Document:

Blueprint

Exhibit 10.2

 

EXECUTION VERSION

 

 

This
AMENDMENT No. 1 (this “Amendment”), dated as of May 9,
2019, by and among FUSION CONNECT, INC., a Delaware corporation
(the “Borrower”), CERTAIN SUBSIDIARIES
OF THE BORROWER party hereto, as Guarantor Subsidiaries, the
LENDERS party hereto and WILMINGTON TRUST, NATIONAL ASSOCIATION
(“Wilmington
Trust”), as Administrative Agent.

 

 

RECITALS

 

WHEREAS, reference is made to the First
Lien Credit and Guaranty Agreement, dated as of May 4, 2018, among
the Borrower, the Guarantor Subsidiaries, the lenders from time to
time party thereto (the “Lenders”) and the Administrative
Agent (the “Credit
Agreement”), as amended by this Amendment (the
“Amended Credit
Agreement”);

 

WHEREAS, reference is also made to the
First Lien Pledge and Security Agreement, dated as of May 4, 2018
(the “Pledge and Security
Agreement”; and the Pledge and Security Agreement as
amended hereby, being the “Amended Pledge and Security
Agreement”), among the Borrower, the other grantors
from time to time party thereto and the Administrative
Agent.

 

WHEREAS, the Borrower wishes to incur a
new term loan facility (the “Super Senior Term Facility”) in an
aggregate principal amount of $15,000,000 (the “Super Senior Term Loans”) pursuant
to a Super Senior Secured Credit Agreement to be dated on or about
the date of this Amendment (the “Super Senior Credit Agreement”)
among, inter alia, the
Borrower, Wilmington Trust, National Association, as administrative
agent and collateral agent, and the lenders party thereto to
provide for, among others, the establishment of the Super Senior
Term Facility and the extension of Super Senior Term Loans to the
Borrower; and

 

WHEREAS, the Borrower has requested that
the Administrative Agent and the Requisite Lenders amend the Credit
Agreement and the Pledge and Security Agreement as set forth herein
in connection with the foregoing;

 

NOW, THEREFORE, in consideration of the
premises contained herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound
hereby, agree as follows:

 

Section
1. Definitions.
Each capitalized term used and not otherwise defined in this
Amendment shall have the meaning assigned to such term in the
Amended Credit Agreement.

 

Section
2. Amendments to
Credit Agreement.

 

(a) With effect as of
the Amendment No. 1 Effective Date, the Credit Agreement is hereby
amended to delete the stricken text (indicated textually in the
same manner as the following example: stricken
text) and to add the double-underlined text (indicated
textually in the same manner as the following example: 
underlined text) as set forth in the marked blacklined copy
of the Amended Credit Agreement attached as Annex I hereto (which shall be
the Amended Credit Agreement). Said Annex I has been blacklined to
show all changes from the Credit Agreement as in effect immediately
prior to the date hereof, it being agreed that, by virtue of this
Amendment upon the effectiveness hereof, any amendments or other
modifications to the Credit

 

 

 

 

 

(b) Agreement prior to
the date hereof that are not reflected in said Annex I (other than as set
forth in the Forbearance Agreement, dated as of April 15, 2019 (as
amended, supplemented or otherwise modified from time to time, the
“Forbearance Agreement”) shall cease to be in effect
or, as the case may be, shall be modified as set forth in said
Annex I, and
Annex I shall for
all purposes be deemed to constitute the Amended Credit Agreement,
which is amended, supplemented and otherwise modified as set forth
in the Forbearance Agreement.

 

(c) With effect as of
the Amendment No. 1 Effective Date, the Credit Agreement is hereby
further amended to add each of the below described Schedules to the
Credit Agreement in proper numeric order in the forms attached as
Schedule IV hereto:

 

6.1A                      Indebtedness
as of the Amendment No. 1 Effective Date

 

6.2A                      Liens
as of the Amendment No. 1 Effective Date

 

6.6A                      Investments
as of the Amendment No. 1 Effective Date

 

Section
3. Amendments to
Pledge and Security Agreement.

 

(a) With effect as of
the Amendment No. 1 Effective Date, the Pledge and Security
Agreement is hereby amended to delete the stricken text (indicated
textually in the same manner as the following example: stricken
text) and to add the double-underlined text (indicated
textually in the same manner as the following example: 
underlined text) as set forth in the marked blacklined copy
of the Amended Pledge and Security Agreement attached as
Annex II hereto
(which shall be the Amended Pledge and Security Agreement). Said
Annex II has been
blacklined to show all changes from the Pledge and Security
Agreement as in effect immediately prior to the date hereof, it
being agreed that, by virtue of this Amendment upon the
effectiveness hereof, any amendments or other modifications to the
Pledge and Security Agreement prior to the date hereof that are not
reflected in said Annex
II (other than as set forth in the Forbearance Agreement)
shall cease to be in effect or, as the case may be, shall be
modified as set forth in said Annex II, and Annex II shall for all purposes
be deemed to constitute the Amended Pledge and Security Agreement,
which is amended, supplemented and otherwise modified as set forth
in the Forbearance Agreement.

 

(b) With effect as of
the Amendment No. 1 Effective Date, Schedule I of the Pledge and
Security Agreement is hereby amended and restated as set forth in
Schedule I hereto.

 

(c) With effect as of
the Amendment No. 1 Effective Date, the Pledge and Security
Agreement is hereby further amended to add Schedule IV to the
Security Agreement in the form attached as Schedule II
hereto.

 

Section
4. Representations and
Warranties.

 

(a) Each of the Credit
Parties has all requisite power and authority to execute and
deliver this Amendment and to perform the transactions contemplated
hereby.

 

 

 

 

(b) This Amendment,
each other Credit Document as amended hereby and the transactions
contemplated hereby and thereby have been duly authorized by all
necessary corporate or other organizational and, if required,
stockholder, shareholder or other equityholder action on the part
of each Credit Party.

 

(c) This Amendment,
each other Credit Document as amended hereby and the transactions
contemplated hereby and thereby do not and will not (a) violate any
applicable law, including any order of any Governmental Authority,
(b) violate the Organizational Documents of the Borrower or any
Restricted Subsidiary, (c) violate or result (alone or with notice
or lapse of time, or both) in a default under any Contractual
Obligation of the Borrower or any Restricted Subsidiary, or give
rise to a right thereunder to require any payment, repurchase or
redemption to be made by the Borrower or any Restricted Subsidiary,
or give rise to a right of, or result in, any termination,
cancelation or acceleration or right of renegotiation of any
obligation thereunder, or (d) except for Liens created under
the Credit Documents, the Super Senior Credit Documents or the
Second Lien Credit Documents, result in or require the creation or
imposition of any Lien on any asset of the Borrower or any
Restricted Subsidiary.

 

(d) This Amendment,
each other Credit Document as amended hereby and the transactions
contemplated hereby and thereby do not and will not require any
registration with, consent or approval of, notice to, or other
action by any Governmental Authority, except (a) such as have been
obtained or made and are in full force and effect, (b) filings
and recordings with respect to the Collateral necessary to perfect
Liens created and (c) filings and registrations under applicable
securities laws relating to the Disposition by the Collateral Agent
pursuant to the Pledge and Security Agreement of Collateral that
constitute Securities.

 

(e) This Amendment,
each other Credit Document as amended hereby has been duly executed
and delivered by each Credit Party that is a party hereto and is
the legally valid and binding obligation of such Credit Party,
enforceable against such Credit Party in accordance with its terms,
except as enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or limiting
creditors’ rights generally or by equitable principles
relating to enforceability.

 

Section
5. Effectiveness.
This Amendment and each of the amendments to the Credit Documents
referenced herein shall become effective on the date (such date,
the “Amendment No. 1 Effective
Date”) that the following conditions have been
satisfied:

 

(a) The Administrative
Agent shall have received fully-executed counterparts of this
Amendment from the Borrower and each other Credit Party, the
Requisite Lenders and the Administrative Agent or evidence
satisfactory to the Administrative Agent and the Requisite Lenders
that each such party has signed a counterpart of this
Amendment.

 

(b) The Administrative
Agent shall have received evidence that the Super Senior Credit
Agreement has been duly executed and delivered by all parties
thereto and that all of the conditions precedent specified in
Section 3.1 of the Super Senior Credit Agreement shall have been,
or substantially concurrently with the Amendment No. 1 Effective
Date shall be, satisfied or waived, in accordance with the terms
and conditions thereunder.

 

 

 

 

(c) The representations
and warranties in Section 4 of this Amendment shall be true and
correct in all material respects, in each case on and as of the
Amendment No. 1 Effective Date.

 

Section
6. Entire
Agreement. THIS AMENDMENT
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 (BUT DOES NOT SUPERSEDE ANY PROVISIONS OF ANY
SEPARATE CONFIDENTIALITY AGREEMENT OR SIMILAR AGREEMENT OR FEE
LETTER BETWEEN OR AMONG ANY CREDIT PARTIES AND ANY AGENT OR LENDER
OR ANY AFFILIATE OF ANY OF THE FOREGOING, ALL OF WHICH PROVISIONS
SHALL REMAIN IN FULL FORCE AND EFFECT).

 

Section
7. Credit
Document. Each party hereto acknowledges and agrees that
this Amendment constitutes a “Credit Document” for all
purposes of the Amended Credit Agreement and the other Credit
Documents.

 

Section
8. Governing Law;
Jurisdiction; Consent to Service of Process.

 

(a) THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER (INCLUDING ANY CLAIMS SOUNDING IN CONTRACT
LAW OR TORT LAW ARISING OUT OF THE SUBJECT MATTER HEREOF AND ANY
DETERMINATIONS WITH RESPECT TO POST-JUDGMENT INTEREST) SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT
OF LAWS PRINCIPLES THEREOF THAT WOULD RESULT IN THE APPLICATION OF
ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW
YORK.

 

(b) SUBJECT
TO CLAUSE (E) BELOW, ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY
PARTY HERETO ARISING OUT OF OR RELATING HERETO OR ANY OTHER CREDIT
DOCUMENT, OR ANY OF THE OBLIGATIONS, SHALL BE BROUGHT EXCLUSIVELY
IN ANY FEDERAL COURT OF THE UNITED STATES OF AMERICA SITTING IN THE
BOROUGH OF MANHATTAN OR, IF THAT COURT DOES NOT HAVE SUBJECT MATTER
JURISDICTION, IN ANY STATE COURT LOCATED IN THE CITY AND COUNTY OF
NEW YORK. BY EXECUTING AND DELIVERING THIS AMENDMENT, EACH PARTY
HERETO, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES,
IRREVOCABLY (A) ACCEPTS GENERALLY AND UNCONDITIONALLY THE EXCLUSIVE
JURISDICTION AND VENUE OF SUCH COURTS (SUBJECT TO CLAUSE (E)
BELOW); (B) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (C) AGREES
THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH
COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT
REQUESTED, TO THE APPLICABLE PARTY AT ITS ADDRESS PROVIDED IN
ACCORDANCE WITH SECTION 10.1 OF THE AMENDED CREDIT AGREEMENT; (D)
AGREES THAT SERVICE AS PROVIDED IN CLAUSE (C) ABOVE

 

 

 

 

(c) IS SUFFICIENT TO CONFER PERSONAL JURISDICTION
OVER THE APPLICABLE CREDIT PARTY IN ANY SUCH PROCEEDING IN ANY SUCH
COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN
EVERY RESPECT; AND (E) AGREES THAT THE AGENTS, THE LENDERS AND THE
ISSUING BANKS RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY CREDIT PARTY
IN THE COURTS OF ANY OTHER JURISDICTION IN CONNECTION WITH THE
EXERCISE OF ANY RIGHTS UNDER ANY CREDIT DOCUMENT OR ANY EXERCISE OF
REMEDIES IN RESPECT OF COLLATERAL OR THE ENFORCEMENT OF ANY
JUDGMENT, AND HEREBY SUBMITS TO THE JURISDICTION OF, AND CONSENTS
TO VENUE IN, ANY SUCH COURT.

 

Section
9. WAIVER OF JURY
TRIAL. EACH OF THE PARTIES
HERETO HEREBY AGREES TO WAIVE ITS RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER
ANY OF THE OTHER CREDIT DOCUMENTS OR ANY DEALINGS BETWEEN THEM
RELATING TO THE SUBJECT MATTER OF THIS LOAN TRANSACTION OR THE
LENDER/BORROWER RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE
OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL
DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE
SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT
CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND
STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER
IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP,
THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS
AMENDMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN
ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND
REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL
AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS
FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS
IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR
IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY
REFERRING TO THIS SECTION 9 AND EXECUTED BY EACH OF THE PARTIES
HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO OR ANY OF THE OTHER
CREDIT DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING
TO THE LOANS MADE HEREUNDER. IN THE EVENT OF LITIGATION, THIS
AMENDMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE
COURT.

 

Section
10. Severability.
In case any provision in or obligation hereunder shall be invalid,
illegal or unenforceable in any jurisdiction, the validity,
legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired
thereby.

 

 

 

 

Section
11. Counterparts.
This Amendment may be executed in any number of counterparts, each
of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but
one and the same instrument. Delivery of an executed counterpart of
a signature page of this Amendment by facsimile or in electronic
format (i.e., “pdf” or “tif”) shall be
effective as delivery of a manually executed counterpart of this
Amendment.

 

Section
12. Headings.
Section headings herein are included herein for convenience of
reference only and shall not constitute a part hereof for any other
purpose or be given any substantive effect.

 

Section
13. Expenses;
Indemnity.

 

(a) The Borrower agrees
to pay promptly all reasonable and documented out-of-pocket fees,
costs and expenses (including the reasonable fees, expenses and
other charges of Davis Polk & Wardwell LLP, Simpson Thacher
& Bartlett LLP, Bennet Jones LLP, Greenhill and Co., and Arnold
& Porter Kaye Scholer LLP) incurred by the Requisite Lenders
and the Administrative Agent in connection with the negotiation,
structuring, documentation and arrangement of this Amendment,
including the preparation, execution, delivery and administration
of this Amendment, the other Credit Documents or any amendments,
modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated thereby shall be
consummated) or any other document or matter requested by the
Borrower or any other Credit Party.

 

(b) Each Credit Party
hereby agrees and confirms that any and all liabilities (including
Environmental Liabilities), obligations, losses, damages (including
natural resource damages), penalties, claims, actions, judgments,
suits, costs (including the costs of any investigation, study,
sampling, testing, abatement, cleanup, removal, remediation or
other response action necessary to remove, remediate, clean up or
abate any Hazardous Materials), expenses and disbursements of any
kind or nature whatsoever (including the reasonable out-of-pocket
fees, expenses and other charges of counsel and consultants for the
Indemnitees in connection with any investigative, administrative or
judicial proceeding or hearing commenced or threatened by any
Person (including by any Credit Party or any Affiliate thereof),
whether or not any such Indemnitee shall be designated as a party
or a potential party thereto (but limited, in the case of any one
such proceeding or hearing, to fees, expenses and other charges of
one firm of primary counsel, one firm of regulatory counsel, and,
if reasonably necessary, one firm of local counsel in each
applicable jurisdiction for all the Indemnitees (and, if any
Indemnitee shall have advised the Borrower that there is an actual
or perceived conflict of interest, one additional firm of primary
counsel, one additional firm of regulatory counsel and, if
reasonably necessary, one additional firm of local counsel in each
applicable jurisdiction for each group of affected Indemnitees that
are similarly situated (in each case, excluding allocated costs of
in-house counsel)), and any fees or expenses incurred by the
Indemnitees in enforcing this indemnity), whether direct, indirect,
special, consequential or otherwise and whether based on any
federal, state or foreign laws, statutes, rules or regulations
(including securities and commercial laws, statutes, rules or
regulations and Environmental Laws), on common law or equitable
causes of action or on contract or otherwise, that may be imposed
on, incurred by or asserted against any such Indemnitee, in
any

 

 

 

(c) manner relating to
or arising out of this Amendment or the transactions contemplated
hereby shall be “Indemnified Liabilities” that are
subject to and covered by the indemnity in Section 10.3 of the
Amended Credit Agreement.

 

Section
14. Effect of
Amendment. Except as expressly set forth herein, (i) this
Amendment shall not by implication or otherwise limit, impair,
constitute a waiver of or otherwise affect the rights and remedies
of the Lenders or the Administrative Agent, in each case under the
Credit Agreement or any other Credit Document, and (ii) shall not
alter, modify, amend or in any way affect any of the terms,
conditions, obligations, covenants or agreements contained in the
Credit Agreement or any other Credit Document. Each and every term,
condition, obligation, covenant and agreement contained in the
Credit Agreement or any other Credit Document is hereby ratified
and re-affirmed in all respects and shall continue in full force
and effect as expressly amended hereby. The execution, delivery and
effectiveness of this Amendment shall not, except as expressly
provided herein or as provided in the exhibits hereto, operate as a
waiver of any right, power or remedy of any Lender or the
Administrative Agent under any of the Credit Documents, or
constitute a waiver of any provision of any of the Credit
Documents. This Amendment shall not extinguish the obligations for
the payment of money outstanding under the Credit Agreement.
Nothing herein contained shall be construed as a substitution or
novation of the obligations outstanding under the Credit Agreement,
which shall remain in full force and effect as expressly modified
hereby or as provided in the exhibits hereto. Nothing implied in
this Amendment or in any other document contemplated hereby shall
be construed as a release or other discharge of any of the Credit
Parties from the Credit Documents. From and after the Amendment No.
1 Effective Date, all references to the Credit Agreement, the
Pledge and Security Agreement or in any Credit Document and all
references in the Credit Agreement or the Pledge and Security
Agreement to “this Agreement,” “hereunder,”
“hereof” or words of like import referring to the
Credit Agreement and/or the Pledge and Security Agreement shall,
unless expressly provided otherwise, be deemed to refer to the
Amended Credit Agreement and/or the Amended Pledge and Security
Agreement, respectively. Each of the Credit Parties hereby consents
to this Amendment and confirms that all obligations of such Credit
Party under the Credit Documents to which such Credit Party is a
party shall continue to apply to the Amended Credit Agreement and
the other Credit Documents as amended hereby. Each Credit Party
hereby ratifies and reaffirms (a) that each of the Credit Documents
to which it is a party has been duly executed and delivered by such
Credit Party to the Administrative Agent and to the Lenders and is
in full force and effect as of the date hereof, (b) its grant of
liens on or security interests in its properties pursuant to the
Credit Documents as security for the Obligations under or with
respect to the Amended Credit Agreement and confirms and agrees
that such liens and security interests secure all of the
Obligations, including any additional Obligations hereafter arising
or incurred pursuant to or in connection with this Amendment, the
Amended Credit Agreement or any other Credit Document; and (c) the
Administrative Agent and the Lenders are and shall be entitled to
all of the rights, remedies and benefits provided for in the Credit
Documents.

 

Section
15. Direction to
Administrative Agent and Collateral Agent. The Lenders party hereto, constituting
the Requisite Lenders, hereby (a) authorize and direct (i) the
Administrative Agent to execute and deliver this Amendment, and
(ii) the Administrative Agent and the Collateral Agent, as
applicable, to execute and deliver (x) the Super Senior
Intercreditor Agreement and (y) a joinder to the Intercreditor
Agreement to join the Super Senior Agent as an

 

 

 

Section
16. Additional First
Lien Obligations Representative to the Intercreditor Agreement, and
(b) acknowledge and agree that (x) the direction in this
Section 15
constitutes a direction from the Lenders under the provisions of
Section 9 of the
Credit Agreement and (y) Sections 9.3 and 9.6 of the Amended Credit
Agreement shall apply to any and all actions taken by the
Administrative Agent and the Collateral Agent in accordance with
such directions.

 

 

 

[Remainder
of page left intentionally blank]

 

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to
be duly executed by their respective authorized officers as of the
day and year first above written.

	
 

	
 

FUSION CONNECT, INC.,

as
Borrower and Grantor

 

By:
/s/ James P. Prenetta,
Jr.

 

Name:
James P. Prenetta, Jr.

 

Title:
Executive Vice President and General Counsel

 

 

FUSION CONNECT, INC.,

as
Borrower and Grantor

 

By:
/s/ James P. Prenetta,
Jr.

 

Name:
James P. Prenetta, Jr.

 

Title:
Executive Vice President and General Counsel

 

	

FUSION NBS ACQUISITION CORP.

FUSION LLC

FUSION BCHI ACQUISITION LLC

FUSION CLOUD SERVICES, LLC

FUSION CB HOLDINGS, INC.

FUSION COMMUNICATIONS, LLC

FUSION MANAGEMENT SERVICES LLC

FUSION TELECOM LLC

FUSION TEXAS HOLDINGS, INC.

FUSION TELECOM OF KANSAS, LLC

FUSION TELECOM OF OKLAHOMA, LLC

FUSION TELECOM OF MISSOURI, LLC

BIRCAN HOLDINGS, LLC

FUSION PM HOLDINGS, INC.

FUSION CLOUD COMPANY LLC

FUSION MPHC GROUP, INC.

FUSION MPHC HOLDING CORPORATION, as Guarantors and
Grantors

 

	

By:

	

/s/
James P. Prenetta, Jr.

	
 

	

Name: James
P. Prenetta, Jr.

	
 

	

Title:
Executive Vice President and General Counsel

 

 

[Fusion
- Signature Page to Amendment No. 1]

 

 

 

FUSION
TELECOM OF TEXAS, LTD., L.L.P, as Grantor

 

By: Fusion Texas Holdings, Inc., its
general partner

	

By:

	

/s/
James P. Prenetta, Jr.

	
 

	

Name: James
P. Prenetta, Jr.

	
 

	

Title:
Executive Vice President and General Counsel

 

[Signature
Page to Amendment No. 1]

 

 

WILMINGTON
TRUST, NATIONAL ASSOCIATION,

as
Administrative Agent

 

 

By:
/s/ Jeffery
Rose

 

 

Name:
Jeffery Rose

 

 

Title:
Vice President

 

 

 

 

 

 

 

 

 

	

GOLDAMN SACHS LENDING PARTNERS, LLC, as a
Lender

 

	

By:

	

/s/
Jamie Minieri

	

Name:

	

Jamie
Minieri

	

Title:

	

Authorized
Signatory

 

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

MUFG UNION BANK, N.A., as a Lender

 

	

By:

	

/s/
John Lilly

	

Name:

	

John
Lilly

	

Title:

	

Director

 

 

 

[Signature
Page to Amendment No. 1]

 

 

 

 

	

CROWN POINT CLO 4 Ltd.

By: Pretium Credit Management, LLC, as Collateral
Manager,

as a Lender

 

	

By:

	

/s/ Gil
Tollinchi

	

Name:

	

Gil
Tollinchi

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

 

 

	

CROWN POINT CLO III, Ltd.

By: Pretium Credit Management, LLC, as Collateral
Manager,

as a Lender

 

	

By:

	

/s/ Gil
Tollinchi

	

Name:

	

Gil
Tollinchi

	

Title:

	

Managing
Director

 

 

[Signature
Page to Amendment No. 1]

 

 

	

CROWN POINT CLO 5 Ltd.

By: Pretium Credit Management, LLC, as Collateral
Manager,

 as a Lender

 

	

By:

	

/s/ Gil
Tollinchi

	

Name:

	

Gil
Tollinchi

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

	

CROWN POINT CLO 6 Ltd.

By: Pretium Credit Management, LLC, as Collateral
Manager,

as a Lender

 

	

By:

	

/s/ Gil
Tollinchi

	

Name:

	

Gil
Tollinchi

	

Title:

	

Managing
Director

 

 

 

 

 

 

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

CROWN POINT CLO 7 Ltd.

By: Pretium Credit Management, LLC, as Collateral
Manager,

as a Lender

 

	

By:

	

/s/ Gil
Tollinchi

	

Name:

	

Gil
Tollinchi

	

Title:

	

Managing
Director

 

 

 

 

[Signature
Page to Amendment No. 1]

 

 

	

CM FINANCE SPV Ltd., as a Lender

 

	

By:

	

/s/Christopher
E. Jansen

	

Name:

	

Christopher
E. Jansen

	

Title:

	

Co
Chief Investment Officer

 

 

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

ELLINGTON CLO MANAGEMENT LLC

On behalf of:

ELLINGTON CLO I, LTD.

ELLINGTON CLO II, LTD.

ELLINGTON CLO III, LTD.

ELLINGTON CLO IV, LTD.

 

	

By:

	

/s/
Mark Heron

	

Name:

	

Mark
Heron

	

Title:

	

Portfolio
Manager

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

GARISON FUNDING 2018-1 LP, as Lender

 By: Garrison Middle Market Funding II GP LLC, its
Collateral Manager

 

	

By:

	

/s/
Daniel Hahn

	

Name:

	

Daniel
Hahn

	

Title:

	

Vice
President

 

	

 

GARISON MIDDLE MARKET FUNDING II SECONDARY LP, as
Lender

 By: Garrison Middle Market Funding II Manager LLC, its
Collateral Manager

 

	

By:

	

/s/
Daniel Hahn

	

Name:

	

Daniel
Hahn

	

Title:

	

Vice
President

 

 

 

	

GARRISON FUNDING 2018-2 LTD., as Lender

By:
Garrison Capital Inc., its Collateral Manager

By:
Garrison Capital Advisers LLC, its Investment Advisers

 

	

By:

	

/s/
Paul Travers

	

Name:

	

Daniel
Hahn

	

Title:

	

Vice
President

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

HALCYON LOAN ADVISORS FUNDING 2014-3 LTD.,

as a
Lender

By:
Halcyon Loan Advisors 2014-3 LLC as Collateral Manager

 

	

By:

	

/s/
David Martino

	

Name:

	

David
Martino

	

Title:

	

Controller

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

HALCYON LOAN ADVISORS FUNDING 2015-1 LTD., as a
Lender

By:
Halcyon Loan Advisors 2015-1 LLC, as Collateral
Manager

 

	

By:

	

/s/
David Martino

	

Name:

	

David
Martino

	

Title:

	

Controller

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

HALCYON LOAN ADVISORS FUNDING 2015-2 LTD., as a
Lender

 

	

By:

	

/s/
David Martino

	

Name:

	

David
Martino

	

Title:

	

Controller

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

HALCYON LOAN ADVISORS FUNDING 2015-3 LTD., as a
Lender

By:
Halcyon Loan Advisors 2015-3 LLC, as Collateral
Manager

 

	

By:

	

/s/
David Martino

	

Name:

	

David
Martino

	

Title:

	

Controller

 

 

[Signature
Page to Amendment No. 1]

 

 

	

HALCYON LOAN ADVISORS FUNDING 2017-1 LTD., as a
Lender

By:
Halcyon Loan Advisors A LLC, as Collateral Manager

 

	

By:

	

/s/
David Martino

	

Name:

	

David
Martino

	

Title:

	

Controller

 

 

[Signature
Page to Amendment No. 1]

 

 

	

HALCYON LOAN ADVISORS FUNDING 2017-2 LTD., as a
Lender

By:
Halcyon Loan Advisors A LLC, as Collateral Manager

 

	

By:

	

/s/
David Martino

	

Name:

	

David
Martino

	

Title:

	

Controller

 

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

HALCYON LOAN ADVISORS FUNDING 2018-1 LTD., as a
Lender

 

	

By:

	

/s/
David Martino

	

Name:

	

David
Martino

	

Title:

	

Controller

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

HALCYON LOAN ADVISORS FUNDING 2018-2 LTD., as a
Lender

By:
Halcyon Loan Advisors 2018-2 LLC, as Collateral
Manager

 

	

By:

	

/s/
David Martino

	

Name:

	

David
Martino

	

Title:

	

Controller

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

IDEO., as a Lender

 

	

By:

	

/s/
Madonna Sequeira

	

Name:

	

Madonna
Sequeira

	

Title:

	

Authorized
Signatory

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

LAKE PLACID FUNDING, as a Lender

 

	

By:

	

/s/
Madonna Sequeira

	

Name:

	

Madonna
Sequeira

	

Title:

	

Authorized
Signatory

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

OCP CLO 2013-4, Ltd., as a Lender

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	

By:

	

/s/
Paul Travers

	

Name:

	

Paul
Travers

	

Title:

	

Portfolio
Manager

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

OCP CLO 2014-5, Ltd., as a Lender

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	

By:

	

/s/
Paul Travers

	

Name:

	

Paul
Travers

	

Title:

	

Portfolio
Manager

 

 

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

OCP CLO 2014-6, Ltd., as a Lender

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	

By:

	

/s/
Paul Travers

	

Name:

	

Paul
Travers

	

Title:

	

Portfolio
Manager

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

OCP CLO 2015-10, Ltd., as a Lender

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	

By:

	

/s/
Paul Travers

	

Name:

	

Paul
Travers

	

Title:

	

Portfolio
Manager

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

OCP CLO 2015-8, Ltd., as a Lender

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	

By:

	

/s/
Paul Travers

	

Name:

	

Paul
Travers

	

Title:

	

Portfolio
Manager

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

OCP CLO 2015-19, Ltd., as a Lender

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	

By:

	

/s/
Paul Travers

	

Name:

	

Paul
Travers

	

Title:

	

Portfolio
Manager

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

OCP CLO 2016-11, Ltd., as a Lender

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	

By:

	

/s/
Paul Travers

	

Name:

	

Paul
Travers

	

Title:

	

Portfolio
Manager

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

OCP CLO 2016-12, Ltd., as a Lender

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	

By:

	

/s/
Paul Travers

	

Name:

	

Paul
Travers

	

Title:

	

Portfolio
Manager

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

OCP CLO 2017-13, Ltd., as a Lender

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	

By:

	

/s/
Paul Travers

	

Name:

	

Paul
Travers

	

Title:

	

Portfolio
Manager

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

OCP CLO 2017-14, Ltd., as a Lender

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	

By:

	

/s/
Paul Travers

	

Name:

	

Paul
Travers

	

Title:

	

Portfolio
Manager

 

 

[Signature
Page to Amendment No. 1]

 

 

	

OCP CLO 2018-15, Ltd., as a Lender

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	

By:

	

/s/
Paul Travers

	

Name:

	

Paul
Travers

	

Title:

	

Portfolio
Manager

 

 

[Signature
Page to Amendment No. 1]

 

 

	

OCP Credit Strategy Fund, as a Lender

By:
Onex Credit Partners, LLC, its manager

 

	

By:

	

/s/
Paul Travers

	

Name:

	

Paul
Travers

	

Title:

	

Portfolio
Manager

 

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

ONEX CLP FUNDING L.P., as a Lender

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	

By:

	

/s/
Paul Travers

	

Name:

	

Paul
Travers

	

Title:

	

Portfolio
Manager

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

Onex Debt Opportunity Fund, LP, as a Lender

By:
Onex Credit Partners, LLC, its investment manager

 

	

By:

	

/s/
Paul Travers

	

Name:

	

Paul
Travers

	

Title:

	

Portfolio
Manager

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

Onex Debt Opportunity Fund, Ltd. as a Lender

By:
Onex Credit Partners, LLC, its investment manager

 

	

By:

	

/s/
Paul Travers

	

Name:

	

Paul
Travers

	

Title:

	

Portfolio
Manager

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

Onex Senior Credit II, LP, as a Lender

By:
Onex Credit Partners, LLC, its investment manager

 

	

By:

	

/s/
Paul Travers

	

Name:

	

Paul
Travers

	

Title:

	

Portfolio
Manager

 

 

[Signature
Page to Amendment No. 1]

 

 

 

	

VC4 Debt Investment (US), LLC, as a Lender

 

	

By:

	

/s/
James Murray

	

Name:

	

James
Murray

	

Title:

	

Authorized
Signature

 

[Signature
Page to Amendment No. 1]

 

 

	

VC5 Debt Investment (Cayman), LTD, as a Lender

 

	

By:

	

/s/
James Murray

	

Name:

	

James
Murray

	

Title:

	

Authorized
Signature

 

 

[Signature
Page to Amendment No. 1]

 

 

	

VECTOR FUSION HOLDINGS CAYMAN, LTD., as a
Lender

 

	

By:

	

/s/
James Murray

	

Name:

	

James
Murray

	

Title:

	

Authorized
Signatory

 

[Signature
Page to Amendment No. 1]

 

 

	

VECTOR TRADING (CAYMAN), L.P., as a Lender

 

	

By:

	

/s/
James Murray

	

Name:

	

James
Murray

	

Title:

	

Authorized
Signatory

 

 

 

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture 28A CLO, Limited, as a Lender

By: its
investment advisor MJX Venture Management II LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture 31 CLO, Limited, as a Lender

By: its
investment advisor MJX Venture Management III LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture 32 CLO, Limited, as a Lender

By: its
investment advisor MJX Asset Management LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture 33 CLO, Limited, as a Lender

By: its
investment advisor MJX Asset Management LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture 35 CLO, Limited, as a Lender

By: its
investment advisor MJX Asset Management LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture XII CLO, Limited, as a Lender

By: its
investment advisor MJX Venture Management LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture XIII CLO, Limited, as a Lender

By: its
investment advisor MJX Venture Management LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture XIV CLO, Limited, as a Lender

By: its
investment advisor MJX Venture Management LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture XV CLO, Limited, as a Lender

By: its
investment advisor MJX Asset Management LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture XVI CLO, Limited, as a Lender

By: its
investment advisor MJX Venture Management II LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture XVII CLO, Limited, as a Lender

By: its
investment advisor MJX Asset Management LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture XVIII CLO, Limited, as a Lender

By: its
investment advisor MJX Venture Management II LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture XIX CLO, Limited, as a Lender

By: its
investment advisor MJX Asset Management LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture XX CLO, Limited, as a Lender

By: its
investment advisor MJX Venture Management LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture XXI CLO, Limited, as a Lender

By: its
investment advisor MJX Venture Management LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture XXII CLO, Limited, as a Lender

By: its
investment advisor MJX Venture Management II LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture XXIII CLO, Limited, as a Lender

By: its
investment advisor MJX Asset Management LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture XXIV CLO, Limited, as a Lender

By: its
investment advisor MJX Asset Management LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture XXV CLO, Limited, as a Lender

By: its
investment advisor MJX Asset Management II LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture XXVI CLO, Limited, as a Lender

By: its
investment advisor MJX Venture Management LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture XXVII CLO, Limited, as a Lender

By: its
investment advisor MJX Venture Management II LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture XXVIII CLO, Limited, as a Lender

By: its
investment advisor MJX Venture Management II LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture XXIX CLO, Limited, as a Lender

By: its
investment advisor MJX Venture Management II LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

 

[Signature
Page to Amendment No. 1]

 

 

	

Venture XXX CLO, Limited, as a Lender

By: its
investment advisor MJX Venture Management II LLC

 

	

By:

	

/s/
Michael Regan

	

Name:

	

Michael
Regan

	

Title:

	

Managing
Director

 

[Signature
Page to Amendment No. 1]

 

 

[Form
of Super Senior Intercreditor Agreement has been
omitted]

 

 

 

 

 

 

 

 

 

Annex I
– Amended Credit Agreement – Attached

 

 

 

 

 

 

 

 

 

 

EXECUTION VERSION

FIRST
LIEN CREDIT AND GUARANTY AGREEMENT

 

dated
as of May 4, 2018,

 

among

 

FUSION
CONNECT, INC.,

as
Borrower,

 

CERTAIN
SUBSIDIARIES OF FUSION CONNECT, INC.,

as
Guarantor Subsidiaries,

 

THE
LENDERS PARTY HERETO

 

and

 

WILMINGTON
TRUST, NATIONAL ASSOCIATION,

as
Administrative Agent and Collateral Agent

 

________________________________________________________

 

GOLDMAN
SACHS LENDING PARTNERS LLC,

MORGAN
STANLEY SENIOR FUNDING, INC.

and

MUFG
UNION BANK, N.A.,

as
Joint Lead Arrangers and Joint Bookrunners,

 

GOLDMAN
SACHS LENDING PARTNERS LLC,

as
Syndication Agent

 

________________________________________________________

 

$595,000,000
Senior Secured First Lien Credit Facilities

________________________________________________________

[CS&M Ref. No. 4025-110]

 

 

 

THE TRANCHE B TERM
LOANS ISSUED PURSUANT TO THIS AGREEMENT WERE ISSUED WITH ORIGINAL
ISSUE DISCOUNT FOR PURPOSES OF SECTION 1271 ET SEQ. OF THE UNITED
STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED FROM TIME TO TIME.
BEGINNING NO LATER THAN 10 DAYS AFTER THE CLOSING DATE, A LENDER
MAY OBTAIN THE ISSUE PRICE, AMOUNT OF ORIGINAL ISSUE DISCOUNT,
ISSUE DATE AND YIELD TO MATURITY OF THE TRANCHE B TERM LOANS BY
SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO THE BORROWER
AT THE ADDRESS SET FORTH IN SCHEDULE 10.01.

[[NYCORP:3699330v29:05/03/2018--08:25
PM]]#91962167v11

 

 

TABLE
OF CONTENTS

Page

 

SECTION
1. DEFINITIONS AND INTERPRETATION  1

1.1. 

Definitions 1

1.2. 

Accounting Terms;
Pro Forma Calculations 7172

1.3. 

Interpretation,
Etc 7273

1.4. 

Classification of
Loans and Borrowings 73

1.5. 

Conditionality
Testing Date 7374

1.6. 

Effectuation of
Transactions 74

 

SECTION
2. LOANS AND LETTERS OF CREDIT  74

2.1. 

Term
Loans 74

2.2. 

Revolving
Loans 7576

2.3. 

Letters of
Credit 7677

2.4. 

Pro Rata Shares;
Obligations Several; Availability of Funds8384

2.5. 

Use of
Proceeds 8385

2.6. 

Evidence of Debt;
Register; Notes 8485

2.7. 

Interest on Loans
and Letter of Credit Disbursements 8486

2.8. 

Conversion/Continuation 8688

2.9. 

Default
Interest 8689

2.10. Fees  8789

2.11. Scheduled
Installments; Repayment on Maturity Date  8890

2.12.Voluntary
Prepayments/Commitment Reductions; Call
Protection  8891

2.13. Mandatory
Prepayments/Commitment Reductions  9093

2.14.Application of
Prepayments; Waivable Mandatory Prepayments  9598

2.15. General
Provisions Regarding Payments  9599

2.16. Ratable
Sharing  97100

2.17. Making
or Maintaining Eurodollar Rate Loans  97101

2.18. Increased
Costs; Capital Adequacy and Liquidity  1004

2.19. Taxes;
Withholding, Etc  1015

2.20. Obligation
to Mitigate  1049

2.21. Defaulting
Lenders  1059

2.22. Replacement
of Lenders  107112

2.23. Incremental
Facilities  108113

2.24. Extension/Modification
Offers  1127

2.25. Refinancing
Facilities  1149

 

SECTION
3. CONDITIONS PRECEDENT  117122

3.1. 

Closing
Date 117122

3.2. 

Each Credit
Extension 1206

 

SECTION
4. REPRESENTATIONS AND WARRANTIES  1217

4.1. 

Organization;
Requisite Power and Authority; Qualification1217

4.2. 

Equity Interests
and Ownership 1217

4.3. 

Due
Authorization 1217

4.4. 

No
Conflict 1217

4.5. 

Governmental
Approvals 1228

4.6. 

Binding
Obligation 1228

4.7. 

Historical
Financial Statements; Projections; Pro Forma Financial
Statements 1228

 

 

 

 

4.8. 

No Material Adverse
Effect 1229

4.9. 

Adverse
Proceedings 1239

4.10. Payment
of Taxes  1239

4.11. Properties  1239

4.12. Environmental
Matters  123130

4.13. No
Defaults  124130

4.14. Investment
Company Act  124130

4.15. Federal
Reserve Regulations  124130

4.16. Employee
Benefit Plans  124130

4.17. Solvency  125131

4.18. Compliance
with Laws  125131

4.19. Disclosure  125131

4.20. Collateral
Matters  125131

4.21. Sanctioned
Persons; Anti-Corruption Laws; PATRIOT Act  126132

4.22. Communications
Regulatory Matters  126133

 

SECTION
5. AFFIRMATIVE COVENANTS  127134

5.1. 

Financial
Statements and Other Reports 127134

5.2. 

Existence,
Licenses, Etc 1307

5.3. 

Payment of
Taxes 1307

5.4. 

Maintenance of
Properties 1307

5.5. 

Insurance 1318

5.6. 

Books and Records;
Inspections 1318

5.7. 

Lenders
Meetings 1329

5.8. 

Compliance with
Laws 1329

5.9. 

Environmental
Matters 1329

5.10. Subsidiaries  1329

5.11. Additional
Collateral  1329

5.12. Further
Assurances  133140

5.13. Maintenance
of Ratings  133140

5.14. Use of
Proceeds  133140

5.15. Post-Closing
Matters  133140

5.16. Vector
Subordinated Note Cash Collateral Account  133140

 

SECTION
6. NEGATIVE COVENANTS  134141

6.1. 

Indebtedness 134141

6.2. 

Liens 1408

6.3. 

No Further Negative
Pledges 142151

6.4. 

Restricted Junior
Payments 143152

6.5. 

Restrictions on
Subsidiary Distributions 145154

6.6. 

Investments 146155

6.7. 

Financial
Covenants 1509

6.8. 

Fundamental
Changes; Disposition of Assets; Equity Interests of
Subsidiaries 151161

6.9. 

Sales and
Leasebacks 153163

6.10. Transactions
with Affiliates  153163

6.11. Conduct
of Business  153163

6.12. Hedge
Agreements  153163

6.13.Amendments or
Waivers of Organizational Documents and Certain
Agreements  153164

6.14. Fiscal
Year  154164

 

 

 

 

 

SECTION
7. GUARANTEE  154164

7.1. 

Guarantee of the
Obligations 154164

7.2. 

Indemnity by the
Borrower; Contribution by the Guarantors154164

7.3. 

Liability of
Guarantors Absolute 155165

7.4. 

Waivers by the
Guarantors 157167

7.5. 

Guarantors’
Rights of Subrogation, Contribution, Etc 157168

7.6. 

Continuing
Guarantee 158168

7.7. 

Authority of the
Guarantors or the Borrower 158169

7.8. 

Financial Condition
of the Credit Parties 158169

7.9. 

Bankruptcy,
Etc 158169

7.10. Keepwell  159170

 

SECTION
8. EVENTS OF DEFAULT  159170

8.1. 

Events of
Default 159170

 

SECTION
9. AGENTS  162173

9.1. 

Appointment of
Agents 162173

9.2. 

Powers and
Duties 163173

9.3. 

General
Immunity 163174

9.4. 

Acts in Individual
Capacity 165176

9.5. 

Lenders’ and
Issuing Banks’ Representations, Warranties and
Acknowledgments 165177

9.6. 

Right to
Indemnity 166178

9.7. 

Successor
Administrative Agent and Collateral Agent167178

9.8. 

Collateral
Documents and Obligations Guarantee 168179

9.9. 

Withholding
Taxes 171183

9.10.Administrative
Agent May File Bankruptcy Disclosure and Proofs of
Claim  172183

9.11. Certain
ERISA Matters  172184

9.12. Concerning
the Vector Facility Arrangements  174186

 

SECTION
10. MISCELLANEOUS  175187

10.1. Notices  175187

10.2. Expenses  176188

10.3. Indemnity  177189

10.4. Set-Off  178190

10.5. Amendments
and Waivers  178191

10.6. Successors
and Assigns; Participations  183195

10.7. Independence
of Covenants  189202

10.8. Survival
of Representations, Warranties and
Agreements  189202

10.9. No
Waiver; Remedies Cumulative  190203

10.10. Marshalling;
Payments Set Aside  190203

10.11. Severability  190203

10.12. Independent
Nature of Lenders’ Rights  190203

10.13. Headings  191203

10.14. APPLICABLE
LAW  191203

10.15. CONSENT
TO JURISDICTION  191204

10.16. WAIVER
OF JURY TRIAL  191204

10.17. Confidentiality  192205

10.18. Usury
Savings Clause  193206

10.19. Counterparts  193206

10.20. Effectiveness;
Entire Agreement  193206

10.21. PATRIOT
Act  194206

 

 

 

 

10.22. Electronic
Execution of Assignments  194206

10.23. No
Fiduciary Duty  194207

10.24. Permitted
Intercreditor Agreements  194207

10.25.Acknowledgement
and Consent to Bail-In of EEA Financial
Institutions  196209

 

 

SCHEDULES:                                                

2.1                   

Commitments

2.3               Letter
of Credit Issuing Commitments

4.2               Equity
Interests and Ownership

4.11(b)                      Real
Estate

6.1               Indebtedness

6.1A               Indebtedness
as of the Amendment No. 1 Effective Date

6.2               Liens

6.2A               Liens

as of the Amendment No. 1 Effective Date

6.3               Negative
Pledges

6.5               Restrictions
on Subsidiary Distributions

6.6               Investments

6.6A               Investments
as of the Amendment No. 1 Effective Date

6.10               Affiliate
Transactions

10.1               Notices

 

EXHIBITS:                                 

A                

Assignment
Agreement

B               Closing
Date Certificate

C               Compliance
Certificate

D               Conversion/Continuation
Notice

E               Counterpart
Agreement

F               Funding
Notice

G Intercompany
Indebtedness Subordination Agreement

H               Intercompany
Note

I               Intercreditor
Agreement

J               Issuance
Notice

K               Pledge
and Security Agreement

L               Solvency
Certificate

M               Supplemental
Collateral Questionnaire

N               Form
of Note

O-1 

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

O-2 

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

O-3 

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

O-4 

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

 

 

 

FIRST LIEN CREDIT AND GUARANTY AGREEMENT
dated as of May 4, 2018, among FUSION CONNECT, INC., a Delaware
corporation (the “Borrower”), CERTAIN SUBSIDIARIES OF THE BORROWER
party hereto, as Guarantor Subsidiaries, the LENDERS party hereto and WILMINGTON TRUST, NATIONAL ASSOCIATION
(“Wilmington
Trust”), as Administrative Agent and Collateral
Agent.

 

The Lenders have
agreed to extend credit facilities to the Borrower in an aggregate
principal amount of $595,000,000, consisting of Tranche A Term
Loans in an aggregate principal amount of $45,000,000, Tranche B
Term Loans in an aggregate principal amount of $510,000,000 and
Revolving Commitments in an aggregate initial amount of
$40,000,000.

 

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

 

SECTION
1. DEFINITIONS
AND INTERPRETATION

 

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

 

“Acquired Company” means Birch
Communications Holdings, Inc., a Georgia corporation.

 

“Acquired Company Indemnity Letter
Agreement” means the letter agreement dated August 26,
2017, pursuant to which BCHI Holdings, LLC, a Georgia limited
liability company, agreed to indemnify the Borrower and its
Subsidiaries with respect to certain Adverse Proceedings, as such
letter agreement is in effect on the Closing Date.

 

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

 

“Acquisition Consideration” means,
with respect to any Acquisition, the purchase consideration for
such Acquisition, whether paid in Cash or other property (valued at
the fair value thereof, as determined reasonably and in good faith
by an Authorized Officer of the Borrower), but excluding any
component thereof consisting of Equity Interests in the Borrower
(other than any Disqualified Equity Interests) and whether payable
at or prior to the consummation of such Acquisition or deferred for
payment at any future time, whether or not any such future payment
is subject to the occurrence of any contingency, and including (a)
any earnouts and other agreements to make any payment the amount of
which is, or the terms of payment of which are, in any respect
subject to or contingent upon the revenues, income, cash flows or
profits (or the like) of the Person or assets being acquired,
provided that any
such future payment that is subject to a contingency shall be
considered Acquisition Consideration only to the extent of the
reserve, if any, required under GAAP to be established by the
Borrower or any Restricted Subsidiary in respect thereof at the
time of the consummation of such Acquisition, and (b) the aggregate
amount of Indebtedness assumed by the Borrower or any Restricted
Subsidiary in connection with such Acquisition.

 

 

 

 

 

“Adjusted Eurodollar Rate” means,
for any Interest Period for a Eurodollar Rate Loan, the rate per
annum obtained by dividing (a) (i) the rate per annum
determined by the Administrative Agent to be the rate that appears
on the page of the Reuters Screen that displays the London
interbank offered rate as administered by ICE Benchmark
Administration (or any other Person that takes over the
administration of such rate) (such page currently being LIBOR01
page) for deposits (for delivery on the first day of such Interest
Period) with a term equivalent to such Interest Period in Dollars,
determined as of approximately 11:00 a.m. (London time) on the
Interest Rate Determination Date for such Interest Period, or
(ii) in the event the rate referred to in the preceding
clause (i) does not appear on such page or if the Reuters
Screen shall cease to be available, the rate per annum determined
by the Administrative Agent to be the offered rate on such other
page or other service that displays the London interbank offered
rate as administered by ICE Benchmark Administration (or any other
Person that takes over the administration of such rate) for
deposits (for delivery on the first day of such Interest Period)
with a term equivalent to such Interest Period in Dollars,
determined as of approximately 11:00 a.m. (London time) on such
Interest Rate Determination Date, by (b) an amount equal to
one minus the Applicable Reserve Requirement; provided that, notwithstanding
the foregoing, (A) if the Adjusted Eurodollar Rate, determined
as provided above, would otherwise be less than zero, then the
Adjusted Eurodollar Rate shall be deemed to be zero and (B) in
the case of Tranche A Term Loans and Tranche B Term Loans, the
Adjusted Eurodollar Rate shall at no time be less than 1.00% per
annum.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Aggregate Amounts Due” as defined
in Section 2.16.

 

“Aggregate Payments” as defined in
Section 7.2(b).

 

 

 

 

 

“Agreement” means this First Lien
Credit and Guaranty Agreement dated as of May 4, 2018.

 

“Amendment
No. 1”
means that certain Amendment No. 1 to First Lien Credit and
Guaranty Agreement, dated as of the Amendment No. 1 Effective Date,
among the Administrative Agent, the Borrower, the Guarantor
Subsidiaries and the Lenders party thereto.

 

“Amendment
No. 1 Effective Date”
means May 9, 2019, the date on which all conditions precedent set
forth in Section 5 of Amendment No. 1 are
satisfied.

 

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

 

“Applicable ECF Percentage” means,
with respect to any Fiscal Year, (a) 50% if the Total Net Leverage
Ratio as of the last day of such Fiscal Year is greater than
2.90:1.00, (b) 25% if the Total Net Leverage Ratio as of the
last day of such Fiscal Year is equal to or less than 2.90:1.00 but
greater than 2.40:1.00 and (c) 0% if the Total Net Leverage Ratio
as of the last day of such Fiscal Year is equal to or less than
2.40:1.00.

 

“Applicable Rate” means, on any
day, (a) with respect to any Tranche A Term Loan, (i) 4.00%
per annum 
plus Incremental Interest, in the case of a Base Rate Loan,
and (ii) 5.00% per annum 
plus Incremental Interest, in the case of a Eurodollar Rate
Loan, (b) with respect to any Tranche B Term Loan, (i) 6.50%
per annum 
plus Incremental Interest, in the case of a Base Rate Loan,
and (ii) 7.50% per annum 
plus Incremental Interest, in the case of a Eurodollar Rate
Loan, (c) with respect to any Revolving Loan, (i) from the
Closing Date until the third Business Day following the date of the
delivery of the financial statements pursuant to Section 5.1(b) for
the Fiscal Quarter ending June 30, 2018, and of the related
Compliance Certificate pursuant to Section 5.1(c), (A) 4.00% per
annum 
plus Incremental Interest, in the case of a Base Rate Loan,
and (B) 5.00% per annum 
plus Incremental Interest, in the case of a Eurodollar Rate
Loan and (ii) thereafter, as set forth in the table below, as
determined based on the First Lien Net Leverage Ratio as of the end
of the most recent Fiscal Quarter for which financial statements
have been delivered pursuant to Section 5.1(a) or 5.1(b) and the
related Compliance Certificate has been delivered pursuant to
Section 5.1(c), in each case, at least three Business Days
prior to such day, and (d) with respect to Loans of any other
Class, the rate per annum specified in the Incremental Facility
Agreement, the Extension/Modification Agreement or the Refinancing
Facility Agreement, as the case may be, establishing Loans of such
Class.

 

 

	
Pricing
Level

	
First
Lien Net Leverage Ratio

	
Applicable
Rate for Revolving Loans that are Eurodollar Rate
Loans

	
Applicable
Rate for Revolving Loans that are Base Rate Loans

	
1

	
>
2.45:1.00

	
5.00% plus Incremental Interest

	
4.00% plus Incremental Interest

	
2

 

	
≤ 
2.45:1.00

but >
1.70:1.00

	
4.75% plus Incremental Interest

 

	
3.75% plus Incremental Interest

 

	
3

	
≤ 
1.70:1.00

	
4.50% plus Incremental Interest

	
3.50% plus Incremental Interest

 

 

 

 

 

Any increase or
decrease in the Applicable Rate for Revolving Loans resulting from
a change in the First Lien Net Leverage Ratio shall become
effective as of the third Business Day following the date the
financial statements and the related Compliance Certificate are
delivered to the Administrative Agent pursuant to
Section 5.1(a) or 5.1(b) and Section 5.1(c); provided that if the Borrower
has not delivered to the Administrative Agent any financial
statements or Compliance Certificate required to have been
delivered pursuant to Section 5.1(a), 5.1(b) or 5.1(c), from
and after the date such financial statements or Compliance
Certificate were required to have been so delivered the Applicable
Rate for Revolving Loans shall be determined by reference to
Pricing Level 1 in the table above and shall continue to so apply
to and including the third Business Day following the date such
financial statements and related Compliance Certificate are so
delivered (and thereafter the pricing level otherwise determined in
accordance with this definition shall apply) and (b) as of the
first Business Day after an Event of Default under
Section 8.1(a), 8.1(f) or 8.1(g) shall have occurred and be
continuing, the Applicable Rate for Revolving Loans shall be
determined by reference to Pricing Level 1 in the table above, and
shall continue to so apply to but excluding the date on which such
Event of Default shall cease to be continuing (and thereafter the
pricing level otherwise determined in accordance with this
definition shall apply).

 

If any financial
statements or Compliance Certificate delivered pursuant to
Section 5.1(a), 5.1(b) or 5.1(c) shall prove to have been
inaccurate, and such inaccuracy shall have resulted in the payment
of interest hereunder at lower rates than those that would have
been paid but for such inaccuracy, then (i) the Borrower shall
promptly deliver to the Administrative Agent corrected financial
statements and a corrected Compliance Certificate for such period
and (ii) the Borrower shall promptly pay to the Administrative
Agent, for the account of the Revolving Lenders, the interest that
should have been paid but were not paid as a result of such
inaccuracy. Nothing in this paragraph shall limit the rights of the
Administrative Agent or any Lender under Section 2.9 or
8.

 

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

 

“Approved Cost Savings” means
“run rate” net cost savings, operating expense
reductions and other operating improvements and synergies
attributable to (a) the Transactions and reflected in the model
delivered to the Arrangers prior to the Closing Date or (b) the
Specified Acquisition and reflected in the quality of earnings
report delivered to the Arrangers in respect of the Specified
Acquisition prior to the Closing Date; provided that, in the case of
this clause (b), (i) such Acquisition is consummated on or prior to
December 31, 2018 and (ii) the Approved Cost Savings permitted by
this clause (b) shall not exceed $16,700,000 in the
aggregate.

 

 

 

 

 

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

 

“Arrangers” means Goldman Sachs,
MSSF and MUFG, each in its capacity as a joint lead arranger and
joint bookrunner for the credit facilities established under this
Agreement.

 

“Asset Sale” means any Disposition
of assets (other than Dispositions made in reliance on Section
6.8(b)(i), (ii), (iii), (iv), (vi), (vii) or (viii)), other than
any such Disposition (or series of related Dispositions) resulting
in aggregate Net Proceeds not exceeding $5,000,000
during any Fiscal Year.

 

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

 

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

 

“Auction” as defined in Section
10.6(i)(i).

 

“Auction Manager” means (a) the
Administrative Agent or (b) any other financial institution agreed
to by the Borrower and the Administrative Agent (whether or not an
Affiliate of the Administrative Agent) to act as an auction manager
in connection with any Auction; provided that the Borrower
shall not designate the Administrative Agent as the Auction Manager
without the prior written consent of the Administrative Agent (it
being understood that the Administrative Agent shall be under no
obligation to agree to act as the Auction Manager).

 

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

 

“Available Basket Amount” means, as
of any date:

 

(a)  the
Available Excess Cash Flow Amount as of such date; plus

 

(b)  the
Declined Mandatory Prepayment Retained Amount as of such date;
plus

 

(c)  [reserved];
plus

 

(d)  the
aggregate amount of Returns and, without duplication, dividends,
distributions and other returns on capital received in Cash or Cash
Equivalents as of such date in respect of any Acquisition or other
Investments made (or deemed made pursuant to the definition of the
term “Unrestricted Subsidiary”) using the Available
Basket Amount, provided that the aggregate
amount by which the Available Basket Amount is increased pursuant
to this clause (d) in respect of any Acquisition or other
Investment shall not exceed the amount by which the Available
Basket Amount shall have been reduced on account of the Acquisition
Consideration with respect to such Acquisition or the original
amount of any such other Investment; plus

 

 

 

 

 

(e)  without
duplication of amounts otherwise increasing the Available Basket
Amount pursuant to clause (d) above, in the event any Unrestricted
Subsidiary has been designated as a Restricted Subsidiary, or has
been merged or consolidated with the Borrower or a Restricted
Subsidiary (where the surviving entity in such merger or
consolidation is the Borrower or a Restricted Subsidiary), or
transfers or conveys all or substantially all of its assets to, or
is liquidated into, the Borrower or a Restricted Subsidiary, on or
prior to such date, the lesser of (i) the amount of all Investments
made using the Available Basket Amount in such Unrestricted
Subsidiary (including any such Investment deemed made pursuant to
the definition of the term “Unrestricted Subsidiary”),
net of the aggregate amount, if any, by which the Available Basket
Amount shall have been increased prior to such time in respect of
such Investments pursuant to clause (d) above, and (ii) the fair
value of such Unrestricted Subsidiary (as determined reasonably and
in good faith by an Authorized Officer of the Borrower) at the time
it is designated as a Restricted Subsidiary or the time of such
merger, consolidation, transfer, conveyance or liquidation, as
applicable; minus

 

(f)  the
portion of the Available Basket Amount utilized after the Closing
Date and on or prior to such date pursuant to Section 6.4(j)
or 6.6(n), with the utilization pursuant to Section 6.6(n) for
any Acquisition being the Acquisition Consideration in respect
thereof and the utilization pursuant to Section 6.6(n) for any
other Investment (or any deemed Investment in respect of any
designation of an Unrestricted Subsidiary) being the amount thereof
as of the date the applicable Investment is made, determined in
accordance with the definition of “Investment” (or the
definition of “Unrestricted Subsidiary”).

 

“Available Excess Cash Flow Amount”
means, as of any date, an amount equal to the sum, for the Fiscal
Years of the Borrower in respect of which financial statements and
the related Compliance Certificate have been delivered in
accordance with Sections 5.1(a) and 5.1(c), and for which
prepayments required by Section 2.13(e) (if any) have been made, in
each case on or prior to such date (commencing with the Fiscal Year
ending December 31, 2019), of the products of (a) the amount of
Consolidated Excess Cash Flow (to the extent such amount exceeds
zero) for each such Fiscal Year multiplied by (b) the
Retained ECF Percentage for such Fiscal Year (it being understood
that the Retained ECF Percentage of Consolidated Excess Cash Flow
for any such Fiscal Year shall be included in the Available Excess
Cash Flow Amount regardless of whether a prepayment is required for
such Fiscal Year under Section 2.13(e)).

 

“Bail-In Action” means the exercise
of any Write-Down and Conversion Powers by the applicable EEA
Resolution Authority in respect of any liability of an EEA
Financial Institution.

 

“Bail-In Legislation” means, with
respect to any EEA Member Country implementing Article 55 of
Directive 2014/59/EU of the European Parliament and of the Council
of the European Union, the implementing law for such EEA Member
Country from time to time which is described in the EU Bail-In
Legislation Schedule.

 

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

 

 

 

 

 

“Base Rate” means, for any day, the
rate per annum equal to the greatest of (a) the Prime Rate in
effect on such day, (b) the Federal Funds Effective Rate in effect
on such day plus 1⁄2 of 1% per annum and (c) the Adjusted
Eurodollar Rate that would be applicable to a Eurodollar Rate Loan
with an Interest Period of one month commencing on such day plus
1%; provided that,
notwithstanding the foregoing, (i) if the Base Rate,
determined as provided above, would otherwise be less than 1.00%
per annum, then the Base Rate shall be deemed to be 1.00% per annum
and (ii) in the case of Tranche A Term Loans and Tranche B
Term Loans, the Base Rate shall at no time be less than 2.00% per
annum. Any change in the Base Rate due to a change in the Prime
Rate, the Federal Funds Effective Rate or the Adjusted Eurodollar
Rate shall be effective on the effective day of such change in the
Prime Rate, the Federal Funds Effective Rate or the Adjusted
Eurodollar Rate, as the case may be.

 

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

 

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

 

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

 

“Borrower” as defined in the
preamble hereto.

 

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

 

“Bridge
Agent”
means the collateral agent and/or the administrative agent under
the Bridge Credit Documents, as applicable.

 

“Bridge
Credit Agreement”
means the Super Senior Secured Credit Agreement dated on or about
the date of the Amendment No. 1 Effective Date among,

inter alia,
the Borrower, Wilmington Trust, as administrative agent and
collateral agent, and the lenders parties
thereto.

 

“Bridge
Credit Document”
has the meaning assigned to the term “Credit Document”
in the Bridge Credit Agreement.

 

“Bridge
Intercreditor Agreement”
means the Intercreditor Agreement dated on or about the date of the
Amendment No. 1 Effective Date, substantially in the form of
Schedule V of Amendment No. 1, and entered into among the
Collateral Agent and the Bridge Agent.

 

“Bridge
Obligations”
has the meaning assigned to the term “Obligations” in
the Bridge Credit Agreement.

 

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

 

 

 

 

 

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

 

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

 

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

 

“Cash Collateralize” means, with
respect to any Obligation, to provide and pledge (as a first
priority perfected security interest) cash collateral or Cash
Equivalents in Dollars, at a location and pursuant to documentation
in form and substance reasonably satisfactory to the Administrative
Agent and the applicable Issuing Bank. The term “Cash Collateral” shall have a
meaning correlative to the foregoing and shall include the proceeds
of such cash collateral and other credit support.

 

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

 

 

 

 

 

“Cash Management Services” means
cash management and related services provided to the Borrower or
any Restricted Subsidiary, including treasury, depository, return
items, overdraft, controlled disbursement, cash sweeps, zero
balance arrangements, merchant stored value cards, e-payables,
electronic funds transfer, interstate depository network and
automatic clearing house transfer (including the Automated Clearing
House processing of electronic funds transfers through the direct
Federal Reserve Fedline system) services and credit cards, credit
card processing services, debit cards, stored value cards and
commercial cards (including so-called “‘purchase
cards”, “procurement cards” or
“p-cards”) arrangements.

 

“Cash Management Services Provider”
means any Person that (a) is, or was on the Closing Date, an
Agent, an Arranger, an Issuing Bank or any Affiliate of any of the
foregoing, whether or not such Person shall have been an Agent, an
Arranger or any Affiliate of any of the foregoing at the time the
applicable agreement in respect of Cash Management Services was
entered into, (b) is a counterparty to an agreement in respect of
Cash Management Services in effect on the Closing Date and is a
Lender or an Affiliate of a Lender as of the Closing Date or
(c) becomes a counterparty after the Closing Date to an
agreement in respect of Cash Management Services at a time when
such Person is a Lender or an Affiliate of a Lender.

 

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

 

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

 

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

 

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

 

 

 

 

 

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

 

“Class”, when used in reference to
(a) any Loan or Borrowing, refers to whether such Loan, or the
Loans comprising such Borrowing, are Revolving Loans, Tranche A
Term Loans or Tranche B Term Loans or Loans of another
“Class” established pursuant to Section 2.23, 2.24 or
2.25 as contemplated below, (b) any Commitment, refers to
whether such Commitment is a Revolving Commitment, a Tranche A Term
Loan Commitment or a Tranche B Term Loan Commitment or a
Commitment of another “Class” established pursuant to
Section 2.23, 2.24 or 2.25 as contemplated below and (c) any
Lender, refers to whether such Lender has a Loan or Commitment of a
particular Class. Additional Classes of Loans, Borrowings,
Commitments and Lenders may be created pursuant to
Section 2.23, 2.24 or 2.25 and, as provided in Section 2.23,
2.24 or 2.25, any Incremental Term Loans, any Extended/Modified
Term Loans or any Refinancing Term Loans may be treated as a single
Class with any other Class of Term Loans having the same terms as
such Incremental Term Loans, Extended/Modified Term Loans or
Refinancing Term Loans, as applicable.

 

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

 

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

 

“Closing Date Common Equity
Issuance” means the issuance and sale, on the Closing
Date, by the Borrower of shares of its common stock, par value
$0.01 per share, for gross cash proceeds of
$4,999,998.50.

 

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

 

“Closing Date Prepayment” means the
prepayment on or prior to the Closing Date of a portion of the
Existing Subordinated Notes in an aggregate principal amount of
$3,000,000, plus a further reduction on the Closing Date in the
aggregate principal amount of the Existing Subordinated Notes
resulting from the set-off against the aggregate principal amount
thereof on the Closing Date of a $920,000 receivable owed by one or
more of the holders of the Existing Subordinated
Notes.

 

“Closing Date Refinancing” means (a) the payment
and discharge of the principal of and interest accrued on all
outstanding Indebtedness and all other amounts outstanding or
accrued, including all prepayment premium, under the Existing Debt
Documents, the termination of the commitments thereunder and the
cancellation or termination, or the cash collateralizing or
backstopping with Letters of Credit in a manner reasonably
satisfactory to the Administrative Agent, of all letters of credit
outstanding thereunder, (b) the termination and release of all
Guarantees and Liens supporting or securing any of the Indebtedness
or other obligations referred to in the foregoing clause (a) or
created under the documentation governing any such Indebtedness and
(c) the making of the Closing Date Prepayment.

 

“Collateral” means, collectively,
all of the property (including Equity Interests) on which Liens are
purported to be granted pursuant to the Collateral Documents as
security for the Obligations.

 

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

 

 

 

 

 

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

 

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

 

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

 

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

 

(d)  all
Equity Interests owned by or on behalf of any Credit Party shall
have been pledged pursuant to the Pledge and Security Agreement
(provided that the
Credit Parties shall not be required to pledge (i) more than 65% of
the outstanding voting Equity Interests in any CFC or CFC Holding
Company[reserved]
or (ii) Equity Interests that constitute Excluded Property),
and the Collateral Agent shall, to the extent required by the
Pledge and Security Agreement, have received certificates or other
instruments representing all such Equity Interests, together with
undated stock powers or other instruments of transfer with respect
thereto endorsed in blank;

 

(e)  (i)
the Borrower and each Restricted Subsidiary shall have duly
executed and delivered a counterpart of each of the Intercompany
Note and the Intercompany Indebtedness Subordination Agreement and
(ii) all Indebtedness of any other Person in a principal amount of
$1,00250,000
or more that is owing to any Credit Party shall be evidenced by a
promissory note, and the Intercompany Note, each other promissory
note (if any) evidencing Indebtedness of the Borrower or any
Restricted Subsidiary to any Credit Party and each promissory note
referred to in clause (ii) above shall, in each case, have been
pledged pursuant to the Pledge and Security Agreement and the
Collateral Agent shall have received the Intercompany Note and all
such other promissory notes, together with undated instruments of
transfer with respect thereto endorsed in blank;

 

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

 

 

 

 

 

(g)  the
Collateral Agent shall have received (i) a Mortgage with respect to
each Material Real Estate Asset, if any, duly executed and
delivered by the record owner of such Material Real Estate Asset,
(ii) a fully paid policy or policies of title insurance issued by a
nationally recognized title insurance company insuring the Lien of
each Mortgage as a valid and enforceable Lien on the Material Real
Estate Asset described therein, free of any other Liens other than
Permitted Liens, which policies shall be in form and substance
reasonably satisfactory to the Collateral
AgentRequisite
Lenders, together with such endorsements, coinsurance and
reinsurance as the Collateral Agent 
or the Requisite Lenders may reasonably request, (iii) a
completed Flood Certificate with respect to each
Materialany
owned Real Estate Asset 
subject to a Lien pursuant to a Mortgage, which Flood
Certificate shall be addressed to the Collateral Agent and shall
otherwise comply with the Flood Program and if the Flood
Certificate with respect to any Materialsuch
Real Estate Asset states that any “Building” (as
defined in 12 CFR Chapter III, Section 339.2) included as part of
such Material
Real Estate Asset is located in a Flood Zone, (A) 
an acknowledgement of a written notification from the
applicable Credit Party to the Collateral Agent as to the existence
of such Material
Real Estate Asset and as to whether the community in which such
Material
Real Estate Asset is located is participating in the Flood Program
and (B) if such Material
Real Estate Asset is located in a community that participates in
the Flood Program, evidence that the applicable Credit Party has
obtained a policy of flood insurance that is in compliance with all
applicable requirements of the Flood Program and other applicable
law (including as to the amount of insurance coverage required
thereunder), provided
that
the foregoing requirements of this clause (iii) shall be completed
(and copies of such Flood Certificate and, if applicable, such
acknowledgement and evidence of flood insurance shall have been
made available to the Lenders) at least 20 Business Days (or such
shorter period within which each of the Revolving Lenders shall
have advised the Collateral Agent that its flood insurance due
diligence and flood insurance compliance have been completed) prior
to the execution and delivery of a Mortgage with respect to such
Material Real Estate Asset, (iv) with respect to any
Material Real Estate Asset encumbered by a Lien that is to be
subordinated to the Lien created in accordance with this Agreement
and the other Credit Documents, an amendment or agreement of
subordination duly executed and delivered with respect to any Lien
or encumbrance that, but for such subordination, would have
priority over the Mortgage delivered to the Collateral Agent
and,
(v) such surveys, abstracts, appraisals, legal opinions and other
documents as the Collateral Agent 
or the Requisite Lenders may reasonably request with respect
to any such
Mortgage or Material Real Estate Asset.

and (vi) with respect to any Leasehold Property with a fair market
value of greater than $1,000,000, if reasonably requested by the
Requisite Lenders, (A) evidence that a memorandum of lease for the
lease pursuant to which the leasehold interest in the Leasehold
Property has been demised to the applicable Credit Party has been
recorded in the applicable real property records, (B) to the extent
required by such lease, evidence that the landlord thereunder has
consented to the granting of a Mortgage of the leasehold interest
in such Leasehold Property, in form and substance reasonably
acceptable to the Requisite Lenders, and (C) upon the request of
the Collateral Agent or the Requisite Lenders, an estoppel
certificate from the landlord under the related
Lease.

 

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

 

 

 

 

 

Notwithstanding the
foregoing provisions of this definition or anything in this
Agreement or any other Credit Document to the
contrary:

 

(aa) the Collateral
and Guarantee Requirement shall not apply to any of the following
assets (collectively, the “Excluded Property”; each
capitalized term used in this clause (aa) but not defined in this
Agreement having the meaning given to it in the Pledge and Security
Agreement): (i) any Leasehold
Property and any Real Estate Asset that is not a Material Real
Estate Asset, (ii) any motor vehicles and other assets subject to
certificates of title, except to the extent perfection of a
security interest therein may be accomplished by the filing of UCC
financing statements or an equivalent thereof in appropriate form
in the applicable jurisdiction,[reserved],
(ii) [reserved], (iii) any Commercial Tort Claim as to which
the claim thereunder is less than $2,00250,000,
(iv) (A) any assets if, for so long as and to the extent a
security interest may not be granted in such assets as a matter of
applicable law, (B) any lease, license (including any License),
contract or other agreement or any rights or interests thereunder
if, for so long as and to the extent the grant of a security
interest therein would (x) constitute or result in (1) the
unenforceability of any right, title or interest of the applicable
Credit Party in or (2) a breach or termination pursuant to the
terms of, or a default under, such lease, license, contract or
other agreement or (y) require a consent, approval, license or
authorization not obtained from a Governmental Authority or third
party, except, in each case under this clause (B), to the extent
that such breach or default is ineffective under the UCC or other
applicable law or principles of equity, and (C) any property
subject to a Lien securing any purchase money obligation or Capital
Lease Obligation (or any Refinancing Indebtedness in respect
thereof) if, for so long as and to the extent the grant of a
security interest therein would constitute or result in a breach or
a default under the related agreements, provided that this
clause (C) shall apply only if such Lien and such purchase
money obligation or Capital Lease Obligation are permitted
hereunder, except, in each case under this clause (iv) to the
extent that such law or the terms in such lease, license, contract
or other agreement providing for such prohibition, breach, right of
termination or default or requiring such consent, approval, license
or authorization is ineffective under the UCC or other applicable
law or principles of equity, provided further that this clause (iv)
shall not exclude Proceeds thereof and Accounts and Payment
Intangibles arising therefrom the assignment of which is deemed
effective under the UCC, (v) any governmental licenses or
state or local franchises, charters and authorizations of a
Governmental Authority if, for so long as and to the extent the
grant of a security interest therein is prohibited or restricted by
applicable law (including the CPCN issued in Colorado to Cbeyond
Communications LLC and to Fusion LLC (formerly known as Network
Billing Systems, LLC)), except, in each case under this clause (v),
to the extent that such prohibition or restriction is ineffective
under the UCC or other applicable law or principles of equity,
provided that this
clause (v) shall not exclude Proceeds thereof and Accounts and
Payment Intangibles arising therefrom the assignment of which is
deemed effective under the UCC, (vi) Equity Interests in any Person
that is not a wholly owned Restricted Subsidiary if, for so long as
and to the extent (A) the Organizational Documents of such
Person or any related joint venture, shareholders’ or similar
agreement prohibits or restricts such pledge without the consent of
any Person other than the Borrower or a Restricted Subsidiary (it
being understood that none of the Credit Parties shall be required
to seek the consent of third parties thereunder), or
(B) in the case of any
Person that is not a Restricted Subsidiary (including any
Unrestricted Subsidiary), such Equity Interests have been pledged
in connection with any Indebtedness of such Person (but only to the
extent that such Equity Interests remain pledged in connection with
such Indebtedness)[reserved],
(vii) any “intent to use” trademark application for
which a statement of use has not been filed with the United States
Patent and Trademark Office, but only to the extent that the grant
of a security interest therein would invalidate such trademark
application, (viii) any
Letter-of-Credit Rights (except to the extent constituting a
Supporting Obligation of other Collateral as to which perfection of
a security interest therein may be accomplished solely by the
filing of a UCC financing statement in the applicable jurisdiction
(it being understood that no actions shall be required to perfect a
security interest in a Letter-of-Credit Rights, other than the
filing of a UCC financing statement)), and (ix) the deposit
account, and all Cash on deposit therein, pledged or assigned as
collateral to East West Bank to secure the Existing EWB Letter of
Credit,[reserved],
and (ix) [reserved], and in each case of this
clause (aa) other than any Proceeds, substitutions or
replacements of the foregoing (unless such Proceeds, substitutions
or replacements themselves would constitute assets described in
clauses (i) through (ix) above); provided, in each case, that
such assets shall constitute Excluded Property only if they are not
subject to any Lien securing any Permitted Second Lien
Indebtedness, any Permitted Credit Agreement Refinancing
Indebtedness or any Permitted Incremental Equivalent Indebtedness;
and

 

 

 

 

 

(bb)  (i)
no delivery of certificates or other instruments representing
Equity Interests in any Subsidiaries that are not Material
Subsidiaries shall be required, (ii) other than with respect to the
Escrow Cash Collateral as provided in Section 3.1(r) and the Vector
Subordinated Note Cash Collateral Account as required by Section
5.16, there shall be no requirement to obtain any control
agreements with respect to any deposit accounts or securities
accounts, (iii)other
than as specifically set forth herein, there shall be no
requirement to obtain any landlord waivers, estoppels, collateral
access letters or similar third party agreements and (iv) no
security or pledge agreements governed under the laws of any non-US
jurisdiction shall be required, and no actions in any non-US
jurisdiction shall be required in order to create or perfect any
security interest in assets located or titled outside the United
States..

 

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

 

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

 

“Commitment” means a Revolving
Commitment or a Term Loan Commitment.

 

“Commitment Fee Rate” means, on any
day, (a) with respect to the Revolving Commitments, the applicable
rate per annum set forth below based on the First Lien Net Leverage
Ratio as of the end of the most recent Fiscal Quarter for which
financial statements have been delivered pursuant to Section 5.1(a)
or 5.1(b) and the related Compliance Certificate has been delivered
pursuant to Section 5.1(c), in each case, at least three
Business Days prior to such day, provided that, for purposes of
this clause (a), until the third Business Day following the date of
the delivery of the financial statements pursuant to Section 5.1(b)
for the Fiscal Quarter ending June 30, 2018, and of the related
Compliance Certificate pursuant to Section 5.1(c), the Commitment
Fee Rate shall be determined by reference to Pricing Level 1 in the
table below, and (b) with respect to any Extended/Modified
Commitments or Refinancing Revolving Commitments of any Class, the
rate or rates per annum specified in the applicable
Extension/Modification Agreement or Refinancing Facility
Agreement.

 

	
Pricing
Level

 

	
First
Lien Net Leverage Ratio

	
Commitment
Fee Rate

 

	
1

	
>
1.70:1.00

	
0.500%

	
2

	
≤
1.70:1.00

	
0.375%

 

Any increase or
decrease in the Commitment Fee Rate resulting from a change in the
First Lien Net Leverage Ratio shall become effective as of the
third Business Day following the date the financial statements and
the related Compliance Certificate are delivered to the
Administrative Agent pursuant to Section 5.1(a) or 5.1(b) and
Section 5.1(c); provided that if the Borrower
has not delivered to the Administrative Agent any financial
statements or Compliance Certificate required to have been
delivered pursuant to Section 5.1(a), 5.1(b) or 5.1(c), from
and after the date such financial statements or Compliance
Certificate were required to have been so delivered the Commitment
Fee Rate shall be determined by reference to Pricing Level 1 in the
table above and shall continue to so apply to and including the
third Business Day following the date such financial statements and
related Compliance Certificate are so delivered (and thereafter the
pricing level otherwise determined in accordance with this
definition shall apply) and (b) as of the first Business Day
after an Event of Default under Section 8.1(a), 8.1(f) or
8.1(g) shall have occurred and be continuing, the Commitment Fee
Rate shall be determined by reference to Pricing Level 1 in the
table above, and shall continue to so apply to but excluding the
date on which such Event of Default shall cease to be continuing
(and thereafter the pricing level otherwise determined in
accordance with this definition shall apply).

 

 

 

 

 

If any financial
statements or Compliance Certificate delivered pursuant to
Section 5.1(a), 5.1(b) or 5.1(c) shall prove to have been
inaccurate, and such inaccuracy shall have resulted in the payment
of fees hereunder at lower rates than those that would have been
paid but for such inaccuracy, then (i) the Borrower shall promptly
deliver to the Administrative Agent corrected financial statements
and a corrected Compliance Certificate for such period and (ii) the
Borrower shall promptly pay to the Administrative Agent, for the
account of the Revolving Lenders, the fees that should have been
paid but were not paid as a result of such inaccuracy. Nothing in
this paragraph shall limit the rights of the Administrative Agent
or any Lender under Section 2.9 or 8.

 

“Commodity Exchange Act” means the
Commodity Exchange Act (7 USC. § 1 et seq.).

 

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

 

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

 

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

 

“Consolidated Adjusted EBITDA”
means, for any period, Consolidated Net Income for such period,
plus

 

(a) without duplication
and to the extent deducted (and not added back) in arriving at such
Consolidated Net Income (or, in the case of amounts pursuant to
clause (viii) or (xvii) below, to the extent not already included
in Consolidated Net Income), the sum for the Borrower and the
Restricted Subsidiaries of the following amounts for such
period:

 

(i) total interest
expense and, to the extent not reflected in such total interest
expense, any losses on Hedge Agreements entered into for the
purpose of hedging interest rate risk, net of interest income and
gains on such Hedge Agreements, and bank and letter of credit fees
and costs of surety bonds in connection with financing
activities,

 

(ii) provision for
Federal, state and foreign taxes based on income, profits or
capital gains, including in respect of repatriated
funds,

 

(iii) depreciation and
amortization, including amortization of intangible assets
established through purchase accounting and amortization of
deferred financing fees or costs, but excluding amortization of any
other prepaid cash expense that was paid and not expensed in a
prior period,

 

(iv) non-cash charges,
including impairment charges and any other write-down or write-off
of assets, noncash fair value adjustments of Investments and
noncash stock-based and similar incentive-based compensation
(including with respect to any profits interest relating to
membership interests in any partnership or limited liability
company), but excluding any such noncash charge or loss to the
extent that it represents an amortization of a prepaid cash expense
that was paid and not expensed in a prior period or write-down or
write-off with respect to accounts receivable (including any
addition to bad debt reserves or bad debt expense) or
inventory,

 

 

 

 

 

(v) extraordinary
losses, determined in conformity with GAAP,

 

(vi) unusual or
non-recurring charges, including, in each case, to the extent
unusual or non-recurring, operating expenses directly attributable
to the implementation of cost savings initiatives, merger costs,
severance costs, relocation costs, integration and
facilities’ opening costs, signing costs, retention or
completion bonuses, transition costs, costs related to
closure/consolidation of facilities, costs associated with tax
projects/audits and costs consisting of professional, consulting or
other fees relating to any of the foregoing; provided that the aggregate
amount added back pursuant to this clause (vi) and pursuant to
clauses (vii), (xiii) and, other than with
respect to the Approved Cost Savings, (viii) of this
definition for any Test Period shall not exceed (A) for any
Test Period ending on or prior to December 31, 2018, 5% of
Consolidated Adjusted EBITDA for such Test Period and (B) for any
Test Period ending thereafter, 15% of Consolidated Adjusted EBITDA
for such Test Period, in the case of each of clauses (A) and (B),
calculated prior to giving effect to any addback pursuant to this
clause (vi) or pursuant to clause (vii), (viii) or (xiii) of this
definition,

 

(vii) restructuring
charges, accruals and reserves (including restructuring charges
related to the Merger or
to Acquisitions consummated after the Closing Date);
provided that the
aggregate amount added back pursuant to this clause (vii) and
pursuant to clauses (vi), (xiii) and, other than with
respect to the Approved Cost Savings, (viii) of this
definition for any Test Period shall not exceed (A) for any Test
Period ending on or prior to December 31, 2018, 5% of Consolidated
Adjusted EBITDA for such Test Period and (B) for any Test Period
ending thereafter, 15% of Consolidated Adjusted EBITDA for such
Test Period, in the case of each of clauses (A) and (B), calculated
prior to giving effect to any addback pursuant to this clause (vii)
or pursuant to clause (vi), (viii) or (xiii) of this
definition,

 

(viii) the amount of
“run rate” net cost savings, operating expense
reductions and other operating improvements and synergies
reasonably projected by the Borrower in good faith to be realized
in connection with the Transactions or any other Pro Forma Event or
the implementation of any operational initiative, including the
termination, abandonment or discontinuance of operations and
product lines (calculated on a Pro Forma Basis as though such cost
savings, operating expense reductions, other operating improvements
and synergies had been realized on the first day of the applicable
Test Period), net of the amount of actual benefits realized during
such period from such actions; provided that (A) such
cost savings, operating expense reductions and other operating
improvements and synergies are reasonably identifiable, factually
supportable and reasonably expected to be realized within 12 months
after the Closing Date or within 12 months after the consummation
of such other Pro Forma Event or the adoption of such initiative,
as applicable, (B) no cost savings, operating expense reductions
and other operating improvements and synergies shall be added
pursuant to this clause (viii) to the extent duplicative of any
items otherwise added in calculating Consolidated Adjusted EBITDA,
whether pursuant to the requirement of Section 1.2(b) or otherwise,
for such period and (C) other than with
respect to the Approved Cost Savings, the aggregate amount
added back pursuant to this clause (viii) and pursuant to clauses
(vi), (vii) and (xiii) of this definition for any Test Period shall
not exceed (x) for any Test Period ending on or prior to December
31, 2018, 5% of Consolidated Adjusted EBITDA for such Test Period
and (y) for any Test Period ending thereafter, 15% of Consolidated
Adjusted EBITDA for such Test Period, in the case of each of
clauses (x) and (y), calculated prior to giving effect to any
addback pursuant to this clause (viii) or pursuant to clause (vi),
(vii) or (xiii) of this definition,

 

 

 

 

 

(ix) the amount of any
noncontrolling interest consisting of income of any Restricted
Subsidiary that is not wholly owned by the Borrower attributable to
noncontrolling Equity Interests of third parties in such Restricted
Subsidiary,

 

(x) after-tax losses
attributable to any Disposition of assets (other than Dispositions
in the ordinary course of business),

 

(xi) the amount of any
net losses from discontinued operations, determined in conformity
with GAAP,

 

(xii) (A) transaction
fees, costs and expenses incurred in connection with the
Transactions prior to the Closing Date, (B) transaction fees, costs
and expenses in an aggregate amount not to exceed $1,500,000
incurred in connection with the Transactions after the Closing Date
but prior to the one year anniversary of the Closing Date and
(C) transaction fees, costs and expenses in an aggregate
amount not to exceed $1,000,000 incurred on or prior to December
31, 2018 in connection with the Specified Acquisition (whether or
not the Specified Acquisition is consummated),

 

(xiii) transaction fees,
costs and expenses incurred during such period, or any amortization
thereof for such period, in connection with any Acquisition, any
Investment (other than intercompany Investments in the ordinary
course of business), any Disposition (other than Dispositions in
the ordinary course of business), any incurrence, repayment or
refinancing of Indebtedness (or any amendment or other modification
of any Indebtedness) or any issuance of Equity Interests, including
any such transaction consummated prior to the Closing Date and any
such transaction undertaken but not completed; provided that the aggregate
amount added back pursuant to this clause (xiii) and pursuant to
clauses (vi), (vii) and, other than with
respect to the Approved Cost Savings, (viii) of this
definition for any Test Period shall not exceed (A) for any Test
Period ending on or prior to December 31, 2018, 5% of Consolidated
Adjusted EBITDA for such Test Period and (B) for any Test Period
ending thereafter, 15% of Consolidated Adjusted EBITDA for such
Test Period, in the case of each of clauses (A) and (B), calculated
prior to giving effect to any addback pursuant to this clause
(xiii) or pursuant to clause (vi), (vii) or (viii) of this
definition,

 

(xiv) any loss
attributable to the early extinguishment of Indebtedness or
obligations under any Hedge Agreement,

 

(xv) any unrealized loss
attributable to the mark-to-market movement in the valuation of
obligations under any Hedge Agreement pursuant to FASB Accounting
Standards Codification 815, as amended,

 

(xvi) any unrealized loss
attributable to the mark-to-market movement in the valuation of
amounts denominated in foreign currencies resulting from the
application of FASB Accounting Standards Codification
830,

 

 

 

 

 

(xvii) any expenses,
charges or losses that are covered by indemnification or other
reimbursement provisions in connection with any Investment,
Acquisition or Disposition (other than in the ordinary course of
business) permitted under the Credit Documents or in connection
with any Insurance/Condemnation Event (disregarding the exception
in the definition of such term), including lost profits covered by
business interruption insurance, in each case, to the extent (A)
actually reimbursed by the applicable third party insurer or other
third party during such period or (B) (1) the Borrower has received
notification from the applicable third party insurer or other third
party that it intends to reimburse such expenses, charges or losses
or such lost profits and (2) there exists reasonable evidence that
such expenses, charges or losses or lost profits will in fact be
reimbursed by such insurer or other third party within 270 days
after the related amount is first added to Consolidated Adjusted
EBITDA pursuant to this clause (xvii), provided that no amount may be
added pursuant to this clause (xvii) to the extent that (x) such
insurer or other third party shall have denied in writing
reimbursement for such amount and (y) such amount has not actually
been reimbursed within 270 days after it is first added to
Consolidated Adjusted EBITDA pursuant to this clause (xvii) (with a
deduction for any amount so added back to the extent not so
reimbursed within such 270 days),

 

(xviii) any contingent or
deferred payments (including earnout payments, noncompete payments
and consulting payments) actually made to sellers during such
period in connection with any Acquisition, and any losses for such
period arising from the remeasurement of the fair value of any
liability recorded with respect to any earnout or other contingent
or deferred consideration arising from any Acquisition,
less

 

(b) without duplication
and to the extent included in arriving at such Consolidated Net
Income (or, in the case of amounts pursuant to clause (ix) below,
to the extent not already deducted from Consolidated Net Income),
the sum for the Borrower and the Restricted Subsidiaries of the
following amounts for such period:

 

(i) non-cash gains or
items of income (other than the accrual of revenue in the ordinary
course), excluding any non-cash items of income in respect of which
Cash was received in a prior period or will be received in a future
period,

 

(ii) extraordinary gains
or items of income, determined in conformity with
GAAP,

 

(iii) unusual or
non-recurring gains or items of income,

 

(iv) gains attributable
to any Disposition of assets (other than Dispositions in the
ordinary course of business),

 

(v) the amount of any
net income from discontinued operations, determined in conformity
with GAAP,

 

(vi) any gain
attributable to the early extinguishment of Indebtedness or
obligations under any Hedge Agreement,

 

(vii) any unrealized gain
attributable to the mark-to-market movement in the valuation of
obligations under any Hedge Agreement pursuant to FASB Accounting
Standards Codification 815, as amended,

 

 

 

 

 

(viii) any unrealized gain
attributable to the mark-to-market movement in the valuation of
amounts denominated in foreign currencies resulting from the
application of FASB Accounting Standards Codification 830,
and

 

(ix) the amount of any
noncontrolling interest consisting of losses of any Restricted
Subsidiary that is not wholly owned by the Borrower attributable to
noncontrolling Equity Interests of third parties in such Restricted
Subsidiary.

 

For purposes of
calculating Consolidated Adjusted EBITDA for any period, if during
such period the Borrower or any Restricted Subsidiary shall have
consummated a Material Acquisition or a Material Disposition,
Consolidated Adjusted EBITDA for such period shall be calculated
after giving Pro Forma Effect thereto in accordance with
Section 1.2(b).

 

Notwithstanding the
foregoing, but subject to the immediately preceding paragraph,
Consolidated Adjusted EBITDA for (A) the Fiscal Quarter ended March
31, 2017, shall be deemed to be equal to $37,350,000, (B) the
Fiscal Quarter ended June 30, 2017, shall be deemed to be equal to
$40,745,000, (C) the Fiscal Quarter ended September 30, 2017,
shall be deemed to be equal to $39,783,000 and (D) the Fiscal
Quarter ended December 31, 2017, shall be deemed to be equal to
$43,778,000.

 

“Consolidated Capital Expenditures”
means, for any period, the aggregate of all expenditures made by
the Borrower and the Restricted Subsidiaries during such period
that are required to be included in “purchase of property,
plant and equipment” or similar items on a consolidated
statement of cash flows, or that are otherwise required to be
capitalized on a consolidated balance sheet, of the Borrower and
the Restricted Subsidiaries for such period prepared in conformity
with GAAP; provided
that Consolidated Capital Expenditures shall not include any
expenditures (a) to the extent made with Net Proceeds
reinvested pursuant to Section 2.13(a) or 2.13(b) or (b) that
constitute an Acquisition permitted under Section 6.6; provided further that, except for
purposes of calculating Consolidated Excess Cash Flow for any
period, in the event the Borrower or any Restricted Subsidiary
consummates an Acquisition, Consolidated Capital Expenditures shall
not include any such expenditures made by any Person, business
unit, division, product line or line of business acquired pursuant
to such Acquisition, in each case, prior to the date of the
consummation of such Acquisition.

