Document:

Ex. 10.2 Ciena  DB - Fourth Amendment to Credit Agreement (Final

OMNIBUS FOURTH AMENDMENT TO CREDIT AGREEMENT
AND FIRST AMENDMENT TO U.S. PLEDGE AGREEMENT AND CANADIAN PLEDGE AGREEMENT

This OMNIBUS FOURTH AMENDMENT TO CREDIT AGREEMENT AND FIRST AMENDMENT TO U.S. PLEDGE AGREEMENT AND CANADIAN PLEDGE AGREEMENT (this “Omnibus Amendment”) is entered into as of April 15, 2015, by and among Ciena Corporation, a Delaware corporation (the “Company”), Ciena Communications, Inc., a Delaware corporation (“CCI”), Ciena Government Solutions, Inc., a Delaware corporation (“CGSI” and, together with the Company and CCI, collectively, the “U.S. Borrowers”), Ciena Canada, Inc., a corporation incorporated under the laws of Canada (the “Canadian Borrower” and, together with the U.S. Borrowers, collectively, the “Borrowers”), Deutsche Bank AG New York Branch, as administrative agent and collateral agent (in such capacities, the “Administrative Agent” and the “Collateral Agent”, respectively) and the Lenders (as defined in the Credit Agreement referred to below) party hereto.  Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Credit Agreement (as defined below). 

RECITALS
WHEREAS, the Borrowers, the Lenders, Deutsche Bank AG New York Branch, as Administrative Agent and as Collateral Agent, and the other agents party thereto are parties to that certain ABL Credit Agreement, dated as of August 13, 2012 (as amended by that certain First Amendment to Credit Agreement, dated as of August 24, 2012, by that certain Omnibus Second Amendment to Credit Agreement and First Amendment to U.S. Security Agreement, Canadian Security Agreement, U.S. Pledge Agreement, U.S. Guaranty and Canadian Guaranty, dated as of March 5, 2013, and by that certain Third Amendment to Credit Agreement dated July 15, 2014, the “Credit Agreement”), pursuant to which, among other things, the Lenders have agreed, subject to the terms and conditions set forth therein, to make certain loans and other financial accommodations to the Borrowers; 
WHEREAS, the U.S. Credit Parties and the Collateral Agent are parties to that certain Amended and Restated Pledge Agreement, dated as of July 15, 2014 (the “U.S. Pledge Agreement”); 
WHEREAS, the Company and the Collateral Agent are parties to that certain Canadian ABL Pledge Agreement, dated as of December 12, 2014 (the “Canadian Pledge Agreement”); and
WHEREAS, the Borrowers, the other Credit Parties, the Administrative Agent, the Collateral Agent and each Lender party hereto desire to amend the Credit Agreement, the U.S. Pledge Agreement and the Canadian Pledge Agreement, as provided herein.
NOW, THEREFORE, in consideration of the foregoing, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:  
SECTION 1.  Amendments to Credit Agreement.  
(a)Section 1.01 of the Credit Agreement is hereby amended by inserting the following definition immediately following the definition of “Other Taxes”:

“Ottawa Capitalized Lease” shall mean collectively, (i) that certain lease agreement, dated as of April 15, 2015, and (ii) that certain lease agreement, dated as of October 23, 2014, as amended on  April 15, 2015, each between Innovation Blvd II Limited (and its permitted successors and assigns) and Ciena Canada, Inc. (and its permitted successors and assigns), as amended, supplemented or otherwise modified from time to time, in connection with the multi-building complex located at Innovation Drive, Ottawa, Ontario (as more fully described therein).

(b)Section 10.01 of the Credit Agreement is hereby amended as follows:

1.deleting the text “and” at the end of clause (v) thereof;

2.deleting the “.” at the end of clause (w) thereof and inserting the text “; and” in lieu thereof; 

3.inserting the following new clause (x) immediately following clause (w) thereof:

“(x) Liens upon assets of the Company or any of its Subsidiaries subject to the Ottawa Capitalized Lease, and any renewals, replacements, refinancings or extensions thereof for the same or a lesser amount (plus the sum of (1) accrued and unpaid interest and fees thereon and (2) customary fees and expenses relating to such renewal, replacement, refinancing or extension), to the extent such Ottawa Capitalized Lease or renewals, replacements, refinancings or extensions thereof are permitted by Section 10.04(p); provided that (i) such Liens only serve to secure the payment of Indebtedness arising under such Ottawa Capitalized Lease or renewal, replacement, refinancing or extension thereof and (ii) the Liens encumbering the assets giving rise to the Ottawa Capitalized Lease or renewal, replacement, refinancing or extension thereof do not encumber any other asset of the Company or any of its Subsidiaries.”; and
4.replacing the words “clauses (c), (f), (g), (i), (m) and (t)” in the last paragraph of Section 10.01 with the words “clauses (c), (f), (g), (i), (m), (t) and (x)”.

