together with Falcon and
SPM, the “Senior Creditors”), FMP AGENCY SERVICES, LLC (the “Senior Agent”), CREDIT SUISSE,
INTERNATIONAL (“Subordinated Creditor”) and THE BANK OF NEW YORK TRUST COMPANY, N.A., as
Trustee under the Indenture (as hereinafter defined) (“Subordinated Agent”).

R E C I T A L S

          A. The Company, Senior Agent and the Senior Creditors have entered into a Purchase Agreement
dated December 31, 2004 (as the same may be amended, supplemented, restated or otherwise modified
and in effect from time to time including, without limitation, as amended on the date hereof, the
“Senior Purchase Agreement”), pursuant to which, among other things, Senior Creditors have
purchased $30,000,000 aggregate principal amount of Senior Secured Notes due 2009 (as the same may
be amended, supplemented, restated or otherwise modified and in effect from time to time as
permitted hereunder and including any notes issued in exchange or substitution therefore or
replacement thereof, each individually a “Senior Note” and collectively the “Senior
Notes”).

          B. The Company, the Guarantors, Subordinated Creditor, and Credit Suisse, Cayman Islands
Branch have entered into a Purchase Agreement of even date herewith (as the same may be amended,
supplemented, restated or otherwise modified and in effect from time to time as permitted
hereunder, the “Subordinated Purchase Agreement”) pursuant to which, among other things,
the Subordinated Creditor has extended credit to the Company as evidenced by certain Senior
Subordinated Convertible Notes due 2009 issued by the Company in favor of the Subordinated Creditor
in the original aggregate principal amount of $4,000,000 (as the same may be amended, supplemented,
restated or otherwise modified and in effect from time to time as permitted hereunder and including
any notes issued in exchange or substitution therefor or replacement thereof, each individually a
“Subordinated Note” and collectively the “Subordinated Notes”).

 

 

          C. The Company and Subordinated Agent have entered into an Indenture of even date herewith (as
the same may be amended, supplemented, restated or otherwise modified and in effect from time to
time as permitted hereunder, the “Indenture”) pursuant to which, among other things, the
Subordinated Notes were issued by the Company in favor of the Subordinated Creditor.

          D. As an inducement to and as one of the conditions precedent to the agreement of the Senior
Creditors to consent to the transactions contemplated by the Subordinated Purchase Agreement and
Indenture, Senior Agent, and Senior Creditors have required the execution and delivery of this
Agreement by the Subordinated Creditor, the Subordinated Agent and the Obligors (as herinafter
defined).

          NOW, THEREFORE, in order to induce Senior Agent and Senior Creditors to consent to the
transactions contemplated by the Subordinated Purchase Agreement and the Indenture, and for other
good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the
parties hereto hereby agree as follows:

     1. Definitions. All capitalized terms used but not elsewhere defined in this
Agreement (including the preamble and recitals hereto) shall have the respective meanings ascribed
to such terms in the Senior Purchase Agreement as in effect on the date hereof. The following terms
shall have the following meanings in this Agreement:

     Bankruptcy Code means the Federal Bankruptcy Reform Act of 1978 (11 U.S.C.
§101, et seq.), as amended and in effect from time to time and the regulations issued from
time to time thereunder.

     Basic Documents shall have (and each capitalized term used therein shall have)
the meaning ascribed to such term in the Senior Purchase Agreement, as in effect on the date
hereof.

     Enforcement Action is defined in subsection 2.7(b).

     Lien shall mean any mortgage, deed of trust, pledge, hypothecation, assignment,
charge or deposit arrangement, encumbrance, lien (statutory or otherwise) or preference,
priority or other security interest or preferential arrangement of any kind or nature
whatsoever and any contingent or other agreement to provide any of the foregoing.

     Obligor shall mean the Company and each other Person that guarantees or grants
a Lien on any of its Property to secure the payment, observance or performance of all or any
part of the Senior Indebtedness, including, without limitation, the Guarantors.

     Paid in Full or Payment in Full shall mean the payment in full in cash
of all Senior Indebtedness and termination of all commitments to lend under the Basic
Documents and Permitted Refinancing Debt Documents. Senior Indebtedness shall be considered
to be outstanding whenever any commitment to make loans or otherwise extend credit under the
Senior Purchase Agreement or Permitted Refinancing Debt Documents is outstanding.

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     Permitted Refinancing shall mean any refinancing of the Senior Indebtedness
under the Basic Documents; provided, that the financing documentation entered into
by Obligors in connection with such Permitted Refinancing constitutes Permitted Refinancing
Debt Documents and the aggregate principal amount of such refinancing does not exceed the
maximum principal amount of Senior Indebtedness permitted under the definition thereof.

     Permitted Refinancing Debt Documents shall mean any financing documentation
which replaces the Basic Documents and pursuant to which the Senior Indebtedness under the
Basic Documents is refinanced, as such financing documentation may be amended, supplemented,
restated or otherwise modified and in effect from time to time as permitted hereunder, but
specifically excluding any such financing documentation to the extent that it contains,
either initially or by amendment or other modification, any terms, conditions, covenants or
defaults other than those which (a) then exist in the Basic Documents or (b) could be
included in the Basic Documents by an amendment or other modification that would not be
prohibited by the terms of this Agreement.

     Permitted Subordinated Indebtedness Payments shall mean:

     (a) interest payments on account of the Subordinated Indebtedness evidenced by the
Subordinated Notes but only to the extent made on a paid-in-kind or accretion basis (and not
made in cash);

     (b) the accrual (and not payment in cash) of default interest on Subordinated
Indebtedness evidenced by the Subordinated Notes;

     (c) the payment of fees on the date hereof pursuant to the Subordinated Purchase
Agreement to the extent made in shares of common stock of the Company (the “Fee
Shares”);

     (d) the payment in cash of liquidated damages, if any, pursuant to that certain
Registration Rights Agreement dated the date hereof by and among the Obligors and Credit
Suisse International related to the Fee Shares; and

     (e) reimbursement under the Subordinated Purchase Agreement for the reasonable and
documented out-of-pocket costs and expenses of the holders of the Subordinated Notes
pursuant to the terms of the Subordinated Purchase Agreement either (1) incurred in
connection with the negotiation, execution or delivery of the Subordinated Purchase
Agreement and paid within 30 days of the date hereof or (2) incurred in connection with the
enforcement of the Subordinated Purchase Agreement or otherwise in an aggregate not to
exceed $100,000;

     in each instance, to the extent then due and payable in accordance with the terms of the
Subordinated Indebtedness Documents.

     Person shall mean an individual, partnership, corporation, limited liability
company, business trust, joint stock company, trust, unincorporated association, joint
venture or Governmental Authority.

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     Proceeding is defined in subsection 2.3.

     Property shall mean, with respect to any Person, all property and interests in
property of such Person, whether real, personal or mixed, whether now owned or existing or
hereafter acquired or arising and wheresoever located.

     Related Fund shall mean, with respect to any holder of Subordinated
Indebtedness, (a) any fund, trust or similar entity that invests in commercial loans in the
ordinary course of business and is advised, managed or serviced by (i) such holder, (ii) an
affiliate of such holder, (iii) the same investment advisor that manages such holder or (iv)
an affiliate of an investment advisor that manages such holder, or (b) any finance company,
insurance company or other financial institution which temporarily warehouses loans for such
holder or any Person described in clause (a) above.

     Reorganization Subordinated Securities shall mean any (a) equity securities of
the Company or any of its subsidiaries and (b) notes or other debt securities issued in
substitution of all or any portion of the Subordinated Indebtedness that are subordinated,
including in right of payment, to the Senior Indebtedness (or any notes or other securities
issued in substitution of all or any portion of the Senior Indebtedness) at least to the
same extent and, in the case of clause (b), on substantially the same terms that the
Subordinated Indebtedness is subordinated to the Senior Indebtedness pursuant to the terms
of this Agreement, and which securities have maturities and other terms no less advantageous
to Obligors and Senior Creditors than the terms contained in the Subordinated Indebtedness
Documents.

     Required Holders shall have the meaning ascribed to such term in the Senior
Purchase Agreement; provided, that, after the consummation of any Permitted
Refinancing, the term “Required Holders” shall mean the holders of Senior Indebtedness
having the right and/or ability under the Permitted Refinancing Debt Documents to effectuate
the waiver, amendment, granting of consent or other matter in question.

     Senior Agent shall have the meaning ascribed to such term in the preamble of
this Agreement; provided, that, after the consummation of any Permitted Refinancing,
the term “Senior Agent” shall refer to any Person appointed by the holders of the Senior
Indebtedness as agent for themselves for the purposes of this Agreement.

     Senior Covenant Default shall mean any “Default” or “Event of Default” under
the Senior Purchase Agreement or Permitted Refinancing Debt Documents, other than a Senior
Payment Default.

     Senior Creditor or Senior Creditors shall mean any “Noteholder” or the
“Noteholders,” respectively, as such terms are defined in the Senior Purchase Agreement;
provided, that, after the consummation of any Permitted Refinancing, such terms
shall refer to any holder or all of the holders, respectively, of the Senior Indebtedness.

     Senior Creditor Collateral shall mean all of the assets and property of any
Obligor, whether real, personal. mixed, with respect to which a Lien is granted or purported
to be granted as security for any Senior Indebtedness.

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     Senior Default Notice shall mean a written notice from Senior Agent or any
Senior Creditor to Subordinated Agent and the Company pursuant to which the Subordinated
Agent is notified of the existence of a Senior Covenant Default.

     Senior Indebtedness shall mean all Indebtedness, liabilities and other
obligations of any and every kind and nature now existing or hereafter arising, contingent
or otherwise, of any Obligor or any other Person under, in connection with, or evidenced or
secured by the Senior Purchase Agreement or any of the other Basic Documents, including,
without limitation, all such Obligations to pay (i) principal, (ii) interest or premium
(including interest accruing after the commencement of any Proceeding, whether or not
constituting an allowed claim in such Proceeding), (iii) fees, (iv) costs, expenses and
other amounts related to any indemnity against loss, damage or liability, (v) any other
monetary obligation, and all such Indebtedness, obligations and liabilities incurred with
respect to Permitted Refinancings, together with any amendments, restatements,
modifications, renewals or extensions of any thereof permitted hereunder; provided,
that, in no event shall the principal amount of the Senior Indebtedness exceed the sum of
(a) $30,000,000, reduced by the amount of any principal repayments and permanent commitment
reductions under the Senior Purchase Agreement or any Permitted Refinancing Debt Documents,
to the extent that such repayments and reductions may not be reborrowed (specifically
excluding, however, any such repayments and commitment reductions occurring in connection
with any Permitted Refinancing), plus (b) costs and expenses incurred following the
occurrence of a Senior Payment Default or Senior Covenant Default, as the case may be, by or
for the account of the holders of Senior Indebtedness (or any representatives thereof) to
preserve or protect any Senior Creditor Collateral, plus (c) the amount of interest
that is capitalized and added to the principal amount of the Senior Notes in accordance with
the terms thereof.

     Senior Payment Default shall mean a Default or Event of Default described in
Section 10.01(a) or (b) of the Senior Purchase Agreement or any corresponding
provision in the Permitted Refinancing Debt Documents or any other Default or Event of
Default resulting from the failure of any Obligor to pay, on a timely basis, any principal
interest, premium, fees or other obligations under any Basic Document or Permitted
Refinancing Debt Document, including, without limitation, in each case, any default in
payment of Senior Indebtedness after acceleration thereof.

     Subordinated Creditor shall mean the Subordinated Creditor that is a signatory
to this Agreement and any other holder of the Subordinated Note(s) or any other Subordinated
Indebtedness from time to time.

     Subordinated Default shall mean a default in the payment of the Subordinated
Indebtedness, or performance of any term, covenant or condition contained in the
Subordinated Indebtedness Documents or the occurrence of any other event or condition
constituting a default or event of default under the Subordinated Indebtedness Documents.

     Subordinated Default Notice shall mean a written notice to Senior Agent and the
Company from Subordinated Agent or the Subordinated Creditor pursuant to which Sen

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ior Agent is notified of the existence of a Subordinated Default, which notice
incorporates a reasonably detailed description of such Subordinated Default.

