Document:

Prepared by R.R. Donnelley Financial -- Amendment to Master Agreement dated 05/23/02.

 EXHIBIT 10.1 
  
 [CISCO SYSTEMS CAPITAL LOGO] 
  
 APPENDIX AND AMENDMENT 
  
 To Master Agreement to Lease Equipment No. 1103 and Schedules 
  
 THIS APPENDIX AND AMENDMENT TO MASTER AGREEMENT TO LEASE EQUIPMENT NO. 1103 AND SCHEDULES dated May 23, 2002 (this “Appendix”), effective as of March 1, 2002, is
entered into by and between CISCO SYSTEMS CAPITAL CORPORATION (“Lessor”), and INTERNAP NETWORK SERVICES CORPORATION, a Delaware corporation (formerly a Washington corporation) (“Lessee”), supplements and amends, and shall be
deemed incorporated into, that certain Master Agreement to Lease Equipment between Lessor and Lessee dated as of January 20, 1998, as amended (the “Master Lease”), and is entered with reference to the following: 
  
 A.    Lessor and Lessee have entered into equipment Schedules 1 through 73 to the Master Lease, which
together with such Master Lease are referred to hereinafter collectively, as the Lease. 
  
 B.    Lessee has requested that Lessor agree to extend for twenty-four months the due date for certain Rent payments set forth in certain Schedules and has agreed to buy-out certain other Schedules subject to the
Lease, as set forth below. 
  
 C.    Lessor and Lessee have agreed to amend the
Lease as a condition to the restructuring of the Rent payments. 
  
 NOW, THEREFORE, in consideration of the foregoing and for other valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, Lessor and Lessee hereby agree as follows: 
  
 1.    DEFINITIONS 
  
 All capitalized terms used but not otherwise defined
in this Appendix shall have the respective meanings assigned to such terms in the Lease. In addition to terms defined in the Lease, the following terms shall have the following meanings: 
  
 “Buy-Out Payment” shall have the meaning assigned to it in Section 2(a) of this Appendix. 
  
 “Cash Equivalents “ means, at any time: 
  
 (a)  any direct obligation of (or unconditionally guaranteed by) the United States or a State thereof (or any agency or political subdivision
thereof, to the extent such obligations are supported by the full faith and credit of the United States or a State thereof) maturing not more than one year after such time; 
  
 (b)  commercial paper maturing not more than 270 days from the date of issue, which is rated A-1 or higher by S&P or P-1 or higher by
Moody’s, or 
  
 (c)  any certificate of deposit, time deposit or bankers acceptance,
maturing not more than one year after its date of issuance, which is issued by any bank organized under the laws of the United States (or any State thereof) and which has (x) a credit rating of A2 or higher from Moody’s or A or higher from
S&P and (y) a combined capital and surplus greater than $500,000,000; 
  
 (d)  any
certificate of deposit, time deposit or bankers acceptance, maturing not more than one year after its date of issuance, which is issued by any of Fortis in The Netherlands, Barclays in the United Kingdom or Butterfield in Bermuda; 

 
 (e)  any fund that invests solely in one or more types of securities described in clauses (a) through
(c) above; and 
 

 A-1 

  
 (f)  any money market fund that is rated A2 or higher
by Moody’s or A or higher from S&P and that has portfolio assets of at least $1,000,000. 
  
 “Change of Control” means 
  
 (a)  the acquisition of
beneficial ownership, directly or indirectly, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof) of shares
representing more than 35% of the aggregate ordinary voting power represented by the issued and outstanding capital stock of Lessee (on an as converted basis); or 
  
 (b)  during any period of 24 consecutive months, individuals who at the beginning of such period constituted the Board of Directors of the Lessee
(together with any new directors whose election to such Board or whose nomination for election by the stockholders of the Lessee was approved by a vote of a majority of the directors then still in office who were either directors at the beginning of
such period or whose election or nomination was previously so approved) cease for any reason to constitute a majority of the Board of Directors of the Lessee then in office. 
  
 “Closing Date” shall mean the date when all of the conditions precedent set forth in Section 3 of this Appendix have been satisfied or
otherwise waived in writing by Lessor, including, without limitation, receipt by Lessor of the Buy-Out Payment. 
  
 “EBITDA” means, for any applicable period, the revenue of Lessee minus Lessee’s (i) direct cost of network, (ii) cost of customer support, (iii) product development costs, (iv) sales and marketing costs, and (v)
general and administrative costs. 
  
 “Fiscal Quarter” means a quarter ending on the
last day of March, June, September or December. 
  
 “Fiscal Year” means any period
of twelve consecutive calendar months ending on December 31; references to a Fiscal Year with a number corresponding to any calendar year (e.g., the “2000 Fiscal Year”) refer to the Fiscal Year ending on December 31 of such calendar year.

  
 “GAAP” means generally accepted accounting principles in the United States as in
effect from time to time. 
  
 “Governmental Authority” means any national
government, or any state, province or other political subdivision thereof or therein, or any governmental ministry, department, body, commission, board, bureau, agency, central bank, court, tribunal or other instrumentality or authority exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 
  
 “Lease” shall have the meaning assigned to such term in Recital A of this Appendix. 
  
 “Lease Documents” shall mean the Master Lease, all Schedules entered into in connection with the Master Lease, including without limitation the Remaining Schedules, this Appendix, all documents and
agreements entered into between Lessee and Lessor in connection with any of the foregoing, and all financing statements filed with respect to any of the foregoing. 
  
 “Master Lease” shall have the meaning assigned to such term in the introductory paragraph to this Appendix. 
  
 “Material Adverse Change” means (i) a material adverse change in the business, operations or financial
condition of Lessee and its Subsidiaries taken as a whole, or (ii) any event, matter, condition or circumstance which (A) would materially impair the ability of Lessee or any other Person to perform or observe its obligations under or in respect of
the Lease Documents or any other agreements, instruments or documents executed in connection herewith, or (B) affects the legality, validity, binding effect or enforceability of the Lease Documents or any other agreements, instruments or documents
executed in connection herewith. 
 

 A-2 

  
 “Person” means any natural person, corporation,
limited liability company, partnership, joint venture, association, trust or unincorporated organization, governmental authority, or any other legal entity, whether acting in an individual, fiduciary or other capacity. 
  
 “Remaining Schedules” shall have the meaning assigned to it in Section 2(b) of this Appendix.

  
 “Restricted Cash” means any cash or Cash Equivalents of Lessee in a cash
collateral account or otherwise that secures payment or performance of any obligation of Lessee to any Person, including without limitation, cash held to secure reimbursement obligations for any letters of credit or bonds, other than the amount of
cash or Cash Equivalents, if any, that (i) exceeds any required minimum balances established by any Person and (ii) can be withdrawn and utilized by Lessee. 
  
 “Subsidiary” means any corporation, association, partnership, joint venture or other business entity of which more than 50% of the voting
stock or other equity interest is owned directly or indirectly by any Person or one or more of the other Subsidiaries of such Person or a combination thereof. 
  
 “Unrestricted Cash Balance” means, at any time, the amount by which all cash and Cash Equivalents exceeds the balance at such time of
Restricted Cash. 
  

	2.
	 
	RESTRUCTURING OF EXISTING LEASE SCHEDULES; ACKNOWLEDGMENT OF LEASE OBLIGATIONS. 
 