(c)Section 10.02(f) of the Credit Agreement is hereby amended and restated in its entirety as follows:

“(f)    the Company and its Subsidiaries may lease (as lessee) or license (as licensee) real or personal property (so long as any such lease or license does not create a Capitalized Lease except to the extent permitted by Section 10.04(d) or (p))”
(d)Section 10.04 of the Credit Agreement is hereby amended as follows:

		
	1.
	deleting the text “and” at the end of clause (n) thereof;

		
	2.
	deleting the “.” at the end of clause (o) thereof and inserting the text “; and” in lieu thereof; and

		
	3.
	inserting the following new clause (p) immediately following clause (o) thereof:

“(p)    Indebtedness of the Company and its Subsidiaries evidenced by the Ottawa Capitalized Lease, and any extension, renewal, replacement or refinancing thereof as permitted by Section 10.01(x); provided, however, that in no event shall the sum of the aggregate principal amount of all such Indebtedness permitted by this clause (p) exceed Cdn.$100,000,000 at any time outstanding.”
(e)Section 10.05(r) of the Credit Agreement is hereby amended and restated in its entirety
 as follows:

“(r)    deposits of cash made in the ordinary course of business to secure the performance of operating leases or the Ottawa Capitalized Lease and any renewals, replacements, refinancings or extensions thereof;”

(f)Section 10.09 of the Credit Agreement is hereby amended as follows:

		
	1.
	replacing clause (viii) thereof in its entirety as follows:

“(viii) restrictions on the transfer of any asset subject to a Lien permitted by Section 10.01(c), (e), (f), (g), (l), (m), (n), (t), (u), (v) or (x)”
		
	2.
	inserting the text “or 10.04(p)” immediately after the text “10.04(d)” in clause (ix)(B) thereof; and.

		
	3.
	inserting the following new clause (xii) immediately following clause (xi) thereof:

“and (xii) in the case of clause (c) above, the restrictions contained in the Ottawa Capitalized Lease as in effect on the original date thereof and any renewals, replacements, refinancings or extensions thereof, so long as such restrictions are not broader than those contained in the Ottawa Capitalized Lease as in effect on the original date thereof”
(g)    Clause (iv) of the proviso in Section 13.07(a) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 “(iv) notwithstanding anything in the foregoing to the contrary, for purposes of determining compliance with Section 5.02(b) or (c), Section 10 or any other incurrence or expenditure test set forth herein with respect to any amount in a currency other than U.S. Dollars, no Default or Event of Default shall be deemed to have occurred solely as a result of changes in rates of currency exchange occurring after the time of such incurrence or expenditure or receipt of any such amount (so long as such incurrence or expenditure or receipt of any such amount, at the time incurred, made, received or acquired, was permitted hereunder).  For purposes of determining compliance with any U.S. Dollar-denominated restriction or exception provided for in Section 5.02(b) or (c), Section 10 or any other incurrence or expenditure test set forth herein, the U.S. Dollar-equivalent amount thereof denominated in a foreign currency shall be calculated based on the relevant currency exchange rate in effect on the date of such incurrence or expenditure or receipt of any such amount, or first committed, in the case of revolving credit debt; provided that if any Indebtedness otherwise permitted to be incurred hereunder is incurred to extend, replace, refund, refinance, renew or defease other Indebtedness denominated in a foreign currency, and such extension, replacement, refunding, refinancing, renewal or defeasance would cause the applicable U.S. Dollar-denominated restriction to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such extension, replacement, refunding, refinancing, renewal or defeasance, such U.S. Dollar-denominated restriction shall be deemed not to have been exceeded so long as the principal amount of such refinancing Indebtedness does not exceed the principal amount of such Indebtedness being extended, replaced, refunded, refinanced, renewed or defeased, plus the aggregate amount of fees, underwriting discounts, premiums (including tender premiums) and other reasonable costs and expenses (including original issue discount) incurred in connection with such refinancing.”
SECTION 2.  Amendment to U.S. Pledge Agreement.  
		
	(a)
	Clause (d) of Section 18(a)(iv) of the U.S. Pledge Agreement is hereby amended and restated in its entirety as follows:

“(d) except for (i) compliance with or as may be required by applicable securities laws and (ii) the consent of the landlord under the Ottawa Capitalized Lease, or any renewal, replacement, refinancing or extension thereof, to any Transfer (as defined in the Ottawa Capitalized Lease as in effect on the original date thereof) (or similar term contained in any renewal, replacement, refinancing or extension of the Ottawa Capitalized Lease) not permitted by the terms thereof, the exercise by the Pledgee of any of its rights or remedies provided herein”

SECTION 3.  Amendment to Canadian Pledge Agreement.  
		
