Document:

EX-10.16

 Exhibit 10.16 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into on [●], 2019, between HS Spinco, Inc., a Delaware corporation
(the “Company”) and Georgina Wraight (the “Executive” and collectively with the Company, the “Parties”), and shall be effective as of, and contingent on, the closing of the transactions contemplated by the Agreement and
Plan of Merger, dated April 20, 2018, by and among the Company, Henry Schein, Inc., a Delaware corporation, HS Merger Sub, Inc., a Delaware corporation, Direct Vet Marketing Inc., and Shareholder Representative Services LLC (the “Effective
Date”). All references herein to the Company shall include the Company’s subsidiaries, where applicable. 
 WHEREAS, the Parties
desire to enter into this Agreement to reflect the Executive’s position and role in the Company’s business and to provide for the Executive’s employment by the Company with respect to certain of the Company’s subsidiaries, upon
the terms and conditions set forth herein; 
 WHEREAS, the Executive has agreed to certain confidentiality,
non-competition and non-solicitation covenants contained hereunder, in consideration of the benefits provided to the Executive under this Agreement; 

WHEREAS, the Parties understand that the Company will change its name to Covetrus, Inc., a Delaware corporation, prior to the Effective Date;
and 
 WHEREAS, this Agreement replaces and supersedes all previous employment agreements between the Executive and the Company (and any
predecessor thereto). 
 NOW, THEREFORE, in consideration of the premises and of the mutual promises and covenants contained herein, the
Company and the Executive, intending to be legally bound, hereby agree as follows: 
 1.    Employment. 

(a)    Term. This Agreement shall commence on the Effective Date and shall continue until the third anniversary of
the Effective Date, unless sooner terminated pursuant to the terms of this Agreement (the “Term”). The Term shall be automatically extended and renewed for a period of one (1) year from the end of the Term (the “Renewal
Date”) unless either the Company or the Executive gives written notice of non-renewal to the other Party at least sixty (60) days prior to the end of the Term, in which event this Agreement shall
terminate at the end of the Term. Subject to the termination provisions contained herein, if this Agreement is renewed on the Renewal Date for an additional one (1) year period, it will automatically be renewed on the anniversary of the Renewal
Date and each subsequent year thereafter (the “Annual Renewal Date”) for a period of one (1) year, unless either Party gives written notice of non-renewal to the other at least sixty
(60) days prior to any Annual Renewal Date, in which case the Agreement will terminate on the Annual Renewal Date immediately following such notice. 

 (b)    Duties. During the Term, the Executive shall be employed
by the Company as its Senior Vice President and President, Vets First Choice and shall serve the Company faithfully and to the best of the Executive’s ability. The Executive shall devote the Executive’s full business time, attention, skill
and efforts to the performance of the duties required by or appropriate for the Executive’s position with the Company. The Executive shall report to the Chief Executive Officer and shall perform such duties commensurate with the
Executive’s office as contained in the bylaws of the Company or as the Executive shall reasonably be directed by the Chief Executive Officer. The Executive shall perform such services at the Company’s headquarters and the Executive shall
engage in such reasonable business travel as may be required to perform the Executive’s duties. 
 (c)    Best
Efforts. Except for vacation, absences due to temporary illness and absences resulting from Disability (as hereinafter defined), the Executive shall devote the Executive’s business time, attention and energies on a full-time basis to the
performance of the duties and responsibilities referred to in subsection (b) above. The Executive shall not during the Term be engaged in any other business activity which, in the reasonable judgment of the Company, would conflict with the
ability of the Executive to perform the Executive’s duties under this Agreement, whether or not such activity is pursued for gain, profit or other pecuniary advantage. Nothing in this Section shall prevent Executive from engaging in additional
activities in connection with personal investments and community affairs, including serving on corporate, civic, or charitable boards, subject to the approval by the Company, that are not materially inconsistent with Executive’s duties under
this Agreement. 
 2.    Base Salary. During the Term, the Company shall pay to the Executive a base salary of
$400,001 annually, which shall be subject to review and, at the option of the Compensation Committee of the board of directors of the Company (the “Compensation Committee”), subject to increase (such salary, as the same may be increased
from time to time as aforesaid, being referred to herein as the “Base Salary”). The Base Salary shall be reviewed on an annual basis for increases in accordance with the review process for senior level executives of the Company. The Base
Salary shall be payable in accordance with the Company’s normal payroll practices. 
 3.    Incentive
Compensation 
 (a)    Annual Incentive Compensation. The Executive shall be entitled to participate in an
annual bonus program established by the Company with a target annual bonus amount, which for the 2019 fiscal year of the Company shall be equal to 60% of the Executive’s Base Salary, and for each subsequent fiscal year of the Term shall be
determined by the Compensation Committee, subject in all respects to achievement of performance goals to be established by the Company (the “Annual Bonus”). Any bonus earned by the Executive shall be paid after the end of the fiscal year
to which it relates, at the same time and under the same terms and conditions as other executives of the Company; provided that the Executive remains employed by the Company on the date the bonus is paid (other than due to non-renewal or termination by the Company without Cause or by the Executive for Good Reason) and in no event shall the Executive’s bonus be paid later than March 15 of the fiscal year following the fiscal
year for which it was earned. 

  
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 (b)    Long-Term Incentive Compensation. The Executive shall be
eligible to participate in all equity compensation plans and programs in place at the Company and shall receive such grants as may be provided from time to time by the Company to its officers. For the 2019 fiscal year, the Executive’s target
long-term incentive compensation shall be granted as soon as commercially practicable following the Effective Date, but no later than March 31, 2019 and shall be equal to 150% of the Executive’s Base Salary (“Target LTI”) and
shall include a mix of fifty percent (50%) performance-based stock options and fifty percent (50%) full value awards subject to ratable time-based vesting over four years. The performance targets for fiscal year 2019 shall be established by the
Compensation Committee in consultation with the Chief Executive Officer. The Executive’s Target LTI and the mix of equity grants shall be subject to change each subsequent fiscal year of the Term as determined in the sole discretion of the
Compensation Committee. Any equity awards made by the Company to the Executive shall be subject to the terms and conditions set forth in the Company’s equity compensation plan and form of grant agreement, as may be amended from time to time.

 4.    Benefits. During the Term, the Executive shall be eligible to participate in certain retirement and
welfare benefit plans and programs made available to the Company’s executives as a group, as such retirement and welfare plans may be in effect from time to time and subject to the eligibility requirements of such plans. Nothing in this
Agreement or otherwise shall prevent the Company from amending or terminating any incentive, equity compensation, retirement, welfare or other employee benefit plans, programs, policies or perquisites from time to time as the Company deems
appropriate. 
 5.    Vacation. During the Term, in addition to all holidays observed by the Company (currently
ten (10) days), the Executive shall be entitled twenty-one (21) days of annual paid time off, which shall accrue and may be used in accordance with the Company’s vacation, holiday, and other pay-for-time-not-worked policies. 

6.    Reimbursement of Expenses. During the Term, the Company shall reimburse the Executive, in accordance with the
policies and practices of the Company in effect from time to time, for all reasonable and necessary traveling expenses and other disbursements incurred by the Executive for or on behalf of the Company in connection with the performance of the
Executive’s duties hereunder upon presentation by the Executive to the Company of appropriate documentation therefore. 

7.    Termination Without Cause; Resignation for Good Reason. If the Executive’s employment is terminated by
the Company without Cause (as defined below) or by the Executive for Good Reason (as defined below), the provisions of this Section 7 shall apply. 

(a)    The Company may terminate the Executive’s employment with the Company at any time without Cause upon not less
than thirty (30) days’ prior written notice to the Executive and the Executive may resign for Good Reason (as defined below). 