     Subordinated Indebtedness shall mean all Indebtedness, liabilities and other
obligations of any and every kind and nature now existing or hereafter arising, contingent
or otherwise, of any Obligor or any other Person under, in connection with, or evidenced by
any of the Subordinated Indebtedness Documents, in each case including, without limitation,
obligations to pay (i) principal, (ii) interest or premium (including interest accruing
after the commencement of any Proceeding, whether or not constituting an allowed claim in
such Proceeding, and any premium payable with respect to any prepayment of the Subordinated
Indebtedness pursuant to the Subordinated Indebtedness Documents), (iii) fees, (iv) costs,
expenses and other amounts related to any indemnity against loss, damage or liability, and
(v) any other monetary obligation.

     Subordinated Indebtedness Documents shall mean the Subordinated Notes,
Subordinated Purchase Agreement, Indenture, any guaranty with respect to the Subordinated
Indebtedness, and all other agreements, documents and instruments evidencing or pertaining
to any portion of the Subordinated Indebtedness, as amended, supplemented, restated or
otherwise modified and in effect from time to time as permitted hereunder.

     The definitions in Section 1 shall apply equally to both the singular and plural forms
of the terms defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words “include”, “includes” and
“including”, and words of similar import, shall not be limiting and 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 as having the same meaning and effect and to refer to any and all rights and
interests in tangible and intangible assets and properties of any kind whatsoever, whether
real, personal or mixed, including cash, securities, equity interests, accounts and contract
rights. 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 of
this Agreement unless the context shall otherwise require. Any reference to a Person, shall
be deemed to include a reference to such Person’s successors and assigns (including any
debtor in possession and any other Person to which substantially all of the assets of such
Person are transferred). All references herein to Articles, Sections, Exhibits and
Schedules shall be deemed references to Articles and Sections of, and Exhibits and Schedules
to, this Agreement unless the context shall otherwise require.

     2. Subordination of Subordinated Indebtedness to Senior Indebtedness.

     2.1 Subordination. The payment of any and all of the Subordinated Indebtedness hereby
expressly is subordinated, to the extent and in the manner set forth herein, to the Payment in Full
of the Senior Indebtedness. Each holder of Senior Indebtedness, whether now outstanding or
hereafter arising, shall be deemed to have acquired Senior Indebtedness in reliance

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upon the provisions contained herein. Nothing in this Agreement shall apply to claims of, or
payments to, the Subordinated Agent, solely in its capacity as Trustee and not for the benefit of
any Subordinated Creditor, under or pursuant to any provision of the Indenture.

     2.2 Restriction on Payments. Notwithstanding any provision of the Subordinated
Indebtedness Documents to the contrary and in addition to any other limitations set forth herein or
therein, no payment (whether made in cash, securities, other than any Reorganization Subordinated
Securities, or other Property or by set-off) of principal, interest, premium or any other amount
due with respect to the Subordinated Indebtedness shall be made or received, and neither
Subordinated Agent nor the Subordinated Creditor shall exercise any right of set-off or recoupment
with respect to any Subordinated Indebtedness, until all of the Senior Indebtedness is Paid in
Full; provided, that, except as provided in the immediately succeeding sentence or in
subsection 2.3, the Company may make and Subordinated Agent and the Subordinated Creditor
may accept and retain Permitted Subordinated Indebtedness Payments and provided,
further, that the Company may make and Subordinated Agent may accept and retain payments to
the Subordinated Agent contemplated by subsection 2.1. Notwithstanding the foregoing, no
Obligor may make, and neither Subordinated Agent nor the Subordinated Creditor may accept or
retain, any payment of principal, interest, premium or any other amount with respect to the
Subordinated Indebtedness (other than any payment made solely in Reorganization Subordinated
Securities or payments made to the Subordinated Agent as contemplated in subsection 2.1)
if, at the time of such payment or, with respect to clause (a) below, immediately after
giving effect thereto:

     (a) a Senior Payment Default exists; or

     (b) subject to the penultimate sentence of this subsection 2.2, the
Subordinated Agent and the Subordinated Creditor shall have received a Senior Default Notice
from Senior Agent or any Senior Creditor stating that a Senior Covenant Default exists or
would be created by the making of such payment.

          The Company may resume Permitted Subordinated Indebtedness Payments (and may make any
Permitted Subordinated Indebtedness Payments missed due to the application of clauses (a)
or (b) of this subsection 2.2), and Subordinated Agent and Subordinated Creditor
may accept and retain such Permitted Subordinated Indebtedness Payments:

     (1) in the case of a Senior Payment Default referred to in clause (a) of this
subsection 2.2, upon a cure or waiver (as evidenced by a written waiver from Senior
Agent or the Senior Creditors to the Company) thereof in accordance with the terms of the
Senior Purchase Agreement or Permitted Refinancing Debt Documents; or

     (2) in the case of a Senior Covenant Default referred to in clause (b) of this
subsection 2.2, upon the earlier to occur of (x) the cure or waiver (as evidenced by
a written waiver from Senior Agent or the Senior Creditors to the Company) of all such
Senior Covenant Defaults in accordance with the terms of the Senior Purchase Agreement or
Permitted Refinancing Debt Documents, and (y) the expiration of 180 days from the date on
which the Senior Default Notice was received.

     Notwithstanding any provision of this subsection 2.2 to the contrary:

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     (A) the Company shall not be prohibited from making, and Subordinated Agent and
Subordinated Creditor shall not be prohibited from accepting and retaining, Permitted
Subordinated Indebtedness Payments by virtue of the payment blockage effected by clause
(b) of this subsection 2.2 for more than an aggregate of 180 days within any
period of 360 consecutive days;

     (B) no Senior Covenant Default existing on the date any notice is given pursuant to
clause (b) of this subsection 2.2 shall, unless the same shall have ceased
to exist for a period of at least 60 consecutive days, be used as a basis for any subsequent
such notice (for purposes of this paragraph, breaches of the same financial covenant for
consecutive periods shall constitute separate and distinct Senior Covenant Defaults); and

     (C) Senior Agent and the Senior Creditors shall not deliver more than three (3) Senior
Default Notices, in the aggregate, prior to the termination of this Agreement.

          The provisions of this subsection 2.2 shall not apply to any payment with respect to
which subsection 2.3 would be applicable.

     2.3 Proceedings. In the event of any insolvency, bankruptcy, receivership,
custodianship, liquidation, reorganization, assignment for the benefit of creditors or other
proceeding for the liquidation, dissolution or other winding up of any Obligor or any of its
Subsidiaries or any of their respective Property (a “Proceeding”): (i) all Senior
Indebtedness first shall be Paid in Full before any payment (whether made in cash, securities or
other Property) of or with respect to the Subordinated Indebtedness shall be made in such
Proceeding (other than a distribution of Reorganization Subordinated Securities); (ii) any payment
which, but for the terms hereof, otherwise would be payable or deliverable in such Proceeding in
respect of the Subordinated Indebtedness (other than a distribution of Reorganization Subordinated
Securities), shall be paid or delivered directly to Senior Agent (to be held and/or applied by
Senior Agent in accordance with the terms of the Senior Purchase Agreement or the Permitted
Refinancing Debt Documents) until all Senior Indebtedness is Paid in Full, and Subordinated Agent
and the Subordinated Creditor each irrevocably authorizes, empowers and directs all receivers,
trustees, liquidators, custodians, conservators and others having authority in the premises to
effect all such payments and deliveries, and Subordinated Agent and the Subordinated Creditor each
also irrevocably authorizes, empowers and directs Senior Agent to demand, sue for, collect and
receive every such payment or distribution; (iii) Subordinated Agent and the Subordinated Creditor
each agrees to execute and deliver to Senior Agent or its representative, at the Company’s sole
cost and expense, all such further instruments confirming the authorization referred to in the
foregoing clause (ii) as Senior Agent may reasonably request; and (iv) Subordinated Agent and the
Subordinated Creditor each hereby irrevocably authorizes, empowers and appoints Senior Agent its
agent and attorney-in-fact to execute, verify, deliver and file any proofs of claim (but not vote
such claims) in respect of the Subordinated Indebtedness in connection with any such Proceeding
upon the failure of such Person to do so 15 days before the expiration of the time to file any such
proof of claim; provided, that Senior Agent shall have no obligation to execute, verify,
deliver, and/or file any such proof of claim. The Senior Indebtedness shall continue to be treated
as Senior Indebtedness and the provisions of this Agreement shall continue to govern the relative
rights and priorities of Senior Agent, Senior Creditors, Subordinated Agent and Subordinated
Creditor even if all or part of the Senior Indebtedness or the Liens securing the Senior
Indebtedness are subordinated, set

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aside, avoided or disallowed in connection with any such proceeding. This Agreement shall be
reinstated if at any time any payment of any of the Senior Indebtedness is rescinded or must
otherwise be returned by any holder of the Senior Indebtedness or any representative of such holder
and the Senior Indebtedness, or portion thereof, intended to have been satisfied shall be deemed to
be reinstated and outstanding as if such payment had not occurred.

     2.4 Incorrect Payments. If any payment (whether made in cash, securities or other
Property) not permitted to be accepted by Subordinated Agent or Subordinated Creditor under this
Agreement is received by Subordinated Agent or the Subordinated Creditor on account of any
Subordinated Indebtedness before all Senior Indebtedness is Paid in Full, such payment shall not be
commingled with any asset of such Person, shall be held in trust by such Person for the benefit of
Senior Agent and Senior Creditors and shall be paid over to Senior Agent, or its designated
representative, for application (in accordance with the Senior Purchase Agreement or the Permitted
Refinancing Debt Documents, as the case may be) to the payment of the Senior Indebtedness then
remaining unpaid, until all of the Senior Indebtedness is Paid in Full.

     2.5 Sale, Transfer. The Subordinated Creditor shall not sell, assign, dispose of or
otherwise transfer all or any portion of the Subordinated Indebtedness unless following such sale,
assignment, disposition or other transfer, there shall either be (i) no more than two (2) holders
of Subordinated Indebtedness (provided, that each holder of Subordinated Indebtedness and
its respective affiliates and Related Funds shall be counted as a single holder for purposes of
determining compliance with the foregoing limitation), or (ii) one Person acting as agent for all
holders of the Subordinated Indebtedness pursuant to documentation reasonably satisfactory to
Senior Agent such that any Senior Default Notices and other notices and communications to be
delivered to the Subordinated Creditor hereunder and any consents required by the Subordinated
Creditor shall be made to or obtained from such agent and shall be binding on the Subordinated
Creditor as if directly delivered to or obtained from such Subordinated Creditor. In the event of
a permitted sale, assignment, disposition or other transfer, prior to or substantially
contemporaneously with the consummation of any such action, the transferee thereof shall execute
and deliver to Senior Agent a joinder to this Agreement, or an agreement substantially identical to
this Agreement, in either case providing for the continued subordination and forbearance of the
Subordinated Indebtedness to the Senior Indebtedness as provided herein and for the continued
effectiveness of all of the rights of Senior Agent and Senior Creditors arising under this
Agreement. Notwithstanding the failure to execute or deliver any such agreement, the subordination
effected hereby shall survive any sale, assignment, disposition or other transfer of all or any
portion of the Subordinated Indebtedness, and the terms of this Agreement shall be binding upon the
successors and assigns of the Subordinated Creditor, as provided in Section 10 below. The
Subordinated Agent shall not be required to take any action in furtherance of this Section 2.5.

     2.6 Legends. Until the Senior Indebtedness is Paid in Full, the Subordinated Purchase
Agreement, each of the Subordinated Notes and all other Subordinated Indebtedness Documents
evidencing any Subordinated Indebtedness at all times shall contain in a conspicuous manner the
following legend:

“This Note [or other Subordinated Indebtedness Document] and the
indebtedness evidenced hereby are subordinate in the manner and to the
extent set forth in that certain Subordination and Intercreditor Agreement

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(the “Subordination Agreement”) dated as of January 5, 2007 among
Terremark Worldwide, Inc. as the Issuer, the Subsidiary Guarantors named
therein, FMP Agency Services, LLC, as the Senior Agent to the Senior
Creditors named therein, Credit Suisse, International, as the Subordinated
Creditor named therein, and The Bank of New York Trust Company, N.A., as
Trustee and as the Subordinated Agent named therein and each holder of this
Note, by its acceptance hereof, shall be bound by the provisions of the
Subordination and Intercreditor Agreement.”