	(a)
	Clause (d) of Section 18(a)(iv) of the Canadian Pledge Agreement is hereby amended and restated in its entirety as follows:

“(d) except for (i) compliance with or as may be required by applicable securities laws and (ii) the consent of the landlord under the Ottawa Capitalized Lease, or any renewal, replacement, refinancing or extension thereof, to any Transfer (as defined in the Ottawa Capitalized Lease as in effect on the original date thereof) (or similar term contained in any renewal, replacement, refinancing or extension of the Ottawa Capitalized Lease) not permitted by the terms thereof, the exercise by the Collateral Agent of any of its rights or remedies provided herein”
SECTION 4.    Representations and Warranties.  In order to induce the Administrative Agent, the Collateral Agent and the undersigned Lenders to enter into this Omnibus Amendment, each of the Company and each other Borrower hereby represents and warrants that:
(a)    As of the Omnibus Amendment Effective Date, (as hereinafter defined), both immediately before and immediately after giving effect to this Omnibus Amendment, (a) there shall exist no Default or Event of Default and (b) all representations and warranties contained in the Credit Agreement and in the other Credit Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on the Omnibus Amendment Effective Date (it being understood and agreed that (x) any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date and (y) any representation or warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be true and correct in all respects as of any such date).

(b)    Each Credit Party has the Business power and authority to execute, deliver and perform the terms and provisions of this Omnibus Amendment and has taken all necessary Business action to authorize the execution, delivery and performance by it of this Omnibus Amendment.  Each Credit Party has duly executed and delivered this Omnibus Amendment, and this Omnibus Amendment constitutes its legal, valid and binding obligation enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law).

(c)    Neither the execution, delivery or performance by any Credit Party of this Omnibus Amendment, nor compliance by it with the terms and provisions thereof, (i) will contravene any provision of any law, statute, rule or regulation or any order, writ, injunction or decree of any court or Governmental Authority, (ii) will conflict with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any Lien (except pursuant to the Security Documents) upon any of the property or assets of any Credit Party or any of its Subsidiaries pursuant to the terms of any material indenture, mortgage, deed of trust, credit agreement or loan agreement, or any other material agreement, contract or instrument, in each case to which any Credit Party or any of its Subsidiaries is a party or by which it or any of its property or assets is bound or to which it may be subject including, without limitation, the Existing Convertible Notes Indentures, or (iii) will violate any provision of the certificate or articles of incorporation, certificate of formation, limited liability company agreement or by-laws (or equivalent organizational documents), as applicable, of any Credit Party or any of their respective Subsidiaries.

SECTION 5.    Effectiveness.      This Omnibus Amendment shall become effective on the date (the “Omnibus Amendment Effective Date”) when the Company, each other Borrower, each other Guarantor, the Administrative Agent, the Collateral Agent and each Lender shall have signed a counterpart hereof (whether the same or different counterparts) and shall have delivered (including by way of facsimile or other electronic transmission) the same to the Administrative Agent, c/o White & Case LLP, 633 West Fifth Street, Suite 1900, Los Angeles, California 90071-2007 Attention: Nicole Rodger (facsimile number: (213) 452-2329 / e-mail address: nrodger@whitecase.com).

SECTION 6.    Reference To and Effect Upon the Credit Documents.
(a)    From and after the Omnibus Amendment Effective Date, (i) the term “Agreement” in the Credit Agreement, and all references to the Credit Agreement in any other Credit Document, shall mean the Credit Agreement as modified hereby, (ii) the term “Agreement” in the U.S. Pledge Agreement, and all references to the U.S. Pledge Agreement in any other Credit Document, shall mean the U.S. Pledge Agreement as modified hereby, (iii) the term “Agreement” in the Canadian Pledge Agreement, and all references to the Canadian Pledge Agreement in any other Credit Document, shall mean the Canadian Pledge Agreement as modified hereby, and (iv) this Omnibus Amendment shall constitute a “Credit Document” for all purposes of the Credit Agreement and the other Credit Documents.   

(b)    This Omnibus Amendment is limited as specified and shall not constitute a modification, acceptance or waiver of any other provision of the Credit Agreement or any other Credit Document or a novation of existing obligations and liabilities under the Credit Documents. The Credit Agreement and each of the other Credit Documents, as specifically amended by this Omnibus Amendment, are and shall  continue to be in full force and effect and are hereby in all respects ratified and confirmed.

SECTION 7.    Counterparts, Etc.  This Omnibus Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed an original, but all such counterparts shall constitute one and the same instrument, and all signatures need not appear on any one counterpart. Any party hereto may execute and deliver a counterpart of this Omnibus Amendment by delivering by facsimile or other electronic transmission a signature page of this Omnibus Amendment signed by such party, and any such facsimile or other electronic signature shall be treated in all respects as having the same effect as an original signature. Section headings in this Omnibus Amendment are included herein for convenience of reference only and shall not constitute part of this Omnibus Amendment for any other purpose.  A complete set of counterparts of this Omnibus Amendment shall be lodged with the Borrowers and Administrative Agent.
SECTION 8.    Governing Law. This Omnibus Amendment and the rights and obligations of the parties under this Omnibus Amendment shall be governed by, and construed and interpreted in accordance with, the law of the State of New York or, solely to the extent relating to the Canadian Pledge Agreement, the law of the Province of Ontario.

[Signature Pages to follow]

IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute and deliver this Omnibus Amendment as of the date first above written. 
    
	
		
	 
	CIENA CORPORATION

	 
	

By: /s/ Elizabeth A. Dolce
      Name: Elizabeth A. Dolce
      Title:  Vice President and Treasurer

	 
	 

	 
	CIENA COMMUNICATIONS, INC.