 

“Consolidated Excess Cash Flow”
means, for any period, an amount equal to:

 

(a) the sum, without
duplication, of:

 

(i) Consolidated Net
Income for such period;

 

(ii) the aggregate
amount of all non-cash charges (including depreciation expense,
amortization expense and deferred tax expense), to the extent
deducted in arriving at Consolidated Net Income;

 

(iii) the sum of (A) the
amount, if any, by which Consolidated Working Capital decreased
during such period (except as a result of the reclassification of
items from short-term to long-term or vice versa) and (B) the net
amount, if any, by which the consolidated deferred revenues of the
Borrower and the Restricted Subsidiaries increased during such
period, in each case, other than any such decreases or increases,
as applicable, arising from an Acquisition or from a Disposition of
assets (other than in the ordinary course of business) by the
Borrower or any of the Restricted Subsidiaries completed during
such period;

 

 

 

 

 

(iv) the aggregate
amount of net non-cash loss on any Disposition of assets by the
Borrower and the Restricted Subsidiaries (other than Dispositions
in the ordinary course of business), to the extent deducted in
arriving at Consolidated Net Income;

 

(v) the aggregate
amount of cash payments received in respect of Hedge Agreements
during such period, to the extent not included in arriving at
Consolidated Net Income;

 

(vi) the aggregate
amount of any non-cash loss for such period attributable to the
early extinguishment of Indebtedness or Hedge Agreements, to the
extent deducted in arriving at such Consolidated Net
Income;

 

(vii) income tax expense,
to the extent deducted in arriving at such Consolidated Net Income;
minus

 

(b) the sum, without
duplication, of:

 

(i) the aggregate
amount of all non-cash credits included in arriving at Consolidated
Net Income;

 

(ii) without duplication
of amounts deducted pursuant to clause (xi) below in any prior
period, the Consolidated Capital Expenditures made by the Borrower
and the Restricted Subsidiaries in Cash during such period, except
to the extent financed with Excluded Sources;

 

(iii) the aggregate
principal amount of Indebtedness of the Borrower and the Restricted
Subsidiaries repaid or prepaid (including, to the extent of Cash
spent, through repurchases and redemptions) by the Borrower and the
Restricted Subsidiaries in Cash during such period (including
(A) the principal component of payments in respect of Capital
Lease Obligations, (B) scheduled Installments of Term Loans made
pursuant to Section 2.11, (C) the amount of any mandatory
prepayment of Term Loans or any Permitted Pari Passu Secured
Indebtedness actually made with the Net Proceeds of an Asset Sale
or an Insurance/Condemnation Event, in each case, to the extent
such Net Proceeds resulted in an increase to Consolidated Net
Income and not in excess of the amount of such increase, and (D) to
the extent of Cash spent, repurchases by the Borrower of Term Loans
pursuant to Section 10.6(i)(ii), but excluding (1) all other
repayments or prepayments (including repurchases and redemptions)
of Term Loans and Permitted Pari Passu Secured Indebtedness,
(2) all repayments or prepayments (including repurchases and
redemptions) of any revolving credit loans (other than in respect
of any revolving credit facility to the extent there is an
equivalent permanent reduction in commitments thereunder, other
than in connection with a refinancing thereof) and
(3) repayments or prepayments (including repurchases and
redemptions) of Permitted Second Lien Indebtedness or any other
Junior Indebtedness (it being understood and agreed that any amount
excluded pursuant to clauses (1) through (3) above may not be
deducted under any other clause of this definition)), except to the
extent financed with Excluded Sources;

 

(iv) the aggregate
amount of net non-cash gain on any Disposition of assets by the
Borrower and the Restricted Subsidiaries (other than Dispositions
in the ordinary course of business), to the extent included in
arriving at Consolidated Net Income;

 

 

 

 

 

(v) the sum of (i) the
amount, if any, by which Consolidated Working Capital increased
during such period (except as a result of the reclassification of
items from short-term to long-term or vice versa) and (ii) the net
amount, if any, by which the consolidated deferred revenues of the
Borrower and the Restricted Subsidiaries decreased during such
period, in each case, other than any such increases or decreases,
as applicable, arising from an Acquisition or from a Disposition of
assets (other than in the ordinary course of business) by the
Borrower or any of the Restricted Subsidiaries completed during
such period;

 

(vi) the aggregate
amount of any non-cash gain for such period attributable to the
early extinguishment of Indebtedness, Hedge Agreements or other
derivative instruments, to the extent included in arriving at
Consolidated Net Income;

 

(vii) the aggregate
amount of Cash payments made by the Borrower and the Restricted
Subsidiaries during such period in respect of long-term liabilities
of the Borrower and the Restricted Subsidiaries other than
Indebtedness, except to the extent financed with Excluded
Sources;

 

(viii) without duplication
of amounts deducted pursuant to clause (xi) below in any prior
period, the aggregate amount of Cash paid by the Borrower and the
Restricted Subsidiaries during such period to consummate any
Acquisition or Investment (other than intercompany Investments)
permitted under Section 6.6(l), 6.6(m) or 6.6(o), except to the
extent financed with Excluded Sources;

 

(ix) the aggregate
amount of Restricted Junior Payments permitted by Section 6.4(e),
6.4(g)(i) or 6.4(i) paid by the Borrower and the Restricted
Subsidiaries in Cash during such period, except to the extent
financed with Excluded Sources;

 

(x) the aggregate
amount of any premium, make-whole or penalty payments actually paid
in Cash by the Borrower and the Restricted Subsidiaries during such
period that are required to be made in connection with any
prepayment of Indebtedness, except to the extent financed with
Excluded Sources;

 

(xi) without duplication
of amounts deducted from Excess Cash Flow in any prior period, the
aggregate consideration required to be paid in Cash by the Borrower
or any of the Restricted Subsidiaries pursuant to binding contracts
(the “Contract
Consideration”) entered into prior to or during such
period relating to Acquisitions or Consolidated Capital
Expenditures, in each case, to be consummated or made during the
period of four consecutive Fiscal Quarters of the Borrower
following the end of such period; provided that to the extent
that the aggregate amount of Cash actually utilized to finance such
Acquisitions or Consolidated Capital Expenditures during such
period of four consecutive Fiscal Quarters is less than the
Contract Consideration, the amount of such shortfall shall be added
to the calculation of Consolidated Excess Cash Flow at the end of
such period of four consecutive Fiscal Quarters;

 

(xii) to the extent not
deducted in arriving at Consolidated Net Income, directors’
fees (including salary and bonus) and board consulting fees and
related reimbursement of reasonable out-of-pocket expenses paid by
the Borrower and the Restricted Subsidiaries in Cash in such
period;

 

 

 

 

 

(xiii) to the extent not
deducted in arriving at Consolidated Net Income, transaction fees,
costs and expenses incurred in connection with the Transactions or
any Acquisition paid by the Borrower and the Restricted
Subsidiaries in Cash in such period;

 

(xiv) to the extent not
deducted in arriving at Consolidated Net Income, income taxes,
including penalties and interest, paid by the Borrower and the
Restricted Subsidiaries in Cash in such period; and

 

(xv) to the extent not
deducted in arriving at Consolidated Net Income, the aggregate
amount of Cash payments made by the Borrower and the Restricted
Subsidiaries in respect of Hedge Agreements during such
period.

 

“Consolidated First Lien Net Debt”
means, as of any date, without duplication:

 

(a)  the
sum of the aggregate principal amount of Indebtedness of the
Borrower and the Restricted Subsidiaries outstanding as of such
date that is secured by any Lien on any asset of the Borrower or
any Restricted Subsidiary (other than Liens that are contractually
subordinated to the Liens of the Collateral Agent created pursuant
to the Credit Documents), in the amount that would be required to
be reflected on a balance sheet prepared as of such date on a
consolidated basis in conformity with GAAP (but subject to
Section 1.2(a)), consisting solely of Indebtedness for
borrowed money, obligations evidenced by bonds, debentures, notes
or similar instruments and purchase money indebtedness,
plus

 

(b)  the
aggregate amount of Capital Lease Obligations of the Borrower and
the Restricted Subsidiaries outstanding as of such date,
plus

 

(c) to the extent
the amount thereof would be required to be reflected on a balance
sheet prepared as of such date on a consolidated basis in
conformity with GAAP (but subject to Section 1.2(a)), the aggregate
amount of purchase price adjustments, earnouts, deferred
compensation or other similar arrangements incurred by the Borrower
and the Restricted Subsidiaries in connection with any Acquisition,
in each case, that are secured by any Lien on any asset of the
Borrower or any Restricted Subsidiary (other than Liens that are
contractually subordinated to the Liens of the Collateral Agent
created pursuant to the Credit Documents), plus

 

(d)  the
aggregate amount outstanding as of such date of unreimbursed
drawings or other disbursements under all letters of credit and
letters of guaranty in respect of which the Borrower or any
Restricted Subsidiary is an account party, in each case that are
secured by any Lien on any asset of the Borrower or any Restricted
Subsidiary (other than Liens that are contractually subordinated to
the Liens of the Collateral Agent created pursuant to the Credit
Documents), plus

 

(e)  all
obligations, contingent or otherwise, of the Borrower or any
Restricted Subsidiary in respect of bankers’ acceptances
outstanding as of such date that are secured by any Lien on any
asset of the Borrower or any Restricted Subsidiary (other than
Liens that are contractually subordinated to the Liens of the
Collateral Agent created pursuant to the Credit Documents),
plus

 

(f)  Guarantees
outstanding as of such date by the Borrower or any Restricted
Subsidiary of Indebtedness of the type described in clauses (a)
through (e) above of any Person other than the Borrower or any
Restricted Subsidiary (whether or not such Indebtedness is secured)
if such Guarantees (including letters of credit providing for such
Guarantees) are secured by any Lien on any asset of the Borrower or
any Restricted Subsidiary (other than Liens that are contractually
subordinated to the Liens of the Collateral Agent created pursuant
to the Credit Documents), minus

 

 

 

 

 

(g)  the
aggregate amount of Unrestricted Cash as of such date (but
disregarding the proceeds of Indebtedness that is incurred on such
date).

 

“Consolidated Fixed Charges” means,
for any period, the sum, without duplication, of (a) Consolidated
Interest Expense for such period, (b) the aggregate amount of
scheduled principal payments made during such period in respect of
Long-Term Indebtedness of the Borrower and the Restricted
Subsidiaries (other than payments made by the Borrower or any
Restricted Subsidiary to the Borrower or a Restricted Subsidiary),
(c) the aggregate amount of principal payments (other than
scheduled principal payments) made during such period in respect of
Long-Term Indebtedness of the Borrower and the Restricted
Subsidiaries (other than payments made by the Borrower or any
Restricted Subsidiary to the Borrower or a Restricted Subsidiary),
to the extent that such payments reduced any scheduled principal
payments that would have become due within one year after the date
of the applicable payment, (d) the aggregate amount of principal
payments on Capital Lease Obligations, determined in conformity
with GAAP, made by the Borrower and the Restricted Subsidiaries
during such period and (e) Consolidated Capital Expenditures
for such period (except to the extent financed by incurring
Long-Term Indebtedness).

 

“Consolidated Interest Expense”
means, for any period:

 

(a) the sum,
without duplication, of (i) the total interest expense (including
imputed interest expense in respect of Capital Lease Obligations)
for the Borrower and the Restricted Subsidiaries for such period,
determined on a consolidated basis in conformity with GAAP,
including all commissions, discounts and other fees and charges
owed with respect to letters of credit and bankers’
acceptance financing and net payments, if any, made (less net
payments, if any, received) pursuant to obligations under Hedge
Agreements in respect of any Indebtedness, and (ii) any interest or
other financing costs becoming payable during such period in
respect of Indebtedness of the Borrower or any Restricted
Subsidiary to the extent such interest or other financing costs
shall have been capitalized rather than included in total interest
expense for such period in accordance with GAAP, minus

 

(b) cash interest
income of the Borrower and the Restricted Subsidiaries for such
period, determined on a consolidated basis in accordance with GAAP,
minus

 

(c) to the extent
included in clause (a) for such period, the sum, without
duplication, of (i) amortization or write-down of capitalized
interest, deferred financing costs or debt issuance costs,
commissions, fees and expenses, pay-in-kind interest expense, the
amortization of original issue discount resulting from the issuance
of Indebtedness below par and any other amounts of non-cash
interest (including as a result of the effects of purchase
accounting), (ii) the accretion or accrual of discounted
liabilities during such period, (iii) non-cash interest expense
attributable to the movement of the mark-to-market valuation of
obligations under Hedge Agreements or other derivative instruments
pursuant to FASB Accounting Standards Codification 815, (iv) any
one-time cash costs associated with breakage in respect of Hedge
Agreements for interest rates, (v) all additional interest or
liquidated damages then owing pursuant to any registration rights
agreement and any comparable “additional interest” or
liquidated damages with respect to any securities designed to
compensate the holders thereof for a failure to publicly register
such securities, (vi) any expense resulting from the discounting of
any Indebtedness in connection with the application of
recapitalization accounting or, if applicable, purchase accounting,
(vii) fees and expenses associated with the consummation of the
Transactions and (viii) commitment and other financing fees
(excluding, for the avoidance of doubt, the commitment fees in
respect of the Revolving Commitments).

 

 

 

 

 

For purposes of
calculating Consolidated Interest Expense for any period, if during
such period the Borrower or any Restricted Subsidiary shall have
consummated a Material Acquisition (other than the Transactions) or
a Material Disposition, Consolidated Interest Expense for such
period shall be calculated after giving Pro Forma Effect thereto in
accordance with Section 1.2(b).

 

Notwithstanding the
foregoing (but subject to the immediately preceding paragraph),
Consolidated Interest Expense shall be deemed to be (A) for the
four Fiscal Quarter period ended on the last day of the first
Fiscal Quarter ending after the Closing Date, Consolidated Interest
Expense for such Fiscal Quarter multiplied by four, (B) for the
four Fiscal Quarter period ended on the last day of the second
Fiscal Quarter ending after the Closing Date, Consolidated Interest
Expense for the two Fiscal Quarters then most recently ended
multiplied by two, and (C) for the four Fiscal Quarter period ended
on the last day of the third Fiscal Quarter ending after the
Closing Date, Consolidated Interest Expense for the three Fiscal
Quarters then most recently ended multiplied by 4/3; provided that, in the event the
Closing Date shall have occurred after the first day of the first
Fiscal Quarter ending after the Closing Date, Consolidated Interest
Expense for such Fiscal Quarter shall be deemed, for purposes of
clauses (A), (B) and (C) above, to be Consolidated Interest Expense
for the period from and including the Closing Date to and including
the last day of such Fiscal Quarter, multiplied by a fraction equal
to (x) 90 divided by (y) the number of days actually elapsed from
and including the Closing Date to and including the last day of
such Fiscal Quarter.

 

“Consolidated Net Income” means,
for any period, the net income (or loss) of the Borrower and the
Restricted Subsidiaries for such period, determined on a
consolidated basis in conformity with GAAP; provided that there shall be
excluded, without duplication, (a) the cumulative effect of a
change in accounting principles during such period and (b) the net
income (or loss) of any Person (including any Unrestricted
Subsidiary or any Person accounted for under the equity method of
accounting) that is not the Borrower or a Restricted Subsidiary
except, in the case of net income, to the extent of the amount of
Cash dividends or similar Cash distributions actually paid by such
Person to the Borrower or any Restricted Subsidiary during such
period.

 

“Consolidated Total Assets” means,
as of any date, the consolidated total assets of the Borrower and
the Restricted Subsidiaries as of the last day of the most recently
ended Fiscal Quarter for which financial statements have been
delivered pursuant to Section 5.1(a) or 5.1(b) (or, prior
to the first such delivery, for which financial statements are
included in the Historical Financial Statements), determined on a
consolidated basis in conformity with GAAP, but excluding therefrom
any Escrow Cash Collateral. Consolidated Total Assets as of any
date prior to the Closing Date shall be determined on a Pro Forma
basis to give effect to the Merger and the other Transactions to
occur on the Closing Date.

 

“Consolidated Total Debt” means, as
of any date, without duplication:

 

(a)  the
sum of the aggregate principal amount of Indebtedness of the
Borrower and the Restricted Subsidiaries outstanding as of such
date, in the amount that would be required to be reflected on a
balance sheet prepared as of such date on a consolidated basis in
conformity with GAAP (but subject to Section 1.2(a)),
consisting solely of Indebtedness for borrowed money, obligations
evidenced by bonds, debentures, notes or similar instruments and
purchase money indebtedness, plus

 

(b)  the
aggregate amount of Capital Lease Obligations of the Borrower and
the Restricted Subsidiaries outstanding as of such date,
plus

 

 

 

 

 

(c) to the extent
the amount thereof would be required to be reflected on a balance
sheet prepared as of such date on a consolidated basis in
conformity with GAAP (but subject to Section 1.2(a)), the aggregate
amount of purchase price adjustments, earnouts, deferred
compensation or other similar arrangements incurred by the Borrower
and the Restricted Subsidiaries in connection with any Acquisition,
plus

 

(d)  the
aggregate amount outstanding as of such date of unreimbursed
drawings or other disbursements under all letters of credit and
letters of guaranty in respect of which the Borrower or any
Restricted Subsidiary is an account party, plus

 

(e)  all
obligations, contingent or otherwise, of the Borrower or any
Restricted Subsidiary in respect of bankers’ acceptances
outstanding as of such date, plus

 

(f)  Guarantees
outstanding as of such date by the Borrower or any Restricted
Subsidiary of Indebtedness of the type described in clauses (a)
through (e) above of any Person other than the Borrower or any
Restricted Subsidiary.

 

“Consolidated Total Net Debt”
means, as of any date, without duplication:

 

(a)  the
sum of the aggregate principal amount of Indebtedness of the
Borrower and the Restricted Subsidiaries outstanding as of such
date, in the amount that would be required to be reflected on a
balance sheet prepared as of such date on a consolidated basis in
conformity with GAAP (but subject to Section 1.2(a)),
consisting solely of Indebtedness for borrowed money, obligations
evidenced by bonds, debentures, notes or similar instruments and
purchase money indebtedness, plus

 

(b)  the
aggregate amount of Capital Lease Obligations of the Borrower and
the Restricted Subsidiaries outstanding as of such date,
plus

 

(c) to the extent
the amount thereof would be required to be reflected on a balance
sheet prepared as of such date on a consolidated basis in
conformity with GAAP (but subject to Section 1.2(a)), the aggregate
amount of purchase price adjustments, earnouts, deferred
compensation or other similar arrangements incurred by the Borrower
and the Restricted Subsidiaries in connection with any Acquisition,
plus

 

(d)  the
aggregate amount outstanding as of such date of unreimbursed
drawings or other disbursements under all letters of credit and
letters of guaranty in respect of which the Borrower or any
Restricted Subsidiary is an account party, plus

 

(e)  all
obligations, contingent or otherwise, of the Borrower or any
Restricted Subsidiary in respect of bankers’ acceptances
outstanding as of such date, plus

 

(f)  Guarantees
outstanding as of such date by the Borrower or any Restricted
Subsidiary of Indebtedness of the type described in clauses (a)
through (e) above of any Person other than the Borrower or any
Restricted Subsidiary, minus

 

(g)  the
aggregate amount of Unrestricted Cash as of such date (but
disregarding the proceeds of Indebtedness that is incurred on such
date); provided
that, with respect to the calculation of Consolidated Total Net
Debt for purposes of testing the covenant set forth in Section
6.7(a) (including any such testing to determine compliance
therewith on a Pro Forma Basis as required by any other provision
hereof), the aggregate amount of such Unrestricted Cash deducted
pursuant to this clause (g) shall not exceed
$30,000,000.

 

 

 

 

 

“Consolidated Working Capital”
means, as of any date, the excess of (a) the sum of all
amounts (other than Cash and Cash Equivalents) that would, in
conformity with GAAP, be set forth opposite the caption
“total current assets” (or any like caption) on a
consolidated balance sheet of the Borrower and the Restricted
Subsidiaries as of such date (excluding all amounts attributable to
Unrestricted Subsidiaries), but excluding, without duplication, (i)
assets relating to current and deferred income taxes and (ii) the
effects from applying purchase accounting, less (b) the sum of all
amounts that would, in conformity with GAAP, be set forth opposite
the caption “total current liabilities” (or any like
caption) on a consolidated balance sheet of the Borrower and the
Restricted Subsidiaries as of such date (excluding all amounts
attributable to Unrestricted Subsidiaries), excluding, without
duplication, (i) the current portion of any Long-Term
Indebtedness, (ii) all Indebtedness (including letter of
credit obligations) under any revolving credit facility, to the
extent otherwise included therein, (iii) the current portion
of interest, (iv) the current portion of current and deferred
income Taxes, (v) non-cash compensation liabilities and
(vi) the effects from applying purchase
accounting.

 

“Consumer/SMB Business” means the
“Consumer/SMB Business” as defined in the Merger
Agreement as in effect on the Closing Date.

 

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

 

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

 

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

 

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

 

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

 

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

 

“Credit Document” means each of
this Agreement, the Collateral Documents, the Post-Closing Letter
Agreement, the Counterpart Agreements, the Extension/Modification
Agreements, the Incremental Facility Agreements, the Refinancing
Facility Agreements, the Permitted Intercreditor Agreements and,
except for purposes of Section 10.5, the Notes, if any, any
documents or certificates executed by the Borrower in favor of any
Issuing Bank relating to Letters of Credit (including any fee
letter relating to the fees payable to such Issuing Bank pursuant
to Section 2.10(b)), the Collateral Questionnaire and all other
documents, certificates, instruments or agreements executed and
delivered by or on behalf of any Credit Party for the benefit of
any Agent, any Issuing Bank or any Lender in connection herewith on
or after the date hereof and which are designated as “Credit
Documents” pursuant to an agreement between the Borrower and
the Administrative Agent.

 

 

 

 

 

“Credit Extension” means the making
of a Loan or the issuance, amendment (if increasing the face amount
thereof) or extension of a Letter of Credit.

 

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

 

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

 

“Declined Mandatory Prepayment Retained
Amount” means any portion of the amount of any
mandatory prepayment of Loans required pursuant to Section 2.13(a),
2.13(b) or 2.13(e) that has been declined by the Lenders in
accordance with Section 2.14(c), but only to the extent retained by
the Borrower in accordance with Section 2.14(c).

 

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

 

“Default
Period”
means the period during which either a Default or Event of Default
has occurred and is continuing (whether or not subject to any
forbearance).

 

“Defaulting Lender” means, subject
to Section 2.21(b), any Lender that (a) has failed (i) to fund
all or any portion of its Loans within two Business Days of the
date such Loans were required to be funded hereunder, unless such
Lender notifies the Administrative Agent and the Borrower in good
faith in writing that such failure is the result of such
Lender’s determination that one or more conditions precedent
to funding (which conditions precedent, together with the
applicable Default, if any, shall be specifically identified in
such writing) has not been satisfied, or (ii) to pay to the
Administrative Agent, the Collateral Agent, any Issuing Bank or any
Lender any other amount required to be paid by it hereunder
(including in respect of its participation in Letters of Credit)
within two Business Days of the date when due, (b) has notified the
Borrower, the Administrative Agent or any Issuing Bank in writing
that it does not intend to comply with its funding obligations
hereunder, or has made a public statement to that effect (unless
such writing or public statement relates to such Lender’s
obligation to fund a Loan hereunder and states that such position
is based on such Lender’s determination that a condition
precedent to funding (which condition precedent, together with the
applicable Default, if any, shall be specifically identified in
such writing or public statement) cannot be satisfied), (c) has
failed, within three Business Days after written request by the
Administrative Agent or the Borrower, to confirm in writing to the
Administrative Agent and the Borrower that it will comply with its
prospective funding obligations hereunder (provided that such Lender shall
cease to be a Defaulting Lender pursuant to this clause (c) upon
receipt of such written confirmation by the Administrative Agent
and the Borrower), or (d) is, or a direct or indirect parent
company of such Lender is, (i)  the subject of a Bail-In
Action, (ii) insolvent, or is generally unable to pay its debts as
they become due, or admits in writing its inability to pay its
debts as they become due, or makes a general assignment for the
benefit of its creditors or (iii) the subject of a proceeding under
any Debtor Relief Laws, or a receiver, trustee, conservator,
intervenor or sequestrator or the like (including the Federal
Deposit Insurance Corporation or any other state or federal
regulatory authority acting in a like capacity with respect to such
Lender) has been appointed for such Lender or its direct or
indirect parent company, or such Lender or its direct or indirect
parent company has taken any action in furtherance of or indicating
its consent to or acquiescence in any such proceeding or
appointment; provided that a Lender shall
not be a Defaulting Lender solely by virtue of the ownership or
acquisition of any Equity Interest in such Lender or any direct or
indirect parent company thereof by a Governmental Authority so long
as such ownership interest does not result in or provide such
Lender with immunity from the jurisdiction of courts within the
United States or from the enforcement of judgments or writs of
attachment on its assets or permit such Lender (or such
Governmental Authority) to reject, repudiate, disavow or disaffirm
any contracts or agreements made with such Lender. Any
determination by the Administrative Agent that a Lender is a
Defaulting Lender under any one or more of clauses (a) through (d)
above shall be conclusive and binding absent manifest error, and
such Lender shall be deemed to be a Defaulting Lender (subject to
Section 2.21(b)) upon delivery of written notice of such
determination to the Borrower, each Issuing Bank and each
Lender.

 

 

 

 

 

“Designated Subsidiary” means each
Restricted Subsidiary of the Borrower, including the Acquired
Company and its Restricted Subsidiaries, other than (a) any
Subsidiary that is not a wholly owned Subsidiary, (b) any Subsidiary that
is a CFC or a CFC Holding Company, (c) any Subsidiary of a CFC or
CFC Holding Company, (d) any Subsidiary that is not a Material
Subsidiary,[reserved],
(c) [reserved], (d) [reserved], (e) any Subsidiary that is
prohibited by applicable law or, in the case of any Subsidiary
acquired after the Closing Date, any Contractual Obligation in
effect at the time such Subsidiary is acquired (and not entered
into in contemplation of or in connection with such acquisition)
from providing an Obligations Guarantee (including any such
prohibition arising from any requirement to obtain a consent,
approval (including regulatory approval), license or authorization
of any Governmental Authority that has not been obtained in order
to provide such Obligations Guarantee); provided that to the extent
any such consent, approval, license or authorization is required
from the FCC or any State PUC, the Borrower and the Restricted
Subsidiaries shall use commercially reasonable efforts (including
by making all applicable filings and submitting all applicable
notices) to obtain the same promptly after such Restricted
Subsidiary is otherwise required to become a Designated Subsidiary,
(f) any captive insurance company, (g) any not-for-profit
Subsidiary or (h) any Subsidiary where the burden or cost of
providing an Obligations Guarantee by such Subsidiary is excessive
in relation to the benefit that would be afforded to the Lenders
thereby, as determined by the Administrative Agent in consultation
with the Borrower,
or (i) any Canadian Subsidiaries for as long as the Requisite
Lenders reasonably determine in good faith, after consultation with
the Borrower, that the direct and indirect costs and risks
associated with providing an Obligations Guarantee outweigh the
benefits afforded thereby; provided that, notwithstanding
the foregoing, a Subsidiary shall be a Designated Subsidiary if
such Subsidiary shall be an obligor (including pursuant to a
Guarantee) in respect of any Permitted Second Lien Indebtedness,
any Permitted Credit Agreement Refinancing Indebtedness, any
Permitted Incremental Equivalent Indebtedness or any Permitted
Subordinated Indebtedness. Notwithstanding the
foregoing, neither Primus Management
ULC, a British Columbia unlimited liability company,
nor
Bircan
Management ULC, a British Columbia unlimited liability
company, shall be a
“Designated Subsidiary” unless so designated by the
Borrower in writing to the Administrative
Agent.

 

“Discharge
of Super Senior Secured Obligations”
shall have the meaning as defined in the Bridge Intercreditor
Agreement.

 

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

 

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

 

 

 

 

 

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

 

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

 

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

 

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

 

“EEA Member Country” means any of
the member states of the European Union, Iceland, Liechtenstein,
and Norway.

 

“EEA Resolution Authority” means
any public administrative authority or any Person entrusted with
public administrative authority of any EEA Member Country
(including any delegee) having responsibility for the resolution of
any EEA Financial Institution.

 

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

 

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

 

 

 

 

 

“Engagement Letter” means the Engagement Letter dated
February 13, 2018, among Goldman Sachs Bank USA, MSSF, The Bank of
Tokyo-Mitsubishi UFJ, Ltd. and the Borrower.

 

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

 

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

 

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

 

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

 

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

 

 

 

 

 

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

 

 

 

 

 

“Escrow Cash Amount” means
$62,000,000.

 

“Escrow Cash Collateral” means Cash
proceeds from the borrowing of the Tranche B Term Borrowings in an
aggregate amount equal to the Escrow Cash Amount that has been
deposited into the Escrow Cash Collateral Account, together with
any interest or profits thereon.

 

“Escrow Cash Collateral Account” as
defined in Section 3.1(r).

 

“Escrow Cash Collateral Control
Agreement” as defined in Section 3.1(r).

 

“Escrow Cash Collateral Outside
Date” as defined in Section 2.13(d).

 

“Escrow Cash Collateral Termination
Date” as defined in Section 2.13(d).

 

“Escrow Cash Release Conditions”
means:

 

(a) (i) the
Arrangers shall have received a copy of the definitive Specified
Acquisition Agreement, together with all closing deliverables
thereunder, certified by an Authorized Officer of the Borrower as
complete and correct; (ii) the Specified Acquisition shall have
been (or substantially concurrently with the release of the Escrow
Cash Collateral from the Escrow Cash Collateral Account shall be)
consummated in accordance with and on the terms set forth in the
draft of the Specified Acquisition Agreement provided to the
Arrangers via email at 5:43 p.m. (New York City time) on
May 1, 2018, and without giving effect to amendments,
supplements, waivers or other modifications to (including any
consents under) the Specified Acquisition Agreement from the draft
so provided to the Arrangers that are adverse in any material
respect to the Lenders and that have not been approved by the
Arrangers (such approval not to be unreasonably withheld, delayed
or conditioned) (it being understood and agreed that any increase
in or reduction of the purchase price in respect of the Specified
Acquisition (other than in accordance with the terms of the draft
Specified Acquisition Agreement so provided to the Arrangers
(including, without limitation, working capital adjustments)) will,
in each case, be deemed to be adverse in a material respect to the
Lenders; provided
that (A) any such increase, when taken together with all prior such
increases, of 5.0% or less in the purchase price in respect of the
Specified Acquisition from the amount set forth in the draft
Specified Acquisition Agreement so provided to the Arrangers will
be deemed not to be adverse in a material respect to the Lenders so
long as such increase is in the form of Equity Interests in the
Borrower (other than any Disqualified Equity Interests) or is
funded with the Net Proceeds received (and not otherwise applied)
by the Borrower after the Closing Date but on or prior to the date
of consummation of the Specified Acquisition from any issuance and
sale of Equity Interests in the Borrower (other than any
Disqualified Equity Interests and other than any Equity Interests
issued or sold to any Subsidiary of the Borrower) and (B) any
such decrease, when taken together with all prior such decreases,
of 5.0% or less in the purchase price in respect of the Specified
Acquisition from the amount set forth in the draft Specified
Acquisition Agreement so provided to the Arrangers will be deemed
not to be adverse in a material respect to the Lenders); and (iii)
not less than $10,000,000 of the consideration for the Specified
Acquisition shall have been funded with Equity Interests in the
Borrower (other than any Disqualified Equity Interests) or the Net
Proceeds received (and not otherwise applied) by the Borrower after
the Closing Date but on or prior to the date of consummation of the
Specified Acquisition from any issuance and sale of Equity
Interests in the Borrower (other than any Disqualified Equity
Interests and other than any Equity Interests issued or sold to any
Subsidiary of the Borrower);

 

 

 

 

 

(b) (i) since
January 1, 2017, no event or events shall have occurred that have
had or would reasonably be expected to have, individually or in the
aggregate, a Company Material Adverse Effect (as defined in the
Specified Acquisition Agreement provided to the Arrangers as
described in clause (a)(ii) above); and (ii) the Specified
Acquisition Agreement Representations shall be true and correct as
and to the extent required by the definition of such
term;

 

(c) if requested by
the Arrangers, the Arrangers shall have received (i) solely to the
extent available to the Borrower, (A) audited consolidated
financial statements of the Person to be acquired pursuant to the
Specified Acquisition and its consolidated Subsidiaries for the
fiscal year most recently ended at least 90 days prior to the date
of consummation of the Specified Acquisition (and the related audit
report) and (B) unaudited consolidated financial statements of the
Person to be acquired pursuant to the Specified Acquisition and its
consolidated Subsidiaries for each subsequent fiscal quarter ended
at least 45 days prior to the date of consummation of the Specified
Acquisition, and (ii) a customary pro forma consolidated balance
sheet and related pro forma consolidated statement of operations of
the Borrower, as of the end of or for the latest period of four
consecutive fiscal quarters ended at least 45 days prior to the
date of consummation of the Specified Acquisition (90 days prior to
the date of consummation of the Specified Acquisition in the case
the last such fiscal quarter is the fourth fiscal quarter of the
fiscal year), prepared after giving effect to the transactions
contemplated by the Specified Acquisition Agreement and this
Agreement in respect of the Specified Acquisition as if they had
occurred as of the end of such period (in the case of such balance
sheet) or at the beginning of such period (in the case of such
statement of operations); and

 

(d) at least five
days prior to the date of consummation of the Specified
Acquisition, the Lenders shall have received all documentation and
other information with respect to the Person to be acquired
pursuant to the Specified Acquisition and its Subsidiaries required
by bank regulatory authorities under applicable
“know-your-customer” and anti-money laundering rules
and regulations, including the PATRIOT Act.

 

“EU Bail-In Legislation Schedule”
means the EU Bail-In Legislation Schedule published by the Loan
Market Association (or any successor Person), as in effect from
time to time.

 

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

 

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

 

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

 

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

 

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

 

“Excluded Sources” means the
proceeds of any issuance or incurrence of Indebtedness by, or the
issuance of any Equity Interests by, or the making of capital
contributions to, the Borrower or any of the Restricted
Subsidiaries, the proceeds of any Disposition outside the ordinary
course of business and any other proceeds not included in
Consolidated Net Income.

 

“Excluded Swap Obligation” means,
with respect to any Guarantor at any time, any obligation (a
“Swap
Obligation”) to pay or perform under any agreement,
contract or transaction that constitutes a “swap”
within the meaning of section 1a(47) of the Commodity Exchange Act,
if, and to the extent that, all or a portion of the guarantee of
such Guarantor of, or the grant by such Guarantor of a security
interest to secure, such Swap Obligation (or any guarantee thereof)
is illegal at such time under the Commodity Exchange Act or any
rule, regulation or order of the Commodity Futures Trading
Commission (or the application or official interpretation of any
thereof) by virtue of such Guarantor’s failure for any reason
to constitute an “eligible contract participant” as
defined in the Commodity Exchange Act at the time such guarantee or
grant of a security interest becomes effective with respect to such
related Swap Obligation.

 

 

 

 

 

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

 

“Existing Debt Documents” means (a)
the Credit Agreement, dated as of November 14, 2016, as amended,
among Fusion NBS Acquisition Corp., East West Bank, as
Administrative Agent, Swingline Lender, an Issuing Bank and a
Lender, and the other lenders party thereto, (b) the Fifth Amended
and Restated Securities Purchase Agreement and Security Agreement,
dated as of November 14, 2016, as amended, among Fusion NBS
Acquisition Corp., the Borrower, the subsidiaries of the Borrower
guarantors thereto, Praesidian Capital Opportunity Fund III, LP, as
Agent, and the lenders party thereto, (c) that certain Second
Amended and Restated Unsecured Promissory Note, dated November 14,
2016, payable by the Borrower to Marvin Rosen and (d) the Credit
Agreement, dated as of July 18, 2014, as amended, among the
Acquired Company, Birch Communications, Inc., Cbeyond, Inc., the
other guarantors party thereto, the lenders party thereto and PNC
Bank, National Association, as Administrative Agent.

 

“Existing
EWB Letter of Credit” means the
Irrevocable Standby Letter of Credit No. 17OSL03973 in the amount
of $450,000 issued on August 23, 2017 by East West
Bank.

 

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

 

“Extended/Modified
Commitments” as defined in the definition of
“Extension/Modification Permitted
Amendment”.

 

“Extended/Modified Loans” as
defined in the definition of “Extension/Modification
Permitted Amendment”.

 

“Extended/Modified Term Loans” as
defined in the definition of “Extension/Modification
Permitted Amendment”.

 

“Extended/Modified Term Loan Maturity
Date” means, with respect to Extended/Modified Term
Loans of any Class, the scheduled date on which such
Extended/Modified Term Loans shall become due and payable in full
hereunder, as specified in the applicable Extension/Modification
Agreement.

 

“Extending/Modifying Lenders” as
defined in Section 2.24(a).

 

 

 

 

 

“Extension/Modification Agreement”
means an Extension/Modification Agreement, in form and substance
reasonably satisfactory to the Administrative Agent, among the
Borrower, the Administrative Agent and one or more
Extending/Modifying Lenders, effecting one or more
Extension/Modification Permitted Amendments and such other
amendments hereto and to the other Credit Documents as are
contemplated by Section 2.24.

 

“Extension/Modification Offer” as
defined in Section 2.24(a).

 

“Extension/Modification Permitted
Amendment” means an amendment to this Agreement and
the other Credit Documents, effected in connection with an
Extension/Modification Offer pursuant to Section 2.24, providing
for (a) an extension of the Maturity Date and/or (b) an
increase or decrease in the yield (including any increase or
decrease in, or an introduction of, interest margins, benchmark
rate floors, fixed interest rates or fees or premiums), in each
case, applicable to the Loans and/or Commitments of the
Extending/Modifying Lenders of the applicable
Extension/Modification Request Class (such Loans or Commitments
being referred to as the “Extended/Modified Loans” or
“Extended/Modified
Commitments”, as applicable) and, in connection
therewith:

 

(i)  in
the case of any Extended/Modified Loans that are Term Loans of any
Class (such Extended/Modified Loans being referred to as the
“Extended/Modified Term
Loans”), any modification of the scheduled
amortization applicable thereto, provided that the weighted
average life to maturity of such Extended/Modified Term Loans shall
be no shorter than the remaining weighted average life to maturity
of the Term Loans of the applicable Extension/Modification Request
Class, determined at the time of such Extension/Modification Offer
(and, for purposes of determining the weighted average life to
maturity of any such Term Loans, the effects of any prepayments
made prior to the date of the determination shall be
disregarded),

 

(ii)  a
modification of voluntary or mandatory prepayments applicable to
such Extended/Modified Term Loans (including prepayment premiums,
“no call” terms and other restrictions thereon),
provided that in
the case of any Extended/Modified Term Loans, such requirements may
provide that such Extended/Modified Term Loans may participate in
any mandatory prepayments on a pro rata basis (or on a basis that
is less than pro rata) with the Term Loans of the applicable
Extension/Modification Request Class, but may not provide for
mandatory prepayment requirements that are more favorable than
those applicable to the Term Loans of the applicable
Extension/Modification Request Class, and/or

 

(iii)  any
addition of any affirmative or negative covenants applicable to the
Borrower and/or any Subsidiary, provided that to the extent
such covenants are not consistent with those applicable to the
Loans or Commitments of the applicable Extension/Modification
Request Class, such differences shall be reasonably acceptable to
the Administrative Agent (except for covenants (A) beneficial
to the Lenders where this Agreement is amended to include such
covenants for the benefit of all Lenders (or, in the case of
Extended/Modified Term Loans that are TLA Term Loans, all Lenders
holding TLA Term Loans or Revolving Commitments) or (B) applicable
only to periods after the latest Maturity Date in effect at the
time of effectiveness of the applicable Extension/Modification
Agreement).

 

“Extension/Modification Request
Class” as defined in
Section 2.24(a).

 

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

 

 

 

 

 

“Fair Share” as defined in
Section 7.2(b).

 

“Fair Share Contribution Amount” as
defined in Section 7.2(b).

 

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

 

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

 

“Federal Funds Effective Rate”
means, for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal Funds transactions with
members of the Federal Reserve System on such day, as published by
the Federal Reserve Bank of New York on the Business Day next
succeeding such day; provided that (a) if such day
is not a Business Day, the Federal Funds Effective Rate for such
day shall be such rate on such transactions on the next preceding
Business Day as so published on the next succeeding Business Day,
and (b) if no such rate is so published on such next succeeding
Business Day, the Federal Funds Effective Rate for such day shall
be the average rate quoted to the Administrative Agent on such day
on such transactions by major financial institutions selected by
the Administrative Agent. Notwithstanding the foregoing, if the
Federal Funds Effective Rate, determined as above, would otherwise
be less than zero, then the Federal Funds Effective Rate shall be
deemed to be zero for all purposes of this Agreement.

 

“Fee Letters” means (a) the Fee
Letter, dated April 30, 2018, between Goldman Sachs and the
Borrower, (b) the Amended and Restated Arranger Fee Letter, dated
May 4, 2018, among Goldman Sachs, MSSF, MUFG and the Borrower, (c)
the Administrative Agent Fee Letter and (d) the Vector Letter,
dated May 4, 2018, between Vector SPV and the
Borrower.

 

“Financial Officer Certification”
means (a) with respect to any consolidated financial statements of
any Person, a certificate of the chief financial officer of such
Person stating that such financial statements present fairly, in
all material respects, the consolidated financial position of such
Person and its Subsidiaries as of the dates indicated and the
consolidated results of their operations and their cash flows for
the periods indicated in conformity with GAAP applied on a
consistent basis (except as otherwise disclosed in such financial
statements), subject to changes resulting from normal year-end
audit adjustments and the absence of footnotes, and (b) with
respect to any Unrestricted Subsidiary Reconciliation Statement, a
certificate of the chief financial officer of the Borrower stating
that such reconciliation statement accurately reflects all
adjustments necessary to treat the Unrestricted Subsidiaries as if
they were not consolidated with the Borrower and to otherwise
eliminate all accounts of the Unrestricted Subsidiaries and
reflects no other adjustment from the related GAAP financial
statement (except as otherwise disclosed in such reconciliation
statement).

 

“Financing Transactions” means
(a) the execution, delivery and performance by each Credit
Party of the Credit Documents to which it is to be a party, the
creation of the Liens provided for in the Collateral Documents and,
in the case of the Borrower, the borrowing of Loans, the use of the
proceeds thereof and the issuance of Letters of Credit hereunder
and (b) the execution, delivery and performance by each Credit
Party of the Second Lien Credit Documents to which it is to be a
party, the creation of the Liens provided for in the Second Lien
Credit Documents and, in the case of the Borrower, the borrowing of
the loans under the Second Lien Credit Agreement and the use of the
proceeds thereof.

 

 

 

 

 

“First Lien Net Leverage Ratio”
means the ratio, as of any date, of (a) Consolidated First Lien Net
Debt as of such date to (b) Consolidated Adjusted EBITDA for the
period of four consecutive Fiscal Quarters of the Borrower ended on
such date (or, if such date is not the last day of a Fiscal
Quarter, most recently prior to such date).

 

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

 

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

 

“Fixed Charge Coverage Ratio” means
the ratio, as of the last day of any period of four consecutive
Fiscal Quarters, of (a) Consolidated Adjusted EBITDA for such
period to (b) Consolidated Fixed Charges for such
period.

 

“Fixed Charge Coverage Ratio
Covenant” means the covenant of the Borrower set forth
in Section 6.7(c).

 

“Fixed Charge Coverage Ratio Covenant
Period” means the period commencing on the Closing
Date and terminating on the first date on which the aggregate
outstanding principal amount of the Tranche A Term Loans shall be
zero.

 

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

 

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

 

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

 

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

 

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

 

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

 

 

 

 

 

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

 

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

 

“Fronting Exposure” means, at any
time there is a Revolving Lender that is a Defaulting Lender, with
respect to any Issuing Bank, such Defaulting Lender’s
applicable Pro Rata Share of the Letter of Credit Usage
attributable to Letters of Credit issued by such Issuing Bank,
other than any portion of such Pro Rata Share that has been
reallocated to other Revolving Lenders in accordance with the terms
of Section 2.21(a)(iii) or Cash Collateralized in accordance with
the terms hereof.

 

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

 

“Fusion Global Arrangement” means
the “Fusion Global Arrangement” as defined in the
Merger Agreement as in effect on the Closing Date.

 

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

 

“Goldman Sachs” means Goldman Sachs
Lending Partners LLC.

 

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

 

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

 

 

 

 

 

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

 

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

 

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

 

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

 

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

 

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

 

 

 

 

 

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

 

“Historical Acquired Company Financial
Statements” means the audited consolidated balance
sheets and related audited consolidated statements of operations
and comprehensive income, stockholders’ equity and cash
flows, in each case prepared in conformity with GAAP, of the
Acquired Company and its consolidated Subsidiaries for the fiscal
year ended December 31, 2017.

 

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

 

“Incremental Amount” means, as of
any date of determination, an amount not in excess of (a) (i) the
sum of (A) $50,000,000 and (B) the aggregate principal amount of
Tranche A Term Loans and Tranche B Term Loans prepaid prior to
such date pursuant to Section 2.12(a) and the aggregate amount of
reductions of the Revolving Commitments made, prior to such date,
pursuant to Section 2.12(b), in each case, to the extent not
financed with the proceeds of any Long-Term Indebtedness and
excluding any such reduction in connection with a refinancing
thereof (and, in each case, excluding any prepayments or reductions
thereof in excess of the amount thereof outstanding as of the
Closing Date (less
the aggregate principal amount of Tranche B Term Loans prepaid
pursuant to Section 2.13(d)) or incurred in reliance on this
clause (a)), minus
(ii) the sum of (A) the aggregate amount of Incremental
Commitments established prior to such date in reliance on this
clause (a), (B) the aggregate principal amount of any Permitted
Incremental Equivalent Indebtedness incurred prior to such date in
reliance on this clause (a) and (C) the aggregate principal amount
of any Permitted Second Lien Indebtedness incurred in reliance on
clause (a)(i)(A) of the definition of “Incremental
Amount” under the Second Lien Credit Agreement (or any
comparable successor provision) (the amounts available on such date
under this clause (a) above being referred to as the
“Unrestricted Incremental
Amount”), plus (b) an additional amount
so long as, in the case of this clause (b), after giving Pro Forma
Effect to the incurrence of Indebtedness with respect to which the
Incremental Amount is being determined and the use of proceeds
thereof (but without netting the Cash proceeds of such Indebtedness
(and any other Indebtedness incurred substantially concurrently
therewith), and assuming, solely for purposes of this
determination, that the entire amount of the Incremental
Commitments with respect to which the Incremental Amount is being
determined are fully funded as Loans), (i) in the case of the
establishment of any Incremental Commitments or the incurrence of
any Permitted Incremental Equivalent Indebtedness that is Permitted
Pari Passu Secured Indebtedness, the First Lien Net Leverage Ratio,
determined as of the last day of the Test Period most recently
ended on or prior to such date, shall not exceed 3.20:1.00 (the
“First Lien Incremental
Leverage Limit”), (ii) in the case of the incurrence
of any other Permitted Incremental Equivalent Indebtedness, the
Total Net Leverage Ratio, determined as of the last day of the Test
Period most recently ended on or prior to such date, shall not
exceed 3.65:1.00 (the “Total
Incremental Leverage Limit”) and (iii) the
Borrower shall be in compliance with Sections 6.7(a) and,
during the Fixed Charge Coverage Ratio Covenant Period, 6.7(c),
determined as of the last day of or for, as applicable, the Test
Period most recently ended on or prior to such date; provided that (I) if, for
purposes of determining capacity under clause (b) above, Pro
Forma Effect is given to the entire committed amount of any
Indebtedness with respect to which the Incremental Amount is being
determined, such committed amount may thereafter be borrowed and
reborrowed, in whole or in part, from time to time, without any
further testing under this definition (provided that such committed
amount shall, solely for purposes of calculating availability under
clause (b) above, at all times thereafter be deemed to be
fully funded as Indebtedness for borrowed money), (II) in the
case of any Incremental Commitments or Permitted Incremental
Equivalent Indebtedness established or incurred concurrently in
reliance on the Unrestricted Incremental Amount and in reliance on
clause (b) above, the First Lien Net Leverage Ratio or the Total
Net Leverage Ratio, as the case may be, shall be permitted to
exceed the First Lien Incremental Leverage Limit or the Total
Incremental Leverage Limit, as applicable, to the extent of the
amounts of such Incremental Commitments or Permitted Incremental
Equivalent Indebtedness established or incurred in reliance on the
Unrestricted Incremental Amount, (III) in the case of any
Incremental Commitments or Permitted Incremental Equivalent
Indebtedness established or incurred in reliance on clause (b)
above, any Revolving Loans incurred concurrently therewith or any
other Indebtedness incurred concurrently therewith pursuant to and
in accordance with any clause of Section 6.1 that does not require
observance of the First Lien Net Leverage Ratio or the Total Net
Leverage Ratio shall, solely in the case of
subclauses (i) and (ii) of clause (b) above, be
disregarded for purposes of calculating the First Lien Net Leverage
Ratio or the Total Net Leverage Ratio, as applicable, under such
subclauses of clause (b) above, (IV) in the case of any
Incremental Term Loan Commitment or Permitted Incremental
Equivalent Indebtedness established or incurred in reliance on
clause (b) above, to the extent the proceeds thereof are intended
to be applied to finance a Limited Conditionality Transaction, at
the election of the Borrower, Pro Forma Compliance with the First
Lien Net Leverage Ratio or the Total Net Leverage Ratio, as
applicable, and Sections 6.7(a) and, during the Fixed Charge
Coverage Ratio Covenant Period, 6.7(c) as required under clause (b)
above (but not, for the avoidance of doubt, actual compliance with
Section 6.7(a) or, during the Fixed Charge Coverage Ratio Covenant
Period, 6.7(c)) may be tested in accordance with the provisions of
Section 1.5, and (V) any Incremental Commitments and Permitted
Incremental Equivalent Indebtedness may be established or incurred
in reliance on clause (a) or (b) above regardless of whether
there is capacity under any such other clause above, or may be
established or incurred in reliance in part on clause (a) or (b)
above and in part on any such other clause above, all as determined
by the Borrower in its sole discretion, provided that absent an
election by the Borrower, to the extent that the applicable
requirements have been satisfied, such incurrence shall be deemed
to have been made pursuant to clause (b) above.

 

 

 

 

 

“Incremental Commitment” means an
Incremental Revolving Commitment or an Incremental Term Loan
Commitment.

 

“Incremental Facility Agreement”
means an Incremental Facility Agreement, in form and substance
reasonably satisfactory to the Administrative Agent, among the
Borrower, the Administrative Agent and one or more Incremental
Lenders, establishing Incremental Commitments of any Class,
specifying the purposes for which the proceeds of the Loans made
pursuant thereto will be used and effecting such other amendments
hereto and to the other Credit Documents as are contemplated by
Section 2.23.

 

“Incremental
Interest”
shall mean an additional interest rate of 1.00% per
annum.

 

“Incremental Lender” means an
Incremental Revolving Lender or an Incremental Term
Lender.

 

“Incremental Revolving Commitment”
means, with respect to any Lender, the commitment, if any, of such
Lender, established pursuant to an Incremental Facility Agreement
and Section 2.23, to make Revolving Loans and to acquire
participations in Letters of Credit hereunder, expressed as an
amount representing the maximum aggregate permitted amount of such
Lender’s Revolving Exposure under such Incremental Facility
Agreement.

 

“Incremental Revolving Lender”
means a Lender with an Incremental Revolving
Commitment.

 

“Incremental Term Borrowing” means
a Borrowing comprised of Incremental Term Loans of a single
Class.

 

“Incremental Term Lender” means a
Lender with an Incremental Term Loan Commitment or an Incremental
Term Loan.

 

“Incremental Term Loan” means a
term loan made by an Incremental Term Lender to the Borrower
pursuant to Section 2.23.

 

“Incremental Term Loan Commitment”
means, with respect to any Lender, the commitment, if any, of such
Lender, established pursuant to an Incremental Facility Agreement
and Section 2.23, to make Incremental Term Loans of any Class
hereunder, expressed as an amount representing the maximum
principal amount of the Incremental Term Loans of such Class to be
made by such Lender, subject to any increase or reduction pursuant
to the terms and conditions hereof. The initial amount of each
Lender’s Incremental Term Loan Commitment of any Class, if
any, is set forth in the Incremental Facility Agreement or
Assignment Agreement pursuant to which such Lender shall have
established or assumed its Incremental Term Loan Commitment of such
Class.

 

“Incremental Term Loan Maturity
Date” means, with respect to Incremental Term Loans of
any Class, the scheduled date on which such Incremental Term Loans
shall become due and payable in full hereunder, as specified in the
applicable Incremental Facility Agreement.

 

“Incremental Tranche A Term Loans”
means Incremental Term Loans that have scheduled amortization of
5.00% or more per annum, a final maturity of five years or less
from the date of incurrence and are primarily syndicated to or
otherwise provided by commercial banks (as reasonably determined by
the Borrower in good faith).

 

 

 

 

 

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

 

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

 

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

 

 

 

 

 

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

 

“Indemnitee” as defined in Section
10.3.

 

“Installment” means (a) when used
in respect of the Tranche A Term Loans or Tranche A Term
Borrowings, each payment of the principal amount thereof due under
Section 2.11(a) (including the payment due on the Tranche A Term
Loan Maturity Date), (b) when used in respect of the Tranche B Term
Loans or Tranche B Term Borrowings, each payment of the principal
amount thereof due under Section 2.11(b) (including the payment due
on the Tranche B Term Loan Maturity Date) and (c) when used in
respect of any Term Loans or Term Borrowings of any other Class,
each payment of the principal amount thereof due under Section
2.11(c) (including the payment due on the Maturity Date applicable
to the Term Loans of such Class).

 

“Insurance/Condemnation Event”
means any casualty or other insured damage to, or any taking under
the power of eminent domain or by condemnation or similar
proceeding of, or any Disposition under a threat of such taking of,
all or any part of any assets of the Borrower or any Restricted
Subsidiary, other than any of the foregoing resulting in aggregate
Net Proceeds not exceeding $5,000,000
during any Fiscal Year.

 

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

 

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

 

“Intercompany Indebtedness Subordination
Agreement” means a First Lien Intercompany
Indebtedness Subordination Agreement substantially in the form of
Exhibit G.

 

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

 

“Intercreditor Agreement” means the
Intercreditor Agreement in substantially the form set forth in
Exhibit
I, with such changes therefrom as may be agreed to by the
Administrative Agent and the Borrower or as are contemplated by
Section 10.24.

 

“Interest Payment Date” means (a)
with respect to any Base Rate Loan, the last Business Day of March,
June, September and December of each year, commencing on
the first such date to occur after the Closing Date, and (b) with
respect to any Eurodollar Rate Loan, the last day of each Interest
Period applicable to such Loan and, in the case of any such Loan
with an Interest Period of longer than three months’
duration, each date that is three months, or an integral multiple
thereof, after the commencement of such Interest
Period.

 

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

 

 

 

 

 

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

 

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

 

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

 

“Iqmax Disposition” means the
Disposition by the Borrower and the Restricted Subsidiaries of the
assets acquired pursuant to that certain Asset Purchase Agreement,
dated as of January 24, 2018, by and between Network Billing
Systems, LLC and Iqmax, Inc., such Disposition to be consummated in
accordance with the terms of such Asset Purchase
Agreement.

 

“IRS” means the United States
Internal Revenue Service.

 

“Issuance Notice” means an Issuance
Notice substantially in the form of Exhibit J.

 

 

 

 

 

“Issuing Bank” means (a) each
of Goldman Sachs, MSSF and MUFG and (b) any other Revolving Lender
(or an Affiliate thereof) that shall have become an Issuing Bank as
provided herein, other than any such Person that shall have ceased
to be an Issuing Bank as provided herein, each in its capacity as
an issuer of Letters of Credit hereunder.

 

“ISP” means, with respect to any
Letter of Credit, the “International Standby Practices
1998” published by the Institute of International Banking Law
& Practice, Inc. (or such later version thereof as may be in
effect at the time of issuance).

 

“Junior Indebtedness” means (a) any
Permitted Second Lien Indebtedness, (b) any Permitted Credit
Agreement Refinancing Indebtedness and any Permitted Incremental
Equivalent Indebtedness that, in each case, is Permitted Junior
Lien Secured Indebtedness or Permitted Unsecured Indebtedness and
(c) the Subordinated Notes, any other Permitted Subordinated
Indebtedness or any other Subordinated Indebtedness, other than any
Subordinated Indebtedness owing to the Borrower or any Restricted
Subsidiary.

 

“Junior Lien Intercreditor
Agreement” means, with respect to any Permitted Junior
Lien Secured Indebtedness, the Intercreditor Agreement or any other
intercreditor agreement, in form and substance reasonably
satisfactory to the Collateral Agent and the Borrower, that
contains terms and conditions that are within the range of terms
and conditions customary for intercreditor agreements that are of
the type that govern intercreditor relationships between holders of
senior secured credit facilities and holders of the same type of
Indebtedness as such Permitted Junior Lien Secured
Indebtedness.

 

“LCT Test Date” as defined in
Section 1.5.

 

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

 

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

 

“Lender Presentation” means the
Lender Presentation dated February 2018 and the Transaction Update
dated April 2018, relating to this Agreement and the credit
facilities provided for herein.

 

“Letter of Credit” means a letter
of credit issued or to be issued by any Issuing Bank pursuant to
this Agreement, in each case other than any Letter of Credit that
ceases to be a “Letter of Credit” outstanding hereunder
pursuant to Section 10.8.

 

“Letter of Credit Issuing
Commitment” means, with respect to any Issuing Bank,
the commitment, if any, of such Issuing Bank to issue Letters of
Credit, expressed as an amount representing the maximum aggregate
Letter of Credit Usage attributable to Letters of Credit issued by
such Issuing Bank. The initial amount of each Issuing Bank’s
Letter of Credit Issuing Commitment on the Closing Date, if any, is
set forth on Schedule
2.3. The aggregate amount of the Letter of Credit Issuing
Commitments as of the Closing Date is $15,000,000.

 

“Letter of Credit Sublimit” means
$15,000,000; provided that the Letter of
Credit Sublimit may be increased at any time by the written
agreement of the Borrower, the Administrative Agent and each
Issuing Bank that will provide a Letter of Credit Issuing
Commitment to the Borrower in an aggregate amount for the Issuing
Banks party to such agreement that is not less than the amount of
such increase.

 

 

 

 

 

“Letter of Credit Usage” means, at
any time, the sum of (a) the maximum aggregate amount that is, or
at any time thereafter pursuant to the terms thereof may become,
available for drawing under all Letters of Credit outstanding at
such time (regardless of whether any conditions for drawing could
then be met) and (b) the aggregate amount of all drawings under
Letters of Credit honored by the Issuing Banks and not theretofore
reimbursed by or on behalf of the Borrower. For all purposes of
this Agreement, if on any date of determination a Letter of Credit
has expired by its terms but any amount may still be drawn
thereunder by reason of the operation of Rule 3.13 or Rule 3.14 of
the ISP, Article 29 of the UCP, or any similar provisions in
applicable law or the express terms of such Letter of Credit, such
Letter of Credit shall be deemed to be “outstanding” in
the amount so remaining available to be drawn.

 

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

 

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

 

“Limited Conditionality
Transaction” means an Acquisition or Investment
(other than an intercompany Investment) permitted by this Agreement
that the Borrower or a Restricted Subsidiary is contractually
committed to consummate (it being understood that such commitment
may be subject to conditions precedent, which conditions precedent
may be amended, satisfied or waived in accordance with the terms of
the applicable agreement) and the consummation of which is not
conditioned on the availability of, or on obtaining, third party
financing.

 

“Loan” means a Revolving Loan, a
Tranche A Term Loan, a Tranche B Term Loan, an Incremental Term
Loan of any Class, an Extended/Modified Term Loan of any Class or a
Refinancing Term Loan of any Class.

 

“Long-Term Indebtedness” means any
Indebtedness that, in conformity with GAAP, constitutes (or, when
incurred, constituted) a long-term liability.

 

“Majority in Interest”, when used
in reference to Lenders of any Class, means, at any time, (a) in
the case of the Revolving Lenders, Lenders having Revolving
Exposures and unused Revolving Commitments representing more than
50% of the sum of the Revolving Exposures and unused Revolving
Commitments of all the Revolving Lenders at such time and
(b) in the case of the Term Lenders of any Class, Lenders
having Term Loan Exposure of such Class representing more than 50%
of the Term Loan Exposure of all the Term Lenders of such Class at
such time. For purposes of this definition, the amount of Revolving
Exposures, unused Revolving Commitments and Term Loan Exposures of
any Class shall be determined by excluding the Revolving Exposure,
unused Revolving Commitment and Term Loan Exposure of such Class of
any Defaulting Lender.

 

“Margin Stock” as defined in
Regulation U.

 

“Material Acquisition” means any
Acquisition, or a series of related Acquisitions, by the Borrower
or any Restricted Subsidiary; provided that the portion of
the Consolidated Adjusted EBITDA, calculated on a Pro Forma Basis
for such Acquisition or Acquisitions, attributable to the Persons
or the assets so acquired for the most recent period of 12
consecutive months for which financial statements are available at
the time of the consummation thereof exceeds $10,000,000;
provided
further that the
Specified Acquisition shall in any event constitute a Material
Acquisition.

 

 

 

 

 

“Material Adverse Effect” means a
material adverse effect on (a) the business, results of operations,
assets or financial condition of the Borrower and the Restricted
Subsidiaries, taken as a whole, (b) the ability of the Credit
Parties to fully and timely perform their obligations under the
Credit Documents, taken as a whole, (c) the legality, validity,
binding effect or enforceability against the Credit Parties of any
Credit Documents to which they are party or (d) the rights,
remedies and benefits available to, or conferred upon, any Agent,
any Arranger, any Issuing Bank, any Lender or any Secured Party
under the Credit Documents, taken as a whole.

 

“Material Disposition” means any
Disposition, or a series of related Dispositions, by the Borrower
or any Restricted Subsidiary of (a) all or substantially all
the issued and outstanding Equity Interests in any Person or (b)
assets comprising all or substantially all the assets of (or all or
substantially all the assets constituting a business unit,
division, product line or line of business of) any Person;
provided that the
portion of the Consolidated Adjusted EBITDA for the most recent
Test Period attributable to the Persons or assets so Disposed
exceeds $10,000,000.

 

“Material Indebtedness” means
Indebtedness (other than the Loans and Guarantees under the Credit
Documents), or obligations in respect of one or more Hedge
Agreements, of any one or more of the Borrower and the Restricted
Subsidiaries in an aggregate principal amount of $10,000,0001,500,000
or more, provided
that any Permitted Second Lien Indebtedness, Permitted Incremental
Equivalent Indebtedness, Permitted Credit Agreement Refinancing
Indebtedness and Permitted Subordinated Indebtedness shall at all
times 
constitute “Material Indebtedness”; provided, further,
that the Credit Parties’ equipment financing arrangements
with each of First American Commercial Bank Corp., Inc. and
Varilease Finance, Inc. as of the date hereof shall not
constitute “Material Indebtedness”. In the case of any
Material Indebtedness that is a Guarantee of any other
Indebtedness, each reference to “Material Indebtedness”
shall be deemed to include a reference to such Guaranteed
Indebtedness. For purposes of determining Material Indebtedness,
the “principal amount” of the obligations of the
Borrower or any Restricted Subsidiary in respect of any Hedge
Agreement at any time shall be the maximum aggregate amount (giving
effect to any netting agreements) that the Borrower or such
Restricted Subsidiary would be required to pay if such Hedge
Agreement were terminated at such time.

 

“Material Real Estate Asset” means
each Real Estate Asset owned in fee by a
Credit Party that, together with the improvements thereon and all
contiguous and all related parcels and the improvements thereon
forming part of such Real Estate Asset, has a fair value, as of the
Closing Date or as of the time of the acquisition thereof, of
greater than $51,000,000
in the aggregate.

 

“Material Subsidiary” means each
Restricted Subsidiary (a) the consolidated total assets of
which (determined on a consolidated basis for such Restricted
Subsidiary and its Restricted Subsidiaries) equal 5.0% or more of
the Consolidated Total Assets or (b) the consolidated revenues
of which (determined on a consolidated basis for such Restricted
Subsidiary and its Restricted Subsidiaries) equal 5.0% or more of
the consolidated revenues of the Borrower and the Restricted
Subsidiaries, in each case as of the end of or for the most recent
period of four consecutive Fiscal Quarters of the Borrower for
which financial statements have been delivered pursuant to
Section 5.1(a) or 5.1(b) (or, prior to the delivery
of any such financial statements, as of the end of or for the
period of four consecutive Fiscal Quarters ending with the last
Fiscal Quarter included in the Historical Borrower Financial
Statements); provided that if at the end of
or for any such most recent period of four consecutive Fiscal
Quarters the combined consolidated total assets or combined
consolidated revenues of all Restricted Subsidiaries that under
clauses (a) and (b) above would not constitute Material
Subsidiaries would, but for this proviso, exceed 10.0% of the
Consolidated Total Assets or 10.0% of the consolidated revenues of
the Borrower and the Restricted Subsidiaries, then one or more of
such excluded Restricted Subsidiaries shall for all purposes of
this Agreement be deemed to be Material Subsidiaries in descending
order based on the amounts (determined on a consolidated basis for
such Restricted Subsidiary and its Restricted Subsidiaries) of
their consolidated total assets or consolidated revenues, as the
case may be, until such excess shall have been eliminated;
provided
further that the
Borrower may specify any wholly owned Domestic Subsidiary to be a
Material Subsidiary, irrespective of whether such Subsidiary meets
the requirements set forth under clause (a) or (b) above. For
purposes of this definition, the Consolidated Total Assets and
consolidated revenues of the Borrower as of any date prior to, or
for any period that commenced prior to, the Closing Date shall be
determined on a Pro Forma Basis to give effect to the Merger and
the other Transactions to occur on the Closing Date.

 

 

 

 

 

“Maturity Date” means the Revolving
Maturity Date, the Tranche A Term Loan Maturity Date, the Tranche B
Term Loan Maturity Date, the Incremental Term Loan Maturity Date
with respect to the Incremental Term Loans of any Class, the
Extended/Modified Term Loan Maturity Date with respect to the
Extended/Modified Term Loans of any Class or the Refinancing Term
Loan Maturity Date with respect to the Refinancing Term Loans of
any Class, as the context requires.

 

“Merger” means the merger of the
Acquired Company with and into Merger Sub, with Merger Sub
surviving such merger as a wholly owned Subsidiary of the Borrower,
pursuant to the Merger Agreement.

 

“Merger Agreement” means the
Agreement and Plan of Merger dated as of August 26, 2017, as
amended by the First Amendment to Agreement and Plan of Merger
dated as of September 15, 2017, the Second Amendment to Agreement
and Plan of Merger dated as of September 29, 2017, the Amended and
Restated Third Amendment to Agreement and Plan of Merger dated as
of October 27, 2017, the Fourth Amendment to Agreement and Plan of
Merger, dated as of January 24, 2018, the Fifth Amendment to
Agreement and Plan of Merger, dated as of January 25, 2018, the
Sixth Amendment to Agreement and Plan of Merger, dated as of March
12, 2018, the Seventh Amendment to Agreement and Plan of Merger,
dated as of April 4, 2018, the Eighth Amendment to Agreement and
Plan of Merger, dated as of April 26, 2018, and the Ninth Amendment
to Agreement and Plan of Merger, dated as of April 27, 2018,
by and among the Borrower, Merger Sub and the Acquired Company,
together with the exhibits (including the forms of the
stockholders’ agreement and the registration rights
agreement), disclosure letters and other documents relating
thereto.

 

“Merger Sub” means Fusion BCHI
Acquisition LLC, a Delaware limited liability company.

 

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

 

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

 

“MSSF” means Morgan Stanley Senior
Funding, Inc.

 

“MUFG” means MUFG Union Bank,
N.A.

 

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

 

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

 

 

 

 

 

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

 

“Non-Defaulting Lender” means, at
any time, each Revolving Lender that is not a Defaulting Lender at
such time.

 

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

 

“Obligations” means (a) all
obligations of every nature of each Credit Party under this
Agreement and the other Credit Documents, whether for principal,
interest (including default interest accruing pursuant to
Section 2.9 and interest (including such default interest)
that would continue to accrue pursuant to the Credit Documents on
any such obligation after the commencement of any proceeding under
the Debtor Relief Laws with respect to any Credit Party, whether or
not such interest is allowed or allowable against such Credit Party
in any such proceeding), reimbursement of amounts drawn under
Letters of Credit, fees (including prepayment fees), expenses,
indemnification or otherwise, (b) all Specified Hedge Obligations,
excluding, with respect to any Guarantor, Excluded Swap Obligations
with respect to such Guarantor, and (c)
all Specified Cash Management Services Obligations.

 

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

 

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

 

“Open Market Purchases” as defined
in Section 10.6(i)(ii).

 

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

 

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

 

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

 

 

 

 

 

“Pari Passu Intercreditor
Agreement” means, with respect to any Permitted Pari
Passu Secured Indebtedness, an intercreditor agreement, in form and
substance reasonably satisfactory to the Collateral Agent and the
Borrower, that contains terms and conditions that are within the
range of terms and conditions customary for intercreditor
agreements that are of the type that govern intercreditor
relationships between holders of senior secured credit facilities
and holders of the same type of Indebtedness as such Permitted Pari
Passu Secured Indebtedness.

 

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

 

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

 

“PBGC” means the Pension Benefit
Guaranty Corporation.

 

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

 

“Permitted Acquisition” means any
Acquisition by the Borrower or any Restricted Subsidiary;
provided
that:

 

(a)  (i) in
the case of any Acquisition of Equity Interests in a Person, each
of such Person and its Subsidiaries will become a Restricted
Subsidiary (or will be merged or consolidated with or into the
Borrower or any Restricted Subsidiary, with the continuing or
surviving Person being the Borrower (in the case of any such
transaction involving the Borrower) or a Restricted Subsidiary) and
(ii) in the case of any Acquisition of other assets, such assets
will be owned by the Borrower or any Restricted
Subsidiary;

 

(b)  all
actions required to be taken with respect to such Person or such
assets, as the case may be, in order to satisfy the requirements
set forth in clauses (a), (b), (c) and (d) of the definition of the
term “Collateral and Guarantee Requirement” (subject to
the discretion of the Collateral Agent set forth in such
definition) shall have been taken (or arrangements for the taking
of such actions satisfactory to the Collateral Agent shall have
been made) (it being understood that all other requirements set
forth in such definition that are applicable to such Acquisition
shall be required to be satisfied in accordance with (and within
the time periods provided in) Sections 5.10 and 5.11);

 

(c)  (i)
the Total Net Leverage Ratio, determined as of the last day of the
Test Period most recently ended prior to the consummation thereof
(giving Pro Forma Effect to such Acquisition and any other Pro
Forma Events in connection therewith (including incurrence of
Indebtedness)), shall not be greater than the lesser of (A) the
greater of (x) 3.65:1.00 and (y) the Total Net Leverage Ratio
as of such last day (but determined prior to giving Pro Forma
Effect to such Acquisition or any other Pro Forma Events in
connection therewith (including incurrence of Indebtedness)) and
(B) the maximum Total Net Leverage Ratio permitted under the
financial covenant set forth in Section 6.7(a) and (ii) in the case
of any such Acquisition consummated during the Fixed Charge
Coverage Ratio Covenant Period, the Fixed Charge Coverage Ratio,
determined for the Test Period most recently ended prior to the
consummation thereof (giving Pro Forma Effect to such Acquisition
and any other Pro Forma Events in connection therewith (including
incurrence of Indebtedness)), shall not be less than the minimum
Fixed Charge Coverage Ratio permitted under the financial covenant
set forth in Section 6.7(c); provided that the
Administrative Agent shall have received a certificate of an
Authorized Officer of the Borrower demonstrating that the condition
set forth in this clause (c) have been satisfied; provided, further, that, in the case of
any Limited Conditionality Transaction, at the election of the
Borrower, the condition set forth in this clause (c) may be tested
in accordance with Section 1.5;

 

 

 

 

 

(d)  the
business of any such acquired Person, or such acquired assets, as
the case may be, constitute a business permitted under
Section 6.11;

 

(e)  immediately
prior and after giving effect thereto, no Event of Default shall
have occurred and be continuing or would result therefrom;
provided that, in
the case of any Limited Conditionality Transaction, at the election
of the Borrower, the condition set forth in this clause (e)
may be tested in accordance with Section 1.5; and

 

(f)  the
Acquisition Consideration paid in respect of such Acquisition shall
not be in the form of Cash or Cash Equivalents unless the Fixed
Charge Coverage Ratio, determined as of the last day of the Test
Period most recently ended prior to the consummation thereof
(giving Pro Forma Effect to such Acquisition and any other Pro
Forma Events in connection therewith (including incurrence of
Indebtedness)), (i) in the case of any such Acquisition consummated
on or prior to the third anniversary of the Closing Date, shall be
greater than or equal to 1.40:1.00 and (ii) in the case of any such
Acquisition consummated at any time thereafter, shall be greater
than or equal to 1.50:1.00; provided that the
Administrative Agent shall have received a certificate of an
Authorized Officer of the Borrower demonstrating that the condition
set forth in this clause (f) has been satisfied; provided, further, that, in the case of
any Limited Conditionality Transaction, at the election of the
Borrower, the condition set forth in this clause (f) may be tested
in accordance with Section 1.5.

 

“Permitted Credit Agreement Refinancing
Indebtedness” means Indebtedness permitted under
Section 6.1(i).

 

“Permitted Encumbrances”
means:

 

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

 

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

 

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

 

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

 

 

 

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(p) Liens on Cash
and Cash Equivalents securing obligations in respect of Hedge
Agreements permitted under Section 6.12;

 

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

 

 

 

 

 

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

 

“Permitted Incremental Equivalent
Indebtedness” means Indebtedness permitted under
Section 6.1(h).

 

“Permitted Intercreditor Agreement”
means the Intercreditor 
Agreement, the Bridge Intercreditor Agreement, any Junior
Lien Intercreditor Agreement or any Pari Passu Intercreditor
Agreement.

 

“Permitted Junior Lien Secured
Indebtedness” means any secured Indebtedness of the
Borrower and/or any other Credit Party in the form of one or more
series of junior lien secured bona fide “high yield”
notes, bonds or debentures or junior lien secured term loans, and
the Guarantees thereof by any Credit Party; provided that (a) such
Indebtedness is secured by Liens on all or a portion of the
Collateral on a junior priority basis with the Liens on the
Collateral securing the Obligations and is not secured by any
assets of the Borrower or any Subsidiary other than the Collateral,
(b) such Indebtedness is not Guaranteed by any Person other than
the Credit Parties and (c) the administrative agent, collateral
agent, trustee and/or any similar representative acting on behalf
of the holders of such Indebtedness shall have become party to a
Junior Lien Intercreditor Agreement, providing that the Liens on
the Collateral securing such Indebtedness shall rank junior in
priority to the Liens on the Collateral securing the Obligations;
provided that if
such Indebtedness is the initial Permitted Junior Lien Secured
Indebtedness incurred by the Borrower and the other Credit Parties,
then the Borrower and the other Credit Parties shall have executed
and delivered the Junior Lien Intercreditor Agreement (or an
acknowledgement thereof in the form specified therein) and the
Collateral Agent agrees to execute and deliver, on behalf of the
Lenders and the other Secured Parties, the Junior Lien
Intercreditor Agreement. It is understood and agreed that,
notwithstanding the final paragraph of Section 6.1, Permitted
Junior Lien Secured Indebtedness may only be incurred and
outstanding in reliance on Section 6.1(e), 6.1(h) or
6.1(i).

 

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

 

“Permitted Pari Passu Secured
Indebtedness” means any secured Indebtedness of the
Borrower and/or any other Credit Party in the form of one or more
series of senior secured bona fide “high yield” notes,
bonds or debentures (but not loans), and the Guarantees thereof by
any Credit Party; provided that (a) such
Indebtedness is secured by Liens on all or a portion of the
Collateral on a pari passu basis with the Liens on the Collateral
securing the Obligations (it being understood that the
determination as to whether such Liens are on a pari passu basis
shall be made without regard to control of remedies) and is not
secured by any assets of the Borrower or any Subsidiary other than
the Collateral, (b) such Indebtedness is not Guaranteed by any
Person other than the Credit Parties and (c) the administrative
agent, collateral agent, trustee and/or any similar representative
acting on behalf of the holders of such Indebtedness shall have
become party to a Pari Passu Intercreditor Agreement providing that
the Liens on the Collateral securing such Indebtedness shall rank
equal in priority to the Liens on the Collateral securing the
Obligations (it being understood that the determination as to
whether such Liens rank equal in priority shall be made without
regard to control of remedies); provided that if such
Indebtedness is the initial Permitted Pari Passu Secured
Indebtedness incurred by the Borrower and the other Credit Parties,
then the Borrower and the other Credit Parties shall have executed
and delivered the Pari Passu Intercreditor Agreement (or an
acknowledgement thereof in the form specified therein) and the
Collateral Agent agrees to execute and deliver, on behalf of the
Lenders and the other Secured Parties, the Pari Passu Intercreditor
Agreement. It is understood and agreed that, notwithstanding the
final paragraph of Section 6.1, Permitted Pari Passu Secured
Indebtedness may only be incurred and outstanding in reliance on
Section 6.1(h) or 6.1(i).

 

 

 

 

 

“Permitted Second Lien
Indebtedness” means Indebtedness permitted under
Section 6.1(e). As of the date hereof, Indebtedness under the
Second Lien Credit Agreement constitutes Permitted Second Lien
Indebtedness.

 

“Permitted Second Lien Indebtedness
Documents” means the Second Lien Credit Agreement and
the other Second Lien Credit Documents and any other credit
agreement, indenture or other agreement or instrument evidencing or
governing the rights of the holders of any Permitted Second Lien
Indebtedness.

 

“Permitted Subordinated
Indebtedness” means Indebtedness permitted under
Section 6.1(q). As of the date hereof, the Subordinated Notes
constitute Permitted Subordinated Indebtedness.

 

“Permitted Subordinated Indebtedness
Document” means the Subordinated Notes and any other
credit agreement, indenture or other agreement or instrument
evidencing or governing the rights of the holders of any Permitted
Subordinated Indebtedness.

 

“Permitted Unsecured Indebtedness”
means any Indebtedness of the Borrower and/or any other Credit
Party in the form of one or more series of unsecured, senior or
subordinated bona fide “high yield” notes, bonds or
debentures or unsecured, senior or subordinated term loans;
provided that (a)
such Indebtedness is not secured by any Liens on any assets of the
Borrower or any Subsidiary and (b) such Indebtedness is not
Guaranteed by any Person other than the Credit
Parties.

 

“Person” means any natural person,
corporation, limited partnership, general partnership, limited
liability company, limited liability partnership, joint stock
company, joint venture, association, company, trust, bank, trust
company, land trust, business trust or other organization, whether
or not a legal entity, and any Governmental Authority.

 

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

 

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

 

“Post-Closing Letter Agreement”
means the First Lien Post-Closing Letter Agreement dated as of the
date hereof, among the Borrower, the Administrative Agent and the
Collateral Agent.

 

“Previously Absent Financial Maintenance
Covenant” means, at any time, (a) any financial
maintenance covenant that is not included in this Agreement at such
time for the benefit of all Lenders and (b) any financial
maintenance covenant that is included in this Agreement at such
time for the benefit of all Lenders but has covenant levels or
effectiveness triggers that are more restrictive on the Borrower
and the Restricted Subsidiaries than the covenant levels or
effectiveness triggers set forth in this Agreement at such
time.

 

“Prime Rate” means the rate of
interest quoted in the print edition of The Wall Street Journal, Money Rates
Section as the Prime Rate (currently defined as the base rate on
corporate loans posted by at least 70% of the nation’s 10
largest banks), as in effect from time to time. The Prime Rate is a
reference rate and does not necessarily represent the lowest or
best rate actually charged to any customer. Any Agent and any
Lender may make commercial loans or other loans at rates of
interest at, above or below the Prime Rate.

 

 

 

 

 

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

 

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

 

“Pro Forma Basis”,
“Pro Forma
Compliance” and “Pro Forma Effect” means, with
respect to any Pro Forma Event, that such Pro Forma Event and the
following transactions in connection therewith (to the extent
applicable) shall be deemed to have occurred as of the first day of
the applicable period of measurement for the applicable covenant or
requirement: (a) historical income statement items (whether
positive or negative) attributable to the property or Person, if
any, subject to such Pro Forma Event, (i) in the case of a
Disposition of a business unit, division, product line or line of
business of the Borrower or any Restricted Subsidiary, a
Disposition that otherwise results in a Restricted Subsidiary
ceasing to be a Subsidiary or a designation of a Subsidiary as an
Unrestricted Subsidiary, shall be excluded, and (ii) in the case of
an Acquisition by the Borrower or a Restricted Subsidiary, whether
by merger, consolidation or otherwise, or any other Investment that
results in a Person becoming a Restricted Subsidiary or a
designation of a Subsidiary as a Restricted Subsidiary, shall be
included, (b) any repayment, retirement, redemption, satisfaction
and discharge or defeasance of Indebtedness in connection therewith
and (c) any Indebtedness incurred or assumed by the Borrower or any
of the Restricted Subsidiaries in connection therewith, and if such
Indebtedness has a floating or formula rate, such Indebtedness
shall have an implied rate of interest for the applicable period
for purposes of this definition determined by utilizing the rate
which is or would be in effect with respect to such Indebtedness as
at the relevant date of determination (taking into account any
hedging obligations applicable to such Indebtedness if such hedging
obligation has a remaining term in excess of 12 months). “Pro
Forma Basis,” “Pro Forma Compliance” and
“Pro Forma Effect” in respect of any Pro Forma Event
shall be calculated in a reasonable and factually supportable
manner by the Borrower and in the manner that is consistent with
the definition of Consolidated Adjusted EBITDA. For the avoidance
of doubt, the amount of net cost savings, operating expense
reductions, other operating improvements and synergies projected by
the Borrower in good faith to be realized as a result of actions
taken or to be taken in connection with any Pro Forma Event may be
included in Consolidated Adjusted EBITDA in the manner, and subject
to the limitations, set forth in the definition of such
term.

 

“Pro Forma Event” means (a) any
Acquisition by the Borrower or a Restricted Subsidiary, whether by
merger, consolidation or otherwise, or any other Investment (other
than intercompany Investments), (b) any Disposition of a business
unit, division, product line or line of business of the Borrower or
a Restricted Subsidiary and any other Disposition that results in a
Restricted Subsidiary ceasing to be a Subsidiary, (c) any
designation of a Subsidiary as a Restricted Subsidiary or as an
Unrestricted Subsidiary, (d) any incurrence or repayment,
retirement, redemption, satisfaction and discharge or defeasance of
Indebtedness, (e) any Restricted Junior Payment and (f) any other
transaction where the consummation thereof, or the determination of
whether such transaction is permitted to be consummated under this
Agreement, requires that a financial covenant or test be calculated
on a Pro Forma Basis after giving Pro Forma Effect to such
transaction.

 

“Pro Forma Financial Statements”
means pro forma condensed combined balance sheet as of September
30, 2017 and the pro forma condensed consolidated statements of
operations for the Fiscal Year ended December 31, 2016, in each
case, of the Borrower and its consolidated Subsidiaries, prepared
after giving effect to the Transactions as contemplated by such pro
forma financial statements as if they had occurred as of the end of
such period (in the case of such balance sheet) or on January 1,
2016 (in the case of such statement of operations), in each case as
included in the Definitive Proxy Statement (Form DEF 14A) for the
Borrower filed with the SEC on December 28, 2017, as amended by the
Borrower’s Form 8-K filed with the SEC on February 13,
2018.

 

 

 

 

 

“Pro Rata Share” means, with
respect to any Lender, at any time, (a) when used in reference
to payments, computations and other matters relating to the
Tranche A Term Loans or Tranche A Term Borrowings, the
percentage obtained by dividing (i) the Tranche A Term
Loan Exposure of such Lender at such time by (ii) the
aggregate Tranche A Term Loan Exposure of all the Lenders at
such time, (b) when used in reference to payments, computations and
other matters relating to the Tranche B Term Loans or Tranche
B Term Borrowings, the percentage obtained by dividing (i) the
Tranche B Term Loan Exposure of such Lender at such time by
(ii) the aggregate Tranche B Term Loan Exposure of all
the Lenders at such time, (c) when used in reference to
payments, computations and other matters relating to Term Loan
Commitments, Term Loans or Term Borrowings of any other Class, the
percentage obtained by dividing (i) the Term Loan Exposure of such
Lender with respect to such Class at such time by (ii) the
aggregate Term Loan Exposure of all the Lenders with respect to
such Class at such time, (d) when used in reference to
payments, computations and other matters relating to the Revolving
Commitments, Revolving Loans, Revolving Borrowings or Letters of
Credit or participations therein or Letter of Credit Usage, the
percentage obtained by dividing (i) the Revolving Commitment of
such Lender at such time by (ii) the aggregate Revolving
Commitments of all the Lenders at such time, provided that if the Revolving
Commitments have terminated or expired, the Pro Rata Share under
this clause (d) shall be determined based upon the Revolving
Commitments most recently in effect, giving effect to any
assignments, and (e) when used for any other purpose
(including under Section 9.6), the percentage obtained by dividing
(i) an amount equal to the sum of the Tranche A Term Loan
Exposure, the Tranche B Term Loan Exposure, the Term Loan
Exposure of each such other Class and the Revolving Commitments of
such Lender at such time by (ii) an amount equal to the sum of
the aggregate Tranche A Term Loan Exposure, the aggregate
Tranche B Term Loan Exposure, the aggregate Term Loan Exposure
of each such other Class and the aggregate Revolving Commitments of
all the Lenders at such time; provided that if the Revolving
Commitments have terminated or expired, the Pro Rata Share under
this clause (e) shall be determined based upon the Revolving
Commitments most recently in effect, giving effect to any
assignments.

 

“Projections” means the projections
of the Borrower and the Restricted Subsidiaries for each Fiscal
Quarter of Fiscal Year 2018 and for each Fiscal Year thereafter
through and including Fiscal Year 2025 heretofore provided to the
Lenders.

 

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

 

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

 

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

 

“Qualified ECP
Guarantor” means, in respect of any Swap
Obligation, each Credit Party that has total assets exceeding
$10,000,000 at the time such Swap Obligation is incurred or such
other Person as constitutes an “eligible contract
participant” under the Commodity Exchange Act or any
regulations promulgated thereunder and can cause another Person to
qualify as an “eligible contract participant” at such
time by entering into a keepwell under Section 1a(18)(A)(v)(II) of
the Commodity Exchange Act.

 

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

 

 

 

 

 

“Recipient” means (a) any Agent,
(b) any Lender and (c) any Issuing Bank, as
applicable.

 

“Refinancing Commitment” means a
Refinancing Revolving Commitment or a Refinancing Term Loan
Commitment.

 

“Refinancing Facility Agreement”
means a Refinancing Facility Agreement, in form and substance
reasonably satisfactory to the Administrative Agent, among the
Borrower, the Administrative Agent and one or more Refinancing
Lenders, establishing Refinancing Commitments and effecting such
other amendments hereto and to the other Credit Documents as are
contemplated by Section 2.25.

 

“Refinancing Indebtedness” means,
in respect of any Indebtedness (the “Original Indebtedness”), any
Indebtedness that extends, renews or refinances such Original
Indebtedness (or any Refinancing Indebtedness in respect thereof);
provided that (a)
the principal amount of such Refinancing Indebtedness shall not
exceed the principal amount of such Original Indebtedness except by
an amount not greater than accrued and unpaid interest on such
Original Indebtedness, any original issue discount applicable to
such Refinancing Indebtedness, any unused commitments in respect of
such Original Indebtedness (only if and to the extent that, had
such Original Indebtedness been incurred under such commitments at
the time such Refinancing Indebtedness is incurred, it would have
been permitted hereunder) and any reasonable fees, premiums and
expenses relating to such extension, renewal or refinancing; (b)
the stated final maturity of such Refinancing Indebtedness shall
not be earlier than that of such Original Indebtedness, and such
stated final maturity shall not be subject to any conditions that
could result in such stated final maturity occurring on a date that
precedes the stated final maturity of such Original Indebtedness
(other than as a result of an acceleration of any such stated
maturity upon an event of default or a voluntary termination by the
Borrower or any Restricted Subsidiary of any commitments to extend
credit in respect thereof); (c) the weighted average life to
maturity of such Refinancing Indebtedness shall not be shorter than
the remaining weighted average life to maturity of such Original
Indebtedness (and, for purposes of determining the weighted average
life to maturity of such Original Indebtedness, the effects of any
prepayments made prior to the date of the determination shall be
disregarded); (d) such Refinancing Indebtedness shall not
constitute an obligation (including pursuant to a Guarantee) of any
Restricted Subsidiary that shall not have been (or, in the case of
after-acquired Restricted Subsidiaries, shall not have been
required to become) an obligor in respect of such Original
Indebtedness; (e) if such Original Indebtedness shall have been
subordinated to the Obligations, such Refinancing Indebtedness
shall also be subordinated to the Obligations on terms not less
favorable in any material respect to the Lenders, provided that a certificate of
an Authorized Officer of the Borrower delivered to the
Administrative Agent (with the Administrative Agent agreeing to
provide a copy thereof, together with the drafts referred to below,
to the Lenders promptly upon receipt) at least five Business Days
prior to the incurrence of such Refinancing Indebtedness, together
with drafts of the subordination terms to be applicable thereto,
stating that the Borrower has determined in good faith that such
subordination terms satisfy the requirement of this clause (e)
shall be conclusive evidence that such terms satisfy such
requirement unless the Administrative Agent, the Requisite Tranche
A/Revolving Lenders or the Requisite Lenders notify the Borrower in
writing within such five Business Day period that it or they
disagree with such determination (including a reasonably detailed
description of the basis upon which it or they disagree); (f) if
such Original Indebtedness shall be Permitted Credit Agreement
Refinancing Indebtedness or Permitted Incremental Equivalent
Indebtedness, then (i) such Refinancing Indebtedness satisfies the
Specified Permitted Indebtedness Documentation Requirements, (ii)
if such Original Indebtedness was Permitted Pari Passu Secured
Indebtedness, such Refinancing Indebtedness, if secured, shall be
Permitted Pari Passu Secured Indebtedness or Permitted Junior Lien
Secured Indebtedness and (iii) if such Original Indebtedness was
Permitted Junior Lien Secured Indebtedness, such Refinancing
Indebtedness, if secured, shall be Permitted Junior Lien Secured
Indebtedness; (g) if such Original Indebtedness was Permitted
Second Lien Indebtedness, then such Refinancing Indebtedness shall
satisfy the Specified Permitted Indebtedness Documentation
Requirements and shall be Permitted Junior Lien Secured
Indebtedness or Permitted Unsecured Indebtedness; and (h) such
Refinancing Indebtedness shall not be secured by any Lien on any
asset other than the assets that secured (or, in the case of
after-acquired assets, would be required to secure pursuant to the
terms thereof) such Original Indebtedness or, to the extent such
assets would have been required to secure such Original
Indebtedness pursuant to the terms thereof, that are proceeds and
products of, or after-acquired property that is affixed or
incorporated into, the assets that secured such Original
Indebtedness.

 

 

 

 

 

“Refinancing Lenders” means the
Refinancing Revolving Lenders and the Refinancing Term
Lenders.

 

“Refinancing Loans” means the
Refinancing Revolving Loans and the Refinancing Term
Loans.

 

“Refinancing Revolving Commitments”
as defined in Section 2.25(a).

 

“Refinancing Revolving Lender” as
defined in Section 2.25(a).

 

“Refinancing Revolving Loans” as
defined in Section 2.25(a).

 

“Refinancing Term Lender” as
defined in Section 2.25(a).

 

“Refinancing Term Loans” as defined
in Section 2.25(a).

 

“Refinancing Term Loan Commitments”
as defined in Section 2.25(a).

 

“Refinancing Term Loan Maturity
Date” means, with respect to Refinancing Term Loans of
any Class, the scheduled date on which such Refinancing Term Loans
shall become due and payable in full hereunder, as specified in the
applicable Refinancing Facility Agreement.

 

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

 

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

 

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

 

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

 

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

 

“Reimbursement Date” as defined in
Section 2.3(d).

 

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

 

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

 

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

 

 

 

 

 

“Repricing Event” means, with
respect to any Tranche A Term Loan or Tranche B Term Loan, (a) any
prepayment or repayment of such Tranche A Term Loan or Tranche B
Term Loan, as applicable, with the proceeds of, or made in
connection with the incurrence of, any Indebtedness secured by any
Lien on any asset of any Credit Party (other than any Permitted
Junior Lien Secured Indebtedness) that has a Weighted Average Yield
lower than the Weighted Average Yield of such Tranche A Term Loan
or Tranche B Term Loan, as applicable, at the time of such
prepayment or repayment and (b) any amendment or other modification
of this Agreement that, directly or indirectly, reduces the
Weighted Average Yield of such Tranche A Term Loan or Tranche B
Term Loan, as applicable; provided the primary purpose of
such prepayment, repayment, amendment or other modification was to
reduce the Weighted Average Yield applicable to the Tranche A Term
Loans or Tranche B Term Loans, as applicable.

 

“Requisite Lenders” means, at any
time, Lenders having or holding Revolving Exposure, unused
Revolving Commitments, Tranche A Term Loan Exposure, Tranche B
Term Loan Exposure and Term Loan Exposure of any other Class
representing more than 50% of the sum of the Revolving Exposure,
unused Revolving Commitments, Tranche A Term Loan Exposure, Tranche
B Term Loan Exposure and Term Loan Exposure of each such other
Class of all the Lenders at such time. For purposes of this
definition, the amount of Revolving Exposure, unused Revolving
Commitment, Tranche A Term Loan Exposure, Tranche B Term Loan
Exposure and Term Loan Exposure of any other Class shall be
determined by excluding the Revolving Exposure, unused Revolving
Commitment, Tranche A Term Loan Exposure, Tranche B Term Loan
Exposure and Term Loan Exposure of each such other Class of any
Defaulting Lender.

 

“Requisite Tranche A/Revolving
Lenders” means, at any time, Lenders having or holding
Revolving Exposure, unused Revolving Commitments and Tranche A Term
Loan Exposure representing more than 50% of the sum of the
Revolving Exposure, unused Revolving Commitments and Tranche A Term
Loan Exposure of all the Lenders at such time. For purposes of this
definition, the amount of Revolving Exposure, unused Revolving
Commitment and Tranche A Term Loan Exposure shall be determined by
excluding the Revolving Exposure, unused Revolving Commitment and
Tranche A Term Loan Exposure of any Defaulting
Lender.

 

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

 

“Restricted Subsidiary” means any
Subsidiary that is not an Unrestricted Subsidiary.

 

“Retained ECF Percentage” means,
with respect to any Fiscal Year, (a) 100% minus (b) the Applicable
ECF Percentage with respect to such Fiscal Year.

 

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

 

 

 

 

 

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

 

“Revolving Commitment” means, with
respect to any Lender, the commitment, if any, of such Lender to
make Revolving Loans and to acquire participations in Letters of
Credit hereunder, expressed as an amount representing the maximum
aggregate permitted amount of such Lender’s Revolving
Exposure hereunder. The initial amount of each Lender’s
Revolving Commitment, if any, is set forth on Schedule 2.1
or in the applicable Assignment Agreement or an Incremental
Facility Agreement, as applicable, subject to any increase or
reduction pursuant to the terms and conditions hereof. The
aggregate amount of the Revolving Commitments as of the Closing
Date is $40,000,000.

 

“Revolving Commitment Period” means
the period from the Closing Date to but excluding the Revolving
Commitment Termination Date.

 

“Revolving Commitment Termination
Date” means the earlier to occur of (a) the
Revolving Maturity Date and (b) the date on which all the Revolving
Commitments are terminated or permanently reduced to zero pursuant
hereto.

 

“Revolving Exposure” means, with
respect to any Lender at any time, the sum of (a) the
aggregate principal amount of the Revolving Loans of such Lender
outstanding at such time and (b) such Lender’s applicable Pro
Rata Share of the Letter of Credit Usage at such time.

 

“Revolving Lender” means a Lender
with a Revolving Commitment or Revolving Exposure.

 

“Revolving Loan” means a loan made
by a Lender to the Borrower pursuant to
Section 2.2(a).

 

“Revolving Maturity Date” means the
date that is four years after the Closing Date (or, if such date is
not a Business Day, the immediately preceding Business
Day).

 

“Rollover Indebtedness” means
Indebtedness of any Credit Party issued to any Lender in lieu of
such Lender’s applicable Pro Rata Share of any prepayment of
any Borrowing made pursuant to Section 2.12(a)(i).

 

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

 

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

 

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

 

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

 

 

 

 

 

“Sanctions” as defined in
Section 4.21.

 

“Sanctions Laws” as defined in
Section 4.21.