  

(a)  Buy-Out of Designated Schedules.    On the Closing Date, Lessee shall pay to Lessor Twelve Million One Hundred Twelve
Thousand Three Hundred Forty-Nine and 91/100 Dollars ($12,112,349.91) (the “Buy-Out Payment”) in full satisfaction of all Rent payments due under Schedules 6 through 19 inclusive, for the purchase of the Equipment subject to Schedules 6
through 19, and in full satisfaction of all Rent payments due under Schedules 4 and 5. Upon receipt of the Buy-Out Payment, Lessee shall be the owner of the Equipment subject to Schedules 6 through 19. On the Closing Date, Lessee shall return the
Equipment subject to Schedules 4 and 5 to Lessor by shipping such equipment to Lessor within 30 days of the Closing Date. 
  
 (b)  Restructured Lease Payments.    Each of the Schedules executed by Lessee in connection with the Master Lease, including all Schedules that have been executed by Lessee in connection with PFI,
are described on Exhibit A hereto. Schedules 20 through 73 as listed on Exhibit A, other than Schedules 40, 52 and 71 which are marked “cancelled” (collectively, the “Remaining Schedules”), shall be restructured as follows: All
Rent payments due under the Remaining Schedules beginning with the payment due March 1, 2002, shall be extended for twenty-four months. Absent the occurrence of an Event of Default, no payments will be due under the Remaining Schedules for the
months of March 2002 through February 2004. Absent the occurrence of an Event of Default, all remaining monthly Rent payments due under each Remaining Schedule shall be due and payable beginning March 1, 2004 and continuing on the first day of each
month thereafter such that the last payment under each Remaining Schedule is due and payable on the first day of the twenty-fourth (24th) month after the original scheduled payment date set forth in the Remaining Schedule for such last payment.
Except as otherwise set forth in this Appendix, the terms of the Remaining Schedules shall remain unchanged and in full force and effect, including, without limitation the purchase option set forth therein. With respect to Schedules 45 and 73,
Lessee believes that it has returned the Equipment subject to such Schedules to Lessor. Lessee and Lessor shall attempt to reconcile such Schedules on or before the thirtieth (30) day after the Closing Date to determine whether Lessor received the
Equipment subject to such Schedules from Lessee. If at any time after the Closing Date, Lessor is able to verify that the Equipment subject to any of Schedules 45 and 73 was received by Lessor, Lessor shall cancel the Schedules with respect to which
it received all of the Equipment subject thereto and amend Exhibit A hereto to delete such Schedule numbers. If Lessor is unable to verify receipt of such Equipment, Lessee shall remain obligated under such Schedules. 
  
 (c)  Binding Effect of Lease Documents.    Lessee hereby acknowledges, confirms and agrees that: (a)
each of the Lease Documents to which it is a party has been duly executed and delivered to Lessor by Lessee, and each is in full force and effect as of the Closing Date, (b) the agreements and obligations of Lessee contained in
 
 

 A-3 

 
such Lease Documents, including, without limitation, this Appendix, constitute the legal, valid and binding obligations of Lessee, enforceable against it in accordance with their respective
terms, and Lessee has no valid defense to the enforcement of such obligations, and (c) Lessor is and shall be entitled to the rights, remedies and benefits provided for in the Lease Documents and applicable law. 
  

	3.
	 
	CONDITIONS PRECEDENT. 
 

  
 (a)  Conditions to Effectiveness. 
  
 The effectiveness of the this
Appendix and the amendments to the Remaining Schedules contemplated hereby shall be conditional upon the following conditions having been satisfied or provided for in a manner satisfactory to Lessor: 
  
 (i)  Receipt of Lease Documents.    This Appendix shall have been duly executed by,
and delivered to, Lessee and Lessor, and Lessor shall have received a legal opinion in form acceptable to Lessor and its counsel, together with a Secretary’s Certificate and resolutions and such other documents and agreements as Lessor shall
request in connection with the transactions contemplated by this Appendix. 
  
 (ii)  Receipt of Payment.    Lessee shall have received the Buy-Out Payment. 
  
 (iii)  Receipt of Payments Under Existing Lease.    Lessor shall have received all payments owed by Lessee to Lessor through February 28, 2001 under the Master
Lease, all Schedules subject to such Master Lease immediately prior to the effectiveness of this Appendix, and under all other agreements between Lessor and Lessee. 
  
 (iv)  Reconciliation of Remaining Schedules.    Lessee shall have executed and delivered to Lessor all Remaining
Schedules not previously executed by Lessee with respect to equipment that was shipped to Lessee, and all equipment described as CSC Pre-funded Inventory or PFI, shall have been reconciled with Lessor and supporting Schedules shall have been
executed by Lessee and delivered to Lessor. 
  
 (v)  Due
Diligence.    Lessee shall have provided to Lessor all information requested by Lessor for the completion of Lessor’s due diligence and documentation. Lessor shall have completed its business and legal due diligence,
with results satisfactory to Lessor. 
  
 (vi)  No Events of
Default.    Lessee shall not be in default under (i) any agreement with Lessor or Cisco Systems, Inc., (ii) any agreement with Silicon Valley Bank, (iii) any material agreement with any third party, (iv) any non-material
agreement with any third party if Lessor determines in its reasonable commercial judgment that such default could impact Lessee’s ability to operate its business as currently operated or Lessee’s ability to meet its obligations to Lessor,
or (v) any agreement with any Person as a result of this Appendix. 
  
 (vii)  Schedule
of Defaults.    Lessee shall have delivered to Lessor a Schedule of Defaults identifying the nature of such defaults and the party to which Lessee is in default or that has asserted a default. 
  
 (viii)  Representations and Warranties.    No representation or warranty by Lessee
contained herein or in any of the other Lease Documents shall be untrue or incorrect in any material respect as of the Closing Date, except to the extent that such representation or warranty expressly relates to an earlier date and except for
changes therein expressly permitted or expressly contemplated hereunder. 
  

	4.
	 
	FURTHER LESSEE REPRESENTATIONS AND COVENANTS. 
 

  
 Lessee agrees as follows: 
  
 (a)  Lessee
Representations. 
  
 Lessee hereby represents and warrants to Lessor that as of the Closing Date: 

 
 (i)  There are no actions, suits or proceedings pending or, to the best of Lessee’s knowledge,
threatened, against or affecting Lessee or any of its Subsidiaries before any Governmental Authority or
 
 

 A-4 

 
arbitrator which (i) purport to affect or pertain to the this Appendix, the Lease or any Schedule, or (ii) if determined adversely to Lessee or any such Subsidiary, would result in a Material
Adverse Change, except as set forth on Exhibit B. 
  
 (ii)  Lessee and its
Subsidiaries possess all approvals, authorizations, permits, franchises, licenses, patents, trademarks, trade names, service marks, and copyrights, free from burdensome restrictions, that are reasonably necessary for the ownership, maintenance and
operation of their respective businesses and the maintenance and operation of the Equipment, and neither Lessee nor any of its Subsidiaries is in material violation of any right of others with respect to the foregoing. 
  
 (iii)  Lessee and its Subsidiaries have filed all federal and other material tax returns and reports required to
be filed and have paid all federal and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties, income or assets and otherwise due and payable, except those which are being or will be
contested in good faith by appropriate proceedings and for which adequate reserves have been provided in accordance with GAAP. Lessee has not received any notice of any proposed tax assessment against Lessee or any of its Subsidiaries that would, if
made, result in a Material Adverse Change. 
  
 (iv)  There exists no Event of Default.

  
 (v)  Lessee is not in default under any agreement with any Person except as set forth
on the Disclosure Schedule attached hereto as Exhibit B. 
  