	 
	

By: /s/ Elizabeth A. Dolce
      Name: Elizabeth A. Dolce
      Title:  Vice President and Treasurer

	 
	 

	 
	CIENA GOVERNMENT SOLUTIONS, INC.

	 
	

By: /s/ Elizabeth A. Dolce
      Name: Elizabeth A. Dolce
      Title:  Vice President and Treasurer

	 
	 

	 
	CIENA CANADA, INC.

	 
	

By: /s/ Elizabeth A. Dolce
      Name: Elizabeth A. Dolce
      Title:  Vice President and Treasurer

	 
	 

	
		
	 
	DEUTSCHE BANK AG NEW YORK BRANCH,
as Administrative Agent, as Collateral Agent and as a Lender

	 
	

By: /s/ Anca Trifan                   
      Name:   Anca Trifan
      Title:  Managing Director

	 
	

By: /s/ Dusan Lazarov              
      Name:  Dusan Lazarov
      Title:  Director
 

	
		
	 
	SIGNATURE PAGE TO OMNIBUS FOURTH AMENDMENT to Credit Agreement AND FIRST AMENDMENT TO U.S. PLEDGE AGREEMENT AND CANADIAN PLEDGE AGREEMENT, DATED AS OF THE DATE FIRST WRITTEN ABOVE, AMONG CIENA CORPORATION, CIENA COMMUNICATIONS, Inc., CIENA CANADA, INC., the Lenders party THERETO AND DEUTSCHE BANK AG NEW YORK BRANCH, as ADMINISTRATIVE AGENT AND AS COLLATERAL Agent 

	 
	NAME OF INSTITUTION:

Bank of America, N.A.

By: John W. Getz              
Name:   John W. Getz
Title:  SVP

	
		
	 
	SIGNATURE PAGE TO OMNIBUS FOURTH AMENDMENT to Credit Agreement AND FIRST AMENDMENT TO U.S. PLEDGE AGREEMENT AND CANADIAN PLEDGE AGREEMENT, DATED AS OF THE DATE FIRST WRITTEN ABOVE, AMONG CIENA CORPORATION, CIENA COMMUNICATIONS, Inc., CIENA CANADA, INC., the Lenders party THERETO AND DEUTSCHE BANK AG NEW YORK BRANCH, as ADMINISTRATIVE AGENT AND AS COLLATERAL Agent 

	 
	NAME OF INSTITUTION:

Wells Fargo Bank, National Association

By: Tony Leadbetter              
Name:   Tony Leadbetter
Title:  Duly Authorized Signatory

	
		
	 
	SIGNATURE PAGE TO OMNIBUS FOURTH AMENDMENT to Credit Agreement AND FIRST AMENDMENT TO U.S. PLEDGE AGREEMENT AND CANADIAN PLEDGE AGREEMENT, DATED AS OF THE DATE FIRST WRITTEN ABOVE, AMONG CIENA CORPORATION, CIENA COMMUNICATIONS, Inc., CIENA CANADA, INC., the Lenders party THERETO AND DEUTSCHE BANK AG NEW YORK BRANCH, as ADMINISTRATIVE AGENT AND AS COLLATERAL Agent 

	 
	NAME OF INSTITUTION:

Wells Fargo Capital Finance
Corporation Canada

By: David G. Phillips               
Name:   David G. Phillips
Title:  Senior Vice President,
           Credit Officer, Canada

	
		
	 
	SIGNATURE PAGE TO OMNIBUS FOURTH AMENDMENT to Credit Agreement AND FIRST AMENDMENT TO U.S. PLEDGE AGREEMENT AND CANADIAN PLEDGE AGREEMENT, DATED AS OF THE DATE FIRST WRITTEN ABOVE, AMONG CIENA CORPORATION, CIENA COMMUNICATIONS, Inc., CIENA CANADA, INC., the Lenders party THERETO AND DEUTSCHE BANK AG NEW YORK BRANCH, as ADMINISTRATIVE AGENT AND AS COLLATERAL Agent 

	 
	NAME OF INSTITUTION:

Morgan Stanley Bank N.A.

By: Jonathan Kerner           
Name:   Jonathan Kerner
Title:  Authorized Signatory

	
		
	 
	SIGNATURE PAGE TO OMNIBUS FOURTH AMENDMENT to Credit Agreement AND FIRST AMENDMENT TO U.S. PLEDGE AGREEMENT AND CANADIAN PLEDGE AGREEMENT, DATED AS OF THE DATE FIRST WRITTEN ABOVE, AMONG CIENA CORPORATION, CIENA COMMUNICATIONS, Inc., CIENA CANADA, INC., the Lenders party THERETO AND DEUTSCHE BANK AG NEW YORK BRANCH, as ADMINISTRATIVE AGENT AND AS COLLATERAL Agent 

	 
	NAME OF INSTITUTION:
JPMorgan Chase Bank, N.A., Toronto Branch

By: Michael N. Tam           
Name:   Michael N. Tam
Title:  Senior Vice President

	
		