     2.7 Restriction on Action by the Subordinated Creditor.

     (a) Until the Senior Indebtedness is Paid in Full and notwithstanding anything contained in
the Subordinated Indebtedness Documents, the Senior Purchase Agreement, the other Basic Documents
or the Permitted Refinancing Debt Documents to the contrary, neither Subordinated Agent nor the
Subordinated Creditor shall, without the prior written consent of Senior Agent and each Senior
Creditor, agree to any amendment, modification or supplement to the Subordinated Indebtedness
Documents, the effect of which is to (i) increase the maximum principal amount of the Subordinated
Indebtedness, (ii) increase the rate of interest on any of the Subordinated Indebtedness, except in
connection with the imposition of a default rate of interest to the extent provided for in the
Subordinated Indebtedness Documents on the date hereof, (iii) shorten the dates upon which payments
of principal or interest on the Subordinated Indebtedness are due, (iii) change in a manner adverse
to any Obligor or add any event of default, or add or make more restrictive any covenant with
respect to the Subordinated Indebtedness, (iv) change the redemption, prepayment or put provisions
of the Subordinated Indebtedness in a manner adverse to any Obligor, (v) alter the subordination
provisions with respect to the Subordinated Indebtedness, including, without limitation,
subordinating the Subordinated Indebtedness to any other indebtedness, (vi) alter the repayment
terms of the Subordinated Indebtedness, (vii) take any Liens on any Property of any Obligor, any
Subsidiary of any Obligor or any other Person, (viii) obtain any guaranties or credit support from
any Person, unless Senior Agent and Senior Creditors have obtained a guaranty or credit support, as
the case may be, in respect of the Senior Indebtedness from such Person and such Person’s
obligations in respect of such guaranty or credit support, as the case may be, in favor of
Subordinated Agent and Subordinated Creditor in respect of the Subordinated Indebtedness are
subordinated to its obligations in respect of the Senior Indebtedness on the same terms and to the
same extent that the Subordinated Indebtedness is subordinated to the Senor Indebtedness pursuant
the terms of this Agreement, or (ix) change or amend any other term of the Subordinated
Indebtedness Documents if such change or amendment would increase the obligations of any Obligor or
confer additional material rights on Subordinated Agent or the Subordinated Creditor or any other
holder of the Subordinated Indebtedness in a manner adverse to any Obligor, Senior Agent or Senior
Creditors.

     (b) Until the Senior Indebtedness is Paid in Full, neither Subordinated Agent nor the
Subordinated Creditor shall, without the prior written consent of Senior Agent, take any action to
collect, or enforce payment of the Subordinated Indebtedness, exercise any of the remedies with
respect to the Subordinated Indebtedness set forth in any of the Subordinated Indebtedness
Documents or that otherwise may be available to Subordinated Agent or the Subordinated Creditor,
either at law or in equity, by judicial proceedings (including by filing a Proceeding) or oth-

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erwise (an “Enforcement Action”), except as provided in the following sentence. Upon
the earliest to occur of:

     (i) the passage of 180 days from the date of Senior Agent’s and each Senior Creditor’s
receipt of a Subordinated Default Notice that includes a statement that Subordinated
Creditor is commencing the 180-day standstill period provided for herein if the Subordinated
Default described therein shall not have been cured or waived within such period;

     (ii) acceleration of the Senior Indebtedness (provided, that if, following any
such acceleration of the Senior Indebtedness, such acceleration in respect of the Senior
Indebtedness is rescinded, then all Enforcement Actions taken by Subordinated Agent or the
Subordinated Creditor shall likewise be rescinded if (A) such Enforcement Actions are based
on this clause (ii) and (B) neither Subordinated Agent nor the Subordinated Creditor
shall have any right under any other clause of this subsection 2.7(b) to take any
Enforcement Actions).

     (iii) the occurrence of a Proceeding (provided, that if such Proceeding is
dismissed, the corresponding prohibition against Subordinated Agent or Subordinated Creditor
taking any Enforcement Action shall automatically be reinstated as of the date of dismissal
as if such Proceeding had not been initiated, unless Subordinated Agent and Subordinated
Creditor shall have the right to take any Enforcement Action under another clause of this
subsection 2.7(b); provided, further, that such reinstatement shall
not affect the running of the 180 day period under clause (a) above to the extent
the Subordinated Default giving rise thereto is not based on an acceleration of the Senior
Indebtedness or the initiation of such Proceeding);

Subordinated Agent and Subordinated Creditor may, upon five (5) Business Days’ prior written notice
to Senior Agent, take Enforcement Actions; provided, that no such notice shall be required
in the case of any Enforcement Action permitted to be taken under clauses (ii) or
(iii) of this subsection 2.7(b).

     3. Continued Effectiveness of this Agreement; Modifications to Senior Indebtedness.

     (a) The terms of this Agreement, the subordination effected hereby, and the rights and the
obligations of Subordinated Agent, Subordinated Creditor, Senior Agent and Senior Creditors arising
hereunder, shall not be affected, modified or impaired in any manner or to any extent by: (i) any
amendment or modification of or supplement to the Senior Purchase Agreement, any other Basic
Document or any Permitted Refinancing Debt Document (to the extent such amendment, modification or
supplement is not prohibited under the terms of this Agreement) or any Subordinated Indebtedness
Document; (ii) the validity or enforceability of any of such documents; or (iii) any exercise or
non-exercise of any right, power or remedy under or in respect of the Senior Indebtedness or the
Subordinated Indebtedness or any of the instruments or documents referred to in clause (i)
above.

-11-

 

     (b) Senior Agent and Senior Creditors may at any time and from time to time without the
consent of or notice to Subordinated Agent or the Subordinated Creditor, without incurring
liability to Subordinated Agent or the Subordinated Creditor and without impairing or releasing the
obligations of Subordinated Agent or the Subordinated Creditor under this Agreement, change the
manner or place of payment or extend the time of payment of or renew or alter any Senior
Indebtedness, or amend, supplement, restate or otherwise modify in any manner any Basic Document or
Permitted Refinancing Debt Document; provided, that Senior Creditors shall not amend or
otherwise modify the terms of the Senior Indebtedness if the effect of such amendment or
modification is to (i) increase the principal amount of the Senior Indebtedness to an amount in
excess of the maximum amount determined pursuant to the proviso to the definition of Senior
Indebtedness set forth herein, (ii) increase any fees on the Senior Indebtedness or any applicable
interest rate with respect to the Senior Indebtedness by more than 300 basis points in excess of
the highest rate set forth in the Senior Purchase Agreement as amended as of the date hereof,
except in connection with the imposition of a default rate of interest pursuant to the terms of the
Senior Purchase Agreement as in effect on the date hereof, or (iii) extend the final maturity of
the Senior Indebtedness (as set forth in the Basic Documents in effect on the date hereof) by more
than twelve months.

     4. Representations and Warranties. The Subordinated Creditor hereby represents and
warrants (as to itself and not as to any other Person) to Senior Agent and Senior Creditors, and
Senior Agent hereby represents and warrants (as to itself and not as to any other Person) to
Subordinated Agent and the Subordinated Creditor, in each case as follows:

     4.1 Existence and Power. Such Person is duly organized, validly existing and
in good standing under the laws of the state of its organization.

     4.2 Authority. Such Person has full power and authority to enter into,
execute, deliver and carry out the terms of this Agreement and to incur the obligations
provided for herein, all of which have been duly authorized by all proper and necessary
action and are not prohibited by the organizational documents of such Person.

     4.3 Binding Agreements. This Agreement, when executed and delivered, will
constitute the valid and legally binding obligation of such Person enforceable in accordance
with its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by equitable principles.

     4.4 Conflicting Agreements; Litigation. No provisions of any mortgage,
indenture, contract, agreement, statute, rule, regulation, judgment, decree or order binding
on such Person or affecting the Property of such Person conflicts with, or requires any
consent which has not already been obtained under, or would in any way prevent the
execution, delivery or performance of the terms of this Agreement. The execution, delivery
and carrying out of the terms of this Agreement will not constitute a default under, or
result in the creation or imposition of, or obligation to create, any Lien upon the Property
of such Person pursuant to the terms of any such mortgage, indenture, contract or agreement.
No pending or, to the best of such Person’s knowledge, threatened, litigation,

-12-

 

arbitration or other proceedings if adversely determined would in any way prevent the
performance of the terms of this Agreement.

     4.5 No Divestiture. Solely in the case of the Subordinated Creditor, on the
date hereof, Subordinated Creditor which is signatory hereto is the current owner and holder
of the Subordinated Notes and all other Subordinated Indebtedness Documents.

     4.6 Default under Subordinated Indebtedness Documents and Senior Indebtedness
Documents.

     (a) Solely in the case of the Subordinated Creditor, on the date hereof, to the
knowledge of such Subordinated Creditor, no default exists under or with respect to
any of the Subordinated Indebtedness Documents.

     (b) Solely in the case of each Senior Creditor, on the date hereof, to the
knowledge of such Senior Creditor, no default exists under or with respect to the
Senior Purchase Agreement or any of the other Basic Documents.

     5. Cumulative Rights, No Waivers. Each and every right, remedy and power granted to
Senior Agent or Senior Creditors hereunder shall be cumulative and in addition to any other right,
remedy or power specifically granted herein, in the Senior Purchase Agreement, the other Basic
Documents or Permitted Refinancing Debt Documents or now or hereafter existing in equity, at law,
by virtue of statute or otherwise, and may be exercised by Senior Agent or Senior Creditors, from
time to time, concurrently or independently and as often and in such order as Senior Agent or
Senior Creditors may deem expedient. Any failure or delay on the part of Senior Agent or Senior
Creditors in exercising any such right, remedy or power, or abandonment or discontinuance of steps
to enforce the same, shall not operate as a waiver thereof or affect Senior Agent’s or Senior
Creditors’ right thereafter to exercise the same, and any single or partial exercise of any such
right, remedy or power shall not preclude any other or further exercise thereof or the exercise of
any other right, remedy or power, and no such failure, delay, abandonment or single or partial
exercise of Senior Agent’s or Senior Creditors’ rights hereunder shall be deemed to establish a
custom or course of dealing or performance among the parties hereto.

     6. Modification. Any modification or waiver of any provision of this Agreement, or
any consent to any departure by Senior Agent, any Senior Creditor, Subordinated Agent or the
Subordinated Creditor therefrom, shall not be effective in any event unless the same is in writing
and signed by Senior Agent, the Senior Creditors, Subordinated Agent and the holders of the
Subordinated Notes, and then such modification, waiver or consent shall be effective only in the
specific instance and for the specific instance and for the specific purpose given. Any notice to
or demand on Subordinated Agent or the Subordinated Creditor in any event not specifically required
of Senior Agent or any Senior Creditor hereunder shall not entitle Subordinated Agent or the
Subordinated Creditor to any other or further notice or demand in the same, similar or other
circumstances unless specifically required hereunder.

     7. Additional Documents and Actions. Subordinated Agent and the Subordinated Creditor
at any time, and from time to time, after the execution and delivery of this Agreement, upon the
request of Senior Agent or any Senior Creditor and at the expense of the Company,

-13-

 

promptly will execute and deliver such further documents and do such further acts and things
as Senior Agent or any Senior Creditor, may reasonably request in order to effect fully the
purposes of this Agreement.

     8. Notices. All notices and communications under this Agreement shall be in writing
and shall be (i) delivered in person, (ii) mailed, postage prepaid, either by registered or
certified mail, return receipt requested, (iii) delivered by overnight express courier, or (iv)
sent by telecopy (with such telecopy to be confirmed promptly in writing sent in accordance with
(i), (ii) or (iii) above), addressed in each case as follows:

	 	 	 	 	 
	 

	 	If to the Subordinated
Creditor:
	 	Credit Suisse, International

Eleven Madison Avenue

New York, NY 10010-3629

Attention: Kathleen Hess

Facsimile: 610-322-2206
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Latham & Watkins LLP

885 Third Avenue

New York, NY 10022

Attention: Jane Summers

Facsimile: (212) 751-4864
	 
	 	 	 	 
	 

	 	If to the Subordinated
Agent:
	 	The Bank of New York Trust Company, N.A.