(b)    Unless the Executive complies with the provisions of Section 7(c) below, upon termination under
Section 7(a) above, no other payments or benefits shall be due under this Agreement to the Executive, but the Executive shall be entitled to any amounts earned, accrued and owing, but not yet paid under Section 2 and any benefits accrued
and due in accordance with the terms of any applicable benefit plans and programs of the Company (the “Accrued Obligations”). 

  
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 (c)    Notwithstanding the provisions of Section 7(b), upon
termination under Section 7(a) above, if the Executive executes and does not revoke a written release of any and all claims against the Company or its affiliates, with respect to all matters arising out of the Executive’s employment with
the Company, in such form as provided by the Company in its sole discretion (the “Release”), and so long as the Executive continues to comply with the provisions of Section 14 below and Exhibit A and Exhibit B, in addition to the
Accrued Obligations, the Executive shall be entitled to receive the following: 
 (i)    Continuation of the
Executive’s Base Salary for twelve (12) months (the “Severance Term”), at the rate in effect for the year in which the Executive’s date of termination occurs, which amount shall be paid in regular payroll installments over
the applicable period following the Executive’s termination date; and 
 (ii)    A prorated Annual Bonus for the
year in which the Executive’s termination of employment occurs, which shall be determined by multiplying the Executive’s Target Incentive Bonus by a fraction, the numerator of which is the number of days during which the Executive was
employed by the Company in the year in which the termination date occurs and the denominator of which is 365. The prorated Annual Bonus, if any, shall be paid at the same time as bonuses are paid to other employees of the Company, but not later than
March 15 of the fiscal year following the fiscal year for which it was earned. 
 (iii)    If the Executive timely
and properly elects health continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), then continued health (including hospitalization, medical, dental, vision etc.) insurance coverage substantially
similar in all material respects as the coverage provided to the Company’s then other active senior executives for the Severance Term; provided that the Executive shall pay an amount equal to the amount active employees pay for such coverage as
of the date of the Executive’s termination (the “Monthly COBRA Costs”) and the period of COBRA health care continuation coverage provided under section 4980B of the Internal Revenue Code, as amended and the regulations and guidance
promulgated thereunder (the “Code”) shall run concurrently with the period; provided further that, notwithstanding the foregoing, the amount of any benefits provided by this subsection (c)(iii) shall be reduced or eliminated to the extent
the Executive becomes entitled to duplicative benefits by virtue of the Executive’s subsequent or other employment; and provided further that, notwithstanding the foregoing, if the Company’s making payments under this
Section 7(c)(iii) would violate any nondiscrimination rules applicable to the Company’s group health plan under which such coverage is made available, or result in the imposition of penalties under the Code or the Affordable Care Act, or
be impermissible under applicable law, the Parties agree to reform this Section 7(c)(iii) in a manner as is necessary to comply with such requirements and avoid such penalties. 

8.    Voluntary Termination. The Executive may voluntarily terminate the Executive’s employment for any reason
upon thirty (30) days’ prior written notice. In such event, after the effective date of such termination, no payments shall be due under this Agreement, except that the Executive shall be entitled to the Accrued Obligations. 

  
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 9.    Death; Disability. If the Executive’s employment is
terminated by the Company by reason of death or, subject to the requirements of applicable law, Disability (as defined below), upon the Executive’s date of termination or death, no payments shall be due under this Agreement, except that the
Executive (or in the event of the Executive’s death, the Executive’s executor, legal representative, administrator or designated beneficiary, as applicable), shall be entitled to the Accrued Obligations. 

10.    Cause. The Company may terminate the Executive’s employment at any time for Cause upon written notice
to the Executive, in which event all payments under this Agreement shall cease, except for the Accrued Obligations. 

11.    Change of Control. 

(a)    Termination without Cause or Resignation for Good Reason in connection with a Change of Control.
Notwithstanding anything to the contrary herein, if there is both a Change of Control and the Executive’s employment is terminated by the Company without Cause or by the Executive for Good Reason during the period commencing on the date that is
two months prior to (or the earlier date of execution of a definitive agreement with respect to such Change of Control) and ending twelve (12) months following such Change of Control (a “CIC Termination”), then, in addition to the
Accrued Obligations, the Executive shall be entitled to receive the following: 
 (i)    Severance benefits in an
amount equal to one times (1x) the sum of the Executive’s Base Salary plus the Executive’s Target Incentive Bonus in effect immediately prior to the Executive’s termination date, which amount shall be paid in regular payroll
installments over the applicable twelve (12) month period following the Executive’s termination date; 

(ii)    COBRA continuation benefits as set forth in Section 7(c)(iii); and 

(iii)    All outstanding equity grants held by the Executive immediately prior to the CIC Termination which vest based
upon the Executive’s continued service over time shall accelerate, become fully vested and/or exercisable, as the case may be, as of the later of (A) the date of the CIC Termination and (B) the consummation of a Change of Control (the
later of (A) or (B) the “CIC Vesting Event”). All outstanding equity grants held by the Executive immediately prior to the CIC Termination which vest based upon attainment of performance criteria shall accelerate, become vested and/or
exercisable, as the case may be, as of the date of the CIC Vesting Event at the greater of (x) the target level of performance and (y) the actual level of performance through the CIC Vesting Event. 

The foregoing severance benefits shall be subject to the Executive’s execution and non-revocation
of the Release and the Executive’s continued compliance with the provisions of Section 14 below, and Exhibit A and Exhibit B attached hereto, as applicable. 

(iv)    Application of Section 280G. If any of the payments or benefits received or to be
received by the Executive (including, without limitation, any payment or benefits received in connection with a Change of Control or the Executive’s termination of 

  
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employment, whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement, or otherwise) (all such payments collectively referred to herein as the “280G
Payment”) constitute “parachute payments” within the meaning of Code Section 280G and will be subject to the excise tax imposed under Code Section 4999 (the “Excise Tax”), then the 280G Payment shall be equal to
the Reduced Amount. The “Reduced Amount” shall be either (i) the largest portion of the 280G Payment that would result in no portion of the 280G Payment being subject to the Excise Tax, or (ii) the largest portion of the 280G
Payment, up to and including the total 280G Payment, whichever amount, after taking into account all applicable federal, state and local employment taxes, income taxes and the Excise Tax (all computed at the highest applicable marginal rate),
results in the Executive’s receipt, on an after-tax basis, of the greater amount of the 280G Payment, notwithstanding that all or some portion of the 280G Payment may be subject to the Excise Tax. In
making the determination described above, the Company, in its sole and absolute discretion, shall make a reasonable determination of the value to be assigned to any restrictive covenants in effect for the Executive, and the amount of the 280G
Payment shall be reduced by the value of those restrictive covenants to the extent consistent with Code Section 280G. If a reduction in payments or benefits constituting “parachute payments” is necessary so that the 280G Payment
equals the Reduced Amount, the amounts payable or benefits to be provided to the Executive shall be reduced such that the economic loss to the Executive as a result of the “parachute payment” elimination is minimized. In applying this
principle, the reduction shall be made in a manner consistent with the requirements of Code Section 409A and where two economically equivalent amounts are subject to reduction but payable at different times, such amounts shall be reduced on a
pro rata basis but not below zero. All determinations to be made under this Section 11 shall be made by an independent accounting firm, consulting firm or other independent service provider selected by the Company immediately prior to the
Change of Control (the “Firm”), which shall provide its determinations and any supporting calculations both to the Company and the Executive within ten (10) days of the Change of Control. Any such determination by the Firm shall be
binding upon the Company and the Executive. All of the fees and expenses of the Firm in performing the determinations referred to in this Section 11 shall be borne solely by the Company. 