 

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

 

“Second Lien Credit Agreement”
means the Second Lien Credit and Guaranty Agreement, dated as of
the date hereof, among the Borrower, the Guarantor Subsidiaries,
the lenders party thereto and Wilmington Trust, as administrative
agent and collateral agent thereunder.

 

“Second Lien Credit Documents”
means the “Credit Documents” as defined in the Second
Lien Credit Agreement.

 

“Second Lien Permitted Incremental Equivalent
Indebtedness” has the meaning assigned to the term
“Permitted Incremental Equivalent Indebtedness” (or any
comparable successor provision) in the Second Lien Credit
Agreement.

 

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

 

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

 

“Securities Act” means the
Securities Act of 1933.

 

“Solvency Certificate” means a Solvency Certificate
executed by the chief financial officer of the Borrower
substantially in the form of Exhibit
L.

 

“Solvent” means, with respect to
the Borrower and the Subsidiaries, on a consolidated basis, that as
of the date of determination, (a) the sum of the debt and other
liabilities (including contingent liabilities) of the Borrower and
the Subsidiaries, on a consolidated basis, does not exceed the
present fair saleable value of the present assets of the Borrower
and the Subsidiaries, on a consolidated basis, (b) the capital of
the Borrower and the Subsidiaries, on a consolidated basis, is not
unreasonably small in relation to their business as conducted or
proposed to be conducted, on a consolidated basis, (c) the Borrower
and the Subsidiaries, on a consolidated basis, have not incurred
and do not intend to incur, or believe (nor should they reasonably
believe) that they will incur, debts and liabilities (including
contingent liabilities), on a consolidated basis, beyond the
ability of the Borrower and the Subsidiaries, on a consolidated
basis, to pay such debts and liabilities as they become due
(whether at maturity or otherwise) and (d) the Borrower and the
Subsidiaries, on a consolidated basis, are “solvent”
within the meaning given to that term and similar terms under any
applicable Debtor Relief Laws and other applicable laws relating to
preferences, fraudulent transfers and conveyances or transfers
undervalue. For purposes of this definition, the amount of any
contingent liability at any time shall be computed as the amount
that, in light of all of the facts and circumstances existing at
such time, represents the amount that can reasonably be expected to
become an actual or matured liability (irrespective of whether such
contingent liabilities meet the criteria for accrual under
GAAP).

 

 

 

 

 

“Specified Acquisition” means an
Acquisition identified to the Arrangers prior to the Closing Date
(for the avoidance of doubt, not constituting the Acquisition of
the Acquired Company), the business of which constitutes a business
engaged in (or any business that is similar, complementary or
related to, or a reasonable extension of, the business engaged in)
by the Borrower and the Restricted Subsidiaries (excluding, for
purposes of this definition, the Acquired Company and its
Subsidiaries) on the Closing Date; provided that such Acquisition
(a) if such Acquisition is consummated prior to the Escrow Cash
Collateral Outside Date, to the extent of the Acquisition
Consideration therefor (other than any portion thereof funded with
Net Proceeds received (and not otherwise applied) by the Borrower
after the Closing Date but on or prior to the date of consummation
of such Acquisition from any issuance and sale of Equity Interests
in the Borrower (other than any Disqualified Equity Interests and
other than any Equity Interests issued or sold to any Subsidiary of
the Borrower)), is consummated solely in reliance on Section 6.6(w)
and (b) in any event, is consummated on or prior to December 31,
2018.

 

“Specified Acquisition Agreement”
means the Agreement and Plan of Merger to be entered into by the
Borrower and the other parties thereto in respect of the Specified
Acquisition, together with all exhibits, disclosure schedules and
other documents relating thereto.

 

“Specified Acquisition Agreement
Representations” means such of the representations and
warranties made by or with respect to the Person to be acquired
pursuant to the Specified Acquisition and its Subsidiaries in the
Specified Acquisition Agreement as are material to the interests of
the Lenders (but only to the extent that the Borrower or any of its
Affiliates has the right under the Specified Acquisition Agreement
not to consummate the Specified Acquisition, or to terminate its
obligations under the Specified Acquisition Agreement, as a result
of a failure of such representations and warranties in the
Specified Acquisition Agreement to be true and
correct).

 

“Specified Cash Management Services
Agreement” means any agreement relating to Cash
Management Services that is entered into between the Borrower or
any Restricted Subsidiary and a Cash Management Services
Provider.

 

“Specified Cash Management Services
Obligations” means all obligations of every nature of
the Borrower and each Restricted Subsidiary (whether absolute or
contingent and howsoever and whensoever created, arising, evidenced
or acquired (including all renewals, extensions and modifications
thereof and substitutions therefor)) arising in respect of Cash
Management Services provided under any Specified Cash Management
Services Agreement, including obligations for interest (including
interest that would continue to accrue pursuant to such Specified
Cash Management Services Agreement on any such obligation after the
commencement of any proceeding under the Debtor Relief Laws with
respect to the Borrower or any Restricted Subsidiary, whether or
not such interest is allowed or allowable against the Borrower or
such Restricted Subsidiary in any such proceeding), fees, expenses,
indemnification or otherwise.

 

“Specified Hedge Obligations”
means, with respect to each Hedge Agreement in respect of interest
rates or foreign currency exchange rates that (a) is with a
counterparty that is, or was on the Closing Date, an Agent, an
Arranger, an Issuing Bank or any Affiliate of any of the foregoing,
whether or not such counterparty shall have been an Agent, an
Arranger, an Issuing Bank or any Affiliate of any of the foregoing
at the time such Hedge Agreement was entered into, (b) is in effect
on the Closing Date with a counterparty that is a Lender or an
Affiliate of a Lender as of the Closing Date or (c) is entered
into after the Closing Date with a counterparty that is a Lender or
an Affiliate of a Lender at the time such Hedge Agreement is
entered into, all obligations of every nature of the Borrower or
any Restricted Subsidiary under such Hedge Agreement (whether
absolute or contingent and howsoever and whensoever created,
arising, evidenced or acquired (including all renewals, extensions
and modifications thereof and substitutions therefor)), including
obligations for interest (including interest that would continue to
accrue pursuant to such Hedge Agreement on any such obligation
after the commencement of any proceeding under the Debtor Relief
Laws with respect to the Borrower or any Restricted Subsidiary,
whether or not such interest is allowed or allowable against the
Borrower or such Restricted Subsidiary in any such proceeding),
payments for early termination of such Hedge Agreement, fees,
expenses, indemnification or otherwise.

 

 

 

 

 

“Specified Permitted Indebtedness Documentation
Requirements” means, with respect to any Indebtedness,
the requirements that the terms of such Indebtedness (excluding
interest rates (whether fixed or floating), interest margins,
benchmark rate floors, fees, original issue discounts and
prepayment or redemption terms (including “no call”
terms and other restrictions thereunder) and premiums) are, when
taken as a whole, either (a) not materially more favorable to the
lenders or holders providing such Indebtedness than those
applicable under this Agreement when taken as a whole (other than terms benefitting such lenders or
holders (i) where this Agreement is amended to include such
beneficial terms for the benefit of all Lenders or (ii)
applicable only to periods after the latest Maturity Date in effect
at the time of incurrence of such Indebtedness) or (b) solely in the case of Permitted Pari
Passu Secured Indebtedness, otherwise on current market terms for
such type of Indebtedness; provided that a certificate of
an Authorized Officer of the Borrower delivered to the
Administrative Agent (with the Administrative Agent agreeing to
provide a copy thereof, together with any drafts referred to below,
to the Lenders promptly upon receipt) at least five Business Days
prior to the incurrence of such Indebtedness, together with a
reasonably detailed description of the material terms and
conditions of such Indebtedness or drafts of the documentation
relating thereto, stating that the Borrower has determined in good
faith that such terms and conditions satisfy the requirements of
this definition shall be conclusive evidence that such terms and
conditions satisfy such requirement unless the Administrative
Agent, the Requisite Tranche A/Revolving Lenders or the Requisite
Lenders notify the Borrower in writing within such five Business
Day period that it or they disagree with such determination
(including a reasonably detailed description of the basis upon
which it or they disagree); provided further that such Indebtedness
shall not include any Previously Absent Financial Maintenance
Covenant unless such Previously Absent Financial Maintenance
Covenant applies only to periods after the latest Maturity Date in
effect at the time of incurrence of such Indebtedness or this
Agreement is amended to include such Previously Absent Financial
Maintenance Covenant for the benefit of all Lenders.

 

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

 

“Subordinated Indebtedness” of any
Person means Indebtedness of such Person that is contractually
subordinated in right of payment to any other Indebtedness of such
Person, including, for the avoidance of doubt, the Subordinated
Notes.

 

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

 

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

 

 

 

 

 

“Supplemental Collateral
Questionnaire” means a certificate in the form of
Exhibit M
or any other form approved by the Collateral Agent.

 

“Swap Obligation” as defined in
“Excluded Swap Obligation”.

 

“Syndication Agent” means Goldman
Sachs, in its capacity as syndication agent for the credit
facilities established under this Agreement.

 

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

 

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

 

“Term Lender” means a Lender with a
Term Loan Commitment or a Term Loan.

 

“Term Loan” means a Tranche A Term
Loan, a Tranche B Term Loan, an Incremental Term Loan of any
Class, an Extended/Modified Term Loan of any Class or a Refinancing
Term Loan of any Class.

 

“Term Loan Commitment” means a
Tranche A Term Loan Commitment, a Tranche B Term Loan Commitment,
an Incremental Term Loan Commitment of any Class or a Refinancing
Term Loan Commitment of any Class.

 

“Term Loan Exposure” means, with
respect to any Lender, for any Class of Term Loan Commitments or
Term Loans at any time, (a) prior to the making of the Term Loans
of such Class, the Term Loan Commitment of such Class of such
Lender at such time and (b) after the making of the Term Loans of
such Class, the aggregate principal amount of the Term Loans of
such Class of such Lender at such time.

 

“Test Period” means, for any date
of determination, the most recent period of four consecutive Fiscal
Quarters of the Borrower for which financial statements have been
delivered pursuant to Section 5.1(a) or 5.1(b) (or, prior to the
first delivery of any such financial statements, the period of four
consecutive Fiscal Quarters of the Borrower ended December 31,
2017).

 

“TLA Term Loans” means (a) the
Tranche A Term Loans, (b) the Incremental Tranche A Term Loans
and (c) any other Class of Term Loans that have scheduled
amortization of 5.00% or more per annum, a final maturity of five
years or less from the date of incurrence and are primarily
syndicated to or otherwise provided by commercial banks (as
reasonably determined by the Borrower in good faith).

 

“Total Leverage Ratio” means the
ratio, as of any date, of (a) Consolidated Total Debt as of such
date to (b) Consolidated Adjusted EBITDA for the period of four
consecutive Fiscal Quarters of the Borrower ended on such date (or,
if such date is not the last day of a Fiscal Quarter, most recently
prior to such date).

 

“Total Net Leverage Ratio” means
the ratio, as of any date, of (a) Consolidated Total Net Debt as of
such date to (b) Consolidated Adjusted EBITDA for the period of
four consecutive Fiscal Quarters of the Borrower ended on such date
(or, if such date is not the last day of a Fiscal Quarter, most
recently prior to such date).

 

 

 

 

 

“Total Revolving Commitments”
means, at any time, the sum of the Revolving Commitments of all the
Revolving Lenders in effect at such time.

 

“Total Utilization of Revolving
Commitments” means, at any time, the sum of
(a) the aggregate principal amount of all Revolving Loans
outstanding at such time and (b) the Letter of Credit Usage at
such time.

 

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

 

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

 

“Tranche A Term Loan” means a
term loan made by a Lender to the Borrower pursuant to
Section 2.1(a)(i).

 

“Tranche A Term Loan
Commitment” means, with respect to any Lender, the
commitment, if any, of such Lender to make a Tranche A Term Loan
hereunder, expressed as an amount representing the maximum
principal amount of the Tranche A Term Loan to be made by such
Lender, subject to any increase or reduction pursuant to the terms
and conditions hereof. The initial amount of each Lender’s
Tranche A Term Loan Commitment, if any, is set forth on
Schedule
2.1 or in the Assignment Agreement pursuant to which such
Lender shall have assumed its Tranche A Term Loan Commitment. The
aggregate amount of the Tranche A Term Loan Commitments as of the
Closing Date is $45,000,000.

 

“Tranche A Term Loan Exposure”
means, with respect to any Lender at any time, (a) prior to
the making of Tranche A Term Loans hereunder, the Tranche A Term
Loan Commitment of such Lender at such time and (b) after the
making of Tranche A Term Loans hereunder, the aggregate principal
amount of the Tranche A Term Loans of such Lender outstanding
at such time.

 

“Tranche A Term Loan Maturity
Date” means the date that is four years after the
Closing Date (or, if such date is not a Business Day, the
immediately preceding Business Day).

 

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

 

“Tranche B Term Loan” means a
term loan made by a Lender to the Borrower pursuant to
Section 2.1(a)(ii).

 

“Tranche B Term Loan
Commitment” means, with respect to any Lender, the
commitment, if any, of such Lender to make a Tranche B Term Loan
hereunder, expressed as an amount representing the maximum
principal amount of the Tranche B Term Loan to be made by such
Lender, subject to any increase or reduction pursuant to the terms
and conditions hereof. The initial amount of each Lender’s
Tranche B Term Loan Commitment, if any, is set forth on
Schedule
2.1 or in the Assignment Agreement pursuant to which such
Lender shall have assumed its Tranche B Term Loan Commitment. The
aggregate amount of the Tranche B Term Loan Commitments as of the
Closing Date is $510,000,000.

 

“Tranche B Term Loan Exposure”
means, with respect to any Lender at any time, (a) prior to
the making of Tranche B Term Loans hereunder, the Tranche B Term
Loan Commitment of such Lender at such time and (b) after the
making of Tranche B Term Loans hereunder, the aggregate principal
amount of the Tranche B Term Loans of such Lender outstanding
at such time.

 

“Tranche B Term Loan Maturity
Date” means the date that is five years after the
Closing Date (or, if such date is not a Business Day, the
immediately preceding Business Day).

 

 

 

 

 

“Transactions” means (a) the
Financing Transactions, (b) the Closing Date Refinancing, (c) the
Merger and the other transactions contemplated by the Merger
Agreement, including the distribution of the Consumer/SMB Business
and the consummation of the Fusion Global Arrangement or the
dissolution of Fusion Global Services LLC, (d) the issuance of the
New Subordinated Note, (e) the Closing Date Common Equity Issuance,
(f) the issuance and sale of the Closing Date Preferred Stock and
(g) the payment of fees and expenses in connection with the
foregoing.

 

“Treasury Rate” means, as of any
date of determination of the Yield Maintenance Amount, the yield to
maturity at the time of computation of United States Treasury
securities with a constant maturity (as compiled and published in
the most recent Federal Reserve Statistical Release H.15(519)
that has become publicly available at least two Business Days prior
to such date of determination (or, if such Statistical Release is
no longer published, any publicly available source of similar
market data)) most nearly equal to the period from such date of
determination to but excluding the date that is 12 months after the
Closing Date; provided, however, that if the period
from such date of determination to but excluding the date that is
12 months after the Closing Date is not equal to the constant
maturity of the United States Treasury security for which a weekly
average yield is given, the Treasury Rate shall be obtained by
using the weekly average yield on actually traded United States
Treasury securities adjusted to a constant maturity of one
year.

 

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

 

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

 

“UCP” means, with respect to any
Letter of Credit, the Uniform Customs and Practice for Documentary
Credits, International Chamber of Commerce Publication No. 600 (or
such later version thereof as may be in effect at the time of
issuance).

 

“Unrestricted Cash” means, on any
date, Cash and Cash Equivalents (excluding, for the avoidance of
doubt, security deposits held by the Borrower or any Restricted
Subsidiary) owned on such date by the Borrower or any Restricted
Subsidiary, as reflected on a balance sheet prepared as of such
date in conformity with GAAP (but only to the extent the number
reflected is a positive number); provided that (a) except in the
case of any Cash or Cash Equivalents consisting of Vector
Subordinated Note Collateral, such Cash and Cash Equivalents do not
appear (and would not be required to appear) as
“restricted” on a consolidated balance sheet of such
Person prepared in conformity with GAAP, (b) such Cash and Cash
Equivalents are free and clear of all Liens, other than
(i) nonconsensual Liens permitted by Section 6.2 (including
clause (a) of the definition of the term “Permitted
Encumbrances”), (ii) Liens referred to in clause (i) of the
definition of the term “Permitted Encumbrances”, (iii)
Liens created under the Credit Documents and (iv) Liens
securing any Permitted Second Lien Indebtedness, any Permitted
Credit Agreement Refinancing Indebtedness or any Permitted
Incremental Equivalent Indebtedness, and (c) except in the
case of contractual restrictions in respect of any Vector
Subordinated Note Collateral pursuant to the Vector Subordinated
Note Cash Collateral Control Agreement or this Agreement, the use
of such Cash and Cash Equivalents for application to the payment of
Indebtedness is not prohibited in any material respect by
applicable law or any material Contractual Obligation and such Cash
and Cash Equivalents are not contractually restricted in any
material respect from being distributed to the Borrower;
provided
further that the
Escrow Cash Collateral shall not constitute Unrestricted
Cash.

 

 

 

 

 

“Unrestricted Subsidiary” means (a)
any Subsidiary of the Borrower that is designated as an
Unrestricted Subsidiary in the manner provided below and not
subsequently redesignated as a “Restricted Subsidiary”
in the manner provided below and (b) each Subsidiary of an
Unrestricted Subsidiary.

 

The Borrower may
designate any Subsidiary to be an “Unrestricted
Subsidiary” by delivering to the Administrative Agent a
certificate of the chief financial officer of the Borrower
specifying such designation and certifying that such designated
Subsidiary satisfies the requirements set forth in this definition;
provided that no
Subsidiary may be designated as an Unrestricted Subsidiary unless
(a) immediately after giving Pro Forma Effect to such
designation, no Default or Event of Default has occurred and is
continuing or would result therefrom, (b) immediately after
giving Pro Forma Effect to such designation, (i) the Total Net
Leverage Ratio shall not be greater than the lesser of (A)
4.00:1.00 and (B) the maximum Total Net Leverage Ratio permitted
under the financial covenant set forth in Section 6.7(a), in each
case, determined as of the last day of the then most recently ended
Test Period, (ii) in the case of any such designation during
the Fixed Charge Coverage Ratio Covenant Period, the Fixed Charge
Coverage Ratio shall not be less than the minimum Fixed Charge
Coverage Ratio permitted under the financial covenant set forth in
Section 6.7(c), determined for the then most recently ended Test
Period, and (iii) the combined “EBITDA” of all the
Unrestricted Subsidiaries (calculated in accordance with the
definition of the term Consolidated Adjusted EBITDA, mutatis mutandis) for the most recent period
Test Period then ended shall not exceed 5% of the Consolidated
Adjusted EBITDA for such Test Period, (c) such Subsidiary does
not own any Equity Interests in any of the Restricted Subsidiaries,
(d) neither such Subsidiary nor any of its Subsidiaries owns
or holds any License that is required for the conduct of business
in the ordinary course by the Borrower and the Restricted
Subsidiaries or is otherwise material to the Borrower and the
Restricted Subsidiaries, (e) each Subsidiary of such
Subsidiary has been designated as (and, for so long as it is a
Subsidiary of the Borrower, continues as) an “Unrestricted
Subsidiary” in accordance with this definition, (f) the
Investments in such Unrestricted Subsidiary by the Borrower and the
Restricted Subsidiaries (including, after giving effect to the next
sentence, those resulting from such designation) are permitted
under Section 6.6, (g) such Subsidiary shall have been or will
promptly be designated an “unrestricted subsidiary” (or
otherwise not be subject to the covenants) under any Permitted
Second Lien Indebtedness, any Permitted Credit Agreement
Refinancing Indebtedness, any Permitted Incremental Equivalent
Indebtedness and any Permitted Subordinated Indebtedness and (h) no
Subsidiary may be designated as an Unrestricted Subsidiary if it
was previously an Unrestricted Subsidiary that has been
redesignated as a Restricted Subsidiary. Upon the designation of
any Subsidiary as an Unrestricted Subsidiary, the Borrower and the
Restricted Subsidiaries shall be deemed to have made an Investment
in such Unrestricted Subsidiary in an amount equal at the time of
such designation to the fair value of such Subsidiary (as
determined reasonably and in good faith by the chief financial
officer of the Borrower). The Borrower shall cause each
Unrestricted Subsidiary to satisfy at all times the requirements
set forth in clauses (c), (d) and (g) above.

 

The Borrower may
designate any Unrestricted Subsidiary as a “Restricted
Subsidiary” by delivering to the Administrative Agent a
certificate of the chief financial officer of the Borrower
specifying such redesignation and certifying that such
redesignation satisfies the requirements set forth in this
paragraph; provided
that (a) immediately after giving Pro Forma Effect to such
redesignation, no Default or Event of Default has occurred and is
continuing or would result therefrom and (b) the redesignation of
an Unrestricted Subsidiary as a Restricted Subsidiary shall
constitute the incurrence, at the time of such redesignation, of
any Indebtedness, Liens and Investments of such Subsidiary existing
at such time.

 

 

 

 

 

“Unrestricted Subsidiary Reconciliation
Statement” means, with respect to any balance sheet or
statement of comprehensive income, shareholders’ equity or
cash flows of the Borrower, such financial statement (in
substantially the same form) prepared on the basis of consolidating
the accounts of the Borrower and the Restricted Subsidiaries and
treating Unrestricted Subsidiaries as if they were not consolidated
with the Borrower and otherwise eliminating all accounts of
Unrestricted Subsidiaries, together with an explanation of
reconciliation adjustments in reasonable detail.

 

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

 

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

 

“Vector Collateral” means any
assets of any Vector Lender provided as collateral to secure
obligations of the Vector Lenders under the Vector Senior Loan
Facility (including any such assets in the form of Tranche B Term
Loans held by any Vector Lender).

 

“Vector Facility Arrangements”
means the Vector Senior Loan Facility and the Vector Subordinated
Note.

 

“Vector Lender” means Vector SPV or
any Affiliate thereof that holds Term Loans and is an obligor under
the Vector Senior Loan Facility.

 

“Vector Senior Loan Facility
Lender” means Goldman Sachs or any of its
Affiliates.

 

“Vector Senior Loan Facility” means
the Credit Agreement dated as of May 4, 2018, among Vector SPV, as
borrower, the Vector Senior Loan Facility Lender, Goldman Sachs, as
administrative agent, and U.S. Bank National Association, as
collateral agent and collateral custodian, pursuant to which, and
on the terms and conditions set forth therein, the Vector Senior
Loan Facility Lender shall make a senior secured loan to Vector
SPV, which loan shall be secured by, among other things, the
Tranche B Term Loans held by Vector SPV and a cash reserve funded
in part with the proceeds of the Vector Subordinated
Note.

 

“Vector SPV” means Vector Fusion
Holdings (Cayman) Ltd., an exempted company incorporated with
limited liability under the laws of the Cayman Islands that is a
subsidiary of Vector Capital V, L.P.

 

“Vector Subordinated Note” means
the Subordinated Note dated May 4, 2018, and in a principal amount
of $25,000,000, issued by Vector SPV to the Borrower for cash
consideration of $25,000,000.

 

“Vector Subordinated Note Cash Collateral
Account” means a blocked deposit account maintained
with East West Bank or another depository institution reasonably
acceptable to the Majority in Interest of the Revolving Lenders (a)
in which any prepayment or repayment or other amount or value
received by the Borrower or any of its Subsidiaries in respect of
the Vector Subordinated Note shall be deposited in accordance with
Section 5.16 to be held as cash collateral securing the Obligations
and (b) that is subject to a control agreement in favor of the
Collateral Agent, in form and substance reasonably satisfactory to
the Majority in Interest of the Revolving Lenders (the
“Vector Subordinated Note
Cash Collateral Control Agreement”), pursuant to which
the amounts on deposit in the Vector Subordinated Note Cash
Collateral Account shall be subject to the sole control and
dominion of the Collateral Agent, to be released by the Collateral
Agent solely in accordance with the provisions of Section
9.8(d)(ii)(D).

 

 

 

 

 

“Vector Subordinated Note Cash Collateral
Control Agreement” as defined in the definition of the
term “Vector Subordinated Note Cash Collateral
Account”.

 

“Vector Subordinated Note
Collateral” means all right, title and interest in, to
and under any and all of the following assets and properties now
owned or at any time hereafter acquired by any Credit Party or in
which any Credit Party now has or at any time in the future may
acquire any right, title or interest: (a) the Vector Subordinated
Note, all rights of the Credit Parties under the Vector
Subordinated Note, including such rights in respect of all Accounts
and Payment Intangibles arising from, and all other amounts or
value received by any Credit Party in respect of, the foregoing,
(b) the Vector Subordinated Note Cash Collateral Account and all
Cash and Cash Equivalents on deposit therein, including all
interest and profits thereon, and (c) all Proceeds, substitutions
or replacements of the foregoing; provided that any Cash or Cash
Equivalents released to the Borrower from the Vector Subordinated
Note Cash Collateral Account in accordance with Section
9.8(d)(ii)(D) shall, upon such release, no longer constitute Vector
Subordinated Note Collateral or Proceeds thereof.

 

“Weighted Average Yield” means, at
any time, with respect to any Loan or other Indebtedness, the
weighted average yield to stated maturity of such Loan or other
Indebtedness based on the interest rate or rates applicable thereto
and giving effect to all upfront or similar fees or original issue
discount payable by the Borrower or any of its Affiliates to the
Lenders or other applicable creditors advancing such Loan or other
Indebtedness with respect thereto (but not any arrangement fees,
structuring fees, commitment fees, underwriting fees or other fees
not paid generally to all such Lenders or other applicable
creditors, and excluding any ticking or amendment fees previously
paid with respect to such Loans or other Indebtedness) (in each
case, with upfront or similar fees or original issue discount being
deemed to constitute like amounts of original issue discount, and
such fees and original discount being equated to interest margins
in a manner consistent with generally accepted financial practice
based on an assumed life to maturity of the lesser of four years
and the tenor of such Loan or other Indebtedness) and to any
interest rate “floor”. It is agreed that, for purposes
of determining the Weighted Average Yield of the Tranche B Term
Loans, subject to adjustment for any fees payable by the Borrower
or any of its Affiliates after the Closing Date in accordance with
the foregoing provisions of this definition, the upfront or similar
fees or original issue discount applicable to all the Tranche B
Term Loans outstanding on the Closing Date shall be deemed to be
4.00%). For purposes of determining the Weighted Average Yield of
any floating rate Indebtedness at any time, the rate of interest
applicable to such Indebtedness at such time shall be assumed to be
the rate applicable at all times prior to maturity; provided that appropriate
adjustments shall be made for any scheduled changes in rates of
interest provided for in the documents governing such Indebtedness.
Determinations of the Weighted Average Yield shall be made in a
manner consistent with accepted financial practice.

 

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

 

“Wilmington Trust” as defined in
the preamble hereto.

 

“Write-Down and Conversion Powers”
means, with respect to any EEA Resolution Authority, the write-down
and conversion powers of such EEA Resolution Authority from time to
time under the Bail-In Legislation for the applicable EEA Member
Country, which write-down and conversion powers are described in
the EU Bail-In Legislation Schedule.

 

 

 

 

 

“Yield Maintenance Amount” means,
with respect to any Tranche B Term Loan that is prepaid pursuant to
Section 2.12(a)(i) (for the avoidance of doubt, including on
account of the requirements set forth in Section 2.25) or 2.13(c)
or is subject to any amendment or other modification of this
Agreement that, directly or indirectly, reduces the Weighted
Average Yield of such Tranche B Term Loan (or is required to be
assigned pursuant to Section 2.22 in connection with such
amendment or modification), an amount equal to the present value of
the sum of (a) the aggregate amount of interest that would have
otherwise been payable on the principal amount of such Tranche B
Term Loan so prepaid or subject to such amendment or modification
(or assignment) (assuming that such Tranche B Term Loan will bear
interest at a rate per annum equal to the sum of (i) the Adjusted
Eurodollar Rate for an Interest Period of three months (giving
effect to any floor rate) as of the date of such prepayment or
amendment or modification (or assignment) plus (ii) the Applicable
Rate with respect to Tranche B Term Loans that are Eurodollar Rate
Loans) from the date of such prepayment or amendment or
modification (or assignment) through the date that is
12 months after the Closing Date, plus (b) 1.00% of the
principal amount of such Tranche B Term Loan so prepaid or subject
to such amendment or modification (or assignment), discounted in
accordance with accepted financial practice at a discount rate
(applied on the same periodic basis as that on which interest on
the Tranche B Term Loans is payable) equal to the Treasury Rate
plus 50 basis points per annum. Determinations of the Yield
Maintenance Amount shall be made in a manner consistent with
accepted financial practice.

 

1.2. Accounting
Terms; Pro Forma Calculations. Except as otherwise expressly
provided herein, all terms of an accounting or financial nature
used herein shall be construed in conformity with GAAP as in effect
from time to time; provided that (i) if the
Borrower, by notice to the Administrative Agent, shall request an
amendment to any provision hereof to eliminate the effect of any
change occurring after the date hereof in GAAP or in the
application thereof on the operation of such provision (or if the
Administrative Agent or the Requisite Lenders, by notice to the
Borrower, shall request an amendment to any provision hereof for
such purpose), regardless of whether any such notice is given
before or after such change in GAAP or in the application thereof,
then such provision shall be interpreted on the basis of GAAP as in
effect and applied immediately before such change shall have become
effective until such notice shall have been withdrawn or such
provision amended in accordance herewith and
(ii) notwithstanding any other provision contained herein, all
terms of an accounting or financial nature used herein shall be
construed, and all computations of amounts and ratios referred to
herein shall be made, (A) without giving effect to any election
under Financial Accounting Standards Board Accounting Standards
Codification 825 (or any other Accounting Standards Codification or
Financial Accounting Standard having a similar result or effect)
(and related interpretations) to value any Indebtedness or other
liabilities of the Borrower or any Subsidiary at “fair
value”, as defined therein, (B) without giving effect to
any treatment of Indebtedness in respect of convertible debt
instruments under Accounting Standards Codification 470-20 (or any
other Accounting Standards Codification or Financial Accounting
Standard having a similar result or effect) to value any such
Indebtedness in a reduced or bifurcated manner as described
therein, and such Indebtedness shall at all times be valued at the
full stated principal amount thereof, and (C) without giving
effect to any change to GAAP occurring after the date hereof as a
result of the adoption of any proposals set forth in the
Proposed Accounting Standards
Update, Leases (Topic 842), issued by the Financial
Accounting Standards Board on May 16, 2013, or any other proposals
issued by the Financial Accounting Standards Board in connection
therewith, in each case if such change would require treating any
lease (or similar arrangement conveying the right to use) as a
capital lease where such lease (or similar arrangement) was not
required to be so treated under GAAP as in effect on December 31,
2015. It is understood and agreed that when any term of an
accounting or financial nature refers to a determination being made
on a “consolidated basis”, when such reference is made
with respect to the Borrower and the Restricted Subsidiaries (or
any Restricted Subsidiary and its Restricted Subsidiaries), such
determination shall exclude from such consolidation the accounts of
the Unrestricted Subsidiaries.

 

 

 

 

 

(a) All computations
required to be made hereunder giving effect to any Acquisition,
Disposition or other Pro Forma Event shall be calculated after
giving Pro Forma Effect thereto (and, in the case of any
computations made hereunder to determine whether such Acquisition,
Disposition or other Pro Forma Event is permitted to be consummated
hereunder, to any other such Pro Forma Event consummated since the
first day of the period covered by any component of such Pro Forma
computation and on or prior to the date of such computation) as if
such Pro Forma Event occurred on the first day of the most recent
Test Period. It is understood that, prior to the last day of the
Test Period ending on June 30, 2018, for purposes of any provision
hereof that requires compliance with Section 6.7(a) or 6.7(c) on a
Pro Forma Basis, such compliance will be determined based on the
ratio set forth in Section 6.7(a) or 6.7(c), as applicable, that
would be first applicable under such Section.

 

(b) Prior to the
release of the Escrow Cash Collateral in accordance with the terms
of the Escrow Cash Collateral Control Agreement and Section
9.8(d)(ii), Tranche B Term Loans in an aggregate principal amount
equal to the amount of Escrow Cash Collateral on deposit in the
Escrow Cash Collateral Account at any time, but in no event in
excess of the Escrow Cash Amount, shall be deemed not to be
outstanding solely for purposes of determining actual compliance by
the Borrower with Section 6.7(a) or 6.7(c).

 

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

 

 

 

 

 

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

 

1.5. Conditionality
Testing Date. Solely for purposes of determining compliance with
any provision of this Agreement (including compliance with the
First Lien Net Leverage Ratio, the Fixed Charge Coverage Ratio, the
Total Leverage Ratio, the Total Net Leverage Ratio or any other
financial metric, the absence of any Default or Event of Default
and the accuracy of any representation or warranty) that expressly
permits such compliance to be determined or tested in accordance
with the provisions of this Section 1.5 in connection with a
Limited Conditionality Transaction (but, for the avoidance of
doubt, not for purposes of determining whether the Borrower has
actually complied with Section 6.7 itself), the date of
determination of whether such provision has been satisfied shall,
at the option of the Borrower and upon delivery by the Borrower on
or prior to the applicable LCT Test Date of a written notice to
that effect to the Administrative Agent, be the date on which the
definitive agreements for such Limited Conditionality Transaction
are entered into (the “LCT Test Date”), with such
determination to give effect on a Pro Forma Basis to such Limited
Conditionality Transaction and the other transactions to be entered
into in connection therewith (including any incurrence of
Indebtedness or Liens and the use of proceeds thereof) as if they
had occurred at the beginning of the most recent Test Period ending
prior to the LCT Test Date. For the avoidance of doubt, if the
Borrower has exercised such option and any of the ratios, financial
metrics or amounts for which compliance was determined or tested as
of the LCT Test Date are exceeded as a result of fluctuations in
any such ratio, financial metric or amount, including due to
fluctuations in Consolidated Adjusted EBITDA, at or prior to the
consummation of the Limited Conditionality Transaction, such ratio,
financial metric or amount will be deemed not to have been exceeded
as a result of such fluctuations solely for purposes of determining
whether such provision has been satisfied in connection with such
Limited Conditionality Transaction. If the Borrower has exercised
such option in connection with any Limited Conditionality
Transaction, then, in connection with any subsequent calculation of
ratios, financial metrics or amounts (but, for the avoidance of
doubt, not for purposes of determining whether the Borrower has
actually complied with Section 6.7 itself) on or following the
relevant LCT Test Date and prior to the earlier of (a) the date on
which such Limited Conditionality Transaction is consummated and
(b) the date that the definitive agreements for such Limited
Conditionality Transaction are terminated or expire without
consummation of such Limited Conditionality Transaction (with the
Borrower agreeing to provide the Administrative Agent with prompt
notice thereof), any such ratio, financial metric or basket shall
be calculated on a Pro Forma Basis assuming such Limited
Conditionality Transaction and the other transactions in connection
therewith (including any incurrence of Indebtedness or Liens and
the use of proceeds thereof) have been consummated.

 

1.6. Effectuation
of Transactions. All references herein to the Borrower and the
Subsidiaries or the Restricted Subsidiaries shall be deemed to be
(unless the context otherwise requires) references to such Persons,
and all the representations and warranties of the Borrower and the
other Credit Parties contained in this Agreement and the other
Credit Documents shall be deemed made, in each case, after giving
effect to the Merger and the other Transactions to occur on the
Closing Date.

 

SECTION
2. LOANS
AND LETTERS OF CREDIT

 

2.1. Term
Loans. Term Loan
Commitments. Subject to the terms and conditions hereof,
each Lender agrees to make, on the Closing Date, a term loan to the
Borrower in Dollars in a principal amount not to exceed such
Lender’s Tranche A Term Loan Commitment. Amounts
borrowed pursuant to this Section 2.1(a)(i) that are repaid or
prepaid may not be reborrowed. Each Lender’s Tranche A Term
Loan Commitment shall terminate immediately and without any further
action upon the making of a Tranche A Term Loan, as applicable, by
such Lender or, if earlier, at 5:00 p.m. (New York City time) on
the Closing Date.

 

 

 

 

 

(i) Subject to the
terms and conditions hereof, each Lender agrees to make, on the
Closing Date, a term loan to the Borrower in Dollars in a principal
amount not to exceed such Lender’s Tranche B Term Loan
Commitment. Amounts borrowed pursuant to this
Section 2.1(a)(ii) that are repaid or prepaid may not be
reborrowed. Each Lender’s Tranche B Term Loan Commitment
shall terminate immediately and without any further action upon the
making of a Tranche B Term Loan, as applicable, by such Lender or,
if earlier, at 5:00 p.m. (New York City time) on the Closing
Date.

 

(ii) Additional Classes
of Term Loan Commitments may be established as provided in Section
2.23 or 2.25, and the Term Loans thereunder shall be made in
accordance with, and subject to the terms and conditions set forth
in, such Section.

 

(a) Borrowing Mechanics for Term
Loans.

 

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

 

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

 

(iii) Each Lender shall
make the principal amount of each Term Loan required to be made by
it hereunder on any Credit Date available to the Administrative
Agent not later than 1:00 p.m. (New York City time) on such
Credit Date (or, with respect to any Borrowing of Incremental Term
Loans or Refinancing Term Loans, not later than such other time as
shall be specified therefor in the applicable Incremental Facility
Agreement or Refinancing Facility Agreement) by wire transfer of
same day funds in Dollars to the account of the Administrative
Agent most recently designated by it for such purpose by notice to
the Lenders. The Administrative Agent will make each such Term Loan
available to the Borrower by promptly remitting the amounts so
received, in like funds, to the account specified by the Borrower
in the applicable Funding Notice (it being agreed that, in the case
of the Tranche B Term Loans made on the Closing Date, an amount of
the proceeds thereof equal to the Escrow Cash Amount shall be
remitted, in like funds, by the Administrative Agent to the Escrow
Cash Collateral Account).

 

 

 

 

 

2.2. Revolving
Loans. Revolving
Commitments. During the Revolving Commitment Period, subject
to the terms and conditions hereof, each Lender agrees to make
loans to the Borrower in Dollars in an aggregate principal amount
at any one time outstanding that will not result in (i) such
Lender’s Revolving Exposure exceeding its Revolving
Commitment or (ii) the Total Utilization of Revolving
Commitments exceeding the Total Revolving Commitments. Amounts
borrowed pursuant to this Section 2.2(a) that are repaid or prepaid
may, subject to the terms and conditions hereof, be reborrowed
during the Revolving Commitment Period. Each Lender’s
Revolving Commitment shall terminate on the Revolving Commitment
Termination Date.

 

(a) Borrowing Mechanics for Revolving
Loans.

 

(i) Each Revolving Loan
shall be made as part of a Borrowing consisting of Revolving Loans
of the same Type made by the Revolving Lenders proportionately to
their applicable Pro Rata Shares. At the commencement of each
Interest Period for any Eurodollar Rate Revolving Borrowing, such
Borrowing shall be in an aggregate amount of $1,000,000 or an
integral multiple of $500,000 in excess of such amount;
provided that a
Eurodollar Rate Revolving Borrowing that results from a
continuation of an outstanding Eurodollar Rate Revolving Borrowing
may be in an aggregate amount that is equal to the amount of such
outstanding Borrowing. At the time each Base Rate Revolving
Borrowing is made, such Borrowing shall be in an aggregate amount
of $1,000,000 or an integral multiple of $500,000 in excess of such amount;
provided that such
Borrowing may be in an aggregate amount that is equal to the entire
unused balance of the Total Revolving Commitments or that is
required to finance the reimbursement of a drawing under a Letter
of Credit as contemplated by Section 2.3(d).

 

(ii) To request a
Revolving Borrowing, the Borrower shall deliver to the
Administrative Agent a fully completed and executed Funding Notice
(A) in the case of a Eurodollar Rate Revolving Borrowing, not later
than 2:00 p.m. (New York
City time) at least three Business Days in advance of the proposed
Credit Date (which shall be a Business Day) and (B) in the
case of a Base Rate Revolving Borrowing, not later than
11:00 a.m. (New York City time) at least one Business Day in
advance of the proposed Credit Date (which shall be a Business
Day). In lieu of delivering a Funding Notice, the Borrower may give
the Administrative Agent, not later than the applicable time set
forth above, telephonic notice of any proposed Revolving Borrowing;
provided that such
telephonic notice shall be promptly confirmed in writing by
delivery to the Administrative Agent of a fully completed and
executed Funding Notice. Promptly upon receipt by the
Administrative Agent of a Funding Notice or a telephonic notice in
accordance with this paragraph, the Administrative Agent shall
notify each Revolving Lender of the details thereof and of the
amount of such Lender’s Revolving Loan to be made as part of
the requested Revolving Borrowing. Following delivery of a Funding
Notice or a telephonic notice for a Eurodollar Rate Revolving
Borrowing, any failure to make such Borrowing shall be subject to
Section 2.17(c).

 

(iii) Each Lender shall
make the principal amount of the Revolving Loan required to be made
by it hereunder on any Credit Date available to the Administrative
Agent not later than 1:00 p.m. (New York City time) on such
Credit Date by wire transfer of same day funds in Dollars to the
account of the Administrative Agent most recently designated by it
for such purpose by notice to the Lenders. The Administrative Agent
will make each such Revolving Loan available to the Borrower by
promptly remitting the amounts so received, in like funds, to the
account specified by the Borrower in the applicable Funding Notice
(or, in the case of a Base Rate Revolving Borrowing specified by
the Borrower in the applicable Funding Notice as made to finance
reimbursement of a drawing under a Letter of Credit as contemplated
by Section 2.3(d), to the applicable Issuing
Bank).

 

 

 

 

 

2.3. Letters
of Credit. General.
During the Revolving Commitment Period, subject to the terms and
conditions hereof, each Issuing Bank agrees to issue Letters of
Credit for the account of the Borrower; provided that no Letter of
Credit shall be, or shall be required to be, issued (or shall be
amended or extended) by any Issuing Bank unless (i) such Issuing
Bank (if other than the Person serving as the Administrative Agent)
shall have given written notice thereof to the Administrative Agent
pursuant to Section 2.3(g), (ii) after giving effect thereto
(A) the Total Utilization of Revolving Commitments shall not
exceed the Total Revolving Commitments, (B) the Letter of Credit
Usage shall not exceed the Letter of Credit Sublimit and (C) the
Letter of Credit Usage attributable to Letters of Credit issued by
such Issuing Bank shall not exceed the Letter of Credit Issuing
Commitment of such Issuing Bank, (iii) such Letter of Credit shall
be denominated in Dollars, (iv) such Letter of Credit shall
have an expiration date that is not later than the earlier of (A)
five Business Days prior to the Revolving Maturity Date and (B) the
date that is one year after the date of issuance of such Letter of
Credit (or, in the case of an extension of any Letter of Credit,
one year after the then-current expiration date at the time of such
extension), provided that, in the case of
any Letter of Credit, such Issuing Bank may agree that such Letter
of Credit will automatically extend for one or more successive
periods not to exceed one year each (but in any event to a date not
later than five Business Days prior to the Revolving Maturity Date)
unless such Issuing Bank elects not to extend for any such
additional period and (v) such issuance (or amendment or extension)
is in accordance with such Issuing Bank’s standard operating
procedures. Each Letter of Credit shall be in a form acceptable to
the applicable Issuing Bank in its discretion and shall be of the
type approved for issuance by such Issuing Bank (it being
understood that standby Letters of Credit are deemed to be
approved).

 

(a) Request for Issuance, Amendment,
Renewal or Extension. To request the issuance of a Letter of
Credit (or the amendment or extension (other than an automatic
extension permitted under Section 2.3(a)) of an outstanding Letter
of Credit), the Borrower shall deliver to the Administrative Agent
and the applicable Issuing Bank a fully completed and executed
Issuance Notice not later than 11:00 a.m. (New York City
time) at least two
Business Days, or such shorter period as may be agreed to by such
Issuing Bank in any particular instance, in advance of the proposed
date of issuance, amendment or extension. If requested by the
applicable Issuing Bank, the Borrower also shall submit, not later
than the time set forth above, a completed and executed letter of
credit application on such Issuing Bank’s standard form in
connection with any such request; provided that in the event of
any inconsistency or conflict between the terms and conditions of
such letter of credit application and the terms and conditions of
this Agreement or any other Loan Document, the terms and conditions
of this Agreement or such Loan Document shall govern and
control.

 

 

 

 

 

(b) Responsibility of the Issuing
Banks. In determining whether to honor any drawing under any
Letter of Credit, the Issuing Banks shall not have any
responsibility to obtain any document (other than any sight draft,
certificates and documents expressly required by the Letter of
Credit) or to ascertain or inquire as to the validity or accuracy
of any such document or the authority of the Person executing or
delivering any such document, it being agreed that, with respect to
such documents that appear on their face to be in substantial
compliance, but are not in strict compliance, with the terms of
such Letter of Credit, the applicable Issuing Bank may, in its sole
discretion, either accept and make payment upon such documents
without responsibility for further investigation, regardless of any
notice or information to the contrary, or refuse to accept and make
payment upon such documents. None of the Issuing Banks, the Agents,
any of their respective Related Parties or any correspondent,
participant or assignee of any Issuing Bank shall be liable to any
Lender for (i) any action taken or omitted in connection herewith
at the request or with the approval of the Requisite Lenders or the
Majority in Interest of the Revolving Lenders, as applicable, (ii)
any action taken or omitted in the absence of gross negligence or
willful misconduct, as determined by a final, non-appealable
judgment of a court of competent jurisdiction, (iii) the due
execution, effectiveness, validity or enforceability of any
document or instrument related to any Letter of Credit or entered
into in connection with any Letter of Credit, (iv) the form,
validity, sufficiency, accuracy, genuineness or legal effect of any
document submitted by any Person in connection with the application
for and issuance of any Letter of Credit, even if it should in fact
prove to be in any or all respects invalid, insufficient,
inaccurate, fraudulent or forged, (v) the validity or
sufficiency of any instrument transferring or assigning or
purporting to transfer or assign any Letter of Credit or the rights
or benefits thereunder or proceeds thereof, in whole or in part,
that may prove to be invalid or ineffective for any reason,
(vi) failure of the beneficiary of any Letter of Credit to
comply with any conditions required in order to draw upon such
Letter of Credit, (vii) errors, omissions, interruptions or
delays in transmission or delivery of any messages, by mail,
facsimile or otherwise, (viii) errors in interpretation of
technical terms, (ix) any loss or delay in the transmission or
otherwise of any document required in order to make a drawing under
any Letter of Credit, (x) the misapplication by the beneficiary of
any Letter of Credit of the proceeds of any drawing under such
Letter of Credit or (xi) any consequences arising from causes
beyond the control of the applicable Issuing Bank, including any
Governmental Acts. The Borrower hereby assumes all risks of the
acts or omissions of any beneficiary or transferee with respect to
its use of any Letter of Credit; provided that this assumption
is not intended to, and shall not, preclude the Borrower’s
pursuing such rights and remedies as it may have against the
beneficiary or transferee at law or under any other agreement. None
of the Issuing Banks, the Agents, any of their respective Related
Parties or any correspondent, participant or assignee of any
Issuing Bank shall be liable or responsible for any of the matters
described in Section 2.3(k); provided that anything in such
Section to the contrary notwithstanding, the Borrower may have a
claim against an Issuing Bank, and such Issuing Bank may be liable
to the Borrower, to the extent, but only to the extent, of any
direct, as opposed to indirect, consequential, special, punitive or
exemplary, damages suffered by the Borrower which the Borrower
proves were caused by such Issuing Bank’s willful misconduct
or gross negligence, as determined by a final, non-appealable
judgment of a court of competent jurisdiction. In furtherance and
not in limitation of the foregoing, the Issuing Banks may accept
documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice
or information to the contrary, and the Issuing Banks shall not be
responsible for the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign a
Letter of Credit or the rights or benefits thereunder or proceeds
thereof, in whole or in part, which may prove to be invalid or
ineffective for any reason. The Issuing Banks may send a Letter of
Credit or conduct any communication to or from the beneficiary via
the Society for Worldwide Interbank Financial Telecommunication
(“SWIFT”) message or overnight courier, or any other
commercially reasonable means of communicating with a
beneficiary.

 

 

 

 

 

(c) Reimbursement by the Borrower.
In the event an Issuing Bank shall have determined to honor a
drawing under any Letter of Credit, it shall promptly notify the
Borrower and the Administrative Agent in writing thereof, and the
Borrower shall reimburse such Issuing Bank for such drawing by
paying to such Issuing Bank an amount in Dollars in same day funds
equal to the amount of such drawing not later than (i) if the
Borrower shall have received notice of such drawing prior to 10:00
a.m. (New York City time) on any Business Day, then 2:00 p.m. (New
York City time) on such Business Day or (ii) otherwise, 2:00
p.m. (New York City time) on the Business Day next following the
day that the Borrower receives such notice (the date on which the
Borrower is required to reimburse a drawing under any Letter of
Credit being referred to herein as the “Reimbursement Date” in respect of
such drawing); provided that the Borrower may,
subject to the conditions to borrowing set forth herein, request in
accordance with Section 2.2(b) that such reimbursement payment
be financed with a Base Rate Revolving Borrowing and, to the extent
the applicable Issuing Bank shall have received the proceeds
thereof, the Borrower’s obligation to make such reimbursement
payment shall be discharged and replaced by the resulting Base Rate
Revolving Borrowing.

 

(d) Revolving Lenders’
Participations in Letters of Credit. Immediately upon the
issuance of any Letter of Credit, each Revolving Lender shall be
deemed to have purchased from the applicable Issuing Bank, and
agrees to fund as set forth herein, a participation in such Letter
of Credit and any drawings thereunder in an amount equal to such
Lender’s applicable Pro Rata Share of the maximum amount that
is or at any time may become available to be drawn under such
Letter of Credit. In the event the Borrower shall fail for any
reason to fully reimburse the applicable Issuing Bank for any
drawing under a Letter of Credit, such Issuing Bank shall promptly
notify the Administrative Agent in writing thereof and of the
unreimbursed amount of such drawing and, promptly upon receipt of
such notice, the Administrative Agent shall notify each Revolving
Lender of the details of such notice and of such Lender’s
applicable Pro Rata Share of such unreimbursed amount. Each
Revolving Lender shall make available an amount equal to such
Lender’s applicable Pro Rata Share of such unreimbursed
amount to the Administrative Agent not later than 12:00 p.m.
(New York City time) on the first Business Day following the date
of receipt of such notice, by wire transfer of same day funds in
Dollars to the account of the Administrative Agent most recently
designated by it for such purpose by notice to the Lenders, and the
Administrative Agent shall promptly remit the amounts so received,
in like funds, to the applicable Issuing Bank. In the event that
any Revolving Lender fails to make available, for the account of
any Issuing Bank, any payment referred to in the immediately
preceding sentence, such Issuing Bank shall be entitled to recover
such amount on demand from such Lender, together with interest
thereon for three Business Days at the rate customarily used by
such Issuing Bank for the correction of errors among banks and
thereafter at the Base Rate. Each Revolving Lender agrees that, in
issuing, amending or extending any Letter of Credit, the applicable
Issuing Bank shall be entitled to rely, and shall not incur any
liability for relying, upon the representation and warranty of the
Borrower deemed made pursuant to Section 3.2, unless, at least one
Business Day prior to the time such Letter of Credit is issued,
amended or extended (or, in the case of any Letter of Credit
subject to automatic extension provisions, at least three Business
Days prior to the time by which the election not to extend must be
made by the applicable Issuing Bank), the Borrower, a Majority in
Interest of the Revolving Lenders or the Requisite Lenders shall
have notified the applicable Issuing Bank (with a copy to the
Administrative Agent and, if the notice is not sent by the
Borrower, the Borrower) in writing that, as a result of one or more
events or circumstances described in such notice, one or more of
the conditions precedent set forth in Section 3.2 would not be
satisfied if such Letter of Credit were then issued, amended or
extended (it being understood and agreed that, in the event any
Issuing Bank shall have received any such notice, or shall
otherwise believe in good faith that such conditions would not be
satisfied, it shall have no obligation to (and, in the event it
shall have received any such notice, shall not) issue, amend or
extend any Letter of Credit until and unless it shall be satisfied
that the events and circumstances giving rise thereto shall have
been cured or otherwise shall have ceased to exist). In the event
an Issuing Bank shall have been reimbursed by the Revolving Lenders
pursuant to this Section 2.3(e) for all or any portion of any
drawing honored by such Issuing Bank under a Letter of Credit, such
Issuing Bank shall distribute to each Revolving Lender that has
paid all amounts payable by it under this Section 2.3(e) with
respect to such drawing such Lender’s applicable Pro Rata
Share of all payments subsequently received by such Issuing Bank by
or on behalf of the Borrower in reimbursement of such drawing when
such payments are received; provided that any such payment
so distributed shall be repaid to such Issuing Bank if and to the
extent such payment is required to be refunded to the Borrower for
any reason. Any payment made by a Revolving Lender pursuant to this
Section 2.3(e) to reimburse an Issuing Bank for a drawing under a
Letter of Credit (other than the funding of a Base Rate Revolving
Borrowing as contemplated by Section 2.3(d)) shall not
constitute a Loan and shall not relieve the Borrower of its
obligation to reimburse such drawing.

 

 

 

 

 

(e) Obligations Absolute. The
obligation of the Borrower to reimburse each Issuing Bank for
drawings honored under the Letters of Credit issued by such Issuing
Bank and the obligations of the Revolving Lenders under Section
2.3(e) shall be absolute, unconditional and irrevocable and shall
be paid and performed strictly in accordance with the terms hereof
under all circumstances, notwithstanding (i) any lack of
validity or enforceability of any Letter of Credit, (ii) the
existence of any claim, set-off, defense or other right that the
Borrower or any Lender may have at any time against any beneficiary
or any transferee of any Letter of Credit (or any Persons for whom
any such transferee may be acting), the applicable Issuing Bank or
any other Person or, in the case of any Lender, against the
Borrower, whether in connection herewith, with the transactions
contemplated herein or with any unrelated transaction (including
any underlying transaction between the Borrower or any Subsidiary
and the beneficiary under any Letter of Credit), (iii) any
draft or other document presented under any Letter of Credit
proving to be forged, fraudulent, invalid or insufficient in any
respect or any statement therein being untrue or inaccurate in any
respect or any loss or delay in the transmission or otherwise of
any document required in order to make a drawing under such Letter
of Credit, (iv) payment by the applicable Issuing Bank under any
Letter of Credit against presentation of a draft or other document
that does not comply with the terms of such Letter of Credit,
(v) any adverse change in the business, operations,
properties, condition (financial or otherwise) or prospects of the
Borrower or any Subsidiary, (vi) any breach hereof or of any
other Credit Document by any party thereto, (vii) any Default or
Event of Default having occurred and continuing, (viii) any force
majeure or other event that under any rule of law or uniform
practices to which any Letter of Credit is subject (including Rule
3.14 of the ISP or any successor publication) permits a drawing to
be made under such Letter of Credit after the expiration thereof or
after the Revolving Maturity Date, (ix) waiver by such Issuing Bank
of any requirement that exists for the protection of such Issuing
Bank and not the protection of the Borrower or any waiver by any
Issuing Bank which does not in fact materially prejudice the
Borrower, (x) honor of a demand for payment presented
electronically even if such Letter of Credit requires that demand
be in the form of a draft, (xi) any payment made by any Issuing
Bank in respect of an otherwise complying item presented after the
date specified as the expiration date of, or the date by which
documents must be received under such Letter of Credit if
presentation after such date is authorized by the UCC, the ISP or
the UCP, as applicable, and (xii) any other event, condition,
circumstance or happening whatsoever, whether or not similar to any
of the foregoing, including any other circumstance that might
otherwise constitute a defense available to, or a discharge of, the
Borrower or any Guarantor Subsidiary; provided that, subject to
Section 10.3(b) and the other provisions hereof, the Borrower and
each Revolving Lender shall retain any and all rights it may have
against an Issuing Bank for any liability arising solely out of the
gross negligence or willful misconduct of such Issuing Bank, as
determined by a final, non-appealable judgment of a court of
competent jurisdiction.

 

(f) Issuing Bank Reports to the
Administrative Agent. Unless otherwise agreed by the
Administrative Agent, each Issuing Bank shall, in addition to its
notification obligations set forth elsewhere in this Section 2.3,
report in writing to the Administrative Agent (i) periodic activity
(for such period or recurrent periods as shall be requested by the
Administrative Agent) in respect of Letters of Credit issued by
such Issuing Bank, including all issuances, extensions, amendments
and renewals, all expirations and cancelations and all honored
drawings and reimbursements thereof, (ii) reasonably prior to
the time that such Issuing Bank issues, amends, renews or extends
any Letter of Credit, the date of such issuance, amendment or
extension, and the face amount of the Letters of Credit to be
issued, amended or extended by such Issuing Bank and outstanding
after giving effect to such issuance, amendment or extension (and
whether the amounts thereof shall have changed), (iii) on each day
on which such Issuing Bank honors any drawing under any Letter of
Credit, the date and amount of the drawing so honored, (iv) on
any Business Day on which the Borrower reimburses or fails to
reimburse any drawing under a Letter of Credit as required
hereunder, the date of such reimbursement or such failure and the
amount of such reimbursed or unreimbursed drawing and (v) on any
other Business Day, such other information as the Administrative
Agent shall reasonably request as to the Letters of Credit issued
by such Issuing Bank.

 

 

 

 

 

(g) Cash Collateralization. If any
Event of Default shall occur and be continuing, on the day that the
Borrower receives a request from an Issuing Bank or notice from the
Administrative Agent referred to in Section 8.1, the Borrower
shall deposit in a deposit account in the name of the
Administrative Agent, for the benefit of the Issuing Banks and the
Lenders, an amount in Dollars equal to 103% of the Letter of Credit
Usage as of such date; provided that the obligation to
deposit such Cash Collateral shall become effective immediately,
and such deposit shall become immediately due and payable, without
demand or other notice of any kind, upon the occurrence of any
Event of Default specified in Section 8.1(f) or 8.1(g). The
Borrower also shall deposit Cash Collateral in accordance with this
Section 2.3(h) as and to the extent required by Section 2.13(e) or
2.21. Each such deposit shall be held by the Administrative Agent
as collateral for the payment and performance of the obligations of
the Borrower under this Agreement. The Administrative Agent shall
have exclusive dominion and control, including the exclusive right
of withdrawal, over such deposit account. Other than any interest
earned on the investment of such deposits, which investments shall
be made at the option and discretion of the Administrative Agent
with the Borrower’s consent and at the Borrower’s risk
and expense, such deposits shall not bear interest. Interest or
profits, if any, on such investments shall accumulate in such
account. Funds in such account shall, notwithstanding anything to
the contrary in the Collateral Documents, be applied by the
Administrative Agent to reimburse the Issuing Banks for honored
drawings under Letters of Credit for which they have not been
reimbursed and, to the extent not so applied, shall be held for the
satisfaction of the reimbursement obligations of the Borrower for
the Letter of Credit Usage at such time or, if the maturity of the
Loans has been accelerated (but subject to (i) the consent of
a Majority in Interest of the Revolving Lenders and (ii) in the
case of any such application at a time when any Revolving Lender is
a Defaulting Lender (but only if, after giving effect thereto, the
remaining Cash Collateral shall be less than the aggregate Fronting
Exposure), the consent of each Issuing Bank), be applied to satisfy
other obligations of the Borrower under this Agreement. If the
Borrower is required to provide Cash Collateral as a result of the
occurrence of an Event of Default, such Cash Collateral (to the
extent not applied as aforesaid) shall be returned to the Borrower
promptly after all Events of Default have been cured or waived and
the Administrative Agent shall have received a certificate from an
Authorized Officer of the Borrower to that effect. If the Borrower
is required to provide Cash Collateral pursuant to
Section 2.13(e), such Cash Collateral (to the extent not
applied as aforesaid) shall be returned to the Borrower to the
extent that, after giving effect to such return, the Total
Utilization of Revolving Commitments would not exceed the Total
Revolving Commitments and no Default or Event of Default shall have
occurred and be continuing. If the Borrower is required to provide
Cash Collateral pursuant to Section 2.21, such Cash Collateral (to
the extent not applied as aforesaid) shall be returned to the
Borrower to the extent that, after giving effect to such return, no
Issuing Bank shall have any Fronting Exposure and no Default or
Event of Default shall have occurred and be
continuing.

 

(h) Termination of any Issuing Bank;
Designation of Additional Issuing Banks.

 

 

 

 

 

(i) The Borrower may
terminate the appointment of any Issuing Bank as an “Issuing
Bank” hereunder by providing written notice thereof to such
Issuing Bank, with a copy to the Administrative Agent, and
terminating such Issuing Bank’s Letter of Credit Issuing
Commitment. Any such termination shall become effective upon the
earlier of (i) such Issuing Bank acknowledging receipt of such
notice and (ii) the 10th Business Day following the date of
the delivery thereof; provided that no such
termination shall become effective until and unless the Letter of
Credit Usage attributable to Letters of Credit issued by such
Issuing Bank (or its Affiliates) shall have been reduced to zero.
Any Issuing Bank may resign at any time by giving 30 days’
prior written notice to the Administrative Agent and the Borrower.
At the time any such termination or resignation shall become
effective, the Borrower shall pay all unpaid fees accrued for the
account of the terminated or resigning Issuing Bank pursuant to
Section 2.10(b). Notwithstanding the effectiveness of any such
termination or resignation, the terminated or resigning Issuing
Bank shall continue to have all the rights of an Issuing Bank under
this Agreement and the other Credit Documents with respect to
Letters of Credit issued by it prior to such termination or
resignation, but shall not issue any additional Letters of
Credit.

 

(ii) The Borrower may,
at any time and from time to time, with the consent of the
Administrative Agent (which consent shall not be unreasonably
withheld, conditioned or delayed), designate as additional Issuing
Banks one or more Revolving Lenders (or an Affiliate thereof) that
agree to serve in such capacity as provided below. The acceptance
by a Revolving Lender (or such Affiliate) of an appointment as an
Issuing Bank hereunder shall be evidenced by an agreement, which
shall be in form and substance reasonably satisfactory to the
Administrative Agent, executed by the Borrower, the Administrative
Agent and such designated Revolving Lender (or such Affiliate) and,
from and after the effective date of such agreement, (i) such
Revolving Lender (or such Affiliate) shall have all the rights and
obligations of an Issuing Bank under this Agreement and
(ii) references herein to the term “Issuing Bank”
shall be deemed to include such Revolving Lender (or such
Affiliate) in its capacity as an issuer of Letters of Credit
hereunder.

 

(i) Letter of Credit Amounts.
Unless otherwise specified herein, the amount of any Letter of
Credit at any time shall be deemed to be the amount available to be
drawn under such Letter of Credit as in effect at such time;
provided that with
respect to any Letter of Credit that, by its terms or the terms of
any letter of credit application relating thereto (or of any other
document, agreement or instrument entered into by the applicable
Issuing Bank and the Borrower and relating to such Letter of
Credit), provides for one or more automatic increases prior to the
expiration thereof (without giving effect to any automatic
extension provisions therein or the reinstatement of an amount
previously drawn thereunder and reimbursed) in the face amount
thereof, the amount of such Letter of Credit shall be deemed to be
the maximum amount available to be drawn under such Letter of
Credit after giving effect to all such increases, whether or not
such maximum amount is in effect at such time.

 

(j) Concerning the Issuing Banks.
Notwithstanding any other provision of this Agreement:

 

(i) No Issuing Bank
shall be under any obligation to issue any Letter of Credit
if:

 

 

 

 

 

(A) any order, judgment
or decree of any Governmental Authority or arbitrator shall by its
terms purport to enjoin or restrain such Issuing Bank from issuing
such Letter of Credit, or any law applicable to such Issuing Bank
or any request or directive (whether or not having the force of
law) from any Governmental Authority with jurisdiction over such
Issuing Bank shall prohibit, or request that such Issuing Bank
refrain from, the issuance of letters of credit generally or such
Letter of Credit in particular or shall impose upon such Issuing
Bank with respect to such Letter of Credit any restriction, reserve
or capital requirement (for which such Issuing Bank is not
otherwise compensated hereunder) not in effect on the Closing Date,
or shall impose upon such Issuing Bank any unreimbursed loss, cost
or expense that was not applicable on the Closing Date and which
such Issuing Bank in good faith deems material to it;

 

(B) the issuance of
such Letter of Credit would violate one or more policies of such
Issuing Bank applicable to letters of credit generally;
or

 

(C) any Revolving
Lender is at that time a Defaulting Lender, except in accordance
with the terms of Section 2.21(c).

 

(ii) An Issuing Bank
shall be under no obligation to amend any Letter of Credit if
(A) such Issuing Bank would have no obligation at such time to
issue such Letter of Credit in its amended form under the terms
hereof or (B) the beneficiary of such Letter of Credit does
not accept the proposed amendment to such Letter of
Credit.

 

(iii) Each Issuing Bank
shall act on behalf of the Revolving Lenders with respect to any
Letters of Credit issued by it and the documents associated
therewith, and such Issuing Bank shall have all of the benefits and
immunities (A) provided to the Administrative Agent in
Section 9 with respect to any acts taken or omissions suffered
by such Issuing Bank in connection with Letters of Credit issued by
it or proposed to be issued by it and documents pertaining to such
Letters of Credit as fully as if the term “Administrative
Agent” or “Agent” as used in Section 9
included such Issuing Bank with respect to such acts or omissions,
provided that no
Lender shall have any obligation to any Issuing Bank (except, in
the case of any Issuing Bank that is also an Agent, in its capacity
as such Agent) under Section 9.6, and (B) as additionally provided
herein with respect to Issuing Banks.

 

(k) Applicability of ISP and UCP;
Limitation of Liability. Unless otherwise expressly agreed
by the applicable Issuing Bank and the Borrower when such Letter of
Credit is issued, the rules of the ISP or UCP, as applicable, shall
be stated therein to apply to each Letter of Credit.
Notwithstanding the foregoing, an Issuing Bank shall not be
responsible to the Borrower for, and an Issuing Bank’s rights
and remedies against the Borrower shall not be impaired by, any
action or inaction of such Issuing Bank required or permitted under
any law, order or practice that is required or permitted to be
applied to any Letter of Credit or this Agreement, including the
law or any order of a jurisdiction where such Issuing Bank or the
beneficiary is located, the practice stated in the ISP or UCP, as
applicable, or in the decisions, opinions, practice statements, or
official commentary of the ICC Banking Commission, the Bankers
Association for Finance and Trade (BAFT), or the Institute of
International Banking Law & Practice, whether or not any Letter
of Credit chooses such law or practice.

 

 

 

 

 

2.4. Pro
Rata Shares; Obligations Several; Availability of Funds. All Loans
on the occasion of any Borrowing shall be made, and all
participations in Letters of Credit purchased, by the Lenders in
proportion to their applicable Pro Rata Shares. The failure of any
Lender to make any Loan or fund any participation required
hereunder shall not relieve any other Lender of its obligations
hereunder; provided
that the Commitments and other obligations of the Lenders hereunder
are several, and no Lender shall be responsible for the failure of
any other Lender to make any Loan or fund any participation
required hereunder or to satisfy any of its other obligations
hereunder.

 

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

 

2.5. Use
of Proceeds. The Borrower will use the proceeds of the Tranche A
Term Loans and the Tranche B Term Loans made on the Closing Date,
together with the proceeds of the loans made under the Second Lien
Credit Agreement on the Closing Date, the proceeds of the New
Subordinated Note and the Closing Date Common Equity Issuance, (a)
to consummate the Closing Date Refinancing, (b) to pay fees
and expenses in connection with the Transactions, (c) in the case
of the proceeds of the Tranche B Term Loans constituting
Escrow Cash Collateral, solely to (i) consummate the Specified
Acquisition, provided that if the Specified
Acquisition is consummated and the proceeds of the Tranche B Term
Loans constituting Escrow Cash Collateral (prior to giving effect
to any release thereof) exceed an amount equal to (A) the
Acquisition Consideration paid in Cash to consummate the Specified
Acquisition plus
(B) the customary fees and expenses paid in Cash in connection with
the Specified Acquisition, by $10,000,000 or less, the Borrower
shall be permitted to use such excess proceeds in accordance with
Section 2.5(d) or (ii) make the mandatory prepayment of
Tranche B Term Loans pursuant Section 2.13(d), and (d) to
the extent any excess proceeds of the Tranche A Term Loans or the
Tranche B Term Loans remain after the application of proceeds under
clauses (a), (b) and (c) above, for working capital and other
general corporate purposes of the Borrower and the Restricted
Subsidiaries. The Borrower will use the proceeds of the Revolving
Loans solely for working capital requirements and other general
corporate purposes of the Borrower and the Restricted Subsidiaries,
including Acquisitions permitted by this Agreement. Letters of
Credit will be used by the Borrower solely for general corporate
purposes of the Borrower and the Restricted Subsidiaries. The
Borrower will use the proceeds of any Incremental Term Loan for the
purposes specified in the applicable Incremental Facility
Agreement, and the proceeds of any Refinancing Term Loan solely for
the repayment or prepayment of Term Borrowings as set forth in
Section 2.25(c) and the payment of any related fees, premiums
and expenses.

 

 

 

 

 

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

 

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

 

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

 

2.7. Interest
on Loans and Letter of Credit Disbursements. Subject to
Section 2.9, each Loan of any Class shall bear interest on the
outstanding principal amount thereof from the date made through
repayment (whether by acceleration or otherwise) thereof as
follows:

 

(i) if a Base Rate
Loan, at the Base Rate plus the Applicable Rate with respect to
Loans of such Class; or

 

(ii) if a Eurodollar
Rate Loan, at the Adjusted Eurodollar Rate plus the Applicable Rate
with respect to Loans of such Class.

 

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

 

 

 

 

 

(c) The basis for
determining the rate of interest with respect to any Loan, and the
Interest Period with respect to any Eurodollar Rate Borrowing,
shall be selected by the Borrower pursuant to the applicable
Funding Notice or Conversion/Continuation Notice delivered in
accordance herewith; provided that there shall be no
more than 10 (or such greater number as may be agreed to by the
Administrative Agent) Eurodollar Rate Borrowings outstanding at any
time. In the event the Borrower fails to specify in any Funding
Notice the Type of the requested Borrowing, then the requested
Borrowing shall be made as a Base Rate Borrowing. In the event the
Borrower fails to deliver in accordance with Section 2.8 a
Conversion/Continuation Notice with respect to any Eurodollar Rate
Borrowing prior to the end of the Interest Period applicable
thereto, then, unless such Borrowing is repaid as provided herein,
at the end of such Interest Period such Borrowing shall be
converted to a Base Rate Borrowing. In the event the Borrower
requests the making of, or the conversion to or continuation of,
any Eurodollar Rate Borrowing but fails to specify in the
applicable Funding Notice or Conversion/Continuation Notice the
Interest Period to be applicable thereto, the Borrower shall be
deemed to have specified an Interest Period of one month. No
Borrowing of any Class may be converted into a Borrowing of another
Class.

 

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

 

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

 

 

 

 

 

(f) The Borrower agrees
to pay to each Issuing Bank, with respect to drawings honored under
any Letter of Credit issued by such Issuing Bank, interest on the
amount paid by such Issuing Bank in respect of each such drawing
from the date such drawing is honored to but excluding the date
such amount is reimbursed by or on behalf of the Borrower at a rate
equal to (i) for the period from the date such drawing is
honored to but excluding the applicable Reimbursement Date, the
rate of interest otherwise payable hereunder with respect to Base
Rate Revolving Loans and (ii) thereafter, the rate determined
in accordance with Section 2.9. Interest payable pursuant to this
Section 2.7(e) shall be computed on the basis of a year of 365 days
(or 366 days in a leap year) for the actual number of days elapsed
in the period during which it accrues, and shall be payable on
demand or, if no demand is made, on the date on which the related
drawing under a Letter of Credit is reimbursed in full. In the
event the applicable Issuing Bank shall have been reimbursed by the
Revolving Lenders for all or any portion of such drawing, such
Issuing Bank shall distribute to each Revolving Lender that has
paid all amounts payable by it under Section 2.3(e) with respect to
such drawing such Revolving Lender’s applicable Pro Rata
Share of any interest received by such Issuing Bank in respect of
the portion of such drawing so reimbursed by the Revolving Lenders
for the period from the date on which such Issuing Bank was so
reimbursed by the Revolving Lenders to but excluding the date on
which such portion of such drawing is reimbursed by the
Borrower.

 

(g)                Accrued
and unpaid interest on any Loans accruing as Incremental Interest
shall be paid “in kind” on each applicable Interest
Payment Date by capitalizing such interest accruing as Incremental
Interest and adding it to the outstanding principal amount of such
Loans (it being understood that any such added amounts shall be
treated as principal of such Loans for all purposes of this
Agreement and the other Credit Documents and bear interest in
accordance with this Agreement) for all purposes other than for the
determination of Requisite Lenders, Requisite Tranche A/Revolving
Lenders, Section 10.5 or any other voting provision of this
Agreement.

 

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

 

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

 

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

 

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

 

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

 

 

 

 

 

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

 

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

 

2.9. Default
Interest. Notwithstanding anything to the contrary herein, upon the
occurrence and during the continuance of any Event of Default under
Section 8.1(a), 8.1(f) or 8.1(g), any principal of or interest on
any Loan or any fee or other amount payable by the Borrower
hereunder shall bear interest (in the case of an Event of Default
under Section 8.1(a), only on overdue amounts), payable on demand,
after as well as before judgment, at a rate per annum equal to (a)
in the case of the principal of any Loan, 2.00% per annum in excess
of the interest rate otherwise applicable hereunder to such Loan or
(b) in the case of any other amount, a rate (computed on the basis
of a year of 360 days for the actual number of days elapsed) that
is 2.00% per annum in excess of the highest interest rate otherwise
payable hereunder for Base Rate Loans. Payment or acceptance of the
increased rates of interest provided for in this Section 2.9 is not
a permitted alternative to timely payment and shall not constitute
a waiver of any Event of Default or otherwise prejudice or limit
any rights or remedies of the Administrative Agent, any Issuing
Bank or any Lender. 
Notwithstanding anything to the contrary herein, on and after April
15, 2019 and for so long as an Event of Default shall be
continuing, all Obligations shall accrue default interest in the
manner set in this Section.

 

2.10. Fees.
The Borrower agrees to pay to the Administrative Agent, for the
account of each Revolving Lender, for each day:

 

(i) a commitment fee
equal to such Lender’s applicable Pro Rata Share of (A) the
excess, determined as of the close of business on such day, of (1)
the Total Revolving Commitments over (2) the aggregate principal
amount of all outstanding Revolving Loans and the Letter of Credit
Usage, multiplied
by (B) the Commitment Fee Rate on such day; and

 

 

 

 

 

(ii) a letter of credit
fee equal to such Lender’s applicable Pro Rata Share of (A)
the Letter of Credit Usage (excluding any portion thereof
attributable to unreimbursed drawings under the Letters of Credit),
determined as of the close of business on such day, multiplied by (B) the
Applicable Rate for Eurodollar Rate Revolving Loans on such
day.

 

(j) The Borrower agrees
to pay directly to each Issuing Bank, for its own account, the
following fees:

 

(i) for each day, a
fronting fee equal to 0.125% multiplied by the Letter of
Credit Usage attributable to Letters of Credit issued by such
Issuing Bank (excluding any portion thereof attributable to
unreimbursed drawings under such Letters of Credit), determined as
of the close of business on any such day; and

 

(ii) such documentary
and processing charges for any issuance, amendment, transfer or
payment of a Letter of Credit as are in accordance with such
Issuing Bank’s standard schedule for such charges and as in
effect at the time of such issuance, amendment, transfer or
payment, as the case may be.

 

(k) All fees referred
to in Sections 2.10(a) and 2.10(b)(i) shall be calculated on the
basis of a year of 360 days and the actual number of days elapsed
and shall be payable quarterly in arrears on the last Business Day
of March, June, September and December of each year, (i) in the
case of the fees referred to in Section 2.10(a)(i), during the
Revolving Commitment Period and (ii) in the case of the fees
referred to in Section 2.10(a)(ii) or 2.10(b)(i), during the period
from and including the Closing Date to but excluding the later of
the Revolving Commitment Termination Date and the date on which the
Letter of Credit Usage shall have been reduced to zero;
provided that all
such fees shall be payable on the Revolving Commitment Termination
Date and any such fees accruing after such date shall be payable on
demand.

 

(l) The Borrower agrees
to pay on the Closing Date to Goldman Sachs, as an Arranger, for
the account of each Lender, closing fees in the amounts separately
agreed among the Borrower and the Arrangers.

 

(m) The Borrower agrees
to pay to the Administrative Agent, the Collateral Agent and the
Arrangers, as applicable, such other fees in the amounts and at the
times separately agreed upon (including pursuant to the
Administrative Agent Fee Letter) in respect of the credit
facilities provided herein.

 

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

 

2.11. Scheduled
Installments; Repayment on Maturity Date. Subject to
Section 2.11(d), the Borrower shall repay Tranche A Term
Borrowings on March 31, June 30, September 30 and
December 31 of each year, commencing with June 30, 2018 and
ending with the last such day to occur prior to the Tranche A Term
Loan Maturity Date, in an aggregate principal amount for each such
date ending (i) on or prior to March 31, 2020, equal to 1.25% and
(ii) on June 30, 2020 or thereafter, equal to 1.875%, in each case,
of the aggregate principal amount of the Tranche A Term Borrowings
made on the Closing Date. To the extent not previously paid, all
Tranche A Term Loans shall be due and payable on the Tranche A
Term Loan Maturity Date.

 

 

 

 

 

(a) Subject to
Section 2.11(d), the Borrower shall repay Tranche B Term
Borrowings on March 31, June 30, September 30 and
December 31 of each year, commencing with June 30, 2018 and
ending with the last such day to occur prior to the Tranche B Term
Loan Maturity Date, in an aggregate principal amount for each such
date ending (i) on or prior to March 31, 2020, equal to 1.25% and
(ii) on June 30, 2020 or thereafter, equal to 1.875%, in each case,
of the aggregate principal amount of the Tranche B Term Borrowings
made on the Closing Date. To the extent not previously paid, all
Tranche B Term Loans shall be due and payable on the Tranche B
Term Loan Maturity Date.

 

(b) Subject to Section
2.11(d), the Borrower shall repay Term Loans of any Class
established under Section 2.23, 2.24 or 2.25 in such amounts
and on such date or dates as shall be specified therefor in the
applicable Incremental Facility Agreement, Extension/Modification
Agreement or Refinancing Facility Agreement. To the extent not
previously paid, all Term Loans of any such Class shall be due and
payable on the Maturity Date applicable to the Term Loans of such
Class.

 

(c) The Installments
shall be reduced in connection with any voluntary or mandatory
prepayments of, or any repurchases by the Borrower of, the Tranche
A Term Loans, the Tranche B Term Loans or the Term Loans of
any other Class, as the case may be, in accordance with
Section 2.14.

 

(d) Prior to any
repayment of any Term Borrowings of any Class under this
Section 2.11, the Borrower shall select the Term Borrowing or
Term Borrowings of the applicable Class to be repaid and shall
notify the Administrative Agent of such selection at least one
Business Day in advance of such repayment. Each such notice may be
given by telephone or in writing (and, if given by telephone, shall
promptly be confirmed in writing). Each repayment of a Term
Borrowing shall be allocated among the Lenders holding Loans
comprising such Term Borrowing in accordance with their applicable
Pro Rata Shares.

 

(e) The Borrower shall
repay to the Administrative Agent, for the account of the Revolving
Lenders, the then unpaid principal amount of each Revolving Loan on
the Revolving Maturity Date.

 

2.12. Voluntary
Prepayments/Commitment Reductions; Call Protection.

 

Voluntary Prepayments. At any
time and from time to time, the Borrower may, without premium or
penalty (except as applicable under Section 2.12(c) or 2.12(d)) but
subject to compliance with the conditions set forth in this Section
2.12(a) and with Section 2.17(c), prepay any Borrowing in whole or
in part; provided
that each such partial voluntary prepayment of any Borrowing
shall be in an aggregate principal amount of $5,000,000 or an
integral multiple of $1,000,000 in excess of such
amount.

 

(i) To make a voluntary
prepayment pursuant to Section 2.12(a)(i), the Borrower shall
notify the Administrative Agent not later than 11:00 a.m. (New
York City time) (A) at least one Business Day prior to the date of
prepayment, in the case of prepayment of Base Rate Borrowings, or
(B) at least three Business Days prior to the date of prepayment,
in the case of prepayment of Eurodollar Rate Borrowings. Each such
notice shall specify the prepayment date (which shall be a Business
Day) and the principal amount of each Borrowing or portion thereof
to be prepaid, and may be given by telephone or in writing (and, if
given by telephone, shall promptly be confirmed in writing). Each
such notice shall be irrevocable, and the principal amount of each
Borrowing specified therein shall become due and payable on the
prepayment date specified therein; provided that a notice of
prepayment of any Borrowing pursuant to Section 2.12(a)(i) may
state that such notice is conditioned upon the occurrence of one or
more events specified therein, in which case such notice may be
rescinded by the Borrower (by notice to the Administrative Agent on
or prior to the specified date of prepayment) if such condition is
not satisfied. Promptly following receipt of any such notice, the
Administrative Agent shall advise the Lenders of the applicable
Class of the details thereof. Each voluntary prepayment of a
Borrowing shall be allocated among the Lenders holding Loans
comprising such Borrowing in accordance with their applicable Pro
Rata Shares.

 

 

 

 

 

(ii) Notwithstanding any
other provision of this Section 2.12 to the contrary, in connection
with a refinancing in full of the credit facilities established
hereunder, any Lender may, with the consent of the Borrower, elect,
by written agreement executed by the Borrower, such Lender and the
Administrative Agent, to accept Rollover Indebtedness in lieu of
all or any part of such Lender’s applicable Pro Rata Share of
any prepayment of any Borrowing made pursuant to Section
2.12(a)(i).

 

(f) Voluntary Commitment
Reductions. At any time and from time to time, the Borrower
may, without premium or penalty but subject to compliance with the
conditions set forth in this Section 2.12(b), terminate in whole or
permanently reduce in part the Revolving Commitments in an amount
up to the amount by which the Total Revolving Commitments exceed
the Total Utilization of Revolving Commitments at the time of such
proposed termination or reduction; provided that each such partial
reduction of the Revolving Commitments shall be in an aggregate
amount of $5,000,000 or an integral multiple of $1,000,000 in
excess of such amount.

 

(i) To make a voluntary
termination or reduction of the Revolving Commitments pursuant to
Section 2.12(b)(i), the Borrower shall notify the Administrative
Agent not later than 11:00 a.m. (New York City time) at least
three Business Days prior to the date of effectiveness of such
termination or reduction. Each such notice shall specify the
termination or reduction date (which shall be a Business Day) and
the amount of any partial reduction, and may be given by telephone
or in writing (and, if given by telephone, shall promptly be
confirmed in writing). Each such notice shall be irrevocable, and
the termination or reduction of the Revolving Commitments specified
therein shall become effective on the date specified therein;
provided that a
notice of termination or reduction of the Revolving Commitments
under Section 2.12(b)(i) may state that such notice is conditioned
upon the occurrence of one or more events specified therein, in
which case such notice may be rescinded by the Borrower (by written
notice to the Administrative Agent on or prior to the specified
effective date) if such condition is not satisfied. Promptly
following receipt of any such notice, the Administrative Agent
shall advise the Revolving Lenders of the details thereof. Each
voluntary reduction of the Revolving Commitments shall reduce the
Revolving Commitments of the Revolving Lenders in accordance with
their applicable Pro Rata Shares.

 

(g) Tranche A Term Loan Call
Protection. In the event that on or prior to the date that
is six months after the Closing Date (i) all or any portion of the
Tranche A Term Borrowings are subject to a Repricing Event or
(ii) a Lender is required to assign any of its Tranche A Term Loans
pursuant to Section 2.22 in connection with such Repricing Event,
then each Lender whose Tranche A Term Loans are subject to such
Repricing Event or which is required to assign any of its Tranche A
Term Loans pursuant to Section 2.22 in connection with such
Repricing Event shall be paid a fee equal to 1.00% of the aggregate
principal amount of such Lender’s Tranche A Term Loans
subject to such Repricing Event or such assignment; provided that such fee shall
not apply if such Repricing Event is in connection with (A) the
occurrence of a Change of Control or (B) the consummation of an
Acquisition not permitted by this Agreement.

 

 

 

 

 

(h) Tranche B Term Loan Call
Protection. In the event that (i) on or prior to the
date that is 12 months after the Closing Date, all or any portion
of the Tranche B Term Borrowings (A) are prepaid pursuant to
Section 2.12(a)(i) (for the avoidance of doubt, including on
account of the requirements set forth in Section 2.25) or 2.13(c)
or (B) are subject to any amendment or other modification of this
Agreement that, directly or indirectly, reduces the Weighted
Average Yield of any Tranche B Term Loans, then each Lender whose
Tranche B Term Loans are so prepaid or subject to such amendment or
modification, or which is required to assign any of its Tranche B
Term Loans pursuant to Section 2.22 in connection with such
amendment or modification, shall be paid a fee equal to the Yield
Maintenance Amount with respect to the principal amount of such
Lender’s Tranche B Term Loans so prepaid or subject to such
amendment or modification (or such assignment), and (ii) after the
date that is 12 months after the Closing Date and on or prior to
the date that is 24 months after the Closing Date (A) all or any
portion of the Tranche B Term Borrowings are subject to a
Repricing Event or (B) a Lender is required to assign any of its
Tranche B Term Loans pursuant to Section 2.22 in connection with
such Repricing Event, then each Lender whose Tranche B Term Loans
are subject to such Repricing Event or which is required to assign
any of its Tranche B Term Loans pursuant to Section 2.22 in
connection with such Repricing Event shall be paid a fee equal to
1.00% of the aggregate principal amount of such Lender’s
Tranche B Term Loans subject to such Repricing Event or such
assignment; provided that the fee set forth
in clause (ii) of this Section 2.12(d) shall not apply if such
Repricing Event is in connection with (A) the occurrence of a
Change of Control or (B) the consummation of an Acquisition not
permitted by this Agreement; provided further that no fee shall be
due and payable under this Section 2.12(d) if such prepayment or
amendment or modification (or such assignment) or such Repricing
Event occurs after the date that is 24 months after the Closing
Date.

 

2.13. Mandatory
Prepayments/Commitment Reductions. Asset Sales. Not later than the
fifth Business Day following the date of receipt by the Borrower or
any Restricted Subsidiary of any Net Proceeds in respect of any
Asset Sale, the Borrower shall prepay the Term Borrowings in an
aggregate amount equal to 100% of such Net Proceeds; provided that
the Borrower may, at least one Business Day prior to the date of
the required prepayment, deliver to the Administrative Agent a
certificate of an Authorized Officer of the Borrower to the effect
that the Borrower intends to cause such Net Proceeds (or a portion
thereof specified in such certificate) to be reinvested in
non-current assets useful in the business of the Borrower and its
Restricted Subsidiaries or in Permitted Acquisitions or other
Acquisitions, in each case, within 365 days after the receipt of
such Net Proceeds, and certifying that, as of the date thereof, no
Event of Default has occurred and is continuing, in which case
during such period the Borrower shall not be required to make such
prepayment to the extent of the amount set forth in such
certificate; provided further that any such Net Proceeds that are
not so reinvested by the end of such period (or within a period of
270 days thereafter if by the end of such initial 365-day period
the Borrower or any of its Restricted Subsidiaries shall have
entered into a binding agreement with a third party to so reinvest
such Net Proceeds) shall be applied to prepay the Term Borrowings
promptly upon the expiration of such period. Notwithstanding the
foregoing, the Borrower may use a portion of any Net Proceeds in
respect of any Asset Sale that would otherwise be required pursuant
to this Section 2.13(a) to be applied to prepay the Term Borrowings
to prepay, repurchase or redeem any Permitted Credit Agreement
Refinancing Indebtedness or any Permitted Incremental Equivalent
Indebtedness that, in each case, constitutes Permitted Pari Passu
Secured Indebtedness but only to the extent such Permitted Pari
Passu Secured Indebtedness pursuant to the terms thereof is
required to be (or is required to be offered to the holders thereof
to be) prepaid, repurchased or redeemed as a result of such Asset
Sale (with the amount of the prepayment of the Term Borrowings that
would otherwise have been required pursuant to this Section 2.13(a)
being reduced accordingly), provided that (i) such portion shall
not exceed the product of (A) the amount of such Net Proceeds
multiplied by (B) a fraction of which the numerator is the
outstanding aggregate principal amount of such Permitted Pari Passu
Secured Indebtedness and the denominator is the sum of the
aggregate principal amount of such Permitted Pari Passu Secured
Indebtedness and all Term Borrowings, in each case at the time of
occurrence of such Asset Sale, and (ii) in the event the holders of
such Permitted Pari Passu Secured Indebtedness shall have declined
such prepayment, repurchase or redemption, the declined amount
shall promptly (and in any event within 10 Business Days after the
date of rejection) be applied to prepay the Term
Borrowings.

 

 

 

 

 

(a) Insurance/Condemnation Events.
Not later than the fifth Business Day following the date of receipt
by the Borrower or any Restricted Subsidiary, or by the Collateral
Agent as loss payee, of any Net Proceeds in respect of any
Insurance/Condemnation Event, the Borrower shall prepay the Term
Borrowings in an aggregate amount equal to 100% of such Net
Proceeds; provided that the Borrower may, at least one Business Day
prior to the date of the required prepayment, deliver to the
Administrative Agent a certificate of an Authorized Officer of the
Borrower to the effect that the Borrower intends to cause such Net
Proceeds (or a portion thereof specified in such certificate) to be
reinvested in replacement assets (including through the repair,
restoration or replacement of the damaged, destroyed or condemned
assets) or other non-current assets useful in the business of the
Borrower and its Restricted Subsidiaries or in Permitted
Acquisitions or other Acquisitions, in each case, within 365 days
after the receipt of such Net Proceeds, and certifying that, as of
the date thereof, no Event of Default has occurred and is
continuing, in which case during such period the Borrower shall not
be required to make such prepayment to the extent of the amount set
forth in such certificate; provided further that any such Net
Proceeds that are not so reinvested by the end of such period (or
within a period of 270 days thereafter if by the end of such
initial 365-day period the Borrower or any of its Restricted
Subsidiaries shall have entered into a binding agreement with a
third party to so reinvest such Net Proceeds) shall be applied to
prepay the Term Borrowings promptly upon the expiration of such
period. Notwithstanding the foregoing, the Borrower may use a
portion of any Net Proceeds in respect of any
Insurance/Condemnation Event that would otherwise be required
pursuant to this Section 2.13(b) to be applied to prepay the Term
Borrowings to prepay, repurchase or redeem any Permitted Credit
Agreement Refinancing Indebtedness or any Permitted Incremental
Equivalent Indebtedness that, in each case, constitutes Permitted
Pari Passu Secured Indebtedness but only to the extent such
Permitted Pari Passu Secured Indebtedness pursuant to the terms
thereof is required to be (or is required to be offered to the
holders thereof to be) prepaid, repurchased or redeemed as a result
of such Insurance/Condemnation Event (with the amount of the
prepayment of the Term Borrowings that would otherwise have been
required pursuant to this Section 2.13(b) being reduced
accordingly), provided that (i) such portion shall not exceed the
product of (A) the amount of such Net Proceeds multiplied by (B) a
fraction of which the numerator is the outstanding aggregate
principal amount of such Permitted Pari Passu Secured Indebtedness
and the denominator is the sum of the aggregate principal amount of
such Permitted Pari Passu Secured Indebtedness and all Term
Borrowings, in each case at the time of occurrence of such
Insurance/Condemnation Event, and (ii) in the event the holders of
such Permitted Pari Passu Secured Indebtedness shall have declined
such prepayment, repurchase or redemption, the declined amount
shall promptly (and in any event within 10 Business Days after the
date of rejection) be applied to prepay the Term
Borrowings.

 

(b) Issuance of Debt. On the date
of receipt by the Borrower or any Restricted Subsidiary of any Net
Proceeds from the incurrence of any Indebtedness (other than any
Indebtedness permitted to be incurred pursuant to Section 6.1), the
Borrower shall prepay the Term Borrowings in an aggregate amount
equal to 100% of such Net Proceeds.

 

 

 

 

 

(c) Escrow Cash Collateral. In the
event that (i) on or prior to the date that is three months after
the Closing Date (the “Escrow
Cash Collateral Outside Date”), the Escrow Cash
Collateral has not been released to the Borrower from the Escrow
Cash Collateral Account in accordance with the terms of the Escrow
Cash Collateral Control Agreement and Section 9.8(d)(ii) for the
purpose of the consummation of the Specified Acquisition and the
other purposes permitted by Section 2.5(c)(i), (ii) the
Borrower determines, in its sole discretion, that the Specified
Acquisition will not be consummated on or prior to the Escrow Cash
Collateral Outside Date, (iii) the definitive acquisition agreement
for the Specified Acquisition, after the execution thereof,
terminates at any time on or prior to the Escrow Cash Collateral
Outside Date, (iv) an Event of Default pursuant to
Section 8.1(a), 8.1(f) or 8.1(g) shall have occurred on or
prior to the Escrow Cash Collateral Outside Date (the date of any
event referred to in clauses (i) through (iv) being referred to as
the “Escrow Cash Collateral
Termination Date”) or (v) the Specified Acquisition is
consummated and the proceeds of the Tranche B Term Loans
constituting Escrow Cash Collateral (prior to giving effect to any
release thereof) exceed an amount equal to (A) the Acquisition
Consideration paid in Cash to consummate the Specified Acquisition
plus (B) the
customary fees and expenses paid in Cash in connection with the
Specified Acquisition, by more than $10,000,000, the Borrower shall
(x) not later than one Business Day after the Escrow Cash
Collateral Termination Date, if applicable, deliver written notice
to the Administrative Agent of the occurrence of the Escrow Cash
Collateral Termination Date and (y) not later than the fifth
Business Day after the Escrow Cash Collateral Termination Date or,
in the case of clause (v) above, after the consummation of the
Specified Acquisition (and solely to the extent the Escrow Cash
Collateral or, in the case of clause (v) above, the applicable
portion thereof has been released to the Administrative Agent, on
behalf of the Borrower, from the Escrow Cash Collateral Account in
accordance with the terms of the Escrow Cash Collateral Control
Agreement and Section 9.8(d)(ii), it being understood that any such
release to the Administrative Agent shall be deemed to be a
prepayment by the Borrower in accordance with this Section 2.13(d))
prepay the Tranche B Term Borrowings in an aggregate amount equal
to the Escrow Cash Amount or, in the case of clause (v) above, in
an aggregate amount equal to the portion of the Escrow Cash Amount
in excess of the amount of (I) the Acquisition Consideration paid
in Cash to consummate the Specified Acquisition plus (II) the customary fees
and expenses paid in Cash in connection with the Specified
Acquisition.