 (vi)  Attached hereto
as Exhibit C is a true and correct Schedule of Locations of Equipment which sets forth and the locations of all Equipment subject to all Remaining Schedules, a description of the Equipment located at each such location, the street address of
such location, a contact person at such location, and a telephone number for such contact person. 
  
 (vii)  There are no liens or security interests against any equipment or inventory of Lessee, other than purchase money liens and leases in specific items of equipment, and the security interests of Silicon Valley Bank or
(ii) ClearBlue Technologies, Inc. 
  
 (viii)  Since March 1, 2002, no Material Adverse
Change has occurred. 
  
 (ix)  The consent of Silicon Valley Bank to Lessee’s
execution, delivery and performance of this Appendix is not required under any of the agreements between Silicon Valley Bank and Lessee. 
  
 (b)  Negative Covenants. 
  
 Lessee shall not: 
  
 (i)  Engage in any material line of business substantially different from those lines of business carried on by
it or contemplated to be carried on by it (as disclosed to Lessor) as of the Closing Date; 
  
 (ii)  Declare or pay any dividends in respect of Lessee’s capital stock, or purchase, redeem, retire or otherwise acquire for value any of its capital stock now or hereafter outstanding, return any capital to its
shareholders as such, or make any distribution of assets to its shareholders as such, or permit any of its Subsidiaries to purchase, redeem, retire or otherwise acquire for value any stock of Lessee, except that Lessee may (A) declare and deliver
dividends and distributions payable only in common stock of Lessee, (B) purchase, redeem, retire or otherwise acquire shares of its capital stock with the proceeds received from a substantially concurrent issue of new shares of its capital stock,
and (C) repurchase stock owned by employees, directors and consultants of Lessee pursuant to the terms of any employment, consulting or other stock restriction agreements at such time as any such employee, director or consultant terminates his or
her affiliation with Lessee, provided that no Event of Default shall exist either immediately prior to or after giving effect to such repurchase, and provided further that the total amount paid in connection therewith by Lessee shall not exceed
$100,000 in any year. 
 

 A-5 

  
 (iii)  Notwithstanding anything to the contrary in this
Appendix or any Schedule or other Lease Document, move any Equipment from one location to another location without the prior written consent of Lessor, which consent shall not be unreasonably withheld. Lessor shall not withhold its consent if such
Equipment will be located in the United States and Lessee provides to Lessor, prior to moving any such Equipment, a description of the Equipment it intends to transfer, the Schedule number to which such Equipment is subject, the address of the
location from which and to which the Equipment shall be moved, and a Collateral Access Agreement from the lessee or owner. 
  
 (c)  Affirmative Covenants. 
  
 Lessee shall, and shall cause each of its
Subsidiaries to: 
  
 (i)  Maintain and preserve (A) its corporate existence, and (B) all
material copyrights, patents, trademarks, trade names and service marks and other intellectual property rights, and all other material rights, qualifications, permits, licenses, franchises and privileges, necessary or desirable in the ordinary
course of business and operations and the ownership of its properties; 
  
 (ii)  Obtain and
maintain all licenses, authorizations, consents, filings, exemptions, registrations and other governmental approvals of any Governmental Authority necessary (A) in connection with the execution, delivery and performance of the Lease Documents or any
related documents and instruments and the leasing of the Equipment as contemplated thereby, or (B) in the ordinary course of its business and operations and the ownership of its properties, except, in the case of this clause (B), to the extent that
the failure to do so could not reasonably be expected to result in a Material Adverse Change; 
  
 (iii)  Comply in all material respects with all requirements of law of any Governmental Authority having jurisdiction over it or its business, except as may be contested in good faith, or as to which a bona fide dispute may
exist, or where non-compliance could not reasonably be expected to result in a Material Adverse Change; and 
  
 (iv)  Deliver to Lessor not later than 45 days after the end of each Fiscal Year, and 30 days after the end of each of its first three Fiscal Quarters, a consolidated and consolidating balance sheet of Lessee and its
Subsidiaries as at the end of such quarter or year-end date, and the related statements of income and cash flows for such period, all in reasonable detail; provided, that with respect to the year-end financials, Lessee shall deliver to Lessor the
audited financial results as audited by Lessee’s certified independent accountant, as soon as available if such results are available and in any event no later than the 90th day after the end of Lessee’s Fiscal Year. All financial
statements shall be prepared in accordance with GAAP and, in the case of the year-end financials, shall not be subject to any qualifications as to the scope of the audit, nor to any qualifications not reasonably acceptable to Lessor. Lessee shall
deliver to Lessor with each financial statement a Compliance Certificate in substantially the form of Exhibit D attached hereto, of the chief financial officer, controller or treasurer of Lessee as of the end of the applicable accounting
period. 
  
 (v)  On or before June 13, 2002, deliver to Lessor a Collateral Access
Agreement for each location where Equipment subject to any Remaining Schedules is located, substantially in the form of Exhibit E attached hereto. Upon the request of Lessor, Lessee shall assist Lessee to obtain access to such locations for
the purpose of inspecting or removing Equipment, and, without limiting the generality of the foregoing, shall deliver to the lessee or owner of such locations written instructions authorizing such lessee or owner to allow Lessor access to such
facility for the purposes described herein. 
  
 (vi)  Upon any receipt of a notice of
default from Silicon Valley Bank or any other lender or agent, deliver a copy of such notice to Lessor. 
 

 A-6 

  
 (d)  Financial Covenants. 
  
 From the Closing Date through the date that all obligations of Lessee to Lessor are paid in full, including, without limitation, payment
of all Rent, Lessee shall comply with each of the financial covenants set forth below: 
  
 (i)  Minimum Revenue.    Lessee shall have for each Fiscal Quarter ending on the last day of such Fiscal Quarter as set forth below, revenue for such period of not less than the amount set forth
below opposite such Fiscal Quarter: 
  
 
	 Quarterly Period Ending
 
	  	 Revenue
 

	 June 30, 2002
 	  	 $
 	 29,000,000
 
	 September 30, 2002
 	  	 $
 	 31,000,000
 
	 December 31, 2002
 	  	 $
 	 34,000,000
 
	 March 31, 2003
 	  	 $
 	 36,000,000
 
	 June 30, 2003
 	  	 $
 	 38,000,000
 
	 September 30, 2003
 	  	 $
 	 39,000,000
 
	 December 31, 2003 and thereafter
 	  	 $
 	 41,000,000
 

 
  
 (ii)  Minimum
EBITDA.    Lessee shall have for each Fiscal Quarter ending on the last day of such Fiscal Quarter as set forth below, EBITDA for such period of not less than the amount set forth below opposite such Fiscal Quarter:

  
 
	 Quarterly Period Ending
 
	  	 EBITDA
 
	 
	 June 30, 2002
 	  	 $
 	 (10,000,000
 	 )
 
	 September 30, 2002
 	  	 $
 	 (8,000,000
 	 )
 
	 December 31, 2002
 	  	 $
 	 (6,000,000
 	 )
 
	 March 31, 2003
 	  	 $
 	 (5,000,000
 	 )
 
	 June 30, 2003
 	  	 $
 	 (4,000,000
 	 )
 
	 September 30, 2003
 	  	 $
 	 (3,000,000
 	 )
 
	 December 31, 2003 and thereafter
 	  	 $
 	 (2,000,000
 	 )
 

 
  
 (iii)  Minimum Unrestricted Cash
Balance.    The Unrestricted Cash Balance of Lessee shall not, at any time, be less than $10,000,000. 
  

	5.
	 
	AMENDMENT TO MASTER LEASE; ADDITIONAL EVENTS OF DEFAULT. 
 