12.    Definitions. 

(a)    Cause. For purposes of this Agreement, “Cause” shall mean any of the following grounds for
termination of the Executive’s employment listed: (i) the Executive’s knowing and material dishonesty or fraud committed in connection with the Executive’s employment; (ii) theft, misappropriation or embezzlement by the
Executive of the Company’s funds and/or property; (iii) the Executive repeatedly negligently performing or repeatedly negligently failing to perform, or willfully refusing to perform, the Executive’s duties to the Company (other than
a failure resulting from Executive’s incapacity due to physical or mental illness); (iv) the Executive’s conviction of or a plea of guilty or nolo contendere to any felony, a crime involving fraud or misrepresentation, or any other
crime (whether or not connected with his employment) the effect of which is likely to adversely affect the Company or its affiliates; (v) a material breach by the Executive of any of the provisions or covenants set forth in this Agreement; or
(vi) a material breach by the Executive of the Company’s Code of Conduct. Prior to any termination for Cause pursuant to each such event listed in (i), (iii), (v) or (vi) above, to the extent such event(s) is capable of being cured by
the Executive, the Company shall give the 

  
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Executive written notice thereof describing in reasonable detail the circumstances constituting Cause and the Executive shall have the opportunity to remedy same within thirty (30) days
after receiving written notice. 
 (b)    Change of Control. For purposes of this Agreement, a “Change of
Control” shall have the same meaning ascribed to such term under the Company’s 2019 Omnibus Incentive Compensation Plan, as in effect on the date hereof and as may be amended from time to time, or such successor plan. 

(c)    Disability. For purposes of this Agreement, “Disability” shall mean the Executive has been unable
to perform the essential functions of the Executive’s position with the Company by reason of physical or mental incapacity for a period of six consecutive months, subject to any obligations or limitations imposed by federal, state or local
laws, including any duty to accommodate Executive under the federal Americans with Disabilities Act. 
 (d)    Good
Reason. For purposes of this Agreement, “Good Reason” shall mean the occurrence of one or more of the following, without the Executive’s consent: (i) material diminution of the Executive’s authority, duties or
responsibilities; (ii) a material change in the geographic location at which Executive must perform the Executive’s services under this Agreement (which, for purposes of this Agreement, means relocation of the offices of the Company at
which the Executive is principally employed to a location more than fifty (50) miles from the location of such offices immediately prior to the relocation); (iii) a material diminution in the Executive’s Base Salary; (iv) non-renewal of this Agreement; or (v) any action or inaction that constitutes a material breach by the Company of a material provision of this Agreement. The Executive must provide written notice of
termination for Good Reason to the Company within thirty (30) days after the event constituting Good Reason first occurs, which notice shall state such Good Reason in reasonable detail. The Company shall have a period of thirty (30) days
in which it may correct the act or failure to act that constitutes the grounds for Good Reason as set forth in the Executive’s notice of termination. If the Company does not correct the act or failure to act, the Executive must terminate the
Executive’s employment for Good Reason within sixty (60) days after the end of the cure period, in order for the termination to be considered a Good Reason termination. 

(e)    Target Incentive Bonus. For purposes of this Agreement, “Target Incentive Bonus” shall mean the
Executive’s target annual incentive bonus amount (measured at the target level, identified “goal” target or other similar target, without taking into account any incentive override for above goal performance, or any project-specific
or other non-standard incentives) as in effect under the Company’s applicable annual incentive plan for the year of termination. In the event that the Company has notified the Executive in writing that
the Executive will be eligible for a Target Incentive Bonus for the year of termination, but a plan has not yet been put into effect, the Target Incentive Bonus shall be the prior year’s target annual incentive bonus amount. 

  
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 13.    Representations, Warranties and Covenants of the
Executive. 
 (a)    Restrictions. The Executive represents and warrants to the Company that: 

(i)    There are no restrictions, agreements or understandings whatsoever to which the Executive is a party which would
prevent or make unlawful the Executive’s execution of this Agreement or the Executive’s employment hereunder, which is or would be inconsistent or in conflict with this Agreement or the Executive’s employment hereunder, or would
prevent, limit or impair in any way the performance by the Executive of the obligations hereunder; and 
 (ii)    The
Executive has disclosed to the Company all restraints, confidentiality commitments, and other employment restrictions that the Executive has with any other employer, person or entity. 

(b)    Obligations to Former Employers. The Executive covenants that in connection with the Executive’s
provision of services to the Company, the Executive shall not breach any obligation (legal, statutory, contractual, or otherwise) to any former employer or other person, including, but not limited to, obligations relating to confidentiality and
proprietary rights. 
 (c)    Obligations Upon Termination. Upon and after the Executive’s termination or
cessation of employment with the Company and until such time as no obligations of the Executive to the Company hereunder exist, the Executive shall (i) provide a complete copy of this Agreement to any person, entity or association which the
Executive proposes to be employed, affiliated, engaged, associated or to establish any business or remunerative relationship prior to the commencement of any such relationship and (ii) shall notify the Company of the name and address of any
such person, entity or association prior to the commencement of such relationship. 
 14.    Restrictive Covenant
Agreements. The Executive agrees to be bound by the Invention and Non-Disclosure Agreement attached hereto as Exhibit A and the Non-Competition and Non-Solicitation Agreement attached hereto as Exhibit B (Exhibit A and Exhibit B together referred to as the “Restrictive Covenant Agreements”), each of which are incorporated by reference herein.
The provisions of the Restrictive Covenant Agreements shall survive the term of this Agreement pursuant to the terms set forth in Exhibit A or Exhibit B, as applicable. 

15.    Miscellaneous Provisions. 

(a)    Entire Agreement; Amendments. 

(i)    This Agreement and the other agreements referred to herein contain the entire agreement between the Parties hereto
and supersede any and all prior agreements and understandings concerning the Executive’s employment by the Company. 

(ii)    This Agreement shall not be altered or otherwise amended, except pursuant to an instrument in writing signed by
each of the Parties hereto 

  
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 (b)    Descriptive Headings. Descriptive headings are for
convenience only and shall not control or affect the meaning or construction of any provisions of this Agreement. When the context admits or requires, words used in the masculine gender shall be construed to include the feminine, the plural shall
include the singular, and the singular shall include the plural. 
 (c)    Notices. All notices or other
communications pursuant to this Agreement shall be in writing and shall be deemed to be sufficient if delivered personally, telecopied, sent by nationally-recognized, overnight courier or mailed by registered or certified mail (return receipt
requested), postage prepaid, to the Parties at the following addresses (or at such other address for a party as shall be specified by like notice): 

(i)    if to the Company, to: 

7 Custom House Street, Suite 2 

Portland, ME 04101 

Attention: General Counsel 

with a copy to: 

Morgan, Lewis & Bockius LLP 

One Federal Street 

Boston, MA 02110-1726 

Attention: Mark Stein 

Facsimile No.: (617) 341-7701 

(ii)    if to the Executive, to the address in the Company’s personnel records. 

All such notices and other communications shall be deemed to have been delivered and received (A) in the case of personal delivery, on
the date of such delivery, (B) in the case of delivery by telecopy, on the date of such delivery, (C) in the case of delivery by nationally-recognized, overnight courier, on the Business Day following dispatch, and (D) in the case of
mailing, on the third Business Day following such mailing. As used herein, “Business Day” shall mean any day that is not a Saturday, Sunday or a day on which banking institutions in the state of Maine are not required to be open. 

(d)    Counterparts. This Agreement may be executed in any number of counterparts, and each such counterpart shall
be deemed to be an original instrument, but all such counterparts together shall constitute but one agreement. This Agreement may be executed and delivered by facsimile. 