10161 Centurian Parkway

Jacksonville, Florida 32256

Attention: Corporate Trust

          Administration

Facsimile:(904) 645-1921
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Emmet, Marvin & Martin, LLP

120 Broadway

New York, NY 10271

Attention: Elizabeth M. Clark, Esq.

Facsimile: (212) 238-3100
	 
	 	 	 	 
	 

	 	If to any Obligor:
	 	Terremark Worldwide, Inc.

2601 S. Bayshore Drive

Miami, FL 33133

Attention: Chief Financial Officer

Facsimile: (305) 856-8190

-14-

 

	 	 	 	 	 
	 

	 	with a copy to:
	 	Greenberg Traurig

1221 Brickell Avenue, 22nd Floor

Miami, FL 33133

Attention: Barbara Oikle

Facsimile: (305) 961-5722
	 
	 	 	 	 
	 

	 	If to Senior Agent or
any Senior Creditor:
	 	FMP Agency Services, LLC

21 Custom House Street; 10th Floor

Boston, MA 02110

Attention: William J. Kennedy Jr.

Facsimile: (617) 412-2799
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Cahill Gordon & Reindel llp

80 Pine Street

New York, New York 10005

Attention: John Papachristos, Esq.

Facsimile: (212) 269-5420

or to any other address, as to any of the parties hereto (including any Person that becomes a
holder of Subordinated Indebtedness after the date hereof), as such party shall designate in a
written notice to the other parties hereto. All notices sent pursuant to the terms of this
Section 8 shall be deemed received (i) if personally delivered, then on the Business Day of
delivery, (ii) if sent by overnight, express carrier, on the next Business Day immediately
following the day sent, (iii) if sent by registered or certified mail, on the earlier of the third
Business Day following the day sent or when actually received or (iv) if delivered by telecopy, on
the date of transmission if transmitted on a Business Day before 4:00 p.m. (New York time),
otherwise on the next Business Day.

     9. Severability. In the event that any provision of this Agreement is deemed to be
invalid by reason of the operation of any law or by reason of the interpretation placed thereon by
any court or governmental authority, this Agreement shall be construed as not containing such
provision and the invalidity of such provision shall not affect the validity of any other
provisions hereof, and any and all other provisions hereof which otherwise are lawful and valid
shall remain in full force and effect.

     10. Successors and Assigns. This Agreement shall inure to the benefit of the
successors and assigns of Senior Agent and Senior Creditors and shall be binding upon the
successors and assigns of Subordinated Agent, Subordinated Creditor and the Obligors.

     11. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which taken together shall be one and the same
instrument. Any such counterpart which may be delivered by facsimile, email or similar electronic
transmission shall be deemed the equivalent of an originally signed counterpart and shall be fully
admissible in any enforcement proceedings regarding this Agreement.

-15-

 

     12. Defines Rights of Creditors; Subrogation.

     (a) The provisions of this Agreement are solely for the purpose of defining the relative
rights of Subordinated Agent and Subordinated Creditor, on the one hand, and Senior Agent and
Senior Creditors, on the other hand, and shall not be deemed to create any rights or priorities in
favor of any other Person, including, without limitation, any Obligor. The failure of any Obligor
to make any payment to the Subordinated Creditor due to the operation of this Agreement shall not
be construed as prohibiting the occurrence of a Subordinated Default.

     (b) Subject to the Payment in Full of the Senior Indebtedness, in the event and to the extent
cash, Property or securities otherwise payable or deliverable to the holders of the Subordinated
Indebtedness shall have been applied pursuant to this Agreement to the payment of Senior
Indebtedness, then and in each such event, the holders of the Subordinated Indebtedness shall be
subrogated to the rights of each holder of Senior Indebtedness to receive any further payment or
distribution in respect of or applicable to the Senior Indebtedness (provided, that if,
after Payment in Full of all Senior Indebtedness, Senior Agent or any Senior Creditor takes action
against an Obligor for any indemnity obligations owing to Senior Agent or any Senior Creditor under
the Basic Documents or Permitted Refinancing Debt Documents, Subordinated Agent and the
Subordinated Creditor each agrees that its rights of subrogation hereunder shall be suspended
during such period of time that Senior Agent or any Senior Creditor is taking any such action to
enforce any such indemnity obligations under the Basic Documents or Permitted Refinancing Debt
Documents and Subordinated Agent and the Subordinated Creditor each agrees that it shall not be
permitted to receive or retain any payment or distribution made on account of the Subordinated
Indebtedness (other than a distribution of Reorganization Subordinated Securities and payments to
the Subordinated Agent permitted by subsection 2.1) during such period); and, for the
purposes of such subrogation, no payment or distribution to the holders of Senior Indebtedness of
any cash, Property or securities to which any holder of Subordinated Indebtedness would be entitled
except for the provisions of this Agreement shall, and no payment over pursuant to the provisions
of this Agreement to the holders of Senior Indebtedness by the holders of the Subordinated
Indebtedness shall, as between any Obligor, its creditors other than the holders of Senior
Indebtedness and the holders of Subordinated Indebtedness, be deemed to be a payment by such
Obligor to or on account of Senior Indebtedness.

     13. Conflict. In the event of any conflict between any term, covenant or condition of
this Agreement and any term, covenant or condition of any of the Subordinated Indebtedness
Documents, the provisions of this Agreement shall control and govern. For purposes of this
Section 13, to the extent that any provisions of any of the Subordinated Indebtedness
Documents provide rights, remedies and benefits to Senior Agent or Senior Creditors that exceed the
rights, remedies and benefits provided to Senior Agent or Senior Creditors under this Agreement,
such provisions of the applicable Subordinated Indebtedness Documents shall be deemed to supplement
(and not to conflict with) the provisions hereof.

     14. Statement of Indebtedness to the Subordinated Creditor. The Company will furnish
to Senior Agent, upon demand, a statement of the indebtedness owing from Obligors to Subordinated
Creditor, and will give Senior Agent access to the books of Obligors in accordance with the Senior
Purchase Agreement so that Senior Agent can make a full examination of the status of such
indebtedness. The Company will furnish to the Subordinated Creditor, upon

-16-

 

demand, a statement of the indebtedness owing from Obligors to Senior Creditors, and will give
the Subordinated Creditor access to the books of Obligors in accordance with the Subordinated
Purchase Agreement so that the Subordinated Creditor can make a full examination of the status of
such indebtedness.

     15. Headings. The paragraph headings used in this Agreement are for convenience only
and shall not affect the interpretation of any of the provisions hereof.

     16. Termination. This Agreement shall terminate upon the Payment in Full of the
Senior Indebtedness.

     17. Subordinated Default Notice. The Company shall provide Senior Agent and each
Senior Creditor with prompt written notice of the occurrence of a Subordinated Default (which
notice shall incorporate a reasonably detailed description of such Subordinated Default) and of any
cure or waiver thereof. The Company shall provide Subordinated Agent and the Subordinated Creditor
with prompt written notice of the occurrence of a Senior Payment Default or Senior Covenant
Default, as the case may be (which notice shall incorporate a reasonably detailed description of
such Senior Payment Default or Senior Covenant Default), and of any cure or waiver thereof.

     18. APPLICABLE LAW. THIS AGREEMENT, AND ALL MATTERS RELATING HERETO OR THERETO OR
ARISING THEREFROM, SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THAT WOULD
REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

     19. JURISDICTION AND VENUE. EACH PARTY HERETO HEREBY CONSENTS TO THE JURISDICTION OF
ANY STATE OR FEDERAL COURT LOCATED WITHIN THE STATE, COUNTY AND CITY OF NEW YORK AND IRREVOCABLY
AGREES THAT ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE
LITIGATED IN SUCH COURTS. EACH PARTY HERETO EXPRESSLY SUBMITS AND CONSENTS TO THE JURISDICTION OF
THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS. EACH PARTY HERETO HEREBY
WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE
MADE UPON SUCH PERSON BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO SUCH
PERSON AT THE ADDRESS SET FORTH IN SECTION 8 OF THIS AGREEMENT AND SERVICE SO MADE SHALL BE
COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN POSTED.

     20. WAIVER OF RIGHT TO JURY TRIAL. EACH PARTY HERETO (INCLUDING, WITHOUT LIMITATION,
ANY PERSON THAT BECOMES A HOLDER OF SUBORDINATED INDEBTEDNESS OR SENIOR INDEBTEDNESS AFTER THE DATE
HEREOF) HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING ARISING

-17-

 

OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY AND AGREES THAT
ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. EACH PARTY
HERETO (INCLUDING, WITHOUT LIMITATION, ANY PERSON THAT BECOMES A HOLDER OF SUBORDINATED
INDEBTEDNESS OR SENIOR INDEBTEDNESS AFTER THE DATE HEREOF) ACKNOWLEDGES THAT THIS WAIVER IS A
MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT SUCH PERSON HAS RELIED ON THE
WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT SUCH PERSON WILL CONTINUE TO RELY ON THIS WAIVER IN
THEIR RELATED FUTURE DEALINGS. EACH PARTY HERETO (INCLUDING, WITHOUT LIMITATION, ANY PERSON THAT
BECOMES A HOLDER OF SUBORDINATED INDEBTEDNESS OR SENIOR INDEBTEDNESS AFTER THE DATE HEREOF)
WARRANTS AND REPRESENTS THAT SUCH PERSON HAS HAD THE OPPORTUNITY OF REVIEWING THIS JURY WAIVER WITH
LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS.

     21. No Contest of Senior Indebtedness or Liens; No Security for Subordinated
Indebtedness. The Subordinated Creditor agrees that it will not, and will not encourage any
other Person to, at any time, contest the validity, perfection, priority or enforceability of the
Senior Indebtedness or Liens in the Senior Creditor Collateral pursuant to the Senior Purchase
Agreement, the other Basic Documents or the Permitted Refinancing Debt Documents or accept or take
any collateral security for the Subordinated Indebtedness.

     22. Notice to Subordinated Agent. 

          The Subordinated Creditor and the Company shall give prompt written notice to the Subordinated
Agent of any fact known to the Subordinated Creditor or the Company, respectively, which would
prohibit the making of any payment to or by the Subordinated Agent in respect of the Subordinated
Notes. Failure to give such notice shall not affect the subordination of the Subordinated Notes to
Senior Indebtedness. Notwithstanding the provisions of this or any other provision of this
Agreement, the Subordinated Agent shall not be charged with knowledge of the existence of any facts
which would prohibit the making of any payment to or by the Subordinated Agent in respect of the
Subordinated Notes, unless and until the Subordinated Agent shall have received written notice
thereof at the address specified in Section 8 from the Subordinated Creditor or the Company; and,
prior to the receipt of any such written notice, the Subordinated Agent shall be entitled in all
respects to assume that no such facts exist; provided, however, that if a
Responsible Officer (as defined in the Indenture) of the Subordinated Agent shall not have
received, at least two Business Days prior to the date upon which by the terms of the Indenture any
such money may become payable for any purpose, the notice with respect to such money provided for
in this Section 22, then, anything herein contained to the contrary notwithstanding, the
Subordinated Agent shall have full power and authority to receive such money and to apply the same
to the purpose for which such money was received and shall not be affected by any notice to the
contrary which may be received by it within two Business Days prior to such date. The Subordinated
Agent shall be entitled to conclusively rely on the delivery to it of a written notice by a person
representing himself to be a representative of the Subordinated

-18-

 

Creditor or the Company to establish that such notice has been given by a representative of the
Subordinated Creditor or the Company, as applicable. Nothing in this Section 22 shall permit the
Subordinated Creditor to accept any payments from the Company or the Subordinated Agent prohibited
by any section of this Agreement.

          23. Reliance on Judicial Order or Certificate of Liquidating Agent.

          Upon any payment or distribution of assets of the Company referred to in this Agreement, the
Subordinated Agent and the Subordinated Creditor shall be entitled to conclusively rely upon any
order or decree entered by any court of competent jurisdiction in which such insolvency,
bankruptcy, receivership, liquidation, reorganization, dissolution, winding up or similar case or
proceeding is pending, or a certificate of the trustee in bankruptcy, liquidating trustee,
custodian, receiver, assignee for the benefit of creditors, agent or other person making such
payment or distribution, delivered to the Subordinated Agent or the Subordinated Creditor, for the
purpose of ascertaining the persons entitled to participate in such payment or distribution, the
holders of Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or
to this Agreement.