	 
	SIGNATURE PAGE TO OMNIBUS FOURTH AMENDMENT to Credit Agreement AND FIRST AMENDMENT TO U.S. PLEDGE AGREEMENT AND CANADIAN PLEDGE AGREEMENT, DATED AS OF THE DATE FIRST WRITTEN ABOVE, AMONG CIENA CORPORATION, CIENA COMMUNICATIONS, Inc., CIENA CANADA, INC., the Lenders party THERETO AND DEUTSCHE BANK AG NEW YORK BRANCH, as ADMINISTRATIVE AGENT AND AS COLLATERAL Agent 

	 
	NAME OF INSTITUTION:
JPMorgan Chase Bank, NA

By: Robert A. Kaulius         
Name:   Robert A. Kaulius
Title:  Authorized OfficerEx. 10.3 Ciena 5050 Innovation Blvd Lease Amendment

AMENDMENT NO. 1
This Amendment No. 1 (this “Amendment”) is executed as of April 15, 2015, between INNOVATION BLVD II LIMITED, a Nova Scotia limited company (“Landlord”), and CIENA CANADA, INC., a federal corporation pursuant to the Canada Business Corporations Act (“Tenant”), for the purpose of amending the Lease Agreement between Landlord and Tenant dated October 23, 2014 (the “Lease”).  Capitalized terms used herein but not defined shall be given the meanings assigned to them in the Lease.
RECITALS:
Pursuant to the terms of the Lease, Tenant is currently leasing a portion of, and will lease, all of the rentable square feet in the office building commonly known as 5050 Innovation Drive and whose street address is 5050 Innovation Drive, Ottawa, Ontario.  Landlord and Tenant have agreed to amend the Lease on the terms and conditions contained herein.
AGREEMENTS:
For valuable consideration, whose receipt and sufficiency are acknowledged, Landlord and Tenant agree as follows:
1.    Consent to Declaration of Connecting Structure Easement.  Tenant hereby consents to the terms and conditions of the Declaration of Connecting Structure Easement dated on or about the date hereof by Landlord’s Affiliate, Innovation Blvd. I, LLC, a Delaware limited liability company (the “Connecting Structure Easement”).  The Lease shall be subject and subordinate to the Connecting Structure Easement and, to the extent that Landlord or the owner of the Land is required to comply with the terms and conditions of the Connecting Structure Easement, Tenant shall also comply with such terms and conditions.  From and after the date hereof, the “Project” shall include links and enclosed pathways connecting the Building and the new buildings to be constructed by Landlord under the New Buildings Lease to the lot line of the Land.

2.    Parking Easement Agreement.  Tenant hereby consents to the terms and conditions of the Parking Easement Agreement dated on or about the date hereof between Landlord’s Affiliates, Innovation Blvd. I, LLC, a Delaware limited liability company, and Innovation Blvd. II, LLC, a Delaware limited liability company (the “Parking Easement”).  The Lease shall be subject and subordinate to the Parking Easement and, to the extent that Landlord or the owner of the Land is required to comply with the terms and conditions of the Parking Easement, Tenant shall also comply with such terms and conditions.  Subject to Tenant’s reimbursement rights pursuant to the Parking Easement, all costs incurred by Landlord with respect to the Parking Easement shall be included in Operating Costs except to the extent excluded by Section 4.2.2 of the Lease. 

3.    Legal Description of the Land.  Once the subdivision of the Land as referenced in Section 4.2.2 of the Lease is finalized, Tenant shall, within ten business days following Landlord’s request, enter into amendments to the Lease and other documents executed in connection therewith to replace the legal description of the Land attached as Exhibit C to the Lease (or such other ancillary document) with the new legal description following such subdivision.

4.    Term.  To the extent that the Term of the Lease is not coterminous with the lease term of the New Buildings Lease, Landlord and Tenant shall execute an amendment to this Lease (if the Term of this Lease expires prior to the lease term of the New Buildings Lease) within 30 days following the Commencement Date (as defined in the New Buildings Lease) extending the Term to be coterminous with the lease term of the New Buildings Lease and otherwise on the same terms and conditions provided in the Lease.

5.    Change of Control.  The definition of Change of Control in Section 10.1 of the Lease is amended and restated as follows:
 “Change of Control” means, in the case of any corporation or partnership, the transfer or issue by sale, assignment, subscription, transmission on death, mortgage, charge, security interest, operation of law (including amalgamation) or otherwise (including, without limitation, any change in the constitution of a partnership) of any shares, voting rights, securities or interests which results in any change in the effective Control of such corporation or partnership, unless:  (A) such change occurs as a result of trading in the securities of an entity listed on a recognized stock exchange in Canada, the United States or on any other recognized stock exchange; and (B) Landlord receives assurances reasonably satisfactory to it that such change will not detrimentally affect the financial capacity of such entity or the ability of such entity to conduct business, provided there shall be a continuity of the business of such entity notwithstanding such Change of Control.