 

(d) Consolidated Excess Cash Flow.
In the event that there shall be Consolidated Excess Cash Flow for
any Fiscal Year (commencing with the Fiscal Year ending December
31, 2019), the Borrower shall, not later than the earlier of (x)
95 days after the end of such Fiscal Year and (y) five
Business Days after the delivery of the financial statements with
respect to such Fiscal Year pursuant to Section 5.1(a), prepay
the Term Borrowings of each Class in an aggregate principal amount
equal to (i) the product of (A) the Applicable ECF Percentage for
such Fiscal Year multiplied by (B) the
Consolidated Excess Cash Flow for such Fiscal Year multiplied by (C) the
percentage of the aggregate principal amount of the Term Borrowings
of all Classes outstanding as of the end of such Fiscal Year
represented by the Term Borrowings of such Class (but, in each
case, disregarding for purposes of determining such percentage any
prepayments or repurchases referred to in clause (ii) below)
minus (ii) the sum
of the aggregate principal amount of the Term Borrowings of such
Class voluntarily prepaid by the Borrower pursuant to Section 2.12
or, to the extent of Cash spent, repurchased by the Borrower
pursuant to Section 10.6(i)(i), minus (iii) the product of (A)
the percentage of the aggregate principal amount of the Term
Borrowings of all Classes outstanding as of the end of such Fiscal
Year represented by the Term Borrowings of such Class (but, in each
case, disregarding for purposes of determining such percentage any
prepayments or repurchases referred to in clause (ii) above)
multiplied by (B)
the sum of (x) the aggregate principal amount of any optional
prepayments, repurchases or redemptions of any Permitted Credit
Agreement Refinancing Indebtedness or any Permitted Incremental
Equivalent Indebtedness that, in each case, constitutes Permitted
Pari Passu Secured Indebtedness plus (y) the aggregate
principal amount of any optional prepayments of any Revolving Loans
but solely to the extent the Revolving Commitments are permanently
reduced in connection therewith (and solely to the extent of the
amount of such permanent reduction and excluding any reduction in
connection with a refinancing thereof), in each case under clauses
(ii) and (iii) above, (I) to the extent such prepayments,
repurchases or redemptions have not been financed with the proceeds
of incurrences of Long-Term Indebtedness and (II) if such
prepayments, repurchases or redemptions occurred (1) during
such Fiscal Year (to the extent not applied to reduce any mandatory
prepayment required under this Section 2.13(e) in respect of any
prior Fiscal Year pursuant to clause (2) below) or (2) at the
option of the Borrower, after the end of such Fiscal Year and prior
to the time that the mandatory prepayment required under this
Section 2.13(e) in respect of such Fiscal Year is due as
provided above; provided that no prepayment
shall be required under this Section 2.13(e) unless the amount
thereof would equal or exceed $1,000,000.

 

 

 

 

 

(e) Reductions of Revolving
Exposure. In the event and on each occasion that the Total
Utilization of Revolving Commitments exceeds the Total Revolving
Commitments, the Borrower shall prepay Revolving Borrowings (or, if
no such Loans or Borrowings are outstanding, deposit Cash
Collateral in accordance with Section 2.3(h)) in an aggregate
amount equal to such excess.

 

(f) Notice and Certificate. At
least one Business Day prior to any mandatory prepayment or
reduction pursuant to this Section 2.13, the Borrower (i) shall
notify the Administrative Agent in writing of such prepayment or
reduction and (ii) shall deliver to the Administrative Agent a
certificate of an Authorized Officer of the Borrower setting forth
the calculation of the amount of the applicable prepayment or
reduction. Each such notice shall be irrevocable and shall specify
the prepayment date and the principal amount of each Borrowing or
portion thereof to be prepaid (with such specification to be in
accordance with Section 2.14(b)), or the effective date and the
amount of any such reduction, as applicable, and may be given by
telephone or in writing (and, if given by telephone, shall promptly
be confirmed in writing). Promptly following receipt of any such
notice, the Administrative Agent shall advise the Lenders of the
applicable Class of the details thereof. Each mandatory prepayment
of any Borrowing shall be allocated among the Lenders holding Loans
comprising such Borrowing in accordance with their applicable Pro
Rata Shares and shall be subject to compliance with
Section 2.17(c).

 

(g) Foreign Restrictions and Taxes.
Notwithstanding any other provisions of this Section 2.13 to
the contrary, if the Borrower determines in good faith that (i) any
Net Proceeds in respect of any Asset Sale by, or any
Insurance/Condemnation Event affecting the assets of, a Restricted
Subsidiary that is a CFC or a CFC Holding Company, or any portion
of Consolidated Excess Cash Flow attributable to a Restricted
Subsidiary that is a CFC or a CFC Holding Company, are prohibited,
restricted or delayed by applicable foreign law (including currency
controls) from being repatriated to the United States (and that, in
view of the available liquidity and working capital requirements of
the Borrower and the Restricted Subsidiaries that are not CFCs or
CFC Holding Companies (as determined by the Borrower in good faith,
with such determination being permitted to disregard availability
under the Revolving Commitments (it being understood that the
Borrower shall not be required to make a Borrowing of Revolving
Loans to make any such mandatory prepayment required under Section
2.13(a), 2.13(b) or 2.13(e))), such repatriation is reasonably
required in order to provide the Borrower with the funds with which
to make such prepayment as would otherwise be required hereunder),
then the amount thereof so affected will not be required to be
applied to prepay Term Borrowings as otherwise required under
Section 2.13(a), 2.13(b) or 2.13(e), as applicable,
provided that (A)
the Borrower shall, and shall cause such CFC or CFC Holding Company
to, use commercially reasonable efforts to take actions reasonably
required by the applicable foreign law to permit such repatriation
and (B) the Borrower shall prepay Term Borrowings in accordance
with such applicable Section in a principal amount equal to such
affected amount (or a portion thereof) at such time as (x) the
repatriation of such amount (or such portion thereof) becomes
permitted under applicable foreign law or (y) the Borrower
determines in good faith that, in view of the available liquidity
and working capital requirements of the Borrower and the Restricted
Subsidiaries that are not CFCs or CFC Holding Companies (taking
into account the foregoing considerations), funds are available in
the United States to make such prepayment (or such portion
thereof), provided
further that any
such prepayment shall no longer be required to be made with respect
to any such amounts that, after the use of such commercially
reasonable efforts, have not been repatriated prior to the date
that is one year after the date the original prepayment was
required to be made under Section 2.13(a), 2.13(b) or 2.13(e), as
applicable, or (ii) that repatriation of any Net Proceeds in
respect of any Asset Sale by, or any Insurance/Condemnation Event
affecting the assets of, a Restricted Subsidiary that is a CFC or a
CFC Holding Company, or any portion of Consolidated Excess Cash
Flow attributable to a Restricted Subsidiary that is a CFC or a CFC
Holding Company, would have a material adverse tax consequence
(taking into account any withholding tax, any Subpart F inclusion
and any foreign tax credit or benefit actually realized in
connection with such repatriation) to the Borrower and the
Restricted Subsidiaries (and that, in view of the available
liquidity and working capital requirements of the Borrower and the
Restricted Subsidiaries that are not CFCs or CFC Holding Companies
(as determined by the Borrower in good faith, with such
determination being permitted to disregard availability under the
Revolving Commitments (it being understood that the Borrower shall
not be required to make a Borrowing of Revolving Loans to make any
such mandatory prepayment required under Section 2.13(a), 2.13(b)
or 2.13(e))), such repatriation is reasonably required in order to
provide the Borrower with the funds with which to make such
prepayment as would otherwise be required hereunder), then the
amount thereof so affected will not be required to be applied to
prepay Term Borrowings as otherwise required under Section 2.13(a),
2.13(b) or 2.13(e), as applicable, provided that the Borrower
shall prepay Term Borrowings in accordance with such applicable
Section in a principal amount equal to such affected amount (or a
portion thereof) at such time as (A) the repatriation of such
amount (or such portion thereof) would no longer result in a
material adverse tax consequence or (B) the Borrower determines in
good faith that, in view of the available liquidity and working
capital requirements of the Borrower and the Restricted
Subsidiaries that are not CFCs or CFC Holding Companies (taking
into account the foregoing considerations), funds are available in
the United States to make such prepayment (or such portion
thereof), provided
further that any
such prepayment shall no longer be required to be made after the
date that is one year after the date the original prepayment was
required to be made under Section 2.13(a), 2.13(b) or 2.13(e), as
applicable.

 

 

 

 

 

(h) Notwithstanding
anything in this Section 2.13 to the contrary, in the event and on
each occasion that the Borrower or any other Credit Party would be
required by the terms of any Permitted Second Lien Indebtedness
Documents or any agreements or instruments governing or evidencing
any other Permitted Junior Lien Secured Indebtedness or any
Subordinated Notes to repay or prepay, or to make an offer to repay
or prepay, any Permitted Second Lien Indebtedness or any such other
Indebtedness as a result of the receipt of any Cash proceeds by the
Borrower or any Restricted Subsidiary in connection with any sale,
transfer or other Disposition of any asset or any other mandatory
prepayment event or requirement (in each case, excluding any such
repayment or prepayment, or any such offer to repay or prepay, not
in excess of any Declined Mandatory Prepayment Retained Amount
relating to such Disposition or such other mandatory prepayment
event or requirement), then, prior to the time at which the
Borrower or such other Credit Party would be required to make such
repayment or prepayment, or to make such offer, the Borrower shall
prepay Term Borrowings in an amount that would be needed to
eliminate such requirement.

 

(i)                  Notwithstanding
anything to the contrary in this Section 2.13, during the Default
Period, no mandatory prepayments that would otherwise be required
to be made under Section 2.13(a), (b), (c) or (e) shall be required
to be made, except with respect to the portion (if any) of any New
Proceeds or Excess Cash Flow, as applicable, exceeding the amount
required to effect the Discharge of Super Senior Secured
Obligations.

 

2.14. Application
of Prepayments; Waivable Mandatory Prepayments.

 

Application of Voluntary Prepayments
and Repurchases. Any voluntary prepayment of Term Borrowings
of any Class pursuant to Section 2.12(a) shall be applied to reduce
the subsequent Installments to be paid pursuant to
Section 2.11 with respect to Term Borrowings of such Class in
the manner specified by the Borrower in the notice of prepayment
relating thereto (or, if no such manner is specified in such
notice, in direct order of maturity); provided that any prepayment of
Term Borrowings of any Class as contemplated by Section 2.25(b)
shall be applied to reduce the subsequent Installments to be paid
pursuant to Section 2.11 with respect to Term Borrowings of
such Class in the manner specified in Section 2.25(c). Any
repurchase of Term Loans of any Class as contemplated by Section
10.6(i) shall be applied to reduce the subsequent Installments to
be paid pursuant to Section 2.11 with respect to Term
Borrowings of such Class in the manner specified in Section
10.6(i).

 

(a) Application of Mandatory
Prepayments. Any mandatory prepayment of Term Borrowings
pursuant to Section 2.13 shall (i) be allocated among the
Classes of Term Borrowings on a pro rata basis (in accordance with
the aggregate principal amount of outstanding Borrowings of each
such Class), provided that (A) any
prepayment of Term Borrowings pursuant to Section 2.13(d)
shall be allocated solely to the Tranche B Term Borrowings, (B) any
prepayment of Term Borrowings pursuant to Section 2.13(e) shall be
allocated to each Class of Term Borrowings as set forth therein and
(C) the amounts so allocable to Incremental Term Loans,
Extended/Modified Term Loans or Refinancing Term Loans of any Class
may be applied to other Term Borrowings as provided in the
applicable Incremental Facility Agreement, Extension/Modification
Agreement or Refinancing Facility Agreement, and (ii) be applied to
reduce the subsequent Installments to be made pursuant to
Section 2.11 with respect to Term Borrowings of any Class, (x)
except in the case of any prepayment of Tranche B Term Borrowings
pursuant to Section 2.13(d), in the case of Tranche A Term
Borrowings or Tranche B Term Borrowings, in the manner specified by
the Borrower in the notice of prepayment relating thereto (or, if
no such manner is specified in such notice, in direct order of
maturity), (y) in the case of any prepayment of Tranche B Term
Borrowings pursuant to Section 2.13(d), ratably to the
remaining Installments to be made pursuant to Section 2.11 with
respect to the Tranche B Term Borrowings and (z) in the case of
Borrowings of any other Class, as provided in the applicable
Incremental Facility Agreement, Extension/Modification Agreement or
Refinancing Facility Agreement.

 

 

 

 

 

(b) Waivable Mandatory Prepayments.
Notwithstanding anything herein to the contrary, any Term Lender
may elect, by notice to the Administrative Agent (which may be
given by telephone or in writing (and, if given by telephone, shall
promptly be confirmed in writing)) at least one Business Day (or
such shorter period as may be established by the Administrative
Agent) prior to the required prepayment date, to decline all or any
portion of any mandatory prepayment of its Term Loans pursuant to
Section 2.13 (other than Section 2.13(c), 2.13(d) or 2.13(i)), in
which case the aggregate amount of the prepayment that would have
been applied to prepay Term Loans but was so declined shall be,
first, applied by the
Borrower on the required prepayment date to prepay or offer to
redeem any Permitted Second Lien Indebtedness, any Permitted Credit
Agreement Refinancing Indebtedness or any Permitted Incremental
Equivalent Indebtedness to the extent required thereby and,
second, to the extent of
the remainder thereof that is not so applied to prepay or redeem
such Indebtedness, shall be retained by the Borrower.

 

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

 

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

 

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

 

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

 

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

 

 

 

 

 

(e) If an Event of
Default shall have occurred and the maturity of the Loans shall
have been accelerated pursuant to Section 8.1, all payments or
proceeds received by the Administrative Agent or the Collateral
Agent in respect of any of the Obligations, or from any sale of,
collection from or other realization upon all or any part of the
Collateral, shall, subject to Sections 2.3(h) and 2.21(d)(iii)
and the requirements of any applicable Permitted Intercreditor
Agreement, be applied in accordance with the application
arrangements set forth in Section 5.02 of the Pledge and
Security Agreement.

 

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

 

2.16. Ratable
Sharing. The Lenders hereby agree among themselves that if any
Lender shall, whether through the exercise of any right of set-off
or banker’s lien, by counterclaim or cross action or by the
enforcement of any right under the Credit Documents or otherwise,
or as adequate protection of a deposit treated as cash collateral
under the Bankruptcy Code, receive payment or reduction of a
portion of the aggregate amount of any principal, interest, fees
and amounts payable in respect of participations in Letters of
Credit owing to such Lender hereunder or under the other Credit
Documents (collectively, the “Aggregate Amounts Due” to
such Lender) resulting in such Lender receiving payment of a
greater proportion of the Aggregate Amounts Due to such Lender than
the proportion received by any other Lender in respect of the
Aggregate Amounts Due to such other Lender, then the Lender
receiving such proportionately greater payment shall
(a) notify the Administrative Agent and each other Lender in
writing of the receipt of such payment and (b) apply a portion
of such payment to purchase (for cash at face value) participations
in the Aggregate Amounts Due to the other Lenders so that all such
payments of Aggregate Amounts Due shall be shared by all the
Lenders ratably in accordance with the Aggregate Amounts Due to
them; provided
that, if all or part of such proportionately greater payment
received by any purchasing Lender is thereafter recovered from such
Lender upon the bankruptcy or reorganization of any Credit Party or
otherwise, such purchase shall be rescinded and the purchase price
paid for such participation shall be returned to such purchasing
Lender ratably to the extent of such recovery, but without
interest. Each Credit Party expressly consents to the foregoing
arrangements and agrees that any holder of a participation so
purchased may exercise any and all rights of banker’s lien,
consolidation, set-off or counterclaim with respect to any and all
monies owing by such Credit Party to such holder with respect
thereto as fully as if such holder were owed the amount of the
participation held by such holder. The provisions of this Section
2.16 shall not be construed to apply to (i) any payment made by the
Borrower pursuant to and in accordance with the express terms of
this Agreement, including the application of funds arising from the
existence of a Defaulting Lender or any payment made by the
Borrower pursuant to Section 2.10(d), 2.13(d) or 2.22 or any
Extension/Modification Agreement, Incremental Facility Agreement or
Refinancing Facility Agreement, (ii) any acceptance by any Lender
of any Rollover Indebtedness in accordance with Section
2.12(a)(iii), (iii) any payment obtained by any Lender as
consideration for the assignment of or sale of a participation in
Loans or other Obligations owing to it pursuant to and in
accordance with the express terms of this Agreement or (iv) any
payment obtained by any Revolving Lender or Issuing Bank pursuant
to and in accordance with the last paragraph of Section 5.02
of the Pledge and Security Agreement.

 

 

 

 

 

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

 

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

 

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

 

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

 

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

 

(ii) If at any time the
Administrative Agent determines (which determination shall be
conclusive absent manifest error) that (x) the circumstances
set forth in Section 2.17(a)(i)(A) have arisen (including because
the rate described in clause (a) of the definition of
“Adjusted Eurodollar Rate” is not available or
published on a current basis) and such circumstances are unlikely
to be temporary or (y) the circumstances set forth in
Section 2.17(a)(i)(A) have not arisen but the supervisor for
the administrator of the rate described in clause (a) of the
definition of “Adjusted Eurodollar Rate” or a
Governmental Authority having jurisdiction over the Administrative
Agent has made a public statement identifying a specific date after
which the rate described in clause (a) of the definition of
“Adjusted Eurodollar Rate” no longer be used for
determining interest rates for loans, then the Administrative Agent
and the Borrower shall endeavor to establish an alternate rate of
interest to the Adjusted Eurodollar Rate that gives due
consideration to the then prevailing market convention for
determining a rate of interest for syndicated loans denominated in
Dollars in the United States at such time, and the Administrative
Agent and the Borrower shall enter into an amendment to this
Agreement to reflect such alternate rate of interest and such other
related changes to this Agreement as may be applicable (but for the
avoidance of doubt, such related changes shall not include a
reduction of the Applicable Rate); provided that if such alternate
rate of interest shall be less than zero, such rate shall be deemed
to be zero for all purposes of this Agreement. Such amendment shall
become effective without any further action or consent of any other
party to this Agreement so long as the Administrative Agent shall
not have received, within five Business Days of the date a copy of
such amendment is provided to the Lenders, a written notice from
the Requisite Lenders stating that the Requisite Lenders object to
such amendment. Until an alternate rate of interest shall be
determined in accordance with this paragraph (but, in the case of
the circumstances described in clause (y) above, only to the extent
the rate described in clause (a) of the definition of
“Adjusted Eurodollar Rate” for such Interest Period is
not available or published at such time on a current basis),
(1) no Loans of any Class may be made as, or converted to,
Eurodollar Rate Loans and (2) any Funding Notice or
Conversion/Continuation Notice given by the Borrower requesting the
making of, or conversion to or continuation of, any Eurodollar Rate
Borrowing shall be deemed rescinded by the Borrower.

 

 

 

 

 

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

 

 

 

 

 

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

 

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

 

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

 

 

 

 

 

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

 

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

 

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

 

(iii) impose on any
Lender or any Issuing Bank or the London interbank market any other
condition, cost or expense (other than Taxes) affecting this
Agreement or any Loan made by such Lender or any Letter of Credit
or participation therein;

 

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

 

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

 

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

 

 

 

 

 

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

 

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

 

2.19. Taxes;
Withholding, Etc. Issuing
Bank. For purposes of this Section 2.19, the term
“Lender” includes any Issuing Bank.

 

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

 

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

 

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

 

 

 

 

 

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

 

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

 

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

 

(i) Without limiting
the generality of the foregoing:

 

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

 

 

 

 

 

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

 

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

 

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

 

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

 

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

 

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

 

 

 

 

 

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

 

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

 

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

 

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

 

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

 

 

 

 

 

2.21. Defaulting
Lenders. Defaulting Lender
Adjustments. Notwithstanding anything to the contrary
contained in this Agreement, if any Lender becomes a Defaulting
Lender, then, until such time as such Lender is no longer a
Defaulting Lender, to the extent permitted by applicable
law:

 

(i) Defaulting Lender Waterfall.
Any payment of principal, interest, fees or other amounts received
by the Administrative Agent for the account of such Defaulting
Lender (whether voluntary or mandatory, at maturity, pursuant to
Section 8 or otherwise) or received by the Administrative Agent
from a Defaulting Lender pursuant to Section 10.4 shall be applied
at such time or times as may be determined by the Administrative
Agent as follows: first, to
the payment of any amounts owing by such Defaulting Lender to the
Administrative Agent or the Collateral Agent under the Credit
Documents; second, to the
payment on a pro rata basis of any amounts owing by such Defaulting
Lender to any Issuing Bank hereunder; third, to Cash Collateralize each
Issuing Bank’s Fronting Exposure with respect to such
Defaulting Lender in accordance with Section 2.21(d); fourth, as the Borrower may request (so
long as no Default or Event of Default shall have occurred and be
continuing), to the funding of any Loan in respect of which such
Defaulting Lender has failed to fund its portion thereof as
required by this Agreement, as determined by the Administrative
Agent; fifth, if so
determined by the Administrative Agent and the Borrower, to be held
in a deposit account and released pro rata in order to (x) satisfy
such Defaulting Lender’s potential future funding obligations
with respect to Loans under this Agreement and (y) Cash
Collateralize each Issuing Bank’s future Fronting Exposure
with respect to such Defaulting Lender with respect to future
Letters of Credit issued under this Agreement, in accordance with
Section 2.21(d); sixth, to
the payment of any amounts owing to the Lenders, any Issuing Bank
as a result of any judgment of a court of competent jurisdiction
obtained by any Lender or Issuing Bank against such Defaulting
Lender as a result of such Defaulting Lender’s breach of its
obligations under this Agreement; seventh, so long as no Default or Event
of Default shall have occurred and be continuing, to the payment of
any amounts owing to the Borrower as a result of any judgment of a
court of competent jurisdiction obtained by the Borrower against
such Defaulting Lender as a result of such Defaulting
Lender’s breach of its obligations under this Agreement; and
eighth, to such Defaulting
Lender or as otherwise directed by a court of competent
jurisdiction; provided that if (x) such
payment is a payment of the principal amount of any Loans or
reimbursement obligations with respect to Letters of Credit in
respect of which such Defaulting Lender has not fully funded its
applicable Pro Rata Share, and (y) such Loans were made or the
related Letters of Credit were issued at a time when the conditions
set forth in Section 3.2 were satisfied or waived, such payment
shall be applied solely to pay the Loans of, and reimbursement or
participation obligations with respect to Letters of Credit owed
to, all Non-Defaulting Lenders on a pro rata basis prior to being
applied to the payment of any Loans of, or reimbursement or
participation obligations with respect to Letters of Credit owed
to, such Defaulting Lender until such time as all Loans and funded
and unfunded participations in Letters of Credit are held by the
Lenders pro rata in accordance with the applicable Commitments
without giving effect to Section 2.21(a)(iii). Any payments,
prepayments or other amounts paid or payable to a Defaulting Lender
that are applied (or held) to pay amounts owed by a Defaulting
Lender or to post Cash Collateral pursuant to this Section
2.21(a)(i) shall be deemed paid to and redirected by such
Defaulting Lender, and each Lender irrevocably consents
hereto.

 

(ii) Certain Fees. No Defaulting
Lender shall be entitled to receive any fee pursuant to Section
2.10(a) for any period during which that Lender is a Defaulting
Lender (and the Borrower shall not be required to pay any such fee
that otherwise would have been required to have been paid to that
Defaulting Lender); provided that such Defaulting
Lender shall be entitled to receive fees pursuant to Section
2.10(a)(ii) for any period during which that Lender is a Defaulting
Lender only to extent allocable to its Pro Rata Share of the stated
amount of Letters of Credit for which it has provided Cash
Collateral pursuant to Section 2.21(d).

 

 

 

 

 

(A) With respect to any
fees not required to be paid to any Defaulting Lender pursuant to
clause (A) above, the Borrower shall (x) pay to each Non-Defaulting
Lender that portion of any such fee otherwise payable to such
Defaulting Lender with respect to such Defaulting Lender’s
participation in Letters of Credit that has been reallocated to
such Non-Defaulting Lender pursuant to clause (iii) below, (y) pay
to each Issuing Bank the amount of any such fee otherwise payable
to such Defaulting Lender to the extent allocable to such Issuing
Bank’s Fronting Exposure to such Defaulting Lender, and (z)
not be required to pay the remaining amount of any such
fee.

 

(iii) Reallocation of Participations to
Reduce Fronting Exposure. All or any part of such Defaulting
Lender’s participation in Letters of Credit shall be
reallocated among the Non-Defaulting Lenders in accordance with
their respective applicable Pro Rata Shares (calculated without
regard to such Defaulting Lender’s Revolving Commitment) but
only to the extent that (x) the conditions set forth in Section 3.2
are satisfied at the time of such reallocation (and, unless the
Borrower shall have otherwise notified the Administrative Agent at
such time, the Borrower shall be deemed to have represented and
warranted that such conditions are satisfied at such time), and (y)
such reallocation does not cause the aggregate Revolving Exposure
of any Non-Defaulting Lender to exceed such Non-Defaulting
Lender’s Revolving Commitment. No reallocation hereunder
shall constitute a waiver or release of any claim of any party
hereunder against a Defaulting Lender arising from such Lender
having become a Defaulting Lender, including any claim of a
Non-Defaulting Lender as a result of such Non-Defaulting
Lender’s increased exposure following such
reallocation.

 

(iv) Cash Collateral. If the
reallocation described in Section 2.21(a)(iii) cannot, or can only
partially, be effected, the Borrower shall, without prejudice to
any right or remedy available to it hereunder or under law, Cash
Collateralize the Issuing Banks’ Fronting Exposures in
accordance with Section 2.21(d).

 

(v) Participation as Requisite
Lender. The Commitments and Loans of such Defaulting Lender
shall not be included in determining whether the Requisite Lenders
or any other requisite Lenders have taken or may take any action
hereunder or under any other Credit Document (including any consent
to any amendment, waiver or other modification pursuant to Section
10.5); provided
that any amendment, waiver or other modification that under clauses
(i), (ii), (iii), (iv), (v) or (vi) of Section 10.5(b) requires the
consent of all Lenders affected thereby shall require the consent
of such Defaulting Lender in accordance with the terms
thereof.

 

(i) Defaulting Lender Cure. If the
Borrower, the Administrative Agent and each Issuing Bank agree in
writing that a Revolving Lender is no longer a Defaulting Lender,
the Administrative Agent will so notify the parties hereto,
whereupon as of the effective date specified in such notice and
subject to any conditions set forth therein (which may include
arrangements with respect to any Cash Collateral), such Revolving
Lender will, to the extent applicable, purchase at par that portion
of outstanding Revolving Loans and unfunded participations in
Letters of Credit of the other Revolving Lenders or take such other
actions as the Administrative Agent may determine to be necessary
to cause the Revolving Loans and funded and unfunded participations
in Letters of Credit to be held by the Revolving Lenders in
accordance with their respective applicable Pro Rata Shares
(without giving effect to Section 2.21(a)(iii)), whereupon
such Revolving Lender will cease to be a Defaulting Lender;
provided that no
adjustments will be made retroactively with respect to fees accrued
or payments made by or on behalf of the Borrower while such
Revolving Lender was a Defaulting Lender; and provided further that except to the
extent otherwise expressly agreed by the affected parties, no
change hereunder from Defaulting Lender to Non-Defaulting Lender
will constitute a waiver or release of any claim of any party
hereunder arising from a Revolving Lender’s having been a
Defaulting Lender.

 

 

 

 

 

(j) New Letters of Credit. So long
as any Lender is a Defaulting Lender, no Issuing Bank shall be
required to issue, extend, renew or increase any Letter of Credit
unless it is satisfied that the participations in any existing
Letters of Credit as well as the new, extended, renewed or
increased Letter of Credit has been or will be fully allocated
among the Non-Defaulting Lenders in a manner consistent with
Section 2.21(a)(iii) and such Defaulting Lender shall not
participate therein except to the extent such Defaulting
Lender’s participation has been or will be fully Cash
Collateralized in accordance with Section 2.21(d).

 

(k) Cash Collateral for Letters of
Credit. (i) Any Cash Collateral provided by any Defaulting
Lender pursuant to Section 2.21(a)(i) shall be held by the
Administrative Agent as Cash Collateral securing such Defaulting
Lender’s obligation to fund participations in respect of
Letters of Credit, and each Defaulting Lender hereby grants to the
Administrative Agent, for the benefit of the Issuing Banks, and
agrees to maintain, a first priority security interest in all such
Cash Collateral as security for such obligations. The
Administrative Agent shall have exclusive dominion and control,
including the exclusive right of withdrawal, over any deposit
account containing any such Cash Collateral.

 

(i) At any time that
there shall exist a Defaulting Lender, within one Business Day
following the written request of the Administrative Agent or any
Issuing Bank (with a copy to the Administrative Agent) the Borrower
shall Cash Collateralize in accordance with Section 2.3(h) each
Issuing Bank’s Fronting Exposure with respect to such
Defaulting Lender (determined after giving effect to Section
2.21(a)(iii) and any Cash Collateral provided by such Defaulting
Lender) in an amount not less than the amount of Fronting Exposure
with respect to such Defaulting Lender.

 

(ii) Notwithstanding
anything to the contrary contained in this Agreement or any other
Credit Document, Cash Collateral provided under this Section 2.21
in respect of Letters of Credit shall be applied to the
satisfaction of the Defaulting Lender’s obligation to fund
participations in respect of Letters of Credit (including, as to
Cash Collateral provided by a Defaulting Lender, any interest
accrued on such obligation) for which the Cash Collateral was so
provided, prior to any other application of such property as may
otherwise be provided for herein.

 

2.22. Replacement
of Lenders. If (a) any Lender has become an Affected Lender,
(b) any Lender requests compensation under Section 2.18,
(c) the Borrower is required to pay any Indemnified Taxes or
additional amount to any Lender or any Governmental Authority for
the account of any Lender pursuant to Section 2.19, (d) any
Lender becomes and continues to be a Defaulting Lender or a
Disqualified Institution or (e) any Lender fails to consent to
a proposed waiver, amendment or other modification of any Credit
Document, or to any departure of any Credit Party therefrom, that
under Section 10.5 requires the consent of all the Lenders (or
all the affected Lenders or all the Lenders or all the affected
Lenders of the affected Class) and with respect to which the
Requisite Lenders (or, in circumstances where Section 10.5(d) does
not require the consent of the Requisite Lenders, a Majority in
Interest of the Lenders of the affected Class) shall have granted
their consent, then the Borrower may, at its sole expense and
effort, upon notice to such Lender and the Administrative Agent,
require such Lender to assign and delegate, without recourse (in
accordance with and subject to the restrictions contained in
Section 10.6, including the consent requirements set forth
therein), all its interests, rights and obligations under this
Agreement and the other Credit Documents (other than existing
rights to payment under Sections 2.17(c), 2.18 and 2.19) (or, in
the case of any such assignment and delegation resulting from a
failure to provide a consent, all such interests, rights and
obligations under this Agreement and the other Credit Documents as
a Lender of an applicable Class) to an Eligible Assignee that shall
assume such obligations (which may be another Lender, if a Lender
accepts such assignment and delegation); provided that (i) the
Borrower shall have caused to be paid to the Administrative Agent
the registration and processing fee referred to in
Section 10.6(d), (ii) such Lender shall have received
payment of an amount equal to the outstanding principal of its
Loans and, if applicable, participations in drawings under Letters
of Credit, accrued interest thereon, accrued fees and all other
amounts payable to it hereunder (including any amounts under
Section 2.17(c)) and any prepayment fee under
Section 2.12(c) or 2.12(d) (if applicable, in each case only
to the extent such amounts relate to its interest as a Lender of an
applicable Class) from the assignee (in the case of such principal
and accrued interest and fees) or the Borrower (in the case of all
other amounts), (iii) such assignment and delegation does not
conflict with applicable law, (iv) in the case of any such
assignment and delegation resulting from a claim for compensation
under Section 2.18 or payments required to be made pursuant to
Section 2.19, such assignment will result in a reduction in
such compensation or payments thereafter and (v) in the case of any
such assignment and delegation resulting from the failure to
provide a consent, the assignee shall have given such consent. A
Lender shall not be required to make any such assignment and
delegation if, prior thereto, as a result of a waiver or consent by
such Lender or otherwise, the circumstances entitling the Borrower
to require such assignment and delegation have ceased to apply.
Each party hereto agrees that an assignment and delegation required
pursuant to this Section 2.22 may be effected pursuant to an
Assignment Agreement executed by the Borrower, the Administrative
Agent and the assignee and that the Lender required to make such
assignment and delegation need not be a party thereto.

 

 

 

 

 

2.23. Incremental
Facilities. The Borrower may on one or more occasions, by written
notice to the Administrative Agent, request (i) during the
Revolving Commitment Period, the establishment of Incremental
Revolving Commitments and/or (ii) the establishment of
Incremental Term Loan Commitments, provided that the aggregate
amount of all the Incremental Commitments established hereunder on
any date shall not exceed the Incremental Amount as of such date.
Each such notice shall specify (A) the date on which the Borrower
proposes that the Incremental Revolving Commitments or the
Incremental Term Loan Commitments, as applicable, shall be
effective, which shall be a date not less than five Business Days
(or such shorter period as may be agreed to by the Administrative
Agent) after the date on which such notice is delivered to the
Administrative Agent and (B) the amount of the Incremental
Revolving Commitments or Incremental Term Loan Commitments, as
applicable, being requested (it being agreed that (x) any
Lender approached to provide any Incremental Commitment may elect
or decline, in its sole discretion, to provide such Incremental
Commitment and (y) any Person that the Borrower proposes to
become an Incremental Lender, if such Person is not then a Lender,
must be an Eligible Assignee and must be approved by the
Administrative Agent and, in the case of any proposed Incremental
Revolving Lender, each Issuing Bank) (such approvals not to be
unreasonably withheld, conditioned or delayed). 
Notwithstanding anything to the contrary herein, no Incremental
Commitment may be established during the Default
Period.

 

 

 

 

 

(a) The terms and
conditions of any Incremental Revolving Commitment and Revolving
Loans and other extensions of credit to be made thereunder shall be
identical to those of the Revolving Commitments and Revolving Loans
and other extensions of credit made thereunder, and shall be
treated as a single Class with such Revolving Commitments and
Revolving Loans; provided that, if the Borrower
determines to increase the interest rate or fees payable in respect
of Incremental Revolving Commitments or Revolving Loans and other
extensions of credit made thereunder, such increase shall be
permitted if the interest rate or fees payable in respect of the
other Revolving Commitments or Revolving Loans and other extensions
of credit made thereunder, as applicable, shall be increased to
equal such interest rate or fees payable in respect of such
Incremental Revolving Commitments or Revolving Loans and other
extensions of credit made thereunder, as the case may be. The terms
and conditions of any Incremental Term Loan Commitments and the
Incremental Term Loans to be made thereunder shall be as set forth
in the applicable Incremental Facility Agreement; provided that (i)
(A) no Incremental Term Loan Maturity Date in respect of any
Incremental Tranche A Term Loans shall be earlier than the latest
Maturity Date in respect of any other TLA Term Loans in effect on
the date of incurrence of such Incremental Tranche A Term Loans and
(B) no Incremental Term Loan Maturity Date in respect of any
Incremental Term Loans (other than Incremental Tranche A Term
Loans) shall be earlier than the latest Maturity Date in effect on
the date of incurrence of such Incremental Term Loans, (ii) (A) the
weighted average life to maturity of any Incremental Tranche A Term
Loans shall be no shorter than the longest remaining weighted
average life to maturity of any other Class of TLA Term Loans
outstanding on the date of incurrence of such Incremental Tranche A
Term Loans (and, for purposes of determining the weighted average
life to maturity of any such other Class of Term Loans, the effects
of any prepayments made prior to the date of the determination
shall be disregarded) and (B) the weighted average life to maturity
of any Incremental Term Loans (other than Incremental Tranche A
Term Loans) shall be no shorter than the longest remaining weighted
average life to maturity of any other Class of Term Loans
outstanding on the date of incurrence of such Incremental Term
Loans (and, for purposes of determining the weighted average life
to maturity of any such other Class of Term Loans, the effects of
any prepayments made prior to the date of the determination shall
be disregarded), it being understood that, subject to this clause
(ii), the amortization schedule applicable to (and the effect
thereon of any prepayments of) any Incremental Term Loans shall be
determined by the Borrower and the applicable Incremental Lenders,
(iii) the Weighted Average Yield, determined as of the date of
incurrence of such Incremental Term Loans, shall not be greater
than (A) in the case of any Incremental Tranche A Term Loans, the
Weighted Average Yield with respect to the Tranche A Term Loans and
(B) in the case of any Incremental Term Loans (other than
Incremental Tranche A Term Loans), the Weighted Average Yield with
respect to the Tranche B Term Loans, in each case determined as of
such date (giving effect to any amendments to the Weighted Average
Yield on the Tranche A Term Loans or Tranche B Term Loans, as
applicable, that became effective subsequent to the Closing Date
but prior to such date, but excluding the effect of any increase in
interest margins with respect thereto pursuant to this clause
(iii)), plus 0.50% per annum unless the Applicable Rate (together
with, as provided in the proviso below, the Adjusted Eurodollar
Rate and Base Rate floors) with respect to the Tranche A Term Loans
or Tranche B Term Loans, as applicable, is increased, or fees to
Lenders then holding the Tranche A Term Loans or Tranche B Term
Loans, as applicable, are paid, so as to cause (x) the Weighted
Average Yield with respect to the Tranche A Term Loans to equal the
Weighted Average Yield with respect to such Incremental Tranche A
Term Loans minus 0.50% or (y) the Weighted Average Yield with
respect to the Tranche B Term Loans to equal the Weighted Average
Yield with respect to such Incremental Term Loans (other than
Incremental Tranche A Term Loans) minus 0.50%, as applicable,
provided that any increase in the effective Weighted Average Yield
with respect to the Tranche A Term Loans or the Tranche B Term
Loans, as the case may be, due to the application of an Adjusted
Eurodollar Rate or Base Rate floor to any Incremental Term Loans
shall be effected solely through an increase in the Adjusted
Eurodollar Rate or Base Rate floor applicable to the Tranche A Term
Loans or the Tranche B Term Loans, as the case may be, and only to
the extent an increase in such floor with respect to the Tranche A
Term Loans or the Tranche B Term Loans, as the case may be, would
cause an increase in the interest rate then in effect with respect
thereto, (iv) Incremental Term Loans may participate in any
mandatory prepayments on a pro rata basis (or on a basis that is
less than pro rata) with the other Term Loans, but may not provide
for mandatory prepayment requirements that are more favorable than
those applicable to the other Term Loans, (v) any Incremental
Commitments and any Loans thereunder shall rank pari passu in right
of payment, and shall be secured by the Collateral on an equal and
ratable basis, with the other Commitments and Loans, and shall be
extensions of credit to the Borrower that are Guaranteed only by
the Credit Parties and (vi) except for the terms referred to above
and subject to Section 2.23(c), to the extent the terms of any
Incremental Term Loans (other than interest rates (whether fixed or
floating), interest margins, benchmark rate floors, fees, original
issue discounts and prepayment terms (including “no
call” terms and other restrictions thereon) and premiums) are
not consistent with (A) in the case of any Incremental Tranche A
Term Loans, those of the Tranche A Term Loans and (B) in the case
of any Incremental Term Loans (other than Incremental Tranche A
Term Loans), those of the Tranche B Term Loans, in each case, as in
effect on the date of incurrence of such Incremental Term Loans,
such differences shall be reasonably acceptable to the
Administrative Agent (except for terms benefitting the Incremental
Term Lenders (x) where this Agreement is amended to include such
beneficial terms for the benefit of all Lenders (or, in the case of
any Incremental Tranche A Term Loans, all Lenders holding TLA Term
Loans or Revolving Commitments) or (y) applicable only to periods
after the latest Maturity Date in effect as of the date of
incurrence of such Incremental Term Loans). In the event any
Incremental Term Loans have the same terms as any existing Class of
Term Loans then outstanding or any Extended/Modified Term Loans or
Refinancing Term Loans then substantially concurrently established
(in each case, disregarding any differences in original issue
discount or upfront fees if not affecting the fungibility thereof
for US federal income tax purposes), such Incremental Term Loans
may, at the election of the Borrower, be treated as a single Class
with such outstanding Term Loans or such Extended/Modified Term
Loans or Refinancing Term Loans, and the scheduled Installments set
forth in Section 2.11 with respect to any such Class of Term Loans
may be increased to reflect scheduled amortization of such
Incremental Term Loans.

 

 

 

 

 

(b) The Incremental
Commitments shall be effected pursuant to one or more Incremental
Facility Agreements executed and delivered by the Borrower, each
Incremental Lender providing such Incremental Commitments and the
Administrative Agent; provided that no Incremental
Commitments shall become effective unless (i) on the date of
effectiveness thereof, both immediately prior to and immediately
after giving Pro Forma Effect to such Incremental Commitments (and
assuming that the full amount of such Incremental Commitments shall
have been funded as Loans on such date), and the use of proceeds
thereof, no Default or Event of Default shall have occurred and be
continuing or would result therefrom and the representations and
warranties of each Credit Party set forth in the Credit Documents
shall be true and correct (A) in the case of the representations
and warranties qualified as to materiality, in all respects, and
(B) otherwise, in all material respects, in each case on and as of
such date, except in the case of any such representation and
warranty that specifically relates to an earlier date, in which
case such representation and warranty shall be so true and correct
on and as of such earlier date; provided that, in the case of
Incremental Term Loan Commitments established to finance, in whole
or in part, a Limited Conditionality Transaction, the conditions
set forth in this clause (i) may be tested in accordance with
Section 1.5 to the extent agreed by the Borrower and the
Incremental Lenders providing such Incremental Term Loan
Commitments, all as set forth in the applicable Incremental
Facility Agreement, (ii) the Administrative Agent shall have
received a certificate, dated the date of effectiveness thereof and
signed by an Authorized Officer of the Borrower, confirming
compliance with the conditions set forth in clause (i) above
and, if such Incremental Term Loan Commitments or any portion
thereof are being established in reliance on clause (b) of the
definition of the term “Incremental Amount”, setting
forth a reasonably detailed calculation of the Incremental Amount
under such clause, (iii) the Borrower shall make any payments
required to be made pursuant to Section 2.17(c) in connection
with such Incremental Commitments and the related transactions
under this Section 2.23 and (iv) the Borrower shall have delivered
to the Administrative Agent such legal opinions, board resolutions,
secretary’s certificates, officer’s certificates,
reaffirmation agreements and other documents as shall reasonably be
requested (consistent in all material respects with the documents
delivered under Section 3.1 on the Closing Date) by the
Administrative Agent in connection with any such transaction. Each
Incremental Facility Agreement may, without the consent of any
Lender, effect such amendments to this Agreement and the other
Credit Documents as may be necessary or appropriate, in the opinion
of the Administrative Agent, to give effect to the provisions of
this Section 2.23, including any amendments necessary to treat
the applicable Incremental Term Loan Commitments and Incremental
Term Loans as a new Class of Commitments and Loans hereunder
(including for purposes of prepayments and voting (it being agreed
that such new Class of Commitments and Loans may be included in the
definitions of “Majority in Interest”, “Pro Rata
Share”, “Requisite Lenders” and, as applicable,
“Requisite Tranche A/Revolving Lenders” and may be
afforded class voting rights requiring the consent of Lenders under
such Class in addition to any other consent of Lenders that might
otherwise be required under Section 10.5) and to enable such new
Class of Commitments and Loans to be extended under Section 2.24 or
refinanced under Section 2.25).

 

 

 

 

 

(c) Upon the
effectiveness of an Incremental Commitment of any Incremental
Lender, (i) in the case of an Incremental Term Loan
Commitment, such Incremental Lender shall be deemed to be a
“Lender” (and a Lender in respect of Commitments and
Loans of the applicable Class) hereunder, and henceforth shall be
entitled to all the rights of, and benefits accruing to, Lenders
(or Lenders in respect of Commitments and Loans of the applicable
Class) hereunder and shall be bound by all agreements,
acknowledgements and other obligations of Lenders (or Lenders in
respect of Commitments and Loans of the applicable Class) hereunder
and under the other Credit Documents, and (ii) in the case of any
Incremental Revolving Commitment, (A) such Incremental Revolving
Commitment shall constitute (or, in the event such Incremental
Lender already has a Revolving Commitment, shall increase) the
Revolving Commitment of such Incremental Lender and (B) the
Total Revolving Commitments shall be increased by the amount of
such Incremental Revolving Commitment, in each case, subject to
further increase or reduction from time to time as set forth in the
definition of the term “Revolving Commitment”. For the
avoidance of doubt, upon the effectiveness of any Incremental
Revolving Commitment, the Revolving Exposure of the Incremental
Revolving Lender holding such Commitment, and the Pro Rata Shares
of all the Revolving Lenders, shall automatically be adjusted to
give effect thereto.

 

(d) On the date of
effectiveness of any Incremental Revolving
Commitments:

 

(i) the aggregate
principal amount of the Revolving Loans (the “Existing Revolving Borrowings”)
outstanding immediately prior to the effectiveness of such
Incremental Revolving Commitments shall be deemed to be
repaid,

 

(ii) each Incremental
Revolving Lender shall pay to the Administrative Agent in same day
funds an amount equal to the difference, if positive,
between:

 

(A) the product of (1)
such Lender’s Pro Rata Share of the applicable Class
(calculated after giving effect to such effectiveness) multiplied
by (2) the aggregate amount of the Resulting Revolving Borrowings
(as hereinafter defined) and

 

(B) the product of
(x) such Lender’s Pro Rata Share of the applicable Class
(calculated without giving effect to such effectiveness) multiplied
by (y) the aggregate principal amount of the Existing
Revolving Borrowings,

 

(iii) after the
Administrative Agent receives the funds specified in
clause (ii) above, the Administrative Agent shall pay to each
Revolving Lender the portion of such funds that is equal to the
difference, if positive, between:

 

(A) the product of
(1) such Lender’s Pro Rata Share of the applicable Class
(calculated without giving effect to such effectiveness) multiplied
by (2) the aggregate amount of the Existing Revolving
Borrowings, and

 

(B) the product of
(1) such Lender’s Pro Rata Share of the applicable Class
(calculated after giving effect to such effectiveness) multiplied
by (2) the aggregate amount of the Resulting Revolving
Borrowings,

 

 

 

 

 

(iv) after the
effectiveness of such Incremental Revolving Commitments, the
Borrower shall be deemed to have made new Revolving Borrowings (the
“Resulting Revolving
Borrowings”) in an aggregate amount equal to the
aggregate amount of the Existing Revolving Borrowings and of the
Types and for the Interest Periods specified in a Funding Notice
delivered to the Administrative Agent in accordance with
Section 2.2 (and the Borrower shall deliver such Funding
Notice),

 

(v) each Revolving
Lender shall be deemed to hold its applicable Pro Rata Share of
each Resulting Revolving Borrowing (calculated after giving effect
to such effectiveness), and

 

(vi) the Borrower shall
pay each Revolving Lender any and all accrued but unpaid interest
on its Loans comprising the Existing Revolving
Borrowings.

 

The deemed payments
of the Existing Revolving Borrowings made pursuant to clause (i)
above shall be subject to compensation by the Borrower pursuant to
the provisions of Section 2.17(c) if the date of the
effectiveness of such Incremental Revolving Commitments occurs
other than on the last day of the Interest Period relating
thereto.

 

(e) Subject to the
terms and conditions set forth herein and in the applicable
Incremental Facility Agreement, each Incremental Term Lender
holding an Incremental Term Loan Commitment of any Class shall make
a loan to the Borrower in an amount equal to such Incremental Term
Loan Commitment on the date specified in such Incremental Facility
Agreement.

 

(f) The Administrative
Agent shall notify the Lenders promptly upon receipt by the
Administrative Agent of any notice from the Borrower referred to in
Section 2.23(a) and of the effectiveness of any Incremental
Commitments, in each case advising the Lenders of the details
thereof and, in the case of effectiveness of any Incremental
Revolving Commitments, of the Pro Rata Shares of the Revolving
Lenders after giving effect thereto and of the assignments required
to be made pursuant to Section 2.23(e).

 

2.24. Extension/Modification
Offers. The Borrower may on one or more occasions, by written
notice to the Administrative Agent, make one or more offers (each,
an “Extension/Modification Offer”) to all the Lenders
of any Class (each Class subject to such an Extension/Modification
Offer being referred to as an “Extension/Modification Request
Class”), on the same terms and conditions, and on a pro rata
basis, to each Lender within any Extension/Modification Request
Class, to make one or more Extension/Modification Permitted
Amendments pursuant to procedures reasonably specified by the
Administrative Agent and reasonably acceptable to the Borrower.
Such notice shall set forth (i) the terms and conditions of the
requested Extension/Modification Permitted Amendment and (ii) the
date on which such Extension/Modification Permitted Amendment is
requested to become effective (which shall not be less than five
Business Days or more than 60 Business Days after the date of such
notice, unless otherwise agreed to by the Administrative Agent).
Extension/Modification Permitted Amendments shall become effective
only with respect to the Loans and Commitments of the Lenders of
the Extension/Modification Request Class that accept the applicable
Extension/Modification Offer (such Lenders, the
“Extending/Modifying Lenders”) and, in the case of any
Extending/Modifying Lender, only with respect to such
Lender’s Loans and Commitments of such Extension/Modification
Request Class as to which such Lender’s acceptance has been
made. Any Extended/Modified Loans or Extended/Modified Commitments
shall constitute a separate Class of Loans or Commitments from the
Extension/Modification Request Class from which they were converted
and, in the event any Extended/Modified Term Loans have the same
terms as any existing Class of Term Loans then outstanding or any
Incremental Term Loans or Refinancing Term Loans then substantially
concurrently established (in each case, disregarding any
differences in original issue discount or upfront fees if not
affecting the fungibility thereof for US federal income tax
purposes), such Extended/Modified Term Loans may, at the election
of the Borrower, be treated as a single Class with such outstanding
Term Loans or such Incremental Term Loans or Refinancing Term
Loans, and the scheduled Installments set forth in Section 2.11
with respect to any such Class of Term Loans may be increased to
reflect scheduled amortization of such Extended/Modified Term
Loans. The Extension/Modification Offer shall not be required to be
in any minimum amount or any minimum increment, provided that the Borrower may,
at its option and subject to its right to waive any such condition
in its sole discretion, specify as a condition to the effectiveness
of any Extension/Modification Permitted Amendment that a minimum
amount, as specified in the Extension/Modification Offer, of Loans
and Commitments of the Extension/Modification Request Class consent
thereto. The Borrower may amend, revoke or replace any
Extension/Modification Offer at any time prior to the effectiveness
of the applicable Extension/Modification Agreement. In connection
with any Extension/Modification Offer, the Borrower shall agree to
such procedures, if any, as may be reasonably established by, or
acceptable to, the Administrative Agent to accomplish the purposes
of this Section 2.24. 
Notwithstanding anything to the contrary herein, no
Extension/Modification Offer may be made during the Default
Period.

 

 

 

 

 

(a) An
Extension/Modification Permitted Amendment shall be effected
pursuant to an Extension/Modification Agreement executed and
delivered by the Borrower, each applicable Extending/Modifying
Lender and the Administrative Agent; provided that no
Extension/Modification Permitted Amendment shall become effective
unless the Borrower shall have delivered to the Administrative
Agent such legal opinions, board resolutions, secretary’s
certificates, officer’s certificates, reaffirmation
agreements and other documents as shall reasonably be requested
(consistent in all material respects with the documents delivered
under Section 3.1 on the Closing Date) by the Administrative Agent
in connection therewith. The Administrative Agent shall promptly
notify each Lender as to the effectiveness of each
Extension/Modification Agreement. Each Extension/Modification
Agreement may, without the consent of any Lender other than the
applicable Extending/Modifying Lenders, effect such amendments to
this Agreement and the other Credit Documents as may be necessary
or appropriate, in the opinion of the Administrative Agent, to give
effect to the provisions of this Section 2.24, including (i) a
reduction to the scheduled Installments set forth in Section 2.11
with respect to Loans of the Extension/Modification Request Class
to reflect the treatment of the Extended/Modified Loans as a new
Class of Loans (it being understood that the amount of any
scheduled amortization payable to any non-Extending/Modifying
Lender with respect to its Loans of the Extension/Modification
Request Class shall not be reduced as a result thereof) and (ii)
any amendments necessary to treat the applicable Loans and/or
Commitments of the Extending/Modifying Lenders as a new
“Class” of loans and/or commitments hereunder
(including for purposes of prepayments and voting) (it being agreed
that such new Class of Loans may be included in the definitions of
“Majority in Interest”, “Pro Rata Share”,
“Requisite Lenders” and, as applicable,
“Requisite Tranche A/Revolving Lenders” and may be
afforded class voting rights requiring the consent of Lenders under
such Class in addition to any other consent of Lenders that might
otherwise be required under Section 10.5); provided that, in the case of
any Extension/Modification Offer relating to Revolving Commitments
or Revolving Loans, (A) the borrowing and repayment (except
for repayments required upon the maturity, repayments made in
connection with any Refinancing Facility Agreement and repayments
made in connection with a permanent repayment and termination of
the applicable Commitments) of Loans under the Commitments of such
new Class and the remaining Revolving Commitments shall be made on
a ratable basis as between the Commitments of such new Class and
the remaining Revolving Commitments, (B) the allocation of the
participation exposure with respect to any then-existing or
subsequently issued Letter of Credit as between the Commitments of
such new Class and the remaining Revolving Commitments shall be
made on a ratable basis as between the Commitments of such new
Class and the remaining Revolving Commitments (and the applicable
Extension/Modification Agreement shall contain reallocation and
cash collateralization provisions, in form and substance reasonably
satisfactory to the Administrative Agent and the Borrower, with
respect to Letters of Credit outstanding on the Revolving Maturity
Date) and (C) the Revolving Commitment Period and the
Revolving Maturity Date, as such terms are used in reference to
Letters of Credit of any Issuing Bank, may not be extended without
the prior written consent of such Issuing Bank.

 

 

 

 

 

2.25. Refinancing
Facilities. The Borrower may, on one or more occasions, by written
notice to the Administrative Agent, request the establishment
hereunder of (i) one or more additional Classes of revolving
commitments (the “Refinancing Revolving Commitments”)
pursuant to which each Person providing such a commitment (a
“Refinancing Revolving Lender”) will make revolving
loans to the Borrower (“Refinancing Revolving Loans”)
and, if applicable under such Class, acquire participations in the
Letters of Credit and all the then existing Revolving Commitments
will be refinanced in full or (ii) one or more additional Classes
of term loan commitments (the “Refinancing Term Loan
Commitments”) pursuant to which each Person providing such a
commitment (a “Refinancing Term Lender”) will make term
loans to the Borrower (the “Refinancing Term Loans”).
Each such notice shall specify (A) the date on which the Borrower
proposes that the Refinancing Commitments shall be effective, which
shall be a date not less than five Business Days (or such shorter
period as may be agreed to by the Administrative Agent) after the
date on which such notice is delivered to the Administrative Agent,
(B) the amount of the Refinancing Commitments requested to be
established and (C) the identity of each Person proposed to become
a Refinancing Lender in connection therewith (it being agreed that
(x) any Lender approached to provide any Refinancing Commitment may
elect or decline, in its sole discretion, to provide such
Refinancing Commitment and (y) any Person that the Borrower
proposes to be a Refinancing Lender, if such Person is not then a
Lender, must be an Eligible Assignee and must be approved by the
Administrative Agent and, in the case of any proposed Refinancing
Revolving Lender if such Lender is to acquire participations in the
Letters of Credit, each Issuing Bank (such approvals not to be
unreasonably withheld, conditioned or delayed)). 
Notwithstanding anything to the contrary herein, no Refinancing
Commitments or Refinancing Loans may be established or made during
the Default Period.

 

(a) The terms and
conditions of any Refinancing Commitments and the Refinancing Loans
to be made thereunder shall be as determined by the Borrower and
the applicable Refinancing Lenders and set forth in the applicable
Refinancing Facility Agreement; provided that an Issuing Bank
shall not be required to issue, amend or extend any Letter of
Credit under any Refinancing Revolving Commitments unless such
Issuing Bank shall have consented to act in such capacity under
such Refinancing Revolving Commitments; provided further that (i) the stated
termination date applicable to the Refinancing Commitments and the
Refinancing Term Loan Maturity Date of any Class shall not be
earlier than the Maturity Date of the Class of Commitments or Loans
being refinanced, (ii) in the case of any Refinancing Term
Loans, the weighted average life to maturity of such Refinancing
Term Loans shall be no shorter than the remaining weighted average
life to maturity of the Class of Term Loans being refinanced (and,
for purposes of determining the weighted average life to maturity
of such Class of Term Loans being refinanced, the effects of any
prepayments made prior to the date of the determination shall be
disregarded), it being understood that, subject to this clause
(ii), the amortization schedule applicable to (and the effect
thereon of any prepayments of) any Refinancing Term Loans shall be
determined by the Borrower and the applicable Refinancing Lenders,
(iii) in the case of any partial refinancing of the Tranche B
Term Loans, the Weighted Average Yield with respect to such
Refinancing Term Loans, determined as of the date of incurrence of
such Refinancing Term Loans, shall not be greater than the Weighted
Average Yield with respect to the Tranche B Term Loans, determined
as of such date (giving effect to any amendments to the Weighted
Average Yield on the Tranche B Term Loans that became effective
subsequent to the Closing Date but prior to such date, but
excluding the effect of any increase in interest margins with
respect thereto pursuant to this clause (iii)), plus 0.50% per
annum unless the Applicable Rate (together with, as provided in the
proviso below, the Adjusted Eurodollar Rate and Base Rate floors)
with respect to the Tranche B Term Loans to remain outstanding
after such refinancing is increased, or fees to Lenders then
holding the Tranche B Term Loans to remain outstanding after such
refinancing are paid, so as to cause the Weighted Average Yield
with respect to the Tranche B Term Loans to remain outstanding
after such refinancing to equal the Weighted Average Yield with
respect to such Refinancing Term Loans minus 0.50%, provided that any increase in
the effective Weighted Average Yield with respect to the Tranche B
Term Loans due to the application of an Adjusted Eurodollar Rate or
Base Rate floor to such Indebtedness shall be effected solely
through an increase in the Adjusted Eurodollar Rate or Base Rate
floor applicable to the Tranche B Term Loans and only to the extent
an increase in such floor with respect to the Tranche B Term Loans
would cause an increase in the interest rate then in effect with
respect thereto, (iv) any Refinancing Term Loans may participate in
any mandatory prepayments hereunder on a pro rata basis (or on a
basis that is less than pro rata) with the other Term Loans, but
may not provide for mandatory prepayment requirements that are more
favorable than those applicable to the other Term Loans,
(v) any Refinancing Commitments and Refinancing Loans made
thereunder shall rank pari
passu in right of payment, and shall be secured by the
Collateral on an equal and ratable basis, with the other Loans and
Commitments hereunder, and shall be extensions of credit to the
Borrower that are Guaranteed only by the Credit Parties, and (vi)
except for the terms referred to above, to the extent the terms of
any Refinancing Commitments or Refinancing Loans (other than
interest rates (whether fixed or floating), interest margins,
benchmark rate floors, fees, original issue discounts and
prepayment terms (including “no call” terms and other
restrictions thereon) and premiums) are not consistent with those
of the Class of Loans being refinanced, such differences shall be
reasonably acceptable to the Administrative Agent (except for terms
benefitting the Refinancing Lenders (A) where this Agreement
is amended to include such beneficial terms for the benefit of all
Lenders (or, in the case of any Refinancing Term Loans that are TLA
Term Loans, all Lenders holding TLA Term Loans or Revolving
Commitments) or (B) applicable only to periods after the latest
Maturity Date in effect as of the date of establishment or
incurrence of such Refinancing Commitments or Refinancing Loans);
provided
further that
clauses (i), (ii) and (vi) shall not apply if, at the time of the
incurrence of such Refinancing Loans and after giving effect to the
application of the proceeds thereof, such Refinancing Loans shall
be the sole Class of Loans outstanding under this Agreement. In the
event any Refinancing Term Loans have the same terms as any
existing Class of Term Loans then outstanding or any Incremental
Term Loans or Extended/Modified Term Loans then substantially
concurrently established (in each case, disregarding any
differences in original issue discount or upfront fees if not
affecting the fungibility thereof for US federal income tax
purposes), such Refinancing Term Loans may, at the election of the
Borrower, be treated as a single Class with such outstanding Term
Loans or such Incremental Term Loans or Extended/Modified Term
Loans, and the scheduled Installments set forth in Section 2.11
with respect to any such Class of Term Loans may be increased to
reflect scheduled amortization of such Refinancing Term
Loans.

 

 

 

 

 

(b) The Refinancing
Commitments shall be effected pursuant to one or more Refinancing
Facility Agreements executed and delivered by the Borrower, each
Refinancing Lender providing such Refinancing Commitments, the
Administrative Agent and, in the case of Refinancing Revolving
Commitments, as applicable, each Issuing Bank; provided that no Refinancing
Commitments shall become effective unless (i) the Borrower shall
have delivered to the Administrative Agent such legal opinions,
board resolutions, secretary’s certificates, officer’s
certificates, reaffirmation agreements and other documents as shall
reasonably be requested (consistent in all material respects with
the documents delivered under Section 3.1 on the Closing Date)
by the Administrative Agent in connection therewith, (ii) in
the case of any Refinancing Revolving Commitments, substantially
concurrently with the effectiveness thereof, all the Revolving
Commitments then in effect shall be terminated and the Borrower
shall make any prepayment or deposit required to be made under
Section 2.13(f) as a result thereof and shall pay all interest on
the amounts prepaid and all fees accrued on the Revolving
Commitments (it being understood, however, that any Letters of
Credit may continue to be outstanding under the Refinancing
Revolving Commitments, in each case on terms agreed by each
applicable Issuing Bank and specified in the applicable Refinancing
Facility Agreement) and (iii) in the case of any Refinancing
Term Loan Commitments, (A) substantially concurrently with the
effectiveness thereof, the Borrower shall obtain Refinancing Term
Loans thereunder and shall repay or prepay then outstanding Term
Borrowings of any Class in an aggregate principal amount equal to
the aggregate amount of such Refinancing Term Loan Commitments
(less the aggregate amount of accrued and unpaid interest with
respect to such outstanding Term Borrowings, any original issue
discount or upfront fees applicable to such Refinancing Term Loans
and any reasonable fees, premium and expenses relating to such
refinancing) and (B) any such prepayment of Term Borrowings of
any Class shall be applied to reduce the subsequent Installments to
be made pursuant to Section 2.11 with respect to Term Borrowings of
such Class on a pro rata basis (in accordance with the principal
amounts of such Installments) and, in the case of a prepayment of
Eurodollar Rate Term Borrowings, shall be subject to
Section 2.17(c). Each Refinancing Facility Agreement may,
without the consent of any Lender other than the applicable
Refinancing Lenders, effect such amendments to this Agreement and
the other Credit Documents as may be necessary or appropriate, in
the opinion of the Administrative Agent, to give effect to the
provisions of this Section 2.25, including any amendments
necessary to treat the applicable Refinancing Commitments and
Refinancing Loans as a new Class of Commitments or Loans hereunder
(including for purposes of prepayments and voting (it being agreed
that such new Class of Commitments and Loans may be included in the
definitions of “Majority in Interest”, “Pro Rata
Share”, “Requisite Lenders” and, as applicable,
“Requisite Tranche A/Revolving Lenders” and may be
afforded class voting rights requiring the consent of Lenders under
such Class in addition to any other consent of Lenders that might
otherwise be required under Section 10.5) and to enable such new
Class of Commitments and Loans to be extended under Section 2.24 or
refinanced under this Section 2.25).

 

 

 

 

 

(c) Upon the
effectiveness of a Refinancing Commitment of any Refinancing
Lender, such Refinancing Lender shall be deemed to be a
“Lender” (and a Lender in respect of Commitments and
Loans of the applicable Class) hereunder, and henceforth shall be
entitled to all the rights of, and benefits accruing to, Lenders
(or Lenders in respect of Commitments and Loans of the applicable
Class) hereunder and shall be bound by all agreements,
acknowledgements and other obligations of Lenders (or Lenders in
respect of Commitments and Loans of the applicable Class) hereunder
and under the other Credit Documents.

 

(d) The Administrative
Agent shall notify the Lenders promptly upon receipt by the
Administrative Agent of any notice from the Borrower referred to in
Section 2.25(a) and of the effectiveness of any Refinancing
Commitments, in each case advising the Lenders of the details
thereof.

 

SECTION
3. CONDITIONS
PRECEDENT

 

3.1. Closing
Date. This Agreement and the obligation of each Lender and each
Issuing Bank to make any Credit Extension shall not become
effective until the date on which each of the following conditions
shall be satisfied (or waived in accordance with Section
10.5):

 

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

 

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

 

(c) Closing Date Refinancing. The
Closing Date Refinancing shall have been consummated or shall be
consummated substantially simultaneously with the initial funding
of Loans on the Closing Date, and the Administrative Agent shall
have received customary payoff letters with respect thereto or
other evidence thereof reasonably satisfactory to the
Administrative Agent and the Arrangers.

 

 

 

 

 

(d) Collateral and Guarantee
Requirement. Subject to the final paragraph of this
Section 3.1, the Collateral and Guarantee Requirement shall
have been satisfied. The Collateral Agent shall have received a
completed Collateral Questionnaire in form and substance reasonably
satisfactory to the Collateral Agent and the Arrangers, dated the
Closing Date and executed by an Authorized Officer of each of the
Borrower and the Acquired Company, together with all attachments
contemplated thereby, including the results of a search of the UCC
(or equivalent) filings made with respect to the Credit Parties in
the jurisdictions contemplated by the Collateral Questionnaire and
copies of the financing statements (or similar documents) disclosed
by such search and evidence reasonably satisfactory to the
Collateral Agent and the Arrangers that the Liens indicated by such
financing statements (or similar documents) are Permitted Liens or
have been, or substantially contemporaneously with the initial
funding of Loans on the Closing Date will be,
released.

 

(e) Evidence of Insurance. Subject
to the final paragraph of this Section 3.1, the Collateral
Agent shall have received a certificate from the Borrower’s
insurance broker or other evidence reasonably satisfactory to the
Collateral Agent and the Arrangers that the insurance required to
be maintained pursuant to Section 5.5 is in full force and effect,
together with customary endorsements naming the Collateral Agent,
for the benefit of Secured Parties, as additional insured and
lender’s loss payee thereunder to the extent required under
Section 5.5.

 

(f) Opinions of Counsel. The
Administrative Agent shall have received a favorable written
opinion (addressed to the Administrative Agent, the Collateral
Agent, the Lenders and the Issuing Banks and dated the Closing
Date) of each of (i) Kelley Drye & Warren LLP, counsel for
the Credit Parties, (ii) Kelley Drye & Warren LLP,
regulatory counsel for the Credit Parties, (iii) Jones Day, Georgia
counsel for the Credit Parties, and (iv) Spencer Fane LLP, Kansas
counsel for the Credit Parties, in each case in form and substance
reasonably satisfactory to the Administrative Agent and the
Arrangers (and each Credit Party hereby instructs such counsel to
deliver such opinion to the Administrative Agent).

 

(g) Fees and Expenses. The Borrower
shall have paid to the Arrangers, the Administrative Agent and the
Lenders all fees and expenses (including legal fees and expenses
and recording fees) and other amounts due and payable on or prior
to the Closing Date pursuant to the Credit Documents, the
Engagement Letter and the Fee Letters.

 

(h) Solvency Certificate. The
Administrative Agent shall have received the Solvency Certificate,
dated the Closing Date and signed by the chief financial officer of
the Borrower.

 

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

 

 

 

 

 

(j) Letter of Direction. The
Administrative Agent and Goldman Sachs, as an Arranger, shall have
received a duly executed letter of direction from the Borrower
addressed to Goldman Sachs, as an Arranger, directing the
disbursement on the Closing Date of the proceeds of the Loans to be
made on such date.

 

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

 

(l) Consummation of the Merger. The
Merger shall have been (or substantially concurrently with the
funding of the Tranche A Term Loans and the Tranche B Term
Loans on the Closing Date shall be) consummated, pursuant to and on
the terms set forth in the Merger Agreement. The Arrangers shall
have received a copy of the Merger Agreement (including a copy of
the Acquired Company Indemnity Letter Agreement), together with all
closing deliverables thereunder, certified by an Authorized Officer
of the Borrower as complete and correct.

 

(m) Distribution of the Consumer/SMB
Business. The Consumer/SMB Business shall have been (or
substantially concurrently with the funding of the Tranche A Term
Loans and the Tranche B Term Loans on the Closing Date shall
be) distributed by the Acquired Company, pursuant to and on the
terms set forth in the Merger Agreement. The Arrangers shall have
received a copy of the definitive agreements relating to the
distribution of the Consumer/SMB Business, together with all
closing deliverables thereunder, certified by an Authorized Officer
of the Acquired Company as complete and correct.

 

(n) Fusion Global Transactions. The
Borrower shall have consummated (or substantially concurrently with
the funding of the Tranche A Term Loans and the Tranche B Term
Loans on the Closing Date shall consummate) the Fusion Global
Arrangement, pursuant to and on the terms set forth in the Merger
Agreement. The Arrangers shall have received a copy of the
definitive agreements relating to the Fusion Global Arrangement,
together with all closing deliverables thereunder, certified by an
Authorized Officer of the Borrower as complete and
correct.

 

(o) Subordinated Notes Issuance or
Amendment. The Borrower shall have received (or
substantially concurrently with the funding of the Tranche A Term
Loans and the Tranche B Term Loans on the Closing Date shall
receive) gross cash proceeds of not less than $10,000,000 from the
issuance of the New Subordinated Note. The Existing Subordinated
Notes shall have been (or substantially concurrently with funding
of the Tranche A Term Loans and the Tranche B Term Loans on the
Closing Date shall be) amended and restated to, among other things,
provide that the Existing Subordinated Notes are subordinated in
right of payment to the Obligations and all Permitted Second Lien
Indebtedness, Permitted Credit Agreement Refinancing Indebtedness
and Permitted Incremental Equivalent Indebtedness (in each case,
other than Subordinated Indebtedness) of the Borrower or any
Guarantor Subsidiary, as applicable, in a manner reasonably
satisfactory to the Arrangers. The Administrative Agent shall have
received a copy of the Permitted Subordinated Indebtedness
Documents with respect to the Subordinated Notes, certified by an
Authorized Officer of the Borrower as complete and correct, and the
terms and conditions of the Subordinated Notes, and the provisions
of the Permitted Subordinated Indebtedness Documents with respect
thereto, shall be reasonably satisfactory to the
Arrangers.

 

 

 

 

 

(p) Closing Date Common Equity
Issuance. The Closing Date Common Equity Issuance shall have
occurred (or substantially concurrently with the funding of the
Tranche A Term Loans and the Tranche B Term Loans on the
Closing Date shall occur), and the Borrower shall have received (or
substantially concurrently with the funding of the Tranche A Term
Loans and the Tranche B Term Loans on the Closing Date shall
receive) gross cash proceeds of not less than $4,999,998.50
therefrom. The Arrangers shall have received a copy of the
definitive agreements relating to the Closing Date Common Equity
Issuance, together with all closing deliverables thereunder,
certified by an Authorized Officer of the Borrower as complete and
correct.

 

(q) Closing Date Preferred Equity
Issuance. The Borrower shall have issued and sold (or
substantially concurrently with the funding of the Tranche A Term
Loans and the Tranche B Term Loans on the Closing Date shall issue
and sell) the Closing Date Preferred Stock to Holcombe T. Green,
Jr. (or an entity majority-owned and Controlled by Holcombe T.
Green, Jr.), and the Borrower shall have received (or substantially
concurrently with the funding of the Tranche A Term Loans and the
Tranche B Term Loans on the Closing Date shall receive) gross cash
proceeds of not less than $14,700,000 therefrom. The Arrangers
shall have received a copy of the definitive agreements relating to
the Closing Date Preferred Stock, together with all closing
deliverables relating thereto, all of which shall be in form and
substance reasonably satisfactory to the Arrangers and certified by
an Authorized Officer of the Borrower as complete and
correct.

 

(r) Escrow Cash Collateral
Arrangement. The Borrower shall have established a blocked
deposit account maintained with a depository institution reasonably
acceptable to the Collateral Agent and the Arrangers (i) in which
the Escrow Cash Collateral in an amount equal to the Escrow Cash
Amount shall have been (or substantially concurrently with the
funding of the Tranche B Term Loans on the Closing Date shall be)
deposited to be held as cash collateral securing the Obligations
pending use as contemplated by Section 2.5(c) and (ii) that is
subject to a control agreement in favor of the Collateral Agent, in
form and substance reasonably satisfactory to the Collateral Agent
and the Arrangers (the “Escrow Cash Collateral Control
Agreement”), pursuant to which the Escrow Cash
Collateral shall be subject to the sole control and dominion of the
Collateral Agent, to be released by the Collateral Agent solely for
the purposes contemplated by Section 2.5(c) in accordance with the
provisions of Section 9.8(d)(ii) (the “Escrow Cash Collateral
Account”).

 

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

 

Notwithstanding the
foregoing, solely with respect to the matters expressly identified
in the Post-Closing Letter Agreement, the satisfaction by the
Credit Parties of the foregoing conditions shall not be required on
the Closing Date, and shall not be a condition to the making of the
Credit Extensions on the Closing Date, but shall be required to be
accomplished in accordance with the Post-Closing Letter
Agreement.

 

 

 

 

 

3.2. Each
Credit Extension. The obligation of each Lender and each Issuing
Bank to make any Credit Extension on any Credit Date, including the
Closing Date, is subject to the satisfaction (or waiver in
accordance with Section 10.5) of the following conditions precedent
(it being understood and agreed that, in the case of any Term Loans
the proceeds of which are intended to be applied to finance a
Limited Conditionality Transaction, the conditions precedent set
forth in clauses (b) and (c) below may be satisfied as of the
applicable LCT Test Date in accordance with
Section 1.5):

 

(a) the Administrative
Agent and, in the case of any issuance, amendment or extension
(other than an automatic extension permitted under
Section 2.3(a)) of any Letter of Credit, the applicable
Issuing Bank shall have received a fully completed and executed
Funding Notice or Issuance Notice, as the case may be;

 

(b) the representations
and warranties of each Credit Party set forth in the Credit
Documents shall be true and correct (i) in the case of the
representations and warranties qualified or modified as to
materiality in the text thereof, in all respects and (ii)
otherwise, in all material respects, in each case on and as of such
Credit Date, except in the case of any such representation and
warranty that expressly relates to an earlier date, in which case
such representation and warranty shall be so true and correct on
and as of such earlier date; and

 

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

 

On the date of any
Credit Extension, the Borrower shall be deemed to have represented
and warranted that the conditions specified in Sections 3.2(b) and
3.2(c) have been satisfied and that, after giving effect to such
Credit Extension, the Total Utilization of Revolving Commitments
(or any component thereof) shall not exceed the maximum amount
thereof (or the maximum amount of any such component) specified in
Section 2.2(a) or 2.3(a).

 

SECTION
4. REPRESENTATIONS
AND WARRANTIES

 

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

 

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

 

 

 

 

 

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

 

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

 

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

 

4.5. Governmental
Approvals. The Transactions do not and will not require any
registration with, consent or approval of, notice to, or other
action by any Governmental Authority, except (a) such as have been
obtained or made and are in full force and effect, (b) filings
and recordings with respect to the Collateral necessary to perfect
Liens created under the Credit Documents or the Second Lien Credit
Documents and (c) filings and registrations under applicable
securities laws relating to the Disposition by the Collateral Agent
pursuant to the Pledge and Security Agreement of Collateral that
constitute Securities.

 

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

 

 

 

 

 

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

 

(a) The Projections
have been prepared in good faith based upon assumptions that were
believed by the Borrower to be reasonable at the time made, it
being understood and agreed that the Projections are not a
guarantee of financial performance and actual results may differ
therefrom and such differences may be material.

 

(b) The Pro Forma
Financial Statements (i) have been prepared by the Borrower in good
faith based on assumptions that were believed by the Borrower to be
reasonable at the time made and are believed by the Borrower to be
reasonable on the Closing Date, (ii) accurately reflect in all
material respects all adjustments necessary to give effect to the
Transactions as contemplated by such Pro Forma Financial Statements
and (iii) present fairly, in all material respects, the pro
forma financial position and results of operations of the Borrower
and the Subsidiaries as of the date and for the period stated
therein as if the Transactions as contemplated by such Pro Forma
Financial Statements had occurred on such date or at the beginning
of such period, as the case may be.

 

4.8. No
Material Adverse Effect. Since December 31, 2017, there has
been no event or condition that has had, or would reasonably be
expected to have, individually or in the aggregate, a Material
Adverse Effect.

 

4.9. Adverse
Proceedings. There are no Adverse Proceedings that (a) individually
or in the aggregate would reasonably be expected to have a Material
Adverse Effect or (b) in any manner question the validity or
enforceability of any of the Credit Documents or otherwise involve
any of the Credit Documents or the Transactions.

 

 

 

 

 

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

 

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

 

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

 

(b) Intellectual Property. The
Borrower and each Restricted Subsidiary owns, or is licensed to
use, all Intellectual Property that is necessary for the conduct of
its business as currently conducted, and without conflict with the
rights of any other Person, except to the extent any such conflict,
individually or in the aggregate, would not reasonably be expected
to have a Material Adverse Effect. No Intellectual Property used by
the Borrower or any Restricted Subsidiary in the operation of its
business infringes upon the rights of any other Person, except for
any such infringements that, individually or in the aggregate,
would not reasonably be expected to have a Material Adverse Effect.
No claim or litigation regarding any Intellectual Property owned or
used by the Borrower or any Restricted Subsidiary is pending or, to
the knowledge of the Borrower or any Restricted Subsidiary,
threatened in writing against the Borrower or any Restricted
Subsidiary that, individually or in the aggregate, would reasonably
be expected to have a Material Adverse Effect.

 

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

 

 

 

 

 

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

 

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

 

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

 

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

 

4.16. Employee
Benefit Plans. The Borrower, each Restricted Subsidiary and each of
their respective ERISA Affiliates is in compliance with all
applicable provisions and requirements of ERISA and the Internal
Revenue Code and the regulations and published interpretations
thereunder with respect to each Employee Benefit Plan, and has
performed all its obligations under each Employee Benefit Plan,
except where such failure to comply or perform, individually or in
the aggregate, would not reasonably be expected to have a Material
Adverse Effect. Each Employee Benefit Plan which is intended to
qualify under Section 401(a) of the Internal Revenue Code has
received a favorable determination letter or opinion letter from
the IRS indicating that such Employee Benefit Plan is so qualified
and nothing has occurred subsequent to the issuance of such
determination letter or opinion letter which would cause such
Employee Benefit Plan to lose its qualified status. No liability to
the PBGC (other than required premium payments), the IRS, any
Employee Benefit Plan or any trust established under Title IV of
ERISA has been or is expected to be incurred by the Borrower, any
Restricted Subsidiary or any of their respective ERISA Affiliates,
except as would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect. No ERISA Event or
Foreign Plan Event has occurred or is reasonably expected to occur,
except as would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect. Except to the extent
required under Section 4980B of the Internal Revenue Code or
similar state laws, no Employee Benefit Plan provides health or
welfare benefits (through the purchase of insurance or otherwise)
for any retired or former employee of the Borrower, any Restricted
Subsidiary or any of their respective ERISA Affiliates. The present
value of the aggregate benefit liabilities under each Pension Plan
sponsored, maintained or contributed to by the Borrower, any
Restricted Subsidiary or any of their respective ERISA Affiliates
(determined as of the end of the most recent plan year on the basis
of assumptions used for purposes of Accounting Standards
Codification Topic 715), did not exceed the aggregate current value
of the assets of such Pension Plan. As of the most recent valuation
date for each Multiemployer Plan for which the actuarial report is
available, the potential liability of the Borrower, the Restricted
Subsidiaries and their respective ERISA Affiliates for a complete
withdrawal from such Multiemployer Plan (within the meaning of
Section 4203 of ERISA), when aggregated with such potential
liability for a complete withdrawal from all Multiemployer Plans,
based on information available pursuant to Section 4221(e) of ERISA
is zero. The Borrower, each Restricted Subsidiary and each of their
respective ERISA Affiliates is not in material
“default” (as defined in Section 4219(c)(5) of ERISA)
with respect to payments to a Multiemployer Plan. None of the
Borrower or any of its Subsidiaries is an entity deemed to hold
“plan assets” (within the meaning of 29 CFR §
2510.3-101, as modified by Section 3(42) of ERISA).

 

 

 

 

 

4.17. Solvency.
On the Closing Date (after giving effect to the borrowing of the
Tranche A Term Loans and the Tranche B Term Loans hereunder
and the other Transactions to occur on such date), the Borrower and
its Subsidiaries, on a consolidated basis, are
Solvent.

 

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

 

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

 

4.20. Collateral
Matters. The Pledge and Security Agreement, upon execution and
delivery thereof by the parties thereto, will create in favor of
the Collateral Agent, for the benefit of the Secured Parties, a
valid and enforceable security interest in the Collateral (as
defined therein) and (i) when the Collateral (as defined
therein) constituting certificated securities (as defined in the
UCC) is delivered to the Collateral Agent without “notice of
any adverse claims” (all within the meaning of the UCC),
together with instruments of transfer duly endorsed in blank, the
security interest created under the Pledge and Security Agreement
will constitute a fully perfected security interest in all right,
title and interest of the pledgors thereunder in such Collateral,
prior and superior in right to any other Person (subject to

the Bridge Intercreditor Agreement and any Pari Passu
Intercreditor Agreement), and (ii) when financing statements
in appropriate form are filed in the applicable filing offices, the
security interest created under the Pledge and Security Agreement
will constitute a fully perfected security interest in all right,
title and interest of the Credit Parties in the remaining
Collateral (as defined therein) to the extent perfection can be
obtained by filing UCC financing statements, prior and superior in
right to any other Person, but subject to Permitted
Liens.

 

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

 

 

 

 

 

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

 

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

 

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

 

 

 

 

 

4.22. Communications
Regulatory Matters.

 

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

 

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

 

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

 

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

 

(e) Except as has been
obtained or will be obtained prior to the Closing Date, no consent,
approval, authorization, order or waiver of, or filing with, the
FCC, the State PUCs or any other Governmental Authority is required
under the Communications Laws to be obtained or made by the
Borrower or any Subsidiary for (i) the execution, delivery and
performance of this Agreement or the other Credit Documents or (ii)
the consummation of the Merger and the other
Transactions.

 

 

 

 

 

SECTION
5. AFFIRMATIVE
COVENANTS

 

Until the
Commitments shall have expired or been terminated and the principal
of and interest on each Loan and all fees payable hereunder shall
have been paid in full and all Letters of Credit shall have expired
with no pending drawings or been terminated and the Letter of
Credit Usage shall have been reduced to zero, each Credit Party
covenants and agrees with the Agents, the Lenders and the Issuing
Banks that:

 

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

 

(a) Annual Financial Statements.
Commencing with the Fiscal Year ending December 31, 2018, as soon
as available, and in any event within 95 days after the end of
each Fiscal Year, the consolidated balance sheet of the Borrower
and the Subsidiaries as of the end of such Fiscal Year and the
related consolidated statements of operations, stockholders’
equity and cash flows of the Borrower and the Subsidiaries for such
Fiscal Year, setting forth in each case in comparative form the
corresponding figures for the previous Fiscal Year, together with a
report thereon of EisnerAmper LLP or an independent registered
public accounting firm of recognized national standing (which
report shall not contain a “going concern” or like
statement, qualification, exception or emphasis or any
qualification, exception or emphasis as to the scope of audit,
provided that such
report may contain a “going concern” statement solely
as a result of an impending maturity within 12 months of any Loans
or any Permitted Pari Passu Secured Indebtedness or any prospective
(but not actual) failure to comply with Section 6.7(a) or 6.7(c)),
and shall state that such consolidated financial statements present
fairly, in all material respects, the consolidated financial
position of the Borrower and its Subsidiaries as of the dates
indicated and the consolidated results of operations and cash flows
of the Borrower and its Subsidiaries for the periods indicated in
conformity with GAAP applied on a basis consistent with prior years
(except as otherwise disclosed in such financial statements) and
that the examination by such accounting firm in connection with
such consolidated financial statements has been made in accordance
with generally accepted auditing standards;

 

(b) Quarterly Financial Statements.
Commencing with the first such Fiscal Quarter ending after the
Closing Date, as soon as available, and in any event within
45 days after the end of each of the first three Fiscal
Quarters of each Fiscal Year, the consolidated balance sheet of the
Borrower and the Subsidiaries as of the end of such Fiscal Quarter
and the related consolidated statements of operations,
stockholders’ equity and cash flows of the Borrower and its
Subsidiaries for such Fiscal Quarter (in the case of such
statements of operations) and for the period from the beginning of
the then current Fiscal Year to the end of such Fiscal Quarter,
setting forth in each case in comparative form the corresponding
figures for the corresponding periods of (or, in the case of the
balance sheet, as of the end of) the previous Fiscal Year, together
with a Financial Officer Certification with respect
thereto;

 

(c) Compliance Certificate and
Unrestricted Subsidiary Reconciliation Statements. Together
with each delivery of the consolidated financial statements of the
Borrower and its Subsidiaries pursuant to Section 5.1(a) or 5.1(b),
a completed Compliance Certificate executed by the chief financial
officer of the Borrower and, if any Subsidiary shall be an
Unrestricted Subsidiary, with respect to each such financial
statement an Unrestricted Subsidiary Reconciliation Statement
(which may be in a footnote form), which shall be accompanied by a
Financial Officer Certification;

 

 

 

 

 

(d) Statements of Reconciliation after
Change in Accounting Principles. If, as a result of any
change in GAAP or in the application thereof since the date of the
most recent balance sheet delivered pursuant to Section 5.1(a)
or 5.1(b) (or, prior to the first such delivery, since December 31,
2017), the consolidated financial statements of the Borrower
delivered pursuant to Section 5.1(a) or 5.1(b) will differ in any
material respect from the consolidated financial statements that
would have been delivered pursuant to such Section had no such
change occurred, then, together with the first delivery of such
financial statements after such change, one or more statements of
reconciliation specifying in reasonable detail the effect of such
change on such financial statements, including those for the prior
period;

 

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

 

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

 

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

 

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

 

(g) [Reserved];

 

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

 

 

 

 

 

(i) Financial Plan. As soon as
available and in any event no later than 120 days after the
beginning of each Fiscal Year, a consolidated plan and financial
forecast for such Fiscal Year, including (i) a forecasted
consolidated balance sheet and forecasted consolidated statements
of comprehensive income and cash flows of the Borrower and the
Subsidiaries for such Fiscal Year, and an explanation of the
assumptions on which such forecasts are based, and (ii) forecasted
consolidated statements of comprehensive income and cash flows of
the Borrower and the Subsidiaries for each Fiscal Quarter of such
Fiscal Year;

 

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

 

(k) Collateral Verification.
Commencing with the Fiscal Year ending December 31, 2018, together
with each delivery of the consolidated financial statements of the
Borrower and its Subsidiaries pursuant to Section 5.1(a), a
completed Supplemental Collateral Questionnaire executed by an
Authorized Officer of the Borrower, together with all attachments
contemplated thereby;

 

(l) Filed or Distributed
Information. Promptly upon their becoming available, copies
of all regular and periodic reports and all registration statements
and prospectuses, if any, filed by the Borrower or any Restricted
Subsidiary with the SEC or any Governmental Authority performing
similar functions;

 

(m) Notice of Modifications of Junior
Indebtedness Documents. Promptly upon the effectiveness
thereof, notice of any execution and delivery of any credit
agreement, indenture or other agreement or instrument evidencing or
governing the rights of the holders of any Junior Indebtedness or
of any amendment, waiver or other modification of any such credit
agreement, indenture or other agreement or instrument, together
with a copy thereof; and

 

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

 

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

 

 

 

 

 

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

 

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

 

5.3. Payment
of Taxes. The Borrower and each Subsidiary will pay all Taxes
imposed upon it or any of its properties prior to the time when any
penalty or fine shall be incurred with respect thereto;
provided that no
such Tax need be paid if (a) it is being contested in good
faith by appropriate proceedings promptly instituted and diligently
conducted so long as an adequate reserve or other appropriate
provision, as shall be required in conformity with GAAP, shall have
been made therefor or (b) the failure to make such payment
would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

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

 

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

 

 

 

 

 

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

 

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

 

5.7. Lenders
Meetings. The Borrower will, upon the request of the Administrative
Agent or the Requisite Lenders, participate in a telephonic
conference with the Administrative Agent and Lenders once during
each Fiscal Quarter to be held at such time as may be agreed to by
the Borrower and the Administrative Agent.

 

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

 

 

 

 

 

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

 

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

 

5.10. Subsidiaries.
If any Person becomes a Restricted Subsidiary of the Borrower (or
any Subsidiary of the Borrower not theretofore a Designated
Subsidiary becomes a Designated Subsidiary, including as a result
of a designation of any Unrestricted Subsidiary as a Restricted
Subsidiary or any Subsidiary
becoming a Material Subsidiary), the Borrower will, as
promptly as practicable, and in any event within 30 days (or such
longer period as the Administrative Agent may agree to in writing),
notify the Administrative Agent in writing thereof and cause the
Collateral and Guarantee Requirement to be satisfied with respect
to such Restricted Subsidiary (if such Restricted Subsidiary is a
Designated Subsidiary) and with respect to any Equity Interests in
or Indebtedness of such Restricted Subsidiary owned by any Credit
Party.

 

5.11. Additional
Collateral. The Borrower will furnish to the Administrative Agent
prompt written notice of (a) the acquisition by any Credit
Party of a Material Real Estate Asset after the Closing Date and
(b) the acquisition by any Credit Party of any other material
assets (other than any assets constituting Excluded Property) after
the Closing Date, other than any such assets constituting
Collateral under the Collateral Documents in which the Collateral
Agent shall have a valid, legal and perfected security interest
(with the priority contemplated by the applicable Collateral
Document) upon the acquisition thereof. The Borrower will, as
promptly as practicable and in any event within 60 days (or such
longer period as the Administrative Agent may agree to in writing),
cause the requirements of clause (g) of the Collateral and
Guarantee Requirement to be satisfied with respect to such Material
Real Estate Asset.

 

5.12. Further
Assurances. Each Credit Party will execute any and all further
documents, financing statements, agreements and instruments, and
take any and all further actions (including the filing and
recording of financing statements, fixture filings, mortgages,
deeds of trust and other documents), that may be required under any
applicable law, or that the Administrative Agent or the Collateral
Agent may reasonably request, to cause the Collateral and Guarantee
Requirement to be and remain satisfied at all times (to the extent
applicable, subject to the grace periods set forth in Sections 5.10
and 5.11) or otherwise to effectuate the provisions of the Credit
Documents, all at the expense of the Credit Parties. The Borrower
will provide to the Administrative Agent and the Collateral Agent,
from time to time upon request, evidence reasonably satisfactory to
the Administrative Agent or the Collateral Agent, as applicable, as
to the perfection and priority of the Liens created or intended to
be created by the Collateral Documents.

 

 

 

 

 

5.13. Maintenance
of Ratings. The Borrower will use commercially reasonable efforts
to maintain continuously a public corporate family rating (or
comparable public ratings) from Moody’s and a public
corporate credit rating (or comparable public rating) from S&P,
in each case in respect of the Borrower, and a public credit rating
from each of Moody’s and S&P in respect of the Tranche A
Term Loans and the Tranche B Term Loans (in each case, with no
requirement as to any minimum rating).

 

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

 

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

 

5.15. Post-Closing
Matters. The Credit Parties shall satisfy each of the requirements
set forth in the Post-Closing Letter Agreement on or before the
date specified in the Post-Closing Letter Agreement for each such
requirement, or such later date as may be permitted with respect
thereto pursuant to the terms of the Post-Closing Letter Agreement.

The Borrower will, and will cause each other Credit Party to,
satisfy the post-closing conditions described in Schedule III of
Amendment No. 1 within the timelines set forth
therein.

 

5.16. Vector
Subordinated Note Cash Collateral Account. The Borrower shall
establish the Vector Subordinated Note Cash Collateral Account and
cause the Vector Subordinated Note Cash Collateral Account to be
subject to the Vector Subordinated Note Cash Collateral Control
Agreement, in each case, in accordance with the requirements of the
Post-Closing Letter Agreement. On the date of receipt by the
Borrower or any Subsidiary of any Vector Subordinated Note
Collateral consisting of Cash or Cash Equivalents, the Borrower
shall notify the Administrative Agent in writing of such receipt
and shall cause an amount equal to such Cash or Cash Equivalents to
be deposited into the Vector Subordinated Note Cash Collateral
Account, and prior to such deposit, shall hold such Cash or Cash
Equivalents in trust for the benefit of the Collateral Agent and
the other Secured Parties; provided that the Borrower
shall not be required to comply with the foregoing requirements of
this sentence in respect of any such Vector Subordinated Note
Collateral if on the date of receipt of such Vector Subordinated
Note Collateral (a) no Default or Event of Default shall have
occurred and be continuing, (b) the Total Leverage Ratio shall
be less than 2.50:1.00, determined as of the last day of the then
most recently ended Test Period, and (c) the Borrower shall have
delivered to the Administrative Agent a certificate of an
Authorized Officer of the Borrower certifying that the requirements
set forth in clauses (a) and (b) above have been satisfied and
including reasonably detailed calculations demonstrating
satisfaction of the requirement set forth in clause (b)
above.

