Document:

Exhibit 10.1

 

EXECUTION COPY

 

 

AMENDED AND RESTATED CREDIT
AGREEMENT

 

DATED AS OF JANUARY 20, 2010,

 

among

 

ATLANTIC TELE-NETWORK, INC.,

 

as Borrower,

 

each of the

 

GUARANTORS

 

referred to herein,

 

COBANK, ACB,

 

as Administrative Agent, Arranger, an Issuing Lender and a Lender,

 

and

 

the other Lenders referred to herein

 

 

 

TABLE OF CONTENTS

(Continued)

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1

  	
  AMOUNTS
  AND TERMS OF FACILITIES

  	
  2

  
	
   

  	
  1.1

  	
  Facilities

  	
  2

  
	
   

  	
  1.2

  	
  Interest

  	
  7

  
	
   

  	
  1.3

  	
  Notice
  of Borrowing, Conversion or Continuation of Loans

  	
  11

  
	
   

  	
  1.4

  	
  Fees
  and Expenses

  	
  12

  
	
   

  	
  1.5

  	
  Payments

  	
  14

  
	
   

  	
  1.6

  	
  Repayments
  of Loans; Reduction of the Revolver Loan Commitment

  	
  14

  
	
   

  	
  1.7

  	
  Voluntary
  Prepayments and Other Mandatory Repayments

  	
  16

  
	
   

  	
  1.8

  	
  Application
  of Prepayments and Repayments; Payment of Breakage Fees, Etc

  	
  18

  
	
   

  	
  1.9

  	
  Loan
  Accounts

  	
  18

  
	
   

  	
  1.10

  	
  Changes
  in LIBOR Rate Availability

  	
  18

  
	
   

  	
  1.11

  	
  Capital
  Adequacy and Other Adjustments

  	
  19

  
	
   

  	
  1.12

  	
  Optional
  Prepayment/Replacement of Lender in Respect of Increased Costs or Defaulted
  Lenders

  	
  20

  
	
   

  	
  1.13

  	
  Taxes

  	
  21

  
	
   

  	
  1.14

  	
  Changes
  in Tax Laws

  	
  22

  
	
   

  	
  1.15

  	
  Term
  of this Agreement

  	
  23

  
	
   

  	
  1.16

  	
  Letter
  of Credit Liability

  	
  23

  
	
   

  	
  1.17

  	
  Defaulting
  Lenders

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2

  	
  AFFIRMATIVE
  COVENANTS

  	
  25

  
	
   

  	
  2.1

  	
  Compliance
  With Laws

  	
  25

  
	
   

  	
  2.2

  	
  Maintenance
  of Books and Records; Properties; Insurance

  	
  25

  
	
   

  	
  2.3

  	
  Inspection

  	
  27

  
	
   

  	
  2.4

  	
  Legal
  Existence, Etc

  	
  27

  
	
   

  	
  2.5

  	
  Use of
  Proceeds

  	
  27

  
	
   

  	
  2.6

  	
  Further
  Assurances; Notices

  	
  27

  
	
   

  	
  2.7

  	
  CoBank
  Equity

  	
  28

  
	
   

  	
  2.8

  	
  Collateral
  Assignments of Material Contracts

  	
  29

  
	
   

  	
  2.9

  	
  Investment
  Company Act

  	
  29

  
	
   

  	
  2.10

  	
  Payment
  of Obligations

  	
  29

  
	
   

  	
  2.11

  	
  Environmental
  Laws

  	
  29

  
	
   

  	
  2.12

  	
  Creation
  or Acquisition of Subsidiaries

  	
  30

  
	
   

  	
  2.13

  	
  Interest
  Rate Protection

  	
  31

  
	
   

  	
  2.14

  	
  ERISA

  	
  32

  
	
   

  	
  2.15

  	
  Post-Closing
  Letter

  	
  32

  
	
   

  	
  2.16

  	
  Modifications
  to Verizon Acquisition Documentation

  	
  32

  
	
   

  	
  2.17

  	
  Notices
  Regarding Verizon Acquisition

  	
  32

  

 

i

 

TABLE OF CONTENTS

(Continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.18

  	
  Collateral
  Regarding Verizon Acquisition

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3

  	
  NEGATIVE
  COVENANTS

  	
  33

  
	
   

  	
  3.1

  	
  Indebtedness

  	
  33

  
	
