Document:

Exhibit 10.2

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Agreement”) is entered into as of August 7, 2015 (the “First Amendment Effective Date”) among BOINGO WIRELESS, INC., a Delaware corporation (the “Company”), New York Telecom Partners, LLC, a Delaware limited liability company (“NY Telecom” and together with the Company, each a “Borrower” and collectively, the “Borrowers”), the Guarantors, the Lenders party hereto and BANK OF AMERICA, N.A., as Administrative Agent.  All capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Credit Agreement (as defined below).

 

RECITALS

 

WHEREAS, the parties have entered into that certain Credit Agreement dated as of November 21, 2014 among the Borrowers, the Guarantors from time to time party thereto, the Lenders from time to time party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and an L/C Issuer (as amended or modified from time to time, the “Credit Agreement”); and

 

WHEREAS, the Borrowers have requested that the Lenders amend the Credit Agreement as set forth below.

 

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

 

1.                                      Amendments.

 

(a)                                 The first sentence in the definition of “Base Rate” in Section 1.01 of the Credit Agreement is hereby amended to read as follows:

 

“Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 0.50%, (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate” and (c) the Eurodollar Rate plus 1.00%; and if Base Rate shall be less than zero, such rate shall be deemed zero for purposes of this Agreement.

 

(b)                                 Clause (b) of the definition of “Change of Control” in Section 1.01 of the Credit Agreement is hereby amended to read as follows:

 

(b)                                 during any period of 12 consecutive months, a majority of the members of the board of directors or other equivalent governing body of the Company cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body; or

 

 

(c)                                  Effective solely from the First Amendment Effective Date to and including September 30, 2015, the definition of “Letter of Credit Sublimit” in Section 1.01 of the Credit Agreement is hereby amended to read as follows:

 

“Letter of Credit Sublimit” means an amount equal to the lesser of (a) the Revolving Borrowing Limit and (b) $15,000,000.  The Letter of Credit Sublimit is part of, and not in addition to, the Aggregate Revolving Commitments.

 

(d)                                 Effective solely from the First Amendment Effective Date to and including September 30, 2015, the definition of “Liquidity” in Section 1.01 of the Credit Agreement is hereby amended to read as follows:

 

“Liquidity” means, as of any date of determination, an amount equal to (a) unrestricted cash and Cash Equivalents of the Loan Parties at such date that would be set forth on a consolidating balance sheet of the Company and its Subsidiaries for such date plus (b) availability under the Revolving Borrowing Limit as of such date, solely to the extent that if such availability was to be drawn by the Company at such time, the Loan Parties, upon giving effect to the incurrence of such Indebtedness on a Pro Forma Basis, would be in compliance with the financial covenant set forth in Section 8.11(a) as of the most recent fiscal quarter for which the Borrower was required to deliver financial statements pursuant to Section 7.01(a) or (b), as certified to the Administrative Agent by the Company in a certificate in form and substance reasonably satisfactory to the Administrative Agent.

 

(e)                                  Effective solely from the First Amendment Effective Date to and including September 30, 2015, the definition of “Swing Line Sublimit” in Section 1.01 of the Credit Agreement is hereby amended to read as follows:

 

“Swing Line Sublimit” means an amount equal to the lesser of (a) the Revolving Borrowing Limit and (b) $5,000,000.  The Swing Line Sublimit is part of, and not in addition to, the Aggregate Revolving Commitments.

 

(f)                                   Effective solely from the First Amendment Effective Date to and including September 30, 2015, the following definitions are hereby added to Section 1.01 of the Credit Agreement in appropriate alphabetical order to read as follows:

 

“Account Debtor” means any Person who is or who may become obligated to the Company or any of its Subsidiaries under or on account of an Account.

 

“Accounts” means all “accounts” (as defined in the UCC) of the Company or any of its Subsidiaries, including without limitation all present or future accounts receivable, all rights to payment for goods sold or leased or to be sold or leased or for services rendered or to be rendered, whether or not earned by performance, all rights in any merchandise or goods which any of the same may represent, all notes receivable, book debts, notes, bills, drafts, acceptances, choses in action, contract rights, instruments and documents and all sums of money due or to become due thereon and all proceeds thereof and all rights, title, security interests and guarantees with respect to each of the foregoing.

 

“AT&T” means AT&T Inc.

 

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“Borrowing Base” means, as of any date of determination, an amount equal to the total of (a) the sum of: (i) 80% of the amount of Eligible Major Carrier Current Accounts Receivable, plus (ii) 60% of Eligible Major Carrier Non-Current Accounts Receivable plus (iii) 80% of Eligible Non-Major Carrier Accounts Receivable minus (b) the Outstanding Amount of the Term Loan as of such date.

 

“Borrowing Base Certificate” means a certificate, substantially in the form of Exhibit M, properly completed and signed by a Responsible Officer of the Company.

 

“Eligible Accounts Receivable” means trade Accounts created in the ordinary course of the Company’s business, upon which the Company’s or the applicable Subsidiary’s right to receive payment is absolute and not contingent upon the fulfillment of any condition whatsoever, and in which the Administrative Agent has a perfected security interest of first priority, and shall not include: (i) any Account that has been outstanding more than (x) with respect to any Account where the Account Debtor is a Major Carrier, one hundred eighty (180) days from the date of the invoice and (y) with respect to any Account where the Account Debtor is not a Major Carrier, one hundred twenty (120) days from the date of the invoice; (ii) that portion of any Account for which there exists any contra-receivable, right of setoff, defense or discount (except regular discounts allowed in the ordinary course of business to promote prompt payment) or for which any defense or counterclaim has been asserted; (iii) any Account which represents an obligation of any state or municipal government or of the United States government or any political subdivision thereof (except Accounts which represent obligations of the United States government and for which the assignment provisions of the Federal Assignment of Claims Act, as amended or recodified from time to time, have been complied with to the Administrative Agent’s satisfaction); (iv) any Account which represents an obligation of an Account Debtor located in a foreign country; (v) any Account which represents an obligation of any Account Debtor when twenty percent (20%) or more of the Company and its Subsidiaries’ Accounts from such Account Debtor are not eligible pursuant to clause (i) above; (vi) that portion of any Account from an Account Debtor (other than a Major Carrier) which represents the amount by which the Company and its Subsidiaries’ total Accounts from such Account Debtor exceeds twenty percent (20%) of the Company and its Subsidiaries’ total Accounts; (vii) that portion of any Account to which T-Mobile is the Account Debtor which represents the amount by which the Company and its Subsidiaries total Accounts as to which T-Mobile is the Account Debtor exceeds thirty percent (30%) of the Company and its Subsidiaries’ total Accounts; and (viii) that portion of any Account to which Sprint is the Account Debtor which represents the amount by which the Company and its Subsidiaries’ total Accounts to which Sprint is the Account Debtor exceeds thirty percent (30%) of the Company and its Subsidiaries’ total Accounts.

 

“Eligible Major Carrier Current Accounts Receivable” means, at any date of determination thereof, subject to modification by the Administrative Agent pursuant to Section 1.08, the face value of each Eligible Accounts Receivable which (a) has been outstanding one hundred twenty (120) days or fewer from the date of the invoice and (b) where the Account Debtor is a Major Carrier.