  
 Section 4.1 (Events of Default) of the Master Lease is hereby deleted in its entirety and replaced with the following: 
  

“4.1 Events of Default 
  
 (a)  Lessee fails to pay any Rent or other amount due under any Lease, Remaining Schedule or other Lease Document within five (5) days after it becomes due and payable; 
  

(b)  any representation or warranty of Lessee made in the Lease or any other Lease Document or otherwise shall have been false or misleading
in any material respect as of the date when it was made; 
  
 (c)  Lessee fails to maintain
insurance as required under the Lease or any Lease Document; 
  
 (d)  Lessee fails to
perform any financial covenant or negative covenant made by it under any Lease or any of the other Lease Documents or fails to deliver any of the financial statements or other reports as and when required under the Lease Documents; 

 
 (e)  Lessee fails to perform or breaches any covenant, condition or agreement made by it under any
Lease, or any of the other Lease Documents, other than a covenant, condition or agreement covered by subsections (a), (b), (c) and (d) above, or subsections (f), (g), (h), (i), (j) and (k) below, and such failure continues for ten (10) days after
Lessor gives notice of such breach to Lessee; provided, if such failure or breach is not capable of being cured it shall constitute an immediate Event of Default; 
 

 A-7 

  
 (f)  bankruptcy, receivership, insolvency,
reorganization, dissolution, liquidation or other similar proceedings are instituted by or against Lessee, any guarantor of any Lease, or all or any part of such Person’s property, under the Federal Bankruptcy Code or other law of the United
States or of any other competent jurisdiction, and, if such proceeding is brought against such Person, it consents thereto or fails to cause the same to be discharged within thirty (30) days after it is filed; 
  
 (g)  Lessee defaults under any agreement with respect to the purchase or installation of any of the Equipment;

  
 (h)  Lessee or any guarantor of any Lease, or any of their respective subsidiaries or
other affiliates, defaults under any other instrument or agreement with CSC or Cisco Systems, Inc., and such default continues after the expiration of any applicable grace period; 
  
 (i)  Lessee or any of its subsidiaries, defaults under any obligation to repay borrowed money of not less than $250,000, or under any lease
obligation, with any other lender or lessor, and such default continues after the expiration of any applicable grace period; 
  
 (j)  there occurs any Material Adverse Change; or 
  
 (k)  there occurs any Change of Control.” 
  

	6.
	 
	REVIVAL OF OBLIGATIONS. 
 

  
 (a)  Lessee acknowledges and agrees that in the event that Lessor shall hereafter be required to refund or disgorge the Buy-Out Payment or any portion thereof, then (i) Schedules 6 through 19 and 4 and 5 shall be
reinstated and the liabilities of Lessee thereunder shall be automatically revived, reinstated and restored as though such Buy-Out Payment or portion thereof had never been paid to Lessor, (ii) the Equipment subject to such Schedules shall continue
to be owned by Lessor as set forth in the Lease, and (iii) the due dates for the Rent due under the Remaining Schedules shall automatically revert back to the due dates that existed prior to the Closing Date and the two year extension for the Rent
payments as set forth in Section 2(b) shall be of no force and effect. 
  

	7.
	 
	USE OF CISCO NAME. 
 

  
 Lessee agrees that it shall not, without Lessor’s prior written consent, disclose the existence or terms of any lease or financing facility with Lessor or use the name or logo of Lessor or Cisco Systems, Inc. in any
press release, advertisement or other public pronouncement, nor represent to any Person that the relationship between Lessee and Lessor or Cisco Systems, Inc. is other than that of seller and lessor of equipment except (i) as agreed to in writing by
Cisco Systems, Inc. or Lessor, or (ii) as required by regulatory authority and then only upon reasonable prior written notification to Lessor and Cisco’s prior written approval which approval will not be unreasonably withheld, delayed or
conditioned. 
  
 8.    CONFLICT OF TERMS.    Notwithstanding that this Appendix is
incorporated into the Master Lease, if there is any direct conflict between the terms of this Appendix and the terms of the Master Lease, the terms of this Appendix shall govern and control. 
  

	9.
	 
	MISCELLANEOUS. 
 

  
 (a)  Further Assurances.    The parties hereto shall execute and deliver such additional documents and take such additional action as may be necessary or desirable to effectuate the provisions and
purposes of this Appendix. 
  
 (b)  Binding Effect.    This Appendix shall be
binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns. 
 

 A-8 

  
 (c)  Survival of Representations and
Warranties.    All representations and warranties made in this Appendix or any other document furnished in connection with this Appendix shall survive the execution and delivery of this Appendix and the other documents, and
no investigation by Lessor shall affect the representations and warranties or the right of Lessor to rely upon them. 
  
 (d)  Severability.    Any provision of this Appendix held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Appendix.

  
 (e)  Governing Law.    The governing law section set forth in the Master
Lease shall apply to this Appendix. 
  
 (f)  Counterparts.    This Agreement may
be executed in any number of counterparts, but all of such counterparts shall together constitute but one and the same agreement. 
  
 (g)  Complete Agreement.    This Agreement together with other Lease Documents constitute the complete and final agreement of the parties hereto, and supersedes all prior or contemporaneous oral
or written communications, proposals, and discussions, with respect to the subject matter hereof. 
  
 [SIGNATURE PAGE
FOLLOWS] 
 

 A-9 

  
 IN WITNESS WHEREOF, Lessor and Lessee have caused this Appendix to be duly
executed by their authorized representatives as of the date first set forth above. 
  
 
	 CISCO SYSTEMS CAPITAL
CORPORATION,
 Lessor
 	 	  	 	 INTERNAP NETWORK SERVICES
CORPORATION
 Lessee
 
	 
	 By:
 	 	 /S/    DAVID A.
ROGAN        
 
	 	  	 	 By:
 	 	 /S/    JOHN M.
SCANLON        
 

	 Title:
 	 	 President, Cisco Capital
 
	 	  	 	 Title:
 	 	 CFO
 

 
 

 A-10Prepared by R.R. Donnelley Financial -- Confirmation of OTC Variable Forward Sale

 Exhibit 10.1 
 
	 
	 [LOGO OF MERRILL LYNCH]
 Confirmation of OTC Variable Forward
Sale
 Transaction
 

 
  
  

	Dated:
	 
	June 3, 2002 
 

 ML Ref: 0281695

  

	To:
	 
	Fisher Communications, Inc. (“Counterparty”) 
 

  

	Attention:
	 
	Warren J. Spector 
 

 tel: (206) 404-6789

 fax: (206) 404-6766  
  

	From:
	 
	 Merrill Lynch International (“MLI”) 
 

 Ropemaker Place 
 25 Ropemaker Street 
 London EC2Y 9L4 
  
 
 
 Dear Sir / Madam:

  
 The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and
conditions of the above-referenced transaction entered into between Counterparty and MLI through its agent Merrill Lynch, Pierce, Fenner & Smith (“MLPFS”) on the Trade Date specified below (the
“Transaction”). This Confirmation constitutes a “Confirmation” as referred to in the Master Agreement specified below. 
  
 The definitions and provisions contained in the 2000 ISDA Definitions (the “Swap Definitions”) and the 1996 ISDA Equity Derivatives Definitions (the “Equity
Definitions” and, together with the Swap Definitions, the “Definitions”), in each case as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Confirmation. In the
event of any inconsistency between the Swap Definitions and the Equity Definitions, the Equity Definitions will govern, and in the event of any inconsistency between the Definitions and this Confirmation, this Confirmation will govern. 