          24. Subordinated Agent Not Fiduciary for Holders of Senior Indebtedness.

          The Subordinated Agent shall not be deemed to owe any fiduciary duty to the holders of Senior
Indebtedness and shall not be liable to any such holders if the Subordinated Agent shall in good
faith mistakenly pay over or distribute to the Subordinated Creditor or to the Company or to any
other person cash, property or securities to which any holders of Senior Indebtedness shall be
entitled by virtue of this Agreement or otherwise. With respect to the holders of Senior
Indebtedness, the Subordinated Agent undertakes to perform or to observe only such of its covenants
or obligations as are specifically set forth in this Agreement and no implied covenants or
obligations with respect to holders of Senior Indebtedness shall be read into this Agreement
against the Subordinated Agent.

          25. Rights of the Subordinated Agent.

          The rights, privileges, protections and benefits given to the Subordinated Agent, in its
capacity as trustee, paying agent, registrar and conversion agent, under Article VII of the
Indenture (including, without limitation, its rights to be indemnified) are extended to, and shall
be enforceable by, the Subordinated Agent in connection with its execution of this Agreement and
its performance hereunder and to each agent, custodian and other Person employed to act hereunder.

[remainder of page intentionally left blank; signature pages follow]

-19-

 

          IN WITNESS WHEREOF, the Obligors have caused this Agreement to be executed as of the date
first above written. The Obligors, by their execution and delivery of this Agreement, agree not to
take any actions inconsistent with this Agreement.

	 	 	 	 	 
	 	TERREMARK WORLDWIDE INC., a Delaware corporation

 	 
	 	By:  	/s/ Jose A. Segrera 	 
	 	 	Name:  	Jose A. Segrera 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	NAP OF THE AMERICAS, INC.

NAP OF THE AMERICAS/WEST, INC.

PARK WEST TELECOMMUNICATIONS INVESTORS, INC.

SPECTRUM TELECOMMUNICATIONS CORP.

TECOTA SERVICES CORP.

TERREMARK FINANCIAL SERVICES, INC.

TERREMARK FORTUNE HOUSE #1, INC.

TERREMARK LATIN AMERICA, INC.

TERREMARK MANAGEMENT SERVICES, INC.

TERREMARK REALTY, INC.

TERREMARK TECHNOLOGY CONTRACTORS, INC.

TERRREMARK TRADEMARK HOLDINGS, INC.

TERRENAP DATA CENTERS, INC.

TERRENAP SERVICES, INC.

TERREMARK EUROPE, INC.

 
	 	 	 
	 	 	 
	 	 	 
	 
	 	 	 
	 	By:  	/s/ Jose A. Segrera
 	 
	 	 	Name:  	Jose A. Segrera 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	OPTICAL COMMUNICATIONS, INC.

 	 
	 	By:  	/s/ Manuel D. Medina 	 
	 	 	Name:  	Manuel D. Medina 	 
	 	 	Title:  	 	 
	 

Series B Notes Subordination Agreement

 

 

	 	 	 	 	 
	 	TERREMARK FEDERAL GROUP, INC.

 	 
	 	 	 
	 	By:  	
/s/ Nelson Fonseca 	 
	 	 	Name:  	Nelson Fonseca 	 
	 	 	Title:  	Treasurer and Chief Financial Officer 	 
	 

Series B Notes Subordination Agreement

 

 

          IN WITNESS WHEREOF, Senior Agent and Senior Creditor have caused this Agreement to be executed
as of the date first above written.

	 	 	 	 	 
	 	SENIOR AGENT:

FMP AGENCY SERVICES, LLC

 	 
	 	By:  	/s/ William J. Kennedy, Jr. 	 
	 	 	Name:  	William J. Kennedy, Jr. 	 
	 	 	Title:  	Manager 	 
	 
	 	SENIOR CREDITORS:	 
	 	 	 
	 	FALCON MEZZANINE PARTNERS, LP	 
	 
	 	By:  	                                              Falcon Mezzanine Investments, LLC,
 	 
	 	 	its General Partner 	 
	 
	 	By:  	/s/ Rafael Fogel
 	 
	 	 	Name:  	Rafael Fogel 	 
	 	 	Title:  	Vice President 	 
	 

Series B Notes Subordination Agreement

 

 

	 	 	 	 	 
	 	STICHTING PENSIOENFONDS VOOR DE GEZOND-HEID,

GEESTELIJKE EN MAATSCHAPPELIJKE BELANGEN,

Duly represented by AlpInvest Partners, N.V.
	 
	 	By:  	 /s/ M. Rademakers 	 
	 	 	Name:  	M. Rademakers 	 
	 	 	Title:  	Tax Counsel 	 
	 
	 	 	 
	 	By:  	/s/ C.F. de Ru
 	 
	 	 	Name:  	C.F. de Ru 	 
	 	 	Title:  	Senior Legal Counsel 	 
	 
	 
	 	STICHTING PENSIOENFONDS ABP,

Duly represented by AlpInvest Partners N.V.

 	 
	 	By:  	 /s/ M. Rademakers 	 
	 	 	Name:  	M. Rademakers 	 
	 	 	Title:  	Tax Counsel 	 
	 
	 	 	 
	 	By:  	/s/ C.F. de Ru
 	 
	 	 	Name:  	C.F. de Ru 	 
	 	 	Title:  	Senior Legal Counsel 	 
	 
	 

Series B Notes Subordination Agreement

 

 

          IN WITNESS WHEREOF, Subordinated Creditor has caused this Agreement to be executed as of the
date first above written.

	 	 	 	 	 
	 	SUBORDINATED CREDITOR:

 

CREDIT SUISSE, INTERNATIONAL

 	 
	 	By:  	/s/ Robert Nydegger 	 
	 	 	Name:  	Robert Nydegger 	 
	 	 	Title:  	Managing Director 	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Damien Dwin 	 
	 	 	Name:  	Damien Dwin 	 
	 	 	Title:  	Director 	 

Series B Notes Subordination Agreement

 

 

          IN WITNESS WHEREOF, Subordinated Agent has caused this Agreement to be executed as of the date
first above written

	 	 	 	 	 
	 	SUBORDINATED AGENT:

THE BANK OF NEW YORK TRUST COMPANY, N.A.

 	 
	 	By:  	/s/
Geraldine Creswell 	 
	 	 	Name:  	Geraldine Creswell 	 
	 	 	Title:  	Assistant Treasurer 	 
	 

Series B Notes Subordination AgreementEX-10.46 Capital Lease Facility Commitment Letter

 

EXHIBIT 10.46

January 5, 2007

(the “Effective Date”)

CONFIDENTIAL

Chief Financial Officer

Terremark Worldwide, Inc.

2601 South Bayshore Drive

Suite 900

Miami, Florida 33133

Terremark Worldwide, Inc. (“Sponsor”)

$13,250,000 Capital Lease Facility

Commitment Letter (the “Commitment Letter”)

Ladies and Gentlemen:

     Credit Suisse and Credit Suisse Securities (USA) LLC (with their other affiliates,
“CS”) commit to arrange for the acquisition of each Property by a special purpose entity to
be formed for such purpose, and thereafter lease each Property to Lessee, all in accordance with
the attached term sheet (the “Term Sheet”), and subject to the conditions in the Term Sheet
and below in this Commitment Letter. Wherever this Commitment Letter or the Term Sheet refers to
Lessee, each such reference shall be deemed to refer instead to Sponsor unless and until Lessee has
actually been formed and executed and delivered a counterpart of (or otherwise assumed Lessee’s
obligations under) this Commitment Letter. Any definitions in the Term Sheet also apply in this
Commitment Letter. CS, Lessee, and Sponsor further agree as follows:

	 	 	 
	Standby Fee —

Amount
	 	On the first day of every calendar
quarter starting January 1, 2007
(accruing for a full calendar quarter
upon the signing of this Commitment
Letter), CS shall earn a fee (the
“Standby Fee”) equal to one quarter of
5.50% (550 basis points) (the “Standby
Rate”) times the sum of the following:

	 	 	 	 	 
	 	 	·
	 	$13,250,000; less

	 
	 	 	 	 

	 	 	·
	 	Any Lessor’s Investment that
Lessor has actually funded in cash at a
Closing or for which Lessor’s obligation
to fund has expired (or for which Sponsor
and Lessee have issued a Cancellation
Notice, as described below) without
funding.

	 	 	 
	Standby Fee —

Calculation and

Payment
	 	The Standby Fee shall accrue on the first
day of every calendar quarter. When a
Closing occurs for a Property, accrued
Standby Fee allocable to that Property
shall become part of Lessor’s Investment.
If, for any Property, the Term Sheet
expires without a Closing or Sponsor and
Lessee issue a Cancellation Notice, then
on the date of such expiration or
Cancellation Notice Sponsor shall pay in
cash the Standby Fee earned to date and
allocable to such Property.

 

 

	 	 	 
	Sponsor’s Right

to Issue

Cancellation
Notice
	 	Sponsor and Lessee may cancel this
Commitment Letter as it relates to any
Property(ies) (a “Cancellation Notice”).
If Sponsor and Lessee issue a
Cancellation Notice for any Property,
then neither CS nor Lessor shall have any
obligations regarding that Property.

	 
	 	 

	Costs and
Expenses
	 	Sponsor shall pay CS’s and Lessor’s
reasonable out of pocket costs in
evaluating (and, if applicable, closing)
the proposed Lease(s), including
reasonable accounting, appraisal,
auditing, consulting, due diligence,
engineering, environmental, legal, out of
pocket costs of establishing Lessor,
back-office administrative fees,
administration and loan fees and other
closing costs (but not interest) for any
financing Lessor obtains to fund this
transaction, independent director service
fees, and title fees, and costs of
travel, messengers, and other items,
including all other bona fide transaction
and due diligence costs incurred by CS,
but not CS’s staff time or internal
overhead (the “Costs and Expenses”).

	 
	 	 

	 	 	Sponsor has requested that CS and Lessor
seek to minimize the need to duplicate
any due diligence or other investigations
that Sponsor or its counsel or other
consultants (the “Due Diligence Team”)
have performed regarding the Properties
and this transaction (the “Sponsor Due
Diligence”). CS and Lessor shall
reasonably endeavor to comply with that
request, but only to the extent that the
Due Diligence Team shall have agreed in
writing (in a manner reasonably
satisfactory to CS) that CS and Lessor
shall have the same ability and legal
right as Sponsor to rely upon the Sponsor
Due Diligence. This does not limit CS
and Lessor’s right to perform such due
diligence as they require, or limit the
extent to which the resulting costs shall
constitute Costs and Expenses.

	 
	 	 

	Due Diligence
	 	Lessee and Sponsor consent that CS and
Lessor may perform or cause others to
perform background checks, credit checks,
and other investigations of Lessee and
Sponsor.

2

 

	 	 	 
	Indemnification
	 	Sponsor agrees (a) to indemnify and hold
harmless CS, Lessor, and each of their
officers, directors, employees, agents,
advisors, controlling persons, members
and successors and assigns (each, an
“Indemnified Person”) from and against
any and all losses, claims, damages,
liabilities and expenses, joint or
several, to which any such Indemnified
Person may become subject arising out of
or in connection with this Commitment
Letter, the Term Sheet, the Lease(s), or
any related transaction (including any
claims made by any broker or finder) or
any claim, litigation, investigation or
proceeding relating to any of the
foregoing, regardless of whether any such
Indemnified Person is a party thereto
(and regardless of whether such matter is
initiated by a third party), and to
reimburse each such Indemnified Person
upon demand for any reasonable legal or
other expenses incurred in connection
with investigating or defending any of
the foregoing, provided that the
foregoing indemnity will not, as to any
Indemnified Person, apply to losses,
claims, damages, liabilities or related
expenses to the extent they result from
the willful misconduct or gross
negligence of such Indemnified Person,
and (b) to reimburse CS and Lessor from
time to time, upon presentation of a
summary statement, for all reasonable
out-of-pocket expenses (including but not
limited to expenses of CS’s and Lessor’s
due diligence investigation, consultants’
fees, syndication expenses, travel
expenses and fees, disbursements and
other charges of counsel), but not CS’s
or Lessor’s staff time or internal
overhead, in each case, incurred in
connection with the preparation,
negotiation and enforcement of the
Lease(s), this Commitment Letter, the
Term Sheet, the definitive documentation
for the Lease(s) and any ancillary
documents or security arrangements in
connection therewith, including
arrangements for the establishment of
Lessor. Notwithstanding any other
provision of this Commitment Letter,
neither any Indemnified Person nor Lessee
nor Sponsor shall be liable for any
indirect, special, punitive or
consequential damages in connection with
its activities related to the Lease(s) or
this transaction.