 

“Eligible Major Carrier Non-Current Accounts Receivable” means, at any date of determination thereof, subject to modification by the Administrative Agent pursuant to Section 1.08, the face value of each Account which would be an Eligible Major Carrier Current Accounts Receivable, but for the fact such Account has been outstanding more than

 

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one hundred twenty (120) days from the date of the invoice so long as such Account has been outstanding one hundred eighty (180) days or fewer from the date of the invoice.

 

“Eligible Non-Major Carrier Accounts Receivable” means, at any date of determination thereof, subject to modification by the Administrative Agent pursuant to Section 1.08, the face value of each Eligible Accounts Receivable where the Account Debtor is not a Major Carrier.

 

“Major Carriers” means AT&T, Verizon, T-Mobile and Sprint.

 

“Revolving Borrowing Limit” means, as of any date of determination, the lesser of (a) the Aggregate Revolving Commitments and (b) the Borrowing Base.

 

“Sprint” means Sprint Corporation and its wholly-owned subsidiary, Nextel Communications, Inc.

 

“T-Mobile” means T-Mobile US, Inc.

 

“Verizon” means Verizon Communications Inc.

 

(g)                                  Effective solely from the First Amendment Effective Date to and including September 30, 2015, a new Section 1.08 is hereby added to the Credit Agreement to read as follows:

 

1.08                        Borrowing Base.

 

The Borrowing Base shall be determined and computed to avoid duplication or multiple inclusion of any item of Collateral.  The Administrative Agent may make such adjustments or corrections to any Borrowing Base Certificate as the Administrative Agent may determine in good faith is necessary or appropriate to determine and compute the Borrowing Base in accordance with the intent of this Agreement, and any such determination will be binding on the Loan Parties.  Furthermore, the Administrative Agent may exclude from the Borrowing Base, or require the Company or the applicable Subsidiary to establish reserves with respect to, Accounts that the Administrative Agent has determined, in good faith in its reasonable discretion in accordance with its internal credit policies that (a) collection of the Account is insecure or (b) the Account is not likely to be paid by reason of the Account Debtor’s financial inability to pay.  The Administrative Agent shall give the applicable Borrower ten (10) Business Days prior written notice of any such adjustment or correction (a) in the eligibility criteria used to determine the Borrowing Base (including, without limitation, the establishment of any reserves) and (b) to the methodology for calculating the Borrowing Base.  Notwithstanding anything to the contrary set forth in Section 11.01, it is understood and agreed that (x) if T-Mobile or Sprint Corporation shall fail to maintain either of the respective ratings from Moody’s or S&P that such Persons maintain as of June 30, 2015, the concentration limits for T-Mobile and Sprint set forth in clauses (vii) and (viii) in the definition of “Eligible Accounts Receivable”, as applicable, shall be amended by the Administrative Agent (without the consent of the Required Lenders) and the Company (and any failure by the Company to execute any such amendment shall constitute an Event of Default hereunder) to lower the applicable concentration limit(s) to twenty percent (20%) and (y) if AT&T or Verizon shall fail to maintain either of the respective ratings from Moody’s or S&P that such Persons maintain as of June 30, 2015, the 

 

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definition of “Eligible Accounts Receivable” shall be amended by the Administrative Agent (without the consent of the Required Lenders) in its good faith discretion and the Company to add concentration limits for such Persons, as applicable, to such definition (and any failure by the Company to execute any such amendment shall constitute an Event of Default hereunder).

 

(h)                                 Effective solely from the First Amendment Effective Date to and including September 30, 2015, the proviso in the first sentence of Section 2.01(a) of the Credit Agreement is hereby amended to read as follows:

 

provided, however, that after giving effect to any Borrowing of Revolving Loans, (i) the Total Revolving Outstandings shall not exceed the Revolving Borrowing Limit, and (ii) the Revolving Credit Exposure of any Lender shall not exceed such Lender’s Revolving Commitment.

 

(i)                                     Effective solely from the First Amendment Effective Date to and including September 30, 2015, the proviso in the first sentence of Section 2.03(a)(i) of the Credit Agreement is hereby amended to read as follows:

 

provided  that after giving effect to any L/C Credit Extension with respect to any Letter of Credit, (x) the Total Revolving Outstandings shall not exceed the Revolving Borrowing Limit, (y) the Revolving Credit Exposure of any Lender shall not exceed such Lender’s Revolving Commitment and (z) the Outstanding Amount of the L/C Obligations shall not exceed the Letter of Credit Sublimit.

 

(j)                                    Effective solely from the First Amendment Effective Date to and including September 30, 2015, the proviso in the seventh sentence of Section 2.03(c)(i) of the Credit Agreement is hereby amended to read as follows:

 

provided  that, after giving effect to such Borrowing, the Total Revolving Outstandings shall not exceed the Revolving Borrowing Limit.

 

(k)                                 Effective solely from the First Amendment Effective Date to and including September 30, 2015, the proviso in the first sentence of Section 2.04(a) of the Credit Agreement is hereby amended to read as follows:

 

provided, however, that (x) after giving effect to any Swing Line Loan, (i) the Total Revolving Outstandings shall not exceed the Revolving Borrowing Limit, and (ii) the Revolving Credit Exposure of any Lender shall not exceed such Lender’s Revolving Commitment, (y) the Company shall not use the proceeds of any Swing Line Loan to refinance any outstanding Swing Line Loan, and (z) the Swing Line Lender shall not be under any obligation to make any Swing Line Loan if it shall determine (which determination shall be conclusive and binding absent manifest error) that it has, or by such Credit Extension may have, Fronting Exposure.

 

(l)                                     Effective solely from the First Amendment Effective Date to and including September 30, 2015, the second sentence of Section 2.04(c)(i) of the Credit Agreement is hereby amended to read as follows:

 

Such request shall be made in writing (which written request shall be deemed to be a Loan Notice for purposes hereof) and in accordance with the requirements of Section 

 

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2.02, without regard to the minimum and multiples specified therein for the principal amount of Base Rate Loans, but subject to the conditions set forth in Section 5.02 (other than the delivery of a Loan Notice) and provided  that, after giving effect to such Borrowing, the Total Revolving Outstandings shall not exceed the Revolving Borrowing Limit.

 

(m)                             Effective solely from the First Amendment Effective Date to and including September 30, 2015, Section 2.05(b)(i) of the Credit Agreement is hereby amended to read as follows:

 

(i)                                     Revolving Commitments.  If for any reason the Total Revolving Outstandings at any time exceed the Revolving Borrowing Limit then in effect, the Company shall immediately prepay Revolving Loans and/or the Swing Line Loans and/or Cash Collateralize the L/C Obligations in an aggregate amount equal to such excess; provided, however, that the Company shall not be required to Cash Collateralize the L/C Obligations pursuant to this Section 2.05(b)(i) unless after the prepayment in full of the Revolving Loans and the Swing Line Loans the Total Revolving Outstandings exceed the Revolving Borrowing Limit then in effect.