   

  	
  3.2

  	
  Liens
  and Related Matters

  	
  35

  
	
   

  	
  3.3

  	
  Investments

  	
  36

  
	
   

  	
  3.4

  	
  Contingent
  Obligations

  	
  37

  
	
   

  	
  3.5

  	
  Restricted
  Junior Payments

  	
  38

  
	
   

  	
  3.6

  	
  Restriction
  on Fundamental Changes

  	
  39

  
	
   

  	
  3.7

  	
  Disposal
  of Assets or Subsidiary Stock

  	
  39

  
	
   

  	
  3.8

  	
  Transactions
  with Affiliates

  	
  40

  
	
   

  	
  3.9

  	
  Management
  Fees

  	
  41

  
	
   

  	
  3.10

  	
  Conduct
  of Business

  	
  41

  
	
   

  	
  3.11

  	
  Fiscal
  Year

  	
  41

  
	
   

  	
  3.12

  	
  Modification
  of Agreements

  	
  41

  
	
   

  	
  3.13

  	
  Inconsistent
  Agreements

  	
  41

  
	
   

  	
  3.14

  	
  Hedge
  Agreements

  	
  41

  
	
   

  	
  3.15

  	
  Ownership
  of Licenses

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4

  	
  FINANCIAL
  COVENANTS AND REPORTING

  	
  42

  
	
   

  	
  4.1

  	
  Total
  Leverage Ratio

  	
  42

  
	
   

  	
  4.2

  	
  Total
  Interest Coverage Ratio

  	
  42

  
	
   

  	
  4.3

  	
  Equity
  to Assets Ratio

  	
  42

  
	
   

  	
  4.4

  	
  Fixed
  Charge Coverage Ratio

  	
  42

  
	
   

  	
  4.5

  	
  Financial
  Statements and Other Reports

  	
  42

  
	
   

  	
  4.6

  	
  Accounting
  Terms; Utilization of GAAP for Purposes of Calculations Under Agreement

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
  46

  
	
   

  	
  5.1

  	
  Disclosure

  	
  46

  
	
   

  	
  5.2

  	
  No
  Material Adverse Effect

  	
  46

  
	
   

  	
  5.3

  	
  Organization,
  Powers, Authorization and Good Standing

  	
  47

  
	
   

  	
  5.4

  	
  Compliance
  of Loan Documents and Borrowings

  	
  47

  
	
   

  	
  5.5

  	
  Compliance
  with Applicable Law; Governmental Approvals

  	
  48

  
	
   

  	
  5.6

  	
  Tax
  Returns and Payments

  	
  48

  
	
   

  	
  5.7

  	
  Environmental
  Matters

  	
  48

  
	
   

  	
  5.8

  	
  Financial
  Statements

  	
  48

  
	
   

  	
  5.9

  	
  Intellectual
  Property

  	
  48

  
	
   

  	
  5.10

  	
  Litigation,
  Investigations, Audits, Etc

  	
  49

  
	
   

  	
  5.11

  	
  Employee
  Labor Matters

  	
  49

  
	
   

  	
  5.12

  	
  ERISA
  Compliance

  	
  49

  
	
   

  	
  5.13

  	
  Communications
  Regulatory Matters

  	
  50

  

 

ii

 

TABLE OF CONTENTS

(Continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.14

  	
  Perfection

  	
  51

  
	
   

  	
  5.15

  	
  Solvency

  	
  51

  
	
   

  	
  5.16

  	
  Investment
  Company Act

  	
  52

  
	
   

  	
  5.17

  	
  Intentionally
  omitted

  	
  52

  
	
   

  	
  5.18

  	
  Title
  to Properties

  	
  52

  
	
   

  	
  5.19

  	
  Subsidiaries

  	
  52

  
	
   

  	
  5.20

  	
  Transactions
  with Affiliates

  	
  52

  
	
   

  	
  5.21

  	
  Patriot
  Act

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6

  	
  EVENTS
  OF DEFAULT AND RIGHTS AND REMEDIES

  	
  52

  
	
   

  	
  6.1

  	
  Event
  of Default

  	
  52

  
	
   

  	
  6.2

  	
  Termination
  of Loan Commitments

  	
  55

  
	
   

  	
  6.3

  	
  Acceleration

  	
  56

  
	
   

  	
  6.4

  	
  Rights
  of Collection

  	
  56

  
	