 
 This Confirmation supplements, forms part of, and is subject to, the ISDA Master Agreement (including the Schedule thereto)
between Counterparty and MLI dated as of April 5, 2002, as amended and supplemented from time to time (the “Agreement”). All provisions contained in the Agreement govern this Confirmation except as expressly modified below.

  
 The terms of the particular Transaction to which this Confirmation relates are as follows: 

 
 General Terms: 
  

	Trade Date: 
 	March 21, 2002 
 

 

	Effective Date: 
 	April 8, 2002 
 

 

	Termination Date: 
 	October 10, 2006 
 

 

	Seller: 
 	Counterparty 
 

 

	Buyer: 
 	MLI 
 

 

	Shares: 
 	The common stock of SAFECO Corporation (Security Symbol SAFC). 
 

	Issuer: 
 	SAFECO Corporation, a Washington corporation. 
 

 

	Number of Shares: 
 	650,000 
 

 

	Multiplier: 
 	One (1) 
 

 

	Initial Price: 
 	See pricing chart attached hereto on Annex A (“Annex A”) 
 

 

	Floor Price: 
 	See Annex A 
 

 

	Cap Price: 
 	See Annex A 
 

 

	Participation Percentage: 
 	20% 
 

 

	Final Price: 
 	See Annex A 
 

 

	Premium: 
 	See Annex A 
 

 

	Premium Payment Date: 
 	April 11, 2002 
 

 

	Notional Amount: 
 	The USD amount, as determined by the Calculation Agent, equal to the product of the Initial Price and the Number of Shares. 

 

	Additional Payments: 
 	In the event the Shares begin trading ex-dividend on any day from but excluding the Trade Date to and including the Termination Date (the “Dividend
Period”), Counterparty shall pay on the third Business Day following each date that the respective dividend is paid by the Issuer to the holders of the Shares (each such third Business Day, an “Additional Payment
Amount Payment Date”) an amount equal to the Additional Payment Amount (defined below) for such Additional Payment Amount Payment Date; provided that Counterparty may elect, on not fewer than five (5) Business Days’ notice prior to
any Additional Payment Amount Payment Date, that, in lieu of paying the Additional Payment Amount to MLI on such Additional Payment Amount Payment Date, the Calculation Agent shall adjust the Cap Price in a commercially reasonable manner to
compensate MLI for not receiving such Additional Payment Amount. The Calculation Agent shall give Counterparty and MLI notice of any such adjustment not later than the respective Additional Payment Amount Payment Date. 

 

	 	The “Additional Payment Amount” for any Additional Payment Amount Payment Date shall be equal to the product of (i) the Number of Shares
multiplied by (ii) the Reference Delta (defined below) as of the ex-dividend date for such Additional Payment Amount Payment Date multiplied by (iii) the difference between the per Share dividend declared by the Issuer and USD 0.185 (assuming
a quarterly dividend with appropriate adjustments to the terms of this Transaction in the event that the Issuer pays dividends other than on a quarterly basis); provided that such difference is a positive number; and provided further that,
for the avoidance of doubt, if an ex-dividend date occurs with respect to the Shares on or before the Termination Date and no corresponding payments have been received by shareholders of record of the Shares on or before the Termination Date, then
the dividends to which such ex-dividend date relates shall nonetheless give rise to an Additional Payment Amount. 
 

 

	 	“Reference Delta” means, for any date during the Term of this Transaction, the hedge ratio for this Transaction (expressed in percentage
terms, provided such percentage shall not exceed 100%) as determined by MLI in its good faith discretion. 
 

 2 

	 	Notwithstanding the foregoing, no Additional Payment Amount shall be payable in respect of, and the foregoing provisions shall not apply to, any extraordinary
dividend (or other event) that gives rise to an Adjustment (as provided below). 
 

 

	Settlement Currency: 
 	USD 
 

 

	Exchange: 
 	Nasdaq National Market 
 

 

	Related Exchange: 
 	Any exchange(s) on which options contracts related to the Shares are principally traded. 
 

 

	Business Day: 
 	New York 
 

 
 Payment Terms:
 
  

	Payment Period: 
 	The period commencing on the date three (3) Exchange Business Days after the Effective Date and ending on the Termination Date. 

 

	Payments: 
 	Counterparty may from time to time during the Payment Period designate a date on which a “Payment Amount” (as defined below) will be paid as described
herein. Such designation will be made by providing MLI with (i) at least seven (7) Currency Business Days’ prior written notice of the Currency Business Day during the Payment Period (a “Payment Amount Date”) on which
such payment is to be made, and (ii) notice of the portion expressed as a USD amount of the Outstanding Notional Payment Amount for such Payment Amount Date (a “Payment Amount Portion”) 

 

	 	Unless the Payment Amount Portion is equal to the entire Outstanding Notional Payment Amount on such Payment Amount Date, such Payment Amount Portion shall be
equal to at least 20% of the Initial Notional Payment Amount. 
 

 

	 	On each Payment Amount Date, MLI shall pay to Counterparty the Payment Amount. “Payment Amount” means an amount in USD equal to the present
value on a Payment Amount Date of the related Payment Amount Portion (such present value to be determined by the Calculation Agent using a discount rate equal to the Rate for the period from, and including, such Payment Amount Date to, but
excluding, the Settlement Date (the “Payment Calculation Period”), plus Spread). 
 

 

	 	Notwithstanding any provision in this Agreement to the contrary, if at any time during the Term of this Transaction any obligation (whether present or future,
contingent or otherwise) is owed by Counterparty to Merrill Lynch, Pierce, Fenner & Smith, Incorporated (“MLPFS”) (such obligation, a “Loan Obligation”) in respect of borrowed money
(“Counterparty Loan”), Counterparty shall be deemed to have requested at such time a Payment Amount Portion equal to the entire Outstanding Notional Payment Amount, or if the related Payment Amount of the Outstanding Notional
Payment Amount is greater than the Loan Obligation, a Payment Amount Portion with a related Payment Amount equal to the Loan Obligation. Such Payment Amount will not be paid to Counterparty on the related Payment Date, but instead shall be paid to
MLPFS in satisfaction of all or part of such Loan Obligation. Counterparty hereby irrevocably authorizes and instructs MLI to use any such Payment Amount solely to satisfy, in whole or in part, on behalf of Counterparty, any Loan Obligation.

 

 
 

 3 

	Initial Notional Payment Amount: 
 	The Number of Shares * Floor Price 
 

 

	Outstanding Notional Payment Amount: 
 	As of any date during the term of this Transaction, an amount in USD equal to the excess, if any, of (i) the Initial Notional Payment Amount over (ii) (a) the sum
of the Payment Amount Portions for all Payment Amount Dates occurring prior to such date (the “Prepaid Notional Amount”) less (b) the sum of all prior Repayment Amounts. 
 

 

	Repayments: 
 	Counterparty may from time to time during the Payment Period designate a date on which all or a portion of the Prepaid Notional Amount will be re-paid to MLI as
described herein. Such designation will be made by providing MLI with (i) at least seven (7) Currency Business Days’ prior written notice of the Currency Business Day during the Payment Period (a “Repayment Date”) on
which such payment is to be made, and (ii) notice of the portion expressed as a USD amount of the Prepaid Notional Amount to be repaid on such Repayment Date (a “Repayment Amount”). Unless the Repayment Amount is equal to the
entire Outstanding Notional Payment Amount on such Repayment Date, such Repayment Amount shall be equal to at least 20% of the Initial Notional Payment Amount. 
 