(e)    Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of
the state of Delaware applicable to contracts made and performed wholly therein without regard to rules governing conflicts of law. 

  
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 (f)    Non-Exclusivity of
Rights; Resignation from Boards; Clawback. 
 (i)    Nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in or rights under any benefit, bonus, incentive or other plan or program provided by the Company and for which the Executive may qualify; provided, however, that if the Executive becomes entitled
to and receives the severance payments described in Sections 7 or 11 of this Agreement, the Executive hereby waives the Executive’s right to receive payments under any severance plan or similar program applicable to employees of the Company.

 (ii)    If the Executive’s employment with the Company terminates for any reason, the Executive shall
immediately resign from all boards of directors of the Company, any affiliates of the Company and any other entities for which the Executive serves as a representative of the Company and any committees thereof. 

(iii)    The Executive agrees that the Executive will be subject to any compensation clawback, recoupment and
anti-hedging policies that may be applicable to the Executive as an executive of the Company, as in effect from time to time and as approved by the board of directors of the Company or a duly authorized committee thereof. 

(g)    Benefits of Agreement; Assignment. All of the terms and provisions of this Agreement shall be binding upon
and inure to the benefit of and be enforceable by the respective heirs, executors, administrators, legal representatives, successors and assigns of the Parties hereto, except that the duties and responsibilities of the Executive under this Agreement
are of a personal nature and shall not be assignable or delegable in whole or in part by the Executive. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or
substantially all of the business or assets of the Company, within fifteen (15) days of such succession, expressly to assume and agree to perform this Agreement in the same manner and to the same extent as the Company would be required to
perform if no such succession had taken place and the Executive acknowledges that in such event the obligations of the Executive hereunder, including but not limited to those under Sections 13 or 14, will continue to apply in favor of the successor.

 (h)    Waiver of Breach. No delay or omission by a party in exercising any right, remedy or power under this
Agreement or existing at law or in equity shall be construed as a waiver thereof, and any such right, remedy or power may be exercised by such party from time to time and as often as may be deemed expedient or necessary by such party in its sole
discretion. 
 (i)    Severability. In the event that any provision of this Agreement is determined to be
partially or wholly invalid, illegal or unenforceable in any jurisdiction, then such provision shall, as to such jurisdiction, be modified or restricted to the extent necessary to make such provision valid, binding and enforceable, or if such
provision cannot be modified or restricted, then such provision shall, as to such jurisdiction, be deemed to be excised from this Agreement; provided, however, that the binding effect and enforceability of the remaining provisions of this Agreement,
to the extent the economic benefits conferred upon the Parties by virtue of this Agreement remain substantially unimpaired, shall not be affected or impaired in any manner, and any such invalidity, illegality or unenforceability with respect to such
provisions shall not invalidate or render unenforceable such provision in any other jurisdiction. 

  
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 (j)    Remedies. All remedies hereunder are cumulative, are in
addition to any other remedies provided for by law and may, to the extent permitted by law, be exercised concurrently or separately, and the exercise of any one remedy shall not be deemed to be an election of such remedy or to preclude the exercise
of any other remedy. The Executive acknowledges that in the event of a breach of any of the Executive’s covenants contained in Sections 13 or 14, the Company shall be entitled to immediate relief enjoining such violations in any court or before
any judicial body having jurisdiction over such a claim. 
 (k)    Survival. The respective rights and
obligations of the Parties hereunder shall survive the termination of this Agreement to the extent necessary to the intended preservation of such rights and obligations. 

(l)    Jurisdiction. Each of the Parties hereto hereby irrevocably and unconditionally submits, for itself and its
property, to the exclusive jurisdiction of any Maine state court or federal court of the United States of America sitting in the state of Maine, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this
Agreement or any related agreement or for recognition or enforcement of any judgment. Each of the Parties hereto hereby irrevocably and unconditionally agrees that jurisdiction and venue in such courts would be proper, and hereby waive any objection
that such courts are an improper or inconvenient forum. Each of the Parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. Each of the Parties hereto irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or any related agreement in any Maine state or federal court. Each of the Parties hereto irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court. 
 (m)    Withholding. All payments under this
Agreement shall be made subject to applicable tax withholding, and the Company shall withhold from any payments under this Agreement all federal, state and local taxes as the Company is required to withhold pursuant to any law or governmental rule
or regulation. The Executive shall bear all expense of, and be solely responsible for, all federal, state and local taxes due with respect to any payment received under this Agreement. 

(n)    Compliance with Section 409A of the Code. 

(i)    This Agreement is intended to comply with Section 409A of the Code and its corresponding regulations, to the
extent applicable. Severance benefits under the Agreement are intended to be exempt from Section 409A of the Code under the “short term deferral” exemption, to the maximum extent applicable, and then under the “separation
pay” exemption, to the maximum extent applicable. Notwithstanding anything in this Agreement to the contrary, payments may only be made under this Agreement upon an event and in a manner permitted by Section 409A of the Code, to the extent
applicable. As used in the Agreement, the term “termination of employment” shall mean the Executive’s separation from service with the Company within the meaning of Section 409A of the Code and the regulations promulgated
thereunder. In no event may the Executive, directly or indirectly, designate the calendar year of 

  
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a payment. For purposes of Section 409A of the Code, each payment hereunder shall be treated as a separate payment and the right to a series of payments shall be treated as the right to a
series of separate payments. All reimbursements and in-kind benefits provided under the Agreement shall be made or provided in accordance with the requirements of Section 409A of the Code. Notwithstanding
any provision of this Agreement to the contrary, in no event shall the timing of the Executive’s execution of the Release, directly or indirectly, result in the Executive designating the calendar year of payment, and if a payment that is
subject to execution of the Release could be made in more than one taxable year, payment shall be made in the later taxable year. 

(ii)    Notwithstanding anything herein to the contrary, if, at the time of the Executive’s termination of
employment with the Company, the Company has securities which are publicly traded on an established securities market and the Executive is a “specified employee” (as such term is defined in section 409A of the Code) and it is necessary to
postpone the commencement of any payments or benefits otherwise payable under this Agreement as a result of such termination of employment to prevent any accelerated or additional tax under section 409A of the Code, then the Company will postpone
the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to the Executive) that are not otherwise paid within the ‘short-term deferral
exception’ under Treas. Reg. §1.409A-1(b)(4), and the ‘separation pay exception’ under Treas. Reg. §1.409A-1(b)(9)(iii), until the first payroll
date that occurs after the date that is six months following the Executive’s “separation of service” (as such term is defined under code section 409A of the Code) with the Company. If any payments are postponed due to such
requirements, such postponed amounts will be paid in a lump sum to the Executive on the first payroll date that occurs after the date that is six months following Executive’s separation of service with the Company. If the Executive dies during
the postponement period prior to the payment of postponed amount, the amounts withheld on account of section 409A of the Code shall be paid to the personal representative of the Executive’s estate within sixty (60) days after the date of
the Executive’s death. 
 (o)    Full Settlement. In no event shall the Executive be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and such amounts shall not be reduced as a result of a mitigation duty whether or not the Executive
obtains other employment. 
 (p)    Indemnification. The Company hereby agrees, to the maximum extent permitted
by law, to indemnify and hold the Executive harmless against any costs and expenses, including reasonable attorneys’ fees, judgments, fines, settlements and other amounts incurred in connection with any proceeding arising out of, by reason of
or relating to the Executive’s good faith performance of the Executive’s duties and obligations with the Company. The Company shall also provide the Executive with coverage as a named insured under a directors and officers liability
insurance policy maintained for the Company’s directors and officers. This obligation to provide insurance and indemnify the Executive shall survive expiration or termination of this Agreement with respect to proceedings or threatened
proceedings based on acts or omissions of the Executive occurring during the Executive’s employment with the Company or with any of its affiliates. Such obligations shall be binding upon the Company’s successors and assigns and shall inure
to the benefit of the Executive’s heirs and personal representatives. 