	 
	 	 

	Information
	 	Sponsor represents and warrants (and it
shall be a condition to CS’s commitment
hereunder, including CS’s agreements to
cause Lessor to enter into the Lease(s))
that (a) all information except the
Projections (the “Information”) that has
been or will be made available to CS or
Lessor by or on behalf of Sponsor or any
of Sponsor’s representatives is or will
be, when furnished (to Sponsor’s
knowledge, in the case of any Information
about the Properties) complete and
correct in all material respects and does
not or will not, when furnished (to
Sponsor’s knowledge, in the case of any
Information about the Properties) contain
any untrue statement of a material fact
or omit to state a material fact
necessary in order to make the statements
contained therein not materially
misleading in light of the circumstances
under which such statements are made and
(b) any financial projections that have
been or will be made available to CS or
Lessor by or on behalf of Sponsor or any
of Sponsor’s representatives (the
“Projections”) have been or will be
prepared in good faith based upon
accounting principles consistent with the
historical audited financial statements
of Lessee and Sponsor and upon
assumptions that are reasonable at the
time made and at the time the related
projections are made available to CS and
Lessor.

	 
	 	 

3

 

	 	 	 
	 	 	Sponsor agrees that if at any time before
either Lease Closing Sponsor becomes
aware that any representation in the
preceding sentence would be incorrect if
the Information and Projections were
being furnished, and such representations
were being made, at such time, then
Sponsor will promptly supplement the
Information and Projections so that such
representations will be correct under
those circumstances. In arranging and
causing Lessor to close the Lease(s), CS
and Lessor will be entitled to use and
rely primarily on the Information and the
Projections without responsibility for
independent verification thereof.

	 
	Conditions
Precedent
	 	CS’s commitment hereunder, and CS’s
agreements to cause Lessor to enter into
the Lease(s), are subject to the
following conditions precedent, in
addition to those described in the Term
Sheet: (a) CS’s and Lessor’s completion
of, and satisfaction in all respects with
the results of, legal and environmental
due diligence investigation of the
Property, Lessee, and the Lease(s); (b)
CS’s and Lessor’s not having discovered
or otherwise become aware of any
information not previously disclosed that
they believe to be inconsistent in a
material and adverse manner with their
understanding, based on the information
provided prior to the date hereof, of the
business, assets, liabilities,
operations, condition (financial or
otherwise), operating results,
Projections or prospects of Lessee,
Sponsor, and their affiliates, taken as a
whole; (c) there not having occurred any
event, change or condition since March
31, 2006 (the date of the most recent
audited financial statements of Sponsor
delivered to CS as of the date hereof)
that, individually or in the aggregate,
has had, or could reasonably be expected
to have, a material adverse effect on the
business, assets, liabilities,
operations, condition (financial or
otherwise), operating results,
Projections or prospects of Sponsor and
its subsidiaries, including Lessee, taken
as a whole; (d) the negotiation,
execution and delivery of definitive
documentation with respect to the
Lease(s) reasonably satisfactory to CS,
Lessor, and their counsel; (e) Sponsor’s
compliance with the terms of this
Commitment Letter and the Term Sheet; and
(f) the other conditions set forth or
referred to in the Term Sheet.

	 
	 	 

	Confidentiality
	 	This Commitment Letter is delivered to
Sponsor on the understanding that neither
this Commitment Letter, nor any of its
terms or substance, nor the activities of
CS and Lessor pursuant hereto, shall be
disclosed, directly or indirectly, to any
other person except (a) to Sponsor’s
officers, directors, employees,
attorneys, accountants and advisors, or
those of Sponsor’s affiliates, on a
confidential and need-to-know basis or
(b) as required by applicable law or
compulsory legal process (in which case
you agree to inform us promptly thereof
prior to such disclosure); provided that
Sponsor may disclose this Commitment
Letter and the contents hereof to the
party selling the Property and its
officers, directors, employees,
attorneys, accountants, representatives
and advisors on a confidential and
need-to-know basis, and only after
redaction (in a manner satisfactory to
CS) of any information on the amount or
calculation of the Standby Fee.

4

 

	 	 	 
	Conflicting
Interests
	 	Sponsor acknowledges that CS may be
providing debt financing, equity capital
or other services (including financial
advisory services) to other companies in
respect of which Sponsor or its
affiliates may have conflicting interests
regarding the transactions described
herein or otherwise. Sponsor also
acknowledges that CS does not have any
obligation to use in connection with the
transactions contemplated by this
Commitment Letter, or to furnish to
Sponsor, confidential information
obtained by CS from other companies.

	 
	Survival
	 	The compensation, reimbursement,
indemnification, confidentiality,
jurisdiction, governing law and waiver of
jury trial provisions contained herein
shall remain in full force and effect
regardless of whether definitive Lease
documentation shall be executed and
delivered and notwithstanding the
termination of this Commitment Letter or
CS’s commitment hereunder, and CS’s
agreements to cause Lessor to enter into
the Lease(s) and perform CS’s services
described herein.

	 
	No Fiduciary

Relationship
	 	Sponsor further acknowledges and agrees
that (a) no fiduciary, advisory or agency
relationship between Sponsor and its
affiliates, on the one hand, and CS and
Lessor, on the other hand, is intended to
be or has been created in respect of any
of the transactions contemplated by this
Commitment Letter, irrespective of
whether CS has advised or is advising
Sponsor or its affiliates on other
matters; (b) CS, on the one hand, and
Sponsor and its affiliates, on the other
hand, have an arms-length business
relationship that does not directly or
indirectly give rise to, nor does Sponsor
or its affiliates rely on, any fiduciary
duty on the part of CS or Lessor; (c)
Sponsor and its affiliates are capable of
evaluating and understanding, and they
understand and accept, the terms, risks
and conditions of the transactions
contemplated by this Commitment Letter
and the Term Sheet; (d) Sponsor has been
advised that CS is engaged in a broad
range of transactions that may involve
interests that differ from Sponsor’s
interests and that CS has no obligation
to disclose such interests and
transactions to Sponsor by virtue of any
fiduciary, advisory, or agency
relationship; and (e) Sponsor and its
affiliates waive, to the fullest extent
permitted by law, any claims any of them
may have against CS and Lessor for breach
of fiduciary duty or alleged breach of
fiduciary duty and agree that CS and
Lessor shall have no liability (whether
direct or indirect) to Sponsor and its
affiliates in respect of such a fiduciary
duty claim or to any person asserting a
fiduciary duty claim on behalf of or in
right of Sponsor’s (or its affiliates’),
including Sponsor’s stockholders,
employees or creditors.

	 
	 	 

	Other Activities
	 	Sponsor and its affiliates further
acknowledge that CS is a full service
securities firm engaged in securities
trading and brokerage activities as well
as providing investment banking and other
financial services. In the ordinary
course of business, CS may provide
investment banking and other financial
services to, and/or acquire, hold or
sell, for its own accounts and the
accounts of customers, equity, debt and
other securities and financial
instruments (including bank loans and
other obligations) of Sponsor, its
affiliates and other companies with which
Sponsor may have commercial or other
relationships. With respect to any
securities and/or financial instruments
so held by CS or any of its customers,
all rights in respect of such securities
and financial instruments, including any
voting rights, will be exercised by the
holder of the rights, in its sole
discretion.

5

 

	 	 	 
	Assignment
	 	This Commitment Letter shall not be
assignable by Sponsor without the prior
written consent of CS (and any attempted
assignment without such consent shall be
null and void), is intended to be solely
for the benefit of the parties hereto
(and Indemnified Persons), and is not
intended to confer any benefits upon, or
create any rights in favor of, any person
other than the parties hereto (and
Indemnified Persons). Notwithstanding
the foregoing, Sponsor may assign this
Commitment Letter to any entity wholly
owned by Sponsor, provided that such
entity (a) is Lessee or holds all the
stock of Lessee; and (b) is reasonably
satisfactory to CS. Any such assignment
shall not limit Sponsor’s or Lessee’s
obligations under this Commitment Letter
or the Term Sheet. CS may assign its
commitment hereunder to one or more of
its affiliates, whereupon CS shall be
released from the portion of its
commitment hereunder so assigned. Any
and all obligations of, and services to
be provided by, CS hereunder (including,
without limitation, CS’s commitment to
cause Lessor to enter into the Lease(s))
may be performed and any and all rights
of CS hereunder may be exercised by or
through any of its respective affiliates
or branches.

	 
	 	 

	Miscellaneous
	 	This Commitment Letter may not be amended
or any provision hereof waived or
modified except by an instrument in
writing signed by CS and Sponsor. This
Commitment Letter may be executed in any
number of counterparts, each of which
shall be an original and all of which,
when taken together, shall constitute one
agreement. Delivery of an executed
counterpart of a signature page of this
Commitment Letter by facsimile
transmission shall be effective as
delivery of a manually executed
counterpart hereof. Paragraph headings
used herein are for convenience of
reference only, are not part of this
Commitment Letter and are not to affect
the construction of, or to be taken into
consideration in interpreting, this
Commitment Letter.

	 
	 	 

	 	 	Both parties acknowledge that information
and documents relating to this
transaction and the Lease(s) may be
transmitted through SyndTrak, Intralinks,
the internet, e-mail, or similar
electronic transmission systems, and that
neither party shall be liable for any
damages arising from the unauthorized use
by others of information or documents
transmitted in such manner.
Notwithstanding anything in this
Commitment Letter or the Term Sheet to
the contrary, CS may place advertisements
in financial and other newspapers and
periodicals or on a home page or similar
place for dissemination of information on
the Internet or worldwide web as it may
choose, and circulate similar promotional
materials, after the closing of the
transactions in the form of a “tombstone”
or otherwise describing the names of
Sponsor and its affiliates (or any of
them), and the amount, type and closing
date(s) of the Lease(s), all at CS’s
expense.

	 
	 	 

	 	 	This Commitment Letter and the Term Sheet
supersede all prior understandings,
whether written or oral, between us with
respect to the Lease(s) or CS’s or
Lessor’s obligations relating to or
arising from the Lease(s). This
Commitment Letter shall be governed by,
and construed in accordance with, the
laws of the State of New York.

6

 

	 	 	 
	Jurisdiction
	 	Each of the parties hereto hereby
irrevocably and unconditionally (a)
submits, for itself and its property, to
the exclusive jurisdiction of any New
York State court or Federal court of the
United States of America sitting in New
York City, and any appellate court from
any thereof, in any action or proceeding
arising out of or relating to this
Commitment Letter, or the transactions
contemplated by this Commitment Letter or
the Term Sheet, and agrees that all
claims in respect of any such action or
proceeding may be heard and determined
only in such New York State court or, to
the extent permitted by law, in such
Federal court, (b) waives, to the fullest
extent it may legally and effectively do
so, any objection which it may now or
hereafter have to the laying of venue of
any suit, action or proceeding arising
out of or relating to this Commitment
Letter or the transactions contemplated
hereby in any New York State court or in
any such Federal court, (c) waives, to
the fullest extent permitted by law, the
defense of an inconvenient forum to the
maintenance of such action or proceeding
in any such court, and (d) agrees that a
final judgment in any such action or
proceeding shall be conclusive and may be
enforced in other jurisdictions by suit
on the judgment or in any other manner
provided by law.

	 
	 	 

	Jury Trial
Waiver
	 	Each of the parties hereto irrevocably
waives the right to trial by jury in any
action, proceeding, claim or counterclaim
brought by or on behalf of any party
related to or arising out of this
Commitment Letter, the lease(s), or the
performance of services hereunder or
thereunder.

	 
	 	 

	USA PATRIOT
Act
	 	To help fight terrorism funding and money
laundering activities, CS obtains,
verifies, and records information that
identifies each person with whom CS
enters (or may enter) into a business
relationship. Verification may include
name, address, corporate tax
identification number, date of birth (if
an individual), and other information to
allow CS to identify Lessee and Sponsor.
CS may also ask to see corporate or
limited liability company resolutions or
other identifying documents.