 

	 	On the Repayment Date, Counterparty shall pay to MLI an amount in USD equal to (i) the present value on such Repayment Date of the related Repayment Amount (such
present value to be determined by the Calculation Agent using a discount rate equal to the Rate for the period from, and including, such Repayment Date, to but excluding, the Settlement Date (the “Repayment Calculation
Period”), plus Spread) plus (ii) any breakage costs. 
 

 

	Rate: 
 	If the Payment Calculation Period or the Repayment Calculation Period, as applicable, is (i) equal to or less than 360 calendar days, the rate shall be the zero
coupon rate derived from the prevailing LIBOR curve that appears on page IYC1 I5Z of Bloomberg. If such rate does not appear on page IYC1 I5Z of Bloomberg, the rate will be determined as if the parties had specified “USD-LIBOR-BBA”, or
(ii) greater than 360 calendar days, the rate shall be the zero coupon rate derived from the prevailing rate curve that appears on page IYC1 I5Z of Bloomberg. If such rate does not appear on page IYC1 I5Z of Bloomberg, the rate will be determined as
if the parties had specified “USD-ISDA-Swap Rate”, in each case, (x) on a semi-annual basis, (y) with a Day Count Fraction (as defined in the 2000 ISDA Definitions) equal to Actual/360, and (z) interpolated as necessary to account for the
actual number of calendar days within such Payment Calculation Period or Repayment Calculation Period, as reasonably determined by the Calculation Agent 
 

 

	Spread: 
 	See Annex A 
 

 

	Valuation:
	 
	
 

  

	Valuation Time: 
 	At the close of trading on the Exchange. 
 

 

	Valuation Date: 
 	Termination Date 
 

 

	Settlement Terms: 
 	Settlement of this Transaction shall be either Cash Settlement or Physical Settlement, as determined by Counterparty in writing to MLI no less than ten

 

 
 

 4 

  

	 	(10) Business Days prior to the Termination Date. In the event MLI is not notified, the settlement method for this Transaction shall be Cash Settlement.

 

 

	Physical
	 
	Settlement Terms: 
 

  

	Physical Settlement: 
 	On the Settlement Date, Counterparty will deliver the Counterparty Settlement Shares to MLI, and MLI will pay the MLI Settlement Obligation to Counterparty.

 

 

	Settlement Date: 
 	Three (3) Exchange Business Days after the Valuation Date. 
 

 

	 	A.
	 
	MLI shall pay to Counterparty an amount in cash equal to the Outstanding Notional Payment Amount (“MLI Settlement Obligation”).

 

  

	 	B.
	 
	Counterparty shall deliver to MLI a number of Shares equal to the Number of Shares multiplied by the Variability Factor (“Counterparty Settlement
Shares”). 
 

  

	Variability Factor: 
 	A factor calculated by the Calculation Agent on the Valuation Date based on one of the following three scenarios (as applicable): 

 

	                Scenario 1: 
 	If the Final Price is less than the Floor Price, then: 
 

 

	 	        One (1) 
 

 

	                Scenario 2: 
 	If the Final Price is greater than the Cap Price, then: 
 

 

	 	        (Floor Price + ((Final Price—Cap Price) * (1—Participation 
         Percentage))) / Final Price 
 

 

	                Scenario 3: 
 	If the Final Price is greater than the Floor Price and less than the Cap Price, then: 
 

 

	 	        Floor Price / Final Price 
 

 

	Cash
	 
	Settlement Terms: 
 

  

	Cash Settlement: 
 	If the Cash Settlement Amount is a positive number, MLI will pay the Cash Settlement Amount to Counterparty. If the Cash Settlement Amount is a negative number,
Counterparty will pay the absolute value of the Cash Settlement Amount to MLI. Such amounts shall be paid on the Settlement Date. 
 

 

	Cash Settlement Amount: 
 	An amount determined by the Calculation Agent on the Valuation Date based on the following formula: 
 

 

	 	MLI Settlement Obligation – Counterparty Cash Settlement Amount; 
 

 

	 	Where: 
 

 

	 	“Counterparty Cash Settlement Amount” means: 
 

 

	 	        Counterparty Settlement Shares * Final Price 
 

 5 

  

	Conditions to Physical Settlement:  
 	Notwithstanding anything contained herein to the contrary, unless all of the following conditions are met, Cash Settlement shall apply to this Transaction:

 

 

	 	The Shares are in marketable form without restrictive legends, and such Shares shall not be subject to any Transfer Restrictions (as defined below) in connection
with the delivery of the Shares to MLI hereunder or the sale or transfer of such Shares by MLI to a third party, all as determined by MLI in its sole discretion. “Transfer Restriction” means any condition to or restriction on
the ability of the holder of the Shares to sell, assign or otherwise transfer such Shares, including, without limitation, (i) any registration or qualification requirement, prospectus delivery requirement or other similar requirements (other than
any requirements arising from sales of the Shares by MLI pursuant to Rule 144), (ii) any requirement that any sale, assignment or other transfer or enforcement of such Shares be consented to or approved by any person, including, without limitation,
the issuer thereof or any other obligor thereon, (iii) any limitations on the type or status, financial or otherwise, of any purchaser, pledgee, assignee or transferee of such Shares, and (iv) any requirement to deliver any certificate, consent,
agreement, opinion of counsel, notice or any other document of any person to the issuer of, any other obligor on or any registrar or transfer agent for, such Shares, prior to the sale, pledge, assignment or other transfer or enforcement of such
Shares. 
 

 

	Failure to Deliver: 
 	Not applicable. 
 

 

	Clearance System(s): 
 	The principal domestic clearance system customarily settling trades on a delivery versus payment basis on the Shares. 
 

 

	Adjustments:
	 
	
 

  

	Method of Adjustment: 
 	Calculation Agent Adjustment; provided that in the event of the occurrence of a Potential Adjustment Event, the Calculation Agent will determine whether
such Potential Adjustment Event has a diluting or concentrative effect on the theoretical value of the Shares and, if so, will (i) make the corresponding adjustment(s), if any, to the Number of Shares, the Floor Price and the Cap Price and, in any
case, any other variable relevant to the settlement or payment terms of this Transaction as the Calculation Agent determines (in a commercially reasonable manner) appropriate to account for that diluting or concentrative effect and (ii) determine
the effective date(s) of the adjustment(s). 
 

 

	Extraordinary
	 
	Events: 
 

  
         Consequences of Merger Event: 
  

	        (a) Share-for-Share: 
 	Alternative Obligation on the Exchange Business Day immediately following the occurrence of a Merger Event with mutually agreed upon commercially reasonable
adjustments to the terms of the Transaction to preserve the economics of the Transaction as originally bargained for pursuant to the terms stated herein; provided that after the Merger Event, MLI shall be permitted to elect Cancellation and
Payment within three (3) Exchange Business Days immediately following such Merger Event. 
 

 

	        (b) Share-for-Other: 
 	Cancellation and Payment on the Exchange Business Day immediately following the occurrence of a Merger Event. 
 

 
 

 6 

	        (c) Share-for-Combined: 
 	As soon as practicable but not to exceed three (3) Exchange Business Days immediately following the occurrence of a Merger Event has occurred, the parties shall
mutually agree upon appropriate adjustments to the terms of the Transaction, and, if the parties are unable to so agree, Cancellation and Payment shall apply. 
 

 

	        Nationalization or Insolvency 
 	Negotiated close out. 
 