  
 12 

 (q)    Government Agency Exception. Nothing in this Agreement is
intended to prohibit or restrict the Executive from: (i) making any disclosure of information required by process of law; (ii) providing information to, or testifying or otherwise assisting in any investigation or proceeding brought by,
any federal or state regulatory or law enforcement agency or legislative body, or any self-regulatory organization; or (iii) filing, testifying, participating in, or otherwise assisting in a proceeding relating to an alleged violation of any
federal, state, or municipal law relating to fraud or any rule or regulation of the Securities and Exchange Commission or any self-regulatory organization. In addition, this Agreement does not bar the Executive’s right to file an administrative
charge with the Equal Employment Opportunity Commission (“EEOC”) and/or to participate in an investigation by the EEOC. 

[Signature Page Follows] 

  
 13 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date and year
first above written. 
  

			
	By:	 	
                     
                                         
      

	Name:	 	
	Title:	 	
	
	EXECUTIVE
		
	By:	 	  

		 	Georgina Wraight

 [Signature Page to Employment Agreement] 

 EXHIBIT A 

  
 15 

 EXHIBIT B 

  
 16ex_132548.htm

Exhibit 10.1

 

EXECUTION VERSION

 

 

 

This AMENDMENT NO. 2 (this “Amendment”), dated as of January 7, 2019, among Cable One, Inc., a Delaware corporation (the “Borrower”), the other Loan Parties party hereto, the Initial Incremental Term B-2 Lender (as defined below), and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”) for the Lenders, amends the Amended and Restated Credit Agreement, dated as of May 1, 2017 (as amended, supplemented or otherwise modified from time to time prior to the date hereof, the “Original Credit Agreement”), among the Borrower, the Lenders party thereto from time to time, and the Administrative Agent.

 

WHEREAS, the Borrower has requested to obtain new Incremental Term Loans consisting of loans established as a separate Class from the existing Classes of Loans and that shall hereafter be referred to as the “Incremental Term B-2 Loans” in an aggregate principal amount of $250,000,000, to be made available in a single drawing on the Delayed Draw Funding Date (as defined below) on the terms and subject solely to the conditions set forth herein;

 

WHEREAS, Section 2.19 of the Original Credit Agreement permits the Borrower to establish Incremental Term Loans pursuant to an Additional Credit Extension Amendment which may be in the form of an amendment to the Original Credit Agreement;

 

WHEREAS, the proceeds of the Incremental Term B-2 Loans borrowed on the Delayed Draw Funding Date will be used for general corporate purposes (including to finance working capital needs, Permitted Acquisitions or any other transaction not prohibited by the Amended Credit Agreement) of the Borrower and its Subsidiaries;

 

WHEREAS, pursuant to Section 2.19 of the Original Credit Agreement, the Borrower, the Administrative Agent and the Increasing Lender providing the Incremental Term B-2 Loans (such initial Increasing Lender, set forth under the heading “Incremental Term B-2 Lender” on Schedule I hereto, in such capacity, the “Initial Incremental Term B-2 Lender”), without the consent of any other Lenders, may enter into this Amendment to effectuate the incurrence by the Borrower of the Incremental Term B-2 Loans;

 

WHEREAS, the Borrower has requested, and the Administrative Agent and the Initial Incremental Term B-2 Lender have agreed, upon the terms and subject to the conditions set forth herein, that the Original Credit Agreement be amended as provided herein in order to effectuate the incurrence by the Borrower of the Incremental Term B-2 Loans (the Original Credit Agreement, as so amended, the “Amended Credit Agreement”); and

 

WHEREAS, in connection with the Incremental Term B-2 Loans and this Amendment, CoBank, ACB will act as sole and exclusive lead arranger (in such capacity, the “Incremental Term B-2 Lead Arranger”) and bookrunner.

 

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NOW, THEREFORE, in consideration of the promises and mutual agreements herein contained, the Borrower, the Initial Incremental Term B-2 Lender and the Administrative Agent hereby agree as follows:

 

SECTION 1.      Defined Terms. Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Amended Credit Agreement. The rules of interpretation set forth in Section 1.03 of the Original Credit Agreement are hereby incorporated by reference herein, mutatis mutandis. As used herein, the term “2019 Transactions” means, collectively, (a) the execution, delivery and performance by each Loan Party of this Amendment, (b) the Borrowing of the Incremental Term B-2 Loans hereunder and the use of the proceeds thereof and (c) the payment of fees and expenses incurred in connection with the foregoing.

 

SECTION 2.      Incremental Term B-2 Loan Commitments.

 

(a)     The Initial Incremental Term B-2 Lender hereby agrees, on the terms and subject solely to the conditions set forth herein and in the Amended Credit Agreement, to make Incremental Term B-2 Loans in Dollars to the Borrower in a single drawing on the Delayed Draw Funding Date by wire transfer of immediately available funds by 2:00 p.m., New York City time, to the account specified therefor by the Administrative Agent in an aggregate principal amount not to exceed the amount set forth opposite the Initial Incremental Term B-2 Lender’s name on Schedule I hereto under the heading “Incremental Term B-2 Loan Commitment.” The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to an account designated by the Borrower in the applicable Borrowing Request. Amounts borrowed under this Section 2 and repaid or prepaid may not be reborrowed.

 

(b)     The Incremental Term B-2 Loans constitute Loans and Term Loans under the Amended Credit Agreement and shall have the terms set forth in the Amended Credit Agreement. For the avoidance of doubt, the Incremental Term B-2 Loans shall constitute a single and distinct Class of Loans under the Amended Credit Agreement, designated as the “Incremental Term B-2 Loans.” The Incremental Term B-2 Loans shall be Excluded Term Loans. The Incremental Term B-2 Lenders constitute Lenders under the Amended Credit Agreement.

 

(c)     The proceeds of the Incremental Term B-2 Loans borrowed on the Delayed Draw Funding Date shall be used for general corporate purposes (including to finance working capital needs, Permitted Acquisitions or any other transaction not prohibited by the Amended Credit Agreement) of the Borrower and its Subsidiaries.

 

(d)     Unless previously terminated, the Incremental Term B-2 Loan Commitments shall terminate upon the earlier of (x) immediately after the making of the Incremental Term B-2 Loans on the Delayed Draw Funding Date and (y) the date that is 180 days following the Amendment Effective Date (as defined below). The Borrower may at any time terminate, or from time to time reduce, the Incremental Term B-2 Loan Commitments by complying with the requirements and procedures set forth in Sections 2.08(c) of the Amended Credit Agreement with respect to terminations of Revolving Commitments as if such requirements and procedures were stated therein to apply to the Incremental Term B-2 Loan Commitments; provided that each reduction of the Incremental Term B-2 Loan Commitments shall be in an amount that is an integral multiple of $1,000,000 and not less than $1,000,000 (or, if less, the remaining amount of such Incremental Term B-2 Loan Commitments).

 

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(e)     The Borrower promises to repay (i) on the last day of each fiscal quarter, commencing with the last day of the first full fiscal quarter ending after the Delayed Draw Funding Date, an aggregate principal amount of Incremental Term B-2 Loans equal to 0.25% of the aggregate principal amount of all Incremental Term B-2 Loans borrowed on the Delayed Draw Funding Date (subject to adjustment in the event of prepayments as provided in Section 2.10 of the Amended Credit Agreement) and (ii) on the Incremental Term B-2 Loan Maturity Date, the aggregate principal amount of all Incremental Term B-2 Loans outstanding on such date.