 

(n)                                 Effective solely from the First Amendment Effective Date to and including September 30, 2015, the proviso in Section 2.06(a) of the Credit Agreement is hereby amended to read as follows:

 

provided that (i) any such notice shall be received by the Administrative Agent not later than 12:00 noon five (5) Business Days prior to the date of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of $2,000,000 or any whole multiple of $1,000,000 in excess thereof and (iii) the Company shall not terminate or reduce (A) the Aggregate Revolving Commitments if, after giving effect thereto and to any concurrent prepayments hereunder, the Total Revolving Outstandings would exceed the Revolving Borrowing Limit, (B) the Letter of Credit Sublimit if, after giving effect thereto, the Outstanding Amount of L/C Obligations not fully Cash Collateralized hereunder would exceed the Letter of Credit Sublimit, or (C) the Swing Line Sublimit if, after giving effect thereto and to any concurrent prepayments hereunder, the Outstanding Amount of Swing Line Loans would exceed the Swing Line Sublimit.

 

(o)                                 Effective solely from the First Amendment Effective Date to and including September 30, 2015, Section 2.06(b) of the Credit Agreement is hereby amended to read as follows:

 

(b)                                 Mandatory Reductions.  If after giving effect to any reduction or termination of Revolving Commitments under this Section 2.06, the Letter of Credit Sublimit or the Swing Line Sublimit exceeds the Revolving Borrowing Limit at such time, the Letter of Credit Sublimit or the Swing Line Sublimit, as the case may be, shall be automatically reduced by the amount of such excess.

 

(p)                                 Effective solely from the First Amendment Effective Date to and including September 30, 2015, Section 5.02 of the Credit Agreement is hereby amended by inserting the following clause (d) in appropriate alphabetical order to read as follows:

 

(d)                                 With respect to any Borrowing of Revolving Loans or Swing Line Loans or any L/C Credit Extension, the Administrative Agent shall have received a duly 

 

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completed Borrowing Base Certificate signed by a Responsible Officer of the Company demonstrating that, upon giving effect to such Borrowing of Revolving Loans or Swing Line Loans or such L/C Credit Extension, as applicable, the Total Revolving Outstandings do not exceed the Revolving Borrowing Limit.

 

(q)                                 Effective solely from the First Amendment Effective Date to and including September 30, 2015, a new Section 6.25 is hereby added to the Credit Agreement to read as follows:

 

6.25                        Eligible Receivables.

 

All of the Eligible Major Carrier Current Accounts Receivable, Eligible Major Carrier Non-Current Accounts Receivable and Eligible Non-Major Carrier Accounts Receivable included in the calculation of the Borrowing Base as set forth in each Borrowing Base Certificate furnished to the Administrative Agent meets, or as of the date stated thereon, all eligibility requirements specified in the definitions of those terms as set forth in Article I of this Agreement.

 

(r)                                    Effective solely from the First Amendment Effective Date to and including September 30, 2015, Section 7.02 of the Credit Agreement is hereby amended by deleting the text “and” at the end of clause (i) thereof, replacing the period at the end of clause (j) thereof with the text “; ” and inserting the following clauses (k) and (l) in appropriate alphabetical order to read as follows:

 

(k)                                 as soon as available, but in any event within twenty (20) days after the end of each calendar month (and, upon the occurrence and during the continuation of a Default, on a more frequent basis if requested by the Administrative Agent), a duly completed Borrowing Base Certificate signed by a Responsible Officer of the Company as of the last Business Day of such month together with sufficient supporting detail to support the calculations set forth therein (including for the avoidance of doubt, supporting detail regarding the determinations of Eligible Major Carrier Current Accounts Receivable, Eligible Major Carrier Non-Current Accounts Receivable and Eligible Non-Major Carrier Accounts Receivable); and

 

(l)                                     as soon as available, but in any event within twenty (20) days after the end of each calendar month (and, upon the occurrence and during the continuation of a Default, on a more frequent basis if requested by the Administrative Agent), an accounts receivable and accounts payable aging report for the Company and its Subsidiaries, certified by a Responsible Officer of the Company and in form and substance reasonably satisfactory to the Administrative Agent.

 

(s)                                   Section 8.03(e) of the Credit Agreement is hereby amended to read as follows:

 

(e)                                  purchase money Indebtedness (including obligations in respect of Capital Leases or Synthetic Leases) hereafter incurred by the Company or any of its Subsidiaries to finance the purchase of fixed assets, and renewals, refinancings and extensions thereof, provided that (i) the total of all such Indebtedness for all such Persons taken together shall not exceed an aggregate principal amount of $17,500,000 at any one time outstanding; (ii) such Indebtedness when incurred shall not exceed the purchase price of the asset(s) financed; and (iii) no such Indebtedness shall be refinanced for a principal 

 

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amount in excess of the principal balance outstanding thereon at the time of such refinancing;

 

(t)                                    Effective as of June 30, 2015, Section 8.11(a) of the Credit Agreement is hereby amended to read as follows:

 

(a)                                 Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio as of the end of any fiscal quarter of the Company to be greater than (i) for any fiscal quarter ending during the period from the Closing Date to and including March 31, 2015, 2.50 to 1.0, (ii) for any fiscal quarter ending during the period from April 1, 2015 to and including September 30, 2015, 2.75 to 1.00, (iii) for any fiscal quarter ending during the period from the October 1, 2015 to and including December 31, 2015, 2.50 to 1.0, (iv) for any fiscal quarter ending during the period from January 1, 2016 to and including December 31, 2016, 2.25 to 1.0 and (v) for any fiscal quarter ending thereafter, 2.00 to 1.0.

 

(u)                                 Effective as of June 30, 2015, Section 8.11(c) of the Credit Agreement is hereby amended to read as follows:

 

(c)                                  Liquidity.  Permit Liquidity of the Loan Parties, as of the last day of any calendar month (i) ending during the period from the Closing Date to and including June 29, 2015, to be less than $15,000,000, (ii) ending during the period from and including June 30, 2015 to and including September 30, 2015, to be less than $5,000,000 and (iii) ending thereafter, to be less than $15,000,000.

 

(v)                                 Effective solely from the First Amendment Effective Date to and including September 30, 2015, a new Exhibit M to the Credit Agreement is hereby added in the form of Exhibit M attached hereto.

 

2.                                      Conditions Precedent.  This Agreement shall be effective upon receipt by the Administrative Agent of:

 

(a)                                 counterparts of this Agreement duly executed by (i) a Responsible Officer of each Loan Party, (ii) the Required Lenders and (iii) the Administrative Agent;

 

(b)                                 payment to the Administrative Agent, for the account of each Lender executing this Agreement, of an amendment fee equal to, with respect to each such Lender, 10 basis points times the sum of (i) such Lender’s Revolving Commitment as of the date hereof plus (ii) the Outstanding Amount of the Term Loan of such Lender as of the date hereof;

 

(c)                                  a duly completed borrowing base certificate (substantially in the form of Exhibit M hereto) signed by a Responsible Officer of the Company, in form and substance satisfactory to the Administrative Agent; and

 

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(d)                                 all reasonable out-of-pocket costs and expenses of the Administrative Agent (including reasonable fees and expenses of its legal counsel) in connection with this Agreement to the extent invoiced as of the date hereof (paid directly to such counsel if requested by the Administrative Agent), without prejudice to a final settling of accounts between the Administrative Agent and the Loan Parties.