 
 Additional Provisions: 
  

	Events of Default: 
 	For the sole purpose of this Transaction and provided that no other transactions under the Agreement other than this Transaction or other substantially similar
variable forward sale transactions shall be outstanding between Counterparty and MLI, (i) the “Cross Default” provisions of Section 5(a)(vi) of the Agreement will not apply to MLI and will apply to Counterparty, and for such purpose,
“Specified Indebtedness” means solely any Counterparty Loan and the “Threshold Amount” means zero and (ii) the “Credit Event Upon Merger” provisions of Section 5(b)(iv) of the Agreement will not apply to MLI and will
not apply to Counterparty. 
 

 

	Additional Termination Event: 
 	The occurrence of a Hedging Disruption Event shall constitute an Additional Termination Event with respect to Counterparty, giving MLI the right to designate an
Early Termination Date in respect of this Transaction. For this purpose, “Hedging Disruption Event” means (i) any inability of MLI due to market illiquidity, Illegality (as defined in the Agreement, but with respect to the transaction
hedge) or lack of availability of third-party institutional stock lenders or MLI otherwise being unable to borrow the Shares, to establish, re-establish or maintain any hedging transaction(s) necessary in the normal course of MLI’s business of
hedging the price and market risk of entering into and performing under the Transaction, provided that if MLI is able to borrow Shares from MLPFS under the Counterparty Loan or from Counterparty (including by way of rehypothecation as contemplated
in the Collateral provision hereunder) this clause (i) shall not apply; or (ii) an increase in the cost of borrowing the Shares (from an entity other than Counterparty) and Counterparty’s failure (within five (5) Business Days of its receipt of
written notice from MLI in this regard) to agree to adjustments to the terms of the Transaction as the Calculation Agent, in its reasonable discretion, deems necessary to compensate MLI for such increase in costs, including, without limitation, any
costs incurred by MLI during such five (5) Business Day period. 
 

 

	Absence of Certain Events Representation 
 	Section 3(b) of the Agreement is hereby amended by adding the following clause at the beginning of the first line thereof: “Except as previously disclosed in
writing by Counterparty to MLI,”. 
 

 

	Calculation Agent: 
 	MLI; provided that the Calculation Agent shall make all calculations and determinations in connection with this Transaction in good faith and in a
commercially reasonable manner. 
 

 

	Non-Reliance: 
 	Each party represents to the other party that it is acting for its own account, and has made its own independent decisions to enter into this Transaction and as to
whether this Transaction is appropriate or proper for it based on its own judgment and upon advice from such advisors as it has deemed necessary. It is not relying on any communication (written or oral) of the other party as 

 
 

 7 

	 	investment advice or as a recommendation to enter into this Transaction, it being understood that information and explanations related to the terms and conditions
of this Transaction shall not be considered investment advice or a recommendation to enter into this Transaction. No communication (written or oral) received from the other party shall be deemed to be an assurance or guarantee as to the expected
results of this Transaction. 
 

 

	Governing Law:  
 	The laws of the State of New York, including, without limitation, Sections 5-1401 and 5-1402 of the New York General Obligations Law. 

 

	Collateral: 
 	On or prior to the Trade Date, Counterparty shall have delivered and shall thereafter continually maintain with MLI or its custodian
(“Custodian”) during the Term of this Transaction, 650,000 Shares and a stock transfer power related thereto (such Shares, the “Collateral”). 
 

 

	 	Counterparty represents that (i) it is the legal and record owner of all Collateral free of all liens, claims, equities, and encumbrances, (ii) it has the power
and has obtained all of the necessary consents and approvals to grant to MLI a legal, valid, binding and enforceable first priority security interest in, and lien on, the Collateral, and (iii) the pledge of the Collateral shall not breach any
covenant in any agreement or contract entered into by Counterparty or any Affiliate thereof. 
 

 

	 	Counterparty represents that on the Trade Date it granted, and will grant throughout the Term of this Transaction, MLI a first-priority security interest in, and a
first-priority lien on, the Collateral for its obligations under this Transaction and the Agreement; provided, however, that if any Counterparty Loan is outstanding at any time from and including the Trade Date to but excluding the
third Exchange Business Day immediately following the Effective Date, MLI’s security interest will be subordinate to any security interest and/or lien on the Collateral granted in favor of MLPFS in connection with such Counterparty Loan.

 

 

	 	Notwithstanding Section 9-207 of the New York Uniform Commercial Code, MLI will have the right to (i) sell, pledge, rehypothecate, assign, invest, use, commingle
or otherwise dispose of, or otherwise use in its business, any Collateral it holds free from any claim or right of any nature whatsoever of Counterparty, including any equity or right of redemption by Counterparty (“Use of
Collateral”), provided that MLI shall not have Use of Collateral five Exchange Business Days following the effectiveness of notice from Counterparty to MLI restricting MLI’s Use of Collateral, and (ii) register any
Collateral in the name of MLI, its Custodian or a nominee for either. For the avoidance of doubt, nothing in the foregoing is intended to restrict or impede in any way MLI’s ability to foreclose, sell, dispose of, or otherwise exercise its
rights and remedies with respect to the Collateral upon a Counterparty Event of Default or Termination Event. 
 

 

	 	Upon the occurrence of an Event of Default or Termination Event under the Agreement, MLI or its Custodian shall have all of the rights with respect to the
Collateral of a secured party under the New York Uniform Commercial Code (“UCC”). MLI or its Custodian shall not be liable for any loss or damages occasioned by any sale or disposal of the Collateral.

 

 

	 	Counterparty will use its best efforts to preserve and protect MLI’s security interest in the Collateral, will defend MLI’s right, title, lien, and
security interest in and to the Collateral against the claims and demands of all persons whomsoever, and will do all such acts and things and deliver all such documents 
 

 
 

 8 

  

	 	and instruments, including without limitation further pledges, assignments, financing statements, and continuation statements, as MLI and its Custodian may
reasonably deem necessary or advisable from time to time in order to preserve, protect, and perfect such security interest or to enable MLI or its Custodian to exercise or enforce its rights with respect to any Collateral. 

 

	 	Counterparty will not permit any lien, security interest, adverse claim, restriction on transfer or, other encumbrance, other than the lien and security interest
Counterparty created hereby in favor of MLI, to exist upon any of the Collateral. 
 

 

	 	Counterparty will not take any action that could in any way limit or adversely affect the ability of MLI to realize upon its rights in the Collateral.

 

 

	 	Each of Counterparty and MLI shall perform its obligations and exercise its rights hereunder, as applicable, in compliance with the terms of the UCC. 

 

	Representations
	 
	 
 

	and Covenants of Counterparty:  
 	Counterparty (i) has such knowledge and experience in financial and business affairs as to be capable of evaluating the merits and risks of entering into the
Transaction; (ii) has consulted with its own legal, financial, accounting and tax advisors in connection with the Transaction; (iii) is entering into the Transaction for a bona fide business purpose to hedge an existing position; and (iv)
acknowledges that in return for downside protection against a decline in the market price of the Shares below the Floor Price, Counterparty is foregoing, in part, the upside value of an increase in the market price of the Shares above the Cap
Price. 
 

 

	 	Neither Counterparty nor any person who would be considered to be the same “person” (as such term is used in Rule 144(a)(2) under the Securities
Act of 1933, as amended (the “Securities Act”)), has sold any Shares (or security entitlements in respect thereof) or hedged (through swaps, options, short sales or otherwise) any long position in the Shares (or
security entitlements in respect thereof), including, without limitation, any sales pursuant to an agreement by any such persons to act in concert for the purpose of selling such Shares, during the preceding three (3) months prior to the Trade Date
of this Transaction. Counterparty covenants and agrees that until the Effective Date, it will not sell, nor will it permit any person to sell, Shares without the prior written consent of MLI. For the purposes of this paragraph, Shares shall be
deemed to include securities convertible into or exchangeable or exercisable for Shares and any other security or instrument that would be subject to aggregation under Rule 144(e) under the Securities Act. As of the Trade Date, Counterparty owns
3,002,376 Shares. 
 