 

(f)     The provisions of Sections 2.10(c) and (d) applicable to Term Loans shall extend to and apply with respect to Incremental Term B-2 Loans.

 

SECTION 3.      Amendments to the Original Credit Agreement. Effective as of the Amendment Effective Date, the Original Credit Agreement is hereby amended as follows:

 

(a)     Section 1.01 of the Original Credit Agreement is hereby amended by adding the following definitions in proper alphabetical sequence:

 

“2019 Additional Credit Extension Amendment” means that certain Amendment No. 2 to this Agreement, dated as of the 2019 Additional Credit Extension Amendment Effective Date, among the Borrower, the Guarantors, the Administrative Agent and the Lenders party thereto.

 

“2019 Additional Credit Extension Amendment Effective Date” means the date on which the conditions precedent set forth in Section 4 of the 2019 Additional Credit Extension Amendment were satisfied or waived in accordance therewith.

 

“Incremental Term B-2 Lender” means a Lender holding Incremental Term B-2 Loans or an Incremental Term B-2 Loan Commitment.

 

“Incremental Term B-2 Loan” means a loan made pursuant to the 2019 Additional Credit Extension Amendment.

 

“Incremental Term B-2 Loan Commitment” means with respect to each Lender, the commitment, if any, of such Lender to make an Incremental Term B-2 Loan pursuant to the 2019 Additional Credit Extension Amendment, as such commitment may be reduced from time to time pursuant to Section 2(d) of the 2019 Additional Credit Extension Amendment. The initial amount of each Lender’s Incremental Term B-2 Loan Commitment is set forth on Schedule I to the 2019 Additional Credit Extension Amendment. The aggregate amount of the Lenders’ Incremental Term B-2 Loan Commitments on the 2019 Additional Credit Extension Amendment Effective Date is $250,000,000.

 

“Incremental Term B-2 Loan Maturity Date” means January 7, 2026.

 

(b)     The following defined terms in Section 1.01 of the Original Credit Agreement are hereby amended and restated in their entirety to read as follows (new text is in bold/underline, and deleted text is in strikethrough):

 

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“Class” when used in reference to any (x) Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans, Initial Term A Loans, Incremental Term A-1 Loans, Incremental Term B-1 Loans, Incremental Term B-2 Loans, Incremental Term Loans of any other series, Extended Term Loans of any series, Replacement Term Loans of any series or Swingline Loans and (y) when used with respect to any Commitment, refers to whether such Commitment is an Incremental Term A-1 Loan Commitment, Incremental Term B-1 Loan Commitment, Incremental Term B-2 Loan Commitment, Revolving Commitment or Extended Revolving Commitment of any series.

 

“Required Financial Covenant Lenders” means, at any time, the Required Lenders but excluding for all purposes of the determination thereof the Incremental Term B-1 Loans, the Incremental Term B-2 Loans and any other Term Loans that pursuant to the terms of the applicable Additional Credit Extension Amendment establishing such Term Loans are to be excluded from any determination of the Required Financial Covenant Lenders (the Incremental Term B-1 Loans, the Incremental Term B-2 Loans and any other Term Loans so excluded, “Excluded Term Loans”).

 

“Term Loan Commitment” means an Incremental Term A-1 Loan Commitment or, an Incremental Term B-1 Loan Commitment or an Incremental Term B-2 Loan Commitment, as applicable.

 

“Term Loans” means the Initial Term A Loans, the Incremental Term A-1 Loans, the Incremental Term B-1 Loans, the Incremental Term B-2 Loans, the Incremental Term Loans of each other series and the Extended Term Loans of each series, collectively

 

(a)     The definition of “Applicable Rate” set forth in Section 1.01 of the Original Credit Agreement is hereby amended by (i) deleting the word “and” at the end of clause (a) in the first paragraph of such definition and (ii) replacing the “.” at the end of such paragraph with the following text:

 

; and (c) (i) 2.00% in the case of Eurocurrency Incremental Term B-2 Loans, and (ii) 1.00% in the case of Base Rate Incremental Term B-2 Loans.

 

(b)     The definition of “Incremental Equivalent Indebtedness” set forth in Section 1.01 of the Original Credit Agreement is hereby amended by (i) replacing the words “Incremental Term B-1 Loan Maturity Date” with the words “Incremental Term B-2 Loan Maturity Date” and (ii) replacing the words “the then remaining Weighted Average Life to Maturity of the Incremental Term B-1 Loans” with the words “the longer of (A) the then remaining Weighted Average Life to Maturity of the Incremental Term B-1 Loans and (B) the then remaining Weighted Average Life to Maturity of the Incremental Term B-2 Loans.”

 

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(c)     Section 2.19(a) of the Original Credit Agreement is hereby amended by (i) replacing the words “Incremental Term B-1 Loan Maturity Date” with the words “Incremental Term B-2 Loan Maturity Date” and (ii) replacing the words “the then remaining Weighted Average Life to Maturity of the Incremental Term B-1 Loans” with the words “the longer of (A) the then remaining Weighted Average Life to Maturity of the Incremental Term B-1 Loans and (B) the then remaining Weighted Average Life to Maturity of the Incremental Term B-2 Loans.”

 

(d)     Clause (u) in Section 6.01 of the Original Credit Agreement is hereby amended by (i) replacing the words “Incremental Term B-1 Loan Maturity Date” with the words “Incremental Term B-2 Loan Maturity Date” and (ii) replacing the words “the then remaining Weighted Average Life to Maturity of the Incremental Term B-1 Loans” with the words “the longer of (A) the then remaining Weighted Average Life to Maturity of the Incremental Term B-1 Loans and (B) the then remaining Weighted Average Life to Maturity of the Incremental Term B-2 Loans.”

 

SECTION 4.      Conditions Precedent to Effectiveness. This Amendment and the amendments to the Original Credit Agreement provided for herein shall become effective on the date (such date, the “Amendment Effective Date”) that each of the conditions precedent set forth below shall have been satisfied or waived:

 

(a)     Executed Counterparts. The Administrative Agent and the Initial Incremental Term B-2 Lender shall have received a counterpart signature page of this Amendment signed on behalf of the Borrower and the Initial Incremental Term B-2 Lender;

 

(b)     Opinions. The Administrative Agent and the Initial Incremental Term B-2 Lender shall have received the executed legal opinions of (x) Cravath, Swaine & Moore LLP, special New York counsel to the Borrower, in form reasonably satisfactory to the Administrative Agent and (y) Morris, Nichols, Arsht & Tunnell LLP, special Delaware counsel to the Borrower and the Guarantors in form reasonably satisfactory to the Administrative Agent and the Initial Incremental Term B-2 Lender. The Borrower hereby requests such counsels to deliver such opinions;

 

(c)     Closing Documents. The Administrative Agent and the Initial Incremental Term B-2 Lender shall have received such customary closing documents and certificates as the Administrative Agent and the Initial Incremental Term B-2 Lender may reasonably request relating to the organization and existence of each Loan Party, the authorization of the 2019 Transactions, and the identity, authority and capacity of the Responsible Officers of the Loan Parties authorized to act as such in connection with this Amendment and the other Loan Documents, all in form and substance reasonably satisfactory to the Administrative Agent and the Initial Incremental Term B-2 Lender;

 

(d)     Note. The Initial Incremental Term B-2 Lender shall have received a Note executed by the Borrower in favor of the Initial Incremental Term B-2 Lender;

 

(e)     Administrative Questionnaire. The Administrative Agent shall have received a completed Administrative Questionnaire from the Initial Incremental Term B-2 Lender.