6.    Permitted Transfers.  Section 10.9 of the Lease is amended and restated as follows:

10.9    Permitted Transfers.  Notwithstanding Section 10.1, a Transfer may occur to the following types of entities (a “Permitted Transferee”) or pursuant to the following types of transactions (each a “Permitted Transfer”) without the consent of Landlord, provided that Tenant shall not enter into a series of transactions as a means of subverting the terms of this Section 10.9:
10.9.1    an Affiliate of Tenant or Guarantor, but only so long as such transferee remains an Affiliate of Tenant or Guarantor;
10.9.2    any corporation, limited partnership, limited liability partnership, limited liability company or other business entity which is not an Affiliate of Tenant or Guarantor in which or with which Tenant, or its corporate successors or assigns, is merged or consolidated, in accordance with applicable statutory provisions governing merger and consolidation of business entities, so long as (1) Tenant’s obligations hereunder are assumed by the entity surviving such merger or created by such consolidation; (2) the Tangible Net Worth of Guarantor immediately following the applicable transaction (based on pro forma financial information available immediately before the applicable transaction and calculated as if the subject transactions were completed) is equal to or greater than the average Tangible Net Worth of Guarantor for the preceding 12 fiscal quarters immediately before the applicable transaction; (3) the Corporate Debt Rating of Guarantor immediately following the applicable transaction (which may be based on the anticipated Corporate Debt Rating issued by S&P or Moody’s before the applicable transaction as if the subject transactions were completed) is equal to or greater than the Corporate Debt Rating of Guarantor immediately before the applicable transaction; and (4) the proposed transferee is an Affiliate of Guarantor following the applicable transaction;
10.9.3    any corporation, limited partnership, limited liability partnership, limited liability company or other business entity which is not an Affiliate of Tenant or Guarantor acquiring all or substantially all of Tenant’s assets (whether directly via asset purchase or indirectly via a direct or indirect Change of Control of Tenant), so long as (1) Tenant’s obligations hereunder are assumed by the entity acquiring such assets; (2) the Tangible Net Worth of Guarantor immediately following the applicable transaction (based on pro forma financial information available immediately before the applicable transaction and calculated as if the subject transactions were completed) is equal to or greater than the average Tangible Net Worth of Guarantor for the preceding 12 fiscal quarters immediately before the applicable transaction; (3) the Corporate Debt Rating of Guarantor immediately following the applicable transaction (which may be based on the anticipated Corporate Debt Rating issued by S&P or Moody’s before the applicable transaction as if the subject transactions were completed) is equal to or greater than the Corporate Debt Rating of Guarantor immediately before the applicable transaction; and (4) the proposed transferee is an Affiliate of Guarantor following the applicable transaction; or
10.9.4    (1) an initial or subsequent public offering or distribution of equity or debt securities by Tenant, Guarantor or any Affiliate of Tenant or Guarantor, and/or (2) the sale of equity or convertible debt securities of Tenant, Guarantor or any Affiliate of Tenant or Guarantor in any transaction, so long as (i) the Tangible Net Worth of Guarantor immediately following the applicable transaction (based on pro forma financial information available immediately before the applicable transaction and calculated as if the subject transactions were completed) is equal to or greater than the average Tangible Net Worth of Guarantor for the preceding 12 fiscal quarters immediately before the applicable transaction and (ii) the Corporate Debt Rating of Guarantor immediately following the applicable transaction (which may be based on the anticipated Corporate Debt Rating issued by S&P or Moody’s before the applicable transaction as if the subject transactions were completed) is equal to or greater than the Corporate Debt Rating of Guarantor immediately before the applicable transaction.
Tenant shall promptly notify Landlord of any such Permitted Transfer (subject to the confidentiality qualifications noted above).  Tenant shall remain liable for the performance of all of the obligations of Tenant hereunder, or if Tenant no longer exists because of a merger, consolidation, or acquisition, the surviving or acquiring entity shall expressly assume in writing the obligations of Tenant hereunder.  Additionally, the Permitted Transferee shall comply with all of the terms and conditions of this Lease, including the Permitted Use, and the use of the Premises by the Permitted Transferee may not violate any other agreements affecting the Premises or the Project or the related complex, Landlord or other tenants of the related complex of record as of the Lease 