 

3.                                      Miscellaneous.

 

(a)                                 The Credit Agreement (as amended hereby) and the obligations of the Loan Parties thereunder and under the other Loan Documents are hereby ratified and confirmed and shall remain in full force and effect according to their terms.  This Agreement shall not be deemed or construed to be a satisfaction, reinstatement, novation or release of any Loan Document or a waiver by the Administrative Agent or any Lender of any rights and remedies under the Loan Documents, at law or in equity.

 

(b)                                 Each Guarantor (i) acknowledges and consents to all of the terms and conditions of this Agreement, (ii) affirms all of its obligations under the Loan Documents and (iii) agrees that this Agreement and all documents executed in connection herewith do not operate to reduce or discharge its obligations under the Credit Agreement or the other Loan Documents.

 

(c)                                  The Borrowers’ and the Guarantors hereby represent and warrant to the Administrative Agent and the Lenders as follows:

 

(i)                                     Each of the Borrowers and the Guarantors has taken all necessary corporate or other organizational action to authorize the execution, delivery and performance of this Agreement.  This Agreement and the execution, delivery and performance hereof by the Borrowers and the Guarantors do not contravene the terms of any such Person’s Organization Documents or conflict with or result in any breach or contravention of any law, agreement or obligation by which the Borrowers or any Guarantor is bound.

 

(ii)                                  This Agreement has been duly executed and delivered by each of the Borrowers and the Guarantors and constitutes a legal, valid and binding obligation of each of the Borrowers and the Guarantors, enforceable against each such Person in accordance with its terms, subject to the effect of any applicable bankruptcy, insolvency or other similar laws affecting creditors’ rights generally or by principles of equity pertaining to the availability of equitable remedies.

 

(iii)                               No approval, consent, exemption, authorization or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by any Loan Party of 

 

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this Agreement, other than those that have already been obtained and are in full force and effect.

 

(d)                                 The Borrowers and the Guarantors represent and warrant to the Administrative Agent and the Lenders that (i) after giving effect to this Agreement, the representations and warranties of the Borrowers and each other Loan Party contained in Article VI of the Credit Agreement or any other Loan Document, or which are contained in any document furnished at any time under or in connection therewith, are true and correct in all respects on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all respects as of such earlier date, and except that for purposes of this Section 3(d)(i), the representations and warranties contained in Section 6.05(a) of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to Section 7.01(a) of the Credit Agreement, and (ii) after giving effect to this Agreement, no Default has occurred and is continuing.

 

(e)                                  This Agreement shall constitute a Loan Document for all purposes. This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other electronic imaging means (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Agreement.  This Agreement constitutes the entire contract among the parties relating to the subject matter hereof and supersedes any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  This Agreement will inure to the benefit of and bind the respective successors and permitted assigns of the parties hereto.

 

(f)                                   THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.  THE TERMS OF SECTIONS 11.14 AND 11.15 OF THE CREDIT AGREEMENT ARE INCORPORATED HEREIN BY REFERENCE, MUTATIS MUTANDIS.

 

(g)                                  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

(h)                                 If any provision of this Agreement is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

[SIGNATURE PAGES FOLLOW]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written.

 

	
BORROWERS:
    	
BOINGO   WIRELESS, INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
CFO
    
	
 
    	
 
    
	
 
    	
NEW   YORK TELECOM PARTNERS, LLC,
    
	
 
    	
a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
CFO
    
	
 
    	
 
    
	
 
    	
 
    
	
GUARANTORS:
    	
ADVANCED WIRELESS   GROUP, LLC,
    
	
 
    	
a Florida limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter   Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    
	
 
    	
BOINGO BROADBAND LLC,
    
	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter   Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
CFO
    
	
 
    	
 
    
	
 
    	
CHICAGO CONCOURSE   DEVELOPMENT GROUP, LLC,
    
	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter   Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
CFO
    

 

BOINGO WIRELESS, INC.

FIRST AMENDMENT TO CREDIT AGREEMENT

 

 

	
 
    	
CONCOURSE   COMMUNICATIONS BALTIMORE, LLC,
    
	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter   Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
CFO
    
	
 
    	
 
    
	
 
    	
CONCOURSE   COMMUNICATIONS CANADA, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter   Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
Treasurer &   Secretary
    
	
 
    	
 
    
	
 
    	
CONCOURSE   COMMUNICATIONS GROUP, LLC,
    
	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter   Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    
	
 
    	
CONCOURSE   COMMUNICATIONS ILLINOIS, LLC,
    
	
 
    	
an Illinois limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter   Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
CFO
    
	
 
    	
 
    
	
 
    	
CONCOURSE   COMMUNICATIONS MINNESOTA, LLC,
    
	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter   Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
CFO
    
	
 
    	
 
    
	
 
    	
CONCOURSE   COMMUNICATIONS NASHVILLE, LLC,
    
	
 
    	
an Illinois limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter   Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
CFO
    

 

BOINGO WIRELESS, INC.

FIRST AMENDMENT TO CREDIT AGREEMENT

 

 

	
 
    	
CONCOURSE   COMMUNICATIONS OTTAWA, LLC,
    
	
 
    	
an Illinois limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter   Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
CFO
    
	
 
    	
 
    
	
 
    	
CONCOURSE   COMMUNICATIONS SSP, LLC,
    
	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter   Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
CFO
    
	
 
    	
 
    
	
 
    	
CONCOURSE   COMMUNICATIONS ST. LOUIS, LLC,
    
	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter   Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
CFO
    
	
 
    	
 
    
	
 
    	
CONCOURSE HOLDING CO.,   LLC,
    
	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter   Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    
	
 
    	
ELECTRONIC MEDIA   SYSTEMS, INC.,
    
	
 
    	
a Florida corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter   Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
Treasurer &   Secretary
    
	
 
    	
 
    
	
 
    	
ENDEKA GROUP, INC.,
    
	
 
    	
a California   corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter   Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
CFO
    

 

BOINGO WIRELESS, INC.

FIRST AMENDMENT TO CREDIT AGREEMENT

 

 

	
 
    	
INGATE HOLDING, LLC,
    
	
 
    	
an Illinois limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter   Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
CFO
    
	
 
    	
 
    
	
 
    	
INGATE TECHNOLOGIES,   LLC,
    
	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter   Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
CFO
    
	
 
    	
 
    
	
 
    	
OPTI-FI NETWORKS, LLC,
    
	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter   Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
CFO
    
	
 
    	
 
    
	
 
    	
TEGO COMMUNICATIONS, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Peter   Hovenier
    
	
 
    	
Name:
    	
Peter Hovenier
    
	
 
    	
Title:
    	
Secretary &   Treasurer
    

 

BOINGO WIRELESS, INC.

FIRST AMENDMENT TO CREDIT AGREEMENT

 

 

	
ADMINISTRATIVE
    	
 
    
	
AGENT:
    	
BANK   OF AMERICA, N.A.,
    
	
 
    	
as   Administrative Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Darleen R. DiGrazia
    
	
 
    	
Name:
    	
Darleen R. DiGrazia
    
	
 
    	
Title:
    	
Vice President
    

 

BOINGO WIRELESS, INC.