 

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(f)     Patriot Act. The Administrative Agent shall have received confirmation from the Initial Incremental Term B-2 Lender that the Initial Incremental Term B-2 Lender shall have received, at least three Business Days prior to the Amendment Effective Date, all documentation and other information reasonably requested in writing by it at least ten Business Days prior to the Amendment Effective Date in order to allow it to comply with the Act; and

 

(g)     Fees and Expenses Paid. The Administrative Agent shall have received all amounts owing by the Borrower pursuant to Section 9.03(a) of the Credit Agreement in connection with this Amendment to the extent invoiced at least three Business Days prior to the Amendment Effective Date. The Administrative Agent shall have received confirmation from the Initial Incremental Term B-2 Lender that the Initial Incremental Term B-2 Lender and the Incremental Term B-2 Lead Arranger shall have received all fees and other amounts due and payable to such Persons on or prior to the Amendment Effective Date in connection with this Amendment, including, to the extent invoiced three Business Days prior to the Amendment Effective Date, reimbursement or payment of all reasonable out-of-pocket expenses required to be reimbursed or paid by the Borrower to the Incremental Term B-2 Lead Arranger.

 

SECTION 5.      Conditions Precedent to Funding. The obligations of the Initial Incremental Term B-2 Lender to make the Incremental Term B-2 Loans shall become effective on the date (such date, the “Delayed Draw Funding Date”) that each of the conditions precedent set forth below shall have been satisfied or waived:

 

(a)     Amendment Effective Date. The Amendment Effective Date shall have occurred;

 

(b)     Borrowing Request. The Administrative Agent shall have received a Borrowing Request for the Incremental Term B-2 Loans to be made on the Delayed Draw Funding Date;

 

(c)     Representations and Warranties; No Default or Event of Default. At the time of and immediately after giving effect to the making of the Incremental Term B-2 Loans and the application of the proceeds thereof, each of the conditions set forth in Section 4.02(a) and Section 4.02(b) of the Amended Credit Agreement shall be satisfied;

 

(d)     Officer’s Certificate. The Administrative Agent shall have received a certificate dated as of the Delayed Draw Funding Date and signed by a Financial Officer of the Borrower, certifying that the conditions specified in clause (c) above and clause (e) below have been satisfied;

 

(e)     Pro Forma Compliance with Financial Covenants. The Borrower shall be in compliance, calculated on a Pro Forma Basis, with the covenants contained in Section 6.09 of the Original Credit Agreement as of the last day of the most recent fiscal quarter of the Borrower for which financial statements have been delivered pursuant to Section 5.01(a) or (b) of the Original Credit Agreement; and

 

(f)     Fees Paid. The Administrative Agent shall have received payment of all accrued and unpaid Incremental Term B-2 Unused Commitment Fees (as defined below), if any.

 

The Administrative Agent shall notify the Borrower and the Lenders of the occurrence of the Delayed Draw Funding Date, and such notice shall be conclusive and binding.

 

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SECTION 6.      Fees. The Borrower agrees to pay to the Administrative Agent for the account of the Initial Incremental Term B-2 Lender an unused commitment fee for the applicable accrual period specified below (the “Incremental Term B-2 Unused Commitment Fee”), which shall accrue on the daily average unused amount of the Incremental Term B-2 Loan Commitment of the Initial Incremental Term B-2 Lender at the rate equal to (a) 0% per annum for the period from the Amendment Effective Date through and including the 45th day following the Closing Date, (b) 0.375% per annum for the period from and including the 46th day following the Amendment Effective Date through and including the 90th day following the Amendment Effective Date, (c) 0.500% per annum for the period from and including the 91st day following the Amendment Effective Date through and including the 135th day following the Amendment Effective Date, and (d) 0.625% per annum for the period from and including the 136th day following the Amendment Effective Date through and including the 180th day following the Amendment Effective Date. The Incremental Term B-2 Unused Commitment Fees shall accrue during the period from and including the Amendment Effective Date to but excluding the date on which such Incremental Term B-2 Loan Commitment terminates; provided that any such commitment fee accrued with respect to the Incremental Term B-2 Loan Commitment of a Defaulting Lender during the period prior to the time such Lender became a Defaulting Lender and unpaid at such time shall not be payable by the Borrower so long as such Lender shall be a Defaulting Lender except to the extent that such commitment fee shall otherwise have been due and payable by the Borrower prior to such time; and provided further that no commitment fee shall accrue on the Incremental Term B-2 Loan Commitment of a Defaulting Lender at any time that such Lender shall be a Defaulting Lender. Accrued Incremental Term B-2 Unused Commitment Fees shall be payable in arrears on the last day of March, June, September and December of each year and on the date on which the Incremental Term B-2 Loan Commitments terminate, commencing on the first such date to occur after the Amendment Effective Date. The Incremental Term B-2 Unused Commitment Fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). The Incremental Term B-2 Unused Commitment Fees, once paid, shall not be refundable under any circumstances.

 

SECTION 7.      Representations and Warranties. To induce the other parties hereto to enter into this Amendment, each Loan Party represents and warrants that:

 

(a)     it is (i) duly organized, validly existing and in good standing (to the extent such concept is applicable in the relevant jurisdiction) under the laws of the jurisdiction of its organization, (ii) has all requisite power and authority to carry on its business as now conducted and (iii) is qualified to do business in, and is in good standing (to the extent such concept is applicable) in, every jurisdiction where such qualification is required; except in each case referred to in clause (i) (other than with respect to the Borrower), (ii) or (iii) where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect;

 

(b)     the 2019 Transactions are, with respect to each Loan Party as of the Amendment Effective Date, within such Loan Party’s corporate, limited liability or partnership powers and have been duly authorized by all necessary corporate or other organizational and, if required, stockholder, member or partner action;

 

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(c)     each of this Amendment and the Note delivered to the Initial Term B-2 Lender has been duly authorized, executed and delivered by such Loan Party party thereto and constitutes a legal, valid and binding obligation of such Loan Party party thereto in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law; and

 

(d)     the 2019 Transactions (i) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except for (A) filings necessary to perfect or maintain the perfection of the Liens on the Collateral granted by the Loan Parties in favor of the Administrative Agent, (B) the approvals, consents, registrations, actions and filings which have been duly obtained, taken, given or made and are in full force and effect, (C) those approvals, consents, registrations or other actions or filings, the failure of which to obtain or make could not reasonably be expected to have a Material Adverse Effect and (D) those approvals, consents, registrations or other actions or filings required prior to the exercise of any rights or remedies under the Loan Documents that would constitute a transfer of control of, or assignment of, any FCC license or Cable System, (ii) will not violate (A) any applicable law or regulation or order of any Governmental Authority or (B) the charter, by-laws or other organizational documents of any Loan Party, (iii) will not violate or result in a default under any indenture, agreement or other instrument binding upon any Loan Party or its assets, or give rise to a right thereunder to require any payment to be made by any Loan Party, and (iv) will not result in the creation or imposition of any Lien on any material asset of any Loan Party (other than pursuant to the Loan Documents and Liens permitted by the Credit Agreement); except with respect to any violation or default referred to in clause (ii)(A) or (iii) above, to the extent that such violation or default could not reasonably be expected to have a Material Adverse Effect.