 

 

 

 

 

SECTION
6. NEGATIVE
COVENANTS

 

Until the
Commitments shall have expired or been terminated and the principal
of and interest on each Loan and all fees payable hereunder shall
have been paid in full and all Letters of Credit shall have expired
with no pending drawings or been terminated and the Letter of
Credit Usage shall have been reduced to zero, each Credit Party
covenants and agrees with the Agents, the Lenders and the Issuing
Banks that:

 

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

(and, provided, that during the Default Period, the Borrower and
the Restricted Subsidiaries may not, directly or indirectly, incur
or remain liable with respect to any Indebtedness described in
clauses (a) (solely with respect to Indebtedness pursuant to
Section 2.23, 2.24 or 2.25), (d) (solely with respect to
Refinancing Indebtedness permitted thereby), (e), (f), (g), (h)(2),
(i), (n), (o), (p) or (q) below, in each case other than
Indebtedness existing on the Amendment No. 1 Effective Date and
described on Schedule 6.1A hereto):

 

(a) Indebtedness
created under the Credit Documents, including pursuant to
Sections 2.23, 2.24 or 2.25;

 

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

 

(c) Guarantees incurred
in compliance with Section 6.6(e);

 

(d) Indebtedness
existing on the date hereof and set forth on Schedule 6.1 and
Refinancing Indebtedness in respect thereof;

 

(e) (i) Indebtedness
of the Credit Parties under the Second Lien Credit Agreement (or
under any documents governing Second Lien Permitted Incremental
Equivalent Indebtedness) in an aggregate principal amount at any
time outstanding, when taken together with the aggregate principal
amount of Refinancing Indebtedness outstanding pursuant to clause
(ii) below, not to exceed the sum of (A) $85,000,000,
plus (B) the
aggregate principal amount of Indebtedness that may be incurred
pursuant to Section 2.23 of the Second Lien Credit Agreement (or
any comparable successor provision); provided that if the Second
Lien Credit Agreement is amended, modified, waived or supplemented
or replaced following the Closing Date, this clause (B) shall
in no event allow on any date of determination an aggregate
principal amount of Indebtedness to be incurred pursuant to this
clause (B) that is in excess of the aggregate principal amount
that could have been incurred on such date pursuant to the
provisions of Section 2.23 in the Second Lien Credit Agreement as
in effect on the Closing Date; provided that, in the case of
any Indebtedness incurred under this clause (e)(i), (I) such
Indebtedness shall constitute Permitted Junior Lien Secured
Indebtedness or Permitted Unsecured Indebtedness, (II) the
stated final maturity of such Indebtedness shall not be earlier
than 91 days after the latest Maturity Date in effect on the date
such Indebtedness is incurred, (III) the weighted average life to
maturity of any such Indebtedness shall be no shorter than the
longest remaining weighted average life to maturity of any Class of
Term Loans outstanding as of the date of the incurrence thereof
(and, for purposes of determining the weighted average life to
maturity of any such Class of Term Loans, the effects of any
prepayments made prior to the date of the determination shall be
disregarded), (IV) such Indebtedness satisfies the Specified
Permitted Indebtedness Documentation Requirements and (V) other
than in the case of any such Indebtedness incurred under the Second
Lien Credit Agreement on the Closing Date, the Administrative Agent
shall have received a certificate, dated the date such Indebtedness
is incurred and signed by an Authorized Officer of the Borrower,
confirming compliance with the conditions set forth in clause (i)
above and, if such Indebtedness or any portion thereof is being
incurred in reliance on clause (i)(B) above, setting forth a
reasonably detailed calculation of the amount of Indebtedness
permitted to be incurred under such clause; and (ii) Refinancing
Indebtedness in respect of any Indebtedness permitted under clause
(i) above or under this clause (ii);

 

 

 

 

 

(f) (i) Indebtedness of
the Borrower or any Restricted Subsidiary (A) incurred to finance
the acquisition, construction or improvement of any fixed or
capital assets of the Borrower or any Restricted Subsidiary,
including Capital Lease Obligations, provided that such Indebtedness
is incurred prior to or within 180 days after such acquisition or
the completion of such construction or improvement and the
principal amount of such Indebtedness does not exceed the cost of
acquiring, constructing or improving such fixed or capital assets,
or (B) assumed in connection with the acquisition of any fixed
or capital assets of the Borrower or any Restricted Subsidiary,
provided, in the
case of this clause (i), that at the time of incurrence of such
Indebtedness and after giving Pro Forma Effect thereto and the use
of the proceeds thereof, the aggregate principal amount of
Indebtedness then outstanding under this clause (i), together with
the aggregate principal amount of Refinancing Indebtedness then
outstanding under clause (ii) below and with the aggregate
principal amount of Capital Lease Obligations outstanding under
Section 6.1(n), shall not exceed the greater of (x)
$35,000,000 and (y) 7.0% of Consolidated Total Assets as of the
last day of the then most recently ended Test Period; and (ii) any
Refinancing Indebtedness in respect of any Indebtedness permitted
under clause (i) above or under this clause (ii);

 

(g) (i) Indebtedness of
any Person that becomes (other than as a result of a redesignation
of an Unrestricted Subsidiary) a Restricted Subsidiary (or of any
Person not previously a Subsidiary that is merged or consolidated
with or into a Restricted Subsidiary in a transaction permitted
hereunder) after the date hereof, or Indebtedness of any Person
that is assumed or incurred by the Borrower or any Restricted
Subsidiary after the date hereof in connection with an Acquisition
permitted hereunder consummated by the Borrower or any Restricted
Subsidiary after the date hereof (other than the Specified
Acquisition), provided, in the case of this
clause (i), that at the time of the Borrower or any Restricted
Subsidiary becoming liable with respect to such Indebtedness
(whether as a result of such Person becoming a Restricted
Subsidiary (or such merger or consolidation) or such assumption),
and after giving Pro Forma Effect thereto and the use of the
proceeds thereof, the aggregate principal amount of Indebtedness
then outstanding under this clause (i), together with the aggregate
principal amount of Refinancing Indebtedness then outstanding under
clause (ii) below, shall not exceed the greater of
(x) $25,000,000 and (y) 5.0% of Consolidated Total Assets as
of the last day of the then most recently ended Test Period; and
(ii) any Refinancing Indebtedness in respect of any Indebtedness
permitted under clause (i) above or under this clause (ii);
provided
further that the
aggregate principal amount of all Indebtedness outstanding under
this clause (g) incurred by Restricted Subsidiaries that are not
Credit Parties, when aggregated with the aggregate principal amount
of all Indebtedness of Restricted Subsidiaries that are not Credit
Parties outstanding under Section 6.1(o), shall not at any
time exceed $10,000,000;

 

 

 

 

 

(h) (1)
Indebtedness of the Credit Parties under the Bridge Credit
Agreement and (2) so long as, after giving Pro Forma Effect
to the incurrence of such Indebtedness and the use of proceeds
thereof (but without netting the Cash proceeds of such Indebtedness
(and any other Indebtedness incurred substantially concurrently
therewith), no Event of Default shall have occurred and be
continuing and the Borrower shall be in compliance with the
financial covenant set forth in Section 6.7(a), determined as of
the last day of the then most recently ended Test Period
(provided that to
the extent the proceeds of such Indebtedness are intended to be
applied to finance a Limited Conditionality Transaction, at the
option of the Borrower, the foregoing conditions may be tested in
accordance with Section 1.5), (i) Permitted Pari Passu Secured
Indebtedness, Permitted Junior Lien Secured Indebtedness and
Permitted Unsecured Indebtedness; provided that (A) the
aggregate amount of Indebtedness incurred under 
clause (h)(1) and this clause (h)(2)(i)
on any date shall not exceed the Incremental Amount as of such
date;
provided, further, that with respect to Indebtedness incurred under
this clause (h)(2)(i), (BA)
the stated final maturity of such Indebtedness shall not be earlier
than the latest Maturity Date in effect on the date such
Indebtedness is incurred, (CB)
the weighted average life to maturity of any such Indebtedness
shall be no shorter than the longest remaining weighted average
life to maturity of any Class of Term Loans outstanding as of the
date of the incurrence thereof (and, for purposes of determining
the weighted average life to maturity of any such Class of Term
Loans, the effects of any prepayments made prior to the date of the
determination shall be disregarded), (DC) in
the case of Permitted Pari Passu Secured Indebtedness, the Weighted
Average Yield, determined as of the date of incurrence of such
Indebtedness, shall not be greater than the Weighted Average Yield
with respect to the Tranche B Term Loans, determined as of such
date (giving effect to any amendments to the Weighted Average Yield
on the Tranche B Term Loans that became effective subsequent to the
Closing Date but prior to such date, but excluding the effect of
any increase in interest margins with respect thereto pursuant to
this clause (DC)),
plus 0.50% per annum unless the Applicable Rate (together with, as
provided in the proviso below, the Adjusted Eurodollar Rate and
Base Rate floors) with respect to the Tranche B Term Loans is
increased, or fees to Lenders then holding the Tranche B Term Loans
are paid, so as to cause the Weighted Average Yield with respect to
the Tranche B Term Loans to equal the Weighted Average Yield with
respect to such Indebtedness minus 0.50%, provided that any increase in
the effective Weighted Average Yield with respect to the Tranche B
Term Loans due to the application of an Adjusted Eurodollar Rate or
Base Rate floor to such Indebtedness shall be effected solely
through an increase in the Adjusted Eurodollar Rate or Base Rate
floor applicable to the Tranche B Term Loans and only to the extent
an increase in such floor with respect to the Tranche B Term Loans
would cause an increase in the interest rate then in effect with
respect thereto, (ED)
such Indebtedness satisfies the Specified Permitted Indebtedness
Documentation Requirements and (FE)
the Administrative Agent shall have received a certificate, dated
the date such Indebtedness is incurred and signed by an Authorized
Officer of the Borrower, confirming,
in the case of any Indebtedness incurred under clause (2)
above, the absence of Events of Default as required above
and compliance with the conditions set forth in 
the first proviso to clause (A2)
above, setting forth a reasonably detailed calculation of
compliance with Section 6.7(a) on a Pro Forma Basis and, if
such Indebtedness or any portion thereof is being incurred in
reliance on clause (b) of the definition of the term
“Incremental Amount”, setting forth a reasonably
detailed calculation of the Incremental Amount under such clause;
provided
further that such
Indebtedness may be incurred in the form of a bridge or other
interim credit facility intended to be extended, renewed or
refinanced with Long-Term Indebtedness (and such bridge or other
interim credit facility shall be deemed to satisfy clauses
(BA)
and (CB)
above so long as (x) such credit facility includes customary
“rollover” provisions that are subject to no conditions
precedent other than (I) the occurrence of the date specified for
the “rollover” and (II) that no payment or bankruptcy
event of default shall have occurred and be continuing and (y)
assuming such credit facility were to be extended pursuant to such
“rollover” provisions, such extended credit facility
would comply with clauses (BA)
and (CB)
above); and (ii) any Refinancing Indebtedness in respect of any
Indebtedness permitted under clause (i) above or under this clause
(ii);

 

 

 

 

 

(i) so long as, after
giving Pro Forma Effect to the incurrence of such Indebtedness and
the use of proceeds thereof (but without netting the Cash proceeds
of such Indebtedness (and any other Indebtedness incurred
substantially concurrently therewith), no Event of Default shall
have occurred and be continuing and the Borrower shall be in
compliance with the financial covenant set forth in Section 6.7(a),
determined as of the last day of the then most recently ended Test
Period, (i) Permitted Pari Passu Secured Indebtedness,
Permitted Junior Lien Secured Indebtedness and Permitted Unsecured
Indebtedness that, in each case, refinances, in whole or in part,
any Term Loans; provided that (A) the original
aggregate principal amount of such Indebtedness shall not exceed
the aggregate principal amount of such Term Loans being refinanced
(except by an amount no greater than accrued and unpaid interest on
such Term Loans, any original issue discount or upfront fees
applicable to such Indebtedness and any reasonable fees, premiums
and expenses relating to such refinancing), (B) the stated final
maturity of such Indebtedness shall not be earlier than the
Maturity Date of the Class of Term Loans being refinanced in effect
at the time such Indebtedness is incurred, (C) the weighted
average life to maturity of such Indebtedness (if other than in the
form of revolving loans) shall be no shorter than the remaining
weighted average life to maturity of the Class of Term Loans being
refinanced (and, for purposes of determining the weighted average
life to maturity of such Class of Term Loans being refinanced, the
effects of any prepayments made prior to the date of the
determination shall be disregarded), (D) in the case of Permitted
Pari Passu Secured Indebtedness (and only if, after giving effect
to any substantially concurrent refinancing of Term Loans, any
Tranche B Term Loans shall remain outstanding), the Weighted
Average Yield, determined as of the date of incurrence of such
Indebtedness, shall not be greater than the Weighted Average Yield
with respect to the Tranche B Term Loans, determined as of such
date (giving effect to any amendments to the Weighted Average Yield
on the Tranche B Term Loans that became effective subsequent to the
Closing Date but prior to such date, but excluding the effect of
any increase in interest margins with respect thereto pursuant to
this clause (D)), plus 0.50% per annum unless the Applicable Rate
(together with, as provided in the proviso below, the Adjusted
Eurodollar Rate and Base Rate floors) with respect to the Tranche B
Term Loans is increased, or fees to Lenders then holding the
Tranche B Term Loans are paid, so as to cause the Weighted Average
Yield with respect to the Tranche B Term Loans to equal the
Weighted Average Yield with respect to such Indebtedness minus
0.50%, provided
that any increase in the effective Weighted Average Yield with
respect to the Tranche B Term Loans due to the application of an
Adjusted Eurodollar Rate or Base Rate floor to such Indebtedness
shall be effected solely through an increase in the Adjusted
Eurodollar Rate or Base Rate floor applicable to the Tranche B Term
Loans and only to the extent an increase in such floor with respect
to the Tranche B Term Loans would cause an increase in the interest
rate then in effect with respect thereto, (E) such Term Loans being
refinanced shall be repaid or prepaid substantially concurrently on
the date such Indebtedness is incurred, (F) such Indebtedness
satisfies the Specified Permitted Indebtedness Documentation
Requirements and (G) the Administrative Agent shall have received a
certificate, dated the date such Indebtedness is incurred and
signed by an Authorized Officer of the Borrower, confirming the
absence of Events of Default as required above and setting forth a
reasonably detailed calculation of compliance with
Section 6.7(a) on a Pro Forma Basis; provided further that such Indebtedness
may be incurred in the form of a bridge or other interim credit
facility intended to be extended, renewed or refinanced with
Long-Term Indebtedness (and such bridge or other interim credit
facility shall be deemed to satisfy clauses (B) and (C) above so
long as (x) such credit facility includes customary
“rollover” provisions that are subject to no conditions
precedent other than (I) the occurrence of the date specified for
the “rollover” and (II) that no payment or bankruptcy
event of default shall have occurred and be continuing and
(y) assuming such credit facility were to be extended pursuant
to such “rollover” provisions, such extended credit
facility would comply with clauses (B) and (C) above); and
(ii) any Refinancing Indebtedness in respect of any
Indebtedness permitted under clause (i) above or under this clause
(ii);

 

 

 

 

 

(j) to the extent
constituting Indebtedness, indemnification obligations (other than
in respect of any Indebtedness) incurred in connection with any
Acquisition or other Investment permitted by Section 6.6 or any
Disposition permitted by Section 6.8;

 

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

 

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

 

(m) Indebtedness of the
Borrower or any other Credit Party in the form of purchase price
adjustments, earnouts, deferred compensation or other similar
arrangements incurred in connection with any Acquisition
consummated prior to the Closing Date or any Acquisition
consummated after the Closing Date that is permitted by Section
6.6; provided that
such Indebtedness is not secured by any Liens on the assets of the
Borrower or any Restricted Subsidiary;

 

(n) Capital Lease
Obligations arising under any Sale/Leaseback Transaction incurred
in compliance with Section 6.9, provided that at the time of
the consummation of such Sale/Leaseback Transaction and after
giving Pro Forma Effect thereto and the use of the proceeds
thereof, (i) the aggregate principal amount of Indebtedness then
outstanding under this clause (n) shall not exceed the greater of
(A) $15,000,000 and (B) 3.0% of Consolidated Total Assets as of the
last day of the then most recently ended Test Period and (ii) the
aggregate principal amount of Indebtedness then outstanding under
this clause (n), together with the aggregate principal amount of
Indebtedness outstanding under Section 6.1(f), shall not
exceed the greater of (A) $35,000,000 and (B) 7.0% of Consolidated
Total Assets as of the last day of the then most recently ended
Test Period;

 

(o) other unsecured
Indebtedness of the Borrower or any Restricted Subsidiary,
provided that at
the time of incurrence of such Indebtedness and after giving Pro
Forma Effect thereto and the use of the proceeds thereof, the
aggregate principal amount of Indebtedness then outstanding under
this clause (o), shall not exceed the greater of (i) $50,000,000
and (ii) 10.0% of Consolidated Total Assets as of the last day of
the then most recently ended Test Period; provided further that the aggregate
principal amount of all Indebtedness outstanding under this clause
(o) incurred by Restricted Subsidiaries that are not Credit
Parties, when aggregated with the aggregate principal amount of all
Indebtedness of Restricted Subsidiaries that are not Credit Parties
outstanding under Section 6.1(g), shall not at any time exceed
$10,000,000;

 

 

 

 

 

(p) unsecured
Indebtedness owed to current or former officers, directors,
employees or consultants of the Borrower or any Restricted
Subsidiary (or their respective estates, heirs, family members,
spouses and former spouses, domestic partners and former domestic
partners or beneficiaries under their respective estates) to
finance the purchase or redemption of Equity Interests in the
Borrower permitted by Section 6.4; provided that the aggregate
principal amount of Indebtedness permitted under this clause (p)
shall not exceed $5,000,000 at any time outstanding;

 

(q) (i) Indebtedness of
the Credit Parties under the New Subordinated Note and Refinancing
Indebtedness in respect thereof, provided that (A) the aggregate
principal amount of Indebtedness under this clause (q)(i) shall not
exceed $10,000,000 and (B) the stated final maturity of such
Indebtedness shall not be earlier than 91 days after the latest
Maturity Date, and such Indebtedness shall not require any
mandatory or scheduled prepayments, repurchases, redemptions or
other repayments of principal thereof prior to such stated final
maturity, and (ii) Indebtedness of the Credit Parties under the
Existing Subordinated Notes and Refinancing Indebtedness in respect
thereof, provided
that (A) the aggregate principal amount of Indebtedness under this
clause (q)(ii) shall not exceed (x) $3,276,175.38 plus (y) all interest on such
Indebtedness paid-in-kind by the addition thereof to the
outstanding principal amount of such Indebtedness after the Closing
Date and (B) such Indebtedness shall not require any mandatory or
scheduled prepayments, repurchases, redemptions or other repayments
of principal thereof (other than regularly scheduled amortization
payments required by the terms of the Existing Subordinated Notes
as in effect on the Closing Date) prior to the stated final
maturity thereof; provided further, in the case of any
Indebtedness under this clause (q), (I) such Indebtedness shall not
be secured by any Liens on any assets of the Borrower or any
Subsidiary, and shall not be Guaranteed by any Person other than
the Credit Parties, (II) in the case of any such Refinancing
Indebtedness, the terms of such Indebtedness (excluding interest
rates (whether fixed or floating), interest margins, benchmark rate
floors, fees, original issue discounts and any “call
protection”) are, when taken as a whole, not more favorable
to the lenders or holders providing such Indebtedness than (x)
those applicable to the New Subordinated Note or the Existing
Subordinated Notes, as applicable, as in effect on the Closing
Date, when taken as a whole, or (y) those applicable under
this Agreement when taken as a whole, provided that a certificate of
an Authorized Officer of the Borrower delivered to the
Administrative Agent (with the Administrative Agent agreeing to
provide a copy thereof, together with any drafts referred to below,
to the Lenders promptly upon receipt) at least five Business Days
prior to the incurrence of such Refinancing Indebtedness, together
with a reasonably detailed description of the material terms of
such Refinancing Indebtedness or drafts of the documentation
relating thereto, stating that the Borrower has determined in good
faith that such terms satisfy the requirements of this clause (II)
shall be conclusive evidence that such terms satisfy such
requirement unless the Administrative Agent, the Requisite Tranche
A/Revolving Lenders or the Requisite Lenders notify the Borrower in
writing within such five Business Day period that it or they
disagree with such determination (including a reasonable
description of the basis upon which it or they disagree), and (III)
such Indebtedness is subordinated in right of payment to the
Obligations and all Permitted Second Lien Indebtedness, Permitted
Credit Agreement Refinancing Indebtedness and Permitted Incremental
Equivalent Indebtedness (in each case, other than Subordinated
Indebtedness) of the Borrower or any Guarantor Subsidiary, as
applicable, on terms no less favorable to the Secured Parties than
the subordination terms applicable to the New Subordinated Note or
the Existing Subordinated Notes, as applicable, as of the Closing
Date;

 

 

 

 

 

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

 

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

 

For purposes of
determining compliance with this Section 6.1 (subject to the final
sentence of each of the definitions of “Permitted Pari Passu
Secured Indebtedness” and “Permitted Junior Lien
Secured Indebtedness”), (i) in the event that an item of
Indebtedness meets the criteria of more than one of the categories
of Indebtedness described in this Section 6.1, the Borrower shall,
in its sole discretion, classify such item of Indebtedness (or any
portion thereof) and may include the amount and type of such
Indebtedness in one or more of the above clauses, and the Borrower
may later reclassify such item of Indebtedness (or any portion
thereof) and include it in another of such clauses in which it
could have been included at the time it was incurred (but not into
any clause under which it could not have been included at the time
it was incurred); provided that, notwithstanding
the foregoing, the Subordinated Notes and any Refinancing
Indebtedness in respect thereof may only be incurred in reliance on
Section 6.1(q) and may not be reclassified and (ii) for
purposes of assessing whether any Dollar limit set forth in any
clause of this Section 6.1 has been observed in connection with
incurrence of any Indebtedness, any other Indebtedness
contemporaneously incurred pursuant to and in accordance with the
other available clauses of this Section 6.1 that do not require
such other Indebtedness to observe such Dollar limit shall be
disregarded, even if such other Indebtedness is of the same tranche
or series as such Indebtedness being incurred under such Dollar
limit.

 

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

(and, provided, that during the Default Period, the Borrower and
the Restricted Subsidiaries may not, directly or indirectly, incur
or permit to exist any Lien described in clauses (c) (solely with
respect to any extensions, renewals and replacements permitted of
Liens permitted thereby), (d), (e), (f), (g), (h), (k), (l), (o) or
(r) below, in each case other than Liens existing on the Amendment
No. 1 Effective Date and described on Schedule 6.2A
hereto):

 

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

 

(b) Permitted
Encumbrances;

 

(c) any Lien on any
asset of the Borrower or any Restricted Subsidiary existing on the
date hereof and set forth on Schedule 6.2,
and any extensions, renewals and replacements thereof; provided that (i) such
Lien shall not apply to any other asset of the Borrower or any
Restricted Subsidiary, other than to proceeds and products of, and
after-acquired property that is affixed or incorporated into, the
assets covered by such Lien, and (ii) such Lien shall secure
only those obligations that it secures on the date hereof and any
extensions, renewals and refinancings thereof that do not increase
the outstanding principal amount thereof (except by an amount not
greater than accrued and unpaid interest on such obligations and
any reasonable fees, premiums and expenses relating to such
extension, renewal or refinancing) and, in the case of any such
obligations constituting Indebtedness, that are permitted under
Section 6.1(d) as Refinancing Indebtedness in respect
thereof;

 

 

 

 

 

(d) Liens on fixed or
capital assets acquired, constructed or improved by the Borrower or
any Restricted Subsidiary; provided that (i) such
Liens secure only Indebtedness outstanding under
Section 6.1(f) and obligations relating thereto not
constituting Indebtedness and (ii) such Liens shall not apply
to any other asset of the Borrower or any Restricted Subsidiary,
other than to proceeds and products of, and after-acquired property
that is affixed or incorporated into, the assets covered by such
Liens; provided
further that
individual financings of equipment or other fixed or capital assets
otherwise permitted to be secured hereunder provided by any Person
(or its Affiliates) may be cross-collateralized to other such
financings provided by such Person (or its
Affiliates);

 

(e) any Lien existing
on any asset prior to the acquisition thereof by the Borrower or
any Subsidiary or existing on any asset of any Person that becomes
(other than as a result of a redesignation of an Unrestricted
Subsidiary) a Restricted Subsidiary (or of any Person not
previously a Subsidiary that is merged or consolidated with or into
a Restricted Subsidiary in a transaction permitted hereunder) after
the date hereof prior to the time such Person becomes a Restricted
Subsidiary (or is so merged or consolidated), and any extensions,
renewals and replacements thereof; provided that (i) such
Lien is not created in contemplation of or in connection with such
acquisition or such Person becoming a Restricted Subsidiary (or
such merger or consolidation), (ii) such Lien shall not apply
to any other asset of the Borrower or any Restricted Subsidiary
(other than, in the case of any such merger or consolidation, the
assets of any special purpose merger Restricted Subsidiary that is
a party thereto), other than to proceeds and products of, and
after-acquired property that is affixed or incorporated into, the
assets covered by such Lien or becomes subject to such Lien
pursuant to an after-acquired property clause as in effect on the
date of such acquisition or the date such Person becomes a
Restricted Subsidiary (or is so merged or consolidated), and
(iii) such Lien shall secure only those obligations that it
secures on the date of such acquisition or the date such Person
becomes a Restricted Subsidiary (or is so merged or consolidated),
and any extensions, renewals and refinancings thereof that do not
increase the outstanding principal amount thereof (except by an
amount not greater than accrued and unpaid interest, fees and
premiums (if any) with respect to such original obligations and
reasonable fees and expenses arising from such extension, renewal
or refinancing) and, in the case of any such obligations
constituting Indebtedness, that are permitted under
Section 6.1;

 

(f) Liens on the
Collateral securing Permitted Second Lien Indebtedness and
obligations relating thereto not constituting
Indebtedness;

 

(g) Liens on the
Collateral securing Permitted Incremental Equivalent Indebtedness
and obligations relating thereto not constituting
Indebtedness;

 

(h) Liens on the
Collateral securing Permitted Credit Agreement Refinancing
Indebtedness and obligations relating thereto not constituting
Indebtedness;

 

(i) in connection with
any Disposition permitted under Section 6.8, customary rights
and restrictions contained in agreements relating to such
Disposition pending the completion thereof;

 

 

 

 

 

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

 

(k) any Lien on assets
of any CFC or CFC Holding Company that is not a Designated
Subsidiary; provided
that
(i) such Lien shall not apply to any Collateral (including any
Equity Interests in any Subsidiary that constitute Collateral) or
any other assets of the Borrower or any Restricted Subsidiary that
is not a CFC or CFC Holding Company and (ii) such Lien shall secure
only Indebtedness or
other obligations of such CFC or CFC
Holding Company permitted hereunder;[reserved];

 

(l) Liens solely on any
cash earnest money deposits, escrow arrangements or similar
arrangements made by the Borrower or any Restricted Subsidiary in
connection with any letter of intent or purchase agreement for any
Acquisition or Investment permitted hereunder;

 

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

 

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

 

(o) Liens on fixed or
capital assets subject to any Sale/Leaseback Transaction permitted
under Section 6.9; provided that (i) such Liens
secure only Indebtedness permitted by Section 6.1(n) and
obligations relating thereto not constituting Indebtedness and (ii)
such Liens shall not apply to any other asset of the Borrower or
any Restricted Subsidiary, other than to proceeds and products of,
and after-acquired property that is affixed or incorporated into,
the assets covered by such Liens;

 

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

 

(q) Cash deposits not
to exceed $5,000,000 at any time securing letters of credit, bank
guarantees and similar instruments issued in currencies other than
Dollars; and

 

 

 

 

 

(r) other Liens
securing Indebtedness or other obligations; provided that the aggregate
outstanding amount of Indebtedness and other obligations secured by
Liens permitted by this clause (r) shall not exceed
$25,000,000.

 

6.3. No
Further Negative Pledges. Neither the Borrower nor any Restricted
Subsidiary will, directly or indirectly, enter into, incur or
permit to exist any agreement or other arrangement that prohibits,
restricts or imposes any condition upon the ability of the Borrower
or any Restricted Subsidiary to create, incur or permit to exist
any Lien upon any of its assets, whether now owned or hereafter
acquired, to secure any Obligations; provided that the foregoing
shall not apply to (a) restrictions and conditions imposed by
law or by any Credit Document, (b) restrictions and conditions
existing on the date hereof identified on Schedule 6.3, and amendments,
modifications, extensions and renewals thereof (including any such
extension or renewal arising as a result of an extension, renewal
or refinancing of any Indebtedness containing such restriction or
condition), provided, in each case, that
the scope of any such restriction or condition shall not have been
expanded as a result thereof, (c) in the case of any Restricted
Subsidiary that is not a wholly owned Subsidiary or the Equity
Interests in any Person that is not a Restricted Subsidiary
(including any Unrestricted Subsidiary), restrictions and
conditions imposed by the Organizational Documents of such
Restricted Subsidiary or such other Person or any related joint
venture, shareholders’ or similar agreement, provided, in each case, that
such restrictions and conditions apply only to such Restricted
Subsidiary and to any Equity Interests in such Restricted
Subsidiary or to the Equity Interests in such other Person
(including any Unrestricted Subsidiary), as applicable,
(d) restrictions and conditions imposed by any agreement or
document governing secured Indebtedness permitted by Section 6.1(f)
or 6.1(n) or governing Liens permitted by Section 6.2(d), 6.2(l),
6.2(o), 6.2(p)(i) or 6.2(q) or by clause (c), (d) or (m) of the
definition of “Permitted Encumbrances”, provided that such restrictions
and conditions apply only to the assets securing such Indebtedness
or subject to such Liens, (e) restrictions and conditions
imposed by agreements relating to Indebtedness assumed in reliance
on Section 6.1(g)(i) or Refinancing Indebtedness in respect thereof
incurred in reliance on Section 6.1(g)(ii), provided that such restrictions
and conditions apply only to Persons that are permitted under such
Sections to be obligors in respect of such Indebtedness and are not
less favorable to the Lenders than the restrictions and conditions
imposed by such Indebtedness (or, in the case of any Refinancing
Indebtedness, by the applicable Original Indebtedness) at the time
such Indebtedness first became subject to Section 6.1, (f) in
connection with the sale of any Equity Interests in a Subsidiary or
any other assets, customary restrictions and conditions contained
in agreements relating to such sale pending the completion thereof,
provided that such
restrictions and conditions apply only to the Subsidiary or the
other assets to be sold and such sale is permitted under Section
6.8, (g) restrictions and conditions imposed by any agreement or
document governing Indebtedness of any Restricted Subsidiary that
is not, and is not required to become, a Credit Party hereunder,
provided that such
restrictions and conditions apply only to such Restricted
Subsidiary, (h) restrictions and conditions imposed by customary
provisions in leases, licenses and other agreements restricting the
assignment thereof or, in the case of any lease or license,
permitting to exist any Lien on the assets leased or licensed
thereunder, (i) customary restrictions in respect of Intellectual
Property contained in 
nonexclusive licenses or sublicenses of, or other grants of
rights to use or exploit, such Intellectual Property,
(k) restrictions and conditions contained in any Permitted
Second Lien Indebtedness Document or,
any Permitted Subordinated Indebtedness Document, in each case, as
in effect on the Closing Date and amendments, modifications,
extensions and renewals thereof, provided, in each case, that
the scope of any such restriction or condition shall not have been
expanded as a result thereof, and (l)
restrictions and conditions contained in any agreement or
instrument evidencing or governing any Indebtedness permitted by
Section 6.1(e), 6.1(g) (other than in respect of existing
Indebtedness assumed in reliance thereon), 6.1(h), 6.1(i) or 6.1(o)
to the extent, in the good faith judgment of the Borrower, such
restrictions and conditions are on customary market terms for
Indebtedness of such type and so long as the Borrower has
determined in good faith that such restrictions and conditions
would not reasonably be expected to impair in any material respect
the ability of the Credit Parties to meet their obligations under
the Credit Documents 
and (m) restrictions and conditions contained in any Bridge Credit
Document. Nothing in this Section 6.3 shall be deemed to
modify the requirements set forth in the definition of the term
“Collateral and Guarantee Requirement” or the
obligations of the Credit Parties under Sections 5.10, 5.11 or
5.12 or under the Collateral Documents.

 

 

 

 

 

6.4. Restricted
Junior Payments. Neither the Borrower nor any Restricted Subsidiary
will declare or pay or make, or agree to declare or pay or make,
directly or indirectly, any Restricted Junior Payment, or incur any
obligation (contingent or otherwise) to do so, except
that:

(and, provided, that during the Default Period, the Borrower and
the Restricted Subsidiaries may not declare or pay or make, or
agree to declare or pay or make, directly or indirectly, any
Restricted Junior Payment, or incur any obligation (contingent or
otherwise) to do so under clauses (a), (c), (d), (e), (f), (g),
(h), (i), (j), (k), (l) or (m) below):

 

(a) each of the
Borrower and any Restricted Subsidiary may declare and pay
dividends with respect to its Equity Interests payable solely in
additional Equity Interests in such Person to the extent not
otherwise prohibited hereunder;

 

(b) any Restricted
Subsidiary may declare and pay dividends or make other
distributions with respect to its capital stock, partnership or
membership interests or other similar Equity Interests, and declare
and make other Restricted Junior Payments in respect of its Equity
Interests, in each case ratably to the holders of such Equity
Interests (or, if not ratably, on a basis more favorable to the
Borrower and the Restricted Subsidiaries);

 

(c) the Borrower may
make payments in respect of, or repurchases of its Equity Interests
deemed to occur upon the “cashless exercise” of, stock
options, stock purchase rights, stock exchange rights or other
equity-based awards if such payment or repurchase represents a
portion of the exercise price of such options, rights or awards or
withholding taxes, payroll taxes or other similar taxes due upon
such exercise;

 

(d) the Borrower may
make cash payments in lieu of the issuance of fractional shares
representing Equity Interests in the Borrower in connection with
the exercise of warrants, options or other Securities convertible
into or exchangeable for common stock in the Borrower;

 

(e) the Borrower may
make Restricted Junior Payments in respect of its Equity Interests
pursuant to and in accordance with stock option plans or other
benefit plans or agreements for, or otherwise make Restricted
Junior Payments to redeem, retire, purchase or otherwise acquire
any of its Equity Interests held by, future, present or former
directors, officers, employees or consultants of the Borrower and
the Restricted Subsidiaries; provided that (i) the aggregate
amount of the Restricted Junior Payments made in reliance on this
clause (e) in any Fiscal Year shall not exceed the sum of (A)
$2,000,000 plus (B)
an amount equal to any unutilized portion of such amount in
clause (A) in any preceding Fiscal Year ended after the
Closing Date and (ii) Restricted Junior Payments made in reliance
on this clause (e) during any Fiscal Year shall be deemed to use,
first, the amount set forth in clause (A) above for such Fiscal
Year and, second, any portion of the amount set forth in clause (A)
above for any preceding Fiscal Year that has been carried over to
such Fiscal Year pursuant to clause (B) above;

 

(f) the Borrower and
the Restricted Subsidiaries may make additional Restricted Junior
Payments; provided
that, immediately prior to the making thereof, and immediately
after giving Pro Forma Effect thereto, including to any related
incurrence of Indebtedness, (i) no Event of Default shall have
occurred and be continuing, (ii) the Total Net Leverage Ratio,
determined as of the last day of the then most recently ended Test
Period, shall not exceed 1.15:1.00 and (iii) the Borrower shall be
in compliance with Sections 6.7(a) and, during the Fixed Charge
Coverage Ratio Covenant Period, 6.7(c);

 

 

 

 

 

(g) the Borrower and
the Restricted Subsidiaries may make (i) regularly scheduled
interest and principal payments as and when due in respect of any
Junior Indebtedness, other than payments in respect of Subordinated
Indebtedness prohibited by the subordination provisions thereof,
and (ii) prepayments in respect of any Junior Indebtedness to the
extent required by Section 2.14(c);

 

(h) the Borrower and
the other Credit Parties may refinance any Junior Indebtedness with
the proceeds of other Indebtedness to the extent permitted under
Section 6.1;

 

(i) so long as no
Default or Event of Default shall have occurred and be continuing,
the Borrower and the Restricted Subsidiaries may make other
Restricted Junior Payments; provided that the aggregate
amount of Restricted Junior Payments made in reliance on this
clause (i) since the Closing Date shall not exceed
$1,000,000;

 

(j) the Borrower and
the Restricted Subsidiaries may make additional Restricted Junior
Payments; provided
that (i) immediately prior to the making thereof, and immediately
after giving Pro Forma Effect thereto, including to any related
incurrence of Indebtedness, (A) no Event of Default shall have
occurred and be continuing, (B) the Total Net Leverage Ratio shall
not be greater than the lesser of (x) 1.65:1.00 and (y) the
maximum Total Net Leverage Ratio permitted under the financial
covenant set forth in Section 6.7(a), in each case, determined
as of the last day of the then most recently ended Test Period, and
(C) in the case of any such Restricted Junior Payment made during
the Fixed Charge Coverage Ratio Covenant Period, the Fixed Charge
Coverage Ratio shall not be less than the minimum Fixed Charge
Coverage Ratio permitted under the financial covenant set forth in
Section 6.7(c), determined for the then most recently ended Test
Period, (ii) the amount of any such Restricted Junior Payment
shall not exceed the Available Basket Amount at the time such
Restricted Junior Payment is made and (iii) the Borrower shall
have delivered to the Administrative Agent a certificate of an
Authorized Officer of the Borrower certifying that all the
requirements set forth in this clause (j) have been satisfied with
respect to such Restricted Junior Payment and including reasonably
detailed calculations demonstrating satisfaction of the
requirements set forth in clauses (i)(B), (i)(C) (if applicable)
and (ii) above;

 

(k) any Restricted
Junior Payment arising solely on account of any Permitted Holder
using its Equity Interests in the Borrower to satisfy such
Permitted Holders’ payment obligations under the Acquired
Company Indemnity Letter Agreement;

 

(l) any Restricted
Junior Payment required to be made to consummate the Iqmax
Disposition; and

 

(m) the Borrower may
redeem the Closing Date Preferred Stock solely with the Net
Proceeds received (and not otherwise applied) by the Borrower
substantially concurrently with the making of such redemption from
any issuance and sale of Equity Interests in the Borrower (other
than any Disqualified Equity Interests and other than any Equity
Interests issued or sold to any Subsidiary of the Borrower);
provided that,
immediately prior to the making of such redemption, and immediately
after giving Pro Forma Effect thereto, no Event of Default shall
have occurred and be continuing.

 

 

 

 

 

6.5. Restrictions
on Subsidiary Distributions. Neither the Borrower nor any
Restricted Subsidiary will, directly or indirectly, enter into,
incur or permit to exist any agreement or other arrangement that
prohibits, restricts or imposes any condition upon the ability of
any Restricted Subsidiary (a) to pay dividends or make other
distributions on its Equity Interests owned by the Borrower or any
Restricted Subsidiary, (b) to repay or prepay any Indebtedness
owing by such Restricted Subsidiary to the Borrower or any
Restricted Subsidiary, (c) to make loans or advances to the
Borrower or any Restricted Subsidiary or to Guarantee the
Obligations or (d) to transfer, lease or license any of its assets
to the Borrower or any Restricted Subsidiary; provided that the foregoing
shall not apply to (i) restrictions and conditions imposed by
law or by any Credit Document, (ii) restrictions and
conditions existing on the date hereof identified on Schedule 6.5, and amendments,
modifications, extensions or renewals thereof (including any such
extension or renewal arising as a result of an extension, renewal
or refinancing of any Indebtedness containing such restriction or
condition), provided, in each case, that
the scope of any such restriction or condition shall not have been
expanded as a result thereof, (iii) in the case of any Restricted
Subsidiary that is not a wholly owned Subsidiary of the Borrower
or, in the case of restrictions and conditions referred to in
clause (d) above, the Equity Interests in any Person that is not a
Restricted Subsidiary (including any Unrestricted Subsidiary),
restrictions and conditions imposed by agreements and documents
governing Indebtedness of such Restricted Subsidiary or such Person
or its Organizational Documents or any related joint venture,
shareholders’ or similar agreement, provided that such restrictions
and conditions apply only to such Restricted Subsidiary or, in the
case of restrictions and conditions referred to in clause (d)
above, to any Equity Interests in such Restricted Subsidiary or
such other Person (including any Unrestricted Subsidiary), as
applicable, (iv) in the case of restrictions and conditions
referred to clause in (d) above, restrictions and conditions
imposed by any agreement relating to secured Indebtedness permitted
by Section 6.1(f) or 6.1(n) or governing Liens permitted by
Section 6.2(d), 6.2(l), 6.2(o), 6.2(p)(i) or 6.2(q) or by
clause (c), (d) or (m) of the definition of “Permitted
Encumbrances”, provided that such restrictions
and conditions apply only to the assets securing such Indebtedness
or subject to such Liens, (v) restrictions and conditions imposed
by any agreement or document relating to Indebtedness assumed in
reliance on Section 6.1(g)(i) or Refinancing Indebtedness in
respect thereof incurred in reliance on Section 6.1(g)(ii),
provided that such
restrictions and conditions apply only to Persons that are
permitted under such Section to be obligors in respect of such
Indebtedness and are not less favorable to the Lenders than the
restrictions and conditions imposed by such Indebtedness (or, in
the case of any Refinancing Indebtedness, by the applicable
Original Indebtedness) at the time such Indebtedness first became
subject to Section 6.1, (vi) in connection with the sale of any
Equity Interests in a Subsidiary or any other assets, customary
restrictions and conditions contained in agreements relating to
such sale pending the completion thereof, provided that such restrictions
and conditions apply only to the Subsidiary or the other assets to
be sold and such sale is permitted under Section 6.8, (vii) in the
case of restrictions or conditions referred to in clauses (c) and
(d) above, restrictions and conditions imposed by any agreement or
document governing Indebtedness of any Restricted Subsidiary that
is not, and is not required to become, a Credit Party hereunder,
provided that such
restrictions and conditions apply only to such Restricted
Subsidiary, (viii) in the case of restrictions and conditions
referred to in clause (d) above, restrictions and conditions
imposed by customary provisions in leases, licenses and other
agreements restricting the assignment thereof or, in the case of
any lease or license, permitting to exist any Lien on the assets
leased or licensed thereunder, (ix) restrictions on cash or
deposits or net worth imposed by customers, suppliers or landlords
under agreements entered into in the ordinary course of business,
(x) in the case of restrictions and conditions referred to in
clause (d) above, customary restrictions in respect of Intellectual
Property contained in licenses or sublicenses of, or other grants
of rights to use or exploit, such Intellectual Property,
(xi) restrictions and conditions contained in any Permitted
Second Lien Indebtedness Document or any Permitted Subordinated
Indebtedness Document, in each case, as in effect on the Closing
Date and amendments, modifications, extensions and renewals
thereof, provided,
in each case, that the scope of any such restriction or condition
shall not have been expanded as a result thereof,
(xii) restrictions and conditions contained in any agreement
or instrument evidencing or governing any Indebtedness permitted by
Section 6.1(e), 6.1(g) (other than in respect of existing
Indebtedness assumed in reliance thereon), 6.1(h), 6.1(i) or 6.1(o)
so long as the Borrower has determined in good faith that such
restrictions and conditions would not reasonably be expected to
impair in any material respect the ability of the Credit Parties to
meet their obligations under the Credit Documents, and
(xiii) in the case of restrictions and conditions referred to
in clause (d) above, restrictions and conditions imposed by the
Vector Facility Arrangements on the assignment or transfer by the
Borrower of its rights under the Vector Subordinated Note

and (xiv) restrictions and conditions contained in any Bridge
Credit Document. Nothing in this Section 6.5 shall be deemed
to modify the requirements set forth in the definition of the term
“Collateral and Guarantee Requirement” or the
obligations of the Credit Parties under Sections 5.10, 5.11 or
5.12 or under the Collateral Documents.

 

 

 

 

 

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

(and, provided, that during the Default Period, the Borrower and
the Restricted Subsidiaries may not, purchase or acquire (including
pursuant to any merger or consolidation with any Person that was
not a wholly owned Restricted Subsidiary of the Borrower prior
thereto), hold, make or otherwise permit to exist any Investment in
any other Person, or make any Acquisition, described in clauses (c)
(solely with respect to any Investments by any Credit Parties in,
and loans and advances to, non-Credit Parties), (d) (solely with
respect to any Investments by any Credit Parties in, and loans and
advances to, non-Credit Parties), (e) (solely with respect to any
Guarantees by any Credit Parties of Indebtedness or other
obligations of 
non-Credit Parties), (k) (in excess of $50,000), (l), (m), (n),
(o), (p), (s), (t), (v) or (w) below, in each case other than
Investments existing on the Amendment No. 1 Effective Date and
described on Schedule 6.6A hereto):

 

(a) Investments in Cash
and Cash Equivalents;

 

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

 

(c) Investments by the
Borrower and the Restricted Subsidiaries in Equity Interests in
their Restricted Subsidiaries; provided that (i) such
investees are Restricted Subsidiaries prior to such Investments (or
such Equity Interests in a Restricted Subsidiary are held as the
result of a designation of an Unrestricted Subsidiary as a
Restricted Subsidiary), (ii) any such Equity Interests held by a
Credit Party shall be pledged in accordance with the requirements
of the definition of the term “Collateral and Guarantee
Requirement” and (iii) the aggregate amount of such
Investments by the Credit Parties in, and loans and advances under
clause (d) below by the Credit Parties to, and Guarantees under
clause (e) by the Credit Parties of Indebtedness and other
obligations of, Restricted Subsidiaries that are not Credit Parties
(excluding all such Investments, loans, advances and Guarantees
existing on the date hereof and permitted by clause (b) above)
shall not exceed $20,000,000 at any time outstanding;

 

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

 

(e) Guarantees by the
Borrower or any Restricted Subsidiary of Indebtedness or other
obligations of the Borrower or any Restricted Subsidiary (including
any such Guarantees arising as a result of any such Person being a
joint and several co-applicant with respect to any letter of credit
or letter of guaranty); provided that (i) a Restricted
Subsidiary shall not Guarantee any Junior Indebtedness unless (A)
such Restricted Subsidiary has Guaranteed the Obligations pursuant
hereto and (B) in the case of Junior Indebtedness that is
Subordinated Indebtedness such Guarantee is subordinated to such
Guarantee of the Obligations on terms no less favorable to the
Lenders than the subordination provisions of such Subordinated
Indebtedness, (ii) a Subsidiary that has not Guaranteed the
Obligations pursuant hereto shall not Guarantee any Indebtedness of
any Credit Party and (iii) the aggregate amount of
Indebtedness and other obligations of Subsidiaries that are not
Credit Parties that is Guaranteed by any Credit Party shall be
subject to the limitation set forth in clause (c)
above;

 

 

 

 

 

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

 

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

 

(h) Investments by the
Borrower or any Restricted Subsidiary that result solely from the
receipt by the Borrower or any Restricted Subsidiary from any of
its Subsidiaries of a dividend or other Restricted Junior Payment
in the form of Equity Interests, evidences of Indebtedness or other
Securities (but not any additions thereto made after the date of
the receipt thereof);

 

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

 

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

 

(k) loans or advances
to directors, officers, employees and consultants (or their
respective estates, heirs, family members, spouses and former
spouses, domestic partners and former domestic partners or
beneficiaries under their respective estates) of the Borrower or
any Restricted Subsidiary in connection with such Person’s
purchase of Equity Interests in the Borrower; provided that the aggregate
amount of Investments permitted by this clause (k) (other than any
such loan or advance where no Cash or Cash Equivalent is actually
advanced by the Borrower or any Restricted Subsidiary) shall not
exceed $5,000,000 at any time outstanding;

 

(l) Permitted
Acquisitions; provided that the Acquisition
Consideration with respect to any such Acquisition of Subsidiaries
that do not become Guarantor Subsidiaries, or any Acquisitions by
Subsidiaries that are not Guarantors, shall not cause the aggregate
amount of all Acquisition Consideration paid in connection with all
such Permitted Acquisitions made in each case in reliance on this
clause (l) to exceed $5,000,000;

 

(m) any other
Acquisition or other Investment (other than Investments between or
among the Borrower or the Restricted Subsidiaries); provided that, immediately
prior to the consummation thereof, and immediately after giving Pro
Forma Effect thereto, including to any related incurrence of
Indebtedness, (i) no Event of Default shall have occurred and be
continuing, (ii) the Total Net Leverage Ratio shall not be
greater than the lesser of (A) 1.90:1.00 and (B) the maximum Total
Net Leverage Ratio permitted under the financial covenant set forth
in Section 6.7(a), in each case, determined as of the last day of
the then most recently ended Test Period, and (iii) in the
case of any such Acquisition or Investment consummated during the
Fixed Charge Coverage Ratio Covenant Period, the Fixed Charge
Coverage Ratio shall not be less than the minimum Fixed Charge
Coverage Ratio permitted under the financial covenant set forth in
Section 6.7(c), determined for the then most recently ended Test
Period; provided
further that, in
the case of any Limited Conditionality Transaction, at the option
of the Borrower, the conditions set forth in clauses (i), (ii) and
(iii) above may be tested in accordance with
Section 1.5;

 

 

 

 

 

(n) any other
Acquisition or other Investment; provided that (i) immediately
prior to the consummation thereof, and immediately after giving Pro
Forma Effect thereto, including to any related incurrence of
Indebtedness, (A) no Event of Default shall have occurred and be
continuing, (B) the Total Net Leverage Ratio shall not be greater
than the lesser of (x) 2.15:1.00 and (y) the maximum Total Net
Leverage Ratio permitted under the financial covenant set forth in
Section 6.7(a), in each case, determined as of the last day of
the then most recently ended Test Period, and (C) in the case of
any such Acquisition or Investment consummated during the Fixed
Charge Coverage Ratio Covenant Period, the Fixed Charge Coverage
Ratio shall not be less than the minimum Fixed Charge Coverage
Ratio permitted under the financial covenant set forth in Section
6.7(c), determined for the then most recently ended Test Period,
(ii) the Acquisition Consideration with respect to any such
Acquisition or the amount of any such other Investment, in each
case made in reliance on this clause (n), shall not exceed the
Available Basket Amount at the time of the consummation thereof and
(iii) the Borrower shall have delivered to the Administrative
Agent a certificate of an Authorized Officer of the Borrower
certifying that all the requirements set forth in this clause (n)
have been satisfied with respect to such Investment or Acquisition
and including reasonably detailed calculations demonstrating
satisfaction of the requirements set forth in clauses (i) and (ii)
above; provided
further that, in
the case of any Limited Conditionality Transaction, at the option
of the Borrower, the condition set forth in clause (i) above may be
tested in accordance with Section 1.5;

 

(o) Investments not
constituting Acquisitions; provided that the amount of any
such Investment made in any Fiscal Year and outstanding in reliance
on this clause (o) shall not cause the aggregate amount of all
Investments made in such Fiscal Year and outstanding in reliance on
this clause (o) to exceed for such Fiscal Year the sum of
(i) $1,000,000 plus (ii) an amount equal to
any unutilized portion of such amount in clause (i) in respect of
any preceding Fiscal Year ended after the Closing Date;
provided
further that (A)
the aggregate amount of Investments permitted by this
clause (o) shall not exceed $5,000,000 at any time outstanding
and (B) Investments made in reliance on this clause (o) during any
Fiscal Year shall be deemed to use, first, the amount set forth in
clause (i) above for such Fiscal Year and, second, any portion
of the amount set forth in clause (i) above for any preceding
Fiscal Year that has been carried over to such Fiscal Year pursuant
to clause (ii) above;

 

(p) Investments
(i) by the
Borrower or any other Credit Party in any Restricted Subsidiary
that is not a Credit Party to the extent made with Cash or Cash
Equivalents necessary to fund an Acquisition permitted hereunder
or (ii)
consisting of the transfer or contribution to any CFC or CFC
Holding Company of Equity Interests in any other CFC or CFC Holding
Company or exchange of Indebtedness owing by any CFC or CFC Holding
Company for Indebtedness, in a like amount, owing by another CFC or
CFC Holding Company;;

 

(q) Investments in the
ordinary course of business consisting of (i) endorsements for
collection or deposit and (ii) customary trade arrangements
with customers;

 

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

 

 

 

 

 

(s) Investments held by
a Person that becomes (other than as a result of a redesignation of
an Unrestricted Subsidiary) a Restricted Subsidiary (or of any
Person not previously a Subsidiary that is merged or consolidated
with or into the Borrower or a Restricted Subsidiary in a
transaction permitted hereunder) after the Closing Date,
provided that such
Investments exist at the time such Person becomes a Restricted
Subsidiary (or is so merged or consolidated) and are not made in
contemplation of or in connection with such Person becoming a
Restricted Subsidiary (or such merger or
consolidation);

 

(t) Investments held by
any Unrestricted Subsidiary at the time such Unrestricted
Subsidiary is redesignated as a Restricted Subsidiary pursuant to
the definition of the term “Unrestricted Subsidiary”,
provided that such
Investments have not been made in contemplation of or in connection
with such redesignation;

 

(u) the
Merger;

 

(v) any other
Acquisition or other Investment to the extent consideration
therefor is made with Equity Interests, or with the Net Proceeds
received (and not otherwise applied) by the Borrower within 120
consecutive days prior to the date of consummation of such
Acquisition or Investment from any issuance and sale of Equity
Interests, in each case, in the Borrower (other than any
Disqualified Equity Interests, unless the issuance of such
Disqualified Equity Interests is otherwise permitted hereunder, and
other than any Equity Interests issued or sold to any Subsidiary of
the Borrower);

 

(w) any other
Acquisition or other Investment consummated on or prior to
December 31, 2018; provided that (i) immediately
prior to the consummation thereof, and immediately after giving Pro
Forma Effect thereto, including to any related incurrence of
Indebtedness, (A) no Event of Default shall have occurred and be
continuing and (B) the Total Leverage Ratio shall not be greater
than 3.65:1.00, determined as of the last day of the then most
recently ended Test Period, (ii) the Acquisition Consideration with
respect to any such Acquisition or the amount of any such other
Investment shall not cause the aggregate amount of all Acquisition
Consideration paid in connection with all Acquisitions made,
together with the aggregate amount of all Investments outstanding,
in each case in reliance on this clause (w), to exceed $75,000,000,
(iii) no Acquisition of, or Investment in, Subsidiaries that
do not become Guarantor Subsidiaries, and no acquisition of assets
by any Restricted Subsidiary that is not a Guarantor Subsidiary,
may be made in reliance on this clause (w), (iv) all actions
required to be taken with respect to any Person or assets acquired
pursuant to such Acquisition or other Investment, as the case may
be, in order to satisfy the requirements set forth in clauses (a),
(b), (c) and (d) of the definition of the term “Collateral
and Guarantee Requirement” (subject to the discretion of the
Collateral Agent set forth in such definition) shall have been
taken (or arrangements for the taking of such actions satisfactory
to the Collateral Agent shall have been made) (it being understood
that all other requirements set forth in such definition that are
applicable to such Acquisition or Investment shall be required to
be satisfied in accordance with (and within the time periods
provided in) Sections 5.10 and 5.11) and (v) the Borrower shall
have delivered to the Administrative Agent a certificate of an
Authorized Officer of the Borrower certifying that all the
requirements set forth in this clause (w) have been satisfied with
respect to such Acquisition or Investment and including reasonably
detailed calculations demonstrating satisfaction of the
requirements set forth in clause (i) above; provided further that, in the case of
any Limited Conditionality Transaction, at the option of the
Borrower, the condition set forth in clause (i) above may be tested
in accordance with Section 1.5; and

 

 

 

 

 

(x) Investments made by
the Borrower on the Closing Date in the Vector Subordinated
Note.

 

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

 

6.7. Financial
Covenants. Total Net
Leverage Ratio. The Borrower will not permit the Total Net
Leverage Ratio, as of the last day of any Fiscal Quarter, beginning
with the Fiscal Quarter ending June 30, 2018, to exceed the
correlative ratio set forth below:

 

	
Fiscal
Quarter Ending

 

	
Total
Net Leverage Ratio

 

	
June 30, 2018 and
September 30, 2018

	
5.00:1.00

 

	
December 31,
2018

	
4.50:1.00

	
March 31, 2019
through December 31, 2019

	
4.00:1.00

	
March 31, 2020
through December 31, 2020

	
3.50:1.00

	
March 31, 2021 and
thereafter

	
3.00:1.00

 

(a) Capital Expenditures. The
Borrower will not permit Consolidated Capital Expenditures in any
Fiscal Year to exceed in the aggregate an amount equal to the
greater of (i) $55,000,000 (such amount for any Fiscal Year
being referred to as the “Base CapEx Amount” for such Fiscal
Year) and (ii) if the Borrower or any Restricted Subsidiary shall
have consummated any Material Acquisition (excluding the Merger)
after the Closing Date, the Material Acquisition CapEx Amount for
such Fiscal Year (determined as of the date of consummation of the
Material Acquisition most recently consummated after the Closing
Date and on or prior to the last day of such Fiscal Year);
provided that
(A) commencing with the Fiscal Year ending on
December 31, 2018, the portion of the Base CapEx Amount for
any Fiscal Year that has not been expended to make Consolidated
Capital Expenditures during such Fiscal Year (but not in excess of
50% of the Base CapEx Amount for such Fiscal Year) may be carried
over for expenditure in the immediately following Fiscal Year and
(B) Consolidated Capital Expenditures made during any Fiscal
Year shall be deemed to use, first, the Base CapEx Amount for such
Fiscal Year and, second, any portion of the Base CapEx Amount for
the immediately preceding Fiscal Year that has been carried over to
such Fiscal Year pursuant to clause (A) above.

 

For purposes of the
foregoing:

 

“Material Acquisition CapEx Amount”
means, as of any date of determination for any Fiscal Year, an
amount equal to 10% of the consolidated revenues of the Borrower
and the Restricted Subsidiaries for the most recent period of 12
consecutive months prior to the consummation of the Material
Acquisition (other than the Merger) most recently consummated for
which financial statements are available as of such date of
determination, determined on a Pro Forma Basis to give effect to
such Material Acquisition (and each other Material Acquisition that
shall have been consummated during such period).

 

 

 

 

 

(b) Fixed Charge Coverage Ratio.
The Borrower will not permit the Fixed Charge Coverage Ratio, as of
the last day of any period of four consecutive Fiscal Quarters,
beginning with the period of four consecutive Fiscal Quarters
ending June 30, 2018, to be less than the correlative ratio set
forth below:

 

	
Four
Fiscal Quarter Period Ending

 

	
Fixed
Charge

Coverage
Ratio

 

	
June 30, 2018
through December 31, 2020

	
1.00:1.00

 

	
March 31, 2021 and
thereafter

	
1.25:1.00

 

 

; provided that the provisions of
this Section 6.7(c), and the obligation of the Borrower to comply
with the Fixed Charge Coverage Ratio Covenant, shall automatically
cease to be in effect upon the termination of the Fixed Charge
Coverage Ratio Covenant Period.

 

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

 

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

 

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

 

(iii) any Restricted
Subsidiary may merge or consolidate with or into any Person (other
than the Borrower) in a transaction permitted under
Section 6.8(b) in which, after giving effect to such
transaction, the surviving Person is not a Subsidiary, except to
the extent such transaction constitutes an Investment in a
Restricted Subsidiary that is not a Credit Party permitted by
Section 6.6;

 

(iv) any Restricted
Subsidiary may liquidate or dissolve if the Borrower determines in
good faith that such liquidation or dissolution is in the best
interests of the Borrower and is not disadvantageous to the Lenders
in any material respect;

 

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

 

(vi) the Merger may be
consummated;

 

provided that, in the case of
clauses (i), (ii) and (iii) above, any such merger or consolidation
shall not be permitted unless it, and each Investment resulting
therefrom, is also permitted under Section 6.6 
and during the Default Period, no transaction described in any of
the foregoing clauses (i) through (v) shall be
permitted.

 

 

 

 

 

(c) Neither the
Borrower nor any Restricted Subsidiary will Dispose of, or
exclusively license, any asset, including any Equity Interest,
owned by it, except 
(and, provided, that during the Default Period, the Borrower and
the Restricted Subsidiaries may not, Dispose of, or exclusively
license, any asset, including any Equity Interest, owned by it
pursuant to clauses (v) or (ix)):

 

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

 

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

 

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

 

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

 

(v) Dispositions of
Equity Interests in, or Indebtedness or other Securities of, any
Unrestricted Subsidiary, provided that all Dispositions
made in reliance on this clause (v) shall be made for fair value
(as determined reasonably and in good faith by the
Borrower);

 

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

 

(vii) Dispositions of
assets in any Insurance/Condemnation Event;

 

(viii) to the extent
constituting Dispositions, Restricted Junior Payments made in
compliance with Section 6.4;

 

(ix) other Dispositions
of assets that are not permitted by any other clause of this
Section 6.8(b); provided that (A) all
Dispositions made in reliance on this clause (ix) shall be made for
fair value and at least 75% Cash consideration, (B) the Net
Proceeds thereof shall be applied as required by Section 2.13
and (C) no Default or Event of Default shall have occurred and be
continuing at the time such Disposition is made or would result
therefrom; and

 

(x) the Iqmax
Disposition.

 

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

 

 

 

 

 

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

 

6.9. Sales
and Leasebacks. Neither the Borrower nor any Restricted Subsidiary
will enter into any Sale/Leaseback Transaction unless,
except during the Default Period, (a) any Capital Lease
Obligations arising in connection therewith are permitted under
Section 6.1(n) and (b) any Liens arising in connection
therewith (including Liens deemed to arise in connection with any
such Capital Lease Obligations) are permitted under
Section 6.2(o).

 

6.10. Transactions
with Affiliates. Neither the Borrower nor any Restricted Subsidiary
will, directly or indirectly, enter into or permit to exist any
transaction (including the purchase, sale, lease or exchange of any
property or the rendering of any service) with any Affiliate of the
Borrower or such Restricted Subsidiary on terms that are less
favorable to the Borrower or such Restricted Subsidiary, as the
case may be, than those that would prevail in an arm’s-length
transaction with unrelated third parties; provided that the foregoing
restriction shall not apply to (a) transactions between or among
the Credit Parties not involving any other Affiliate, (b) any
Restricted Junior Payment permitted under Section 6.4, (c)
issuances by the Borrower of Equity Interests (other than
Disqualified Equity Interests) and receipt by the Borrower of
capital contributions, (d) compensation and indemnification
arrangements for directors, officers, employees and consultants of
the Borrower or any Restricted Subsidiary entered into in the
ordinary course of business (including, for the avoidance of doubt,
grants of stock options, stock purchase rights, stock exchange
rights or other equity-based awards to directors, employees and
officers and any “key-man” insurance policy maintained
by a Credit Party), (e) loans and advances permitted under Section
6.6(j) or 6.6(k), (f) the Transactions and the payment of fees and
expenses in connection with the consummation of the Transactions,
(g) the Acquired Company Indemnity Letter Agreement and
(h) the transactions set forth on Schedule 6.10 (without
giving effect to any amendment, restatement, supplement or other
modification thereto after the Closing Date that could reasonably
be expected to be adverse in any material respect to the
Lenders).

 

6.11. Conduct
of Business. Neither the Borrower nor any Restricted Subsidiary
will engage in any business other than the businesses engaged in by
the Borrower and the Restricted Subsidiaries on the Closing Date
(for the avoidance of doubt, after giving effect to the
distribution of the Consumer/SMB Business as contemplated by
Section 3.1(m) and the consummation of the Fusion Global
Arrangement as contemplated by Section 3.1(n)), provided that the Borrower and
the Restricted Subsidiaries shall be permitted to engage in any
business that is similar, complementary or related to, or a
reasonable extension of, the business engaged in by the Borrower
and the Restricted Subsidiaries on the Closing Date (giving effect
to the foregoing parenthetical).

 

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

 

 

 

 

 

6.13. Amendments
or Waivers of Organizational Documents and Certain Agreements.
Neither the Borrower nor any Restricted Subsidiary will agree to
any amendment, restatement, supplement or other modification to, or
waiver of any of its rights under, (a) its Organizational Document,
(b) any certificate of designation or other agreement or instrument
governing or evidencing the Closing Date Preferred Stock or (c) any
agreement or instrument governing or evidencing Junior
Indebtedness, in each case, to the extent such amendment,
modification or waiver could reasonably be expected to be adverse
in any material respect to the Lenders, it being understood that
any Junior Indebtedness may be modified to permit any extension or
refinancing thereof to the extent otherwise permitted by this
Agreement.

 

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

 

SECTION
7. GUARANTEE

 

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

 

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

 

(a) The Guarantor
Subsidiaries desire to allocate among themselves, in a fair and
equitable manner, their obligations arising under this Section 7
and under the Collateral Documents. Accordingly, in the event any
payment or distribution is made on any date by a Guarantor
Subsidiary under its Obligations Guarantee such that its Aggregate
Payments exceed its Fair Share as of such date (such Guarantor
Subsidiary being referred to as a “Claiming Guarantor”) and the
Borrower does not indemnify such Claiming Guarantor in accordance
with Section 7.2(a), such Claiming Guarantor shall be entitled to a
contribution from each other Guarantor Subsidiary in an amount
sufficient to cause each Guarantor Subsidiary’s Aggregate
Payments to equal its Fair Share as of such date (and for all
purposes of this Section 7.2(b), any sale or other
dispositions of Collateral of a Guarantor Subsidiary pursuant to an
exercise of remedies under any Collateral Document shall be deemed
to be a payment by such Guarantor Subsidiary under its Obligations
Guarantee in an amount equal to the fair market value of such
Collateral, less any amount of the proceeds of such sale or other
dispositions returned to such Guarantor Subsidiary).
“Fair Share”
means, with respect to any Guarantor Subsidiary as of any date of
determination, an amount equal to (i) the ratio of (A) the
Fair Share Contribution Amount with respect to such Guarantor
Subsidiary to (B) the aggregate of the Fair Share Contribution
Amounts with respect to all Guarantor Subsidiaries multiplied by (ii) the
aggregate amount paid or distributed on or before such date by all
Claiming Guarantors under their Obligations Guarantees.
“Fair Share Contribution
Amount” means, with respect to any Guarantor
Subsidiary as of any date of determination, the maximum aggregate
amount of the obligations of such Guarantor Subsidiary under its
Obligations Guarantee that would not render its obligations
thereunder subject to avoidance as a preference, fraudulent
transfer or conveyance or transfer at undervalue under Section 548
of the Bankruptcy Code or any comparable applicable provisions of
state or foreign law; provided that solely for
purposes of calculating the “Fair Share Contribution
Amount” with respect to any Guarantor Subsidiary for purposes
of this Section 7.2(b), any assets or liabilities of such
Guarantor Subsidiary arising by virtue of any rights to
subrogation, reimbursement or indemnification or any rights to or
obligations of contribution under this Section 7 shall not be
considered as assets or liabilities of such Guarantor Subsidiary.
“Aggregate
Payments” means, with respect to any Guarantor
Subsidiary as of any date of determination, an amount equal to
(A) the aggregate amount of all payments and distributions
made on or before such date by such Guarantor Subsidiary in respect
of its Obligations Guarantee (including any payments and
distributions made under this Section 7.2(b)), minus (B) the aggregate
amount of all payments received on or before such date by such
Guarantor Subsidiary from the Borrower pursuant to
Section 7.2(a) or the other Guarantor Subsidiaries pursuant to
this Section 7.2(b). The amounts payable under this
Section 7.2(b) shall be determined as of the date on which the
related payment or distribution is made by the applicable Claiming
Guarantor. The allocation among Guarantor Subsidiaries of their
obligations as set forth in this Section 7.2(b) shall not be
construed in any way to limit the liability of any Guarantor
Subsidiary hereunder or under any Collateral Document.

 

 

 

 

 

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

 

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

 

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

 

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

 

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

 

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

 

 

 

 

 

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

 

 

 

 

 

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

 

7.5. Guarantors’
Rights of Subrogation, Contribution, Etc. Until the Obligations
shall have been indefeasibly paid in full in Cash, the Commitments
shall have terminated and all Letters of Credit shall have expired
with no pending drawings or been cancelled, each Guarantor hereby
waives any claim, right or remedy, direct or indirect, that such
Guarantor now has or may hereafter have against the Borrower or any
other Guarantor or any of its assets in connection with its
Obligations Guarantee or the performance by such Guarantor of its
obligations thereunder, in each case whether such claim, right or
remedy arises in equity, under contract, by statute, under common
law or otherwise and including (a) any right of subrogation,
reimbursement or indemnity that such Guarantor now has or may
hereafter have against the Borrower with respect to the
Obligations, including any such right of indemnity under Section
7.2(a), (b) any right to enforce, or to participate in, any
claim, right or remedy that any Secured Party now has or may
hereafter have against the Borrower, and (c) any benefit of, and
any right to participate in, any collateral or security now or
hereafter held by or for the benefit of any Secured Party. In
addition, until the Obligations shall have been indefeasibly paid
in full in Cash, the Commitments shall have terminated and all
Letters of Credit shall have expired with no pending drawings or
been cancelled, each Guarantor shall withhold exercise of any right
of contribution such Guarantor may have against any other guarantor
(including any other Guarantor) of the Obligations, including any
such right of contribution under Section 7.2(b). Each Guarantor
further agrees that, to the extent the waiver or agreement to
withhold the exercise of its rights of subrogation, reimbursement,
indemnity and contribution as set forth herein is found by a court
of competent jurisdiction to be void or voidable for any reason,
any rights of subrogation, reimbursement or indemnity such
Guarantor may have against the Borrower or against any collateral
or security, and any rights of contribution such Guarantor may have
against any such other Guarantor, shall be junior and subordinate
to any rights any Secured Party may have against the Borrower or
any other Guarantor, to all right, title and interest any Secured
Party may have in any such collateral or security, and to any right
any Secured Party may have against such other Guarantor. If any
amount shall be paid to any Guarantor on account of any such
subrogation, reimbursement, indemnity or contribution rights at any
time when all Obligations shall not have been indefeasibly paid in
full in Cash, all Commitments not having terminated and all Letters
of Credit not having expired or been cancelled, such amount shall
be held in trust for the Administrative Agent, for the benefit of
the Secured Parties, and shall forthwith be paid over to the
Administrative Agent, for the benefit of Secured Parties, to be
credited and applied against the Obligations, whether matured or
unmatured, in accordance with the terms hereof.

 

 

 

 

 

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

 

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

 

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

 

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

 

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

 

 

 

 

 

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

 

7.10. Keepwell.
Each Qualified ECP Guarantor hereby jointly and severally
absolutely, unconditionally and irrevocably undertakes to provide
such funds or other support as may be needed from time to time by
any other Guarantor to honor all of such Guarantor’s
obligations under this Obligations Guarantee or any other Credit
Document in respect of Swap Obligations, provided that each Qualified
ECP Guarantor shall only be liable under this Section 7.10 for the
maximum amount of such liability that can be incurred without
rendering its obligations under this Section 7.10, or otherwise
under this Obligations Guarantee, as it relates to such Guarantor,
voidable under applicable law relating to preferences, fraudulent
conveyance or fraudulent transfer, transfer at undervalue, and not
for any greater amount. The obligations of each Qualified ECP
Guarantor under this Section 7.10 shall remain in full force and
effect until the Obligations shall have been indefeasibly paid in
full, the Commitments shall have terminated and all Letters of
Credit shall have expired with no pending drawings or been
cancelled. Each Qualified ECP Guarantor intends that this Section
7.10 constitute, and this Section 7.10 shall be deemed to
constitute, a “keepwell, support, or other agreement”
for the benefit of each other Guarantor for all purposes of Section
1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

SECTION
8. EVENTS
OF DEFAULT

 

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

 

(a) Failure to Make Payments When
Due. Failure by the Borrower (i) to pay, when due, any
principal of any Loan, whether at stated maturity, by acceleration,
by notice of voluntary prepayment, by mandatory prepayment or
otherwise, (ii) to pay, when due, any amount payable to the
applicable Issuing Bank in reimbursement of any drawing under any
Letter of Credit or to deposit, when due, any Cash Collateral
required pursuant to Section 2.13(f) or 2.21 or (iii) to pay,
within five Business Days after the date due, any interest on any
Loan or any fee or any other amount due hereunder;

 

(b) Default in Other Agreements.
(i) Failure by the Borrower or any Restricted Subsidiary, after the
expiration of any applicable grace period, to make any payment that
shall have become due and payable (whether of principal, interest
or otherwise) in respect of any Material Indebtedness, or (ii) any
condition or event shall occur that results in any Material
Indebtedness becoming due, or being required to be prepaid,
repurchased, redeemed or defeased, prior to its stated maturity or,
in the case of any Hedge Agreement, being terminated, or that
enables or permits the holder or holders of any Material
Indebtedness or any trustee or agent on its or their behalf, or, in
the case of any Hedge Agreement, the applicable counterparty, with
or without the giving of notice but only after the expiration of
any applicable grace period, to cause such Material Indebtedness to
become due, or to require the prepayment, repurchase, redemption or
defeasance thereof, prior to its stated maturity or, in the case of
any Hedge Agreement, to cause the termination thereof; provided that this
clause (b) shall not apply to (A) any secured
Indebtedness becoming due as a result of the voluntary sale or
transfer of the assets securing such Indebtedness; (B) any
Indebtedness becoming due as a result of a voluntary refinancing
thereof permitted under Section 6.1; or (C) any Indebtedness
becoming due as a result of a voluntary (or, to the extent
permitted by Section 2.14(c) or, in the case of Permitted Pari
Passu Secured Indebtedness, Sections 2.13(a), 2.13(b) and 2.13(e),
mandatory) prepayment, repurchase, redemption or defeasance thereof
permitted hereunder;

 

 

 

 

 

(c) Breach of Certain Covenants.
Failure of any Credit Party to perform or comply with any term or
condition contained in Section 2.5, 5.1(e)(i), 5.2 (with respect to
the Borrower only), 5.14, 5.16 or 6, provided that any failure to
comply with Section 6.7(c) will not constitute a Default or an
Event of Default with respect to the Tranche B Term Loans unless
and until the Administrative Agent at the request of (or with the
consent of) the Requisite Tranche A/Revolving Lenders shall have
declared the Tranche A Term Loans and/or the Revolving Loans to be
due and payable and/or the Revolving Commitments to be
terminated;

 

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

 

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

 

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

 

 

 

 

 

(g) Voluntary Bankruptcy; Appointment of
Receiver, Etc. The Borrower or any Restricted Subsidiary
that is
a Material Subsidiary shall have an order for relief entered
with respect to it or shall commence a voluntary case under any
Debtor Relief Laws, or shall consent to the entry of an order for
relief in an involuntary case, or to the conversion of an
involuntary case to a voluntary case, under any Debtor Relief Laws,
or shall consent to the appointment of or taking possession by an
interim receiver, receiver, liquidator, sequestrator, trustee,
custodian or other officer having similar powers over the Borrower
or any Restricted Subsidiary that is a Material
Subsidiary, or over all or a substantial part of its
property (other than any liquidation permitted by
Section 6.8(a)(iv)); or the Borrower or any other Restricted
Subsidiary that is a Material
Subsidiary shall make any general assignment for the benefit
of creditors; or the Borrower or any Restricted Subsidiary
that is
a Material Subsidiary shall be unable, or shall fail
generally, or shall admit in writing its inability, to pay its
debts as such debts become due; or the board of directors (or
similar governing body) of the Borrower or any Restricted
Subsidiary that is a Material
Subsidiary (or any committee thereof) shall adopt any
resolution or otherwise authorize any action to approve any of the
actions referred to in this Section 8.1(g) or in
Section 8.1(f);

 

(h) Judgments and Attachments. One
or more judgments for the payment of money in an aggregate amount
of $10,000,000 or more (other than any such judgment covered by
insurance (other than under a self-insurance program) provided by a
financially sound insurer to the extent a claim therefor has been
made in writing and liability therefor has not been denied in
writing by the insurer), shall be rendered against the Borrower,
any Restricted Subsidiary or any combination thereof and the same
shall remain undischarged for a period of 60 consecutive days
during which execution shall not be effectively stayed, or any
action shall be legally taken by a judgment creditor to attach or
levy upon any assets of the Borrower or any Restricted Subsidiary
to enforce any such judgment;

 

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

 

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

 

(k) Obligations Guarantees, Collateral
Documents and other Credit Documents. Any Obligations
Guarantee (other than any
Obligations Guarantee by any Restricted Subsidiary that is not a
Material Subsidiary) purported to be created under the
Credit Documents for any reason shall cease to be, or shall be
asserted by any Credit Party not to be, in full force and effect
(other than in accordance with its terms), or shall be declared to
be null and void; any Lien purported to be created under any
Collateral Document shall cease to be, or shall be asserted by any
Credit Party not to be, a valid and perfected Lien on any material
Collateral, with the priority required by the applicable Collateral
Document, except as a result of (i) a Disposition of the applicable
Collateral in a transaction permitted under the Credit Documents,
(ii) the release thereof as provided in Section 9.8(d) or
(iii) the Collateral Agent’s failure to maintain possession
of any stock certificate, promissory note or other instrument
delivered to it under the Collateral Documents; or this Agreement
or any Collateral Document shall cease to be in full force and
effect (other than in accordance with its terms), or shall be
declared null and void, or any Credit Party shall contest the
validity or enforceability of any Credit Document or deny that it
has any further liability, including with respect to future
advances by Lenders, under any Credit Document to which it is a
party (other than in accordance with its terms);

 

 

 

 

 

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

 

(m) Certain Subordination
Agreements. (i) Any Credit Party or any holder of Permitted
Subordinated Indebtedness shall knowingly contest, or knowingly
support another Person in any action that seeks to contest, the
validity or effectiveness of the subordination of any Permitted
Subordinated Indebtedness to the Obligations on the terms required
under this Agreement or (ii) any agreement (including any
subordination provisions set forth in the Permitted Subordinated
Indebtedness Documents) providing for subordination of any
Permitted Subordinated Indebtedness to the Obligations shall, in
whole or in part, terminate, cease to be effective or cease to be
legally valid, binding and enforceable against any Credit Party or
any holder of such Permitted Subordinated
Indebtedness;

 

THEN, (i) upon the occurrence of any
Event of Default described in Section 8.1(f) or 8.1(g),
automatically, and (ii) upon (A) the occurrence and during the
continuance of any other Event of Default and (B) notice to the
Borrower by the Administrative Agent provided at the request of (or
with the consent of) the Requisite Lenders (or, with respect to the
Tranche A Term Loans, the Revolving Exposure and/or the Revolving
Commitments only, at the request of (or with the consent of) the
Requisite Tranche A/Revolving Lenders, in the case of an Event
of Default arising from any failure to comply with Section 6.7(c)),
which notice may be given with respect to all or any of the
following actions, at the same or different times, (1) the
Commitments and the obligation of each Issuing Bank to issue any
Letter of Credit shall immediately terminate, (2) the unpaid
principal amount of and accrued interest on the Loans and all other
Obligations (other than the Specified Hedge Obligations and the
Specified Cash Management Services Obligations) shall immediately
become due and payable, and the Borrower shall immediately be
required to deposit Cash Collateral in respect of Letter of Credit
Usage in accordance with Section 2.3(h), in each case without
presentment, demand, protest or other requirement of any kind, all
of which are hereby expressly waived by each Credit Party, and (3)
the Administrative Agent may cause the Collateral Agent to enforce
any and all Liens created pursuant to the Collateral
Documents.

 

SECTION
9. AGENTS

 

9.1. Appointment
of Agents. Wilmington Trust is hereby appointed Administrative
Agent and Collateral Agent hereunder and under the other Credit
Documents, and each Lender and Issuing Bank hereby authorizes
Wilmington Trust to act as the Administrative Agent and the
Collateral Agent in accordance with the terms hereof and of the
other Credit Documents. Each such Agent hereby agrees to act in its
capacity as such upon the express conditions contained herein and
in the other Credit Documents, as applicable. Other than
Sections 9.7 and 9.8(d), the provisions of this Section 9 are
solely for the benefit of the Agents, the Lenders and the Issuing
Banks, and no Credit Party shall have any rights as a third party
beneficiary of any such provisions. In performing its functions and
duties hereunder, no Agent assumes, and shall not be deemed to have
assumed, any obligation towards or relationship of agency or trust
with or for the Borrower or any Subsidiary.

 

 

 

 

 

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

 

9.3. General
Immunity.

 

(a) No Responsibility for Certain
Matters. No Agent shall be responsible to any Lender or
Issuing Bank for (i) the execution, effectiveness, genuineness,
validity, enforceability, collectability or sufficiency hereof or
of any other Credit Document; (ii) the creation, perfection,
maintenance, preservation, continuation or priority of any Lien or
security interest created, purported to be created or required
under any Credit Document; (iii) the value or the sufficiency of
any Collateral; (iv) the satisfaction of any condition set forth in
Section 3 or elsewhere herein, other than to confirm receipt of
items expressly required to be delivered to such Agent; (v) the
failure of any Credit Party, Lender, Issuing Bank or other Agent to
perform its obligations hereunder or under any other Credit
Document; or (vi) any representations, warranties, recitals or
statements made herein or therein or in any written or oral
statements or in any financial or other statements, instruments,
reports or certificates or any other documents furnished or made by
any Agent to the Lenders or the Issuing Banks or by or on behalf of
any Credit Party to any Agent, any Lender or any Issuing Bank in
connection with the Credit Documents and the transactions
contemplated thereby or for the financial condition or affairs of
any Credit Party or any other Person liable for the payment of any
Obligations, nor shall any Agent be required to ascertain or
inquire as to the performance or observance of any of the terms,
conditions, provisions, covenants or agreements contained in any of
the Credit Documents or as to the use of the proceeds of the Loans
or as to the existence or possible existence of any Default or
Event of Default (nor shall any Agent be deemed to have knowledge
of the existence or possible existence of any Default or Event of
Default unless and until written notice thereof (stating that it is
a “notice of default”) is given to such Agent by the
Borrower or any Lender) or to make any disclosures with respect to
the foregoing. Notwithstanding anything herein to the contrary, the
Administrative Agent shall not have any liability arising from, or
be responsible for any loss, cost or expense suffered by the
Borrower, any Subsidiary, any Lender or any Issuing Bank as a
result of, confirmations of the amount of outstanding Loans, the
Letter of Credit Usage or the component amounts thereof, the
calculation of the Yield Maintenance Amount or the Weighted Average
Yield with respect to any Indebtedness, any exchange rate
determination or currency conversion, the determination of whether
any Class of Term Loans constitutes Incremental Tranche A Term
Loans or TLA Term Loans, the terms and conditions of any Permitted
Intercreditor Agreement or any Permitted Subordinated Indebtedness
Document or of any subordination terms applicable to any Permitted
Subordinated Indebtedness or the calculation of the outstanding
amount of Specified Hedge Obligations or Specified Cash Management
Services Obligations, in each case except to the extent caused by
such Agent’s gross negligence or willful misconduct, as
determined by a final, non-appealable judgment of a court of
competent jurisdiction.

 

 

 

 

 

(b) Exculpatory Provisions. None of
any Agent or any of its Related Parties shall be liable to the
Lenders or the Issuing Banks for any action taken or omitted by
such Agent under or in connection with any of the Credit Documents
except to the extent caused by such Agent’s gross negligence
or willful misconduct, as determined by a final, non-appealable
judgment of a court of competent jurisdiction. Each Agent shall be
entitled to refrain from the taking of any action (including the
failure to take an action) in connection herewith or with any of
the other Credit Documents or from the exercise of any power,
discretion or authority (including the making of any requests,
determinations, judgments, calculations or the expression of any
satisfaction or approval) vested in it hereunder or thereunder
unless and until such Agent shall have received instructions in
respect thereof from either the Requisite Tranche A/Revolving
Lenders or the Requisite Lenders (or such other Lenders as may be
required, or as such Agent shall believe in good faith to be
required, to give such instructions under Section 10.5) and upon
receipt of such instructions from the Requisite Tranche A/Revolving
Lenders or the Requisite Lenders (or such other Lenders, as the
case may be), such Agent shall be entitled to act or (where so
instructed) refrain from acting, or to exercise such power,
discretion or authority, in accordance with such instructions;
provided that such
Agent shall not be required to take any action that, in its
opinion, could expose such Agent to liability or be contrary to any
Credit Document or applicable law, including any action that may be
in violation of the automatic stay under any Debtor Relief Laws or
that may effect a forfeiture, modification or termination of
property of a Defaulting Lender in violation of any Debtor Relief
Law. Without prejudice to the generality of the foregoing, (i) each
Agent shall be entitled to rely, and shall be fully protected in
relying, upon any notice, request, certificate, consent, statement,
instrument, document or other writing (including any telephonic
notice, electronic message, Internet or intranet website posting or
other distribution) believed by it to be genuine and to have been
signed, sent or otherwise provided by the proper Person (whether or
not such Person in fact meets the requirements set forth in the
Credit Documents for being the signatory, sender or provider
thereof) and on opinions and judgments of attorneys (who may be
attorneys for the Borrower and the Subsidiaries), accountants,
insurance consultants, architects, engineers and other experts or
professional advisors selected by it, and such Agent shall not be
liable for any action it takes or omits to take in good faith in
reliance on any of the foregoing documents; and (ii) no Lender or
Issuing Bank shall have any right of action whatsoever against any
Agent as a result of such Agent acting or (where so instructed)
refraining from acting hereunder or any of the other Credit
Documents in accordance with the instructions of the Requisite
Tranche A/Revolving Lenders or the Requisite Lenders (or such other
Lenders as may be required, or as such Agent shall believe in good
faith to be required, to give such instructions under Section
10.5). In determining compliance with any condition hereunder to
the making of any Credit Extension that by its terms must be
fulfilled to the satisfaction of a Lender or an Issuing Bank, the
Administrative Agent may presume the satisfaction of such Lender or
Issuing Bank unless the Administrative Agent shall have received
written notice to the contrary from such Lender or Issuing Bank
reasonably in advance of such Credit Extension.

 

 

 

 

 

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

 

(d) Concerning Arrangers and Certain Other
Indemnitees. Notwithstanding anything herein to the
contrary, none of the Arrangers, the Syndication Agent or any of
the co-agents, bookrunners or managers listed on the cover page
hereof shall have any duties or responsibilities under this
Agreement or any of the other Credit Documents, except in its
capacity, as applicable, as the Administrative Agent, the
Collateral Agent, a Lender or an Issuing Bank hereunder or, in the
case of any Auction Manager or any other Person appointed under the
Credit Documents to serve as an agent or in a similar capacity, the
duties and responsibilities that are expressly specified in the
applicable Credit Documents with respect thereto, but all such
Persons shall have the benefit of the exculpatory, indemnification
and other provisions set forth in this Section 9 and in Section
10.3 and shall have all of the rights and benefits of a third party
beneficiary with respect thereto, including an independent right of
action to enforce such provisions directly, without the consent or
joinder of any other Person, against any or all of the Credit
Parties and the Lenders. The exculpatory, indemnification and other
provisions set forth in this Section 9 and in Section 10.3 shall
apply to any Affiliate or other Related Party of any Arranger or
any Agent in connection with the arrangement and syndication of the
credit facilities provided for herein (including pursuant to
Section 2.23, 2.24 and 2.25) and any amendment, supplement or
modification hereof or of any other Credit Document (including in
connection with any Extension/Modification Offer), as well as
activities as an Agent.

 

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

 

 

 

 

 

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

 

(a) Each Lender, by
delivering its signature page to this Agreement, an Assignment Agreement, a
Refinancing Facility Agreement or an Incremental Facility Agreement
and funding its Loans on the Closing Date and/or providing its
Revolving Commitment on the Closing Date or by funding any
Refinancing Term Loan, any Incremental Term Loan or providing any
Incremental Revolving Commitment, as the case may be, shall be
deemed to have acknowledged receipt of, and consented to and
approved, each Credit Document and each other document required to
be approved by any Agent, the Requisite Lenders or any other
Lenders, as applicable, on the Closing Date or as of the date of
funding of such Refinancing Term Loans or Incremental Term Loans or
the date of the effectiveness of such Incremental Revolving
Commitment.

 

(b) Each Lender and
Issuing Bank acknowledges and agrees that Wilmington Trust or one
or more of its Affiliates will be acting as the administrative
agent and collateral agent under the Second Lien Credit Agreement
and 
acting as the administrative agent and collateral agent under the
Bridge Credit Agreement, and may (but is not obligated to)
act as administrative agent, collateral agent or a similar
representative for the holders of any other Permitted Second Lien
Indebtedness, any Permitted Credit Agreement Refinancing
Indebtedness and any Permitted Incremental Equivalent Indebtedness
and, in its capacity as the administrative agent and collateral
agent under the Second Lien Credit Agreement, is a party to the
Intercreditor Agreement,
in its capacity as the administrative agent and collateral agent
under the Bridge Credit Agreement, is a party to the Bridge
Intercreditor Agreement and to the Intercreditor Agreement,
and, in such other capacities, may be a party to a Permitted
Intercreditor Agreement. Each Lender, Issuing Bank and Credit Party
waives any conflict of interest, now contemplated or arising
hereafter, in connection therewith and agrees not to assert against
Wilmington Trust or any of its Affiliates any claims, causes of
action, damages or liabilities of whatever kind or nature relating
to any such conflict of interest.

 

 

 

 

 

9.6. Right
to Indemnity. Each Lender, in proportion to its applicable Pro Rata
Share (determined as set forth below), severally agrees to
indemnify each Agent and each Related Party thereof, to the extent
that such Agent or such Related Party shall not have been
reimbursed by any Credit Party (and without limiting any Credit
Party’s obligations under the Credit Documents to do so), for
and against any and all liabilities, obligations, losses, damages,
penalties, claims, actions, judgments, suits, costs, expenses
(including fees, expenses and other charges of counsel) or
disbursements of any kind or nature whatsoever that may be imposed
on, incurred by or asserted against such Agent or any such Related
Party in exercising the powers, rights and remedies, or performing
the duties and functions, of such Agent under the Credit Documents
or any other documents contemplated by or referred to therein or
otherwise in relation to its capacity as an Agent; provided that no Lender shall
be liable for any portion of such liabilities, obligations, losses,
damages, penalties, claims, actions, judgments, suits, costs,
expenses or disbursements resulting from such Agent’s gross
negligence or willful misconduct, as determined by a final,
non-appealable judgment of a court of competent jurisdiction. If
any indemnity furnished to any Agent for any purpose shall, in the
opinion of such Agent, be insufficient or become impaired, such
Agent may call for additional indemnity and cease, or not commence,
to do the acts indemnified against until such additional indemnity
is furnished; provided that in no event shall
this sentence require any Lender to indemnify such Agent against
any liability, obligation, loss, damage, penalty, claim, action,
judgment, suit, cost, expense or disbursement in excess of such
Lender’s applicable Pro Rata Share thereof; and provided further that this sentence
shall not be deemed to require any Lender to indemnify such Agent
against any liability, obligation, loss, damage, penalty, claim,
action, judgment, suit, cost, expense or disbursement described in
the proviso in the immediately preceding sentence. For purposes of
this Section 9.6, “Pro Rata Share” shall be determined
as of the time that the applicable indemnity payment is sought (or,
in the event at such time all the Commitments shall have terminated
and all the Loans shall have been repaid in full, as of the time
most recently prior thereto when any Loans or Commitments remained
outstanding).

 

 

 

 

 

9.7. Successor
Administrative Agent and Collateral Agent. Subject to the terms of
this Section 9.7, the Administrative Agent may resign at any time
from its capacity as such. In connection with such resignation, the
Administrative Agent shall give notice of its intent to resign to
the Lenders, the Issuing Banks and the Borrower. Upon receipt of
any such notice of resignation, the Requisite Lenders, subject to,
unless an Event of Default shall have occurred and is continuing,
the prior written consent of the Borrower (not to be unreasonably
withheld, conditioned or delayed), shall have the right to appoint
a successor. If no successor shall have been so appointed by the
Requisite Lenders and shall have accepted such appointment within
30 days after the resigning Administrative Agent gives notice of
its intent to resign, then the resigning Administrative Agent may,
on behalf of the Lenders and the Issuing Banks, appoint a
successor; provided
that in no event shall any such successor Administrative Agent be a
Defaulting Lender or a Disqualified Institution. If the
Administrative Agent shall be a Defaulting Lender pursuant to
clause (d) of the definition of such term, the Requisite Lenders
may, to the extent permitted by applicable law, by notice in
writing to the Borrower and the Administrative Agent remove the
Administrative Agent in its capacity as such and, subject to,
unless an Event of Default shall have occurred and is continuing,
the prior written consent of the Borrower (not to be unreasonably
withheld, conditioned or delayed), appoint a successor. Any
resignation or removal of the Administrative Agent shall be deemed
to be a resignation of the Collateral Agent, and any successor
Administrative Agent appointed pursuant to this Section 9.7 shall,
upon its acceptance of such appointment, become the successor
Collateral Agent for all purposes of the Credit Documents. Upon the
acceptance of its appointment as Administrative Agent and
Collateral Agent hereunder by a successor, such successor shall
succeed to and become vested with all the rights, powers,
privileges and duties of the resigning or removed Administrative
Agent and Collateral Agent, and the resigning or removed
Administrative Agent and Collateral Agent shall be discharged from
its duties and obligations hereunder and under the other Credit
Documents. The fees payable by the Borrower to a successor
Administrative Agent and Collateral Agent shall be the same as
those payable to its predecessor unless otherwise agreed by the
Borrower and such successor. Notwithstanding the foregoing, in the
event (a) no successor to a resigning Administrative Agent shall
have been so appointed and shall have accepted such appointment
within 30 days after the resigning Administrative Agent gives
notice of its intent to resign, the resigning Administrative Agent
may give notice of the effectiveness of its resignation to the
Lenders, the Issuing Banks and the Borrower or (b) no successor to
a removed Administrative Agent shall have been so appointed and
shall have accepted such appointment by the day that is 30 days
following of the issuance of a notice of removal, the removal shall
become effective on such 30th day, and on the date of effectiveness
of such resignation or removal, as the case may be, (i) the
resigning or removed Administrative Agent and Collateral Agent
shall be discharged from its duties and obligations hereunder and
under the other Credit Documents, provided that, solely for
purposes of maintaining any security interest granted to the
Collateral Agent under any Collateral Document for the benefit of
the Secured Parties, the resigning or removed Collateral Agent
shall continue to be vested with such security interest as
collateral agent for the benefit of the Secured Parties and, in the
case of any Collateral in the possession of the Collateral Agent,
shall continue to hold such Collateral, in each case until such
time as a successor Collateral Agent is appointed and accepts such
appointment in accordance with this paragraph (it being understood
and agreed that the resigning or removed Collateral Agent shall
have no duty or obligation to take any further action under any
Collateral Document, including any action required to maintain the
perfection of any such security interest), and (ii) the Requisite
Lenders shall succeed to and become vested with all the rights,
powers, privileges and duties of the resigning or removed
Administrative Agent and Collateral Agent, provided that (A) all payments
required to be made hereunder or under any other Credit Document to
the Administrative Agent for the account of any Person other than
the Administrative Agent shall be made directly to such Person and
(B) all notices and other communications required or contemplated
to be given or made to the Administrative Agent or the Collateral
Agent shall also directly be given or made to each Lender and each
Issuing Bank. Following the effectiveness of the Administrative
Agent’s and Collateral Agent’s resignation from its
capacity as such, the provisions of this Section 9 and of Section
10.3 shall continue in effect for the benefit of such resigning or
removed Agent, its sub-agents and their respective Related Parties
in respect of any actions taken or omitted to be taken by any of
them while it was acting as Administrative Agent or Collateral
Agent, as applicable, and in respect of the matters referred to in
the proviso under clause (a) above. If the Person serving as the
resigning or removed Administrative Agent shall also be an Issuing
Bank, then, unless otherwise agreed to by such Person, upon the
effectiveness of the resignation or removal thereof in its capacity
as the Administrative Agent, (A) such Person shall no longer be
obligated to issue, amend, extend or renew any Letter of Credit,
but shall continue to have all the rights of an Issuing Bank under
this Agreement with respect to Letters of Credit issued by it prior
to the effectiveness of such resignation, (B) the Borrower shall
pay all unpaid fees accrued for the account of such Person in its
capacity as an Issuing Bank pursuant to Section 2.10(b) and
(C) the Borrower may appoint a replacement Issuing Bank (which
appointment shall be made in accordance with the procedures set
forth in Section 2.3(i), mutatis mutandis).