Date.  No later than ten days after the effective date of any Permitted Transfer, Tenant agrees to furnish Landlord with (A) copies of the instrument effecting any of the foregoing Transfers, (B) documentation establishing Tenant’s satisfaction of the requirements set forth above applicable to any such Transfer, and (C) evidence of insurance as required under this Lease with respect to the Permitted Transferee.  The occurrence of a Permitted Transfer shall not waive Landlord’s rights as to any subsequent Transfers, and any subsequent Transfer by a Permitted Transferee shall be subject to the terms of this Section 10.  The right to Transfer to an Affiliate pursuant to Subsection 10.9.1 shall be subject to the condition that such Permitted Transferee remains an Affiliate of Tenant and Guarantor and that, within 30 days after such Transfer being effected, both Tenant and such Permitted Transferee must enter into an agreement with Landlord, in a form satisfactory to Landlord, Tenant and such Permitted Transferee, each acting reasonably, that if such Permitted Transferee ceases to be an Affiliate of Tenant and Guarantor, it shall so notify Landlord in writing within ten days after such event and, upon the written request of Landlord, transfer, assign, set over and/or re-assign this Lease and its interest in the Premises, as applicable, to Tenant or, subject to complying with this condition, another Affiliate of Tenant and Guarantor.  As a condition to a Permitted Transfer, at Landlord’s request, Guarantor shall ratify and confirm in writing to Landlord the Guarantee executed by Guarantor for the benefit of Landlord and acknowledge in a written instrument reasonably acceptable to Landlord that the obligations of the proposed transferee shall be included as part of the obligations guaranteed by Guarantor under such Guarantee.  As used herein, “Tangible Net Worth” means the excess of total assets over total liabilities, in each case as determined in accordance with generally accepted accounting principles consistently applied (“GAAP”), excluding, however, from the determination of total assets all assets which would be classified as intangible assets under GAAP including goodwill, licenses, patents, trademarks, trade names, copyrights, and franchises, as evidenced by financial statements audited by a certified public accounting firm reasonably acceptable to Landlord.  “Corporate Debt Rating” shall mean either a general corporate debt rating or an unsecured corporate debt rating by either Standard & Poor’s Corporation (“S&P”) or Moody’s Investor Service (“Moody’s”).
7.    Termination of Lease.  If Landlord terminates the Lease pursuant to Section 18.1, Tenant shall pay to Landlord(a) all damages, costs and expenses incurred by Landlord as a result of such Event of Default or in efforts to enforce any of Landlord’s rights or remedies, including all Rent for the portion of the Term following such termination and (b) all amounts due under Section 19.1 of the Lease.

8.    Tenant Secured Financing.  Section 20 of the Lease is amended and restated as follows:

20.    Tenant Secured Financing.  For the avoidance of doubt and notwithstanding any other provision of this Lease (including Sections 10.1 and 10.9 to which this provision is paramount), in no event shall any pledge, charge, mortgage, lien or any other grant of security or similar instrument in regards to any securities, stock, shares, assets or other interests of Tenant, Guarantor, any Affiliate of Guarantor or any other entity, given in order to secure any indebtedness (a “Secured Financing”) owed to one or more third party lenders or bondholders of Tenant, Guarantor or any Affiliate thereof (the “Secured Lenders”) constitute or be deemed to be a Transfer; provided, however, and notwithstanding the foregoing, (a) the exercise of any rights under any such pledge, charge, mortgage, lien or any other grant of security or similar instrument may constitute a Transfer and (b) pursuant to Section 10.2, in no event shall any Tenant Party grant, or permit to exist, any leasehold mortgage or any other charge of the Premises of any nature.  Without limiting, and in furtherance of, the foregoing, Tenant shall be permitted without requiring the consent of Landlord to grant a security interest or chattel mortgage over Tenant’s trade fixtures, furniture, equipment and other personal property located in or about the Premises to any Secured Lenders (including any agent, trustee or representative acting on behalf of any such Secured Lenders) (collectively, the “Secured Party”) that from time to time has provided Secured Financing that is secured, in whole or in part, by, among other things, the trade fixtures, furniture, equipment or other personal property of Tenant located in or about the Premises.  Upon written request of any Secured Party and at Tenant’s sole cost, Landlord shall enter into an agreement (in this Section 20, a “waiver of distress agreement”) with such Secured Party in a form that is satisfactory to Landlord, Tenant and such Secured Party, each acting reasonably.  Such waiver of distress agreement shall contain: (1) a waiver of distress or other liens by Landlord in favour of such Secured Party; (2) a right for such Secured Party to enter into the Premises to enforce its rights with respect to Tenant’s trade fixtures, furniture, equipment and other personal property located in or about the Premises over which such Secured Party has security, which right shall be upon such commercially reasonable terms and conditions as the parties agree, acting reasonably, provided that the Secured Party shall promptly repair any and all damage to the Premises and/or the Buildings, if any, caused by the Secured Party or its agents or representatives resulting from the removal of such trade fixtures, furniture, equipment and other personal property from the Premises and other parts of the Buildings; and (3) such other commercially reasonable terms and conditions agreed upon by the parties, each acting reasonably.

9.    Surrender of Premises.  From and after the date hereof, clause (c) of Section 21 of the Lease is deleted and replaced with the following:

remove all trade fixtures, furniture (including demountable walls), and personal property placed in the Premises or elsewhere in the Project by a Tenant Party and equipment located in the Premises (it being acknowledged that such trade fixtures, furniture personal property and equipment remains the property of Tenant), in any case provided that such item to be removed is not integral to the operation of the Building’s Structure or the Building’s Systems, and Tenant  shall restore any affected Building’s Systems to a fully operational level consistent with Building standard condition.
10.    Tenant’s Depreciation for Tax Purposes.  The Lease is amended to add the following as a new Section 26.17: 
 
26.17    Tenant’s Depreciation for Tax Purposes.  Notwithstanding any other provision in the Lease or in Exhibit E hereto, it is agreed and understood that, for tax purposes, Tenant shall be deemed the owner of the interior tenant improvements, alterations, installations, equipment, trade fixtures and additions made by Tenant, or made by Landlord on Tenant’s behalf, in each case other than with respect to such items constituting the Building’s Systems or Building’s Structure as described in Section 21 of this Lease, notwithstanding that same may become the property of Landlord immediately upon affixation without compensation therefor to Tenant and Tenant is entitled to all rights of depreciation to the extent to which Tenant is entitled pursuant to the Income Tax Act of Canada or any other applicable Laws.
11.    Estoppel Certificates.  The last sentence of Section 25.5 of the Lease is deleted in its entirety and replaced with the following:  “If Tenant does not deliver to Landlord the certificate signed by Tenant within the required time period under Section 17.3, an Event of Default shall have occurred.”