 

SECTION 8.      Reference to and Effect on the Loan Documents. On and after the Amendment Effective Date, each reference in the Original Credit Agreement to “this Agreement,” “hereunder,” “hereof” or words of like import referring the Original Credit Agreement, and each reference in each of the other Loan Documents to “the Credit Agreement,” “thereunder,” “thereof” or words of like import referring to the Original Credit Agreement, shall mean and be a reference to the Amended Credit Agreement. The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or any Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents. This Amendment shall not constitute a novation of the Original Credit Agreement or any of the Loan Documents. This Amendment shall constitute an Additional Credit Extension Amendment.

 

SECTION 9.      Reaffirmation of Guarantees and Security Interests. Each Loan Party hereby acknowledges its receipt of a copy of this Amendment and its review of the terms and conditions hereof and consents to the terms and conditions of this Amendment and the transactions contemplated hereby, including the extension of credit in the form of the Incremental Term B-2 Loans. Each Loan Party hereby (a) affirms and confirms its guarantees, pledges, grants and other undertakings under the Loan Documents to which it is a party, (b) agrees that (i) each Loan Document to which it is a party shall continue to be in full force and effect and (ii) all guarantees, pledges, grants and other undertakings thereunder shall continue to be in full force and effect and shall accrue to the benefit of the Secured Parties, including the Incremental Term B-2 Lenders, and (c) acknowledges that from and after the Delayed Draw Funding Date, all Incremental Term B-2 Loans from time to time outstanding shall be Obligations.

 

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SECTION 10.      Applicable Law; Waiver of Jury Trial.

 

(A)     THIS AMENDMENT SHALL BE CONSTRUED AND INTERPRETED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

 

(B)     EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AMENDMENT AND FOR ANY COUNTERCLAIM HEREIN.

 

SECTION 11.      Headings. The Section headings used herein are for convenience of reference only, are not part of this Amendment and are not to affect the construction of, or to be taken into consideration in interpreting, this Amendment.

 

SECTION 12.      Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which when so executed and delivered shall be deemed to be an original, but all of which when taken together shall constitute a single instrument. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or any other electronic transmission shall be effective as delivery of an original executed counterpart hereof.

 

SECTION 13.       Post-Closing Matters. Within 90 days after the Amendment Effective Date (or such longer period as the Administrative Agent may agree in its reasonable discretion), the Borrower, or the applicable Loan Party shall deliver either the items listed in paragraph (a) or the items listed in paragraph (b) as follows:

 

(a)     (i) an opinion or email confirmation from local counsel in each jurisdiction where a Mortgaged Property is located, in form and substance reasonably satisfactory to the Administrative Agent, to the effect that:

 

(A)     the recording of the existing Mortgage is the only filing or recording necessary to give constructive notice to third parties of the lien created by such Mortgage as security for the Obligations (as defined in each Mortgage), including the Obligations evidenced by this Amendment and the other documents executed in connection herewith, for the benefit of the Secured Parties; and

 

(B)     no other documents, instruments, filings, recordings, re-recordings, re-filings or other actions, including, without limitation, the payment of any mortgage recording taxes or similar taxes, are necessary or appropriate under applicable law in order to maintain the continued enforceability, validity or priority of the lien created by such Mortgage as security for the Obligations, including the Obligations evidenced by the Original Credit Agreement as amended by this Amendment and the other documents executed in connection herewith, for the benefit of the Secured Parties; and

 

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(ii)     a title search to the applicable Mortgaged Property demonstrating that such Mortgaged Property is free and clear of all Liens other than Permitted Encumbrances; or

 

(b)     with respect to the existing Mortgages, the following, in each case in form and substance reasonably acceptable to the Administrative Agent:

 

(i)     with respect to each Mortgage encumbering a Mortgaged Property, an amendment thereof (each a “Mortgage Amendment”) duly executed and acknowledged by the applicable Loan Party, and in form for recording in the recording office where each Mortgage was recorded, together with such certificates, affidavits, questionnaires or returns as shall be required in connection with the recording or filing thereof under applicable law, in each case in form and substance reasonably satisfactory to the Administrative Agent;

 

(ii)     with respect to each Mortgage Amendment, a date down endorsement (each, a “Title Endorsement,” collectively, the “Title Endorsements”) to the existing Title Policy relating to the Mortgage encumbering the Mortgaged Property subject to such Mortgage assuring the Administrative Agent that such Mortgage, as amended by such Mortgage Amendment is a valid and enforceable first priority lien on such Mortgaged Property in favor of the Administrative Agent for the benefit of the Secured Parties free and clear of all Liens other than Permitted Encumbrances or otherwise consented to by the Administrative Agent of such Mortgaged Property, and such Title Endorsement shall otherwise be in form and substance reasonably satisfactory to the Administrative Agent;

 

(iii)     with respect to each Mortgage Amendment, opinions of local counsel to the Loan Parties, which opinions (x) shall be addressed to the Administrative Agent and the Secured Parties, (y) shall cover the enforceability of the respective Mortgage as amended by such Mortgage Amendment and (z) shall be in form and substance reasonably satisfactory to the Administrative Agent;

 

(iv)     with respect to each Mortgaged Property, such affidavits, certificates, information and instruments of indemnification (including without limitation, a so-called “gap” indemnification) as shall be required by the title company to induce the title company to issue the Title Endorsements; and

 

(v)     evidence acceptable to the Administrative Agent of payment by the Borrower of all applicable title insurance premiums, search and examination charges, survey costs and related charges, mortgage recording taxes, fees, charges, costs and expenses required for the recording of the Mortgage Amendments and issuance of the Title Endorsements.

 

[Signature pages to follow]

 

10

 

 

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 written above.

 

	
			 

				
			CABLE ONE, INC., as the Borrower

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Steven S. Cochran

				
			 

			
	
			 

				
			 

				
			Name:   Steven S. Cochran

			Title:     Chief Financial Officer

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 	 
	 	CABLE ONE VOIP LLC, as a Guarantor	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Steven S. Cochran	 
	 	 	
			Name:   Steven S. Cochran

			Title:     Vice President

				 
	 	 	 	 
	 	 	 	 
	 	
			AVENUE BROADBAND COMMUNICATIONS

			LLC, as a Guarantor

				 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Steven S. Cochran	 
	 	 	
			Name:   Steven S. Cochran

			Title:     Vice President

				 
	 	 	 	 
	 	 	 	 
	 	
			TELECOMMUNICATIONS MANAGEMENT,

			LLC, as a Guarantor

			
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Steven S. Cochran	 
	 	 	
			Name:   Steven S. Cochran

			Title:     Vice President

				 
	 	 	 	 
	 	 	 	 
	 	
			ULTRA COMMUNICATIONS GROUP, LLC, as a

			Guarantor

			
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Steven S. Cochran	 
	 	 	
			Name:   Steven S. Cochran

			Title:     Vice President

				 

 

 

[Signature Page to Amendment No. 2]

 

 

 

	
			 

				
			JPMORGAN CHASE BANK, N.A, as

			Administrative Agent

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Alicia Schreibstein

				
			 

			
	
			 

				
			 

				
			Name:    Alicia Schreibstein

			Title:      Executive Director

				
			 

			

 

 

[Signature Page to Amendment No. 2]

 

 

 

	
			 

				
			COBANK, ACB, as the Initial Incremental Term

			B-2 Lender

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Victor Padilla

				
			 

			
	
			 

				
			 

				
			Name:   Victor Padilla

			Title:     Vice President

				
			 

			
	
			 

				
			 

				
			 

				
			 

			

 

 

[Signature Page to Amendment No. 2]

 

 

 

Schedule I

 

 

Incremental Term B-2 Loan Commitments

 

	
			 

			Initial Incremental Term B-2 Lender

				
			 

			Incremental Term B-2 Loan Commitment

			
	
			 

			CoBank, ACB

				
			 

			$250,000,000

			
	
			 

			Total

				
			 

			$250,000,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}]]