FIRST AMENDMENT TO CREDIT AGREEMENT

 

 

	
LENDERS:
    	
BANK   OF AMERICA, N.A.,
    
	
 
    	
as   a Lender, Swing Line Lender and an L/C Issuer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Julie Yamauchi
    
	
 
    	
Name:
    	
Julie Yamauchi
    
	
 
    	
Title:
    	
Senior Vice President
    

 

BOINGO WIRELESS, INC.

FIRST AMENDMENT TO CREDIT AGREEMENT

 

 

	
 
    	
SILICON   VALLEY BANK,
    
	
 
    	
as   a Lender and an L/C Issuer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ted Bell
    
	
 
    	
Name:
    	
Ted Bell
    
	
 
    	
Title:
    	
Vice President
    

 

BOINGO WIRELESS, INC.

FIRST AMENDMENT TO CREDIT AGREEMENT

 

 

EXHIBIT M

 

FORM OF BORROWING BASE CERTIFICATE

 

                      , 20    

 

Bank of America, N.A., as Administrative Agent

 

Re:                             Credit Agreement, dated as of November 21, 2014, by and among Boingo Wireless, Inc., a Delaware corporation (the “Company”), as a Borrower, NY Telecom Partners, LLC, a Delaware limited liability company, as a Borrower, the Guarantors, the Lenders and Bank of America, N.A., as Administrative Agent, L/C Issuer and Swing Line Lender (as amended, modified, extended, restated, replaced, or supplemented from time to time, the “Credit Agreement”)

 

Capitalized terms used herein and not defined herein shall have the meaning assigned in the Credit Agreement.

 

I, [insert name], [insert title] of the Company, hereby certify to the Administrative Agent that (i) I am authorized to execute and deliver this Borrowing Base Certificate to the Administrative Agent on behalf of the Company, (ii) attached hereto as Schedule 1 are detailed calculations of the Borrowing Base as of the date hereof and such calculations are true and correct in all material respects and (iii) all of the Eligible Major Carrier Current Accounts Receivable, Eligible Major Carrier Non-Current Accounts Receivable and Eligible Non-Major Carrier Accounts Receivable included in the calculation of the Borrowing Base as set forth in this Borrowing Base Certificate meet all eligibility requirements specified in the definitions of those terms as set forth in Article I of the Credit Agreement.

 

 

	
 
    	
BOINGO   WIRELESS, INC.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

 

Schedule 1

 

Total of:

 

(a)                                 Sum of:

 

(i)                                     80% of Eligible Major Carrier Current Accounts Receivable; plus

 

(ii)                                  60% of Eligible Major Carrier Non-Current Accounts Receivable; plus

 

(iii)                               80% of Eligible Non-Major Carrier Accounts Receivable

 

minus

 

(b)                                 Outstanding Amount of the Term Loan

 

Borrowing Base ((a) - (b)):   $March 2, 2015

  

 

 

 

 March 2, 2015
 

 

 

 

 

 

 HFII Assets Solutions, LLC
 as Seller and
 Sundance  Strategies, Inc. as Buyer
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Asset Purchase Agreement
 

 1

 

 
 THIS ASSET PURCHASE AGREEMENT (the "Agreement") is made effective as of the 2nd day of March, 2015 (the "Effective Date"):
 

 BETWEEN
 

 HFII  Assets  Solutions,  LLC,  a  Delaware  limited  liability  company,  having  its registered office at 1209 Orange Street, Wilmington, DE 19801 (the "Seller'');
 

 and
 

 Sundance Strategies, Inc., a corporation incorporated under the laws of the State of Utah, USA, having its registered  office at 4626 North 300 West, Suite 365, Provo, Utah 84604, USA (the "Buyer'');
 

 each a "Party" and together the "Parties" to  this Agreement.
 

 WHEREAS
 

 (A)
 The Seller holds an aggregate  of 10,821,174 participating  debt certificates with a nominal  value  of  one  US  dollar  (US  $1.00}  issued  by  the  companies  listed on Exhibit A (the "Existing PDCs"), representing a total issue of Existing PDCs having an aggregate par value of US $10,821,174.00 as set forth in Exhibit A; and
 

 (B)
 Seller holds that certain Promissory Note issued by Buyer in connection  with that certain NIB Transfer  Agreement dated March 11, 2013 (the "Sundance Note"), a copy of which is attached as Exhibit B; and
 

 (C)
 The Existing PDCs represent the net insurance benefits ("NIBs") from a portfolio of life settlement policies as set forth in Exhibit C; and
 

 (D)
 Buyer  and  Seller  entered  into  a  binding  letter  of  intent  on  December  5, 2014, whereby the Buyer agreed to buy, and the Seller agreed to sell, the Existing PDCs and Sundance Note subject to certain contingencies (the "LOI"), a copy of which is attached as Exhibit D; and
 

 (E)
 Buyer and Seller have agreed to waive any outstanding  contingencies  in the LOI and hereby complete the transfer of the Existing PDCs and Sundance Note to Buyer according to the terms and provisions set forth below.
 

 THE PARTIES HEREBY AGREE AS FOLLOWS:
 

 1.
 Construction
 

 1.1 
 In this Agreement, any reference to any agreement  (howsoever named) is to such agreement as it may be amended, supplemented or extended from time to time, whether before or after the date hereof.
 

 2

 

 
 

 1.2
 Clause headings are for ease of reference only.
 

 1.3 
 For  purposes  of  this  Agreement  and  any  future  communications  between the Parties,  the term "PDCs" and "NIBs" shall be considered  interchangeable  and all Parties hereby acknowledge and agree to their interchangeability.
 

 2. 
 Transfers
 

 The Seller agrees to sell and transfer to the Buyer, which the Buyer accepts, the Existing PDCs and the Sundance Note for the Consideration, defined below.
 

 3. 
 Consideration & Payment
 

 The total consideration for the transfer of the Existing PDCs and the Sundance Note shall be One Million,  One Hundred  Thirty  Thousand  (1,130,000)  shares  of newly issued common  shares of Buyer (the "Consideration") (the "Sundance Shares"). The Consideration is subject to the following rights and conditions:
 

 3.1 
 Lock Up I Leak Out.   Except as permitted  in connection  with Seller's  Put Option (defined below), or with the written consent of Buyer, Seller shall be prohibited from selling, hypothecating or otherwise dividing or assigning the Sundance Shares for a period of 12 months  from the date of issuance  and such restrictions shall be set forth on the stock certificates evidencing the Sundance Shares.
 

 3.2 
 Put Option.  Seller shall have the option to sell and, if Seller elects to exercise such option, Buyer shall be obligated to purchase, up to an aggregate of 187,500 of the Sundance Shares from Seller at a price of $8.00 per share ($1,500,000) (the "Put Option") in accordance with the following:
 

 a)
 Exercise Dates:
 

 i.
 Seller  can  elect  to  exercise  its  Put  Option  to  sell  up  to  93,750 of  the Sundance Shares back to Purchaser on March 2, 2015, for an aggregate exercise price of $750,000 (the "First Exercise Date").
 

 ii. 
 Seller  can  elect  to  exercise  its  Put  Option  to  sell  up  to  93,750 of  the Sundance   Shares   back  to   Purchaser  on  October  31, 2015,  for  an aggregate exercise price of $750,000 (the "Second Exercise Date").
 

 b)
 Expiration  of  Put  Option.    Each  of  the  Put  Options  shall  expire  on  their respective exercise dates if not exercised.
 