   

  	
  6.5

  	
  Consents

  	
  56

  
	
   

  	
  6.6

  	
  Intentionally
  omitted

  	
  56

  
	
   

  	
  6.7

  	
  Set
  Off and Sharing of Payments

  	
  56

  
	
   

  	
  6.8

  	
  Application
  of Payments

  	
  57

  
	
   

  	
  6.9

  	
  Adjustments

  	
  57

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7

  	
  CONDITIONS
  TO LOANS

  	
  58

  
	
   

  	
  7.1

  	
  Conditions
  to Effectiveness

  	
  58

  
	
   

  	
  7.2

  	
  Conditions
  to Term Loan B

  	
  62

  
	
   

  	
  7.3

  	
  Conditions
  to All Loans

  	
  66

  
	
   

  	
  7.4

  	
  Post-Closing
  Obligations

  	
  67

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8

  	
  ASSIGNMENT
  AND PARTICIPATION

  	
  67

  
	
   

  	
  8.1

  	
  Assignments
  and Participations in Loans and Notes

  	
  67

  
	
   

  	
  8.2

  	
  Administrative
  Agent

  	
  70

  
	
   

  	
  8.3

  	
  Amendments,
  Consents and Waivers for Certain Actions

  	
  76

  
	
   

  	
  8.4

  	
  Disbursement
  of Funds

  	
  76

  
	
   

  	
  8.5

  	
  Disbursements
  of Advances; Payments

  	
  76

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9

  	
  MISCELLANEOUS

  	
  78

  
	
   

  	
  9.1

  	
  Indemnities

  	
  78

  
	
   

  	
  9.2

  	
  Amendments
  and Waivers

  	
  78

  
	
   

  	
  9.3

  	
  Notices

  	
  80

  
	
   

  	
  9.4

  	
  Failure
  or Indulgence Not Waiver; Remedies Cumulative

  	
  80

  
	
   

  	
  9.5

  	
  Marshaling;
  Payments Set Aside

  	
  81

  
	
   

  	
  9.6

  	
  Severability

  	
  81

  
	
   

  	
  9.7

  	
  Lenders’
  Obligations Several; Independent Nature of Lenders’ Rights

  	
  81

  
	
   

  	
  9.8

  	
  Headings

  	
  81

  

 

iii

 

TABLE OF CONTENTS

(Continued)

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.9

  	
  Applicable
  Law

  	
  81

  
	
   

  	
  9.10

  	
  Successors
  and Assigns

  	
  81

  
	
   

  	
  9.11

  	
  No
  Fiduciary Relationship

  	
  82

  
	
   

  	
  9.12

  	
  Construction

  	
  82

  
	
   

  	
  9.13

  	
  Confidentiality

  	
  82

  
	
   

  	
  9.14

  	
  Consent
  to Jurisdiction and Service of Process

  	
  82

  
	
   

  	
  9.15

  	
  Waiver
  of Jury Trial

  	
  83

  
	
   

  	
  9.16

  	
  Survival
  of Warranties and Certain Agreements

  	
  84

  
	
   

  	
  9.17

  	
  Entire
  Agreement

  	
  84

  
	
   

  	
  9.18

  	
  Counterparts;
  Effectiveness

  	
  84

  
	
   

  	
  9.19

  	
  Patriot
  Act

  	
  84

  
	
   

  	
  9.20

  	
  Guaranty
  of Secured Obligations by Guarantors

  	
  84

  
	
   

  	
  9.21

  	
  FCC
  and PUC Compliance

  	
  89

  
	
   

  	
  9.22

  	
  Effectiveness
  of Amendment and Restatement; No Novation; Waiver

  	
  89

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10

  	
  DEFINITIONS

  	
  89

  
	
   

  	
  10.1

  	
  Certain
  Defined Terms

  	
  89

  
	
   

  	
  10.2

  	
  Other Definitional Provisions

  	
  113

  

 

iv

 

SCHEDULES

 

	
  Schedule
  1.1

  	
   

  	
  Commitments

  
	
  Schedule
  3.3(C)

  	
   

  	
  Existing
  Investments

  
	
  Schedule
  3.8

  	
   

  	
  Transactions
  with Affiliates

  
	
  Schedule
  5.3(A)

  	
   

  	
  Jurisdiction
  of Organization

  
	
  Schedule
  5.3(C)

  	
   

  	
  Qualification
  to Transact Business

  
	
  Schedule
  5.4

  	
   

  	
  Compliance

  
	
  Schedule
  5.10

  	
   

  	
  Litigation,
  Etc.