 

 

 

 

 

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

 

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

 

 

 

 

 

(b) Specified Hedge Obligations. No
obligations under any Hedge Agreement that constitute Specified
Hedge Obligations or under any Specified Cash Management Services
Provider Agreement will create (or be deemed to create) in favor of any Secured Party that
is a party thereto any rights in connection with the management or
release of any Collateral or of the obligations of any Guarantor
under the Credit Documents except as expressly provided in Section
10.5(c)(iii) of this Agreement. Notwithstanding anything to the
contrary herein, neither the Administrative Agent nor the
Collateral Agent shall owe any fiduciary duty, duty of loyalty,
duty of care, duty of disclosure or any other obligation whatsoever
to any holder of any Specified Hedge Obligations or Specified Cash
Management Services Obligations.

 

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

 

(i) When all
Obligations (excluding contingent obligations as to which no claim
has been made and the Specified Hedge Obligations and Specified
Cash Management Services Obligations) have been paid in full, all
Commitments have terminated and no Letter of Credit shall be
outstanding, upon request of the Borrower, the Administrative Agent
and the Collateral Agent shall (without notice to, or vote or
consent of, any Secured Party) take such actions as shall be
required to release its security interest in all Collateral, and to
release all Guarantees provided for in any Credit Document, whether
or not on the date of such release there may be outstanding
Specified Hedge Obligations or Specified Cash Management Services
Obligations.

 

(ii) (A) If (x) any
Guarantor Subsidiary shall have been designated as an Unrestricted
Subsidiary in accordance with the terms hereof or (y) all the
Equity Interests in any Guarantor Subsidiary held by the Borrower
and the Subsidiaries shall be sold or otherwise disposed of
(including by merger or consolidation) in any transaction permitted
by this Agreement, and as a result of such sale or other
disposition such Guarantor Subsidiary shall cease to be a
Subsidiary of the Borrower, such Guarantor Subsidiary shall, upon
effectiveness of such designation, or the consummation of such sale
or other disposition, automatically be discharged and released from
its Obligations Guarantee and all security interests created by the
Collateral Documents in Collateral owned by such Guarantor
Subsidiary shall be automatically released, without any further
action by any Secured Party or any other Person; provided that no such discharge
or release shall occur unless substantially concurrently therewith,
such Subsidiary shall have been discharged and released from its
Guarantee of all Permitted Second Lien Indebtedness, all Permitted
Credit Agreement Refinancing Indebtedness, all Permitted
Incremental Equivalent Indebtedness and all Permitted Subordinated
Indebtedness, and all Liens on the assets of such Subsidiary
securing any such Indebtedness shall have been
released.

 

(A) Upon any sale or
other transfer by any Credit Party (other than to the Borrower or
any Restricted Subsidiary) of any Collateral in a transaction
permitted under this Agreement, or upon the effectiveness of any
written consent to the release of the security interest created
under any Collateral Document in any Collateral pursuant to
Section 10.5, the security interests in such Collateral
created by the Collateral Documents shall be automatically
released, without any further action by any Secured Party or any
other Person; provided that no such release
shall occur unless substantially concurrently therewith, such
Collateral shall cease to be subject to any security interests
securing any Permitted Second Lien Indebtedness, any Permitted
Credit Agreement Refinancing Indebtedness and any Permitted
Incremental Equivalent Indebtedness.

 

 

 

 

 

(B) Upon receipt by the
Collateral Agent of a certificate from an Authorized Officer of the
Borrower in form and substance reasonably satisfactory to the
Collateral Agent, certifying that (x) the Escrow Cash Release
Conditions have been satisfied and the proceeds of the Escrow Cash
Collateral will be applied, substantially concurrently with the
release thereof, to pay Acquisition Consideration for the Specified
Acquisition and related customary fees and expenses and, to the
extent permitted by Section 2.5(c), will otherwise be used for
working capital and other general corporate purposes of the
Borrower and the Restricted Subsidiaries, and/or (y) the proceeds
of the Escrow Cash Collateral (or the applicable portion thereof
specified in such certificate) will be applied, substantially
concurrently with the release thereof, to prepay the Tranche B
Term Borrowings pursuant to Section 2.13(d), in each case on the
requested date of release of the Escrow Cash Collateral, the
Collateral Agent shall release the Escrow Cash Collateral from the
Escrow Cash Collateral Account (I) if the Escrow Cash Collateral is
to be applied to pay such Acquisition Consideration and related
fees and expenses and, to the extent permitted by Section 2.5(c),
to be used for such working capital and other general corporate
purposes, to the Borrower or (II) if the Escrow Cash Collateral is
to be applied to prepay Tranche B Term Borrowings, to the
Administrative Agent, on behalf of the Borrower, and upon such
release by the Collateral Agent, the Escrow Cash Collateral Control
Agreement shall be terminated and all security interests created by
the Escrow Cash Collateral Control Agreement or any other
Collateral Document in the Escrow Cash Collateral shall be
automatically released, without any further action by any Secured
Party or any other Person.

 

(C) Upon receipt by the
Collateral Agent of a certificate from an Authorized Officer of the
Borrower in form and substance reasonably satisfactory to the
Collateral Agent (and including reasonably detailed calculations
demonstrating satisfaction of the requirement set forth in clause
(y) below), certifying that (x) no Default or Event of Default has
occurred and is continuing and (y) the Total Leverage Ratio is less
than 2.50:1.00, determined as of the last day of the then most
recently ended Test Period, the Collateral Agent shall release to
the Borrower any Cash or Cash Equivalents constituting Vector
Subordinated Note Collateral then on deposit in the Vector
Subordinated Note Cash Collateral Account and all security
interests created by the Vector Subordinated Note Cash Collateral
Control Agreement or any other Collateral Document in such Cash or
Cash Equivalents shall be automatically released, without any
further action by any Secured Party or any other
Person.

 

(iii) Each Secured Party
authorizes the Collateral Agent to subordinate, at the request of
the Borrower, any Lien on any property granted to or held by the
Collateral Agent under any Credit Document to the holder of any
Lien on such property that is permitted by Section 6.2(d) or
6.2(o); provided
that no such subordination shall occur unless substantially
concurrently therewith, any Lien on such property securing any
Permitted Second Lien Indebtedness, any Permitted Credit Agreement
Refinancing Indebtedness and any Permitted Incremental Equivalent
Indebtedness shall also be so subordinated.

 

(iv) In connection with
any termination, release or subordination pursuant to this Section
9.8(d), the Administrative Agent and the Collateral Agent shall
execute and deliver to any Credit Party, at such Credit
Party’s expense, all documents that such Credit Party shall
reasonably request to evidence such termination, release or
subordination. Any execution and delivery of documents pursuant to
this Section 9.8(d) shall be without recourse to or warranty by the
Administrative Agent or the Collateral Agent.

 

 

 

 

 

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

 

(e) Acceptance of Benefits. Each
Secured Party, whether or not a party hereto, will be deemed, by
its acceptance of the benefits of the Collateral or the Guarantees
purported to be created under the Credit Documents, to have agreed
to the provisions of this Section 9 (including the authorization
and the grant of the power of attorney pursuant to Section 9.8(a)),
Section 10.24 and all the other provisions of this Agreement
relating to Collateral, any such Guarantee or any Collateral
Document and to have agreed to be bound by the Credit Documents as
a Secured Party thereunder. It is understood and agreed that the
benefits of the Collateral and any such Guarantee to any Secured
Party are made available on an express condition that, and is
subject to, such Secured Party not asserting that it is not bound
by the appointments and other agreements expressed herein to be
made, or deemed herein to be made, by such Secured
Party.

 

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

 

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

 

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

 

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

 

 

 

 

 

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

 

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

 

9.11. Certain
ERISA Matters.

 

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

 

(i) such Lender is not
using “plan assets” (within the meaning of 29 CFR
§ 2510.3-101, as modified by Section 3(42) of ERISA) of one or
more Benefit Plans in connection with the Loans, the Letters of
Credit or the Commitments,

 

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

 

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

 

 

 

 

 

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

 

(b) In addition, unless
sub-clause (i) in the immediately preceding clause (a) is true with
respect to a Lender or such Lender has not provided another
representation, warranty and covenant as provided in sub-clause
(iv) in the immediately preceding clause (a), such Lender further
(x) represents and warrants, as of the date such Person became a
Lender party hereto, to, and (y) covenants, from the date such
Person became a Lender party hereto to the date such Person ceases
being a Lender party hereto, for the benefit of, the Administrative
Agent and the Arrangers and their respective Affiliates, and not,
for the avoidance of doubt, to or for the benefit of the Borrower
or any other Credit Party, that:

 

(i) none of the
Administrative Agent or the Arrangers or any of their respective
Affiliates is a fiduciary with respect to the assets of such Lender

involved in such Lender’s entrance into, participation in,
administration of and performance of the Loans, the Letters of
Credit, the Commitments and this Agreement (including in
connection with the reservation or exercise of any rights by the
Administrative Agent under this Agreement, the Loans or any
documents related to hereto or thereto),

 

(ii) the Person making
the investment decision on behalf of such Lender with respect to
the entrance into, participation in, administration of and
performance of the Loans, the Letters of Credit, the Commitments
and this Agreement is independent (within the meaning of 29 CFR
§ 2510.3-21) and is a bank, an insurance carrier, an
investment adviser, a broker-dealer or other person that holds, or
has under management or control, total assets of at least $50
million, in each case as described in 29 CFR §
2510.3-21(c)(1)(i)(A)-(E),

 

(iii) the Person making
the investment decision on behalf of such Lender with respect to
the entrance into, participation in, administration of and
performance of the Loans, the Letters of Credit, the Commitments
and this Agreement is capable of evaluating investment risks
independently, both in general and with regard to particular
transactions and investment strategies (including in respect of the
Obligations),

 

(iv) the Person making
the investment decision on behalf of such Lender with respect to
the entrance into, participation in, administration of and
performance of the Loans, the Letters of Credit, the Commitments
and this Agreement is a fiduciary under ERISA or the Code, or both,
with respect to the Loans, the Letters of Credit, the Commitments
and this Agreement and is responsible for exercising independent
judgment in evaluating the transactions hereunder, and

 

(v) no fee or other
compensation is being paid directly to the Administrative Agent or
the Arrangers and their respective Affiliates for investment advice
(as opposed to other services) in connection with the Loans, the
Letters of Credit, the Commitments or this Agreement.

 

(c) The Administrative
Agent and the Arrangers and their respective Affiliates hereby
informs the Lenders that each such Person is not undertaking to
provide impartial investment advice, or to give advice in a
fiduciary capacity, in connection with the transactions
contemplated hereby, and that such Person has a financial interest
in the transactions contemplated hereby in that such Person or an
Affiliate thereof (i) may receive interest or other payments with
respect to the Loans, the Letters of Credit, the Commitments and
this Agreement, (ii) may recognize a gain if it extended the Loans,
the Letters of Credit or the Commitments for an amount less than
the amount being paid for an interest in the Loans, the Letters of
Credit or the Commitments by such Lender or (iii) may receive fees
or other payments in connection with the transactions contemplated
hereby, the Loan Documents or otherwise, including structuring
fees, commitment fees, arrangement fees, facility fees, upfront
fees, underwriting fees, ticking fees, agency fees, administrative
agent or collateral agent fees, utilization fees, minimum usage
fees, letter of credit fees, fronting fees, deal-away or alternate
transaction fees, amendment fees, processing fees, term out
premiums, banker’s acceptance fees, breakage or other early
termination fees or fees similar to the foregoing.

 

 

 

 

 

9.12. Concerning
the Vector Facility Arrangements. Each Lender, Issuing Bank and
Credit Party acknowledges and agrees that Goldman Sachs or one or
more of its Affiliates will be the Vector Senior Loan Facility
Lender party to the Vector Facility Arrangements, and that any
Vector Collateral provided as collateral to secure obligations of
the Vector Lenders thereunder (including any such assets in the
form of Tranche B Term Loans held by any Vector Lenders) is held by
Goldman Sachs or any such Affiliate solely in its individual
capacity, for its own benefit, and not in its capacity as an Agent
for the benefit of any Secured Party. Each Lender, Issuing Bank and
Credit Party further acknowledges and agrees that in exercising
rights and remedies with respect to any Vector Collateral or
otherwise in respect of the Vector Facility Arrangements, Goldman
Sachs or any of its Affiliates may enforce the provisions of the
Vector Facility Arrangements and exercise its rights thereunder,
including enforcing the subordination provisions under the Vector
Subordinated Note, directing the voting by any Vector Lender of its
Tranche B Term Loans hereunder and making determinations of the
current market value of the Tranche B Term Loans, and exercise
remedies thereunder and under applicable law, all in such order and
in such manner as it may determine in its sole discretion and as if
it were not an Agent (or an Affiliate of an Agent) hereunder (and
notwithstanding the fact that such exercise of rights and
enforcement of remedies could have an adverse effect on the value
of the loan made by the Borrower under the Vector Subordinated Note
or its ability to obtain the repayment thereof), and will be under
no obligation or duty as a result of its (or its Affiliate’s)
role as an Agent or Lender hereunder to take any action or refrain
from taking any action (including refraining from enforcing or
exercising any right or remedy that might be available to it) in
respect of the Vector Facility Arrangements (and that as a result
of exercising rights and remedies with respect to any Vector
Collateral, Goldman Sachs or any of its Affiliates may foreclose
upon (and become and be a Lender hereunder holding a significant
portion of the Tranche B Term Loans), and/or may assign or cause
the assignment to any Eligible Assignee of, all or any part of the
Tranche B Term Loans held by the Vector Lenders that constitute
Vector Collateral), and each Lender and Issuing Bank agrees not to
assert, and hereby waives, to the fullest extent permitted by law,
any right to demand, request, plead or otherwise assert or claim
the benefit of any marshalling or other similar right that may be
available under applicable law with respect to the Vector
Collateral. Each Lender, Issuing Bank and Credit Party waives any
conflict of interest, now contemplated or arising hereafter, in
connection with the Vector Facility Arrangements and agrees not to
assert against Goldman Sachs or any of its Affiliates any claims,
causes of action, damages or liabilities of whatever kind or nature
relating to any such conflict of interest.

 

SECTION
10. MISCELLANEOUS

 

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

 

 

 

 

 

(a) Electronic
Communications.

 

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

 

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

 

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

 

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

 

 

 

 

 

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

 

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

 

 

 

 

 

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

 

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

 

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

 

 

 

 

 

10.4. Set-Off.
In addition to any rights now or hereafter granted under applicable
law and not by way of limitation of any such rights, upon the
occurrence and during the continuance of any Event of Default each
Lender and each Issuing Bank is hereby authorized by each Credit
Party at any time or from time to time, without notice to any
Credit Party, any such notice being hereby expressly waived, to
set-off and to appropriate and to apply any and all deposits
(general or special, including Indebtedness evidenced by
certificates of deposit, whether matured or unmatured, but not
including trust accounts) and any other Indebtedness at any time
held or owing by such Lender or such Issuing Bank to or for the
credit or the account of any Credit Party against and on account of
the obligations and liabilities of any Credit Party to such Lender
or such Issuing Bank hereunder and under the other Credit
Documents, including all claims of any nature or description
arising out of or connected hereto or thereto, irrespective of
whether or not (a) such Lender or such Issuing Bank shall have made
any demand hereunder or (b) the principal of or the interest on the
Loans or any amounts in respect of the Letters of Credit or any
other amounts due hereunder shall have become due and payable and
although such obligations and liabilities, or any of them, may be
contingent or unmatured; provided that in the event that
any Defaulting Lender shall exercise any such right of set-off, all
amounts so set-off shall be paid over immediately to the
Administrative Agent for further application in accordance with the
provisions of Section 2.21 and, pending such payment, shall be
segregated by such Defaulting Lender from its other funds and
deemed held in trust for the benefit of the Administrative Agent,
the Issuing Banks and the Lenders. Each Lender and Issuing Bank
agrees to notify the Administrative Agent promptly after any such
set-off and application; provided that the failure to
give such notice shall not affect the validity of such set-off and
application.

 

10.5. Amendments
and Waivers. Requisite
Lenders’ Consent. Except as provided in
Section 2.23, 2.24 or 2.25 
(except during the Default Period) or in the definition of
“Letter of Credit Sublimit”, none of this Agreement,
any other Credit Document or any provision hereof or thereof may be
waived, amended or modified, and no consent to any departure by any
Credit Party therefrom may be made, except, subject to the
additional requirements of Sections 10.5(b) and 10.5(c) and as
otherwise provided in Sections 10.5(d) and 10.5(e), in the case of
this Agreement, pursuant to an agreement or agreements in writing
entered into by the Borrower and the Requisite Lenders and, in the
case of any other Credit Document, pursuant to an agreement or
agreements in writing entered into by the Administrative Agent or
the Collateral Agent, as applicable, and the Credit Party or Credit
Parties that are parties thereto, in each case with the consent of
the Requisite Lenders.

 

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

 

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

 

(ii) extend the
scheduled final maturity date of any Loan;

 

(iii) except as expressly
permitted by Section 10.8, extend the scheduled expiration date of
any Letter of Credit beyond the Revolving Commitment Termination
Date or waive, amend or otherwise modify the provisions of
Section 10.8 that expressly provide for the release of the
Revolving Lenders from their participations in, and other
obligations with respect to, Letters of Credit;

 

 

 

 

 

(iv) waive, reduce or
postpone any scheduled amortization payment (but not any voluntary
or mandatory prepayment) of any Loan or any reimbursement
obligation in respect of any Letter of Credit;

 

(v) reduce the rate of
interest on any Loan (other than any waiver of any increase in the
interest rate applicable to any Loan pursuant to Section 2.9 or
Section 2.23(b)(iii)) or any fee or any premium payable hereunder
(other than under Section 2.23(b)(iii)), or waive or postpone the
time for payment of any such interest, fee or premium;

 

(vi) reduce the
principal amount of any Loan or any reimbursement obligation in
respect of any Letter of Credit;

 

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

 

(viii) amend the
percentage specified in the definition of the term “Requisite
Lenders” or amend the term “Pro Rata Share” or
waive, amend or otherwise modify Section 2.16 hereof or Section
5.02 of the Pledge and Security Agreement (and any comparable
provision of any other Collateral Document) in a manner that would
alter the pro rata sharing of payments required thereby;
provided
that,
except during the Default Period, additional extensions of
credit made pursuant to Section 2.23, 2.24 or 2.25 shall be
included, and with the consent of the Requisite Lenders other
additional extensions of credit pursuant hereto may be included, in
the determination of “Requisite Lenders” or “Pro
Rata Share” on substantially the same basis as the Term Loan
Commitments, the Term Loans, the Revolving Commitments and the
Revolving Exposures are included on the Closing Date;
or

 

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

 

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

 

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

 

 

 

 

 

(i) (A) waive, amend or
otherwise modify Section 2.14 or any other provision of any Credit
Document in a manner that by its terms would disproportionately and
adversely affect the rights or duties of Lenders of any Class
differently than Lenders of any other Class, without the consent of
Lenders representing a Majority in Interest of each affected Class,
provided that the
Requisite Lenders may waive, in whole or in part, any prepayment of
Loans hereunder so long as the application, as between Classes, of
any portion of such prepayment that is still required to be made is
not altered, or (B) waive, amend or otherwise modify this Section
10.5(c)(i) or any other provision of this Agreement or any other
Credit Document that expressly provides that the consent of all
Lenders of any Class or a Majority in Interest of Lenders of any
Class is required to waive, amend or otherwise modify any rights
thereunder or to make any determination or grant any consent
thereunder, in each case without the consent of each Lender of such
Class or a Majority in Interest of the Lenders of such Class, as
the case may be; provided that,
except during the Default Period, nothing in this Section
10.5(c)(i) shall be deemed to restrict the amendments contemplated
by Section 2.23, 2.24 or 2.25;

 

(ii) waive, amend or
otherwise modify the rights, duties, privileges, protections,
indemnities, immunities or obligations of, or any fees or other
amounts payable to, any Agent or any Issuing Bank (including any
waiver, amendment or other modification of the obligation of
Lenders to purchase participations in Letters of Credit as provided
in Section 2.3(e)) without the prior written consent of such
Agent or such Issuing Bank, as the case may be;

 

(iii) waive, amend or
otherwise modify this Agreement or the Pledge and Security
Agreement so as to alter the ratable treatment of Obligations
arising under the Credit Documents, on the one hand, and the
Specified Hedge Obligations or Specified Cash Management Services
Obligations, on the other, or amend or otherwise modify the
definition of the term “Obligations”, “Specified
Hedge Obligations”, Specified Hedge Obligations,
“Specified Cash Management Services Obligations” or
“Secured Parties” (or any comparable term used in any
Collateral Document), in each case in a manner adverse to any
Secured Party holding Specified Hedge Obligations or Specified Cash
Management Services Obligations then outstanding without the
written consent of such Secured Party (it being understood that an
amendment or other modification of the type of obligations secured
by the Collateral Documents or Guaranteed hereunder or thereunder,
so long as such amendment or other modification by its express
terms does not alter the Specified Hedge Obligations or Specified
Cash Management Services Obligations being so secured or
Guaranteed, shall not be deemed to be adverse to any Secured Party
holding Specified Hedge Obligations or Specified Cash Management
Services Obligations, as applicable);

 

(iv) amend the
percentage specified in the definition of the term “Requisite
Tranche A/Revolving Lenders” without the prior written
consent of each Lender having or holding Revolving Exposure, unused
Revolving Commitments and/or Tranche A Term Loan Exposure;
provided
that,
except during the Default Period, additional extensions of
credit made pursuant to Section 2.23, 2.24 or 2.25 may be included,
and with the consent of the Requisite Tranche A/Revolving Lenders
other additional extensions of credit pursuant hereto may be
included, as applicable, in the determination of “Requisite
Tranche A/Revolving Lenders” on substantially the same
basis the Revolving Exposures, the Revolving Commitments and the
Tranche A Term Loan Exposures are included on the Closing
Date;

 

(v) waive, amend or
otherwise modify the provisions of Section 6.7(c) (or the
definition of “Fixed Charge Coverage Ratio” or any
component definition thereof solely as any such definition is used
for purposes of Section 6.7(c)), in each case without the prior
written consent of the Requisite Tranche A/Revolving
Lenders;

 

 

 

 

 

(vi) waive, amend or
otherwise modify the provisions of Section 5.16, 9.8(b)(ii) or
9.8(d)(ii)(D), clause (iv) of the last sentence of Section 2.16 or
the last paragraph of Section 5.02 of the Pledge and Security
Agreement, the definition of the term “Vector Subordinated
Note Cash Collateral Account”, “Vector Subordinated
Note Cash Collateral Account Control Agreement” or
“Vector Subordinated Note Collateral” or any other
provision in any Credit Document expressly relating to the Vector
Subordinated Note Cash Collateral Account, the Vector Subordinated
Note Cash Collateral Account Control Agreement or the Vector
Subordinated Note Collateral or, except as expressly contemplated
by Section 9.8(d)(ii)(D), release any Vector Subordinated Note
Collateral from the Liens of the Collateral Documents, in each case
without the prior written consent of the Majority in Interest of
the Revolving Lenders; or

 

(vii) waive, amend or
otherwise modify the provisions of Section 9.12 without the prior
written consent of Goldman Sachs (and Goldman Sachs shall be a
third party beneficiary of such provisions and this Section
10.5(c)(vii) and shall have all of the rights and benefits of a
third party beneficiary, including an independent right of action
to enforce such provisions and this Section 10.5(c)(vii) directly,
without the consent or joinder of any other Person, against any or
all of the Credit Parties and the Lenders).

 

(c) Class Amendments.
Notwithstanding anything to the contrary in Section 10.5(a),
any waiver, amendment or modification of this Agreement or any
other Credit Document, or any consent to any departure by any
Credit Party therefrom, that by its terms affects the rights or
duties under this Agreement of the Lenders of a particular Class or
Classes (but not Lenders of any other Class), may be effected by an
agreement or agreements in writing entered into by the Borrower and
the requisite number or percentage in interest of each affected
Class of Lenders that would be required to consent thereto under
this Section 10.5 if such Class of Lenders were the only Class
of Lenders hereunder at the time.

 

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

 

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

 

(ii) except
during the Default Period, in connection with any
transaction permitted by Section 2.23, 2.24 or 2.25, this Agreement
and the other Credit Documents may be amended or modified as
contemplated by Section 2.23, 2.24 or 2.25, including to add any
covenant applicable to the Borrower and/or the Restricted
Subsidiaries or any other provisions for the benefit of the
Lenders;

 

 

 

 

 

(iii) in connection with
the incurrence of any Permitted Second Lien Indebtedness, any
Permitted Credit Agreement Refinancing Indebtedness or any
Permitted Incremental Equivalent Indebtedness, this Agreement and
the other Credit Documents may be amended by an agreement in
writing entered into by the Borrower and the Administrative Agent
to add any covenant applicable to the Borrower and/or the
Restricted Subsidiaries (including any Previously Absent Financial
Maintenance Covenant) or any other provisions for the benefit of
the Lenders;

 

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

 

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

 

(vi) this Agreement and
the other Credit Documents may be amended in the manner provided in
Section 10.24; and

 

(vii) the provisions of
Section 6.7(c) (and the definition of “Fixed Charge Coverage
Ratio” and any component definition thereof solely as any
such definition is used for purposes of Section 6.7(c)), in each
case may be waived, amended or otherwise modified by an agreement
in writing entered into by the Borrower and the Requisite
Tranche A/Revolving Lenders (but without the necessity of
obtaining the consent of the Requisite Lenders or any other
Lender).

 

Each Lender and
Issuing Bank hereby expressly authorizes the Administrative Agent
and/or the Collateral Agent to enter into any waiver, amendment or
other modification of this Agreement and the other Credit Documents
contemplated by this Section 10.5(e).

 

(e) Requisite Execution of Amendments,
Etc. With the concurrence of any Lender, the Administrative
Agent may, but shall have no obligation to, execute waivers,
amendments, modifications or consents on behalf of such Lender. Any
waiver or consent shall be effective only in the specific instance
and for the specific purpose for which it is given. No notice to or
demand on any Credit Party in any case shall entitle any Credit
Party to any other or further notice or demand in similar or other
circumstances. Any amendment, modification, waiver or consent
effected in accordance with this Section 10.5 shall be binding
upon each Person that is at the time thereof a Lender and each
Person that subsequently becomes a Lender.

 

 

 

 

 

10.6. Successors
and Assigns; Participations. Generally. This Agreement shall
be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns permitted hereby. No Credit
Party’s rights or obligations under the Credit Documents, and
no interest therein, may be assigned or delegated by any Credit
Party (except, in the case of any Guarantor Subsidiary, any
assignment or delegation by operation of law as a result of any
merger or consolidation of such Guarantor Subsidiary permitted by
Section 6.8) without the prior written consent of the
Administrative Agent and each Lender, and any attempted assignment
or delegation without such consent shall be null and void. Nothing
in this Agreement, expressed or implied, shall be construed to
confer upon any Person (other than the parties hereto, their
respective successors and assigns permitted hereby, the
participants referred to in Section 10.6(g) (to the extent provided
in clause (iii) of such Section) and, to the extent expressly
contemplated hereby, Affiliates of any Agent or any Lender, the
other Indemnitees and other express third party beneficiaries
hereof) any legal or equitable right, remedy or claim under or by
reason of this Agreement.

 

(a) Register. The Borrower, the
Administrative Agent, the Collateral Agent, the Lenders and the
Issuing Banks shall deem and treat the Persons recorded as Lenders
in the Register as Lenders hereunder for all purposes of this
Agreement and the holders and owners of the corresponding
Commitments and Loans recorded therein for all purposes hereof. No
assignment or transfer of any Commitment or Loan shall be effective
unless and until recorded in the Register, and following such
recording, unless otherwise determined by the Administrative Agent
(such determination to be made in the sole discretion of the
Administrative Agent, which determination may be conditioned on the
consent of the assigning Lender and the assignee), shall be
effective notwithstanding any defect in the Assignment Agreement
relating thereto. Each assignment and transfer shall be recorded in
the Register following receipt by the Administrative Agent of the
fully executed Assignment Agreement, together with the required
forms and certificates regarding tax matters and any fees payable
in connection therewith, in each case as provided in Section
10.6(d); provided
that the Administrative Agent shall not be required to accept such
Assignment Agreement or so record the information contained therein
if the Administrative Agent reasonably believes that such
Assignment Agreement lacks any written consent required by this
Section 10.6 or is otherwise not in proper form, it being
acknowledged that the Administrative Agent shall have no duty or
obligation (and shall incur no liability) with respect to obtaining
(or confirming the receipt) of any such written consent or with
respect to the form of (or any defect in) such Assignment
Agreement, any such duty and obligation being solely with the
assigning Lender and the assignee. Each assigning Lender and the
assignee, by its execution and delivery of an Assignment Agreement,
shall be deemed to have represented to the Administrative Agent
that all written consents required by this Section 10.6 with
respect thereto (other than the consent of the Administrative
Agent, the Borrower and the Issuing Banks, if applicable) have been
obtained and that such Assignment Agreement is otherwise duly
completed and in proper form. The date of such recordation of an
assignment and transfer is referred to herein as the
“Assignment Effective
Date” with respect thereto. Any request, authority or
consent of any Person that, at the time of making such request or
giving such authority or consent, is recorded in the Register as a
Lender shall be conclusive and binding on any subsequent holder,
assignee or transferee of the corresponding Commitments or
Loans.

 

 

 

 

 

(b) Right to Assign. Each Lender
shall have the right at any time to sell, assign or transfer all or
a portion of its rights and obligations under this Agreement,
including all or a portion of its Commitment or Loans or other
Obligations owing to it to:

 

(i) any Eligible
Assignee of the type referred to in clause (a) of the definition of
the term “Eligible Assignee” upon (A) the giving of
notice to the Borrower and the Administrative Agent; provided that in the case of
any assignment of a Revolving Commitment or any Revolving Exposure,
such Eligible Assignee is a Revolving Lender or an Affiliate of a
Revolving Lender and (B) in the case of assignments of Revolving
Commitments or a Revolving Lender’s obligations in respect of
its participation in Letters of Credit, the receipt of prior
written consent (each such consent not to be unreasonably withheld
or delayed) of each Issuing Bank; or

 

(ii) any Eligible
Assignee of the type referred to in clause (b) of the definition of
the term “Eligible Assignee” (or, in the case of any
assignment of a Revolving Commitment or a Revolving Exposure, any
Eligible Assignee that does not meet the requirements of clause (i)
above), upon (A) the giving of notice to the Borrower, the
Administrative Agent and, in the case of assignments of Revolving
Commitments or Revolving Loans, each Issuing Bank and
(B) except in the case of assignments made by or to any
Arranger or any Affiliate thereof during the primary syndication of
any credit facilities established hereunder, receipt of prior
written consent (each such consent not to be unreasonably withheld
or delayed) of (1) the Borrower, provided that the consent of
the Borrower to any assignment (x) shall not be required if an
Event of Default shall have occurred and is continuing pursuant to
Section 8.1(a), 8.1(f) or 8.1(g) and (y) shall be deemed to
have been granted unless the Borrower shall have objected thereto
by written notice to the Administrative Agent within 10 Business
Days after having received notice thereof, (2) the Administrative
Agent and (3) in the case of assignments of Revolving Commitments
or a Revolving Lender’s obligations in respect of its
participation in Letters of Credit, each Issuing Bank;

 

provided that:

 

(A) in the case of any
such assignment or transfer (other than to any Eligible Assignee
meeting the requirements of clause (i) above), the amount of the
Commitment or Loans of the assigning Lender subject thereto shall
not be less than (A) $2,500,000 in the case of assignments of any
Revolving Commitment or Revolving Loan or (B) $1,000,000 in the
case of assignments of any Term Loan Commitment or Term Loan of any
Class (with concurrent assignments to Eligible Assignees that are
Affiliates or Related Funds thereof to be aggregated for purposes
of the foregoing minimum assignment amount requirements) or, in
each case, such lesser amount as shall be agreed to by the Borrower
and the Administrative Agent or as shall constitute the aggregate
amount of the Commitments or Loans of the applicable Class of the
assigning Lender, provided that the consent of
the Borrower to any lesser amount (x) shall not be required if an
Event of Default shall have occurred and is continuing pursuant to
Section 8.1(a), 8.1(f) or 8.1(g) and (y) shall be deemed to have
been granted if notice shall be given to the Borrower requesting
its consent to a lesser amount and the Borrower shall not have
objected thereto by written notice to the Administrative Agent
within 10 Business Days after having received such
request;

 

(B) each partial
assignment or transfer shall be of a uniform, and not varying,
percentage of all rights and obligations of the assigning Lender
hereunder; provided
that a Lender may assign or transfer all or a portion of its
Commitment or of the Loans owing to it of any Class without
assigning or transferring any portion of its Commitment or of the
Loans owing to it, as the case may be, of any other Class;
and

 

 

 

 

 

(C) in connection with
any assignment of rights and obligations of any Defaulting Lender
hereunder, no such assignment shall be effective unless and until,
in addition to the other conditions thereto set forth herein, the
parties to the assignment shall make such additional payments to
the Administrative Agent in an aggregate amount sufficient, upon
distribution thereof as appropriate (which may be outright payment,
purchases by the assignee of participations or subparticipations,
or other compensating actions, including funding, with the consent
of the Borrower and the Administrative Agent, such Defaulting
Lender’s applicable Pro Rata Share of Revolving Loans
previously requested but not funded by such Defaulting Lender, to
each of which the applicable assignee and assignor hereby
irrevocably consent), to (1) pay and satisfy in full all payment
liabilities then owed by such Defaulting Lender to the
Administrative Agent, each Issuing Bank and each Revolving Lender
hereunder (and interest accrued thereon), and (2) acquire (and fund
as appropriate) its applicable Pro Rata Share of all Revolving
Loans and participations in Letters of Credit; provided that, notwithstanding
the foregoing, in the event that any assignment of rights and
obligations of any Defaulting Lender hereunder shall become
effective under applicable law without compliance with the
provisions of this clause (C), then the assignee of such interest
shall be deemed to be a Defaulting Lender for all purposes of this
Agreement until such compliance occurs.

 

(c) Mechanics. Assignments and
transfers of Loans and Commitments by Lenders shall be effected by
the execution and delivery to the Administrative Agent of an
Assignment Agreement. In connection with all assignments, there
shall be delivered to the Administrative Agent such forms,
certificates or other evidence, if any, with respect to United
States federal income tax withholding matters as the assignee
thereunder may be required to deliver pursuant to Section 2.19(g),
together with payment to the Administrative Agent by the assignor
or the assignee of a registration and processing fee of $3,500
(except that no such registration and processing fee shall be
payable (i) in connection with an assignment by or to any Arranger
or any Affiliate thereof during the primary syndication of any
credit facilities established hereunder, (ii) in the case of an
assignee that is an Affiliate or Related Fund of a Lender or a
Person under common management with a Lender, (iii) in
connection with an assignment by or to Goldman Sachs or any
Affiliate thereof or (iv) otherwise waived by the
Administrative Agent in its sole discretion).

 

(d) Representations and Warranties of
Assignee. Each Lender, upon execution and delivery hereof
(or of any Incremental Facility Agreement or Refinancing Facility
Agreement) or upon succeeding to an interest in the Commitments and
Loans, as the case may be, represents and warrants as of the
Closing Date (or, in the case of any Incremental Facility Agreement
or Refinancing Facility Agreement, as of the date of the
effectiveness thereof) or as of the applicable Assignment Effective
Date, as applicable, that (i) it is an Eligible Assignee, (ii) it
has experience and expertise in the making of or investing in
commitments or loans such as the applicable Commitments or Loans,
as the case may be, (iii) it will make or invest in, as the
case may be, its Commitments or Loans for its own account in the
ordinary course and without a view to distribution of such
Commitments or Loans within the meaning of the Securities Act or
the Exchange Act or other United States federal securities laws (it
being understood that, subject to the provisions of this Section
10.6, the disposition of such Commitments or Loans or any interests
therein shall at all times remain within its exclusive control) and
(iv) it will not provide any information obtained by it in its
capacity as a Lender to the Borrower, any Permitted Holder or any
Affiliate of the Borrower. In the case of any assignment by or to
any Vector Lender, the assignee or the assignor (in each case, if
not a Vector Lender), as the case may be, acknowledges and agrees
that in connection with such assignment, (A) such Vector Lender and
its Affiliates may have MNPI (as defined below), (B) such assignee
or assignor, as applicable, has independently, without reliance on
such Vector Lender, the Administrative Agent, the Arrangers or any
of their respective Affiliates, made its own analysis and
determination to participate in such assignment notwithstanding
such assignee’s or assignor’s lack of knowledge of any
such MNPI, (C) none of such Vector Lender, the Administrative
Agent, the Arrangers or any of their respective Affiliates shall
have any liability to such assignee or assignor, as the case may
be, and such assignee or assignor, as applicable, hereby waives and
releases, to the extent permitted by applicable law, any claims it
may have against such Vector Lender, the Administrative Agent, the
Arrangers and their respective Affiliates, under applicable law or
otherwise, with respect to the nondisclosure of any such MNPI and
(D) such MNPI may not be available to the Administrative
Agent, the Arrangers or the other Lenders. “MNPI” means material non-public
information (for purposes of United States federal, state or other
applicable securities laws) with respect to the Borrower, its
Subsidiaries and their respective Securities, it being understood
that MNPI may include information that is not available to Lenders,
including Private Lenders. It is understood and agreed that the
Administrative Agent and each Lender shall be entitled to rely, and
shall incur no liability for relying, upon the representations and
warranties and the acknowledgments and agreements of an assignee or
assignor, as applicable, set forth in this Section 10.6(e) and in
the applicable Assignment Agreement.

 

 

 

 

 

(e) Effect of Assignment. Subject
to the terms and conditions of this Section 10.6, as of the
Assignment Effective Date with respect to any assignment and
transfer of any Commitment or Loan, (i) the assignee thereunder
shall have the rights and obligations of a “Lender”
hereunder to the extent of its interest in such Commitment or Loan
as reflected in the Register and shall thereafter be a party hereto
and a “Lender” for all purposes hereof, (ii) the
assigning Lender thereunder shall, to the extent that rights and
obligations hereunder have been assigned and transferred to the
assignee, relinquish its rights (other than any rights that survive
the termination hereof under Section 10.8) and be released from its
obligations hereunder (and, in the case of an assignment covering
all the remaining rights and obligations of an assigning Lender
hereunder, such Lender shall cease to be a party hereto as a
“Lender” (but not, if applicable, as an Issuing Bank or
in any other capacity hereunder) on such Assignment Effective Date,
provided that such
assigning Lender shall continue to be entitled to the benefit of
all rights that survive the termination hereof under Section 10.8),
and provided
further that except
to the extent otherwise expressly agreed by the affected parties,
no assignment by a Defaulting Lender will constitute a waiver or
release of any claim of any party hereunder arising from such
Lender’s having been a Defaulting Lender, and (iii) the
assigning Lender shall, upon the effectiveness thereof or as
promptly thereafter as practicable, surrender its applicable Notes
(if any) to the Administrative Agent for cancellation, and
thereupon the Borrower shall issue and deliver new Notes, if so
requested by the assignee and/or assigning Lender, to such assignee
and/or to such assigning Lender, with appropriate insertions, to
reflect the new Commitments and/or outstanding Loans of the
assignee and/or the assigning Lender.

 

(f) Participations.

 

(i) Each Lender shall
have the right at any time to sell one or more participations to
any Eligible Assignee in all or any part of its Commitments or
Loans or in any other Obligation; provided that (A) such
Lender’s obligations under this Agreement shall remain
unchanged, (B) such Lender shall remain solely responsible to
the other parties hereto for the performance of such obligations
and (C) the Credit Parties, the Administrative Agent, the
Collateral Agent, the Issuing Banks and the other Lenders shall
continue to deal solely and directly with such Lender in connection
with such Lender’s rights and obligations under this
Agreement. Each Lender that sells a participation pursuant to this
Section 10.6(g) shall, acting solely for United States federal
income tax purposes as a non-fiduciary agent of the Borrower,
maintain a register on which it records the name and address of
each participant to which it has sold a participation and the
principal amounts (and stated interest) of each such
participant’s interest in the Commitments or Loans or other
rights and obligations of such Lender under this Agreement or any
other Credit Document (the “Participant Register”);
provided that no
Lender shall have any obligation to disclose all or any portion of
the Participant Register to any Person (including the identity of
any participant or any information relating to a
participant’s interest in any Commitments, Loans or other
rights and obligations under any Credit Document), except to the
extent that such disclosure is necessary to establish that such
Commitment, Loan or other right or obligation is in registered form
under Section 5f.103-1(c) of the United States Treasury
Regulations. Unless otherwise required by the IRS, any disclosure
required by the foregoing sentence shall be made by the relevant
Lender directly and solely to the IRS. The entries in the
Participant Register shall be conclusive absent manifest error, and
such Lender shall treat each Person whose name is recorded in the
Participant Register as the owner of such participation for all
purposes under this Agreement, notwithstanding any notice to the
contrary. For the avoidance of doubt, the Administrative Agent (in
its capacity as Administrative Agent) shall have no responsibility
for maintaining a Participant Register.

 

 

 

 

 

(ii) The holder of any
such participation, other than an Affiliate of the Lender granting
such participation, shall not be entitled to require such Lender to
take or omit to take any action hereunder, except that any
participation agreement may provide that the participant’s
consent must be obtained with respect to the consent of such Lender
to any waiver, amendment, modification or consent that is described
in Section 10.5(b) that affects such participant or requires the
approval of all the Lenders.

 

(iii) The Credit Parties
agree that each participant shall be entitled to the benefits of
Sections 2.17(c), 2.18 and 2.19 (subject to the requirements and
limitations therein, including the requirements under Section
2.19(g) (it being understood that the documentation required under
Section 2.19(g) shall be delivered to the participating Lender)) to
the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to Section 10.6(c); provided that such participant
(x) agrees to be subject to the provisions of Sections 2.20 and
2.22 as if it were an assignee under Section 10.6(c) and (y) such
participant shall not be entitled to receive any greater payment
under Section 2.18 or 2.19 with respect to any participation than
the applicable Lender would have been entitled to receive with
respect to such participation sold to such participant, except to
the extent such entitlement to receive a greater payment results
from a Change in Law that occurs after the participant acquired the
applicable participation. To the extent permitted by law, each
participant also shall be entitled to the benefits of Section 10.4
as though it were a Lender, provided that such participant
agrees to be subject to Section 2.16 as though it were a
Lender.

 

(g) Certain Other Assignments and
Participations. In addition to any other assignment or
participation permitted pursuant to this Section 10.6, any Lender
may assign, pledge and/or grant a security interest in all or any
portion of its Loans or the other Obligations owed to such Lender,
and its Notes, if any, to secure obligations of such Lender,
including (i) to any Federal Reserve Bank as collateral security
pursuant to Regulation A of the Board of Governors and any
operating circular issued by any Federal Reserve Bank or to any
other central bank and (ii) in the case of any Vector Lender,
pursuant to the Vector Facility Arrangements; provided that no Lender, as
between the Borrower and such Lender, shall be relieved of any of
its obligations hereunder as a result of any such assignment and
pledge; and provided further that in no event shall
the applicable Federal Reserve Bank, other central bank, pledgee or
trustee be considered to be a “Lender”
hereunder.

 

(h) Term Loan Repurchases.
Notwithstanding anything to the contrary contained in this Section
10.6 or any other provision of this Agreement, the Borrower may
repurchase outstanding Term Loans, and each Term Lender shall have
the right at any time to sell, assign or transfer all or a portion
of its Term Loans to the Borrower, on the following
basis:

 

 

 

 

 

(i) Term Loan Repurchase Auctions.
The Borrower may conduct one or more modified Dutch auctions (each,
an “Auction”) to
repurchase all or any portion of the Term Loans of any Class,
provided that (A)
the Borrower delivers a written notice of such Auction to the
Auction Manager and the Administrative Agent (for distribution to
the Term Lenders of such Class) no later than 12:00
p.m. (New York City
time) at least five Business Days in advance of a proposed
commencement date of such Auction (or such shorter period as may be
acceptable to the Administrative Agent), which notice shall specify
(x) the dates on which such Auction will commence and
conclude, (y) the maximum principal amount of Term Loans and the
Class thereof that the Borrower desires to repurchase in such
Auction and (z) the range of discounts to par at which the Borrower
would be willing to repurchase such Term Loans, (B) the maximum
dollar amount of such Auction shall be no less than an aggregate
$10,000,000 or an integral multiple of $1,000,000 in excess
thereof, (C) such Auction shall be open for at least two Business
Days after the date of the commencement thereof, (D) such Auction
shall be open for participation by all the Term Lenders of such
Class on a ratable basis, (E) a Term Lender of such Class that
elects to participate in such Auction will be permitted to tender
for repurchase all or a portion of such Lender’s Term Loans
of such Class, (F) each repurchase of Term Loans of any Class shall
be of a uniform, and not varying, percentage of all rights of the
assigning Term Lender hereunder with respect thereto (and shall be
allocated among the Term Loans of such Class of such Term Lender in
a manner that would result in such Term Lender’s remaining
Term Loans of such Class being included in each Term Borrowing in
accordance with its applicable Pro Rata Share thereof), (G) at the
time of the commencement and conclusion of such Auction, no Event
of Default shall have occurred and be continuing, (H) the Borrower
shall not use the proceeds of Revolving Loans to make such
repurchase and (I) such Auction shall be conducted pursuant to such
procedures as the Auction Manager may establish, so long as such
procedures are consistent with this Section 10.6(i) and are
reasonably acceptable to the Administrative Agent and the Borrower.
In connection with any Auction, the Auction Manager and the
Administrative Agent may request one or more certificates of an
Authorized Officer of the Borrower as to the satisfaction of the
conditions set forth in clauses (G) and (H)
above.

 

(ii) Open Market Purchases. The
Borrower may repurchase all or any portion of the Term Loans of any
Class on a non pro rata basis through open market purchases (each
an “Open Market
Purchase”), provided that (A) the Borrower
delivers a written notice of such Open Market Purchase to the
Administrative Agent promptly upon consummation thereof, (B) each
repurchase of Term Loans of any Class shall be of a uniform, and
not varying, percentage of all rights of the assigning Term Lender
hereunder with respect thereto (and shall be allocated among the
Term Loans of such Class of such Term Lender in a manner that would
result in such Term Lender’s remaining Term Loans of such
Class being included in each Term Borrowing in accordance with its
applicable Pro Rata Share thereof), (C) at the time of and
immediately following such Open Market Purchase, no Event of
Default shall have occurred and be continuing and (D) the Borrower
shall not use the proceeds of Revolving Loans to make such
repurchase. In connection with any Open Market Purchase, the
Administrative Agent may request one or more certificates of an
Authorized Officer of the Borrower as to the satisfaction of the
conditions set forth in clauses (C) and (D)
above.

 

(iii) Concerning the Repurchased Term
Loans. Repurchases by the Borrower of Term Loans pursuant to
this Section 10.6(i) shall not constitute voluntary prepayments for
purposes of Section 2.11 or 2.13. The aggregate principal amount of
the Term Loans of any Class repurchased by the Borrower pursuant to
this Section 10.6(i) shall be applied to reduce the subsequent
Installments to be paid pursuant to Section 2.11 with respect
to Term Loans of such Class in an inverse order of maturity. Upon
the repurchase by the Borrower pursuant to this
Section 10.6(i) of any Term Loans, such Term Loans shall,
without further action by any Person, automatically be deemed
cancelled and no longer outstanding (and may not be resold by the
Borrower) for all purposes of this Agreement and the other Credit
Documents, including with respect to (A) the making of, or the
application of, any payments to the Lenders under this Agreement or
any other Credit Document, (B) the making of any request, demand,
authorization, direction, notice, consent or waiver under this
Agreement or any other Credit Document or (C) the
determination of Requisite Lenders, or for any similar or related
purpose, under this Agreement or any other Credit Document. The
Administrative Agent is authorized to make appropriate entries in
the Register to reflect any cancelation of the Term Loans
repurchased and cancelled pursuant to this Section 10.6(i).
Any payment made by the Borrower in connection with a repurchase
permitted by this Section 10.6(i) shall not be subject to the
provisions of Section 2.15, 2.16 or 2.17(c). Failure by the
Borrower to make any payment to a Lender required to be made in
consideration of a repurchase of Term Loans permitted by this
Section 10.6(i) shall not constitute a Default or an Event of
Default under Section 8.1(a). Each Term Lender shall, to the extent
that its Term Loans shall have been repurchased and assigned to the
Borrower pursuant to this Section 10.6(i), relinquish its rights in
respect thereof.

 

 

 

 

 

10.7. Independence
of Covenants. All covenants hereunder shall be given independent
effect so that if a particular action or condition is not permitted
by any of such covenants, the fact that it would be permitted by an
exception to, or would otherwise be within the limitations of,
another covenant shall not avoid the occurrence of a Default or an
Event of Default if such action is taken or condition
exists.

 

10.8. Survival
of Representations, Warranties and Agreements. All covenants,
agreements, representations and warranties made by the Credit
Parties in the Credit Documents and in the certificates or other
documents delivered in connection with or pursuant to this
Agreement or any other Credit Document shall be considered to have
been relied upon by the other parties hereto and shall survive the
execution and delivery of the Credit Documents and the making of
any Loans and issuance of any Letters of Credit, regardless of any
investigation made by any such other party or on its behalf and
notwithstanding that any Agent, Arranger, Lender or Issuing Bank
may have had notice or knowledge of any Default or Event of Default
or incorrect representation or warranty at the time any Credit
Document is executed and delivered or any credit is extended
hereunder, and shall continue in full force and effect as long as
the principal of or any accrued interest on any Loan or any fee or
any other amount payable under this Agreement is outstanding and
unpaid or any Letter of Credit is outstanding and so long as the
Commitments have not expired or terminated. Notwithstanding the
foregoing or anything else to the contrary set forth in this
Agreement or any other Credit Document, in the event that, in
connection with the refinancing or repayment in full of the credit
facilities provided for herein, any Issuing Bank at its option and
in its sole discretion shall have provided to the Administrative
Agent a written consent to the release of the Revolving Lenders
from their obligations hereunder with respect to any Letter of
Credit issued by such Issuing Bank (whether as a result of the
obligations of the Borrower (and any other account party) in
respect of such Letter of Credit having been collateralized in full
by a deposit of cash with such Issuing Bank, or being supported by
a letter of credit that names such Issuing Bank as the beneficiary
thereunder, or otherwise), then from and after such time such
Letter of Credit shall cease to be a “Letter of Credit”
outstanding hereunder for all purposes of this Agreement and the
other Credit Documents (other than Sections 2.18, 2.19, 10.2 and
10.3 (and the defined terms used in such Sections)), and the
Revolving Lenders shall be deemed to have no participations in such
Letter of Credit, and no obligations with respect thereto, under
Section 2.3(e). The provisions of Sections 2.17(c), 2.18,
2.19, 9, 10.2, 10.3 and 10.4 shall survive and remain in full force
and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Loans or the termination
of this Agreement or any provision hereof.

 

10.9. No
Waiver; Remedies Cumulative. No failure or delay on the part of any
Agent, Arranger, Lender or Issuing Bank in the exercise of any
power, right or privilege hereunder or under any other Credit
Document shall impair such power, right or privilege or be
construed to be a waiver thereof or of any Default or Event of
Default or acquiescence therein, nor shall any single or partial
exercise of any such power, right or privilege, or any abandonment
or discontinuance of steps to enforce such power, right or
privilege, preclude any other or further exercise thereof or the
exercise of any other power, right or privilege. The powers,
rights, privileges and remedies of the Agents, the Arrangers, the
Lenders and the Issuing Banks hereunder and under the other Credit
Documents are cumulative and shall be in addition to and
independent of all powers, rights, privileges and remedies they
would otherwise have. Without limiting the generality of the
foregoing, the execution and delivery of this Agreement or the
making of any Loan hereunder shall not be construed as a waiver of
any Default or Event of Default, regardless of whether any Agent,
Arranger, Lender or Issuing Bank may have had notice or knowledge
of such Default or Event of Default at the time.

 

10.10. Marshalling;
Payments Set Aside. None of the Agents, the Arrangers, the Lenders
or the Issuing Banks shall be under any obligation to marshal any
assets in favor of any Credit Party or any other Person or against
or in payment of any or all of the Obligations. To the extent that
any Credit Party makes a payment or payments to any Agent,
Arranger, Lender or Issuing Bank (or to the Administrative Agent or
the Collateral Agent, on behalf of any Agent, Arranger, Lender or
Issuing Bank), or any Agent, Arranger, Lender or Issuing Bank
enforces any security interests or exercises any right of set-off,
and such payment or payments or the proceeds of such enforcement or
set-off or any part thereof are subsequently invalidated, declared
to be fraudulent, preferential or at undervalue, set aside and/or
required to be repaid to a trustee, receiver or any other party
under any Debtor Relief Laws, any other state or federal law,
common law or any equitable cause, then, to the extent of such
recovery, the obligation or part thereof originally intended to be
satisfied, and all Liens, rights and remedies therefor or related
thereto, shall be revived and continued in full force and effect as
if such payment or payments had not been made or such enforcement
or set-off had not occurred.

 

 

 

 

 

10.11. Severability.
In case any provision in or obligation hereunder or under any other
Credit Document shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the
remaining provisions or obligations, or of such provision or
obligation in any other jurisdiction, shall not in any way be
affected or impaired thereby.

 

10.12. Independent
Nature of Lenders’ Rights. Nothing contained herein or in any
other Credit Document, and no action taken by the Lenders pursuant
hereto or thereto, shall be deemed to constitute the Lenders as a
partnership, an association, a joint venture or any other kind of
entity. The amounts payable at any time hereunder to each Lender
shall be a separate and independent debt, and each Lender shall be
entitled to protect and enforce its rights arising hereunder and it
shall not be necessary for any other Lender to be joined as an
additional party in any proceeding for such purpose.

 

10.13. Headings.
Section headings herein are included herein for convenience of
reference only and shall not constitute a part hereof for any other
purpose or be given any substantive effect.

 

10.14. APPLICABLE
LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER (INCLUDING ANY CLAIMS SOUNDING IN CONTRACT LAW OR TORT
LAW ARISING OUT OF THE SUBJECT MATTER HEREOF AND ANY DETERMINATIONS
WITH RESPECT TO POST-JUDGMENT INTEREST) SHALL BE GOVERNED BY, AND
SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES
THEREOF THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN
THE LAW OF THE STATE OF NEW YORK.

 

10.15. CONSENT
TO JURISDICTION. SUBJECT TO CLAUSE (E) BELOW, ALL JUDICIAL
PROCEEDINGS BROUGHT AGAINST ANY PARTY HERETO ARISING OUT OF OR
RELATING HERETO OR ANY OTHER CREDIT DOCUMENT, OR ANY OF THE
OBLIGATIONS, SHALL BE BROUGHT EXCLUSIVELY IN ANY FEDERAL COURT OF
THE UNITED STATES OF AMERICA SITTING IN THE BOROUGH OF MANHATTAN
OR, IF THAT COURT DOES NOT HAVE SUBJECT MATTER JURISDICTION, IN ANY
STATE COURT LOCATED IN THE CITY AND COUNTY OF NEW YORK. BY
EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY HERETO, FOR
ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (A)
ACCEPTS GENERALLY AND UNCONDITIONALLY THE EXCLUSIVE JURISDICTION
AND VENUE OF SUCH COURTS (SUBJECT TO CLAUSE (E) BELOW); (B) WAIVES
ANY DEFENSE OF FORUM NON CONVENIENS; (C) AGREES THAT SERVICE OF ALL
PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY
REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE
APPLICABLE PARTY AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION
10.1; (D) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (C) ABOVE IS
SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE
CREDIT PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND
OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY
RESPECT; AND (E) AGREES THAT THE AGENTS, THE ARRANGERS, THE LENDERS
AND THE ISSUING BANKS RETAIN THE RIGHT TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY
CREDIT PARTY IN THE COURTS OF ANY OTHER JURISDICTION IN CONNECTION
WITH THE EXERCISE OF ANY RIGHTS UNDER ANY CREDIT DOCUMENT OR ANY
EXERCISE OF REMEDIES IN RESPECT OF COLLATERAL OR THE ENFORCEMENT OF
ANY JUDGMENT, AND HEREBY SUBMITS TO THE JURISDICTION OF, AND
CONSENTS TO VENUE IN, ANY SUCH COURT.

 

 

 

 

 

10.16. WAIVER
OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE
ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED
UPON OR ARISING HEREUNDER OR UNDER ANY OF THE OTHER CREDIT
DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT
MATTER OF THIS LOAN TRANSACTION OR THE LENDER/BORROWER RELATIONSHIP
THAT IS BEING ESTABLISHED. THE SCOPE OF THIS WAIVER IS INTENDED TO
BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN
ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS
TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY
HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO
ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON
THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL
CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS.
EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS
REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY
AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY
NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL
WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 10.16 AND
EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL
APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS HERETO OR ANY OF THE OTHER CREDIT DOCUMENTS OR TO ANY
OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS MADE HEREUNDER.
IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A
WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

10.17. Confidentiality.
Each Agent and each Lender (which term shall for the purposes of
this Section 10.17 include each Issuing Bank) shall hold all
Confidential Information (as defined below) obtained by such Agent
or such Lender in accordance with such Agent’s and such
Lender’s customary procedures for handling confidential
information of such nature, it being understood and agreed by the
Borrower that, in any event, the Administrative Agent and the
Collateral Agent may disclose Confidential Information to the
Lenders and the other Agents and that each Agent and each Lender
may disclose Confidential Information (a) to Affiliates of such
Agent or Lender and to its and their respective Related Parties,
independent auditors and other advisors, experts or agents who need
to know such Confidential Information (and to other Persons
authorized by a Lender or Agent to organize, present or disseminate
such information in connection with disclosures otherwise made in
accordance with this Section 10.17) (it being understood that the
Persons to whom such disclosure is made will be informed of the
confidential nature of such Confidential Information and instructed
to keep such Confidential Information confidential or shall
otherwise be subject to an obligation of confidentiality),
(b) to any potential or prospective assignee, transferee or
participant in connection with the contemplated assignment,
transfer or participation of any Loans or other Obligations or any
participations therein or to any direct or indirect contractual
counterparties (or the professional advisors thereto) to any swap
or derivative transaction relating to the Borrower or any of its
Affiliates and their obligations (provided that such assignees,
transferees, participants, counterparties and advisors are advised
of and agree to be bound by either the provisions of this Section
10.17 or other provisions at least as restrictive as this
Section 10.17 or otherwise reasonably acceptable to the
Administrative Agent, the Collateral Agent or the applicable
Lender, as the case may be, and the Borrower, including pursuant to
the confidentiality terms set forth in the Confidential Information
Memorandum or other marketing materials relating to the credit
facilities governed by this Agreement; and provided further that without the
Borrower’s prior written consent, no such disclosure may be
made to any Disqualified Institution), (c) on a confidential basis,
to any rating agency, (d) on a confidential basis, to the CUSIP
Service Bureau or any similar agency in connection with the
issuance and monitoring of CUSIP numbers with respect to the Loans,
(e) for purposes of establishing a “due diligence”
defense or in connection with the exercise of any remedies
hereunder or under any other Credit Document, (f) as required by
law or pursuant to legal or judicial process (in which case, unless
specifically prohibited by applicable law or court order, such
Agent or such Lender shall make reasonable efforts to notify the
Borrower promptly thereof), (g) as required or requested by any
Governmental Authority or by any regulatory or quasi-regulatory
authority (including any self-regulatory organization) having
jurisdiction or claiming to have jurisdiction over such Agent or
such Lender or any of their respective Affiliates, (h) received by
it on a non-confidential basis from a source (other than the
Borrower or its Affiliates or Related Parties) not known by it to
be prohibited from disclosing such information to such persons by a
legal, contractual or fiduciary obligation, (i) to the extent that
such information was already in possession of such Agent or such
Lender, as the case may be, or any of its Affiliates or is
independently developed by it or any of its Affiliates and (j) with
the consent of the Borrower. For purposes of the foregoing,
“Confidential Information” means, with respect to any
Agent or any Lender, any non-public information regarding the
business, assets, liabilities and operations of the Borrower and
the Subsidiaries obtained by such Agent or Lender under the terms
of this Agreement and identified as confidential by the Borrower.
In addition, each Agent and each Lender may disclose the existence
of this Agreement and the information about this Agreement to
market data collectors, similar services providers to the lending
industry, and service providers to the Agents and the Lenders in
connection with the administration and management of this Agreement
and the other Credit Documents. It is agreed that, notwithstanding
the restrictions of any prior confidentiality agreement binding on
any Arranger or any Agent, such parties may disclose
Confidential Information as provided in this
Section 10.17.

 

 

 

 

 

10.18. Usury
Savings Clause. Notwithstanding any other provision herein, the
aggregate interest rate charged with respect to any of the
Obligations, including all charges or fees in connection therewith
deemed in the nature of interest under applicable law shall not
exceed the Highest Lawful Rate. If the rate of interest (determined
without regard to the preceding sentence) under this Agreement at
any time exceeds the Highest Lawful Rate, the outstanding amount of
the Loans made hereunder shall bear interest at the Highest Lawful
Rate until the total amount of interest due hereunder equals the
amount of interest that would have been due hereunder if the stated
rates of interest set forth in this Agreement had at all times been
in effect. In addition, if when the Loans made hereunder are repaid
in full the total interest due hereunder (taking into account the
increase provided for above) is less than the total amount of
interest that would have been due hereunder if the stated rates of
interest set forth in this Agreement had at all times been in
effect, then to the extent permitted by law, the Borrower shall pay
to the Administrative Agent an amount equal to the difference
between the amount of interest paid and the amount of interest that
would have been paid if the Highest Lawful Rate had at all times
been in effect. Notwithstanding the foregoing, it is the intention
of the Lenders and the Borrower to conform strictly to any
applicable usury laws. Accordingly, if any Lender contracts for,
charges, or receives any consideration that constitutes interest in
excess of the Highest Lawful Rate, then any such excess shall be
cancelled automatically and, if previously paid, shall at such
Lender’s option be applied to the outstanding amount of the
Loans made hereunder or be refunded to the Borrower.

 

10.19. Counterparts.
This Agreement may be executed in any number of counterparts, each
of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but
one and the same instrument. Delivery of an executed counterpart of
a signature page of this Agreement by facsimile or in electronic
format (i.e., “pdf” or “tif”) shall be
effective as delivery of a manually executed counterpart of this
Agreement.

 

10.20. Effectiveness;
Entire Agreement. Subject to Section 3, this Agreement shall become
effective when it shall have been executed by the Administrative
Agent and there shall have been delivered to the Administrative
Agent counterparts hereof that, when taken together, bear the
signatures of each of the other parties hereto. THIS AGREEMENT AND
THE OTHER CREDIT DOCUMENTS CONSTITUTE THE ENTIRE CONTRACT AMONG THE
PARTIES RELATING TO THE SUBJECT MATTER HEREOF AND SUPERSEDE ANY AND
ALL PREVIOUS AGREEMENTS AND UNDERSTANDINGS, ORAL OR WRITTEN,
RELATING TO THE SUBJECT MATTER HEREOF (BUT DO NOT SUPERSEDE ANY
PROVISIONS OF ANY ENGAGEMENT LETTER OR FEE LETTER BETWEEN OR AMONG
ANY CREDIT PARTIES AND ANY AGENT OR ARRANGER OR ANY AFFILIATE OF
ANY OF THE FOREGOING THAT BY THE TERMS OF SUCH DOCUMENTS ARE STATED
TO SURVIVE THE EFFECTIVENESS OF THIS AGREEMENT, ALL OF WHICH
PROVISIONS SHALL REMAIN IN FULL FORCE AND EFFECT).

 

10.21. PATRIOT
Act. Each Lender and the Administrative Agent (for itself and not
on behalf of any Lender) hereby notifies each Credit Party that
pursuant to the requirements of the PATRIOT Act it is required to
obtain, verify and record information that identifies each Credit
Party, which information includes the name and address of each
Credit Party and other information that will allow such Lender or
the Administrative Agent, as applicable, to identify such Credit
Party in accordance with the PATRIOT Act.

 

 

 

 

 

10.22. Electronic
Execution of Assignments. The words “execution”,
“signed”, “signature” and words of like
import in any Assignment Agreement shall be deemed to include
electronic signatures or the keeping of records in electronic form,
each of which shall be of the same legal effect, validity or
enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent
and as provided for in any applicable law, including the Federal
Electronic Signatures in Global and National Commerce Act, the New
York State Electronic Signatures and Records Act, or any other
similar state laws based on the Uniform Electronic Transactions
Act.

 

10.23. No
Fiduciary Duty. Each Agent, each Arranger, each Lender, each
Issuing Bank and their respective Affiliates (collectively, solely
for purposes of this paragraph, the “Lenders”) may have
economic interests that conflict with those of the Credit Parties,
their equityholders and/or their Affiliates. Each Credit Party
agrees that nothing in the Credit Documents or otherwise will be
deemed to create an advisory, fiduciary or agency relationship or
fiduciary or other implied duty between any Agent, Arranger or
Lender, on the one hand, and such Credit Party or its equityholders
or its Affiliates, on the other. The Credit Parties acknowledge and
agree that (a) the transactions contemplated by the Credit
Documents (including the exercise of rights and remedies hereunder
and thereunder) are arm’s-length commercial transactions
between the Agents, Arrangers and Lenders, on the one hand, and the
Credit Parties, on the other, and (b) in connection therewith and
with the process leading thereto, (i) no Agent, Arranger or Lender
has assumed an advisory or fiduciary responsibility in favor of any
Credit Party, its equityholders or its Affiliates with respect to
the transactions contemplated hereby (or the exercise of rights or
remedies with respect thereto) or the process leading thereto
(irrespective of whether any Agent, Arranger or Lender has advised,
is currently advising or will advise any Credit Party, its
equityholders or its Affiliates on other matters) or any other
obligation to any Credit Party except the obligations expressly set
forth in the Credit Documents and (ii) each Agent, Arranger and
Lender is acting solely as principal and not as the agent or
fiduciary of any Credit Party, its management, equityholders,
creditors or any other Person. Each Credit Party acknowledges and
agrees that it has consulted its own legal and financial advisors
to the extent it has deemed appropriate and that it is responsible
for making its own independent judgment with respect to such
transactions and the process leading thereto. Each Credit Party
agrees that it will not assert, and hereby waives to the maximum
extent permitted by applicable law, any claim that any Agent,
Arranger or Lender has rendered advisory services of any nature or
respect, or owes a fiduciary or similar duty to such Credit Party,
in connection with any such transaction or the process leading
thereto.

 

10.24. Permitted
Intercreditor Agreements. Each of the Lenders and the other Secured
Parties acknowledges that obligations of the Credit Parties under
the Second Lien Credit Agreement are, and under any other Permitted
Second Lien Indebtedness, any Permitted Credit Agreement
Refinancing Indebtedness or any Permitted Incremental Equivalent
Indebtedness may be, secured by Liens on assets of the Credit
Parties that constitute Collateral and that the relative Lien
priority and other creditor rights of the Secured Parties and the
secured parties under the Second Lien Credit Agreement will be set
forth in the Intercreditor Agreement, 
that the relative Lien priority and other creditor rights of the
Secured Parties and the secured parties under the Bridge Credit
Agreement will be set forth in the Bridge Intercreditor
Agreement and the relative Lien priority and other creditor
rights of the Secured Parties and the secured parties under any
other Permitted Second Lien Indebtedness, any Permitted Credit
Agreement Refinancing Indebtedness or any Permitted Incremental
Equivalent Indebtedness will be set forth in the applicable
Permitted Intercreditor Agreement. Each of the Lenders and the
other Secured Parties hereby acknowledges that it has received a
copy of the Intercreditor Agreement. Each of the Lenders and the
other Secured Parties hereby irrevocably authorizes and directs the
Administrative Agent and the Collateral Agent to execute and
deliver, in each case on behalf of such Secured Party and without
any further consent, authorization or other action by such Secured
Party, (i) on the Closing Date, the Intercreditor Agreement
and any documents relating thereto and,
(ii) 
on the Amendment No. 1 Effective Date, the Bridge Intercreditor
Agreement and (iii) from time to time upon the request
of the Borrower, in connection with the establishment, incurrence,
amendment, refinancing or replacement of any Permitted Second Lien
Indebtedness, any Permitted Credit Agreement Refinancing
Indebtedness or any Permitted Incremental Equivalent Indebtedness,
any Permitted Intercreditor Agreement (it being understood that the
Administrative Agent and the Collateral Agent are hereby authorized
and directed to determine the terms and conditions of any such
Permitted Intercreditor Agreement as contemplated by the definition
of the terms “Intercreditor Agreement”,
“Bridge
Intercreditor Agreement”, “Junior Lien
Intercreditor Agreement” and “Pari Passu Intercreditor
Agreement”) and any documents relating thereto.

 

 

 

 

 

(a) Each of the Lenders
and the other Secured Parties hereby irrevocably (i) consents to
the treatment of Liens to be provided for under any Permitted
Intercreditor Agreement, (ii) agrees that, upon the execution and
delivery thereof, such Secured Party will be bound by the
provisions of any Permitted Intercreditor Agreement as if it were a
signatory thereto and will take no actions contrary to the
provisions of any Permitted Intercreditor Agreement, (iii) agrees
that no Secured Party shall have any right of action whatsoever
against the Administrative Agent or any Collateral Agent as a
result of any action taken by the Administrative Agent or the
Collateral Agent pursuant to this Section 10.24 or in accordance
with the terms of any Permitted Intercreditor Agreement,
(iv) authorizes and directs the Administrative Agent and the
Collateral Agent to carry out the provisions and intent of each
such document and (v) authorizes and directs the Administrative
Agent and the Collateral Agent to take such actions as shall be
required to release Liens on the Collateral in accordance with the
terms of any Permitted Intercreditor Agreement.

 

(b) Each of the Lenders
and the other Secured Parties hereby irrevocably further authorizes
and directs the Administrative Agent and the Collateral Agent to
execute and deliver, in each case on behalf of such Secured Party
and without any further consent, authorization or other action by
such Secured Party, any amendments, supplements or other
modifications of any Permitted Intercreditor Agreement that the
Borrower may from time to time request and that are reasonably
acceptable to the Administrative Agent (i) to give effect to any
establishment, incurrence, amendment, extension, renewal,
refinancing or replacement of any Obligations, any Permitted Second
Lien Indebtedness, any Permitted Credit Agreement Refinancing
Indebtedness or any Permitted Incremental Equivalent Indebtedness,
(ii) to confirm for any party that such Permitted Intercreditor
Agreement is effective and binding upon the Administrative Agent
and the Collateral Agent on behalf of the Secured Parties or (iii)
to effect any other amendment, supplement or modification so long
as the resulting agreement would constitute a Permitted
Intercreditor Agreement if executed at such time as a new
agreement.

 

(c) Each of the Lenders
and the other Secured Parties hereby irrevocably further authorizes
and directs the Administrative Agent and the Collateral Agent to
execute and deliver, in each case on behalf of such Secured Party
and without any further consent, authorization or other action by
such Secured Party, any amendments, supplements or other
modifications of any Collateral Document to add or remove any
legend that may be required pursuant to any Permitted Intercreditor
Agreement.

 

(d) Each of the
Administrative Agent and the Collateral Agent shall have the
benefit of the provisions of Sections 9, 10.2 and 10.3 with respect
to all actions taken by it pursuant to this Section 10.24 or
in accordance with the terms of any Permitted Intercreditor
Agreement to the full extent thereof.

 

(e) The provisions of
this Section 10.24 are intended as an inducement to the secured
parties under the Second Lien Credit Documents or under any other
Permitted Second Lien Indebtedness Documents, any Permitted Credit
Agreement Refinancing Indebtedness or Permitted Incremental
Equivalent Indebtedness to extend credit to the Borrower thereunder
and such secured parties are intended third party beneficiaries of
such provisions.

 

 

 

 

 

10.25. Acknowledgement
and Consent to Bail-In of EEA Financial Institutions.
Notwithstanding anything to the contrary in any Credit Document or
in any other agreement, arrangement or understanding among the
parties hereto, each party hereto acknowledges that any liability
of any EEA Financial Institution arising under any Credit Document,
to the extent such liability is unsecured, may be subject to the
Write-Down and Conversion Powers of an EEA Resolution Authority and
agrees and consents to, and acknowledges and agrees to be bound
by:

 

(a) the application of
any Write-Down and Conversion Powers by an EEA Resolution Authority
to any such liabilities arising hereunder which may be payable to
it by any party hereto that is an EEA Financial Institution;
and

 

(b) the effects of any
Bail-In Action on any such liability, including, if
applicable:

 

(i) a reduction in full
or in part or cancellation of any such liability;

 

(ii) a conversion of
all, or a portion of, such liability into shares or other
instruments of ownership in such EEA Financial Institution, its
parent undertaking, or a bridge institution that may be issued to
it or otherwise conferred on it, and that such shares or other
instruments of ownership will be accepted by it in lieu of any
rights with respect to any such liability under this Agreement or
any other Credit Document; or

 

(iii) the variation of
the terms of such liability in connection with the exercise of the
Write-Down and Conversion Powers of any EEA Resolution
Authority.

 

[Remainder of page
intentionally left blank]

 

 

IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be duly executed and delivered by
their respective officers thereunto duly authorized as of the date
first written above.

 

	
FUSION CONNECT, INC., as
Borrower

	
By:

	

/s/ Kevin Dotts

	
 

	
Name: Kevin
DottsKeith
Soldan

	
 

	
Title: Executive
Vice President, Chief Financial Officer and
Principal Accounting Officer 

 

	
FUSION
NBS ACQUISITION CORP.

FUSION
LLC

FUSION
BCHI ACQUISITION LLC

FUSION CB HOLDINGS, INC.

FUSION CLOUD SERVICES LLC

BIRCHFUSION
COMMUNICATIONS, LLC

CBEYOND, INC.

CBEYOND COMMUNICATIONS, LLC

BIRCHFUSION MANAGEMENT
SERVICES LLC

BIRCHFUSION TELECOM,
LLC

BIRCHFUSION TEXAS
HOLDINGS, INC.

BIRCHFUSION TELECOM OF
KANSAS, LLC

BIRCHFUSION TELECOM OF
OKLAHOMA, LLC

BIRCHFUSION TELECOM OF
MISSOURI, LLC

BIRCHFUSION TELECOM OF
TEXAS LTD., L.L.P.

BIRCAN
HOLDINGS, LLC

PRIMUSFUSION PM
HOLDINGS, INC.

FUSION MPHC HOLDING CORP.

FUSION CLOUD COMPANY LLC

FUSION MPHC ACQUISITION
CORPGROUP,
INC.,, as Guarantors 

 

	
By:

	

/s/ Kevin Dotts

	
 

	
Name: Kevin
DottsKeith
Soldan

	
 

	
Title: Executive
Vice President, Chief Financial Officer and
Principal Accounting Officer

 

 

 

[Signature Page to
Fusion First Lien Credit and Guaranty Agreement]

 

 

	
WILMINGTON TRUST, NATIONAL ASSOCIATION,
as the Administrative Agent

and the Collateral
Agent,

	
By:

	

/s/ Jamie Roseberg

	
 

	
Name: Jamie
Roseberg

Title: Banking
Officer

 

 

[Signature Page to
Fusion First Lien Credit and Guaranty Agreement]

 

 

	
GOLDMAN SACHS LENDING PARTNERS LLC, as a
Lender,

	
By:

	
/s/

	
 

	
Authorized
Signatory

 

 

 

 

[Signature Page to
Fusion First Lien Credit and Guaranty Agreement]

 

 

	
MORGAN STANLEY SENIOR FUNDING, INC., as
a Lender,

 

	
By

	
 

	
/s/ Reagan
Philipp

	
 

	
Name: Reagan
Philipp

	
 

	
Title: Authorized
Signatory

 

 

[Signature Page to
Fusion First Lien Credit and Guaranty Agreement]

 

	
MUFG UNION BANK, N.A., as a
Lender,

 

	
By

	
 

	
/s/ Matthew
Hillman

	
 

	
Name: Matthew
Hillman

	
 

	
Title: Vice
President

 

 

 

 

 Annex
II – Amended Pledge and Security Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 FIRST
LIEN PLEDGE AND SECURITY AGREEMENT

 

 

 

dated
as of

 

May 4,
2018,

 

among

 

FUSION
CONNECT, INC.,

 

 

THE
OTHER GRANTORS PARTY HERETO

 

and

 

WILMINGTON
TRUST, NATIONAL ASSOCIATION,

 

as
Collateral Agent

 

 

 

EXECUTION VERSION

TABLE
OF CONTENTS

 

ARTICLE I

 

 

ARTICLE
I                                 

DEFINITIONS                                 

1

 

SECTIONSection
1.01. Credit
Agreement and UCC  1

 

SECTIONSection
1.02. Other
Defined Terms  2

 

ARTICLE
II

 

 

PLEDGE OF
SECURITIES                                                                 

6

 

SECTIONSection
2.01. Pledge  6

 

SECTIONSection
2.02. Delivery
of the Pledged Collateral  7

 

SECTIONSection
2.03. Representations
and Warranties  8

 

SECTIONSection
2.04.Certification
of Limited Liability Company and Limited Partnership
Interests  89

 

SECTIONSection
2.05.Registration
in Nominee Name; Denominations  9

 

SECTIONSection
2.06.Voting
Rights; Dividends and Interest  9

 

SECTIONSection
2.07.Collateral
Agent Not a Partner or Limited Liability Company
Member  11

 

ARTICLE
III

 

 

SECURITY INTERESTS
IN PERSONAL
PROPERTY                                                                                                                      

11

 

SECTIONSection
3.01. Security
Interest  11

 

SECTIONSection
3.02. Representations
and Warranties  1314

 

SECTIONSection
3.03. Covenants  15

 

 

 

Table of Contents

 

Page

 

 

SECTIONSection
3.04. Other
Actions  17

 

Section 3.05 Covenants
Regarding Deposit Accounts  18

 

ARTICLE
IV

 

 

SPECIAL
PROVISIONS CONCERNING INTELLECTUAL PROPERTY
COLLATERAL 18

 

SECTIONSection
4.01.Grant of
License to Use Intellectual Property  18

 

SECTIONSection
4.02. Protection
of Collateral  18

 

ARTICLE
V

 

 

REMEDIES                                 

1920

 

SECTIONSection
5.01. Remedies
Upon Default  1920

 

SECTIONSection
5.02. Application
of Proceeds  22

 

ARTICLE VI

 

 

ARTICLE
VI                                 

MISCELLANEOUS                                            

24

 

SECTIONSection
6.01. Notices  24

 

SECTIONSection
6.02. Waivers;
Amendment  24

 

SECTIONSection
6.03.Collateral
Agent’s Fees and Expenses;
Indemnification  25

 

SECTIONSection
6.04. Independence
of Covenants  26

 

SECTIONSection
6.05. Survival
of Agreement  26

 

SECTIONSection
6.06.Counterparts;
Effectiveness; Several Agreement  26

 

SECTIONSection
6.07. Severability  2627

 

 

 

 

 

Table of Contents

 

Page

 

 

SECTIONSection
6.08. Set-Off  27

 

SECTIONSection
6.09. APPLICABLE
LAW  27

 

SECTIONSection
6.10. CONSENT
TO JURISDICTION  27

 

SECTIONSection
6.11. WAIVER
OF JURY TRIAL  28

 

SECTIONSection
6.12. Headings  2829

 

SECTIONSection
6.13. Marshalling;
Payments Set Aside  2829

 

SECTIONSection
6.14. Security
Interest Absolute  29

 

SECTIONSection
6.15. Termination
or Release  29

 

SECTIONSection
6.16. Additional
Grantors  30

 

SECTIONSection
6.17.Collateral
Agent Appointed Attorney-in-Fact  30

 

SECTIONSection
6.18.General
Authority of the Collateral Agent  31

 

SECTIONSection
6.19. Recourse  31

 

SECTIONSection
6.20. Mortgages  3132

 

SECTIONSection
6.21. Permitted
Intercreditor Agreements  32

 

Section 6.22 [Reserved]  32

 

SECTIONSection
6.223. Regulatory
Matters  32

 

 

SCHEDULES

 

Schedule
I                                 

-            

Pledged Equity;
Pledged Debt

Schedule
II                                 

-            

Commercial Tort
Claims

Schedule
III                                 

-            

Intellectual
Property

 

 

 

Table of Contents

 

Page

 

 

 

EXHIBITS

 

Exhibit
I                       

-            

Form of First Lien
Pledge and Security Agreement Supplement

Exhibit
II                       

-            

Form of First Lien
Copyright Security Agreement

Exhibit
III                                 

-            

Form of First Lien
Patent Security Agreement

Exhibit
IV                                 

-            

Form of First Lien
Trademark Security Agreement

 

EXECUTION VERSION

FIRST LIEN PLEDGE AND SECURITY
AGREEMENT, dated as of May 4, 2018, among FUSION CONNECT, INC., a Delaware
corporation (the “Borrower”), the other GRANTORS party hereto from time to time
and WILMINGTON TRUST, NATIONAL
ASSOCIATION (“Wilmington Trust”), as Collateral
Agent for the Secured Parties (as defined below).

 

Reference is made
to the First Lien Credit and Guaranty Agreement dated as of May 4,
2018 (as it may be amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among the
Borrower, certain Subsidiaries of the Borrower party thereto, as
Guarantor Subsidiaries, the Lenders party thereto and Wilmington
Trust, as Administrative Agent and Collateral Agent.

 

The
Lenders and the Issuing Banks have agreed to extend credit to the
Borrower subject to the terms and conditions set forth in the
Credit Agreement. The obligations of the Lenders and the Issuing
Banks to extend such credit are conditioned upon, among other
things, the execution and delivery of this Agreement by each
Grantor. The Grantors are Affiliates of one another, will derive
substantial direct and indirect benefits from the extensions of
credit to the Borrower pursuant to the Credit Agreement, and are
willing to execute and deliver this Agreement in order to induce
the Lenders and the Issuing Banks to extend such credit. This
Agreement is subject to 
(i) the 
Super Senior Intercreditor Agreement, which governs the
relative rights and priorities of the 
Super Senior Representatives (as defined in the Super Senior
Intercreditor Agreement) and the First Lien Representatives (as
defined in the Super Senior Intercreditor Agreement) and (ii) the
Intercreditor Agreement as supplemented by that certain joinder
thereto, dated as of [___], 2019, which governs the relative rights
and priorities of the Super Senior Secured Parties, the
First Lien Secured Parties (as defined in the Intercreditor
Agreement) and the Second Lien Secured Parties (as defined in the
Intercreditor Agreement) and certain other matters as described
therein. Accordingly, the parties hereto agree as
follows:

 

ARTICLE I

 

 

 

DEFINITIONS

 

SECTION .01. SECTION
1.01. Credit Agreement and UCC

 

(a) . Capitalized
terms used in this Agreement, including the preamble and the
introductory paragraphs hereto, and not otherwise defined herein
have the meanings specified in the Credit Agreement.

 

(a) As used herein,
each of the following terms has the meaning specified in the UCC
(as defined herein):

 

	

Term

 

	

UCC
Section

 

	

Certificated
Security

	

8-102

	

Chattel
Paper

	

9-102

	

Commercial
Tort Claim

	

9-102

	

Deposit
Account

	

9-102

	

Document

	

9-102

	

Fixtures

	

9-102

	

Goods

	

9-102

	

Instrument

	

9-102

	

Inventory

	

9-102

	

Investment
Property

	

9-102

	

Letter-of-Credit
Right

	

9-102

	

Money

	

1-201

	

Payment
Intangible

	

9-102

	

Proceeds

	

9-102

	

Promissory
Note

	

9-102

	

Securities
Account

	

8-501

	

Security
Entitlement

Supporting Obligations

	

8-102

9-102

	

Supporting Obligations

	

9-102

	

Uncertificated
Security

	

8-102

	
 

	
 

(b) The rules of
construction specified in Section 1.3 of the Credit Agreement also
apply to this Agreement, mutatis
mutandis.

 

SECTION .02. SECTION
1.02. Other Defined Terms

 

.. As used in this Agreement, the following terms have the
meanings specified below:

 

“Account(s)” means
“accounts” as defined in Section 9-102 of the UCC, and
also means a right to payment of a monetary obligation, whether or
not earned by performance, (a) for property that has been or is to
be sold, leased, licensed, assigned, or otherwise disposed of, (b)
for services rendered or to be rendered, or (c) arising out of the
use of a credit or charge card or information contained on or for
use with the card.

 

“Account Debtor” means any Person
that is or that may become obligated to any Grantor under, with
respect to or on account of an Account or a Payment
Intangible.

 

“After-Acquired Intellectual
Property” has the meaning assigned to such term in
Section 4.02(d).

 

“Agreement” means this First Lien
Pledge and Security Agreement.

 

“Article 9 Collateral” has the
meaning assigned to such term in Section 3.01(a).

 

“Bankruptcy Event of Default” means
any Event of Default under Section 8.1(f) or 8.1(g) of the Credit
Agreement.

 

“Blue Sky Laws” has the meaning
assigned to such term in Section 5.01.

 

“Borrower” has the meaning assigned
to such term in the preamble.

 

 

 

 

 

“Collateral” means the Article 9
Collateral and the Pledged Collateral; provided that all references to
“Collateral” in Section 5.02 shall, unless the context
requires otherwise, also refer to Real Estate Assets subject to a
Mortgage.

 

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

 

“Commercial Software License(s)”
means any non-exclusive license of commercially available (on
non-discriminatory pricing terms) computer software to a Grantor
from a commercial software provider (e.g.,
“shrink-wrap”, “browse-wrap” or
“click-wrap” software licenses) or a license of freely
available computer software from a licensor of free or open source
software.

 

“Copyright License” means any
written agreement, now or hereafter in effect, granting any right
to any third party under any Copyright now or hereafter owned by
any Grantor or that such Grantor otherwise has the right to
license, or granting any right to any Grantor under any Copyright
now or hereafter owned by any third party, and all rights of such
Grantor under any such agreement.

 

“Copyrights” means all of the
following now owned or hereafter acquired by or assigned to any
Grantor (a) all copyright rights in any work subject to the
copyright laws of the United States or any other country, whether
as author, assignee, transferee or otherwise, whether registered or
unregistered and whether published or unpublished, (b) all
registrations and applications for registration of any such
copyright in the United States or any other country, including
registrations, recordings, supplemental registrations, pending
applications for registration and renewals in the United States
Copyright Office, including those listed on Schedule III, (c) all
rights and privileges arising under applicable law with respect to
such Grantor’s use of such copyrights, (d) all reissues,
renewals, continuations and extensions thereof and amendments
thereto, (e) all income, fees, royalties, damages, claims and
payments now or hereafter due and/or payable with respect to the
foregoing, including damages and payments for past, present or
future infringements thereof, (f) all rights corresponding thereto
throughout the world and (g) all rights to sue for past, present or
future infringements thereof.

 

“Credit Agreement” has the meaning
assigned to such term in the preliminary statement of this
Agreement.

 

“Domain Names” means all Internet
domain names and associated URL addresses in or to which any
Grantor now or hereafter has any right, title or
interest.

 

“Equipment” means (a) any
“equipment” as such term is defined in Article 9 of the
UCC and shall also include, but shall not be limited to, all
machinery, equipment, furnishings, appliances, furniture, fixtures,
tools, and vehicles now or hereafter owned by any Grantor in each
case, regardless of whether characterized as equipment under the
UCC and (b) and any and all additions, substitutions and
replacements of any of the foregoing and all accessions thereto,
wherever located, whether or not at any time of determination
incorporated or installed therein or attached thereto, and all
replacements therefore, together with all attachments, components,
parts, equipment and accessories installed thereon or affixed
thereto.

 

 

 

 

 

 

 

“Excluded
Deposit Accounts”
means (a) any deposit account the funds in which are used solely
for the payment of salaries and wages, workers’ compensation
and similar expenses (including payroll taxes) in the ordinary
course of business, (b) any deposit account that is a zero-balance
disbursement account, (c) any deposit account the funds in which
consist solely of (i) funds held by the Borrower or any Subsidiary
in trust for any director, officer or employee of the Borrower or
any Subsidiary or any employee benefit plan maintained by the
Borrower or any Subsidiary or (ii) funds representing deferred
compensation for the directors and employees of the Borrower and
its Subsidiaries, and (d) deposit accounts the aggregate daily
balance in which does not at any time exceed $1,500,000 for all
such accounts.

 

“General Intangibles” has the
meaning provided in Article 9 of the UCC and shall in any event
include all choses in action and causes of action and all other
intangible personal property of every kind and nature (other than
Accounts) now owned or hereafter acquired by any Grantor, as the
case may be, including corporate or other business records,
indemnification claims, contract rights (including rights under
customer contracts, leases, whether entered into as lessor or
lessee, Hedge Agreements and other agreements), goodwill,
registrations, franchises, tax refund claims, licenses (including
Licenses), permits, concessions and authorizations and any letter
of credit, guarantee, claim, security interest or other security
held by or granted to any Grantor.

 

“Grantor” means each of the
Borrower and each Guarantor Subsidiary.

 

“Guarantor Subsidiaries” means,
collectively, (a) the Restricted Subsidiaries party to this
Agreement on the Closing Date and (b) each Restricted Subsidiary
that becomes a party to this Agreement after the Closing Date
pursuant to Section 6.16, provided that any Restricted Subsidiary
that is designated as an Unrestricted Subsidiary in accordance with
the Credit Agreement shall cease to be a Guarantor Subsidiary
subject to and in accordance with the provisions of Section
9.8(d)(ii) of the Credit Agreement.

 

“Intellectual Property” means all
intellectual and similar property of every kind and nature now
owned or hereafter acquired by any Grantor, including rights in
inventions, rights in designs, utility models, Patents, Copyrights,
Intellectual Property Licenses, Trademarks, trade secrets,
confidential or proprietary technical and business information,
rights in know how, rights in show how or other data or
information, rights in software, rights in databases, all other
proprietary information, including but not limited to Domain
Names.

 

“Intellectual Property Collateral”
means Collateral consisting of Intellectual Property.

 

“Intellectual Property Security
Agreements” has the meaning assigned to such term in
Section 3.02(d).

 

“Intellectual Property License”
means any Patent License, Trademark License, Copyright License,
Commercial Software License or other license or sublicense
agreement granting rights under Intellectual Property to which any
Grantor is a party, including those listed on Schedule
III.

 

 “Patent
License” means any written agreement, now or hereafter
in effect, granting to any third party any right to develop,
commercialize, import, make, have made, offer for sale, use or sell
any invention on which a Patent, now or hereafter owned by any
Grantor or that any Grantor

 

 

 

 

 

 

 

otherwise has the
right to license, is in existence, or granting to any Grantor any
such right with respect to any invention on which a Patent, now or
hereafter owned by any third party, is in existence, and all rights
of any Grantor under any such agreement.

 

“Patents” means all of the
following now owned or hereafter acquired by any Grantor (a) all
letters patent of the United States or the equivalent thereof in
any other country, all registrations and recordings thereof, and
all applications for letters patent of the United States or the
equivalent thereof in any other country, including registrations,
recordings and pending applications in the United States Patent and
Trademark Office or any similar offices in any other country,
including those listed on Schedule III, (b) all rights and
privileges arising under applicable law with respect to such
Grantor’s use of any patents, (c) all inventions and
improvements described and claimed therein, (d) all reissues,
divisions, continuations, renewals, extensions, reexaminations,
supplemental examinations, inter
partes reviews, adjustments and continuations-in-part
thereof and amendments thereto, (e) all income, fees, royalties,
damages, claims and payments now or hereafter due and/or payable
with respect to any of the foregoing including damages and payments
for past, present or future infringements thereof, (f) all rights
corresponding thereto throughout the world, including the right to
prevent others from making, having made, using, selling, offering
to sell, importing or exporting the inventions claimed therein and
(g) rights to sue for past, present or future infringements
thereof.

 

“Pledge and Security Agreement
Supplement” means an instrument substantially in the
form of Exhibit I hereto.

 

“Pledged Collateral” has the
meaning assigned to such term in Section 2.01.

 

“Pledged Debt” has the meaning
assigned to such term in Section 2.01.

 

“Pledged Equity” has the meaning
assigned to such term in Section 2.01.

 

“Pledged Securities” means any
Promissory Notes, stock certificates, limited liability membership
interests or other Securities, certificates or Instruments now or
hereafter included in the Pledged Collateral, including all Pledged
Equity, Pledged Debt and all other certificates, instruments or
other documents representing or evidencing any Pledged
Collateral.

 

“Secured Obligations” means the
“Obligations” as defined in the Credit Agreement, it
being acknowledged and agreed that the term “Secured
Obligations” as used herein shall include each extension of
credit under the Credit Agreement, whether outstanding on the date
of this Agreement or extended or arising from time to time after
the date of this Agreement.