 3

 

 
 

 c)
 Exercise Notice.   Seller may make its election to exercise the Put Option by providing written notice to Buyer on the applicable exercise date and returning the related Sundance Shares, endorsed to Buyer.
 

 d)
 Payment of Option Price.    Buyer shall pay the exercise price within two (2) days of its receipt of Seller's exercise notice and its receipt of the related Sundance Shares.
 

 e)
 Clawback  of Existing PDCs.      If Buyer fails to pay the exercise price within two (2) days of its receipt of an exercise notice and its receipt of the related Sundance Shares, plus any cure period, then Seller shall have the right to demand the return of its assets (the "Ciawback Rights"), as follows:
 

 i. 
 If Buyer fails to pay the exercise price related to the First Exercise Date and the Buyer and Seller fail to extend the payment date, this Agreement shall be terminated and Buyer shall return all of Seller's assets and Seller shall repay the Consideration and any other costs and expenses paid by Buyer in connection with Seller's assets.   In the case of termination, Seller shall offset amounts owed by Buyer under   the   Sundance   Note   by  the Consideration   and  any  other  costs  and  expenses   paid  by Buyer in connection with Seller's assets, which shall be agreed upon by Buyer and Seller in one or more separate writings.
 

 ii. 
 If Buyer fails to pay the exercise price related to the Second Exercise Date and the Buyer and Seller fail to extend the payment date, this Agreement shall be terminated and Buyer shall return all of Seller's assets and Seller shall repay the Consideration (including any proceeds from the exercise by Seller of its Put Option) and any other costs and expenses paid by Buyer in connection  with Seller's assets.    In the case  of termination,  Seller shall offset amounts owed by Buyer under the Sundance Note by any proceeds from the exercise by Seller of its Put Option and by the Consideration and any other costs and expenses  paid by Buyer in connection  with Seller's assets, which shall be agreed upon by Buyer and Seller in one or more separate writings.
 

 f)
 Cure Period.  In the event Buyer fails to timely pay the exercise price to Seller in connection with a properly exercised  Put Option due to a lack of adequate liquidity,  as determined  in the  Buyer's  sole  discretion,  Buyer shall have  (i) twenty-nine (29) calendar days from the receipt of an exercise notice related to the First Exercise Date and (ii) forty-five (45) calendar days from the receipt of an exercise notice related to the 
 

 4

 

 
 Second Exercise Date, to pay the related exercise price prior to Seller exercising any Clawback Rights.
 

 4. 
 Transfers
 

 4.1 
 Use of Proceeds of Transferred  Assets.   Pending the expiration of the Put Option and any Clawback Rights, Buyer shall own and control the Existing PDCs and Sundance  Note.    Buyer  hereby  agrees  to  maintain  the  Existing  PDCs  in  good standing (including the payment of all costs and expenses related to the assets underlying the Existing PDCs) and to hold such Existing PDCs, free from any encumbrances,  until the expiration of such Put Option and Clawback Rights.
 

 5. 
 Initial Closing Conditions
 

 5.1 
 NIB Registration.  The Seller and Buyer shall take such steps necessary to register the  Buyer  as  holder  of  the  Existing  PDCs  in  its  register  of  NIBs. The  Parties expressly grant power to the manager of the NIB issuer, acting individually and with full power of substitution, to amend and execute the above register for and on behalf of the  NIB  issuer  and the Buyer and to  do all such acts and things  as may be ancillary thereto and/or necessary and/or useful and/or desirable in the sole opinion of such manager in connection with or for the purpose of giving full effect to this Agreement.   Upon amendment and execution of the above register, the manager of the NIB issuer shall cause to be delivered to Buyer via email (to be followed by a hard copy via courier) a copy of such amended and executed register and confirm to Buyer via email (to be followed by a hard copy via courier) that the Buyer has been registered as the holder of the NIBs in its register of NIBs and is entitled to all rights and privileges of such ownership, including the right to transfer or convey such NIBs without  further consent  of  any  person,  except  only  as  may  be  limited  by  this Agreement.
 

 5.2 
 Sundance Note Transfer.  The Seller shall deliver to the Buyer, the Sundance Note, duly endorsed over to Buyer and listed on a Bill of Sale in the form attached hereto in Exhibit E.
 

 6. 
 Representations and Warranties
 

 6.1 
 The Seller, and any of its affiliates or subsidiaries having any interest in the assets being  transferred  hereunder,  represents  and  warrants  to  the  Buyer  as  of  the Effective Date as follows:
 

 (a)
 The Seller is a validly organized  and existing limited liability company  under the  laws  of  the  State  of  Delaware,  and  it  has  the  corporate  power  and authority to enter into this Agreement and to perform its 
  obligations hereunder;
 

 

 5

 

 
 
 (b)
 The execution and the performance of this Agreement by the Seller have been duly   authorized   by   its  managers   and/or   any   and   all other necessary management  body(ies)  of the Seller and no further corporate action on the part  of  the  Seller  is  necessary   to  authorize  this Agreement  and/or  its performance;
 

 (c)
 This Agreement has been duly executed by the Seller, and this Agreement constitutes the valid and binding agreement of the Seller, enforceable against it in accordance with the terms hereof;
 

 (d)
 Each issuer of the Existing PDCs (each a "Company"), set forth on Exhibit A, is  a private  limited  liability  company  (societe  a responsabilite  limitee) duly incorporated and validly existing under the laws of Luxembourg;
 

 (e)
 To the best of the Seller's knowledge,  the "centre of main interests" (as that term is used in the Council Regulation (EC) No 1346/2000 of 29 May 2000 on insolvency proceedings, the "Insolvency Regulation") of each Company is in Luxembourg, and each Company has no "establishment" (as that term is used in the Insolvency Regulation) outside Luxembourg;
 

 (f)
 In respect of this Agreement and the transactions contemplated by, referred to in or provided for by this Agreement, (i) it entered into this Agreement in good faith and for the purpose of carrying out its business, (ii) it entered into this Agreement on arms' length commercial term, and (iii) it entered into this Agreement without any intention to defraud or deprive of any legal benefit any other parties (such as third parties and in particular creditors) or to circumvent any applicable mandatory laws or regulations of any jurisdiction;
 

 (g)
 To the best of the Seller's knowledge, no action, petition, resolution or similar order for bankruptcy (faillite), voluntary or judicial winding-up (liquidation volontaire ou judiciaire), controlled management (gestion contralee), suspension  of  payment  (sursis  de  paiement), voluntary  arrangement  with creditors  (concordat  preventif de faillite) or similar proceedings  affecting the rights of creditors generally has been taken, lodged, passed or presented with regard to the Company and the Seller;
 

 (h)
 The Seller and each Company do not meet or threatens to meet the criteria for the opening of any proceedings referred to under the above paragraph;
 

 (i)
 The Seller is the sole beneficial  and legal owner  of the Existing PDCs and Sundance Note;
 

 

 

 

 
 
 (J)
 As of the Effective Date, the Existing PDCs are validly issued and fully paid up and represent in aggregate one hundred percent (100%) of the Existing PDCs issued by the Companies; and the Seller is not aware of any document related to the Existing PDCs that would preclude the Seller from consummating the transactions contemplated hereunder;
 

 (k)
 As of the Effective Date, the Seller shall own the Existing PDCs and Sundance Note free and clear of any lien, security interest, claim, option, pledge, charge, assignment, transfer and other encumbrances of any kind;
 

 (I)
 As of the Effective Date, each policy listed on Exhibit C is valid, in-force and in good-standing and has not lapsed nor is in any grace period.
 