  
	
  Schedule
  5.11

  	
   

  	
  Labor
  Matters

  
	
  Schedule
  5.13(A)

  	
   

  	
  License
  Information

  
	
  Schedule
  5.13(B)

  	
   

  	
  Valid
  Licenses

  
	
  Schedule
  5.19

  	
   

  	
  Subsidiaries

  
	
  Schedule
  9.3

  	
   

  	
  Addresses
  of Lenders and Administrative Agent

  

 

EXHIBITS

 

	
  Exhibit 1.3

  	
   

  	
  Form of
  Notice of Borrowing/Conversion/Continuation

  	 

	
  Exhibit 2.12

  	
   

  	
  Form of
  Joinder Agreement

  
	
  Exhibit 4.5(C)

  	
   

  	
  Form of
  Compliance Certificate

  
	
  Exhibit 10.1(A)

  	
   

  	
  Form of
  Assignment and Assumption

  
	
  Exhibit 10.1(B)

  	
   

  	
  Form of
  Revolver Note

  
	
  Exhibit 10.1(C)

  	
   

  	
  Form of
  Term Loan A Note

  
	
  Exhibit 10.1(D)

  	
   

  	
  Form of Term Loan B
  Note

  

 

v

 

INDEX OF DEFINED TERMS

 

	
  Defined
  Term

  	
   

  	
  Defined in Section

  
	
   

  	
   

  	
   

  
	
  Accounting
  Change

  	
   

  	
  §4.6

  
	
  Acquired
  Companies

  	
   

  	
  §10.1

  
	
  Acquisition

  	
   

  	
  §10.1

  
	
  Acquisition
  Approval Date

  	
   

  	
  §10.1

  
	
  Act

  	
   

  	
  §10.1

  
	
  Adjustment
  Date

  	
   

  	
  §10.1

  
	
  Administrative
  Agent

  	
   

  	
  §10.1

  
	
  Affected
  Lender

  	
   

  	
  §1.12

  
	
  Affiliate

  	
   

  	
  §10.1

  
	
  Agreement

  	
   

  	
  §10.1

  
	
  Amendment
  Date

  	
   

  	
  Preamble

  
	
  Applicable
  Law

  	
   

  	
  §10.1

  
	
  Approved
  Fund

  	
   

  	
  §10.1

  
	
  Arranger

  	
   

  	
  §10.1

  
	
  Asset
  Disposition

  	
   

  	
  §10.1

  
	
  Assignment
  and Assumption

  	
   

  	
  §10.1

  
	
  Available
  Revolver Loan Commitment

  	
   

  	
  §10.1

  
	
  Avoidance
  Provisions

  	
   

  	
  §9.20(A)

  
	
  AWCC

  	
   

  	
  §10.1

  
	
  Bankruptcy
  Code

  	
   

  	
  §10.1

  
	
  Base
  Rate

  	
   

  	
  §10.1

  
	
  Base
  Rate Loans

  	
   

  	
  §10.1

  
	
  Base
  Rate Margin

  	
   

  	
  §10.1

  
	
  BDC

  	
   

  	
  §10.1

  
	
  Benefited
  Lender

  	
   

  	
  §6.9

  
	
  Borrower

  	
   

  	
  Preamble

  
	
  Breakage
  Fee

  	
   

  	
  §1.4(C)

  
	
  Budgets

  	
   

  	
  §4.5(G)

  
	
  Business
  Day

  	
   

  	
  §10.1

  
	
  Calculation
  Period

  	
   

  	
  §10.1

  
	
  Capital
  Lease

  	
   

  	
  §10.1

  
	
  Cash
  Equivalents

  	
   

  	
  §10.1

  
	
  Certificate
  of Exemption

  	
   

  	
  §1.13(B)

  
	
  Change
  of Control

  	
   

  	
  §10.1

  
	
  Choice

  	
   

  	
  §10.1

  
	
  Closing
  Date

  	
   

  	
  §10.1

  
	
  CoBank

  	
   

  	
  Preamble

  
	
  Collateral

  	
   

  	
  §10.1

  
	
  Collateral
  Contract Assignments

  	
   