	 
	 	 

	Exclusivity
	 	Until either a Closing with respect to a
Property occurs or CS advises Sponsor in
writing that the conditions precedent to
such Closing have not been timely met,
Lessee, Sponsor and their related parties
shall deal exclusively with CS regarding
(and shall not seek or obtain from anyone
else) any financing or capital lease
arrangements for the acquisition of such
Property described in the Term Sheet.

No Further Text on This Page.

7

 

     If the foregoing correctly sets forth our agreement with you, please indicate your acceptance
of the terms of this Commitment Letter by returning to us executed counterparts hereof not later
than 5:00 p.m., New York City time, on the Effective Date. CS’s offer hereunder, and our
agreements to perform the services described herein, will expire automatically and without further
action or notice and without further obligation to you at such time in the event that CS has not
received such executed counterparts in accordance with the immediately preceding sentence. This
Commitment Letter will become a binding commitment on CS only after it has been duly executed and
delivered by you in accordance with the first sentence of this paragraph. To the extent that any
Property has not been acquired and demised to Lessee under a Lease before the Outside Closing Date,
this Commitment Letter and CS’s commitment hereunder, and CS’s agreements to perform the services
described herein, shall automatically terminate without further action or notice and without
further obligation to Sponsor unless CS shall, in its discretion, agree in writing to an extension.

     We look forward to working with you on this matter.

	 	 	 	 	 
	 	Very truly yours,

CREDIT SUISSE SECURITIES (USA) LLC

 	 
	 	By:  	/s/ Robert Nydegger
 	 
	 	 	Name:  	Robert Nydegger 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                    /s/ Damien Dwin
 	 
	 	 	Name:  	Damien Dwin 	 
	 	 	Title:  	Director 	 
	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH

 	 
	 	By:  	/s/ Robert Nydegger
 	 
	 	 	Name:  	Robert Nydegger 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                    /s/ Damien Dwin
 	 
	 	 	Name:  	Damien Dwin 	 
	 	 	Title:  	Director 	 

8

 

	 	 	 	 	 

     Confirmed and agreed to.

	 	 	 	 	 
	 	SPONSOR

TERREMARK WORLDWIDE, INC.

 	 
	 	By:  	/s/ Jose Segrera
 	 
	 	 	Its:  Chief Financial Officer 	 
	 	 	 	 
	 

Date: Effective Date

Attachment: Term Sheet

9

 

TERM SHEET

	 	 	 
	Lessee

	 	A to-be-named wholly owned direct or indirect subsidiary of
Sponsor, which shall be a newly formed single-purpose entity
subject to SPE covenants satisfactory to CS. Lessee shall at
all times be 100% owned, directly or indirectly, by Sponsor.
	 
	 	 
	Property

	 	Each of the following:

	 	•	 	The real property identified as Property 1 in the
documentation for the Notes (Allocated Purchase Price:
$4,366,300); and
	 
	 	•	 	The real property identified as Property 2 in the
documentation for the Notes (Allocated Purchase Price, net of
any contribution from other sources: $9,250,000).

	 	 	 
	Lessor

	 	Single-purpose entity(ies) to be designated and structured (but
not necessarily owned) by CS.
	 
	 	 
	Nature of Transaction

	 	Subject to satisfaction of the conditions precedent and other
requirements of this Term Sheet and the Commitment Letter to
which it is annexed, Lessor shall acquire each Property when and
as Lessee or Sponsor would otherwise close such acquisition
under its contracts (each, a “Contract”) with the sellers of
each Property (each, a “Seller”). Sponsor may direct Lessor to
close under either Contract or both Contracts at Sponsor’s
election. If Sponsor elects to require Lessor to close under
both Contracts, then such closings need not, but may, be
simultaneous. Sponsor and Lessee may modify any Contract
provided they act in good faith and promptly give CS a copy of
the modification. Any such modification shall not increase or
extend Lessor’s funding obligations.

	 
	 	 
	

	 	
Simultaneously with each such acquisition, CS shall cause Lessor
to lease each Property to Lessee on the terms described in this
Term Sheet. The Properties shall be leased under a single lease
or, at Sponsor’s option, each Property shall be leased under a
separate Lease. At Sponsor’s option, Lessor may acquire one
Property without acquiring both Properties.
	 
	 	 
	Lessor’s Investment

	 	For each Property, considered separately, Lessor’s aggregate
investment (the “Lessor’s Investment”) shall equal the sum of
all items listed below as in effect from time to time. The
aggregate Lessor’s Investment for both Properties to be funded
in cash at Closing(s) (i.e., before taking into account accrued
Standby Fees or future PIK Rent Payments) shall never exceed
$13,250,000 in aggregate.

	 	•	 	The Allocated Purchase Price plus or minus closing
adjustments under the Contract;
	 
	 	•	 	Sponsor’s and Lessee’s bona fide third party transaction
costs reasonably approved by CS (including title, escrow and
survey fees, Lessee’s transfer taxes, consultants’ fees,
reasonable attorneys’ fees for the Closing, and the like);

10

 

	 	•	 	Sponsor’s and Lessee’s predevelopment costs reasonably
approved by CS;
	 
	 	•	 	The aggregate amount of all PIK Rent Payments;
	 
	 	•	 	Accrued Standby Fees for periods before Closing; and
	 
	 	•	 	CS’s and Lessor’s Costs and Expenses.

	 	 	 
	 

	 	No portion of Lessor’s Investment shall be paid directly to
Lessee or Sponsor, except as expressly contemplated above in the
definition of Lessor’s Investment.
	 
	 	 
	Closing

	 	Each Lease transaction will close (a “Closing”) on a date
coinciding with the closing under the respective Contract for
the Property to be demised under such Lease. If (at Sponsor’s
election) both Contracts close simultaneously, then only a
single Closing shall occur, but each Property may (at Sponsor’s
election) be demised under a separate Lease.
	 
	 	 
	Outside Closing Date

	 	For each Property, the Commitment Letter, CS’s obligations
thereunder and this Term Sheet shall irrevocably expire and
terminate on the date (the “Outside Closing Date”) that is the
earliest of the following:

	 	•	 	Expiration of the Contract for that Property (after
taking into account any extensions of the closing date under
such Contract);
	 
	 	•	 	Sponsor’s and Lessee’s issuance of a Cancellation Notice
for that Property; and
	 
	 	•	 	December 31, 2007.

	 	 	 
	Lease Term

	 	The Lease(s) will expire on the earliest of the following:

	 	•	 	June 30, 2009;
	 
	 	•	 	The maturity date, occurrence of a payment default, or
acceleration, under the Loan Facility and Convertible Debt
(together, the “Notes”) to be provided by CS under the Purchase
Agreement among Terremark Worldwide, Inc., the Guarantors
thereunder, Credit Suisse, Cayman Islands Branch, as Agent, and
the Purchasers thereunder, dated the Effective Date; and
	 
	 	•	 	The date of any default under either Lease (or under any
financing secured by a mortgage encumbering the Lease) beyond
applicable cure periods if such default results in a termination
or acceleration of the other Lease or financing in question,
unless Lessor elects otherwise in writing.

11

 

	 	 	 
	Rent

	 	Lessee shall pay rent under each Lease (the “Rent”), without
offset or deduction, in an annual amount (payable only as
described in the next paragraph) equal to the product of: (a)
the Money Rate; times (b) Lessor’s Investment from time to time.
If Sponsor elects to use a separate Lease for each Property,
then Lessor’s Investment shall be calculated separately for each
Property; otherwise Lessor’s Investment shall be calculated on a
combined basis. “Money Rate” shall mean the sum of: (a)
three-month LIBOR, as in effect for consecutive three-month
periods starting at the Closing; plus (b) 5.50% (550 basis
points) per annum; plus (c) starting on January 1, 2009, an
additional 1.00% (100 basis points) per annum. Rent shall be
calculated on an actual/360 basis.
	 
	 	 
	 

	 	Lessee need not pay Rent in cash during the Lease term.
Instead, at Lessee’s option, each quarter’s Rent may, on the
first day of such quarter, be added to and become part of
Lessor’s Investment (a “PIK Rent Payment”). Future Rent shall
increase accordingly, taking into account that increase in
Lessor’s Investment. Lessee may pay Rent under any Lease in
cash if it wishes to do so.
	 
	 	 
	Lease Obligations

	 	Each Lease shall be an “absolutely triple net,” “hell or high
water,” “bondable” type of Lease, under which Lessee shall bear
absolutely all rights, obligations, and expenses related to the
Property; CS and Lessor shall have absolutely no obligations or
liabilities of any kind (except Lessor’s obligation to deliver a
quitclaim deed in connection with a Buyout for which Lessee has
timely satisfied all conditions under the Lease, and any other
covenants expressly set forth in the Lease, including a covenant
not to encumber the Properties); and the Rent shall be
absolutely free and clear of any and all costs related to the
Property.
	 
	 	 
	Expiration Date

Obligations; Buyout

	 	Provided Lessee has not theretofore exercised its Early Buyout
Option (defined below), starting at least three months before
the expiration date of each Lease, Lessee shall undertake a
diligent marketing program for the Property demised under that
Lease and seek to arrange a sale of such Property at the best
possible price, with a closing to occur simultaneously with the
expiration date of such Lease. If such program is unsuccessful,
or if the sales price of the Property is less than Lessor’s
Investment, then on the expiration date of such Lease (including
an expiration date arising from early termination of such Lease)
the following shall occur as to the Property demised under such
Lease (a “Buyout”):

	 	•	 	If such Property is sold to a third party, Lessee shall
pay Lessor, as additional rent, an amount equal to Lessor’s
Investment less the sales price of the Property;
	 
	 	•	 	If such Property is not sold to a third party, Lessee
shall purchase such Property from Lessor for an amount equal to
Lessor’s Investment;

12

 

	 	•	 	Lessee and Sponsor shall pay Lessor all unpaid sums
(including accrued but unpaid Rent) then due under such Lease;
	 
	 	•	 	Provided that Lessee has paid and performed all its
obligations in connection with the Buyout when and as the Lease
requires by its express terms, Lessor shall convey the Property
by quitclaim deed, to Lessee or Lessee’s designee, entirely at
Lessee’s cost and expense (including payment of any applicable
transfer taxes), subject to no liens or encumbrances created by
Lessor;
	 
	 	•	 	If Lessee does not timely perform its Buyout obligations
for a Property, then Lessee’s Buyout rights shall terminate, and
Lessor shall have the unrestricted right to sell such Property
to a third party, in full or partial satisfaction of Lessee’s
obligations under the Lease, and Lessee (and Sponsor under its
guaranty) shall continue to be liable for an amount (the “Net
Payment”) equal to the difference between the actual net sales
proceeds, if any, of such Property (the “Proceeds”) and Lessor’s
Investment for such Property, and all other sums due under the
Lease (collectively, “Leasehold Obligations”); and Lessee shall
be entitled to receive any Proceeds that exceed the Leasehold
Obligations;
	 
	 	•	 	If Lessor has not actually sold the Property when Lessor
demands the Net Payment, then Lessor shall reasonably determine
the fair market value of the Property based on a third party
appraisal and recalculate the Net Payment to give Lessee and
Sponsor credit for the Proceeds Lessor would have realized if
Lessor had sold the Property for such fair market value; and
	 
	 	•	 	Sponsor’s guaranty shall extend to Lessee’s obligations
upon any Buyout.

	 	 	 
	 

	 	If there exists more than one Lease, then Lessee and Lessor
shall consummate any Buyout simultaneously for each and every
Property, and not for one Property only (except in the case of a
Buyout for a single Property initiated by Lessee).
	 
	 	 
	 

	 	The total amount payable by Lessee upon a Buyout is referred to
as the “Buyout Payment.”
	 
	 	 
	Early Buyout

	 	If any Lease terminates before its scheduled expiration date for
any reason (including Lessee’s default beyond applicable cure
periods or the occurrence of any casualty or condemnation for
which Lessee does not with reasonable promptness satisfy
ordinary and customary restoration conditions), then at Lessee’s
or Lessor’s option a Buyout shall occur under such Lease
effective 20 days after the giving of notice to such effect.
	 