 (m)
 This Agreement  does not violate any contractual  or other obligation binding upon it and each Company.
 

 (n)
 There are no proceedings or litigation at law, equity or otherwise pending or, to the knowledge  of the  Seller,  threatened  against  the  Seller,  or to which the Seller is otherwise  a  party  before  any  Governmental Authority, which,  if adversely  determined,  would  reasonably  be  expected  to  have a material adverse effect on the ability of the Seller to perform its obligations under this Agreement,  or to consummate  the  transactions contemplated hereby.  The Seller is not subject to any order of any Governmental Authority except to the extent the same would not reasonably be expected to have a material adverse effect on the ability of the Seller to perform its obligations under this Agreement or to consummate the transactions contemplated hereby.
 

 (o)
 The Seller: (i) has had access  to all reports and registration  statements and other information filed by the Buyer with the United States Securities and Exchange Commission (the "SEC") at www.sec.gov; is an "accredited investor" or "sophisticated investor" as those terms are defined in SEC general rules and regulations, and specifically in SEC Rules 501 and 506, each of its principals is also an "accredited investor" or "sophisticated investor"; is fully capable of evaluating the risks and merits of an investment in the Sundance Shares; understands that the Sundance Shares are "restricted securities" as defined in SEC Rule 144; and has had the opportunity, through its principals and legal counsel,  to  ask  questions  of and  receive  answers  from  the  directors  and executive officers of Buyer, to the Seller's satisfaction.
 

 6.2 
 The Buyer hereby represents and warrants to the Seller as follows:
 

 

 

 

 
 
 (a)
 The  Buyer  is  a  corporation  duly  organized,  validly  existing  and  in good standing under the laws of its state of incorporation, and it has the corporate power and authority to enter into this Agreement and to perform its obligations hereunder;
 

 (b)
 The execution and the performance of this Agreement by the Buyer have been duly authorized by its managers and/or any and all other necessary management  body(ies) of the Buyer and no further corporate action on the part of the Buyer is necessary to authorize this Agreement and/or its performance;
 

 (c)
 This Agreement has been duly executed by the Buyer and this Agreement constitutes the valid and binding agreement of the Buyer, enforceable against it in accordance with the terms hereof;
 

 (d)
 In respect of this Agreement and the transactions contemplated by, referred to in or provided for by this Agreement, (i) it entered into this Agreement in good faith and for the purpose of carrying out its business, (ii) it entered into this Agreement on arms' length commercial terms and (iii) it entered into this Agreement without any intention to defraud or deprive of any legal benefit any other parties (such as third parties and in particular creditors) or to circumvent any applicable mandatory laws or regulations of any jurisdiction.
 

 (e)
 No action, petition, resolution or similar order for bankruptcy (faillite), voluntary or judicial winding-up (liquidation volontaire ou judiciaire) controlled management (gestion controlee), suspension of payment (sursis de paiement), voluntary arrangement with creditors (concordat preventif de faillite) or similar proceedings affecting the rights of creditors generally has been taken, lodged, passed or presented with regard to the Buyer; and
 

 (f)
 This Agreement does not violate any contractual  or other obligation binding upon it.
 

 7. 
 Costs
 

 Except as otherwise provided herein, each Party shall bear its own costs, fees and expenses incurred in the negotiation, execution and performance of this Agreement and any matter contemplated by it.
 

 8. 
 Further Assurances
 

 The Parties each agree to execute and deliver such additional instruments and other documents, and to take all such further actions, as may be reasonably necessary or appropriate  to  effectuate,  carry  out  and  comply  with  all  of  the terms  of  this Agreement and the transactions contemplated hereby.
 

 

 

 

 
 
 9. 
 Relationship of Parties
 

 Nothing  contained   herein   is  intended,   nor  shall   be  construed,   to  create  a partnership, joint venture or other similar association between or among any of the Parties hereto for any purpose.
 

 10. 
 Waiver
 

 The failure or delay of any Party hereto to enforce at any time any of the provisions of this Agreement shall in no way be construed as a waiver of any such provision, nor in any way to affect the validity or this Agreement or any part hereof or the right of such Party thereafter to enforce each and every such provision.   No waiver of any breach of or non-compliance  with this Agreement shall be held to be a waiver of any other or subsequent breach or non-compliance.   All remedies, either under this Agreement or by law or otherwise afforded, will be cumulative and not alternative.
 

 11. 
 Entire Agreement
 

 This  Agreement  constitutes  the  entire  and  sole  agreement  between  the Parties thereto on the provisions covered by it. This agreement may only be amended or modified  by  a  written  document   signed  by  the  Seller  and  the Buyer;  and  it supersedes the LOI.
 

 12. 
 Amendments
 

 No modification, amendment or waiver of, or with respect to, any provision of this Agreement, and all other agreements, instruments and documents delivered pursuant to this Agreement, shall be effective unless it shall be in writing and signed by each of the Parties.
 

 13. 
 Severability
 

 The unenforceability or nullity of any provision of this agreement shall not affect the validity or enforceability of any other provisions hereof.
 

 14. 
 Governing Law, Jurisdiction and Waiver of Jury Trial
 

 THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE  WITH,  THE  LAWS  OF  THE  STATE  OF  UTAH.    ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT  IN THE  COURTS  OF THE STATE  OF UTAH  OR OF THE UNITED STATES FOR THE CENTRAL DISTRICT OF UTAH, AND BY EXECUTION AND DELIVERY  OF THIS  AGREEMENT,  EACH  OF  THE PARTIES  HERETO CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE EXCLUSIVE  JURISDICTION  OF  THOSE COURTS.  EACH  OF  THE  PARTIES HERETO  IRREVOCABLY  WAIVES  ANY OBJECTION,  INCLUDING  ANY OBJECTION TO THE LAYING OF VENUE 
 

 

 

 
 OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, OR ANY LEGAL PROCESS WITH RESPECT TO ITSELF  OR  ANY OF ITS PROPERTY, WHICH  IT MAY  NOW  OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO. EACH OF THE PARTIES HERETO WAIVES PERSONAL SERVICE  OF  ANY  SUMMONS, COMPLAINT  OR  OTHER  PROCESS,  WHICH MAY  BE  MADE  BY  ANY OTHER  MEANS  PERMITTED  BY  UTAH  LAW.   ALL PARTIES HEREUNDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY  WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN  RESPECT  OF  ANY LITIGATION  BASED  HEREON,  OR  ARISING  OUT  OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS  (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE PARTIES IN CONNECTION HEREWITH OR THEREWITH. ALL PARTIES ACKNOWLEDGE AND AGREE THAT THEY HAVE RECEIVED FULL AND SIGNIFICANT  CONSIDERATION  FOR THIS PROVISION AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR ALL PARTIES TO ENTER INTO THIS AGREEMENT.
 