 

“Secured Parties” means (a) the
Administrative Agent, (b) the Collateral Agent, (c) the Arrangers,
the Syndication Agents and each other Person appointed under the
Credit Documents to serve in an agent or similar capacity,
including any Auction Manager, (d) the Lenders, (e) the Issuing
Banks, (f) each counterparty to any Hedge Agreement the obligations
under which constitute Specified Hedge Obligations, (g) each
provider of Cash Management Services the obligations in respect of
which constitute Specified Cash Management Services Obligations,
(h) the beneficiaries of each indemnification obligation undertaken
by any Credit Party under any Credit Document, (i) the other
holders from time to time of the Secured Obligations and (j) the
successors and permitted assigns of each of the
foregoing.

 

 

 

 

 

 

 

“Security” means a
“security” as such term is defined in Article 8 of the
UCC and, in any event, shall include any stock, shares, partnership
interests, voting trust certificates, certificates of interest or
participation in any profit sharing agreement or arrangement,
options, warrants, bonds, debentures, notes, or other evidences of
indebtedness, secured or unsecured, convertible, subordinated or
otherwise, or in general any instruments commonly known as
“securities” or any certificates of interest, shares or
participations in temporary or interim certificates for the
purchase or acquisition of, or any right to subscribe to, purchase
or acquire, any of the foregoing.

 

“Security Interest” has the meaning
assigned to such term in Section 3.01(a).

 

“Trademark License” means any
written agreement, now or hereafter in effect, granting to any
third party any right to use any Trademark now or hereafter owned
by any Grantor or that any Grantor otherwise has the right to
license, or granting to any Grantor any right to use any Trademark
now or hereafter owned by any third party, and all rights of any
Grantor under any such agreement.

 

“Trademarks” means all of the
following now owned or hereafter acquired by any Grantor (a) all
trademarks, service marks, trade names, corporate names, company
names, business names, fictitious business names, trade styles,
trade dress, logos, other source or business identifiers, designs
and general intangibles of like nature, the goodwill of the
business symbolized thereby or associated therewith, all
registrations and recordings thereof, and all registration and
recording applications filed in connection therewith, including
registrations and registration applications in the United States
Patent and Trademark Office or any similar offices in any State of
the United States or any other country or any political subdivision
thereof, and all extensions or renewals thereof, including those
listed on Schedule III, (b) all rights and privileges arising under
applicable law with respect to such Grantor’s use of any
trademarks, (c) all reissues, continuations, extensions and
renewals thereof and amendments thereto, (d) all income, fees,
royalties, damages and payments now and hereafter due and/or
payable with respect to any of the foregoing, including damages,
claims and payments for past, present or future infringements
thereof, (e) all rights corresponding thereto throughout the world
and (f) rights to sue for past, present and future infringements or
dilutions thereof or other injuries thereto.

 

“UCC” means the Uniform Commercial
Code as the same may from time to time be in effect in the State of
New York; provided
that, if by reason of mandatory provisions of law, perfection, or
the effect of perfection or non-perfection, of a security interest
in any Collateral or the availability of any remedy hereunder is
governed by the Uniform Commercial Code as in effect in a
jurisdiction other than the State of New York, “UCC”
means the Uniform Commercial Code as in effect in such other
jurisdiction for purposes of the provisions hereof relating to such
perfection or effect of perfection or non-perfection or
availability of such remedy, as the case may be.

 

“Wilmington Trust” has the meaning
assigned to such term in the preamble.

 

ARTICLE II

 

 

 

PLEDGE
OF SECURITIES

 

 

 

 

 

 

 

SECTION .00. SECTION
2.01. Pledge

 

. As
security for the payment and performance in full of the Secured
Obligations, each Grantor hereby assigns and pledges to the
Collateral Agent, its successors and permitted assigns, for the
benefit of the Secured Parties, and hereby grants to the Collateral
Agent, its successors and permitted assigns, for the benefit of the
Secured Parties, a continuing security interest in, all of such
Grantor’s right, title and interest in, to and under: (a) all
Equity Interests now owned or at any time hereafter acquired by it
(including those Equity Interests listed opposite the name of such
Grantor on Schedule I) and all certificates and other instruments
representing all such Equity Interests; provided
that
the Pledged Equity shall not include more than 65% of the
outstanding voting Equity Interests in any CFC or CFC Holding
Company (collectively, the “Pledged
Equity”);
(b) all Promissory Notes and all Instruments evidencing
Indebtedness now owned or at any time hereafter acquired by it
(including those listed opposite the name of such Grantor on
Schedule I) (the “Pledged
Debt”); (c) all other property that may be delivered
to and held by the Collateral Agent pursuant to the terms of this
Section 2.01 or Section 2.02; (d) subject to Section 2.06, all
payments of principal or interest, dividends, cash, instruments and
other property from time to time received, receivable or otherwise
distributed in respect of, in exchange for or upon the conversion
of, and all other Proceeds received in respect of, the Pledged
Equity and the Pledged Debt; (e) subject to Section 2.06, all
rights and privileges of such Grantor with respect to the
securities and other property referred to in clauses (a), (b), (c)
and (d) above; and (f) all Proceeds of, and Security Entitlements
in respect of, any of the foregoing (the items referred to in
clauses (a) through (f) above being collectively referred to as the
“Pledged
Collateral”); provided that the Pledged
Collateral shall not include any item referred to in clauses (a)
through (f) above if, for so long as and to the extent such item
constitutes Excluded Property.

 

SECTION .01. SECTION
2.02. Delivery of the Pledged Collateral

 

(a) . On the Closing Date (in the case of any Grantor that
grants a Lien on any of its assets hereunder on the Closing Date)
or on the date on which it signs and delivers a Pledge and Security
Agreement Supplement (in the case of any other Grantor), each
Grantor shall deliver or cause to be delivered to the Collateral
Agent, for the benefit of the Secured Parties, any and all Pledged
Securities (other than (i) any Uncertificated Securities, but only
for so long as such Securities remain uncertificated, and (ii)
certificates or instruments representing Equity Interests in any
Subsidiary that is not a Material Subsidiary) to the extent such
Pledged Securities, in the case of Promissory Notes and other
Instruments evidencing Indebtedness, are required to be delivered
pursuant to Section 2.02(b). Thereafter, whenever such Grantor
acquires any other Pledged Security (other than (A) any
Uncertificated Securities, but only for so long as such
Uncertificated Securities remain uncertificated, and (B)
certificates or instruments representing Equity Interests in any
Subsidiary that is not a Material Subsidiary), such Grantor shall
promptly, and in any event within 30 days (or such longer period as
the Collateral Agent may agree to in writing), deliver or cause to
be delivered to the Collateral Agent such Pledged Security as
Collateral hereunder to the extent such Pledged Securities, in the
case of Promissory Notes and Instruments evidencing Indebtedness,
are required to be delivered pursuant to Section
2.02(b).

 

(a) Each Grantor will
cause (i) the Borrower and each Restricted Subsidiary to execute
and deliver a counterpart of each of the Intercompany Note and the
Intercompany Indebtedness Subordination Agreement and (ii) all
Indebtedness for borrowed money in an aggregate principal amount of
$1,00250,000
or more owed to such Grantor by any other Person (other than the
Borrower or a Restricted Subsidiary) to be evidenced by a duly
executed Promissory Note, and shall cause each such Promissory
Note, the Intercompany Note and each

 

 

 

 

 

 

 

(b) other Promissory
Note (if any) evidencing any Indebtedness of the Borrower or any
Restricted Subsidiary that is owing to such Grantor, to be pledged
and delivered to the Collateral Agent, for the benefit of the
Secured Parties, (A) on the date hereof, in the case of any such
Indebtedness existing on the date hereof (or, in the case of any
Grantor that becomes a party hereto after the date hereof, on the
date such Grantor becomes a party hereto, in the case of any such
Indebtedness existing on such date) or (B) promptly following the
incurrence thereof, in the case of any such Indebtedness incurred
after the date hereof (or such other date), in each case pursuant
to the terms hereof.

 

(c) Upon delivery to
the Collateral Agent, (i) any Pledged Securities required to be
delivered pursuant to Section 2.02(a) or 2.02(b) shall be
accompanied by undated stock or note powers duly executed by the
applicable Grantor in blank or other instruments of transfer
reasonably satisfactory to the Collateral Agent and by such other
instruments and documents as the Collateral Agent may reasonably
request and (ii) all other property comprising part of the Pledged
Collateral required to be delivered pursuant to Section 2.02(a) or
2.02(b) shall be accompanied by undated proper instruments of
assignment duly executed by the applicable Grantor and such other
instruments or documents as the Collateral Agent may reasonably
request. Each delivery of Pledged Securities shall be accompanied
by a schedule describing such Pledged Securities, which schedule
shall be deemed to supplement Schedule I and be made a part hereof;
provided that
failure to attach any such schedule hereto shall not affect the
validity of such pledge of such Pledged Securities. Each schedule
so delivered shall supplement any prior schedules so
delivered.

 

(d) The assignment,
pledge and security interest granted in Section 2.01 are granted as
security only and shall not subject the Collateral Agent or any
other Secured Party to, or in any way alter or modify, any
obligation or liability of any Grantor with respect to or arising
out of the Pledged Collateral.

 

SECTION .02. SECTION
2.03. Representations and Warranties

 

. Each
Grantor, jointly and severally, represents and warrants, as to
itself and the other Grantors, to and with the Collateral Agent,
for the benefit of the Secured Parties, that:

 

(a) Schedule I
correctly sets forth, as of the Closing Date and as of each date on
which a supplement to Schedule I is delivered pursuant to Section
2.02(c) or 6.15, (i) all the Equity Interests owned by each
Grantor, specifying the issuer and certificate number of (if
applicable), and the number and percentage ownership represented
by, such Equity Interests, and (ii) all the Pledged Debt of each
Grantor, specifying the debtor thereof and the outstanding
principal amount thereof as of the Closing Date, and includes all
Equity Interests, Promissory Notes and Instruments required to be
pledged by each Grantor hereunder in order to satisfy the
Collateral and Guarantee Requirement;

 

(b) the Pledged Equity
issued by any Subsidiary and the Pledged Debt (solely with respect
to Pledged Debt issued by a Person other than the Borrower or any
Subsidiary, to the best of the Grantors’ knowledge) have been
duly and validly authorized and issued by the issuers thereof and
(i) in the case of Pledged Equity (other than Pledged Equity
consisting of limited liability company interests or partnership
interests which, pursuant to the relevant organizational or
formation documents, cannot be fully paid and non-assessable), are
fully paid and non

 

 

 

 

 

 

 

(c) assessable and (ii)
in the case of Pledged Debt (solely with respect to Pledged Debt
issued by a Person other than the Borrower or any Subsidiary, to
the best of the Grantors’ knowledge), are legal, valid and
binding obligations of the issuers thereof, subject to applicable
Debtor Relief Laws and general principles of equity; and

 

(d) each Grantor holds
the Pledged Securities indicated on Schedule I as owned by such
Grantor free and clear of all Liens, other than (i) Liens created
by the Collateral Documents and (ii) other Permitted
Liens.;
and

 

(e)            as
of the Amendment No. 1 Effective Date, Schedule IV to the Amendment
No. 1 sets forth a true and complete list and description, of all
Deposit Accounts, securities accounts, commodities accounts and all
other depositary accounts maintained by each Grantor.

 

SECTION .03. SECTION
2.04. Certification of Limited Liability Company and Limited
Partnership Interests

 

. Each
Grantor acknowledges and agrees that, to the extent any interest in
any limited liability company or limited partnership controlled by
any Grantor and pledged under Section 2.01 is a
“security” within the meaning of Article 8 of the UCC
and is governed by Article 8 of the UCC, such interest shall be
represented by a certificate that is promptly delivered to the
Collateral Agent pursuant to the terms hereof. Each Grantor further
acknowledges and agrees that with respect to any interest in any
limited liability company or limited partnership controlled on or
after the date hereof by such Grantor and pledged hereunder that is
not a “security” within the meaning of Article 8 of the
UCC, such Grantor shall at no time elect to treat any such interest
as a “security” within the meaning of Article 8 of the
UCC, nor shall any such interest in any limited liability company
or limited partnership controlled on or after the date hereof by
such Grantor be represented by a certificate, unless such election
and such interest is thereafter represented by a certificate that
is promptly delivered to the Collateral Agent pursuant to the terms
hereof.

 

SECTION .04. SECTION
2.05. Registration in Nominee Name;
Denominations

 

. If an
Event of Default shall occur and be continuing and, other than in
the case of a Bankruptcy Event of Default, the Collateral Agent
shall have notified the Borrower of its intent to exercise such
rights, (a) the Collateral Agent, on behalf of the Secured Parties,
shall have the right (in its sole and absolute discretion) to cause
each of the Pledged Securities to be transferred of record into the
name of the Collateral Agent or into the name of its nominee (as
pledgee or as sub-agent) or the name of the applicable Grantor,
endorsed or assigned in blank or in favor of the Collateral Agent
and (b) to the extent permitted by the documentation governing such
Pledged Securities and applicable law, the Collateral Agent shall
have the right to exchange the certificates representing Pledged
Securities for certificates of smaller or larger denominations for
any purpose consistent with this Agreement. Each Grantor will
promptly give to the Collateral Agent copies of any material
notices received by it with respect to Pledged Securities
registered in the name of such Grantor. Each Grantor will take any
and all actions reasonably requested by the Collateral Agent to
facilitate compliance with this Section 2.05.

 

SECTION .05. SECTION
2.06. Voting Rights; Dividends and Interest

 

(a) . (a)

(a) Unless and until an Event of Default shall have occurred
and be continuing and, other than in the case of a Bankruptcy Event
of Default, the Collateral Agent shall have notified the Borrower
that the rights of the Grantors under this Section 2.06 are being
suspended:

 

 

 

 

 

 

 

(i) Each Grantor shall
be entitled to exercise any and all voting and/or other consensual
rights and powers inuring to an owner of Pledged Collateral or any
part thereof for any purpose consistent with the terms of this
Agreement, the Credit Agreement and the other Credit
Documents.

 

(ii) The
Collateral Agent shall promptly execute and deliver to each
Grantor, or cause to be executed and delivered to such Grantor, all
such proxies, powers of attorney and other instruments as such
Grantor may reasonably request in writing for the purpose of
enabling such Grantor to exercise the voting and/or consensual
rights and powers it is entitled to exercise pursuant to Section
2.06(a)(i), in each case as shall be specified in such
request.

 

(iii) Each
Grantor shall be entitled to receive and retain any and all
dividends, interest, principal and other distributions paid on or
distributed in respect of the Pledged Collateral, to the extent
(and only to the extent) that such dividends, interest, principal
and other distributions are permitted by, and otherwise paid or
distributed in accordance with, the terms and conditions of the
Credit Agreement, the other Credit Documents and applicable laws;
provided that any
noncash dividends, interest, principal or other distributions that
would constitute Pledged Equity or Pledged Debt, whether resulting
from a subdivision, combination or reclassification of the
outstanding Equity Interests of the issuer of any Pledged
Securities or received in exchange for Pledged Securities or any
part thereof, or in redemption thereof, or as a result of any
merger, consolidation, acquisition or other exchange of assets to
which such issuer may be a party or otherwise, shall be and become
part of the Pledged Collateral, and, if received by any Grantor,
shall be held in trust for the benefit of the Collateral Agent and
the applicable Secured Parties and shall, if certificated and to
the extent required by Section 2.02, be forthwith delivered to the
Collateral Agent in the same form as so received (with any
necessary endorsement reasonably requested by the Collateral
Agent). So long as no Event of Default has occurred and is
continuing, the Collateral Agent shall promptly deliver to each
Grantor any Pledged Securities in its possession if requested to be
delivered to the issuer thereof in connection with any exchange or
redemption of such Pledged Securities.

 

(f) Upon the occurrence
and during the continuance of an Event of Default and, other than
in the case of a Bankruptcy Event of Default, after the Collateral
Agent shall have notified the Borrower of the suspension of the
rights of the Grantors under Section 2.06(a)(iii), all rights of
any Grantor to dividends, interest, principal or other
distributions that such Grantor is authorized to receive pursuant
to Section 2.06(a)(iii) shall cease, and all such rights shall
thereupon become vested in the Collateral Agent, which shall have
the sole and exclusive right and authority to receive and retain
such dividends, interest, principal or other distributions as part
of the Pledged Collateral, subject to Section 2.07 and the last
sentence of this Section 2.06(b). All dividends, interest,
principal or other distributions received by any Grantor contrary
to the provisions of this Section 2.06 shall be held in trust for
the benefit of the Collateral Agent and the other Secured Parties
and shall be forthwith delivered to the Collateral Agent upon
demand in the same form as so received (with any necessary
endorsement reasonably requested by the Collateral Agent). Any and
all money and other property paid over to or received by the
Collateral Agent pursuant to the provisions of this Section 2.06(b)
shall be retained by the Collateral Agent in an account to be
established by the Collateral Agent upon receipt of such money or
other property, shall be held as

 

 

 

 

 

 

 

(g) security for the
payment and performance of the Secured Obligations and shall be
applied in accordance with the provisions of Section 5.02. After
all Events of Default have been cured or waived, and the Borrower
has delivered to the Collateral Agent a certificate of an
Authorized Officer to such effect, the Collateral Agent shall
promptly repay to each Grantor (without interest) all dividends,
interest, principal or other distributions that such Grantor would
otherwise be permitted to retain pursuant to the terms of Section
2.06(a)(iii) in the absence of an Event of Default and that remain
in such account.

 

(h) Upon the occurrence
and during the continuance of an Event of Default and, other than
in the case of a Bankruptcy Event of Default, after the Collateral
Agent shall have notified the Borrower of the suspension of the
rights of the Grantors under Section 2.06(a)(i), all rights of any
Grantor to exercise the voting and consensual rights and powers it
is entitled to exercise pursuant to Section 2.06(a)(i), and the
obligations of the Collateral Agent under Section 2.06(a)(ii),
shall cease, and all such rights shall thereupon become vested in
the Collateral Agent, which shall have the sole and exclusive right
and authority to exercise such voting and consensual rights and
powers subject to Section 2.07 and the last sentence of this
Section 2.06(c); provided that, unless otherwise
directed by the Requisite Lenders in writing, the Collateral Agent
shall have the right from time to time following and during the
continuance of an Event of Default to permit the Grantors to
exercise such rights. After all Events of Default have been cured
or waived, and the Borrower has delivered to the Collateral
Agent  a
certificate of an Authorized Officer to such effect, each Grantor
shall have the exclusive right to exercise the voting and/or
consensual rights and powers that such Grantor would otherwise be
entitled to exercise pursuant to the terms of Section 2.06(a)(i),
and the obligations of the Collateral Agent under Section
2.06(a)(ii) shall be reinstated.

 

(i) Any notice given by
the Collateral Agent to the Borrower under Section 2.05 or Section
2.06(a) (i) may be given by telephone if promptly confirmed in
writing, (ii) may be given with respect to one or more of the
Grantors at the same or different times and (iii) may suspend the
rights of the Grantors under Section 2.06(a)(i) or 2.06(a)(iii) in
part without suspending all such rights (as specified by the
Collateral Agent in its sole and absolute discretion) and without
waiving or otherwise affecting the Collateral Agent’s rights
to give additional notices from time to time suspending other
rights so long as an Event of Default has occurred and is
continuing.

 

SECTION .06. SECTION
2.07. Collateral Agent Not a Partner or Limited Liability
Company Member

 

.
Nothing contained in this Agreement shall be construed to make the
Collateral Agent or any other Secured Party liable as a member of
any limited liability company or as a partner of any partnership,
and neither the Collateral Agent nor any other Secured Party by
virtue of this Agreement or otherwise (except as referred to in the
following sentence) shall have any of the duties, obligations or
liabilities of a member of any limited liability company or as a
partner in any partnership. The parties hereto expressly agree
that, unless the Collateral Agent shall become the absolute owner
of Pledged Equity consisting of a limited liability company
interest or a partnership interest pursuant hereto, this Agreement
shall not be construed as creating a partnership or joint venture
among the Collateral Agent, any other Secured Party, any Grantor
and/or any other Person.

 

 

 

 

 

ARTICLE III

 

 

 

SECURITY
INTERESTS IN PERSONAL PROPERTY

 

SECTION .00. SECTION
3.01. Security Interest

 

(a) . (a)

(a) As security for the payment and performance in full of
the Secured Obligations, each Grantor hereby assigns and pledges to
the Collateral Agent, its successors and permitted assigns, for the
benefit of the Secured Parties, and hereby grants to the Collateral
Agent, its successors and permitted assigns, for the benefit of the
Secured Parties, a security interest (the “Security Interest”) in, all right,
title and interest in, to and under any and all of the following
assets and properties now owned or at any time hereafter acquired
by such Grantor or in which such Grantor now has or at any time in
the future may acquire any right, title or interest (collectively,
the “Article 9
Collateral”):

 

(i) all
Accounts;

 

(ii) all
Chattel Paper;

 

(iii) all
Documents;

 

(iv) all
Equipment;

 

(v) all General
Intangibles, including all Intellectual Property, all Licenses and
all Payment Intangibles;

 

(vi) all
Instruments;

 

(vii) all
Inventory;

 

(viii) all
Goods and Fixtures;

 

(ix) all
Investment Property;

 

(x) all Money,
cash,

and cash equivalents, Deposit Accounts
and Securities Accounts;

 

(xi) all
Letter-of-Credit Rights;

 

(xii) all
Commercial Tort Claims described on Schedule II from time to time,
as such Schedule may be supplemented from time to time pursuant to
Section 3.04(c);

 

(xiii) all
Supporting Obligations;

 

(xiv) all
Security Entitlements in any or all of the foregoing;

 

(xv)            all
Deposit Accounts, securities accounts and commodities accounts
(other than Excluded Deposit Accounts);

 

(xvi)            (xv)
all books and records pertaining to the Article 9 Collateral;
and

 

 

 

 

 

 

 

(xvii)                       (xvi)
to the extent not otherwise included above, all Proceeds and
products of any and all of the foregoing (including proceeds of all
insurance policies) and all collateral security and guarantees
given by any Person with respect to any of the
foregoing.

 

() Notwithstanding
anything herein to the contrary, if, for so long and to the extent
as any asset constitutes Excluded Property, the Security Interest
granted under this Section 3.01 shall not attach to, and Article 9
Collateral shall not include, such asset; provided, however, that the Security
Interest shall immediately attach to, and Article 9 Collateral
shall immediately include, any such asset (or portion thereof) upon
such asset (or such portion) ceasing to be Excluded
Property.

 

(a) Each Grantor hereby
irrevocably authorizes the Collateral Agent (or its designee) at
any time and from time to time to file in any relevant jurisdiction
any financing statements or continuation statements (including
fixture filings and transmitting utility filings) with respect to
the Article 9 Collateral or any part thereof and amendments thereto
that (i) indicate the Collateral as “all assets” or
“all personal property” of such Grantor or words of
similar effect and (ii) contain the information required by Article
9 of the UCC of each applicable jurisdiction for the filing of any
financing statement or amendment, including (A) whether such
Grantor is an organization, the type of organization and any
organizational identification number issued to such Grantor, (B)
whether such Grantor is a transmitting utility and (C) in the case
of a financing statement filed as a fixture filing, a sufficient
description of the real property to which such Article 9 Collateral
relates. Each Grantor agrees to provide such information to the
Collateral Agent promptly upon reasonable request. Each Grantor
hereby ratifies its authorization for the Collateral Agent (or its
designee) to file in any relevant jurisdiction any initial
financing statements or amendments thereto if filed prior to the
date hereof.

 

(b) Each Grantor hereby
irrevocably authorizes the Collateral Agent (or its designee) to
file with the United States Patent and Trademark Office or United
States Copyright Office (or any successor office) such documents as
may be necessary or advisable for the purpose of perfecting,
confirming, continuing, enforcing or protecting the Security
Interest granted by such Grantor hereunder, without the signature
of such Grantor, and naming such Grantor, as debtor, and the
Collateral Agent, as secured party.

 

(c) The Security
Interest and the security interest granted pursuant to Article II
are granted as security only and, except as expressly set forth
herein, shall not subject the Collateral Agent or any other Secured
Party to, or in any way alter or modify, any obligation or
liability of any Grantor with respect to or arising out of the
Article 9 Collateral.

 

(d) Notwithstanding
anything to the contrary herein, to the extent this Agreement or
any other Credit Document purports to grant or to require any
Grantor to grant to the Collateral Agent a security interest in any
License, the Collateral Agent shall only have a security interest
in such License at such times and to the extent that a security
interest in such License is permitted under applicable law,
including the applicable Communications Law. The Security Interest
granted in Proceeds of such License is intended to include, and
hereby includes, the economic value of the Licenses, all rights
incident or appurtenant to the Licenses and the right to receive
all monies and consideration derived from or in connection with the
sale, assignment or

 

 

 

 

 

 

 

(e) lease of or the
transfer of control over the Licenses. If at any time in the future
the Communications Law permits any Grantor to grant a security
interest in any License, this Agreement shall be deemed to grant a
security interest in such License immediately thereupon without any
further action by or notice to any Grantor, the Collateral Agent or
any Lender or other Secured Party. In furtherance of the foregoing,
each Grantor agrees to cooperate fully and take all steps necessary
to perfect such security interest as may be required by the
Collateral Agent.

 

SECTION .01. SECTION
3.02. Representations and Warranties

 

(a) . Each Grantor, jointly and severally, represents and
warrants, as to itself and the other Grantors, to the Collateral
Agent for the benefit of the Secured Parties that:

 

(a) Each Grantor has
good and valid rights in (not subject to any Liens other than
Permitted Liens) and/or good and marketable title in the Article 9
Collateral with respect to which it has purported to grant a
Security Interest hereunder, and has full power and authority to
grant to the Collateral Agent the Security Interest in such Article
9 Collateral pursuant hereto and to execute, deliver and perform
its obligations in accordance with the terms of this Agreement,
without the consent or approval of any other Person other than any
consent or approval that has been obtained.

 

(b) The information set
forth in the Collateral Questionnaire, including the exact legal
name of each Grantor and its jurisdiction of organization, is
correct and complete in all material respects as of the Closing
Date. The UCC financing statements prepared by or on behalf of the
Grantors based upon the information provided in the Collateral
Questionnaire (or specified by notice from the applicable Grantor
to the Collateral Agent after the Closing Date in the case of
filings, recordings or registrations required by Section 5.10 or
5.11 of the Credit Agreement) are all the filings, recordings and
registrations (other than any filings required to be made in the
United States Patent and Trademark Office and the United States
Copyright Office in order to perfect the Security Interest in
Article 9 Collateral consisting of United States registered Patents
(and Patents for which United States applications for registration
are pending), United States registered Trademarks (and Trademarks
for which United States applications for registration are pending),
United States registered Copyrights (and Copyrights for which
United States applications for registration are pending) and United
States exclusive registered Copyright Licenses) that are necessary
to establish a legal, valid and perfected security interest in
favor of the Collateral Agent (for the benefit of the Secured
Parties) in respect of all Article 9 Collateral in which the
Security Interest may be perfected by filing, recording or
registration in the United States (or any political subdivision
thereof) and its territories and possessions pursuant to the UCC.
Each Grantor represents and warrants that, as of the Closing Date,
fully executed copies of the Patent Security Agreement and the
Trademark Security Agreement, in each case containing a description
of all Article 9 Collateral consisting of United States registered
Patents (and Patents for which registration applications are
pending) and United States registered Trademarks (and Trademarks
for which registration applications are pending), respectively,
have been provided for recording by the United States Patent and
Trademark Office pursuant to 35 U.S.C. § 261 or 15 U.S.C.
§ 1060 and the regulations thereunder.

 

(c) The Security
Interest constitutes (i) a legal and valid security interest in all
the Article 9 Collateral securing the payment and performance of
the Secured Obligations, (ii) subject to the filings described in
Section 3.02(c), a perfected security interest in all Article
9

 

 

 

 

 

 

 

(d) Collateral in which
a security interest may be perfected by filing, recording or
registering a financing statement in the United States (or any
political subdivision thereof) and its territories and possessions
pursuant to the UCC and (iii) a security interest that shall be
perfected in all Intellectual Property Collateral in which a
security interest may be perfected upon the receipt and recording
of the UCC financing statements in the relevant filing offices and
the relevant Copyright Security Agreement, Patent Security
Agreement and/or Trademark Security Agreement, as applicable (the
“Intellectual Property
Security Agreements”), with the United States Patent
and Trademark Office and the United States Copyright Office, as
applicable. The Security Interest is and shall be prior to any
other Lien on any of the Article 9 Collateral in existence on the
date hereof, other than Permitted Liens (excluding Permitted Liens
that are required to be junior to the Security Interest) that are
contemplated by Section 6.2 of the Credit Agreement.

 

(e) The Article 9
Collateral is owned by the Grantors free and clear of any Lien,
except for Permitted Liens. None of the Grantors has filed or
consented to the filing of (i) any financing statement or analogous
document under the UCC or any other applicable laws covering any
Article 9 Collateral, (ii) any assignment in which any Grantor
assigns any Article 9 Collateral or any security agreement or
similar instrument covering any Article 9 Collateral with the
United States Patent and Trademark Office or the United States
Copyright Office, (iii) any notice under the Assignment of Claims
Act or (iv) any assignment in which any Grantor assigns any Article
9 Collateral or any security agreement or similar instrument
covering any Article 9 Collateral with any foreign governmental,
municipal or other office, which financing statement or analogous
document, assignment, security agreement or similar instrument is
still in effect, except, in each case, for Permitted
Liens.

 

SECTION .02. SECTION
3.03. Covenants

 

(a) . Each Grantor shall, at its own expense, take any and
all commercially reasonable actions necessary to defend title to
the Article 9 Collateral against all Persons and to defend the
Security Interest of the Collateral Agent in the Article 9
Collateral and the priority thereof against any Lien other than a
Permitted Lien.

 

(a) Each Grantor
agrees, at its own expense, to execute, acknowledge, deliver and
cause to be duly filed all such further instruments and documents
and take all such actions as the Collateral Agent may from time to
time reasonably request to better assure, preserve, protect and
perfect the Security Interest and the rights and remedies created
hereby, including the payment of any reasonable and documented or
invoiced out-of-pocket fees and Taxes required in connection with
the execution and delivery of this Agreement, the granting of the
Security Interest and the filing of any financing statements
(including fixture filings and transmitting utility filings) or
other documents in connection herewith or therewith. Each Grantor
will provide to the Collateral Agent, from time to time upon
request, evidence reasonably satisfactory to the Collateral Agent
as to the perfection and priority of the Liens created or intended
to be created pursuant to this Agreement.

 

(b) Each Grantor agrees
to maintain, at its own cost and expense, such complete and
accurate records with respect to the Article 9 Collateral owned by
it as is consistent with its current practices and in accordance
with such prudent and standard practices used in industries that
are the same as or similar to those in which such Grantor is
engaged, and, at such time or times as the Collateral Agent may
reasonably request, promptly to prepare and deliver to the
Collateral Agent a duly certified schedule or schedules in form and
detail reasonably satisfactory to the

 

 

 

 

 

 

 

(c) Collateral Agent
showing the identity, amount and location of any and all Article 9
Collateral. In addition, subject to Section 5.6 of the Credit
Agreement, the Collateral Agent and such Persons as the Collateral
Agent may reasonably designate shall have the right, at the
Grantors’ own cost and expense, to inspect the Article 9
Collateral, all records (including its records in respect of
accounts receivables) related thereto (and to make extracts and
copies from such records) and the premises upon which any of the
Article 9 Collateral is located, to discuss the Grantors’
affairs with the officers of the Grantors and their independent
registered public accounting firm and to verify, in the manner and
under the procedures determined by the Collateral Agent in good
faith to be reasonable, the identity, validity, amount, quality,
quantity, value, condition, location and status of, or any other
matter relating to, the Article 9 Collateral, including Accounts
and Payment Intangibles, provided that unless an Event of Default
has occurred and is continuing, the Collateral Agent may not
contact Account Debtors or other third parties without the prior
written consent of the relevant Grantor.

 

(d) At its option, the
Collateral Agent may, but shall not be obligated to, discharge past
due Taxes, assessments, charges, fees and Liens at any time levied
or placed on the Article 9 Collateral and not permitted by the
Credit Agreement, and may pay for the maintenance and preservation
of the Article 9 Collateral to the extent any Grantor fails to do
so as required by the Credit Agreement or this Agreement, and each
Grantor jointly and severally agrees to reimburse the Collateral
Agent within 10 Business Days after demand for any payment made or
any reasonable expense incurred by the Collateral Agent pursuant to
the foregoing authorization (and any such payment made or expense
incurred shall be additional Secured Obligations secured hereby).
Nothing in this paragraph shall be interpreted as excusing any
Grantor from the performance of, or imposing any obligation on the
Collateral Agent or any Secured Party to cure or perform, any
covenants or other promises of any Grantor with respect to taxes,
assessments, charges, fees and Liens and maintenance as set forth
herein or in the other Credit Documents.

 

(e) Each Grantor
(rather than the Collateral Agent or any other Secured Party) shall
remain liable (as between itself and any relevant counterparty) to
observe and perform all the conditions and obligations to be
observed and performed by it under each contract, agreement or
instrument relating to the Article 9 Collateral, all in accordance
with the terms and conditions thereof, and each Grantor jointly and
severally agrees to indemnify and hold harmless the Collateral
Agent and the other Secured Parties from and against any and all
liability for such performance.

 

(f) None of the
Grantors shall make or permit to be made any transfer of the
Article 9 Collateral and each Grantor shall remain at all times in
possession or control of the Article 9 Collateral owned by it, in
each case, except that unless and until the Collateral Agent shall
notify the Grantors that an Event of Default shall have occurred
and be continuing and that during the continuance thereof the
Grantors shall not sell, convey, lease, assign, transfer or
otherwise dispose of any Article 9 Collateral (which notice may be
given by telephone if promptly confirmed in writing), the Grantors
may use, transfer and dispose of the Article 9 Collateral in any
lawful manner not inconsistent with the provisions of this
Agreement, the Credit Agreement or any other Credit
Document.

 

(g) None of the
Grantors will, without the Collateral Agent’s prior written
consent, grant any extension of the time of payment of any Accounts
or Payment Intangibles

 

 

 

 

 

 

 

(h) included in the
Article 9 Collateral, compromise, compound or settle the same for
less than the full amount thereof, release, wholly or partly, any
Person liable for the payment thereof or allow any credit or
discount whatsoever thereon, other than extensions, compromises,
settlements, releases, credits or discounts granted or made in the
ordinary course of business and in accordance with past practice or
in connection with any proceeding under any Debtor Relief
Laws.

 

(i) The Grantors, at
their own expense, shall maintain or cause to be maintained
insurance in accordance with the requirements set forth in Section
5.5 of the Credit Agreement. Each Grantor irrevocably makes,
constitutes and appoints the Collateral Agent (and its designees)
as such Grantor’s true and lawful agent (and
attorney-in-fact) for the purpose, upon the occurrence and during
the continuance of an Event of Default, of making, settling and
adjusting claims in respect of Article 9 Collateral under policies
of insurance, endorsing the name of such Grantor on any check,
draft, instrument or other item of payment for the proceeds of such
policies of insurance and for making all determinations and
decisions with respect thereto. In the event that any Grantor at
any time or times shall fail to obtain or maintain any of the
policies of insurance required pursuant to Section 5.5 of the
Credit Agreement, or to pay any premium in whole or part relating
thereto, the Collateral Agent may, but shall not be obligated to,
without waiving or releasing any obligation or liability of the
Grantors hereunder or any Event of Default, in its sole discretion,
obtain and maintain such policies of insurance and pay such premium
and take any other actions with respect thereto as the Collateral
Agent deems advisable. All sums disbursed by the Collateral Agent
in connection with this paragraph, including reasonable
attorneys’ fees, court costs, expenses and other charges
relating thereto, shall be payable by the Grantors to the
Collateral Agent within 10 Business Days after demand and shall be
additional Secured Obligations secured hereby.

 

SECTION .03. SECTION
3.04. Other Actions

 

. In
order to further insure the attachment, perfection and priority of,
and the ability of the Collateral Agent to enforce, the Security
Interest, each Grantor agrees, in each case at such Grantor’s
own expense, to take the following actions with respect to the
following Article 9 Collateral:

 

(a) Instruments. Subject to Article II, if
any Grantor shall at any time hold or acquire any Instrument
constituting Collateral and evidencing an amount equal to or in
excess of $1,00250,000
such Grantor shall forthwith endorse, assign and deliver the same
to the Collateral Agent for the benefit of the Secured Parties,
accompanied by such instruments of transfer or assignment duly
executed in blank as the Collateral Agent may from time to time
reasonably request.

 

(b) Investment Property. Except to the
extent otherwise provided in Article II, if any Grantor shall at
any time hold or acquire any Pledged Equity that consists of
Certificated Securities, such Grantor shall forthwith endorse,
assign and deliver the same to the Collateral Agent for the benefit
of the applicable Secured Parties, accompanied by such instruments
of transfer or assignment duly executed in blank as the Collateral
Agent may from time to time reasonably request.

 

(c) Commercial Tort Claims. If any Grantor
shall at any time after the date of this Agreement acquire a
Commercial Tort Claim as to which the claim thereunder
is

 

 

 

 

 

 

 

(d) $2,00250,000
or more, such Grantor shall promptly notify the Collateral Agent
thereof in a writing signed by such Grantor and provide supplements
to Schedule II describing the details thereof and shall grant to
the Collateral Agent a security interest therein and in the
proceeds thereof, all upon the terms of this Agreement. In the
event any Supplemental Collateral Questionnaire or Pledge and
Security Agreement Supplement shall set forth any Commercial Tort
Claim, Schedule II shall be deemed to be supplemented to include
the reference to such Commercial Tort Claim (and the description
thereof), in the same form as such reference and description are
set forth on such Supplemental Collateral Questionnaire or Pledge
and Security Agreement Supplement.

 

Notwithstanding anything to the contrary in this Section 3.04, if
the actions described in Section 3.04(a) or (b) have been taken in
favor of the Super Senior Representative (as defined in the Super
Senior Intercreditor Agreement) and, pursuant to the Super Senior
Intercreditor Agreement, the Super Senior Representative acts as
agent and gratuitous bailee for the Collateral Agent for the
purpose of perfecting the Collateral Agent’s Liens hereunder,
the requirement to take any such action shall be deemed to be
satisfied.

 

SECTION .04. Covenants
Regarding Deposit Accounts.
The Grantors shall promptly, and in any event within the time
periods specified in Schedule III of the Amendment No. 1 and, with
respect to any Deposit Account, Securities Account or Commodities
Account (other than Excluded Deposit Accounts) established after
the Amendment No. 1 Effective Date, simultaneously with the
establishment thereof, deliver deposit account control agreements
or other similar agreement from each financial institution at which
such Grantor maintains any Deposit Account, Securities Account or
Commodities Account (other than Excluded Deposit Accounts) executed
by and among such financial institution, the Administrative Agent
and such Grantor sufficient to give the Administrative Agent
“control” (within the meaning set forth in Sections
9-104 and 9-106 of the Uniform Commercial Code) of such account and
otherwise to be in form and substance acceptable to the Requisite
Lenders and the Collateral Agent.

 

ARTICLE IV

 

 

 

SPECIAL
PROVISIONS CONCERNING INTELLECTUAL PROPERTY COLLATERAL

 

SECTION .00. SECTION
4.01. Grant of License to Use Intellectual
Property

 

.
Without limiting the provisions of Section 3.01 or any other rights
of the Collateral Agent as the holder of a Security Interest in any
Intellectual Property Collateral, for the purpose of enabling the
Collateral Agent to exercise rights and remedies under this
Agreement at such time as the Collateral Agent shall be lawfully
entitled to exercise such rights and remedies, each Grantor hereby
grants to the Collateral Agent an irrevocable, nonexclusive license
(exercisable without payment of rent, royalty or other compensation
to the Grantors) to use, license or sublicense any of the
Intellectual Property Collateral now owned or hereafter acquired by
such Grantor, and wherever the same may be located (whether or not
any license agreement by and between any Grantor and any other
Person relating to the use of such Intellectual Property Collateral
may be terminated hereafter), and including in such license
reasonable access to all media in which any of the licensed items
may be recorded or stored and to all computer software and programs
used for the compilation or printout thereof and, to the extent
permitted by applicable law, the right to

 

 

 

 

 

 

 

prosecute
and maintain all Intellectual Property Collateral and the right to
sue for infringement of the Intellectual Property Collateral. The
use of such license by the Collateral Agent may only be exercised,
at the option of the Collateral Agent, during the continuation of
an Event of Default; provided that any license,
sublicense or other transaction entered into by the Collateral
Agent in accordance herewith shall be binding upon the Grantors
notwithstanding any subsequent cure of an Event of Default. Each
Grantor further agrees to cooperate with the Collateral Agent in
any attempt to prosecute or maintain the Intellectual Property
Collateral or sue for infringement of the Intellectual Property
Collateral.

 

SECTION .01. SECTION
4.02. Protection of Collateral

 

(a) . Except to the extent permitted by Section 4.02(e), or
to the extent that failure to act could not reasonably be expected
to have a Material Adverse Effect, with respect to registration or
pending application of each item of its Intellectual Property
Collateral for which such Grantor has standing to do so, each
Grantor agrees to take, at its expense, all steps, including in the
U.S. Patent and Trademark Office, the U.S. Copyright Office and any
other Governmental Authority located in the United States, (i) to
maintain the validity and enforceability of any registered
Intellectual Property Collateral and maintain such Intellectual
Property Collateral in full force and effect, and (ii) to pursue
the registration and maintenance of each Patent, Trademark, or
Copyright registration or application, now or hereafter included in
such Intellectual Property Collateral of such Grantor, including
the payment of required fees and taxes, the filing of responses to
office actions issued by the U.S. Patent and Trademark Office, the
U.S. Copyright Office or other Governmental Authorities, the filing
of applications for renewal or extension, the filing of affidavits
under Sections 8 and 15 of the U.S. Trademark Act, the filing of
divisional, continuation, continuation-in-part, reissue and renewal
applications or extensions, the payment of maintenance fees and the
participation in interference, reexamination, opposition,
cancellation, infringement and misappropriation
proceedings.

 

(a) Except to the
extent permitted by Section 4.02(e), or to the extent that failure
to act could not reasonably be expected to have a Material Adverse
Effect, no Grantor shall do or permit any act or knowingly omit to
do any act whereby any of its Intellectual Property Collateral may
lapse, be terminated, or become invalid or unenforceable or placed
in the public domain (or, in case of a trade secret, lose its
competitive value).

 

(b) Except to the
extent permitted by Section 4.02(e), or to the extent that failure
to act could not reasonably be expected to have a Material Adverse
Effect, each Grantor shall take all steps to preserve and protect
each item of its Intellectual Property Collateral, including
maintaining the quality of any and all products or services used or
provided in connection with any of the Trademarks, consistent with
the quality of the products and services as of the date hereof, and
taking all steps necessary to ensure that all licensed users of any
of the Trademarks abide by the applicable license’s terms
with respect to the standards of quality.

 

(c) Each Grantor agrees
that, should it obtain an ownership or other interest in any
Intellectual Property Collateral after the Closing Date (the
“After-Acquired Intellectual
Property”) (i) the provisions of this Agreement shall
automatically apply thereto, and (ii) any such After-Acquired
Intellectual Property and, in the case of Trademarks, the goodwill
symbolized thereby, shall automatically become part of the
Intellectual Property Collateral subject to the terms and
conditions of this Agreement with respect thereto.

 

 

 

 

 

 

 

(d) Notwithstanding the
foregoing provisions of this Section 4.02 or elsewhere in this
Agreement, nothing in this Agreement shall prevent any Grantor from
discontinuing the use or maintenance of any of its Intellectual
Property Collateral, the enforcement of license agreements or the
pursuit of actions against infringers, to the extent permitted by
the Credit Agreement if such Grantor determines in its reasonable
business judgment that such discontinuance is desirable in the
conduct of its business.

 

(e) Upon and during the
continuance of an Event of Default, each Grantor shall, if
requested by the Collateral Agent, use its commercially reasonable
efforts to obtain all requisite consents or approvals by the
licensor of each Intellectual Property License to effect the
assignment of all such Grantor’s right, title and interest
thereunder to the Collateral Agent or its designee.

 

ARTICLE V

 

 

 

REMEDIES

 

SECTION .00. SECTION
5.01. Remedies Upon Default

 

.

Subject to the terms of the Super Senior Intercreditor
Agreement, Uupon
the occurrence and during the continuance of an Event of Default,
it is agreed that the Collateral Agent shall have the right to
exercise any and all rights afforded to a secured party with
respect to the Secured Obligations under this Agreement, the UCC or
other applicable law, and also may (i) require each Grantor to, and
each Grantor agrees that it will at its expense and upon request of
the Collateral Agent forthwith, assemble all or part of the
Collateral as directed by the Collateral Agent and make it
available to the Collateral Agent at a place and time to be
designated by the Collateral Agent that is reasonably convenient to
both parties; (ii) occupy any premises owned or, to the extent
lawful and permitted, leased (it being acknowledged and agreed that
the Grantors are not required to obtain any waiver or consent from
any owner of such leased premises in connection with such occupancy
or attempted occupancy) by any of the Grantors where the Collateral
or any part thereof is assembled or located for a reasonable period
in order to effectuate its rights and remedies hereunder or under
law, without obligation to such Grantor in respect of such
occupation; provided that the Collateral
Agent shall provide the applicable Grantor with notice thereof
prior to or promptly after such occupancy; (iii) exercise any and
all rights and remedies of any of the Grantors under or in
connection with the Collateral, or otherwise in respect of the
Collateral; provided that the Collateral
Agent shall provide the applicable Grantor with notice thereof
prior to or promptly after such exercise; (iv) withdraw any and all
cash or other Collateral from any Deposit Account or Securities
Account and apply such cash and other Collateral to the payment of
any and all Secured Obligations in the manner provided in Section
5.02; (v) subject to the mandatory requirements of applicable law
and the notice requirements described below, sell or otherwise
dispose of all or any part of the Collateral securing the Secured
Obligations at a public or private sale or at any broker’s
board or on any securities exchange, for cash, upon credit or for
future delivery as the Collateral Agent shall deem appropriate; and
(vi) with respect to any Intellectual Property Collateral, on
demand, cause the Security Interest to become an assignment,
transfer and conveyance of any of or all such Intellectual Property
Collateral by the applicable Grantors to the Collateral Agent, or
license or sublicense, whether general, special or otherwise, and
whether on an exclusive or nonexclusive basis, any such
Intellectual Property Collateral throughout the world on such terms
and conditions and in such manner as the Collateral Agent shall
determine, provided, however, that such terms shall
include all terms and restrictions that are customarily required to
ensure the continuing

 

 

 

 

 

 

 

validity
and effectiveness of the Intellectual Property Collateral at issue,
such as, without limitation, notice, quality control and inurement
provisions with regard to trademarks, patent designation provisions
with regard to patents, and copyright notices and restrictions or
decompilation and reverse engineering of copyrighted software, and
confidentiality protections for trade secrets. Each Grantor
acknowledges and recognizes that (a) the Collateral Agent may be
unable to effect a public sale of all or a part of the Collateral
consisting of securities by reason of certain prohibitions
contained in the Securities Act or the securities laws of various
states (the “Blue Sky
Laws”), but may be compelled to resort to one or more
private sales to a restricted group of purchasers who will be
obliged to agree, among other things, to acquire such securities
for their own account, for investment and not with a view to the
distribution or resale thereof, (b) private sales so made may be at
prices and upon other terms less favorable to the seller than if
such securities were sold at public sales, (c) neither the
Collateral Agent nor any other Secured Party has any obligation to
delay sale of any of the Collateral for the period of time
necessary to permit such securities to be registered for public
sale under the Securities Act or the Blue Sky Laws and (d) private
sales made under the foregoing circumstances shall be deemed to
have been made in a commercially reasonable manner. To the maximum
extent permitted by applicable law, each Grantor hereby waives any
claim against any Secured Party arising because the price at which
any Collateral may have been sold at a private sale was less than
the price that might have been obtained at a public sale, even if
the Collateral Agent accepts the first offer received and does not
offer such Collateral to more than one offeree. Upon consummation
of any such sale the Collateral Agent shall have the right to
assign, transfer and deliver to the purchaser or purchasers thereof
the Collateral so sold. Each such purchaser at any sale of
Collateral shall hold the property sold absolutely, free from any
claim or right on the part of any Grantor, and each Grantor hereby
waives (to the extent permitted by applicable law) all rights of
redemption, stay and appraisal which such Grantor now has or may at
any time in the future have under any rule of law or statute now
existing or hereafter enacted.

 

The
Collateral Agent shall give the applicable Grantors 10 days’
written notice (which each Grantor agrees is reasonable notice
within the meaning of Section 9-611 of the UCC or its equivalent in
other jurisdictions) of the Collateral Agent’s intention to
make any sale of Collateral. Such notice, in the case of a public
sale, shall state the time and place for such sale and, in the case
of a sale at a broker’s board or on a securities exchange,
shall state the board or exchange at which such sale is to be made
and the day on which the Collateral, or portion thereof, will first
be offered for sale at such board or exchange. Any such public sale
shall be held at such time or times within ordinary business hours
and at such place or places as the Collateral Agent may fix and
state in the notice (if any) of such sale. The Collateral Agent may
conduct one or more going out of business sales, in the Collateral
Agent’s own right or by one or more agents and contractors.
Such sale(s) may be conducted upon any premises owned, leased, or
occupied by any Grantor. The Collateral Agent and any such agent or
contractor, in conjunction with any such sale, may augment the
Inventory with other goods (all of which other goods shall remain
the sole property of the Collateral Agent or such agent or
contractor). Any amounts realized from the sale of such goods which
constitute augmentations to the Inventory (net of an allocable
share of the costs and expenses incurred in their disposition)
shall be the sole property of the Collateral Agent or such agent or
contractor and neither any Grantor nor any Person claiming under or
in right of any Grantor shall have any interest therein. At any
such sale, the Collateral, or portion thereof, to be sold may be
sold in one lot as an entirety or in separate parcels, as the
Collateral Agent may (in its sole and absolute discretion)
determine. The Collateral Agent shall not be obligated to make
any

 

 

 

 

 

 

 

sale of
any Collateral if it shall determine not to do so, regardless of
the fact that notice of sale of such Collateral shall have been
given. The Collateral Agent may, without notice or publication,
adjourn any public or private sale or cause the same to be
adjourned from time to time by announcement at the time and place
fixed for sale, and such sale may, without further notice, be made
at the time and place to which the same was so adjourned. In case
any sale of all or any part of the Collateral is made on credit or
for future delivery, the Collateral so sold may be retained by the
Collateral Agent until the sale price is paid by the purchaser or
purchasers thereof, but the Collateral Agent shall not incur any
liability in case any such purchaser or purchasers shall fail to
take up and pay for the Collateral so sold and, in case of any such
failure, such Collateral may be sold again upon like notice. In the
event of a foreclosure, exercise of a power of sale or a similar
enforcement action by the Collateral Agent on any of the Collateral
pursuant to a public or private sale or other disposition
(including pursuant to Section 363(k), Section 1129(b)(2)(a)(ii) or
any other applicable section of the Bankruptcy Code, any analogous
Debtor Relief Laws or any law relating to the granting or
perfection of security interests), the Collateral Agent (or any
Lender, except with respect to a “credit bid” pursuant
to Section 363(k), Section 1129(b)(2)(a)(ii) or any other
applicable section of the Bankruptcy Code, any analogous Debtor
Relief Laws or any law relating to the granting or perfection of
security interests) may be the purchaser or licensor of any or all
of such Collateral at any such sale or other disposition and the
Collateral Agent, as agent for and representative of the Secured
Parties (but not any Lender or Lenders in its or their respective
individual capacities) shall be entitled, upon instructions from
the Requisite Lenders and in accordance with Section 9.8(b) of the
Credit Agreement, for the purpose of bidding and making settlement
or payment of the purchase price for all or any portion of the
Collateral sold or licensed at any such sale or other disposition,
to use and apply any of the Secured Obligations as a credit on
account of the purchase price for any Collateral payable by the
Collateral Agent at such sale or other disposition. For purposes of
determining the Grantors’ rights in the Collateral, a written
agreement to purchase the Collateral or any portion thereof shall
be treated as a sale thereof, the Collateral Agent shall be free to
carry out such sale pursuant to such agreement and no Grantor shall
be entitled to the return of the Collateral or any portion thereof
subject thereto, notwithstanding the fact that after the Collateral
Agent shall have entered into such an agreement all Events of
Default shall have been remedied and the Secured Obligations paid
in full, provided,
however, that such
terms shall include terms and restrictions that are customarily
required to ensure the continuing validity and effectiveness of the
Intellectual Property Collateral at issue, such as, without
limitation, quality control and inurement provisions with regard to
Trademarks, patent designation provisions with regard to patents,
and copyright notices and restrictions or decompilation and reverse
engineering of copyrighted software, and protecting the
confidentiality of trade secrets. As an alternative to exercising
the power of sale herein conferred upon it, the Collateral Agent
may proceed by a suit or suits at law or in equity to foreclose
this Agreement and to sell the Collateral or any portion thereof
pursuant to a judgment or decree of a court or courts having
competent jurisdiction or pursuant to a proceeding by a court
appointed receiver. Any sale pursuant to the provisions of this
Section 5.01 shall be deemed to conform to the commercially
reasonable standards as provided in Section 9-610(b) of the UCC or
its equivalent in other jurisdictions.

 

SECTION .01. SECTION
5.02. Application of Proceeds

 

.
Subject to any Permitted Intercreditor Agreement then in effect,
the Collateral Agent shall apply the proceeds of any collection or
sale of Collateral, including any Collateral consisting of cash, as
follows:

 

 

 

 

 

 

 

FIRST,
to the payment of all costs and expenses incurred by the Collateral
Agent or the Administrative Agent in connection with such
collection, sale, foreclosure or realization or otherwise in
connection with this Agreement, any other Credit Document or any of
the Secured Obligations, including all court costs and the fees and
expenses of its agents and legal counsel, the repayment of all
advances made by the Collateral Agent or the Administrative Agent
hereunder or under any other Credit Document on behalf of any
Grantor and any other costs or expenses incurred in connection with
the exercise of any right or remedy hereunder or under any other
Credit Document;

SECOND,
to the payment in full of the Secured Obligations (the amounts so
applied to be distributed among the Secured Parties pro rata in
accordance with the amounts of the Secured Obligations owed to them
on the date of any such distribution); and

THIRD,
to the Grantors, their successors or assigns, or as a court of
competent jurisdiction may otherwise direct.

The
Collateral Agent shall have absolute discretion as to the time of
application of any such proceeds, moneys or balances in accordance
with this Agreement,
the Intercreditor Agreement and the Credit Agreement. Upon
any sale of Collateral by the Collateral Agent (including pursuant
to a power of sale granted by statute or under a judicial
proceeding), the receipt of the Collateral Agent or of the officer
making the sale shall be a sufficient discharge to the purchaser or
purchasers of the Collateral so sold and such purchaser or
purchasers shall not be obligated to see to the application of any
part of the purchase money paid over to the Collateral Agent or
such officer or be answerable in any way for the misapplication
thereof. It is understood and agreed that the Grantors shall remain
jointly and severally liable to the extent of any deficiency
between the amount of the proceeds of the Collateral and the
aggregate amount of the Secured Obligations, including any
attorney’s fees and other expenses incurred by the Collateral
Agent or any other Secured Party to collect such
deficiencies.

 

Notwithstanding
anything to the contrary contained herein or in any other Credit
Document, the Collateral Agent shall not be required to apply (and
shall not incur any liability for not applying) the proceeds of any
collection or sale of Collateral, including any Collateral
consisting of cash, in the manner set forth above in this Section
5.02 to any Specified Cash Management Services Obligations or any
Specified Hedge Obligations unless either (a) such Specified Cash
Management Services Obligations or Specified Hedge Obligations are
owed to the Collateral Agent or an Affiliate thereof or (b) the
Collateral Agent shall have received, prior to the time of such
application (it being understood that (i) such notice may be
provided after such Obligations have been incurred and whether or
not an Event of Default has occurred and is continuing and (ii)
such Specified Cash Management Services Obligations and Specified
Hedge Obligations shall continue to be Secured Obligations whether
or not any such notice has been provided), written notice of the
existence and amount thereof, together with such supporting
documentation as the Collateral Agent may reasonably request, from
the applicable counterparty to any Hedge Agreement the obligations
under which constitute such Specified Hedge Obligations or the
applicable provider of Cash Management Services the obligations in
respect of which constitute such Specified Cash Management Services
Obligations (it being further agreed that the Collateral Agent
shall not be required to make any inquiry as to the existence of,
or to verify the payment of or that satisfactory arrangements have
been made with respect to the payment of, any

 

 

 

 

 

 

 

Specified Cash
Management Services Obligations or any Specified Hedge Obligations,
in each case, unless such Specified Cash Management Services
Obligations or Specified Hedge Obligations are owed to the
Collateral Agent or an Affiliate thereof or the Collateral Agent
shall have received such written notice and such supporting
documentation in respect thereof from such applicable counterparty
or provider). Whenever the Collateral Agent is required to
determine for any purposes of this Agreement the existence or
amount of any Specified Cash Management Services Obligation or any
Specified Hedge Obligation in respect of which it shall have
previously received notice pursuant to the preceding sentence, it
shall request written certification of such existence or amount
from the Borrower and shall be entitled to make such determination
on the basis of such certification; provided, however, that if,
notwithstanding the request of the Collateral Agent, the Borrower
shall fail or refuse reasonably promptly to certify as to the
existence or amount of any Specified Cash Management Services
Obligation or any Specified Hedge Obligation, the Collateral Agent
shall be entitled to determine such existence or amount by such
method as the Collateral Agent may, in the exercise of its good
faith judgment, determine. The Collateral Agent may rely
conclusively, and shall be fully protected in so relying, on any
determination made by it in accordance with the provisions of the
preceding sentence (or as otherwise directed by a court of
competent jurisdiction) and shall have no liability to any Grantor,
any holder of any Specified Cash Management Services Obligation or
any Specified Hedge Obligation or any other Person as a result of
such determination or any action taken pursuant
thereto.

 

Notwithstanding
anything to the contrary contained herein or in any other Credit
Document, any value received by the Collateral Agent or any other
Secured Party in respect of any Vector Subordinated Note
Collateral, including any prepayment, repayment or other amount or
value received in respect of the Vector Subordinate Note and any
amounts on deposit in the Vector Subordinated Note Cash Collateral
Account, whether resulting from the exercise of remedies under any
Credit Document or otherwise and whether constituting Collateral
consisting of Cash or Cash Equivalents or the proceeds of any
collection or sale of any Vector Subordinated Note Collateral or
otherwise, shall be applied (a) FIRST, to the payment in full of
all Secured Obligations in the form of accrued and unpaid interest
and fees in respect of all Revolving Commitments, Revolving Loans
and Letters of Credit, (b) SECOND, to the payment in full of all
outstanding Revolving Loans, (c) THIRD, to the Cash
Collateralization of Letters of Credit in an amount equal to 103%
of the Letter of Credit Usage as of such time and (d) FOURTH, to
the payment in full of any and all other the Secured Obligations
owed to the Revolving Lenders in their capacities as such (all such
amounts so applied to be distributed among the Revolving Lenders in
accordance with their Pro Rata Shares of the Revolving Exposure on
the date of any such distribution), in each case, prior to any
application in accordance with the first paragraph of this Section
5.02 or any other application required by any other provisions of
the Credit Documents; provided that any Cash or Cash Equivalents
released to the Borrower from the Vector Subordinated Note Cash
Collateral Account in accordance with Section 9.8(d)(ii)(D) of the
Credit Agreement shall, upon such release, no longer be subject to
the provisions of this paragraph.

 

ARTICLE VI

 

 

 

MISCELLANEOUS

 

 

 

 

 

SECTION .00. SECTION
6.01. Notices

 

. All
communications and notices hereunder shall (except as otherwise
expressly permitted herein) be in writing and given as provided in
Section 10.1 of the Credit Agreement. All communications and
notices hereunder to a Grantor other than the Borrower shall be
given to it in care of the Borrower.

 

SECTION .01. SECTION
6.02. Waivers; Amendment

 

(a) . No failure or delay on the part of any Agent, any
Arranger, any Lender or any Issuing Bank in exercising any power,
right or privilege hereunder or under any other Credit Document
shall impair such power, right or privilege or be construed to be a
waiver thereof or of any Default or Event of Default or
acquiescence therein, nor shall any single or partial exercise of
any such power, right or privilege, or any abandonment or
discontinuance of steps to enforce such power, right or privilege,
preclude any other or further exercise thereof or the exercise of
any other power, right or privilege. The powers, rights, privileges
and remedies of the Agents, the Arrangers, the Lenders and the
Issuing Banks hereunder and under the other Credit Documents are
cumulative and shall be in addition to and independent of all
powers, rights, privileges and remedies they would otherwise have.
Without limiting the generality of the foregoing, the execution and
delivery of this Agreement or any other Credit Document or the
making of any Loan shall not be construed as a waiver of any
Default or Event of Default, regardless of whether any Agent, any
Arranger, any Lender or any Issuing Bank may have had notice or
knowledge of such Default or Event of Default at the time. No
waiver of any provision of this Agreement or consent to any
departure by any Grantor therefrom shall in any event be effective
unless the same shall be permitted by Section 6.02(b), and then
such waiver or consent shall be effective only in the specific
instance and for the purpose for which given

 

(a) Neither this
Agreement nor any provision hereof may be waived, amended or
modified except pursuant to an agreement or agreements in writing
entered into by the Collateral Agent and the Grantor or Grantors
with respect to which such waiver, amendment or modification is to
apply, subject to any consent required in accordance with Section
10.5 of the Credit Agreement.

 

SECTION .02. SECTION
6.03. Collateral Agent’s Fees and Expenses;
Indemnification

 

(a) . The parties hereto agree that the Collateral Agent
shall be entitled to reimbursement of its reasonable and documented
out-of-pocket expenses incurred hereunder as provided in Section
10.2 of the Credit Agreement.

 

(a) Without limitation
of its indemnification obligations under the other Credit
Documents, each Grantor, jointly and severally, agrees to indemnify
the Collateral Agent and the other Indemnitees against, and hold
each Indemnitee harmless from any and all Indemnified Liabilities
incurred by or asserted against any such Indemnitee to the extent
such Grantor would be required to do so pursuant to Section 10.3 of
the Credit Agreement.

 

(b) Any such amounts
payable as provided hereunder shall be additional Secured
Obligations secured hereby and by the other Collateral Documents.
The provisions of this Section 6.03 shall remain operative and in
full force and effect regardless of the termination of this
Agreement or any other Credit Document, the consummation of the
transactions contemplated hereby, the repayment of any of the
Secured Obligations, the invalidity or unenforceability of any term
or provision of this Agreement or any other Credit Document, or
any

 

 

 

 

 

 

 

(c) investigation made
by or on behalf of the Collateral Agent or any other Secured Party.
All amounts due under this Section 6.03 shall be payable promptly
after written demand therefor.

 

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

 

(e) Each Grantor agrees
that none of any Agent, any Arranger, any Lender, any Issuing Bank
or any Related Party of any of the foregoing will have any
liability to any Grantor or any Person asserting claims on behalf
of or in right of any Grantor or any other Person in connection
with or as a result of this Agreement or any other Credit Document
or any agreement or instrument contemplated hereby or thereby or
referred to herein or therein, the transactions contemplated hereby
or thereby, any Loan or the use of the proceeds thereof or any act
or omission or event occurring in connection therewith except (but
subject to Section 6.03(d)), in the case of any Grantor, to the
extent that any losses, claims, damages, liabilities or expenses
have been found by a final, non-appealable judgment of a court of
competent jurisdiction to have resulted from (i) the gross
negligence or willful misconduct of such Agent, such Arranger, such
Lender or such Issuing Bank or its Related Parties in performing
its express obligations under this Agreement or any other Credit
Document or (ii) a material breach in bad faith by such Agent,
Arranger, Lender or Issuing Bank or its Related Parties of its
express obligations under the Credit Agreement.

 

SECTION .03. SECTION
6.04. Independence of Covenants

 

. All
covenants hereunder shall be given independent effect so that if a
particular action or condition is not permitted by any of such
covenants, the fact that it would be permitted by an exception to,
or would otherwise be within the limitations of, another covenant
shall not avoid the occurrence of a Default or an Event of Default
if such action is taken or condition exists.

 

SECTION .04. Survival
of Agreement

 

. All
covenants, agreements, representations and warranties made by the
Credit Parties in this Agreement and in the certificates or other
documents delivered in connection with or pursuant to this
Agreement shall be considered to have been relied upon by the
Agents, the Arrangers, the Lenders and the Issuing Banks and shall
survive the execution and delivery of this Agreement and the making
of any Loans and issuance of any Letters of Credit, regardless of
any investigation made by any Agent, any Arranger, any Lender and
any Issuing Bank or on its behalf and notwithstanding that any
Agent, any Arranger, any Lender or any Issuing Bank may have had
notice or knowledge of any Default or Event of Default or incorrect
representation or warranty at the time this Agreement is executed
and delivered or any credit is extended under the Credit Agreement.
Such covenants and agreements

 

 

 

 

 

 

 

made by
the Credit Parties shall continue in full force and effect as long
as the principal of or any accrued interest on any Loan or any fee
or any other amount payable under the Credit Agreement or any other
Credit Document is outstanding and unpaid or any Letter of Credit
is outstanding and so long as the Commitments have not expired or
terminated.

 

SECTION .05. Counterparts;
Effectiveness; Several Agreement

 

SECTION 6.06. . This Agreement may be executed in any number
of counterparts, each of which when so executed and delivered shall
be deemed an original, but all such counterparts together shall
constitute but one and the same instrument. Delivery of an executed
counterpart of a signature page of this Agreement by facsimile or
in electronic format (i.e., “pdf” or “tif”)
shall be effective as delivery of a manually executed counterpart
of this Agreement. This Agreement shall become effective as to any
Grantor when a counterpart hereof executed on behalf of such
Grantor shall have been delivered to the Collateral Agent and a
counterpart hereof shall have been executed on behalf of the
Collateral Agent, and thereafter shall be binding upon such Grantor
and the Collateral Agent and their respective permitted successors
and assigns, and shall inure to the benefit of such Grantor, the
Collateral Agent and the other Secured Parties and their respective
permitted successors and assigns, except that no Grantor shall have
the right to assign or transfer its rights or obligations hereunder
or any interest herein or in the Collateral (and any such
assignment or transfer shall be void) except as expressly
contemplated by this Agreement or the Credit Agreement. This
Agreement shall be construed as a separate agreement with respect
to each Grantor and may be amended, modified, supplemented, waived
or released with respect to any Grantor without the approval of any
other Grantor and without affecting the obligations of any other
Grantor hereunder.

 

SECTION .06. SECTION
6.07. Severability

 

. In
case any provision in or obligation under this Agreement shall be
invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions
or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired
thereby.

 

SECTION .07. SECTION
6.08. Set-Off

 

. In
addition to any rights now or hereafter granted under applicable
law and not by way of limitation of any such rights, upon the
occurrence and during the continuance of any Event of Default each
Lender and each Issuing Bank is hereby authorized by each Grantor
at any time or from time to time, without notice to any Grantor,
any such notice being hereby expressly waived, to set off and to
appropriate and to apply any and all deposits (general or special,
including Indebtedness evidenced by certificates of deposit,
whether matured or unmatured, but not including trust accounts) and
any other Indebtedness at any time held or owing by such Lender or
such Issuing Bank to or for the credit or the account of any
Grantor against and on account of the obligations and liabilities
of any Grantor to such Lender or such Issuing Bank hereunder and
under the other Credit Documents, including all claims of any
nature or description arising out of or connected hereto or
thereto, irrespective of whether or not (a) such Lender or such
Issuing Bank shall have made any demand hereunder or under the
other Credit Documents or (b) the principal of or the interest on
the Loans or any amounts in respect of the Letters of Credit or any
other amounts due hereunder or under any other Credit Document
shall have become due and payable and although such obligations and
liabilities, or any of them, may be contingent or unmatured;
provided that in the event that any Defaulting Lender shall
exercise any such right of set-off, all amounts so set off shall be
paid over immediately to the Administrative Agent for further
application in accordance with the provisions

 

 

 

 

 

 

 

of
Section 2.21 of the Credit Agreement and, pending such payment,
shall be segregated by such Defaulting Lender from its other funds
and deemed held in trust for the benefit of the Administrative
Agent, the Collateral Agent, the Issuing Banks and the
Lenders.

 

SECTION .08. SECTION
6.09. APPLICABLE LAW

 

. THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
(INCLUDING ANY CLAIMS SOUNDING IN CONTRACT LAW OR TORT LAW ARISING
OUT OF THE SUBJECT MATTER HEREOF AND ANY DETERMINATIONS WITH
RESPECT TO POST-JUDGMENT INTEREST) SHALL BE GOVERNED BY, AND SHALL
BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF
THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW
OF THE STATE OF NEW YORK.

 

SECTION .09. SECTION
6.10. CONSENT TO JURISDICTION

 

.
SUBJECT TO CLAUSE (E) BELOW, ALL JUDICIAL PROCEEDINGS BROUGHT
AGAINST ANY PARTY HERETO ARISING OUT OF OR RELATING HERETO OR ANY
OTHER COLLATERAL DOCUMENT, OR ANY OF THE SECURED OBLIGATIONS, SHALL
BE BROUGHT EXCLUSIVELY IN ANY FEDERAL COURT OF THE UNITED STATES OF
AMERICA SITTING IN THE BOROUGH OF MANHATTAN OR, IF THAT COURT DOES
NOT HAVE SUBJECT MATTER JURISDICTION, IN ANY STATE COURT LOCATED IN
THE CITY AND COUNTY OF NEW YORK. BY EXECUTING AND DELIVERING THIS
AGREEMENT, EACH PARTY HERETO, FOR ITSELF AND IN CONNECTION WITH ITS
PROPERTIES, IRREVOCABLY (A) ACCEPTS GENERALLY AND UNCONDITIONALLY
THE EXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS (SUBJECT TO
CLAUSE (E) BELOW); (B) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS;
(C) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN
ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN
RECEIPT REQUESTED, TO THE APPLICABLE PARTY AT ITS ADDRESS PROVIDED
IN ACCORDANCE WITH SECTION 6.01; (D) AGREES THAT SERVICE AS
PROVIDED IN CLAUSE (C) ABOVE IS SUFFICIENT TO CONFER PERSONAL
JURISDICTION OVER THE APPLICABLE GRANTOR IN ANY SUCH PROCEEDING IN
ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING
SERVICE IN EVERY RESPECT; AND (E) AGREES THAT THE AGENTS, THE
ARRANGER AND THE LENDERS RETAIN THE RIGHT TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY
GRANTOR IN THE COURTS OF ANY OTHER JURISDICTION IN CONNECTION WITH
THE EXERCISE OF ANY RIGHTS HEREUNDER OR UNDER ANY OTHER COLLATERAL
DOCUMENT OR ANY EXERCISE OF REMEDIES IN RESPECT OF COLLATERAL OR
THE ENFORCEMENT OF ANY JUDGMENT, AND HEREBY SUBMITS TO THE
JURISDICTION OF, AND CONSENTS TO VENUE IN, ANY SUCH
COURT.

 

SECTION .10. SECTION
6.11. WAIVER OF JURY TRIAL

 

. EACH
OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING
HEREUNDER OR UNDER ANY OF THE OTHER CREDIT DOCUMENTS OR ANY
DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS
TRANSACTION OR THE

 

 

 

 

 

 

 

RELATIONSHIP
THAT IS BEING ESTABLISHED. THE SCOPE OF THIS WAIVER IS INTENDED TO
BE 
ALL ALL-ENCOMPASSING
OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT
RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING
CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER
COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES
THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS
RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN
ENTERING INTO THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS, AND
THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED
FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS
THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT
KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING
CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE,
MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING
(OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO
THIS SECTION 6.11 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND
THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS,
SUPPLEMENTS OR MODIFICATIONS HERETO OR ANY OF THE OTHER CREDIT
DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE
LOANS MADE HEREUNDER. IN THE EVENT OF LITIGATION, THIS AGREEMENT
MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE
COURT.

 

SECTION .11. SECTION
6.12. Headings

 

.
Article and Section headings herein are included herein for
convenience of reference only and shall not constitute a part
hereof for any other purpose or be given any substantive
effect.

 

SECTION .12. SECTION
6.13. Marshalling; Payments Set Aside

 

. None
of the Agents, the Arrangers, the Lenders or the Issuing Banks
shall be under any obligation to marshal any assets in favor of any
Grantor or any other Person or against or in payment of any or all
of the Secured Obligations. To the extent that any Grantor makes a
payment or payments to any Agent, any Arranger, any Lender or any
Issuing Bank (or to the Administrative Agent or the Collateral
Agent, on behalf of any Agent, any Arranger, any Lender or any
Issuing Bank), or any Agent, any Arranger, any Lender or any
Issuing Bank enforces any security interests or exercises any right
of set-off, and such payment or payments or the proceeds of such
enforcement or set-off or any part thereof are subsequently
invalidated, declared to be fraudulent, preferential or at
undervalue, set aside and/or required to be repaid to a trustee,
receiver or any other party under any Debtor Relief Laws, any other
state or federal law, common law or any equitable cause, then, to
the extent of such recovery, the obligation or part thereof
originally intended to be satisfied, and all Liens, rights and
remedies therefor or related thereto, shall be revived and
continued in full force and effect as if such payment or payments
had not been made or such enforcement or set-off had not
occurred.

 

SECTION .13. SECTION
6.14. Security Interest Absolute

 

. All
rights of the Collateral Agent hereunder, the Security Interest,
the grant of a security interest in the Pledged Collateral and all
obligations of each Grantor hereunder shall be absolute and
unconditional irrespective of (a) any lack of validity or
enforceability of the Credit Agreement, any other Credit Document,
any agreement with respect to any of the Secured Obligations or any
other agreement or instrument relating to any of the foregoing, (b)
any change in the time, manner or place of

 

 

 

 

 

 

 

payment
of, or in any other term of, all or any of the Secured Obligations,
or any other amendment or waiver of or any consent to any departure
from the Credit Agreement, any other Credit Document or any other
agreement or instrument, (c) any exchange, release or
non-perfection of any Lien on other collateral, or any release or
amendment or waiver of or consent under or departure from any
guarantee, securing or guaranteeing all or any of the Secured
Obligations or (d) subject only to termination of a Grantor’s
obligations hereunder in accordance with the terms of Section 9.8
of the Credit Agreement, but without prejudice to reinstatement
rights under Section 7.9 of the Credit Agreement, any other
circumstance that might otherwise constitute a defense available
to, or a discharge of, any Grantor in respect of the Secured
Obligations or this Agreement.

 

SECTION .14. SECTION
6.15. Termination or Release

 

(a) . This Agreement, the Security Interest and all other
security interests granted hereby shall terminate with respect to
all Secured Obligations when all Secured Obligations (excluding
contingent obligations as to which no claim has been made and the
Specified Hedge Obligations and Specified Cash Management Services
Obligations) have been paid in full, all Commitments have
terminated and no Letter of Credit shall be
outstanding.

 

(a) A Guarantor
Subsidiary shall automatically be released from its obligations
hereunder and the Security Interest in the Collateral of such
Guarantor Subsidiary shall be automatically released in the
circumstances set forth in Section 9.8(d) of the Credit
Agreement.

 

(b) The Security
Interest in any Collateral shall be automatically released in the
circumstances set forth in Section 9.8(d) of the Credit
Agreement.

 

(c) In connection with
any termination or release pursuant to Section 6.15(a), 6.15(b) or
6.15(c), the Collateral Agent shall promptly (i) execute and
deliver to any Grantor, at such Grantor’s expense, all
documents that such Grantor shall reasonably request to evidence
such termination or release and (ii) subject to the provisions of
any Permitted Intercreditor Agreement, return or cause to be
returned to such Grantor all Collateral that is subject to such
release and is held or controlled by the Collateral Agent. Any
execution and delivery of documents, or performing of other
actions, pursuant to this Section 6.15 shall be without recourse to
or warranty by the Collateral Agent.

 

(d) At any time that
any Grantor desires that the Collateral Agent take any action
described in Section 6.15(d), such Grantor shall, upon request of
the Collateral Agent, deliver to the Collateral Agent a certificate
of an Authorized Officer of the Borrower certifying that the
release of the applicable Collateral is permitted pursuant to
Section 6.15(a), 6.15(b) or 6.15(c). The Collateral Agent shall
have no liability whatsoever to any Secured Party as the result of
any release of any Collateral by it as permitted (or which the
Collateral Agent in good faith believes to be permitted) by this
Section 6.15.

 

SECTION .15. SECTION
6.16. Additional Grantors

 

.
Pursuant to Section 5.10 of the Credit Agreement, certain
Restricted Subsidiaries of the Borrower may or are required to
enter in this Agreement from time to time as Grantors. Upon
execution and delivery by the Collateral Agent and a Restricted
Subsidiary of a Pledge and Security Agreement Supplement, such
Restricted Subsidiary shall become a Grantor hereunder with the
same force and effect as if originally named as a Grantor herein.
The execution and delivery of any Pledge and Security

 

 

 

 

 

 

 

Agreement
Supplement shall not require the consent of any other Grantor
hereunder. The rights and obligations of each Grantor hereunder
shall remain in full force and effect notwithstanding the addition
of any new Grantor as a party to this Agreement.

 

SECTION .16. SECTION
6.17. Collateral Agent Appointed
Attorney-in-Fact

 

. Each
Grantor hereby appoints the Collateral Agent the true and lawful
attorney-in-fact of such Grantor for the purpose of carrying out
the provisions of this Agreement and taking any action and
executing any instrument that the Collateral Agent may deem
necessary or advisable to accomplish the purposes hereof at any
time after the occurrence and during the continuance of an Event of
Default, which appointment is irrevocable and coupled with an
interest. Without limiting the generality of the foregoing, the
Collateral Agent shall have the right, upon the occurrence and
during the continuance of an Event of Default, with full power of
substitution either in the Collateral Agent’s name or in the
name of such Grantor: (a) to receive, endorse, assign and/or
deliver any and all notes, acceptances, checks, drafts, money
orders or other evidences of payment relating to the Collateral or
any part thereof; (b) to demand, collect, receive payment of, give
receipt for and give discharges and releases of all or any of the
Collateral; (c) to sign the name of any Grantor on any invoice or
bill of lading relating to any of the Collateral; (d) to send
verifications of Accounts or Payment Intangibles to any Account
Debtor; (e) to commence and prosecute any and all suits, actions or
proceedings at law or in equity in any court of competent
jurisdiction to collect or otherwise realize on all or any of the
Collateral or to enforce any rights in respect of any Collateral;
(f) to settle, compromise, compound, adjust or defend any actions,
suits or proceedings relating to all or any of the Collateral; (g)
to notify, or to require any Grantor to notify, Account Debtors to
make payment directly to the Collateral Agent or to a Collateral
Account and adjust, settle or compromise the amount of payment of
any Account or Payment Intangible; (h) to make, settle and adjust
claims in respect of Collateral under policies of insurance and to
endorse the name of such Grantor on any check, draft, instrument or
any other item of payment with respect to the proceeds of such
policies of insurance and for making all determinations and
decisions with respect thereto; and (i) to use, sell, assign,
transfer, pledge, make any agreement with respect to or otherwise
deal with all or any of the Collateral, and to do all other acts
and things necessary to carry out the purposes of this Agreement,
as fully and completely as though the Collateral Agent were the
absolute owner of the Collateral for all purposes; provided that
nothing herein contained shall be construed as requiring or
obligating the Collateral Agent to make any commitment or to make
any inquiry as to the nature or sufficiency of any payment received
by the Collateral Agent, or to present or file any claim or notice,
or to take any action with respect to the Collateral or any part
thereof or the moneys due or to become due in respect thereof or
any property covered thereby. The Collateral Agent and the other
Secured Parties shall be accountable only for amounts actually
received as a result of the exercise of the powers granted to them
herein, and none of the Collateral Agent, any other Secured Party
or any Related Party of any of the foregoing shall be responsible
to any Grantor for any act or failure to act hereunder, except for
its own gross negligence or willful misconduct or a material breach
in bad faith by it of its express obligations under this Agreement,
in each case, as determined by the final non-appealable judgment of
a court of competent jurisdiction. Notwithstanding anything to the
contrary contained herein or in any other Credit Document, neither
the Administrative Agent nor the Collateral Agent shall have any
responsibility for the preparing, recording, filing, re-recording
or re-filing of any financing statements (amendments or
continuations) or other instruments in any public
office.

 

 

 

 

 

 

 

SECTION .17. SECTION
6.18. General Authority of the Collateral Agent

 

. By
acceptance of the benefits of this Agreement and any other
Collateral Documents, each Secured Party (whether or not a
signatory hereto) shall be deemed irrevocably (a) to consent to the
appointment of the Collateral Agent as its agent hereunder and
under such other Collateral Documents, (b) to confirm that the
Collateral Agent shall have the authority to act as the exclusive
agent of such Secured Party for the enforcement of any provisions
of this Agreement and such other Collateral Documents against any
Grantor, the exercise of remedies hereunder or thereunder and the
giving or withholding of any consent or approval hereunder or
thereunder relating to any Collateral or any Grantor’s
obligations with respect thereto, (c) to agree that it shall not
take any action to enforce any provisions of this Agreement or any
other Collateral Document against any Grantor, to exercise any
remedy hereunder or thereunder or to give any consents or approvals
hereunder or thereunder except as expressly provided in this
Agreement or any other Collateral Document and (d) to agree to be
bound by the terms of this Agreement, any other Collateral
Documents and any Permitted Intercreditor Agreement then in effect.
BY ACCEPTING THE BENEFITS OF THIS AGREEMENT AND THE SECURITY
INTERESTS CREATED HEREBY, EACH SECURED PARTY ACKNOWLEDGES THE
PROVISIONS OF SECTION 9 OF THE CREDIT AGREEMENT, INCLUDING THE
RIGHTS, POWERS, PRIVILEGES, PROTECTIONS, INDEMNITIES AND IMMUNITIES
OF THE AGENTS, AND AGREES TO BE BOUND BY SUCH PROVISIONS AS FULLY
AS IF THEY WERE SET FORTH HEREIN.

 

SECTION .18. SECTION
6.19. Recourse

 

. This
Agreement is made with full recourse to each Grantor and pursuant
to and upon all the warranties, representations, covenants and
agreements on the part of such Grantor contained herein, in the
Credit Agreement and the other Credit Documents and otherwise in
writing in connection herewith or therewith, with respect to the
Secured Obligations of each applicable Secured Party. It is the
desire and intent of each Grantor and each Secured Party that this
Agreement shall be enforced against each Grantor to the fullest
extent permissible under the laws applied in each jurisdiction in
which enforcement is sought.

 

SECTION .19. SECTION
6.20. Mortgages

 

. In
the event that any of the Collateral hereunder is also subject to a
valid and enforceable Lien under the terms of a Mortgage and the
terms thereof are inconsistent with the terms of this Agreement,
then with respect to such Collateral, the terms of such Mortgage
shall control in the case of Fixtures and Real Estate Asset leases,
letting and licenses of, and contracts, and agreements relating to
the lease of, Real Estate Assets, and the terms of this Agreement
shall control in the case of all other Collateral.

 

SECTION .20. SECTION
6.21. Permitted Intercreditor Agreements

 

(a) . Notwithstanding anything to the contrary herein, the
Collateral Agent acknowledges and agrees that no Grantor shall be
required to take or refrain from taking any action at the request
of the Collateral Agent with respect to the Collateral if such
action or inaction would be inconsistent with the terms of any
Permitted Intercreditor Agreement then in effect.

 

(a) Notwithstanding
anything to the contrary herein but subject to any Permitted
Intercreditor Agreement then in effect, in the event that any
Permitted Second Lien Indebtedness Document or any other credit
agreement, indenture or other agreement or instrument evidencing or
governing the rights of the holders of any Permitted Credit
Agreement Refinancing Indebtedness or any Permitted Incremental
Equivalent Indebtedness provides for the grant of a

 

 

 

 

 

 

 

(b) security interest
or pledge over the assets of any Grantor and such assets do not
otherwise constitute Collateral under this Agreement or any other
Credit Document, such Grantor shall (i) promptly grant a security
interest in or pledge such assets to secure the Secured
Obligations, (ii) promptly take any actions necessary to perfect
such security interest or pledge to the extent set forth in such
Permitted Second Lien Indebtedness Document or such other credit
agreement, indenture or other agreement or instrument evidencing or
governing the rights of the holders of any Permitted Credit
Agreement Refinancing Indebtedness or any Permitted Incremental
Equivalent Indebtedness and (iii) take all other steps reasonably
requested by the Collateral Agent in connection with the
foregoing.

 

(c) Nothing contained
in any Permitted Intercreditor Agreement shall be deemed to modify
any of the provisions of this Agreement, which, as among the
Grantors and the Collateral Agent, shall remain in full force and
effect in accordance with its terms.

 

SECTION .21. Super
Senior Intercreditor Agreement. 
Reference is made to the Super Senior Intercreditor Agreement dated
as of [___], 2019 (as amended, restated, supplemented or otherwise
modified from time to time, the “Super
Senior Intercreditor Agreement”),
among Wilmington Trust, National Association, as Super Senior
Representative (as defined therein), Wilmington Trust, National
Association, as First Lien Representative (as defined therein),
each Additional Super Senior Obligations Representative (as defined
therein) that may become a party thereto and each Additional First
Lien Obligations Representative (as defined therein) that may
become a party thereto. Notwithstanding anything herein to the
contrary, the lien and security interest granted to the Collateral
Agent, for the benefit of the Secured Parties, pursuant to this
Agreement and the exercise of any right or remedy by the Collateral
Agent and the other Secured Parties hereunder are subject to the
provisions of the Super Senior Intercreditor Agreement. In the
event of any conflict or inconsistency between the provisions of
the Super Senior Intercreditor Agreement and this Agreement, the
provisions of the Super Senior Intercreditor Agreement shall
control.

 

 

SECTION .22. SECTION
6.22. Regulatory Matters

 

(a) . Notwithstanding anything in any Credit Document to the
contrary, the Collateral Agent, on behalf of the Secured Parties,
agrees that to the extent prior FCC or State PUC approval is
required pursuant to Communications Laws for (i) the operation and
effectiveness of any right or remedy hereunder or under any other
Collateral Document or (ii) taking any action that may be taken by
the Collateral Agent hereunder or under the other Collateral
Documents, such right, remedy or actions will be subject to any
such prior FCC or State PUC, as applicable, approval having been
obtained by or in favor of the Collateral Agent, on behalf of the
Secured Parties. Notwithstanding anything herein to the contrary,
the Collateral Agent, on behalf of the Secured Parties,
acknowledges that, to the extent required by the FCC or any
applicable State PUC, the voting rights in the Pledged Securities,
as well as de jure, de facto and negative control over all FCC or
State PUC authorizations, shall remain with the Grantors even if an
Event of Default has occurred and is continuing until the FCC
and/or State PUC(s), as applicable, shall have given its prior
consent to the exercise of securityholder rights by a purchaser at
a public or private sale of the Pledged Securities or to the
exercise of such rights by a receiver, trustee, conservator or
other agent duly appointed in accordance with the applicable law.
The Grantors shall, upon the occurrence and during the continuance
of an Event of Default, at the Collateral Agent’s request,
file or cause to be filed such

 

 

 

 

 

 

 

applications
for approval and shall take such other actions reasonably required
by the Collateral Agent to obtain each such FCC or State PUC
approval or consent as is necessary to transfer ownership and
control to the Collateral Agent, on behalf of the Secured Parties,
or their successors, assigns or designees, of the Licenses held by
the Grantors. To enforce the provisions of this Section 6.22, the
Collateral Agent is empowered to request the appointment of a
receiver from any court of competent jurisdiction. Such receiver
shall be instructed to seek from the FCC and every applicable State
PUC an involuntary transfer of control of any such License for the
purpose of seeking a bona fide purchaser to whom control will
ultimately be transferred. Upon the occurrence and during the
continuance of an Event of Default, at the Collateral Agent’s
request, the Grantors shall further use their reasonable best
efforts to assist in obtaining approval of the FCC and/or
applicable State PUC(s), if required, for any action or
transactions contemplated hereby, including the preparation,
execution and filing with the FCC and/or applicable State PUC(s) of
the assignor’s or transferor’s portion of any
application for consent to the assignment of any License or
transfer of control, or notice of such assignment or transfer, as
applicable, necessary or appropriate under the FCC’s and/or
any applicable State PUC(s)’ rules and regulations for
approval of the transfer or assignment of any portion of the
Collateral, together with any License or other
authorization.

 

(a) The Grantors
acknowledge that the assignment or transfer of Licenses is integral
to the Secured Parties’ realization of the value of the
Collateral, that there is no adequate remedy at law for failure by
the Grantors to comply with the provisions of this Section 6.22 and
that such failure would not be adequately compensable in damages,
and therefore agree that this Section 6.22 may be specifically
enforced.

 

(b) Notwithstanding
anything in this Agreement or in any other Credit Document to the
contrary, neither the Collateral Agent nor any other Secured Party
shall, without first obtaining the approval of the FCC and/or any
applicable State PUC (where required), take any action hereunder or
under any other Collateral Document that would constitute or result
in any assignment of a License, change of material control or
ownership of any Grantor, or any assignment or transfer of the
material operating assets of any Grantor if such assignment, change
of material control or ownership or assignment or transfer of
material operating assets would require the approval of the FCC or
any such applicable State PUC under applicable law (including the
FCC’s and any such applicable State PUC’s rules and
regulations).

 

[Remainder
of page intentionally left blank]

 

 

 

 

EXECUTION VERSION

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed by their respective authorized officers as of the
day and year first above written.

 

	
 

	

FUSION
CONNECT, INC.,

FUSION
NBS ACQUISITION CORP.,

FUSION,
LLC,

FUSION
BCHI ACQUISITION LLC,

BIRCH COMMUNICATIONSFUSION
CLOUD SERVICES, LLC,

CBEYONDFUSION CB
HOLDINGS, INC.,

CBEYONDFUSION
COMMUNICATIONS, LLC,

BIRCHFUSION MANAGEMENT
SERVICES LLC

BIRCHFUSION
TELECOM ,
LLC,

BIRCHFUSION TEXAS
HOLDINGS, INC.,

BIRCHFUSION TELECOM OF
KANSAS, LLC,

BIRCHFUSION TELECOM OF
OKLAHOMA, LLC,

BIRCHFUSION TELECOM OF
MISSOURI, LLC,

BIRCHFUSION TELECOM OF
TEXAS LTD.,
L.L.P.,

BIRCAN
HOLDINGS, LLC

PRIMUSFUSION PM
HOLDINGS, INC.

FUSION CLOUD COMPANY LLC

FUSION MPHC GROUP, INC.

FUSION MPHC HOLDING CORP.,

[NEW SPECIFIED SUB], as Grantors

 

 

	

By:

	
 

	
 

	

Name:                       Kevin
Dotts

	
 

	

By:                                                   Name: Keith
SoldanTitle: Executive Vice
President, Chief Financial Officer and
Principal Accounting Officer

 

[Signature Page to Fusion First Lien Pledge and Security
Agreement]

 

 

 

[Signature
Page to Fusion First Lien Pledge and Security
Agreement]

 

 

 

	
 

	

WILMINGTON
TRUST, NATIONAL ASSOCIATION, as Collateral Agent 

 

	

By:

 

	

By:                                                   Name: Title: 

	
 

	

Name:

Title:

[Signature
Page to Fusion First Lien Pledge and Security
Agreement]

EXECUTION VERSION

SCHEDULE ITO
FIRST LIEN PLEDGE AND SECURITY AGREEMENT

PLEDGED EQUITY; PLEDGED DEBT

 

 

EQUITY
INTERESTS

 

 

	

Grantor

	

Issuer

	

Type ofOrganization

	

Number ofShares/UnitsOwned

	

TotalShares/UnitsOutstanding

	

Percentage ofInterestPledged

	

Certificate No. (if
uncertificated,
please indicate so)uncertificated,please
indicate so)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

DEBT INSTRUMENTS

 

	

Grantor

	

Debtor

	

Type of Instrument

	

Outstanding Principal Amount

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

SCHEDULE IITO
FIRST LIEN PLEDGE AND SECURITY AGREEMENT

 

COMMERCIAL TORT CLAIMS

 

 

 

 

SCHEDULE IIITO FIRST LIEN PLEDGE AND SECURITY
AGREEMENT

INTELLECTUAL PROPERTY

 

 

 

COPYRIGHTS OWNED BY GRANTORS

 

 

COPYRIGHT
REGISTRATIONS AND PENDING COPYRIGHT APPLICATIONS FOR

 

REGISTRATION

 

 

EXCLUSIVE
COPYRIGHT LICENSES (UNDER WHICH ANY GRANTOR IS A

 

LICENSEE)

 

 

 

PATENTS OWNED BY GRANTORS

 

 

	

Title

	

Country

	

Type

	

ApplicationNo./RegistrationNo.

	

ApplicationDate/RegistrationDate

	

Expiration Date

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

	

Title

	

Country

	

Type

	

ApplicationNo./RegistrationNo.

	

ApplicationDate/RegistrationDate

	

Date Filed

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

 

 

TRADEMARKS OWNED BY GRANTORS

 

 

	

Mark

	

Country

	

Registration No.

	

Registration Date

	

Next Renewal Date

	
 

	
 

	
 

	
 

	
 

 

 

EXHIBIT ITO FIRST LIEN PLEDGE AND SECURITY AGREEMENT

[FORM
OF] SUPPLEMENT NO. __, dated as of [ ] (this “Supplement”), to the First Lien
Pledge and Security Agreement dated as of May 4, 2018 (as it may be
amended, restated, supplemented or otherwise modified from time to
time, the “Pledge and
Security Agreement”), among Fusion Connect, Inc., a
Delaware corporation (the “Borrower”), the other Grantors
party thereto from time to time and Wilmington Trust, National
Association (“Wilmington
Trust”), as Collateral Agent for the Secured
Parties.