 

	 	Counterparty does not know or have any reason to believe that the Issuer has not complied with the reporting requirements contained in Rule 144(c)(1) under the
Securities Act. 
 

 

	 	Counterparty acknowledges and agrees that (i) it has not taken and will not take any action that would cause any sale deemed to be made under the Interpretive
Letter (as defined below) to exceed the volume limitation of Rule 144(e), (ii) it has not taken and will not take any action that could cause any sale deemed to be made under the Interpretive Letter to fail to meet all applicable requirements of
Rule 144 and (iii) on the Trade Date of this Transaction it has transmitted a Form 144 for filing with the Securities and Exchange Commission. 
 

 9 

  

	 	Counterparty covenants that it will send to MLI via facsimile a copy of each Form 144 and each filing under Section 13 or 16 of the Securities and Exchange Act
relating to this Transaction concurrently with filing or transmission for filing, as the case may be, of such form to or with the SEC. 
 

 

	 	As of the Trade Date of this Transaction, the Shares are eligible for resale under Rule 144. Counterparty shall comply with the terms of the interpretive letter
from the SEC to Goldman, Sachs & Co. dated December 20, 1999 (the “Interpretive Letter”). 
 

 

	 	The directors, officers and/or employees of Counterparty (“Contract Persons”) who are directly or indirectly involved with
the negotiation, execution and delivery of this Agreement and the performance of the transactions contemplated by this Agreement have no material, nonpublic information in respect of the Issuer and had no such information on each day from and
including the Trade Date to and including the Effective Date. Counterparty further represents that (1) as of the Trade Date it had established and implemented written policies and procedures to ensure that no Contract Person will violate federal and
state securities laws prohibiting the purchase or sale of securities on the basis of material nonpublic information in connection with this Agreement and this Transaction and (2) if any third-party cause of action asserts that Counterparty has
violated such federal and state securities laws, Counterparty may duly and in good faith assert in its responsive pleading an affirmative defense under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. 

 

	 	Counterparty represents that all proceeds from the Counterparty Loan and any other credit facility entered into by Counterparty as of the date hereof through and
including March 31, 2002 shall be used to satisfy in full all outstanding payment obligations (principal, interest or otherwise) of Counterparty pursuant to (i) the Credit Agreement dated as of May 26, 1998 among Counterparty, Bank of America, N.A.,
and U.S. Bank National Association, as lenders, and Bank of America, N.A., as administrative agent, as amended; and (ii) the Credit Agreement dated as of June 24, 1999 among Counterparty, the various lenders thereto, Bank of America, N.A., as
administrative agent, and Credit Suisse First Boston, as syndication agent, as amended. A breach of this representation shall constitute an Additional Termination Event with respect to Counterparty with Counterparty as the Affected Party, giving MLI
a right to designate an Early Termination Date (as defined in the ISDA Master Agreement). 
 

 

	 	Counterparty is not and has not been the subject of any civil proceeding of a judicial or administrative body of competent jurisdiction that could reasonably be
expected to impair materially Counterparty’s ability to perform its obligations hereunder. 
 

 

	 	Counterparty will by the next succeeding Business Day notify MLI upon obtaining knowledge of the occurrence of any event that would constitute an Event of Default,
a Potential Event of Default or a Potential Adjustment Event. 
 

 

	 	As of the Effective Date, Counterparty is not insolvent. 
 

 

	Representation of MLI:  
 	MLI hereby represents and warrants to, and agrees with, Counterparty that it shall comply with (i) the terms of the Interpretive Letter and (ii) the manner of sale
requirements of Rule 144 (f) and (g) in connection with the sale of Shares during the hedge period. 
 

 10 

	Acknowledgements: 
 	(1)    The parties acknowledge and agree that there are no other representations, agreements or other undertakings of the parties in relation
to this Transaction, except as set forth in this Confirmation or in the Agreement. 
 

 

	 	(2)    The parties hereto intend for: 
 

 

	 	(a)    this Transaction to be a “securities contract” as defined in Section 741(7) of Title 11 of the United States Code (the
“Bankruptcy Code”), qualifying for the protections under Section 555 of the Bankruptcy Code; 
 

 

	 	(b)    a party’s right to liquidate this Transaction and to exercise any other remedies upon the occurrence of any Event of Default under
the Agreement with respect to the other party to constitute a “contractual right” as defined in the Bankruptcy Code; 
 

 

	 	(c)    any cash, securities or other property provided as performance assurance, credit, support or collateral with respect to this Transaction
to constitute “margin payments” as defined in the Bankruptcy Code; and 
 

 

	 	(d)    all payments for, under or in connection with this Transaction, all payments for the Shares and the transfer of such Shares to
constitute “settlement payments” as defined in the Bankruptcy Code. 
 

 

	 	(3)    The parties acknowledge and agree that in the event of an Early Termination Date as a result of an Event of Default, the amount payable
under the Agreement will be a cash amount calculated as described therein and that the deliveries specified in this Transaction will no longer be required. 
 

 

	 	(4)    Upon the execution of this Confirmation, the Agreement shall constitute a “Final Agreement” within the meaning of the
Interpretive Letter. 
 

 

	Interpretation: 
 	For purposes of the Equity Definitions, this Transaction will be deemed to be a Physically-settled Share Option Transaction if Physical Settlement applies and a
Cash-settled Share Option Transaction if Cash Settlement applies, in either case with an Exercise Date equal to the Valuation Date. 
 

 

	Indemnity: 
 	Counterparty agrees to indemnify MLI and its Affiliates and their respective directors, officers, agents and controlling parties (MLI and each such person being an
“Indemnified Party”) from and against any and all losses, claims, damages and liabilities, joint and several, to which such Indemnified Party may become subject under, in connection with, relating to, or arising out
of, this Agreement or Transaction with respect to any applicable securities laws and will reimburse any Indemnified Party for all reasonable expenses (including reasonable legal fees and reasonable expenses) as they are incurred in connection with
the investigation of, preparation for, or defense of any pending or threatened claim or any action or proceeding arising therefrom, whether or not such Indemnified Party is a party thereto. Counterparty will not be liable under this Indemnity
paragraph to the extent that any loss, claim, damage, liability or expense is found in a final judgment by a court to have resulted from MLI’s gross negligence, fraud, bad faith and/or willful misconduct. 
 

	

	

 

 11 

 Please confirm that the foregoing correctly sets forth the terms of our agreement by executing the copy of this
Confirmation enclosed for that purpose and returning it to us by facsimile transmission to the attention of: Peter Barna (Telecopier No. 212-738-1069). 
  
 Very truly yours, 
  
 MERRILL LYNCH INTERNATIONAL 
  
 
	 
	 By:
 	 	 /s/    CHERYL DENNERLIEN
 

	  	 	 Name:
 Title:
 

 
  
 Confirmed as of the date first above written: 
  
  
 FISHER COMMUNICATIONS, INC. 
  
  
 
	 
	 By:
 	 	 /s/    WARREN SPECTOR
 

	  	 	 Name:
 Title:
 

 
  
  
 Acknowledged and agreed as to matters relating to
the Agent: 
  
  
 MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, 
 solely in its capacity as Agent hereunder 
  
 
	 
	 By:
 	 	 /s/    VIVIAN JACKSON
 

	  	 	 Name:
 Title:
 

 
 

 12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]