	 	 
	 

	 	In addition, Lessee may elect at any time, on 20 days written
notice, to consummate a Buyout under any Lease(s) as Lessee
designates.

13

 

	 	 	 
	General Covenants,

Representations,

Warranties, and

Events of Default

	 	Substantially equivalent to those contained in Sponsor’s
existing second-lien term loan facility, subject to such
exceptions and modifications as CS (or Lessor) and Sponsor shall
agree.
	 
	 	 
	Lease Covenants,

Representations,

Warranties, and

Events of Default

	 	In addition, the Lease documents shall contain Lease-specific
covenants, representations, warranties, and Events of Default as
CS or Lessor requires. These will include at least the
following provisions:

	 	•	 	Property Costs. Lessee shall pay all real estate taxes,
operating expenses, insurance premiums, construction costs,
maintenance and repair costs, utilities, and all other
Property-related costs of any kind or character whatsoever.
Lessee shall give CS and Lessor such evidence of payment of such
costs as CS and Lessor reasonably require from time to time.
	 
	 	•	 	Legal Compliance. Lessee shall be solely responsible
for legal compliance, even if applicable laws require “capital”
or “structural” improvements or repairs to the Property.
	 
	 	•	 	Easement Grants. Lessor shall cooperate with Lessee in
granting ordinary and customary easements and other
development-related rights (collectively, the “Easements”),
provided that: (a) the Easements are on reasonable and customary
terms; (b) Lessee gives Lessor reasonable prior notice of any
Easement; and (c) Lessee gives CS and Lessor a certificate
executed by an officer of Lessee stating that the granting of
such Easement will not impair the fair market value of the
Property in any material respect.
	 
	 	•	 	Trade Fixtures. Lessee’s trade fixtures (including
fixtures, machinery and equipment) remain Lessee’s property.
Lessee may remove them from the Property at any time during the
Lease term, provided that Lessee repairs any damage to the
Property resulting from such removal.
	 
	 	•	 	Alterations. Lessee may perform the following
(“Approved Construction”), in compliance with law: (i)
non-structural alterations, modifications or improvements,
without any notice to or consent of Lessor, (ii) any structural
alteration, modification or improvement, without Lessor’s
consent, provided that Lessee gives CS and Lessor a certificate
from a structural engineer and a certificate of an officer of
Lessee stating that the proposed changes will not adversely
affect the structural integrity of the Property or impair the
revenue production potential (in Sponsor’s business) of the
Property in any material respect; and (iii) certain specified
construction work (to be pre-approved in the Lease) enabling
Lessee and Sponsor to use the Property in Sponsor’s business.

14

 

	 	•	 	Ownership. Lessee shall own (and be entitled to
depreciation on) any improvements it constructs, but such
improvements shall revert to Lessor if the Lease terminates and
Lessee does not acquire the Property through a Buyout. Lessee
shall not damage or destroy any improvements.
	 
	 	•	 	Lessee’s Assignment and Subletting. Lessee may not
sublease or assign except as this paragraph allows. Lessee may
collaterally assign a Lease solely to secure the Notes and
Sponsor’s obligations to any creditor that the Notes allow to
hold a lien senior to the lien securing the Notes (the “Approved
Leasehold Financing”). Any Approved Leasehold Financing shall
attach solely to the leasehold under the Lease and not to
Lessor’s fee estate (and hence shall be subordinate to Lessor’s
estate). Lessor shall have no obligation to “subordinate the
fee” or join in any Approved Leasehold Financing. Lessee may
sublease to any entity that is directly or indirectly wholly
owned by Sponsor (as necessary or appropriate for the operation
of Sponsor’s business), or in connection with any merger,
acquisition, or consolidation of Sponsor or the acquisition of
all or substantially all of the assets of Sponsor. Lessee may
without Lessor’s consent sublease or license any part(s) or all
of any Property on arm’s length terms in the ordinary course of
Lessee’s and Sponsor’s business operations.
	 
	 	•	 	Mortgagee Protections. Any party providing Approved
Leasehold Financing (an “Approved Leasehold Mortgagee”) shall
have the rights, subject to the terms of the Approved Leasehold
Financing, to: (a) cure Lessee’s defaults under the Lease
(within an additional cure period of up to 30 days); (b) after
an Event of Default under, and foreclosure of, the Approved
Leasehold Financing, elect to exercise Lessee’s Buyout rights,
provided that such Approved Leasehold Mortgagee also timely
performs Lessee’s Buyout obligations (without prejudice to its
rights against Lessee); (c) consent to any amendment of the
economic terms of the Lease; (d) receive an assignment of the
Lease without Lessor’s consent (but this may at Lessor’s option
trigger a Buyout); and (e) obtain a new lease if the Lease
terminates because Lessor exercises its remedies under the Lease
after Lessee’s default, provided that within 30 days after such
termination (and as a condition to receiving a new lease) the
Approved Leasehold Mortgagee pays Lessor the Buyout Payment.
Any foreclosure under Approved Leasehold Financing shall
terminate only Lessee’s estate and shall have no effect on
Lessor’s fee estate or right to receive any payments under the
Lease.
	 
	 	•	 	Lessor’s Assignment. Lessor may assign (or grant
participations in) its interest in the Property(ies) and the
Lease. Lessee will at Lessee’s expense (including its
attorneys’ fees) provide such cooperation as Lessor reasonably
requests to facilitate the foregoing.

15

 

	 	•	 	Operation and Use. Lessee will develop the Property as
a “web hotel” and collocation facility for Internet services and
connections. Any changes in or suspension of use will be
permitted provided it causes no material adverse impact on the
value of the Property.
	 
	 	•	 	Repairs. Lessee will be responsible for all structural
and nonstructural repairs and maintenance to the Property,
including without limitation all capital repairs, such that
Lessor will retain no repair, maintenance, or other operating
expenses or performance obligations of any kind or nature for
the Property.
	 
	 	•	 	No Lessor Liability. Neither CS nor Lessor shall have
any liability whatsoever for any matter relating to the
Property. Neither CS nor Lessor shall make any representations
whatsoever. Lessee and Sponsor shall indemnify CS and Lessor
against all costs, risks, burdens, claims, and obligations
relating to or arising from the Property, save only for those
arising out of CS or Lessor’s own gross negligence, wrongful
acts or material breach of its specific and express obligations
under the Lease.
	 
	 	•	 	Insurance. As CS or Lessor requires, consistent with
similar transactions, provided however that CS and Lessor shall
have absolutely no obligation or liability for payment of any
premiums. Lessor shall be named as a loss payee under any
property insurance covering the Properties.
	 
	 	•	 	Loss Proceeds. Fee mortgagees and permitted leasehold
mortgagees may participate in adjustment or settlement of any
insurance proceeds or condemnation award (“Loss Proceeds”). If
Lessee elects a Buyout upon any casualty or condemnation (or if
Lessee fails to satisfy ordinary and typical restoration
conditions with reasonable promptness, and Lessor thereupon
elects a Buyout), then Loss Proceeds (except any attributable to
Approved Construction) up to the Buyout Payment shall go to
Lessor, with credit against the Buyout Payment. Pending
restoration or Buyout, a creditworthy depository (which may be
the fee mortgagee, if an institutional lender) shall hold Loss
Proceeds, applying them first to pay current monetary
obligations under the Lease (other than accrued and unpaid PIK
Rent), second to restore and fully pay for restoration (under
ordinary and customary restoration and disbursement procedures)
or toward the Buyout payment (if a Buyout occurs), and third to
release any balance to Lessee or its leasehold mortgagee.
	 
	 	•	 	Fee Mortgages. If Lessor grants a mortgage on its fee
estate, then such mortgage shall be junior and subordinate to
the Lease, including Lessee’s rights under any Buyout. Fee
mortgagees shall have cure rights and other ordinary mortgagee
protections.

16

 

	 	•	 	Environmental. Lessee shall bear, and shall indemnify
the Indemnified Persons from and against, any and all
environmental risks related to the Property, including
pre-existing environmental conditions, conditions on adjacent
property affecting any Property, and conditions caused by third
parties.
	 
	 	•	 	Transaction Taxes. Lessee shall pay all transfer,
stamp, conveyancing, leasehold, personal property, sales, and
other taxes imposed on the creation of each Lease and the
consummation of any Buyout.

	 	 	 
	Guaranty

	 	Sponsor shall fully guaranty all payment and performance
obligations of Lessee under each Lease, under a form of guaranty
satisfactory to CS and Lessor.
	 
	 	 
	Transfers

	 	The Lease Documents shall prohibit any transfer (or encumbrance)
of Lessee’s interest in the Property or of interests in Lessee,
without CS’s and Lessor’s approval in their sole and absolute
discretion, except as expressly permitted above.
	 
	 	 
	Indebtedness

	 	The Lease Documents shall prohibit Lessee from incurring any
indebtedness whatsoever except accrued but unpaid Rent; current
liabilities for expenditures for operation and maintenance of
the demised Property that the Lease requires Lessee to pay or
incur; and contracts and other obligations arising from Approved
Construction affecting the demised Property. This restriction
shall not apply to existing indebtedness of Lessee as of the
date of this Commitment or to the Convertible Debt and Debt
Transactions being entered into contemporaneously with this
Commitment.
	 
	 	 
	Regulatory Change;

Withholding, Illegality

	 	The Lease Documents shall contain customary provisions on
increased costs, capital adequacy protection, withholding and
other taxes, unavailability of LIBOR, and illegality.
	 
	 	 
	Conditions Precedent

	 	As customary for a transaction of this nature, including CS’s
receipt of the following (the “Closing Deliveries”), all of
which shall be satisfactory to CS, and Sponsor’s satisfaction of
the following additional conditions:

	 	•	 	Completion and execution of Lease documents by Sponsor,
Lessee, Lessor, and other parties as necessary in form and
substance satisfactory to CS and Lessor and their counsel (the
“Lease Documents”);
	 
	 	•	 	The full and simultaneous funding from sources other
than CS and its affiliates of the entire purchase price and
closing costs for Lessor’s acquisition of each Property, to the
extent that such purchase price and closing costs exceed
Lessor’s Investment applied for such purpose;

17

 

	 	•	 	Other conditions precedent as stated in the Commitment
Letter to which this Term Sheet is annexed;
	 
	 	•	 	The Notes shall remain outstanding and not be in default
in any way;
	 
	 	•	 	In the case of the second Closing, if any, the Lease
shall be in full force and effect and not in default as to the
Property already demised, and such Lease shall not have expired
or terminated;
	 
	 	•	 	Lessee’s organizational documents;
	 
	 	•	 	Evidence that the Property is assessed separate and
apart from any other property for local property tax purposes
and a tax bill or tax search clearly identifying the property
taxes for the Property;
	 
	 	•	 	Payment of Lessor’s and CS’s Costs and Expenses (to be
funded at Closing from additional Lessor’s Investment, subject
to the dollar limitation on Lessor’s Investment as stated in
this Term Sheet);
	 
	 	•	 	Identification, background information, and documents
necessary for CS to comply with the USA PATRIOT Act;
	 
	 	•	 	Insurance coverage and certificates;
	 
	 	•	 	On-site Property inspection by CS;
	 
	 	•	 	Opinions of counsel as CS’s counsel requires;
	 
	 	•	 	Phase I environmental report and Phase II, if indicated
(including asbestos and mold);
	 
	 	•	 	PZR zoning report;
	 
	 	•	 	Seismic report (if applicable), including calculation of
probable maximum loss;
	 
	 	•	 	Survey, no more than 60 days old, certified to “Credit
Suisse and its affiliates, successors and assigns”;
	 
	 	•	 	Title insurance policy from Chicago, Fidelity, First
American, LandAmerica, or Stewart (or another company CS
approves);
	 
	 	•	 	UCC, judgments, litigation, bankruptcy, real estate tax,
and other searches as CS requires; and
	 
	 	•	 	Such other closing deliveries and documents as CS,
Lessor, and their counsel reasonably require.

18

 

	 	 	 
	CS’s Counsel

	 	Latham & Watkins LLP

885 Third Avenue, Suite 1000

New York, New York 10022-4802

Attention: Joshua Stein, Esq.
	 
	 	 
	Governing Law

	 	New York

19

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