 

Reference is made
to the First Lien Credit and Guaranty Agreement, dated as of May 4,
2018 (as it may be amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among the
Borrower, certain Subsidiaries of the Borrower party thereto, the
Lenders party thereto and Wilmington Trust, as Administrative Agent
and Collateral Agent. Capitalized terms used in this Supplement and
not otherwise defined herein shall have the meanings assigned to
such terms in the Credit Agreement or the Pledge and Security
Agreement, as applicable.

 

The
Grantors have entered into the Pledge and Security Agreement in
order to induce the Lenders and the Issuing Banks to make Loans and
other extensions of credit. Section 6.16 of the Pledge and Security
Agreement provides that additional Restricted Subsidiaries of the
Borrower may become Grantors under the Pledge and Security
Agreement by execution and delivery of an instrument substantially
in the form of this Supplement. The undersigned Restricted
Subsidiary (the “New
Subsidiary”) is executing this Supplement in
accordance with the requirements of the Credit Agreement to become
a Grantor under the Pledge and Security Agreement in order to
induce the Lenders and the Issuing Banks to make additional Loans
and other extensions of credit and as consideration for permitting
to remain outstanding Loans and other extensions of credit
previously made.

 

Accordingly, the
Collateral Agent and the New Subsidiary agree as
follows:

 

SECTION
1. 
SECTION 1. In accordance with Section 6.16 of the Pledge and
Security Agreement, the New Subsidiary by its signature below
becomes a Grantor under the Pledge and Security Agreement with the
same force and effect as if originally named therein as a Grantor,
and the New Subsidiary hereby (a) agrees to all the terms and
provisions of the Pledge and Security Agreement applicable to it as
a Grantor thereunder and (b) represents and warrants that the
representations and warranties made by it as a Grantor thereunder
are true and correct on and as of the date hereof (or, to the
extent that such representations and warranties specifically refer
to an earlier date, as of such earlier date). In furtherance of the
foregoing, the New Subsidiary, as security for the payment and
performance in full of the Secured Obligations hereby assigns and
pledges to the Collateral Agent, its successors and permitted
assigns, for the benefit of the Secured Parties, and hereby grants
to the Collateral Agent, its successors and permitted assigns, for
the benefit of the Secured Parties, a security interest in, all of
the New Subsidiary’s right, title and interest in, to and
under the Collateral (as defined in the Pledge and Security
Agreement) of the New Subsidiary, whether now owned or at any time
hereafter acquired by the New Subsidiary or in which the New
Subsidiary now has or at any time in the future may acquire any
right, title or interest. Each reference to a “Grantor”
in the Pledge and Security Agreement shall be deemed to include the
New Subsidiary. The Pledge and Security Agreement is hereby
incorporated herein by reference.

 

SECTION
2. 
SECTION 2.
The New Subsidiary represents and warrants to the Collateral Agent
and the other Secured Parties that (a) the execution and delivery
of this Supplement by it have been duly authorized by all necessary
corporate or other organizational and, if required, stockholder or
other equityholder action on the part of the New Subsidiary and (b)
this Supplement has been duly executed and delivered by the New
Subsidiary and is the legally valid and binding obligation of the
New Subsidiary, enforceable against the New Subsidiary in
accordance with its terms, except as enforceability may be limited
by bankruptcy, insolvency, reorganization, moratorium or similar
laws relating to or limiting creditors’ rights generally or
by equitable principles relating to enforceability.

 

SECTION
3. 
SECTION 3.
This Supplement may be executed in any number of counterparts, each
of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but
one and the same instrument. Delivery of an executed counterpart of
a signature page of this Supplement by facsimile or in electronic
format (i.e., “pdf” or “tif”) shall be
effective as delivery of a manually executed counterpart of this
Supplement. This Supplement shall become effective when the
Collateral Agent shall have received a counterpart of this
Supplement that bears the signature of the New Subsidiary and the
Collateral Agent has executed a counterpart hereof.

 

SECTION
4. 
SECTION 4.
The New Subsidiary hereby represents and warrants that (a) Schedule
A hereto sets forth, as of the date hereof, the true and correct
legal name of the New Subsidiary, its jurisdiction of organization
and the location of its chief executive office, and whether the New
Subsidiary is a transmitting utility (as defined in the UCC) and,
if applicable, the location where its transmitting utility
equipment is held, (b) Schedule B hereto sets forth (and such
Schedule hereby supplements Schedule I set forth in the Pledge and
Security Agreement), as of the date hereof, a true and complete
list of (i) all the Pledged Equity of the New Subsidiary,
specifying the percentage of the issued and outstanding units of
each class of the Equity Interests of the issuer thereof
represented by such Pledged Equity, and (ii) all the Pledged Debt
of the New Subsidiary, specifying the issuer thereof and the
principal amount thereof as of the date hereof, and includes all
Equity Interests, Promissory Notes and Instruments owned by the New
Subsidiary required to be pledged hereunder in order to satisfy the
Collateral and Guarantee Requirement, (c) Schedule C hereto sets
forth, as of the date hereof, a true and complete list of (i) all
Copyrights that have been registered and Copyrights for which
registration applications are pending, (ii) all exclusive Copyright
Licenses under which the New Subsidiary is a licensee, (iii) all
Patents that have been granted and Patents for which applications
are pending and (iv) all Trademarks that have been registered and
Trademarks for which registration applications are pending and
that, in each case, are owned by the New Subsidiary, in each case
truly and completely specifying the name of the registered owner,
title, type or mark, registration or application number, expiration
date (if already registered) or filing date, a brief description
thereof and, if applicable, the licensee and licensor and (d)
Schedule D hereto sets forth, as of the date hereof, each
Commercial Tort Claim of the New Subsidiary as to which the claim
thereunder is $2,000,000 or more in existence on the date
hereof.

 

SECTION
5. 
SECTION 5.
Except as expressly supplemented hereby, the Pledge and Security
Agreement shall remain in full force and effect. This Supplement
constitutes a Credit Document for all purpose of the Credit
Agreement and the other Credit Documents.

 

SECTION
6. 
SECTION 6.
THIS SUPPLEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER (INCLUDING ANY CLAIMS SOUNDING
IN CONTRACT LAW OR TORT LAW ARISING OUT OF THE SUBJECT MATTER
HEREOF AND ANY DETERMINATIONS WITH RESPECT TO POST-JUDGMENT
INTEREST) SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD RESULT IN
THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW
YORK.

 

SECTION
7. 
SECTION 7.
In case any provision in or obligation hereunder or under any other
Credit Document shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the
remaining provisions or obligations, or of such provision or
obligation in any other jurisdiction, shall not in any way be
affected or impaired thereby.

 

SECTION
8. 
SECTION 8.
All communications and notices hereunder shall be in writing and
given as provided in Section 6.01 of the Pledge and Security
Agreement.

 

SECTION
9. 
SECTION 9.
The New Subsidiary agrees to reimburse the Collateral Agent for its
actual reasonable and documented out-of-pocket expenses in
connection with this Supplement, including all reasonable and
documented fees and expenses of counsel for the Collateral
Agent.

 

 

 

 

 

IN
WITNESS WHEREOF, the New Subsidiary and the Collateral Agent have
duly executed this Supplement to the Pledge and Security Agreement
as of the day and year first above written.

 

	
 

	

[NAME
OF NEW SUBSIDIARYNAME OF NEW
SUBSIDIARY],

 

	

by

	
 

	
 

	
 

	

NameBy:                                                   Name: Title:

 

	
 

	

Title: 

	
 

	

WILMINGTON
TRUST, NATIONAL ASSOCIATION, as Collateral Agent,

 

	

By:

 

	

By:                                                   Name: Title: 

 

	
 

	

Name:

Title:

 

EXHIBIT II

TO PLEDGE AND SECURITY AGREEMENT

ScheduleSCHEDULE
A

 

NEW SUBSIDIARY

 

	

Legal Name

	

Jurisdiction ofOrganization

	

Location of ChiefExecutive Office(including county)

	

Transmitting utility?If so, jurisdictionwhere transmittingutility
equipment is held

	
 

	
 

	
 

	
 

 

 

ScheduleSCHEDULE
B

 

PLEDGED EQUITY; PLEDGED DEBT

 

 

EQUITY
INTERESTS

 

	

Credit Party

	

Issuer

	

Type ofOrganization

	

Number ofShares/UnitsOwned

	

Total Shares/UnitsOutstanding

	

Percentage ofInterestPledged

	

Certificate No.(if uncertificated,please indicate so)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

DEBT INSTRUMENTS

 

	

Credit Party

	

Debtor

	

Type of Instrument

	

OutstandingPrincipal Amount

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

 

EXHIBIT II

TO PLEDGE AND SECURITY AGREEMENT

ScheduleSCHEDULE
C

 

INTELLECTUAL PROPERTY

 

I.            

Copyrights
and Copyright Applications

 

	

Property

	

Description

	

Registration Status

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

II.            

Exclusive
Copyright Licenses (where the New Subsidiary is a
licensee)

 

	

Licensee

	

Licensor

	

Title

	

RegistrationNumber

	

ExpirationDate

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

 

 

III.            

Patents

 

	

Title

	

Country

	

Type

	

RegistrationNumber

	

IssueDate

	

ExpirationDate

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

IV.            

Patent
Applications

 

	

Title

	

Country

	

Type

	

ApplicationNumber

	

DateFiled

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

 

 

 

V.            

Trademarks

 

	

Trademark

	

RegistrationNo./Application No.

	

ApplicationDate/Registration No.

	

Goods/Services

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

VI.            

Trademark
Applications

 

	

Trademark

	

Application No.

	

Filing Date

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

 

EXHIBIT II

TO FIRST LIEN PLEDGE AND SECURITY AGREEMENT

ScheduleSCHEDULE
D

 

COMMERCIAL TORT CLAIMS

 

 

 

 

EXHIBIT IITO FIRST LIEN PLEDGE AND SECURITY AGREEMENT

[FORM
OF] FIRST LIEN COPYRIGHT SECURITY
AGREEMENT, dated as of [__________], 20[__] (as it may be
amended, restated, supplemented or otherwise modified from time to
time, this “Agreement”), among the
ENTITIES IDENTIFIED AS GRANTORS ON
THE SIGNATURE PAGES HERETO (collectively, the
“Grantors”) and
WILMINGTON TRUST, NATIONAL
ASSOCIATION (“Wilmington Trust”), as Collateral
Agent for the Secured Parties.

 

WHEREAS, the Grantors are party to the
First Lien Pledge and Security Agreement, dated as of May 4, 2018
(the “Pledge and Security
Agreement”), among Fusion Connect, Inc., a Delaware
corporation, the other Grantors party thereto from time to time and
Wilmington Trust, as Collateral Agent, pursuant to which the
Grantors granted a security interest to the Collateral Agent in the
Copyright Collateral (as defined below) and are required to execute
and deliver this Agreement.

 

NOW, THEREFORE, in consideration of the
foregoing and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the
Grantors hereby agree with the Collateral Agent as
follows:

 

SECTION
1. 
SECTION 1. Defined
Terms. Unless otherwise defined herein, terms defined in the
Pledge and Security Agreement and used herein have the meaning
given to them in the Pledge and Security Agreement.

 

SECTION
2. 
SECTION 2. Grant of Security
Interest. As security for the payment and performance in
full of the Secured Obligations, each Grantor hereby assigns and
pledges to the Collateral Agent, its successors and permitted
assigns, for the benefit of the Secured Parties, and hereby grants
to the Collateral Agent, its successors and permitted assigns, for
the benefit of the Secured Parties, a continuing security interest
in, all of such Grantor’s right, title and interest in, to
and under any and all of the following assets now owned or at any
time hereafter acquired by such Grantor or in which such Grantor
now has or at any time in the future may acquire any right, title
or interest (collectively, the “Copyright
Collateral”):

 

(a)

(a)                      (i)
all copyright rights in any work subject to the copyright laws of
the United States or any other country, whether as author,
assignee, transferee or otherwise, whether registered or
unregistered and whether published or unpublished, (ii) all
registrations and applications for registration of any such
copyright in the United States or any other country, including
registrations, recordings, supplemental registrations, pending
applications for registration and renewals in the United States
Copyright Office, including those listed on Schedule A under the
heading “Copyright Registrations and Applications”,
(iii) all rights and privileges arising under applicable law with
respect to such Grantor’s use of such copyrights, (iv) all
reissues, renewals, continuations and extensions thereof and
amendments thereto, (v) all income, fees, royalties, damages,
claims and payments now or hereafter due and/or payable with
respect to the foregoing, including damages and payments for past,
present or future infringements thereof, (vi) all rights
corresponding thereto throughout the world and (vii) all rights to
sue for past, present or future infringements thereof;
and

 

(b)

(b)                      any
and all written agreement, now or hereafter in effect, granting any
right to any third party under any Copyright now or hereafter owned
by any Grantor or that such Grantor otherwise has the right to
license, or granting any right to any Grantor under any Copyright
now or hereafter owned by any third party, and all rights of such
Grantor under any such agreement, including each such agreement set
forth on Schedule A under the heading “Exclusive Copyright
Licenses”.

 

Notwithstanding
anything herein to the contrary, if, for so long and to the extent
as any such asset constitutes Excluded Property, the security
interest granted under this Section 2 shall not attach to, and the
Copyright Collateral shall not include, such asset; provided, however, that the security
interest granted under this Section 2 shall immediately attach to,
and the Copyright Collateral shall immediately include, any such
asset (or portion thereof) upon such asset (or such portion)
ceasing to be Excluded Property.

SECTION
3. 
SECTION 3. Security
Agreement. The security interest granted pursuant to this
Agreement is granted in conjunction with the security interest
granted to the Collateral Agent, for the benefit of the Secured
Parties, pursuant to the Pledge and Security Agreement, and the
Grantors hereby acknowledge and affirm that the rights and remedies
of the Collateral Agent with respect to the security interest in
the Copyright Collateral made and granted hereby are more fully set
forth in the Pledge and Security Agreement, the terms and
provisions of which are incorporated by reference herein as if
fully set forth herein. In the event that any provision of this
Agreement is deemed to conflict with the Pledge and Security
Agreement, the provisions of the Pledge and Security Agreement
shall control.

 

SECTION
4. 
SECTION 4. GOVERNING
LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER (INCLUDING ANY CLAIMS SOUNDING IN CONTRACT LAW OR
TORT LAW ARISING OUT OF THE SUBJECT MATTER HEREOF AND ANY
DETERMINATIONS WITH RESPECT TO POST-JUDGMENT INTEREST) SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS
OF LAWS PRINCIPLES THEREOF THAT WOULD RESULT IN THE APPLICATION OF
ANY OTHER LAW OTHER THAN THE LAW OF THE STATE OF NEW
YORK.

 

SECTION
5. 
SECTION 5. Counterparts. This Agreement may be
executed in one or more counterparts and by different parties
hereto in separate counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts
together shall constitute but one and the same
instrument.

 

[Remainder
of page intentionally left blank]

 

 

 

EXHIBIT II

TO FIRST LIEN PLEDGE AND SECURITY AGREEMENT

IN
WITNESS WHEREOF, each Grantor has caused this Agreement to be
executed and delivered by its duly authorized officer as of the
date first set forth above.

 

	
 

	

[NAME
OF GRANTOR]

 

	

By:

 

	

By:                                                   Name: Title: 

 

	

Name:

	
 

	

Title:

	
 

 

[ADD
SIGNATURE BLOCKS FOR ANY OTHER GRANTORS]

 

[Signature Page to First Lien Copyright Security
Agreement

 

Accepted and Agreed:

 

 

	
 

	

Accepted and Agreed:

 

	
 

	

WILMINGTON
TRUST, NATIONAL ASSOCIATION, as Collateral Agent,

 

	

by

	
 

	
 

	
 

	

By:                                                   Name: Title:

 

	
 

	
 

 

[Signature Page to First Lien Copyright Security
Agreement

 

 

SCHEDULE A

 

to

 

FIRST
LIEN COPYRIGHT SECURITY AGREEMENT

 

COPYRIGHT REGISTRATIONS AND APPLICATIONS

 

	

Registered Owner

	

Property

	

Description

	

Registration Status

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

EXCLUSIVE COPYRIGHT LICENSES (WHERE A GRANTOR IS A
LICENSEE)

 

	

Licensee

	

Licensor

	

Title

	

RegistrationNumber

	

ExpirationDate

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

EXHIBIT IIITO FIRST LIEN PLEDGE AND SECURITY AGREEMENT

FIRST LIEN PATENT SECURITY AGREEMENT,
dated as of [__________], 20[__] (as it may be amended, restated,
supplemented or otherwise modified from time to time, this
“Agreement”), is
made among THE ENTITIES IDENTIFIED
AS GRANTORS ON THE SIGNATURE PAGES HERETO (collectively, the
“Grantors”) and
WILMINGTON TRUST, NATIONAL ASSOCIATION (“Wilmington Trust”), as Collateral
Agent for the Secured Parties.

 

WHEREAS, the Grantors are party to the
First Lien Pledge and Security Agreement, dated as of May 4, 2018
(the “Pledge and Security
Agreement”), among Fusion Connect, Inc., a Delaware
corporation, the other Grantors party thereto from time to time and
Wilmington Trust, as Collateral Agent, pursuant to which the
Grantors granted a security interest to the Collateral Agent in the
Patent Collateral (as defined below) and are required to execute
and deliver this Agreement.

 

NOW, THEREFORE, in consideration of the
foregoing and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the
Grantors hereby agree with the Collateral Agent as
follows:

 

SECTION
1. 
SECTION 1. Defined
Terms. Unless otherwise defined herein, terms defined in the
Pledge and Security Agreement and used herein have the meaning
given to them in the Pledge and Security Agreement.

 

SECTION
2. 
SECTION 2. Grant of Security
Interest. As security for the payment and performance in
full of the Secured Obligations, each Grantor hereby assigns and
pledges to the Collateral Agent, its successors and permitted
assigns, for the benefit of the Secured Parties, and hereby grants
to the Collateral Agent, its successors and permitted assigns, for
the benefit of the Secured Parties, a continuing security interest
in, all of such Grantor’s right, title and interest in, to
and under any and all of the following assets now owned or at any
time hereafter acquired by such Grantor or in which such Grantor
now has or at any time in the future may acquire any right, title
or interest (collectively, the “Patent Collateral”): (a) all
letters patent of the United States or the equivalent thereof in
any other country, all registrations and recordings thereof, and
all applications for letters patent of the United States or the
equivalent thereof in any other country, including registrations,
recordings and pending applications in the United States Patent and
Trademark Office or any similar offices in any other country,
including those listed on Schedule A under the heading
“Patents and Patent Applications”, (b) all rights and
privileges arising under applicable law with respect to such
Grantor’s use of any patents, (c) all inventions and
improvements described and claimed therein, (d) all reissues,
divisions, continuations, renewals, extensions, reexaminations,
supplemental examinations, inter partes reviews, adjustments and
continuations-in-part thereof and amendments thereto, (e) all
income, fees, royalties, damages, claims and payments now or
hereafter due and/or payable with respect to any of the foregoing
including damages and payments for past, present or future
infringements thereof, (f) all rights corresponding thereto
throughout the world, including the right to prevent others from
making, having made, using, selling, offering to sell, importing or
exporting the inventions claimed therein and (g) rights to sue for
past, present or future infringements thereof.

 

Notwithstanding
anything herein to the contrary, if, for so long and to the extent
as any such asset constitutes Excluded Property, the security
interest granted under this Section 2 shall not attach to, and the
Patent Collateral shall not include, such asset, provided, however,
that the security interest granted under this Section 2 shall
immediately attach to, and the Patent Collateral shall immediately
include, any such asset (or portion thereof) upon such asset (or
such portion) ceasing to be Excluded Property.

SECTION
3. 
SECTION 3. Security
Agreement. The security interest granted pursuant to this
Agreement is granted in conjunction with the security interest
granted to the Collateral Agent, for the benefit of the Secured
Parties, pursuant to the Pledge and Security Agreement, and the
Grantors hereby acknowledge and affirm that the rights and remedies
of the Collateral Agent with respect to the security interest in
the Patent Collateral made and granted hereby are more fully set
forth in the Pledge and Security Agreement, the terms and
provisions of which are incorporated by reference herein as if
fully set forth herein. In the event that any provision of this
Agreement is deemed to conflict with the Pledge and Security
Agreement, the provisions of the Pledge and Security Agreement
shall control.

 

SECTION
4. 
SECTION 4. GOVERNING
LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER (INCLUDING ANY CLAIMS SOUNDING IN CONTRACT LAW OR
TORT LAW ARISING OUT OF THE SUBJECT MATTER HEREOF AND ANY
DETERMINATIONS WITH RESPECT TO POST-JUDGMENT INTEREST) SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS
OF LAWS PRINCIPLES THEREOF THAT WOULD RESULT IN THE APPLICATION OF
ANY OTHER LAW OTHER THAN THE LAW OF THE STATE OF NEW
YORK.

 

SECTION
5. 
SECTION 5. Counterparts. This Agreement may be
executed in one or more counterparts and by different parties
hereto in separate counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts
together shall constitute but one and the same
instrument.

 

[Remainder
of page intentionally left blank]

 

 

EXHIBIT III

TO PLEDGE AND SECURITY AGREEMENT

IN
WITNESS WHEREOF, each Grantor has caused this Agreement to be
executed and delivered by its duly authorized officer as of the
date first set forth above.

 

	
 

	

[NAME
OF GRANTOR]

 

	

By:

 

	

By:                                                   Name: Title: 

 

	

Name:

	
 

	

Title:

	
 

 

[ADD
SIGNATURE BLOCKS FOR ANY OTHER GRANTORS]

 

Exhibit III to Pledge and[Signature
Page to First Lien Patent Security Agreement

 

 

Accepted and Agreed:

 

 

	
 

	

Accepted and Agreed:

 

	
 

	

WILMINGTON
TRUST, NATIONAL ASSOCIATION, as Collateral Agent,

 

	

by

	
 

	
 

	
 

	

By:                                                   Name: Title:

 

	
 

	
 

 

[Signature Page to First Lien Patent Security
Agreement

 

 

EXHIBIT III

TO PLEDGE AND SECURITY AGREEMENT

SCHEDULE A

 

to

 

FIRST
LIEN PATENT SECURITY AGREEMENT

 

Patent and Patent Applications

 

 PATENTS

 

	

RegisteredOwner

	

Title ofPatent

	

Country

	

Type

	

Registration Number

	

IssueDate

	

ExpirationDate

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

PATENT APPLICATIONS

 

	

RegisteredOwner

	

Title ofPatent

	

Country

	

Type

	

ApplicationNumber

	

DateFiled

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

Exhibit III to Pledge and Security Agreement

 

EXHIBIT IVTO FIRST LIEN PLEDGE AND SECURITY AGREEMENT

FIRST LIEN TRADEMARK SECURITY AGREEMENT,
dated as of [__________], 20[__] (as it may be amended, restated,
supplemented or otherwise modified from time to time, this
“Agreement”), is
made among THE ENTITIES IDENTIFIED
AS GRANTORS ON THE SIGNATURE PAGES HERETO (collectively, the
“Grantors”) and
WILMINGTON TRUST, NATIONAL
ASSOCIATION (“Wilmington Trust”), as Collateral
Agent for the Secured Parties.

 

WHEREAS, the Grantors are party to the
First Lien Pledge and Security Agreement, dated as of May 4, 2018
(the “Pledge and Security
Agreement”), among Fusion Connect, Inc., a Delaware
corporation, the other Grantors party thereto from time to time and
Wilmington Trust, as Collateral Agent, pursuant to which the
Grantors granted a security interest to the Collateral Agent in the
Trademark Collateral (as defined below) and are required to execute
and deliver this Agreement.

 

NOW, THEREFORE, in consideration of the
foregoing and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the
Grantors hereby agree with the Collateral Agent as
follows:

 

SECTION
1. 
SECTION 1. Defined
Terms. Unless otherwise defined herein, terms defined in the
Pledge and Security Agreement and used herein have the meaning
given to them in the Pledge and Security Agreement.

 

SECTION
2. 
SECTION 2. Grant of
Security. As security for the payment and performance in
full of the Secured Obligations, each Grantor hereby assigns and
pledges to the Collateral Agent, its successors and permitted
assigns, for the benefit of the Secured Parties, and hereby grants
to the Collateral Agent, its successors and permitted assigns, for
the benefit of the Secured Parties, a continuing security interest
in, all of such Grantor’s right, title and interest in, to
and under any and all of the following assets now owned or at any
time hereafter acquired by such Grantor or in which such Grantor
now has or at any time in the future may acquire any right, title
or interest (collectively, the “Trademark Collateral”): (a) all
trademarks, service marks, trade names, corporate names, company
names, business names, fictitious business names, trade styles,
trade dress, logos, other source or business identifiers, designs
and general intangibles of like nature, the goodwill of the
business symbolized thereby or associated therewith, all
registrations and recordings thereof, and all registration and
recording applications filed in connection therewith, including
registrations and registration applications in the United States
Patent and Trademark Office or any similar offices in any State of
the United States or any other country or any political subdivision
thereof, and all extensions or renewals thereof, including those
listed on Schedule A under the heading “Trademark
Registrations and Applications”, (b) all rights and
privileges arising under applicable law with respect to such
Grantor’s use of any trademarks, (c) all reissues,
continuations, extensions and renewals thereof and amendments
thereto, (d) all income, fees, royalties, damages and payments now
and hereafter due and/or payable with respect to any of the
foregoing, including damages, claims and payments for past, present
or future infringements thereof, (e) all rights corresponding
thereto throughout the world and (f) rights to sue for past,
present and future infringements or dilutions thereof or other
injuries thereto.

 

Notwithstanding
anything herein to the contrary, (a) in no event shall the
Trademark Collateral include or the security interest granted under
this Section 2 attach to any “intent to use”
application for registration of a Trademark filed pursuant to
Section 1(b) of the Lanham Act, 15 U.S.C. § 1051, prior to
filing of a “Statement of Use” pursuant to Section 1(d)
of the Lanham Act or an “Amendment to Allege Use”
pursuant to Section 1(c) of the Lanham Act with respect thereto,
solely to the extent, if any, that, and solely during the period,
if any, in which, the grant of a security interest therein would
impair the validity or enforceability of any registration that
issues from such intent to use application under applicable federal
law and (b) if, for so long and to the extent as any such asset
constitutes Excluded Property, the security interest granted under
this Section 2 shall not attach to, and the Trademark Collateral
shall not include, such asset, provided, however, that the security
interest granted under this Section 2 shall immediately attach to,
and the Trademark Collateral shall immediately include, any such
asset (or portion thereof) upon such asset (or such portion)
ceasing to be Excluded Property.

SECTION
3. 
SECTION 3. Security
Agreement. The security interest granted pursuant to this
Agreement is granted in conjunction with the security interest
granted to the Collateral Agent, for the benefit of the Secured
Parties, pursuant to the Pledge and Security Agreement, and the
Grantors hereby acknowledge and affirm that the rights and remedies
of the Collateral Agent with respect to the security interest in
the Trademark Collateral made and granted hereby are more fully set
forth in the Pledge and Security Agreement, the terms and
provisions of which are incorporated by reference herein as if
fully set forth herein. In the event that any provision of this
Agreement is deemed to conflict with the Pledge and Security
Agreement, the provisions of the Pledge and Security Agreement
shall control.

 

SECTION
4. 
SECTION 4. GOVERNING
LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER (INCLUDING ANY CLAIMS SOUNDING IN CONTRACT LAW OR
TORT LAW ARISING OUT OF THE SUBJECT MATTER HEREOF AND ANY
DETERMINATIONS WITH RESPECT TO POST-JUDGMENT INTEREST) SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS
OF LAWS PRINCIPLES THEREOF THAT WOULD RESULT IN THE APPLICATION OF
ANY OTHER LAW OTHER THAN THE LAW OF THE STATE OF NEW
YORK.

 

SECTION
5. 
SECTION 5. Counterparts. This Agreement may be
executed in one or more counterparts and by different parties
hereto in separate counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts
together shall constitute but one and the same
instrument.

 

Exhibit IV-1

EXHIBIT IV

TO FIRST LIEN PLEDGE AND SECURITY AGREEMENT

 

IN
WITNESS WHEREOF, each Grantor has caused this Agreement to be
executed and delivered by its duly authorized officer as of the
date first set forth above.

 

	
 

	

[NAME
OF GRANTOR]

 

	

By:

 

	

By:                                                   Name: Title: 

 

	

Name:

	
 

	

Title:

	
 

 

[ADD
SIGNATURE BLOCKS FOR ANY OTHER GRANTORS]

 

 

Exhibit IV-2

[Signature Page to First Lien Trademark Security
Agreement

 

Accepted and Agreed:

 

	
 

	

Accepted and Agreed:

 

	
 

	

WILMINGTON
TRUST, NATIONAL ASSOCIATION, as Collateral Agent,

 

	

by

	
 

	
 

	
 

	

By:                                                   Name: Title:

 

	
 

	
 

 

 

[Signature
Page to First Lien Trademark Security Agreement]

 

 

SCHEDULE A

 

to

 

FIRST
LIEN TRADEMARK SECURITY AGREEMENT

 

Trademark Registrations and Applications

 

 TRADEMARKS

 

	

Registered Owner

	

Trademark

	

RegistrationNo./Application No.

	

ApplicationDate/Registration Date

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

TRADEMARK APPLICATIONS

 

	

Registered Owner

	

Trademark

	

Application No.

	

Filing Date

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

 

 

Schedule A-1Blueprint

 

Exhibit
10.3

 

 

 

This
AMENDMENT No. 3 (this “Amendment”), dated as of May 9,
2019, by and among Fusion Connect, Inc., a Delaware corporation
(the “Borrower”), the other Credit
Parties, the Canadian Subsidiaries and the Forbearing
Lenders.

 

RECITALS

 

WHEREAS, reference is made to that
certain Forbearance Agreement, dated as of April 15, 2019 (the
“Agreement” and,
as amended by this Amendment and those certain extensions dated as
of April 29, 2019 and May 6, 2019, the “Amended Agreement”), among the Borrower, the other Credit
Parties, the Canadian Subsidiaries and the Forbearing
Lenders;

 

WHEREAS, the Borrower wishes to incur a new term loan
facility in an aggregate principal amount of up to $20,000,000
pursuant to the Super Senior Credit Agreement;
and

 

WHEREAS, the Borrower has requested that
the Forbearing Lenders constituting the Requisite Lenders and the
Requisite Tranche A/Revolving Lenders amend the Agreement as set
forth herein in connection with the foregoing.

 

NOW, THEREFORE, in consideration of the
premises contained herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound
hereby, agree as follows:

 

Section
1. Definitions.
Each capitalized term used and not otherwise defined in this
Amendment shall have the meaning assigned to such term in the
Amended Agreement.

 

Section
2. Amendments to
Agreement. With effect as of the Amendment Effective Date
(as defined below), the Agreement is hereby amended to delete the
stricken text (indicated textually in the same manner as the
following example: stricken
text) and to add the double-underlined text (indicated
textually in the same manner as the following example: 
underlined text) as set forth in the marked blacklined copy
of the Amended Agreement attached as Annex I hereto (which shall be
the Amended Agreement). Said Annex I has been blacklined to
show all changes from the Agreement as in effect immediately prior
to the date hereof, it being agreed that, by virtue of this
Amendment upon the effectiveness hereof, any amendments or other
modifications to the Agreement prior to the date hereof that are
not reflected in said Annex I shall cease to be in
effect or, as the case may be, shall be modified as set forth in
said Annex I, and
Annex I shall for
all purposes be deemed to constitute the Amended
Agreement.

 

Section
3. Representations and
Warranties.

 

(a)           The
execution, delivery and performance of this Amendment by each of
the Credit Parties has been duly authorized by all necessary
corporate or other organizational action, and do not (i) contravene
the terms of the organizational documents of such Credit Party;
(ii) conflict with or result in any breach or contravention of, or
require any payment to be made under (x) any material contractual
obligation to which such Credit Party is a party or affecting such
Credit Party or its properties or (y) any order, injunction, writ
or decree of any Governmental Authority or any arbitral award to
which such Credit Party or its property is subject; (iii) violate
any law to which such Credit Party or its property is subject; or
(iv) result in the creation of any Lien on any property of such
Credit Party;

 

 

 

 

(b)           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, or enforcement against, such Credit
Party of this Amendment, other than those obtained prior to the
Amendment Effective Date or being obtained in connection
herewith;

 

(c)           no
Default or Event of Default has occurred and is continuing other
than the Collective Defaults;

 

(d)        
other than in respect of the Collective Defaults, each of the
representations and warranties made by such Credit Party in the
Credit Agreement and the other Credit Documents are true and
correct in all material respects with the same effect as though
such representations and warranties were made on the date hereof
(except where such representations and warranties expressly relate
to an earlier date, in which case such representations and
warranties shall be true and correct in all material respects as of
such earlier dates); and

 

(e)           as
of the date hereof, no Third Party Forbearance Agreement exists
between any Credit Party and any Lender, whether individually or as
a group, which is not otherwise reflected or referred to in this
Amendment.

 

Section
4. Effectiveness.
This Amendment shall become effective on the date (such date, the
“Amendment Effective
Date”):

 

(a) 

of execution of
this Amendment by the Forbearing Lenders constituting the Requisite
Lenders and the Requisite Tranche A/Revolving Lenders under the
Credit Agreement, the Credit Parties and the Canadian
Subsidiaries;

 

(b) 

of receipt by the
Forbearing Lenders of the Super Senior Budget under and as defined
in the Super Senior Credit Agreement; and

 

(c) 

the Borrower shall
have paid to the Administrative Agent and Lenders all fees and
expenses (including legal fees and expenses) which have been
invoiced on or prior to the Amendment Effective Date.

 

Section
5. Entire
Agreement. This Amendment, the Amended Agreement, the Credit
Agreement and the other Credit Documents constitute the entire
agreement of the Parties with respect to the subject matter hereof,
and supersede all other prior negotiations, understandings or
agreements with respect to the subject matter hereof. This
Amendment shall be deemed a Credit Document.

 

Section
6. Governing Law;
Jurisdiction; Waiver of Jury Trial.

 

(a)           THIS
AMENDMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR
RELATED TO THIS AMENDMENT, WHETHER IN TORT, CONTRACT (AT LAW OR IN
EQUITY) OR OTHERWISE, SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT

 

 

2

 

 

 
            
WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF
THE STATE OF NEW YORK.

 

(b)           EACH
PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF
AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF ANY U.S. FEDERAL
OR NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN, IN THE
CITY OF NEW YORK (OR ANY APPELLATE COURT THEREFROM) OVER ANY SUIT,
IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AMENDMENT AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION
OR PROCEEDING SHALL BE HEARD AND DETERMINED IN SUCH NEW YORK STATE
OR, TO THE EXTENT PERMITTED BY LAW, FEDERAL COURT. THE PARTIES
HERETO AGREE THAT SERVICE OF ANY PROCESS, SUMMONS, NOTICE OR
DOCUMENT BY REGISTERED MAIL ADDRESSED TO SUCH PERSON SHALL BE
EFFECTIVE SERVICE OF PROCESS AGAINST SUCH PERSON FOR ANY SUIT,
ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT. EACH PARTY AGREES
THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY
OTHER MANNER PROVIDED BY LAW.

 

(c)           EACH
PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
SUIT, ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY) DIRECTLY OR INDIRECTLY ARISING
OUT OF OR RELATING TO THIS AMENDMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY. EACH PARTY (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AMENDMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

 

Section
7. Severability.
The invalidity, illegality or unenforceability of any provision in
or obligation under this Amendment in any jurisdiction shall not
affect or impair the validity, legality or enforceability of the
remaining provisions or obligations under this Amendment or of such
provision or obligation in any other jurisdiction.

 

Section
8. Counterparts.
This Amendment may be executed in one or more counterparts, each of
which shall be deemed an original, and all of which taken together
shall constitute one and the same instrument. Delivery of an
executed counterpart of a signature page to this Amendment by
electronic mail (e.g. “.pdf” or “.tif”)
shall be effective as delivery of an original executed counterpart
of this Amendment.

 

Section
9. Headings.
The section and subsection titles contained in this Amendment are
included for convenience only, shall be without substantive meaning
or content of any kind whatsoever, and are not a part of the
agreement between the Credit Parties and the Canadian Subsidiaries,
on the one hand, and the Forbearing Lenders, on the other hand. Any
reference in

 

 

 

3

 

 

this
Amendment to any “Section” refers, unless the context
otherwise indicates, to a section of this Amendment.

 

Section
10. Effect of
Amendment. Except as expressly set forth herein, (i) this
Amendment shall not by implication or otherwise limit, impair,
constitute a waiver of or otherwise affect the rights and remedies
of the Lenders or the Administrative Agent, in each case under the
Agreement or any other Credit Document, and (ii) shall not alter,
modify, amend or in any way affect any of the terms, conditions,
obligations, covenants or agreements contained in the Agreement or
any other Credit Document. Except as expressly set forth herein,
each and every term, condition, obligation, covenant and agreement
contained in the Agreement or any other Credit Document is hereby
ratified and re-affirmed in all respects and shall continue in full
force and effect. The execution, delivery and effectiveness of this
Amendment shall not, except as expressly provided herein or as
provided in the exhibits hereto, operate as a waiver of any right,
power or remedy of any Lender or the Administrative Agent under any
of the Credit Documents, or constitute a waiver of any provision of
any of the Credit Documents. Nothing herein contained shall be
construed as a substitution or novation of the obligations
outstanding under the Agreement, which shall remain in full force
and effect, except to any extent modified hereby. Nothing implied
in this Amendment or in any other document contemplated hereby
shall be construed as a release or other discharge of any of the
Credit Parties from the Credit Documents. From and after the
Amendment Effective Date, all references to the Agreement or in any
Credit Document and all references in the Agreement to “THIS
AMENDMENT,” “hereunder,” “hereof” or
words of like import referring to the Agreement shall, unless
expressly provided otherwise, be deemed to refer to the Amended
Agreement. Each of the Credit Parties hereby consents to this
Amendment and confirms that all obligations of such Credit Party
under the Credit Documents to which such Credit Party is a party
shall continue to apply to the Agreement as amended
hereby.

 

 

4

EXECUTION VERSION

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to
be duly executed by their respective authorized officers as of the
day and year first above written.

 

	
 

	

FUSION CONNECT, INC.,

as
Borrower

	
 

	
 

	
 

	
 

	
 

	

By: 
/s/ James P. Prenetta,
Jr.                      

	
 

	
 

	

Name:
James P. Prenetta, Jr.

	
 

	
 

	

Title:
Executive Vice President and General Counsel

	
 

	
 

	
 

	
 

	
 

	

FUSION NBS ACQUISITION CORP.

FUSION LLC

FUSION BCHI ACQUISITION LLC

FUSION CB HOLDINGS, INC.

FUSION CLOUD SERVICES LLC

FUSION COMMUNICATIONS, LLC

FUSION MANAGEMENT SERVICES LLC

FUSION TELECOM, LLC

FUSION TEXAS HOLDINGS, INC.

FUSION TELECOM OF KANSAS, LLC

FUSION TELECOM OF OKLAHOMA, LLC

FUSION TELECOM OF MISSOURI, LLC

BIRCAN HOLDINGS, LLC

FUSION PM HOLDINGS, INC.

FUSION MPHC HOLDING CORP.

FUSION CLOUD COMPANY LLC

FUSION MPHC GROUP, INC.,

as
Guarantor Subsidiaries

	
 

	
 

	
 

	
 

	
 

	

By: 
/s/ James P. Prenetta,
Jr.                       

	
 

	
 

	

Name:
James P. Prenetta, Jr.

	
 

	
 

	

Title:
Executive Vice President and General Counsel

 

 

PRIMUS MANAGEMENT ULC

BIRCAN MANAGEMENT ULC,

as the
Canadian Subsidiaries

 

	
 

	
 

	

By: 
/s/ James P. Prenetta,
Jr.                         

	
 

	
 

	

Name:
James P. Prenetta, Jr.

Title:
Executive Vice President and General Counsel

	
 

 

 

 

5

 

 

 

6

 

 

 

EAST
WEST BANK, 

as a
Forbearing Lender

 

 

By /s/ Ernest Oon

Name:  
Ernest Oon 

Title: Senior Vice
President

 

 

 

7

 

 

GOLDMAN SACHS LENDING PARTNERS LLC, as a
Forbearing Lender

 

 

By
/s/ Jamie
Minieri

Name: Jamie
Minieri 

Title: Authorized
Signatory

 

 

 

 

 

 

 

8

 

 

 

MORGAN STANLEY SENIOR FUNDING, INC., as
a Forbearing Lender

 

 

By
/s/ Roberto
Ellinghaus

Name:  
Roberto Ellinghaus

Title:
Vice President

  

 

 

 

9

 

 

 

MUFG UNION BANK, N.A., as a Forbearing
Lender

 

 

By
/s/ John
Lilly

Name:  John
Lilly

Title:
Director

  

 

 

 

 

 

10

 

 

 

 

 

 

 

 

11

 

 

 

	
 

	

HALCYON LOAN ADVISORS FUNDING 2014-3
LTD.

 

, as
Fornearing Lenders

 

Halcyon Loan
Advisors Funding 2015-1, Ltd.

 

Halcyon Loan
Advisors Funding 2015-2, Ltd.

 

Halcyon Loan
Advisors Funding 2015-3, Ltd.

 

Halcyon Loan
Advisors Funding 2017-1, Ltd. 

 

Halcyon Loan
Advisors Funding 2017-2, Ltd. 

 

Halcyon Loan
Advisors Funding 2018-1, Ltd. 

 

Halcyon Loan
Advisors Funding 2018-2,
Ltd. 

 

 

	
 

	

By:

	
 

	

/s/
David Martino

	
 

	

Name:

	
 

	

David
Martino

	
 

	

Title:

	
 

	

Controller

 

 

12

 

 

	
 

	

OCP CLO 2013-4, Ltd., as Forbearing Lender

 

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	
 

	

By:

	
 

	

/s/
Paul Travers

	
 

	

Name:

	
 

	

Paul
Travers

	
 

	

Title:

	
 

	

Portfolio
Manager

 

 

 

13

 

 

 

	
 

	

OCP CLO 2014-5, Ltd., as Forbearing Lender

 

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	
 

	

By:

	
 

	

/s/
Paul Travers

	
 

	

Name:

	
 

	

Paul
Travers

	
 

	

Title:

	
 

	

Portfolio
Manager

 

 

 

 

 

14

 

 

 

	
 

	

OCP CLO 2014-6, Ltd., as Forbearing
Lender

 

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	
 

	

By:

	
 

	

/s/
Paul Travers

	
 

	

Name:

	
 

	

Paul
Travers

	
 

	

Title:

	
 

	

Portfolio
Manager

 

 

 

15

 

 

 

	
 

	

OCP CLO 2015-10, Ltd., as Forbearing
Lender

 

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	
 

	

By:

	
 

	

/s/
Paul Travers

	
 

	

Name:

	
 

	

Paul
Travers

	
 

	

Title:

	
 

	

Portfolio
Manager

 

 

 

16

 

 

 

	
 

	

OCP CLO 2015-8, Ltd., as Forbearing
Lender

 

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	
 

	

By:

	
 

	

/s/
Paul Travers

	
 

	

Name:

	
 

	

Paul
Travers

	
 

	

Title:

	
 

	

Portfolio
Manager

 

 

 

17

 

 

 

	
 

	

OCP CLO 2015-19, Ltd., as Forbearing
Lender

 

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	
 

	

By:

	
 

	

/s/
Paul Travers

	
 

	

Name:

	
 

	

Paul
Travers

	
 

	

Title:

	
 

	

Portfolio
Manager

 

 

 

18

 

 

 

	
 

	

OCP CLO 2016-11, Ltd., as Forbearing
Lender

 

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	
 

	

By:

	
 

	

/s/
Paul Travers

	
 

	

Name:

	
 

	

Paul
Travers

	
 

	

Title:

	
 

	

Portfolio
Manager

 

 

 

19

 

 

 

	
 

	

OCP CLO 2016-12, Ltd., as Forbearing
Lender

 

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	
 

	

By:

	
 

	

/s/
Paul Travers

	
 

	

Name:

	
 

	

Paul
Travers

	
 

	

Title:

	
 

	

Portfolio
Manager

 

 

 

20

 

 

 

	
 

	

OCP CLO 2017-13, Ltd., as Forbearing
Lender

 

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	
 

	

By:

	
 

	

/s/
Paul Travers

	
 

	

Name:

	
 

	

Paul
Travers

	
 

	

Title:

	
 

	

Portfolio
Manager

 

 

 

21

 

 

 

	
 

	

OCP CLO 2017-14, Ltd., as Forbearing
Lender

 

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	
 

	

By:

	

/s/
Paul Travers

	
 

	

Name:

	

Paul
Travers

	
 

	

Title:

	

Portfolio
Manager

 

 

 

22

 

 

	
 

	

OCP CLO 2018-15, Ltd., as Forbearing
Lender

 

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	
 

	

By:

	
 

	

/s/
Paul Travers

	
 

	

Name:

	
 

	

Paul
Travers

	
 

	

Title:

	
 

	

Portfolio
Manager

 

 

 

23

 

 

	
 

	

OCP Credit Strategy Fund, as Forbearing
Lender

 

By:
Onex Credit Partners, LLC, its manager

 

	
 

	

By:

	
 

	

/s/
Paul Travers

	
 

	

Name:

	
 

	

Paul
Travers

	
 

	

Title:

	
 

	

Portfolio
Manager

 

 

 

 

24

 

 

 

	
 

	

ONEX CLP FUNDING L.P., as Forbearing
Lender

 

By:
Onex Credit Partners, LLC, as Portfolio Manager

 

	
 

	

By:

	
 

	

/s/
Paul Travers

	
 

	

Name:

	
 

	

Paul
Travers

	
 

	

Title:

	
 

	

Portfolio
Manager

 

 

 

25

 

 

 

	
 

	

Onex Debt Opportunity Fund, LP, as Forbearing
Lender

 

By:
Onex Credit Partners, LLC, its investment manager

 

	
 

	

By:

	
 

	

/s/
Paul Travers

	
 

	

Name:

	
 

	

Paul
Travers

	
 

	

Title:

	
 

	

Portfolio
Manager

 

 

 

26

 

 

 

	
 

	

Onex Debt Opportunity Fund, Ltd. as Forbearing
Lender

 

By:
Onex Credit Partners, LLC, its investment manager

 

	
 

	

By:

	
 

	

/s/
Paul Travers

	
 

	

Name:

	
 

	

Paul
Travers

	
 

	

Title:

	
 

	

Portfolio
Manager

 

 

 

27

 

 

 

	
 

	

Onex Senior Credit II, LP, as Forbearing
Lender

 

By:
Onex Credit Partners, LLC, its investment manager

 

	
 

	

By:

	
 

	

/s/
Paul Travers

	
 

	

Name:

	
 

	

Paul
Travers

	
 

	

Title:

	
 

	

Portfolio
Manager

 

 

 

28

 

 

 

	
 

	

VC4 Debt Investment (US), LLC, as Forbearing
Lender

 

	
 

	

By:

	
 

	

/s/
David Baylor

	
 

	

Name:

	
 

	

David Baylor

	
 

	

Title:

	
 

	

COO

 

 

29

 

 

	
 

	

VC5 Debt Investment (Cayman), LTD, as Forbearing
Lender

 

	
 

	

By:

	
 

	

/s/
David
Baylor

	
 

	

Name:

	
 

	

David Baylor

	
 

	

Title:

	
 

	

COO

 

 

 

30

 

 

	
 

	

VECTOR FUSION HOLDINGS (CAYMAN), LTD., as Forbearing
Lender

 

	
 

	

By:

	
 

	

/s/
David
Baylor

	
 

	

Name:

	
 

	

David
Baylor

	
 

	

Title:

	
 

	

COO

 

 

31

 

 

	
 

	

VECTOR TRADING (CAYMAN), L.P., as Forbearing
Lender

 

	
 

	

By:

	
 

	

/s/
David
Baylor

	
 

	

Name:

	
 

	

David
Baylor

	
 

	

Title:

	
 

	COO

 

 

 

 

32

 

 

 

 

33

 

 

 

34

 

 

FIRST LIEN FORBEARANCE AGREEMENT

 

THIS
FORBEARANCE AGREEMENT, dated as of April 15, 2019 (this
“Agreement”), is
entered into by and among Fusion Connect, Inc., a Delaware
corporation (the “Borrower”), the Guarantor
Subsidiaries identified on the signature pages hereto
(collectively, with the Borrower, the “Credit Parties”), the Subsidiaries
identified on the signature pages hereto (collectively, the
“Canadian Subsidiaries”) and the Lenders
appearing on the signature pages hereto (the “Forbearing Lenders”). Each of the foregoing
shall be referred to herein as a “Party” and collectively as the
“Parties.”
Capitalized terms used in this Agreement and not defined herein
shall have the meanings ascribed thereto in the Credit Agreement
(as defined below).

 

WITNESSETH:

 

WHEREAS, the Credit
Parties, the Lenders, Wilmington Trust, National Association, as
administrative agent and collateral agent (in such capacities, and
together with its successors and permitted assigns, the
“Administrative
Agent”) and certain other parties are party to that
certain First Lien Credit and Guaranty Agreement, dated as of May
4, 2018 (as amended, supplemented, amended and restated or
otherwise modified from time to time prior to the date hereof, the
“Credit
Agreement”);

 

WHEREAS, the
Borrower has informed the Administrative Agent and the Forbearing
Lenders that certain Defaults or Events of Default have occurred or
may occur under the Credit Agreement (together, the
“First Lien
Defaults”) as a result of the Borrower’s failure
to:

 

(a)           pay
the scheduled principal installments with respect to the Tranche A
Term Borrowings and the Tranche B Term Borrowings, in each case,
due on April 1, 2019, which resulted in the occurrence of an Event
of Default pursuant to Section 8.1(a)(i) of the Credit
Agreement;

(b)           pay
interest with respect to certain of the Revolving Loans due on
April 
2, 2019 and May 2, 2019, which resulted in the occurrence of
an Event of Default pursuant to Section 8.1(a)(iii) of the Credit
Agreement;

(c)           pay
interest with respect to certain of the Tranche A Term Borrowings
and the Tranche B Term Borrowings, in each case, due on May 6,
2019, which, with the passing of the grace period, will result in
the occurrence of an Event of Default pursuant to Section
8.1(a)(iii) of the Credit Agreement;

(d)           (c)
comply with the Fixed Charge Coverage Ratio for the four
consecutive Fiscal Quarters ended December 31, 2018, which resulted
in the occurrence of an Event of Default pursuant to Section 8.1(c)
of the Credit Agreement;

(e)           (d)
timely deliver the annual audited consolidated balance sheet of the
Borrower and its Subsidiaries and the related and consolidated
statements of operations, stockholders’ equity and cash flows
for the Fiscal Year ended December 31, 2018 and the failure to
include with those financial statements a report by EisnerAmper LLP
or an independent registered public accounting firm of recognized
national standing that does not contain a “going
concern” or like qualification or exception, which, with the
passing of the grace period, will result in the occurrence of an
Event of Default pursuant to Section 8.1(e) of the Credit
Agreement; and

(f)           (e)
comply with (i) the Total Net Leverage Ratio for the Fiscal Quarter
ended March 31, 2019 and (ii) the Fixed Charge Coverage Ratio for
the four consecutive Fiscal Quarters ended March 31, 2019
(together, clauses (c) and (e)(ii), the “FCCR Defaults”), which resulted in
the occurrence of an Event of Default pursuant to Section 8.1(c) of
the Credit Agreement;

WHEREAS, the
Borrower has informed the Administrative Agent and the Forbearing
Lenders that certain Defaults or Events of Default (as each are
defined under the Second Lien Credit Agreement) have occurred or
may occur as a result of corresponding defaults under the Second
Lien Credit Agreement (together, solely with respect to any such
Defaults or Events of Default (as each are defined under the Second
Lien Credit Agreement, the “Second Lien
Defaults”);

 

 

 

35

 

 

 

 

WHEREAS, the
Borrower has also informed the Administrative Agent and the Lenders
that a default or Event of Default (as defined in the New
Subordinated Note) has occurred or may occur as a result of the
Maker (as defined in the New Subordinated Note) failing to pay
interest due and payable on the New Subordinated Note on March 31,
2019 (the “New Subordinated
Note Default”), which will result in the occurrence of
an Event of Default pursuant to Section 8.1(b) of the Credit
Agreement;

 

WHEREAS, in
accordance with Section 8.1 of the Credit Agreement, the Requisite
Lenders and, solely with respect to the FCCR Defaults, the
Requisite Tranche A/Revolving Lenders, may direct the
Administrative Agent to exercise remedies as set forth therein in
respect of (i) the First Lien Defaults, and (ii) the Events of
Default arising under Section 8.1(b) of the Credit Agreement
related to the Second Lien Defaults and the New Subordinated Note
Default (together, clauses (i) and (ii), the “Collective
Defaults”);

 

WHEREAS,
the Credit Parties have requested that the Forbearing Lenders
temporarily forbear, notwithstanding the occurrence of the
Collective Defaults, from accelerating the unpaid principal amount
of the outstanding Loans and otherwise exercising remedies (or
directing the Administrative Agent to exercise remedies) pursuant
to Section 8.1 of the Credit Agreement; and

 

WHEREAS, the Forbearing Lenders (which constitute
the Requisite Lenders) and (with respect to the forbearance
in respect of the FCCR Defaults) the Requisite Tranche A/Revolving
Lenders agree to accommodate such
request of the Credit Parties on the terms and subject to the
conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the foregoing, the covenants and
conditions contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:

 

Section
2.                      Incorporation
of Recitals.

 

Each of
the Credit Parties acknowledges that the recitals set forth above
are true and correct in all respects and admits to the occurrence
of each Collective Default.

 

Section
3.                      Amounts
Owing.

 

Each of
the Credit Parties acknowledges and agrees that, as of the date
hereof, the aggregate principal amount of Loans outstanding under
the Credit Agreement is $573,187,500, consisting of (i) with
respect to the Tranche A Term Loans, in an aggregate principal
amount of $43,312,500, (ii) with respect to the Tranche B Term
Loans, in an aggregate principal amount of $490,875,000 and
(iii) Revolving Commitments in an aggregate amount of
$40,000,000 and Revolving Loans in an aggregate principal amount of
$39,000,000, plus accrued and unpaid interest and fees thereon.
Such Obligations, together with all other outstanding Obligations
owing pursuant to the terms of the Credit Documents, including
interest, fees, expenses and other charges, are validly owing and
are not subject to any right of offset, deduction, claim, or
counterclaim in favor of any Credit Party.

 

 

 

36

 

 

Section
4.                      Forbearance;
Forbearance Period.

 

(a)           In
reliance upon the representations, warranties and covenants of the
Credit Parties contained in this Agreement, and solely upon the
terms and subject solely to the conditions of this Agreement, each
of the Forbearing Lenders (1) hereby agrees that, during the
Forbearance Period (as defined below), such Lender shall not, and
shall not request or direct the Administrative Agent to, solely in
respect of the Collective Defaults (but not with respect to any
other Defaults or Events of Default) (i) accelerate all of the
Loans and the Obligations related thereto or (ii) exercise any
other rights or remedies available to the Administrative Agent or
the Forbearing Lenders pursuant to Section 8.1 of the Credit
Agreement or Section 5.01 of the Pledge and Security Agreement (the
“Forbearance”)
and (2) hereby directs the Administrative Agent, during the
Forbearance Period, to abstain from taking any of the actions
described in the immediately preceding sentence. The Credit Parties
acknowledge and agree that the Forbearance is limited to the extent
specifically set forth above and no other terms, covenants,
provisions, rights or remedies under the Credit Agreement
(including, for the avoidance of doubt, the right to charge default
interest in accordance with Section 2.9 of the Credit Agreement
during the Forbearance Period) or any other Credit Document or at
law or in equity are intended to (or shall) be affected hereby, all
of which remain in full force and effect.

 

(b)           The
“Forbearance
Period” shall commence on the Forbearance Effective
Date (as defined below) and shall terminate immediately and
automatically upon the earlier to occur of (i) April
29June
3, 2019, at 11:59
pm New York time and (ii) the occurrence of a Forbearance
Termination Event (as defined below).

 

(c)           Upon
the occurrence of a Forbearance Termination Event, the Forbearance
Period and the Forbearance shall immediately and automatically end
without the requirement of any demand, presentment, protest, notice
(including any written notice required by Section 8.1 of the Credit
Agreement) or other action of any kind (other than as provided in
Section 3(d) below), all of which the Borrower and each of the
other Credit Parties waive; provided notwithstanding
anything to the contrary herein, the Forbearance Period and
Forbearance shall terminate automatically and without notice of
termination immediately upon the occurrence of an Event of Default
of the type set forth in Section 8.1(f) or (g) of the Credit
Agreement.

 

(d)           The
occurrence of any of the following events or circumstances shall
immediately and automatically constitute a termination event with
respect to the Forbearance following delivery of notice (including
by email) by the Administrative Agent at the request of the
Requisite Lenders or the Requisite Tranche A/Revolving Lenders
(each, a “Forbearance
Termination Event”):

 

(i)          
the occurrence of any
Default or Event of Default under the Credit Agreement or any other
Credit Document that is not a Collective
Default;

 

(ii)         
[reserved]failure
to comply with any of the milestones set forth in Section 5.17 of
the Super Senior Credit Agreement, as such agreement is in effect
on the Amendment Effective Date;

 

(iii)         
the occurrence of any
breach by the Borrower or any Subsidiary of any covenant, term or
other provision of this Agreement;

 

(iv)       
  any representation
or warranty made by the Borrower or any Subsidiary herein or which
is contained in any certificate, document or financial or other
statement furnished by the Borrower at any time under or in
connection with this Agreement or otherwise shall prove to have
been inaccurate in any material respect on or as of the date
made;

 

(v)           the
commencement of any action, suit, litigation, investigation or
other proceeding against the Administrative Agent or any Lender (i)
by any of the Credit Parties or entity controlled by, affiliated
with, related to or under common control with any of the Credit
Parties; and (ii) by any Person asserting claims relating in any
way to any of the Credit Parties, the Credit Agreement, the Credit
Documents, or the Collateral, provided that no action permitted
under the Intercreditor Agreement to be taken by the Second Lien
Secured Parties, the Second Lien Required Lenders and/or the Second
Lien Representative (each as defined in the Intercreditor
Agreement) shall constitute a Forbearance Termination Event
pursuant to this Section 3(d)(v)(ii);

 

 

 

37

 

 

 

 

(vi)           any
payment, or setting aside of funds, by the Borrower or any
Subsidiary for the purpose of making any payments, or otherwise
transfer any economic value (including the payment of any fees,
costs or expenses of any advisors) to any direct or indirect equity
holder of the Borrower in its capacity as such, including, without
limitation, Holcombe T. Green, Jr. (or any affiliate of Holcombe T.
Green, Jr.) (other than the transfer of assets in connection with
the closing of the pending asset sale transaction between Lingo
Communications, LLC or its affiliates, on the one hand, and any of
the Credit Parties, on the other hand, pursuant to the terms of the
asset purchase agreement for such transaction in effect on the date
such agreement was entered into (the “Lingo
Transaction”));

 

(vii)           any
payment, or setting aside of funds, by the Borrower or any
Subsidiary, including with respect to interest, principal, fees,
expenses, indemnification or otherwise, on account of or in
connection with the Subordinated Notes or any Loans (as defined in
the Second Lien Credit Agreement) or make any payment with respect
to interest or principal on account of any
Loans;

 

(viii)           if
the Borrower or any Subsidiary engages in any transaction
(including the incurrence of any Indebtedness) or makes any
payment, transfers or takes any other action (or forbear from
taking any action), in each case outside the ordinary course of
business (other than the Lingo Transaction), provided that for
purposes of this clause (viii), any payments made by the Borrower
or any Subsidiary to (x) its vendors on
account of outstanding obligations owed to such vendors
consistent with the
13-Week
ForecastApproved
Super Senior Budget (as defined in the Super Senior Credit
Agreement (as
defined below)) shall be deemed to
have been made in the ordinary course of business
(provided
that,
in any event, Greenhill 
(as defined below) shall be consulted prior to the
entering into any payment plans with respect to past due
amounts) or (y) the Advisors
(as defined below, and solely to the extent billed on an hourly or
monthly basis and excluding, for the avoidance of doubt, any
transaction, completion or success fee) shall be deemed to
have been made in the ordinary course of
business; provided,
further, that for purposes of this clause (viii), the incurrence of
any Indebtedness for borrowed money shall be deemed to have been
made outside the ordinary course of business;,
other than with respect to that certain Super Senior Secured Credit
Agreement, dated on or about the date hereof (as may be amended,
supplemented, amended and restated or otherwise modified from time
to time, the “Super
Senior Credit Agreement”),
among the Borrower, certain subsidiaries of the Borrower party
thereto, the lenders party thereto and Wilmington Trust, National
Association, as administrative agent and collateral agent), in an
aggregate principal amount not to exceed $20,000,000, plus any fees
and interest accrued and unpaid pursuant to the terms
thereof;

 

(ix)      
     [reserved]the
occurrence of an Event of Default under the Super Senior Credit
Agreement (unless such Event of Default was cured or waived
pursuant to the terms thereof); 

 

 

 

38

 

 

 

 

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

 

(xi)           the
failure by the Borrower, on the close of business of each
ThursdayWednesday
during the Forbearance
Period, to maintain aggregate bank and book cash balances of at
least $2,000,000;

 

(xii)           any
Lender under the Credit Agreement or any agent, trustee or
representative on behalf of any such Lender shall commence a legal
proceeding against any Credit Party or set off against any of their
respective property, in each case, with respect to enforcement of
the Credit Agreement or the obligations
thereunder;

 

(xiii)        
any lender under the
Second Lien Credit Agreement or any agent, trustee or
representative on behalf of any such lender shall commence a legal
proceeding against any Credit Party or set off against any of their
respective property, in each case, with respect to enforcement of
the Second Lien Credit Agreement or the obligations thereunder;
provided that no action permitted under the Intercreditor Agreement
to be taken by the Second Lien Secured Parties, the Second Lien
Required Lenders and/or the Second Lien Representative (each as
defined in the Intercreditor Agreement) shall constitute a
Forbearance Termination Event pursuant to this Section
3(d)(xiii);

 

(xiv)           the
Maker shall commence a legal proceeding against any Credit Party or
set off against any of their respective property, in each case,
with respect to enforcement of the New Subordinated Note or the
obligations thereunder;

 

(xv)           the
failure by the Borrower to (a) within three (3) Business Days of
the date hereof, enter into a customary fee letter (the
“Greenhill Fee
Letter”)
reasonably acceptable to Greenhill and Co.
(“Greenhill”)
providing, among other things, that the Borrower shall pay all of
Greenhill’s reasonable and documented fees and expenses in
connection with its representation of the ad hoc group comprised of
certain of the Forbearing Lenders (the “Ad Hoc
Group”) and
(b) promptly upon (and no later than five (5) calendar days after)
request by Simpson Thacher (as defined below), enter into a
customary fee letter (the “TLA/Revolver FA Fee
Letter”)
reasonably acceptable to a financial advisor, if any (the
“TLA/Revolver
FA”), engaged
by Simpson Thacher on behalf of a group of Lenders of Tranche A
Term Loans and Revolving Lenders (the “TLA/Revolver
Group”)
providing, among other things, that the Borrower shall pay all of
the TLA/Revolver FA’s reasonable and documented fees and
expenses;

 

(xvi)           the
failure by the Borrower to pay all of the reasonable fees and
expenses of (A) Davis Polk & Wardwell LLP
(“Davis
Polk”) and
Greenhill in accordance with the terms of a customary fee letter
reasonably acceptable to Davis Polk providing, among other things,
that the Borrower shall pay all of Davis Polk’s reasonable
and documented fees and expenses in connection with its
representation of the Ad Hoc Group and the Greenhill Fee Letter,
respectively, (B) Arnold & Porter Kaye Scholer
(“Arnold &
Porter”) as
counsel to the Administrative Agent, (C) Simpson Thacher &
Bartlett LLP (“Simpson
Thacher”)
incurred in connection with its representation of the TLA/Revolver
Group within three (3) Business Days of presentment of a summary
invoice and (D) the TLA/Revolver FA (if any) in accordance with the
TLA/Revolver FA Fee Letter; and

 

 

 

39

 

 

 

 

(xvii)             a
failure specified in Section 10(b) below.

 

(e)           This
Agreement is limited in nature and nothing contained herein is
intended, or shall be deemed or construed, to (i) constitute a
waiver of any Collective Default or any existing or future Defaults
or Events of Default (including any Event of Default arising from
the Collective Defaults) or compliance with any term or provision
of the Credit Documents or at law or in equity or (ii) establish a
custom or course of dealing between the Credit Parties, on the one
hand, and the Administrative Agent and/or any Lender, on the other
hand.

 

(f)           Immediately
and automatically upon the Forbearance Period ending in accordance
with its terms, the agreements set forth in the first sentence of
Section 3(a) hereof (including the Forbearance) shall be void ab
initio (it being understood, for the avoidance of doubt, that this
provision shall not impair the effectiveness of any other
provisions of this Agreement, which shall remain in full force and
effect), and each of the Administrative Agent and the Forbearing
Lenders shall be free in its sole and absolute discretion, without
limitation, to immediately proceed to enforce any or all of its
rights and remedies provided under, and in accordance with, the
Credit Documents, at law or in equity. Notwithstanding the
occurrence of the Forbearance Effective Date, each of the Credit
Parties acknowledges and confirms that, subject to the Forbearance,
all rights and remedies of the Administrative Agent and the
Forbearing Lenders under the Credit Documents, at law or in equity
with respect to the Credit Documents, the transactions thereunder,
the Borrower or any other Credit Party shall in each case continue
to be available to the Administrative Agent and the Forbearing
Lenders.

 

(g)           [Reserved].

 

(h)           The
Parties agree that the running of all statutes of limitation and
the doctrine of laches applicable to all claims or causes of action
that the Administrative Agent and/or any Lender may be entitled to
take or bring in order to enforce its rights and remedies against
the Borrower and/or the other Credit Parties are, to the fullest
extent permitted by law, tolled and suspended during the
Forbearance Period.

 

Section
5.                      Representations
and Warranties.

 

(a)           Each
Credit Party hereby represents and warrants to the Administrative
Agent and the Forbearing Lenders as follows (which representations
and warranties are continuing and shall survive the execution and
delivery hereof):

 

(i)          the
execution, delivery and performance of this Agreement by each of
the Credit Parties has been duly authorized by all necessary
corporate or other organizational action, and do not (A) contravene
the terms of the organizational documents of such Credit Party; (B)
conflict with or result in any breach or contravention of, or
require any payment to be made under (1) any material contractual
obligation to which such Credit Party is a party or affecting such
Credit Party or its properties or (2) any order, injunction, writ
or decree of any Governmental Authority or any arbitral award to
which such Credit Party or its property is subject; (C) violate any
law to which such Credit Party or its property is subject; or (D)
result in the creation of any Lien on any property of such Credit
Party;

 

 

 

40

 

 

 

 

(ii)         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, or enforcement against, such Credit
Party of this Agreement, other than those obtained prior to the
Forbearance Effective Date or being obtained in connection
herewith;

 

(iii)          no
Default or Event of Default has occurred and is continuing other
than the Collective Defaults;

 

(iv)         other
than in respect of the Collective Defaults, each of the
representations and warranties made by such Credit Party in the
Credit Agreement and the other Credit Documents are true and
correct in all material respects with the same effect as though
such representations and warranties were made on the date hereof
(except where such representations and warranties expressly relate
to an earlier date, in which case such representations and
warranties shall be true and correct in all material respects as of
such earlier dates); and

 

(v)           as
of the date hereof, no Third Party Forbearance Agreement (as
defined below) exists between any Credit Party and any Lender,
whether individually or as a group, which is not otherwise
reflected or referred to in this Agreement.

 

Section
6.                      Conditions
to Effectiveness of this Agreement.

 

This
Agreement shall become effective (the date of such effectiveness
being referred to herein as the “Forbearance Effective Date”) upon
the occurrence of the following conditions:

 

(a)           execution
of this Agreement by the Forbearing Lenders constituting the
Requisite Lenders and the Requisite Tranche A/Revolving Lenders
under the Credit Agreement, the Credit Parties and the Canadian
Subsidiaries;

 

(b)           receipt
by the Administrative Agent, Greenhill and the Forbearing Lenders
who wish to receive such information of a preliminary cash flow
forecast covering the 13-week period ending July 5, 2019, in Excel
format (the “13-Week
Forecast”), which 13-Week Forecast and any amendments
thereto shall reflect, for the periods covered thereby, projected
weekly disbursements (in line item detail), cash receipts (in line
item detail), and ending cash for each week covered by the 13-Week
Forecast;

 

(c)           receipt
by the Administrative Agent, Greenhill and the Forbearing Lenders
who wish to receive such information of (i) the annual budget for
the Fiscal Year ending December 31, 2019 that was approved by the
Board of Directors of the Borrower (the “Budget”) and (ii) the associated
four year business projections reviewed by the Board of Directors
of the Borrower at the time it approved the Budget;

 

(d)           receipt
by the Administrative Agent, Greenhill and the Forbearing Lenders
who wish to receive such information of the Borrower’s
existing synergies plan relating to its acquisition of MegaPath
Holding Corporation and Birch Communications Holdings, reflecting
the synergies derived to date and the remaining synergies that
Borrower expects to derive from those acquisition
transactions;

 

(e)           receipt
by the Administrative Agent, Greenhill and the Forbearing Lenders
who wish to receive such information of the Borrower’s
unaudited monthly financials for the months ending January 31, 2019
and February 28, 2019;

 

 

 

41

 

 

 

 

(f)           [reserved];

 

(g)           the
Borrower and each other Credit Party shall have delivered to the
Forbearing Lenders who wish to receive such information (i) minutes
of the Borrower and each other Credit Party authorizing the
execution, delivery and performance of its obligations under this
Agreement, and (ii) such other documents and instruments as the
Forbearing Lenders may reasonably require, all of the foregoing of
which shall be in form and substance reasonably acceptable to the
Forbearing Lenders; and

 

(h)           payment,
by or on behalf of the Borrower, to the Administrative Agent, for
the account of each Forbearing Lender, of an upfront fee equal to
200 basis points on the aggregate principal amount of the Loans as
of the Forbearance Effective Date or, in the case of the Revolving
Lenders, Revolving Commitments in effect immediately prior to
giving effect to this Agreement, in each case held by such
Forbearing Lender; provided that such fee shall be
paid “in kind” to any Forbearing Lender who submits a
signature page to this Agreement no later than 5:00 p.m. (Eastern
time) on April 16, 2019 by adding the amount of such fee payable
with respect to each Class of Loan held by each Forbearing Lender
to the amount of the outstanding Loans of such Class of such Lender
(it being understood that any such added amounts shall be treated
as principal of the Loans and bear interest in accordance with the
Credit Agreement for all purposes other than for the determination
of Requisite Lenders, Requisite Tranche A/Revolving Lenders or any
other voting provision of the Credit Agreement).

 

Section
7.                      Notice
of Default.

 

Each
Credit Party shall provide notice to the Administrative Agent and
to counsel to the Forbearing Lenders promptly of its obtaining
knowledge of the occurrence of any Forbearance Termination Event,
which notice shall state that such event occurred and set forth, in
reasonable detail, the facts and circumstances that gave rise to
such event. Such notice shall be delivered to:

 

The Administrative
Agent:

 

Wilmington Trust,
National Association

50
South Sixth Street, Suite 1290

Minneapolis, MN
55402

Attn: Jeffrey Rose
(jrose@wilmingtontrust.com)

 

With copies by electronic mail (which shall not constitute notice)
to:

 

Arnold
& Porter Kaye Scholer LLP

70 West
Madison Street, Suite 4200

Chicago, Illinois
60602

Attn: Michael Messersmith
(Michael.Messersmith@arnoldporter.com)
   

 

and

 

250
West 55th Street

New
York, New York 10019-9710

Attn: Alan Glantz
(Alan.Glantz@arnoldporter.com)

 

 

42

 

 

 

With copies by electronic mail (which shall not constitute notice)
to:

 

Davis
Polk & Wardwell LLP

450
Lexington Avenue

New
York, NY 10017

Attn: Damian S. Schaible
(damian.schaible@davispolk.com) and Adam L. Shpeen
(adam.shpeen@davispolk.com)

 

Legal advisor to the TLA/Revolver Group:

 

Simpson
Thacher & Bartlett LLP

425
Lexington Avenue

New
York, NY 10017

Attn:
Sandeep Qusba (squsba@stblaw.com)
and Soogy Lee (slee@stblaw.com)

 

All
notices given in accordance with the provisions of this Section 6
shall be (x) deemed to have been given on the date of receipt and
(y) in the case of such notices given to the Administrative Agent,
promptly delivered by the Administrative Agent to the Forbearing
Lenders.

 

Section
8.                      Effect
upon Credit Agreement; Ratification of Liability; No Waiver;
Etc.

 

(a)           From
and after the date hereof, (i) the term “Agreement” in
the Credit Agreement, and all references to the Credit Agreement in
any Credit Document, shall mean the Credit Agreement, as
interpreted in accordance with the terms of this Agreement, and
(ii) the term “Credit Documents” in the Credit
Agreement and the other Credit Documents shall include this
Agreement.

 

(b)           Each
Credit Party hereby ratifies and reaffirms that (a) each of the
Credit Documents to which it is a party has been duly executed and
delivered by such Credit Party to the Administrative Agent and to
the Lenders and is in full force and effect as of the date hereof;
(b) the agreements and obligations of each Credit Party contained
in the Credit Documents, including, without limitation, all
payment, performance, indemnification and other obligations and all
guarantees of such obligations constitute the legal, valid and
binding obligations of such Credit Party, enforceable against the
Credit Parties in accordance with the terms thereof (except as
enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or limiting
creditors’ rights generally or by equitable principles
relating to enforceability); (c) its grant of liens on or security
interests in its properties pursuant to the Credit Documents as
security for the Obligations under or with respect to the Credit
Agreement and confirms and agrees that such liens and security
interests secure all of the Obligations, including any additional
Obligations hereafter arising or incurred pursuant to or in
connection with this Agreement, the Credit Agreement or any other
Credit Document; and (d) the Administrative Agent and the Lenders
are and shall be entitled to all of the rights, remedies and
benefits provided for in the Credit Documents.

 

 

 

43

 

 

 

 

(c)           Except
as expressly provided herein, nothing in this Agreement is intended
or shall be deemed or construed to in any way waive, alter or
impair the obligations or any of the rights or remedies of the
Administrative Agent or the Lenders under the Credit Documents, at
law or in equity. All terms and provisions of the Credit Documents
remain in full force and effect, except to the extent expressly
modified by this Agreement. Each of the Credit Parties acknowledges
that the Administrative Agent and the Lenders have made no
representations as to what actions, if any, they will take after
the Forbearance Period, and the Administrative Agent and each
Forbearing Lender hereby specifically reserves any and all rights,
remedies, claims and benefits provided for in the Credit Documents,
including, without limitation, with respect to the Events of
Default and each other Default that may occur. The Collective
Defaults shall be deemed to have occurred and be continuing for all
purposes under the Credit Documents, notwithstanding any subsequent
cure or any other event or condition after the date hereof that
would cause any Collective Default to be no longer continuing, and
such Collective Default may only be cured or waived with the
consent of, and on terms and conditions satisfactory to, the
Requisite Lenders (or, with respect to any cures or waivers of the
FCCR Defaults, the Requisite Tranche A/Revolving
Lenders).

 

Section
9.                      More
Favorable Terms.

 

To the
extent that any other forbearance, standstill or other similar
agreement entered into by any Credit Party (any such agreement, a
“Third Party Forbearance
Agreement”), or any amendment to any Third Party
Forbearance Agreement, in each case, entered into or agreed on or
after the date of this Agreement and during the Forbearance Period,
provides any benefit or right (including, without limitation, the
benefit of a forbearance period of shorter duration than the
Forbearance Period) to any creditor party thereto that is more
favorable than the benefits and rights provided to the
Administrative Agent and the Lenders under this Agreement, taking
into account the terms and conditions of the underlying debt
financing documents in effect with such creditor party, this
Agreement shall be deemed to be amended so as to cause any such
benefit or right to be incorporated into this Agreement
concurrently with making any such benefit or right available, and
on comparable terms as it is made available, to any such other
creditor.

 

Section
10.                                Release.

 

Each of
the Credit Parties, on behalf of itself and its successors or
assigns (collectively, the “Releasing Parties”), in
consideration of the Forbearing Lenders’ execution and
delivery of this Agreement and for other good and valuable
consideration, the receipt and sufficiency of which is hereby
acknowledged, unconditionally, freely, voluntarily and, after
consultation with counsel and becoming fully and adequately
informed as to the relevant facts, circumstances and consequences,
releases, waives and forever discharges (and further agrees not to
allege, claim or pursue) any and all claims, rights, causes of
action, counterclaims or defense of any kind whatsoever, in
contract, in tort, in law or in equity, whether known or unknown,
fixed or contingent, direct or indirect, joint and/or several,
secured or unsecured, due or not due, liquidated or unliquidated,
asserted or unasserted, or foreseen or unforeseen, which any of the
Releasing Parties might otherwise have or may have against the
Administrative Agent, the Lenders, their present or former
subsidiaries and affiliates or any of the foregoing’s
officers directors, employees, attorneys or other representatives
or agents (collectively, the “Releasees”) in each case on
account of any conduct, condition, act, omission, event, contract,
liability, obligation, demand, covenant, promise, indebtedness,
claim, right, cause of action, suit, damage, defense, judgment,
circumstance or matter of any kind whatsoever which existed, arose
or occurred at any time prior to the date of this Agreement
relating to the Credit Documents, this Agreement and/or the
transactions contemplated thereby or hereby (any of the foregoing,
a “Claim” and
collectively, the “Claims”). Each of the Releasing
Parties expressly acknowledges and agrees, with respect to the
Claims, that it waives, to the fullest extent permitted by
applicable law, any and all provisions, rights, and benefits
conferred by any applicable U.S. federal or state law, or any
principle of U.S. common law, that would otherwise limit a release
or discharge of any unknown Claims pursuant to this Section 9.
Furthermore, each of the Releasing Parties hereby absolutely,
unconditionally and irrevocably covenants and agrees with and in
favor of each Releasee that it will not sue (at law, in equity, in
any regulatory proceeding or otherwise) any Releasee on the basis
of any Claim released and/or discharged by the Releasing Parties
pursuant to this Section 9. The foregoing release, covenant and
waivers of this Section 9 shall survive and remain in full force
and effect regardless of the consummation of the transactions
contemplated hereby, the repayment or prepayment of any of the
Loans, or the termination of the Credit Agreement, this Agreement,
any other Credit Document or any provision hereof or
thereof.

 

 

 

44

 

 

 

 

Section
11.                                Cash
Forecast; Testing Periods.

 

(a)
During
the Forbearance Period, the Borrower agrees that the aggregate
payments made by the Credit Parties (excluding the reasonable fees
and expenses paid by a Credit Party to (x) any legal or financial
advisor retained to assist the Borrower with respect to a
resolution of the Collective Defaults to the extent billed on an
hourly or monthly basis and excluding, for the avoidance of doubt,
any transaction, completion or success fee, or (y) any legal and
financial advisor required to be retained under this Agreement or
required to be paid or reimbursed under the Credit Documents,
including, without limitation, Davis Polk, Greenhill, Arnold &
Porter, Simpson Thacher and the TLA/Revolver FA, if any (all of the
foregoing legal and financial advisors, collectively, the
“Advisors”)) during
each Testing Period (as defined below) to its vendors shall not
exceed the aggregate amount of forecasted payments set forth in the
13-Week Forecast for the applicable Testing Period (the
“Limit”)
by more than $2,000,000. For purposes of this clause
(a),
a “Testing
Period” means each
period during the Forbearance Period, the first date of which shall
be the Forbearance Effective Date and the last date of which shall
be each Friday thereafter (each, a “Testing
Date”). The
Borrower shall promptly notify Greenhill and the Forbearing
Lenders, in each case in writing (email being acceptable notice) in
the event that the aggregate payments made during any Testing
Period exceed the Limit on such Testing Date by an amount in excess
of $2,000,000.

 

(a)           Section
6.15 of the Super Senior Credit Agreement is hereby incorporated by
reference into this Agreement and shall apply as if fully set forth
herein mutatis mutandis and any capitalized terms used in such
Section 6.15 shall have the meanings ascribed to such terms in the
Super Senior Credit Agreement.

 

(b)           Each
Credit Party hereby confirms, acknowledges and agrees that, unless
waived in writing by the Administrative Agent (at the direction of
the Requisite Lenders), the failure of Borrower to deliver any
report or notice required by Section 10(a) or Section 11 below shall constitute a Forbearance
Termination Event.

 

(c)           Notwithstanding
any projected amounts in the 13-Week Forecast relating to the costs
and expenses of the Administrative Agent and the Forbearing Lenders
that are reimbursable by the Credit Parties or any other amounts
owing by the Credit Parties to the Administrative Agent and the
Lenders in accordance with the Credit Agreement and the other
Credit Documents, such projections shall not limit, impair, modify
or waive Credit Parties’ obligation to pay the actual amounts
due to the Administrative Agent and/or the Forbearing Lenders in
respect of such fees, costs, expenses and other amounts owing to
the Administrative Agent and the Forbearing Lenders in accordance
with the Credit Agreement and the other Credit
Documents.

 

(d)           The
Credit Parties acknowledge, agree and reaffirm that notwithstanding
anything to the contrary in the Credit Agreement, any other Credit
Document, this Agreement, or otherwise, the Administrative Agent
and the Lenders shall not be responsible for, or have any liability
or obligation to ensure the payment of, any costs and expenses set
forth in the 13-Week Forecast or any other claims asserted or
incurred in connection with the Credit Parties’ business or
any proceeding commenced by or against any of the Credit Parties
under any chapter of the Bankruptcy Code, and nothing in this
Agreement, the Credit Agreement, any other Credit Document or
otherwise shall be construed to obligate the Administrative Agent
or the Lenders in any way, to pay, fund, or ensure that the Credit
Parties have sufficient funds to pay any such fees, costs and
expenses.

 

Section
12.                                Additional
Reporting.

 

(a)           The
Borrower shall deliver to the Forbearing Lenders who wish to
receive such information and Greenhill (i) a comparison
of the Borrower’s unaudited monthly financials
to the
Budget and its 
associated standard monthly key performance indices
reports
(the
“KPIs”)
for the months ending January 31, 2019 and February 28, 2019 on or
prior to 5:00 p.m. (Eastern time) on April 12, 2019, (ii) monthly
KPIs (for non-financial data) for the month ending
March
31, 2019 on or prior to 5:00 p.m. (Eastern time) on April 12, 2019,
(iii) unaudited monthly financials for the month ending March 31,
2019 and a comparison of such results against the Budget on or
prior to 5:00 p.m. (Eastern time) on April 18, 2019 and (iv)
unaudited monthly financials and associated monthly KPIs
forApril
30, 2019 and each month thereafter,
and a comparison of such financials against the 
annual Bbudget

for the Fiscal Year ending December 31, 2019 that was approved by
the Board of Directors of the Borrower, no later than eleven
(11) Business Days following the last date of such month occurring
during the Forbearance Period.

 

 

 

45

 

 

 

 

(b)           The
Borrower shall deliver to the Forbearing Lenders who wish to
receive such information and Greenhill (i) on or prior to
5:00 p.m. (Eastern time) on Wednesday of each calendar week, a
variance report for the Testing Period ended on Friday of the prior
week, in a form reasonably acceptable to Greenhill, with a
narrative description of any material variances and setting forth
the aggregate amount of payments made during such period and the
amount by which any payments made exceed the Limit and (ii) at the
time of the close of business on Thursday of each calendar week, a
report, in a form reasonably acceptable to Greenhill, specifying
the amount of the aggregate bank and book cash balances of the
Borrower as of such date.a
Budget Variance Report (as defined in the Super Senior Credit
Agreement) according to the terms of Section 5.1(p) of the Super
Senior Credit Agreement.

 

(c)           All
deliverables hereunder to Greenhill or the satisfaction or
acceptability of any deliverable under this Agreement (or any
amendment or supplement hereto) by Greenhill shall also be
delivered to and be subject to the satisfaction of and be
acceptable to the TLA/Revolver FA, if any.

 

(d)           The
Borrower shall give the Forbearing Lenders who wish to receive such
information and Greenhill three (3) Business Days’ prior
notice of any proposed or contemplated transaction or other action,
including the incurrence of Indebtedness, that, that would
constitute a Forbearance Termination Event pursuant to Section 3(d)(viii).

 

(e)           The
Borrower shall give the Forbearing Lenders who wish to receive such
information, substantially concurrently with delivery under the
Super Senior Credit Agreement, the reporting delivered pursuant to
Section 5.1(o), (q) and (s) of the Super Senior Credit Agreement
and any such additional reporting that may be required under the
Super Senior Credit Agreement after the Amendment Effective
Date.

 

Section
13.                                Lender
Calls. The Borrower shall, at its own expense, facilitate
and hold calls between Greenhill and members of the
Borrower’s executive management team and/or their advisors
not less than twice every week and shall invite the Forbearing
Lenders or their advisors to attend such calls.

 

Section
14.                                Industry
Consultant. The Borrower hereby agrees to pay and reimburse
all reasonable and documented fees and expenses when due of one
industry consultant with substantial experience and knowledge as to
the operation of the cloud services and communication services
retained by the Requisite Lenders.

 

Section
15.                                Interest
Rate.

 

(a)           On
and after the date hereof and for so long as an Event of Default
shall be continuing under the Credit Agreement, all Obligations
shall accrue default interest in the manner set forth in Sections
2.9(a) and 2.9(b) of the Credit Agreement.

 

(b)
The
definition of “Applicable Rate” in the Credit Agreement
is hereby amended, with effect as of the Forbearance Effective
Date, by increasing each interest rate percentage for Loans
specified therein by a percentage equal to 100 basis points per
annum (the “Incremental
Interest”);
provided
that
the Incremental Interest shall be paid “in kind” by
adding the amount of such Incremental Interest with respect to each
Class of Loan held by each Lender to the amount of the outstanding
Loans of such Class of such Lender (it being understood that any
such added amounts shall be treated as principal of the Loans and
bear interest in accordance with the Credit Agreement for all
purposes other than for the determination of Requisite Lenders,
Requisite Tranche A/Revolving Lenders or any other voting provision
of the Credit Agreement).

 

Section
16.                                Revolving
Commitments. The Revolving Commitments are hereby
terminated.

 

 

 

46

 

 

 

 

Section
17.                                Fees
and Expenses; Indemnities. All terms, provisions and
agreements set forth in Sections 10.2 and 10.3 of the Credit
Agreement are hereby incorporated herein by reference with the same
force and effect as though fully set forth herein.

 

Section
18.                                Reinvestment.
The Forbearing Lenders hereby (a) consent to the Borrower’s
reinvestment of Net Proceeds received or to be received by the
Borrower pursuant to the Lingo Transaction in non-current assets
useful in the business of the Borrower and its Restricted
Subsidiaries within 365 days after the receipt of such Net Proceeds
(the “Reinvestment”), in lieu of applying such Net
Proceeds in mandatory prepayment under Section 2.13(a) of the
Credit Agreement and (b) waive the requirement under Section
2.13(a) of the Credit Agreement for the Borrower to deliver to the
Administrative Agent a certificate of an Authorized Officer of the
Borrower setting forth the Borrower’s intention to cause such
Net Proceeds to be applied in such
Reinvestment.

 

Section
19.                                Section
17. Successors and
Assigns.

 

This
Agreement shall be binding upon
and inure to the benefit of each Party hereto and their respective
successors and assigns.

 

Section
20.                                Section
18. No Third-Party
Beneficiaries.

 

No
Person other than the Credit Parties, the Administrative Agent, the
Lenders and, in the case of Section 9 hereof, the Releasees, shall
have any rights hereunder or be entitled to rely on this Agreement
and all third-party beneficiary rights (other than the rights of
the Releasees under Section 9 hereof) are hereby expressly
disclaimed.

 

Section
21.                                Section
19. Severability.

 

The
invalidity, illegality or unenforceability of any provision in or
obligation under this Agreement in any jurisdiction shall not
affect or impair the validity, legality or enforceability of the
remaining provisions or obligations under this Agreement or of such
provision or obligation in any other jurisdiction.

 

Section
22.                                Section
20. Governing Law,
Jurisdiction; Waiver of Jury Trial.

 

(a)           THIS
AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR
RELATED TO THIS AGREEMENT, WHETHER IN TORT, CONTRACT (AT LAW OR IN
EQUITY) OR OTHERWISE, SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD RESULT IN
THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW
YORK.

 

(b)           EACH
PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF
AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF ANY U.S. FEDERAL
OR NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN, IN THE
CITY OF NEW YORK (OR ANY APPELLATE COURT THEREFROM) OVER ANY SUIT,
IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION
OR PROCEEDING SHALL BE HEARD AND DETERMINED IN SUCH NEW YORK STATE
OR, TO THE EXTENT PERMITTED BY LAW, FEDERAL COURT. THE PARTIES
HERETO AGREE THAT SERVICE OF ANY PROCESS, SUMMONS, NOTICE OR
DOCUMENT BY REGISTERED MAIL ADDRESSED TO SUCH PERSON SHALL BE
EFFECTIVE SERVICE OF PROCESS AGAINST SUCH PERSON FOR ANY SUIT,
ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT. EACH PARTY AGREES
THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY
OTHER MANNER PROVIDED BY LAW.

 

 

 

47

 

 

 

 

(c)           EACH
PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
SUIT, ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY) DIRECTLY OR INDIRECTLY ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY. EACH PARTY (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

 

Section
23.                                Section
21. Amendments.

 

The
provisions of this Agreement, including the provisions of this
sentence, may not be amended, modified or supplemented, and waivers
or consents to departures from the provisions hereof may not be
given, without the express prior written consent of the Borrower,
the Requisite Lenders and, to
the extent that such amendment, modification, supplement, waivers
or consents relate to the FCCR Defaults, the Requisite Tranche
A/Revolving Lenders; provided that any date or
deadline herein (including, without limitation, any extension of
the Forbearance Period) may be extended by the Requisite Lenders and, to the extent the
FCCR Defaults are continuing, the Requisite Tranche A/Revolving
Lenders and such extension may be communicated by email to counsel
to the Credit Parties.

 

Section
24.                                Section
22. Further
Assurances.

 

Each of
the Credit Parties hereby agrees to execute and deliver from time
to time such other documents and take such other actions as may be
reasonably necessary in order to effectuate the terms
hereof.

 

Section
25.                                Section
23. Entire
Agreement.

 

This
Agreement, the Credit Agreement and the other Credit Documents
constitute the entire agreement of the Parties with respect to the
subject matter hereof, and supersede all other prior negotiations,
understandings or agreements with respect to the subject matter
hereof. This Agreement shall be deemed a Credit
Document.

 

Section
26.                                Section
24. Counterparts.

 

This
Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, and all of which taken together
shall constitute one and the same instrument. Delivery of an
executed counterpart of a signature page to this Agreement by
electronic mail (e.g. “.pdf” or “.tif”)
shall be effective as delivery of an original executed counterpart
of this Agreement.

 

Section
27.                                Section
25. Section
Titles.

 

The
section and subsection titles contained in this Agreement are
included for convenience only, shall be without substantive meaning
or content of any kind whatsoever, and are not a part of the
agreement between the Credit Parties, on the one hand, and the
Forbearing Lenders, on the other hand. Any reference in this
Agreement to any “Section” refers, unless the context
otherwise indicates, to a section of this Agreement.

 

Section
28.                                Section
26. 
Requisite
Lender Direction.

 

The
Lenders party hereto (which constitute the Requisite Lenders and
the Requisite Tranche A/Revolving Lenders) hereby (i) instruct the
Administrative Agent to comply with the Forbearance to the extent
specified herein and to take the other actions (or refrain from
acting), in each case, as expressly contemplated hereby and (ii)
acknowledge and agree that (x) the direction set forth in this
Section
26 
Section 27 constitutes
a direction from the Requisite Lenders and the Requisite Tranche
A/Revolving Lenders under the provisions of Section 9 of the Credit
Agreement and (y) Sections 9.3 and 9.6 of the Credit Agreement
shall apply to any and all actions (and inactions) taken by the
Administrative Agent in accordance with such
direction.

 

[Signature pages follow]

 

 

48

 

IN
WITNESS WHEREOF, the
parties hereto have executed and delivered this Agreement as of the
day and year first above written.

 

	
 

	

FUSION CONNECT, INC.,

as
Borrower

	
 

	
 

	
 

	

By:______________________________

	
 

	

Name:
James P. Prenetta, Jr.

	
 

	

Title:
Executive Vice President and General Counsel

	
 

	
 

	
 

	

FUSION NBS ACQUISITION CORP.

FUSION LLC

FUSION BCHI ACQUISITION LLC

FUSION CB HOLDINGS, INC.

FUSION CLOUD SERVICES LLC

FUSION COMMUNICATIONS, LLC

FUSION MANAGEMENT SERVICES LLC

FUSION TELECOM, LLC

FUSION TEXAS HOLDINGS, INC.

FUSION TELECOM OF KANSAS, LLC

FUSION TELECOM OF OKLAHOMA, LLC

FUSION TELECOM OF MISSOURI, LLC

FUSION TELECOM OF TEXAS LTD., L.L.P.

BIRCAN HOLDINGS, LLC

FUSION PM HOLDINGS, INC.

FUSION MPHC HOLDING CORP.

FUSION CLOUD COMPANY LLC

FUSION MPHC GROUP, INC.,

as
Guarantor Subsidiaries

	
 

	
 

	
 

	

By:
______________________________

	
 

	

Name:
James P. Prenetta, Jr.

	
 

	

Title:
Executive Vice President and General Counsel

 

 

PRIMUS MANAGEMENT ULC

BIRCAN MANAGEMENT ULC,

as the
Canadian Subsidiaries

 

	
 

	

By:
______________________________

	
 

	

Name:
James P. Prenetta, Jr.

Title:
Executive Vice President and General Counsel

 

 

[Signature
Page to Forbearance Agreement (First Lien)]

 

 

 

 

49

 

 

	
 

	

[●], as Forbearing Lender

 

	
 

	

By:

	
 

	
 

	
 

	

Name:

	
 

	
 

	
 

	

Title:

	
 

	
 

 

 

 

 

 

 

 

 

[Signature
Page to Forbearance Agreement (First Lien)]

 

 

50

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