12.    Cross Default.  Section 25.28 of the Lease is deleted in its entirety and replaced with the following:  “An event of default (beyond any applicable notice, grace and cure periods) under the New Buildings Lease between Landlord or Landlord’s Affiliate and Tenant during the period Landlord or Landlord’s Affiliate owns or leases same shall constitute an Event of Default under this Lease, and any Event of Default under this Lease shall constitute an event of default under the New Buildings Lease between Landlord or Landlord’s Affiliate and Tenant (without any obligation to give Tenant any notice or opportunity to cure period thereunder) during the period Landlord or Landlord’s Affiliate owns or leases same.”

13.    Confidentiality.  Tenant and Landlord each acknowledge that the terms and conditions of the Lease (as amended hereby) are to remain confidential on the same terms and conditions of Section 25.21 of the Lease.  With respect to any public disclosure or reporting requirements, Landlord and Tenant shall not be required to advise such recipients of the confidential nature of the terms and conditions of the Lease.

14.    Brokerage.  Neither Landlord nor Tenant has dealt with any broker or agent in connection with the negotiation or execution of this Amendment.  Tenant and Landlord shall each indemnify the other against all costs, expenses, attorneys’ fees, liens and other liability for commissions or other compensation claimed by any broker or agent claiming the same by, through, or under the indemnifying party.

15.    Ratification.  Tenant hereby ratifies and confirms its obligations under the Lease, and represents and warrants to Landlord, to the best of Tenant’s knowledge after reasonable inquiry, that, as of the date hereof, it has no defenses thereto.  Additionally, Tenant further confirms and ratifies that, as of the date hereof, (a) the Lease is and remains in good standing and in full force and effect, and (b) to the best of Tenant’s knowledge after reasonable inquiry, Tenant has no claims, counterclaims, set-offs or defenses against Landlord arising out of the Lease or in any way relating thereto or arising out of any other transaction between Landlord and Tenant.  Landlord hereby ratifies and confirms its obligations under the Lease and represents and warrants to Tenant that, as of the date hereof, (1) monthly Basic Rent is not more than 30 days past due, and (2) the Lease is and remains in good standing and in full force and effect. As used in this Section 14, “after reasonable inquiry” means telephone inquiry with Tenant’s local office manager located in the Premises.  

16.    Binding Effect; Governing Law.  Except as modified hereby, the Lease shall remain in full effect and this Amendment shall be binding upon Landlord and Tenant and their respective successors and assigns.  If any inconsistency exists or arises between the terms of the Lease and the terms of this Amendment, the terms of this Amendment shall prevail.  This Amendment shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.

17.    Counterparts.  This Amendment may be executed in multiple counterparts, each of which shall be deemed to be an original, and all of such counterparts shall constitute one document.  To facilitate execution of this Amendment, the parties hereto may execute and exchange, by telephone facsimile or electronic mail PDF, counterparts of the signature pages.  Signature pages may be detached from the counterparts and attached to a single copy of this Amendment to physically form one document.

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Executed as of the date first written above.

	
		
	LANDLORD:
	INNOVATION BLVD II LIMITED, a Nova Scotia limited 
company

By:  /s/ John S. Grassi                                                                         
       John S. Grassi

	 
	 

	 
	 

	 
	 

	 
	 

	TENANT:
	CIENA CANADA, INC., a federal corporation pursuant to the
Canada Business Corporations Act

By:  /s/ James E. Moylan, Jr.                                                              
Name:  James E. Moylan, Jr.
Title:  Chief Financial Officer & SVP Finance

	 
	 

	 
	 

	 
	 

	 
	 

CONSENT OF GUARANTOR
By executing this Amendment, the undersigned Guarantor (a) consents to the provisions contained herein, (b) ratifies and confirms the Guaranty executed by Guarantor for the benefit of Landlord, (c) acknowledges that Tenant’s obligations under this Amendment shall be included as a part of the obligations guaranteed by Guarantor under such Guaranty, and (d) acknowledges that, as of the date hereof, Guarantor, to Guarantor’s knowledge, has no defenses, counterclaims, or rights of set-off related to the Guaranty and waives all claims, defenses and rights of set-off thereto that Guarantor may have against Landlord as of the date hereof (if any), whether known or unknown and whether arising under tort, contract, at law or in equity.
Executed as of the date first written above.    
	
		
	 
	CIENA CORPORATION, a Delaware corporation

By:  /s/ James E. Moylan, Jr.                                                              
Name:  James E. Moylan, Jr.
Title:  Chief Financial Officer & SVP Finance

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