 Notwithstanding  anything contained  herein  to the contrary, it is the Parties' intent that this Agreement and the Promissory Note shall be governed by, and construed in accordance with, the laws of the State of Utah, but the Pledge Agreement shall be governed by, and construed in accordance with, the laws of Luxembourg.
 

 15. 
 Headings
 

 The headings  herein  are for purposes  of reference  only and  shall not  otherwise affect the meaning or interpretation of any provision hereof.
 

 16. 
 Counterparts
 

 This Agreement may be executed by the parties in separate counterparts,  each of which when so executed shall be deemed to be an original and both of which when taken together shall constitute one and the same agreement.
 

 

 

 
 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in counterparts as of the date first above written.
 

 

 THE SELLER
 

 HFII Assets Solutions, LLC
 

 

 

 

 By:  Mark Niu
 Title: President of Hyperion Capital, LLC
 as Manager of HFII Assets Solutions, LLC
 

 

 THE BUYER
 

 
 

 

 

 
 
  Exhibit A
 

 

 Schedule of Existing PDCs (NIBs)
 

 	 	 	 	 	
	 

 Issue
 Date
	 

 Company
	 

 Series
	 

 No. of
 PDCs
	 

 Par Value

	 1/10/2013
	 Apollo Life Ventures Sari
	 -
	 2,022,500
	 2,022,500

	 1/15/2013
	 Apollo Life Ventures Sari
	 -
	 452,250
	 452,250

	 1/15/2013
	 Apollo Life Ventures Sari
	 1
	 1,128,044
	 1,128,044

	 1/10/2013
	 Jubilee Star Lux Sari
	 -
	 1,842,500
	 1,842,500

	 1/15/2013
	 Jubilee Star Lux Sari
	 -
	 452,250
	 452,250

	 1/15/2013
	 Jubilee Star Lux Sari
	 1
	 1,598,630
	 1,598,630

	 9/20/2012
	 HTF 3 US Life Ventures Sari
	 1
	 1,565,000
	 1,565,000

	 9/20/2012
	 HTF 4 US Life Ventures Sari
	 1
	 1,760,000
	 1,760,000

	 

 Total
	  
	 

 10,821,174
	 

 $10,821,174

 

  

 

 
 
  Exhibit B
 

 Sundance Note
 

  

 

 
 
  Exhibit C
 

 Life Insurance Policies
 Underlying Existing PDCs
 

 	 	 	 	
	 Policy ID
	 Structure
	 Carrier
	 Death Benefit

	 BYJR796 
	 HTF 3-4
	 Natl Western
	 2,500,000

	 FRR0759
	 HTF 3-4
	 Hancock
	 1,500,000

	 SAEZ777
	 HTF 3-4
	 West Coast
	 5,000,000

	 CHGE113
	 HTF 3-4
	 LBL
	 5,000,000

	 DAJ042U
	 HTF 3-4
	 Columbus
	 5,000,000

	 SCJ0458
	 HTF 3-4
	 Lincoln
	 7,000,000

	 CAMA813
	 HTF 3-4
	 AXA
	 5,000,000

	 TAMA166
	 HTF 3-4
	 SLD
	 4,000,000

	 KEGE662
	 HTF 3-4
	 Lincoln
	 2,400,000

	 KOS 715
	 HTF 3-4
	 AXA
	 5,000,000

	 QULU73U
	 HTF 3-4
	 Columbus
	 4,500,000

	 ALKI480
	 HTF 3-4
	 AXA
	 3,000,000

	 ROTH439
	 HTF 3-4
	 Hancock
	 2,000,000

	 COGI951
	 HTF 3-4
	 SLD
	 5,000,000

	 BOR0618
	 HTF 3-4
	 SLC
	 2,000,000

	 CHLL709
	 HTF 3-4
	 Prudential
	 5,000,000

	 CUWI510
	 Apollo I Jubilee
	 AXA
	 1,500,000

	 BAJ0839
	 Apollo I Jubilee
	 AXA
	 1,500,000

	 CODE678
	 Apollo I Jubilee
	 JP
	 7,000,000

	 FIHA557
	 Apollo I Jubilee
	 AXA
	 10,000,000

	 HOBU508
	 Apollo I Jubilee
	 Protective
	 1,500,000

	 NEED928
	 Apollo I Jubilee
	 Natl Western
	 2,000,000

	 RERI287
	 Apollo I Jubilee
	 Hartford
	 10,000,000

	 STMI968
	 Apollo I Jubilee
	 AXA
	 5,000,000

	 STMI315
	 Apollo I Jubilee
	 AXA
	 5,000,000

	 WODI680
	 Apollo I Jubilee
	 ReliaStar
	 3,000,000

	 ALD0130
	 Apollo I Jubilee
	 AXA
	 10,000,000

	 COR0121
	 Apollo I Jubilee
	 Hancock
	 3,000,000

	 CRJA0U
	 Apollo I Jubilee
	 Columbus
	 975,000

	 TOTAL
	 124,375,000

  

 

  

 

 
 
  Exhibit D
 

 Letter of Intent
 

  

 

 
 
  Exhibit E
 

 Bill of Sale
 

 Bill of Sale - Sundance Note
 

 

 BILL OF SALE AND ASSIGNMENT
 

 

 BILL OF SALE AND ASSIGNMENT, dated as of this  
 day of March, 2015 (this "Bill of Sale"), from HFII Asset Solutions, LLC (the "Seller"), to Sundance Strategies, Inc. (the "Buyer");
 

 WITNESSETH:
 

 WHEREAS, the undersigned entered into an Asset Purchase Agreement (the "Agreement"), dated as of March 2, 2015.  All capitalized terms used but not defined herein shall have the meanings ascribed thereto in the Agreement; and
 

 WHEREAS,  subject to and in accordance  with the terms and conditions of the Agreement, the  Seller  has  agreed  to  transfer  to  the  Buyer  the  Sundance  Note (the  "Transferred Property").
 

 NOW, THEREFORE, in consideration of the payment by the Buyer to the Seller of the Consideration, and for other good and valuable consideration, the receipt and sufficiency of which  is  hereby  acknowledged,  the  Seller  by  these  presents  does hereby  sell,  convey, transfer and assign to the Buyer, its successors and assigns forever, all of the Seller's right, title and interest, legal and equitable, in and to the Transferred Property.
 

 TO HAVE AND TO HOLD, unto the Buyer, its successors  and assigns, from and after the passage of title as aforesaid, FOREVER.
 

 The  Transferred  Property  is  being  sold  to  the  Buyer  with  only  such representations  or warranties as expressly set forth in the Agreement, herein or in the accompanying  certificate of an authorized officer of the Seller.
 

 The Seller shall be solely responsible for any and all transfer taxes and filing fees incurred by it in connection with this sale of Transferred Property by the Seller to the Buyer.
 

 This instrument  shall be binding  upon, inure to the benefit  of, and be enforceable  by the Buyer and the Seller and their respective successors and assigns.
 

 IN WITNESS WHEREOF, the Seller has caused this Bill of Sale to be executed by its duly authorized officer as of the date first above written.
 

 HFII Assets Solutions
 

 

 By: Title:

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