  	
  §10.1

  
	
  Communications
  Act

  	
   

  	
  §10.1

  

 

vi

 

INDEX OF DEFINED TERMS

(Continued)

 

	
  Communications
  System

  	
   

  	
  §10.1

  
	
  Compliance
  Certificate

  	
   

  	
  §4.5(C)

  
	
  Contingent
  Obligation

  	
   

  	
  §10.1

  
	
  Cure
  Loans

  	
   

  	
  §8.5(A)

  
	
  Default

  	
   

  	
  §10.1

  
	
  Defaulting
  Lender

  	
   

  	
  §10.1

  
	
  Domestic
  Subsidiary

  	
   

  	
  §10.1

  
	
  EBITDA

  	
   

  	
  §10.1

  
	
  Environmental
  Laws

  	
   

  	
  §10.1

  
	
  Equity

  	
   

  	
  §10.1

  
	
  Equity
  to Assets Ratio

  	
   

  	
  §10.1

  
	
  ERISA

  	
   

  	
  §10.1

  
	
  ERISA Affiliate

  	
   

  	
  §10.1

  
	
  ERISA Event

  	
   

  	
  §10.1

  
	
  Event
  of Default

  	
   

  	
  §6.1

  
	
  Excluded
  Subsidiaries

  	
   

  	
  §10.1

  
	
  Excluded
  Taxes

  	
   

  	
  §10.1

  
	
  Existing
  Credit Agreement

  	
   

  	
  Recitals

  
	
  Facility(ies)

  	
   

  	
  §10.1

  
	
  FCC

  	
   

  	
  §10.1

  
	
  FDPA

  	
   

  	
  §2.2

  
	
  Fixed
  Charge

  	
   

  	
  §10.1

  
	
  Fixed
  Charge Coverage Ratio

  	
   

  	
  §10.1

  
	
  Foreign
  Lender

  	
   

  	
  §1.13(B)

  
	
  Foreign
  Subsidiary

  	
   

  	
  §10.1

  
	
  Foreign
  Subsidiary Holding Company

  	
   

  	
  §10.1

  
	
  Fund

  	
   

  	
  §10.1

  
	
  Funding
  Date

  	
   

  	
  §7.3

  
	
  Funding
  Default

  	
   

  	
  §10.1

  
	
  GAAP

  	
   

  	
  §10.1

  
	
  Governmental
  Approvals

  	
   

  	
  §10.1

  
	
  Governmental
  Authority

  	
   

  	
  §10.1

  
	
  GTT

  	
   

  	
  §10.1

  
	
  Guarantor(s)

  	
   

  	
  Preamble

  
	
  Hedge
  Agreements

  	
   

  	
  §10.1

  
	
  Incremental
  Term Loan(s)

  	
   

  	
  §1.1(C)

  
	
  Incremental
  Term Loan Commitment(s)

  	
   

  	
  §1.1(C)

  
	
  Incremental
  Term Loan Facility(ies)

  	
   

  	
  §1.1(C)

  
	
  Indebtedness

  	
   

  	
  §10.1

  
	
  Indemnitees

  	
   

  	
  §9.1

  
	
  Initial
  Funding Date

  	
   

  	
  §10.1

  
	
  Intellectual
  Property Rights

  	
   

  	
  §5.9

  
	
  Interest
  Period

  	
   

  	
  §10.1

  

 

vii

 

INDEX OF DEFINED TERMS

(Continued)

 

	
  Investment

  	
   

  	
  §10.1

  
	
  ION
  HoldCo

  	
   

  	
  §10.1

  
	
  IRC

  	
   

  	
  §10.1

  
	
  ISP

  	
   

  	
  §1.1(F)

  
	
  Issuing
  Lender

  	
   

  	
  §10.1

  
	
  Joinder
  Agreement

  	
   

  	
  §10.1

  
	
  Joint
  Venture

  	
   

  	
  §10.1

  
	
  Lender(s)

  	
   

  	
  §10.1

  
	
  Lender
  Insolvency Event

  	
   

  	
  §10.1

  
	
  Letter(s) of
  Credit

  	
   

  	
  §1.1(F)

  
	
  Letter
  of Credit Liability

  	
   

  	
  §10.1

  
	
  Letter
  of Non-Exemption

  	
   

  	
  §1.13(B)

  
	
  LIBOR

  	
   

  	
  §10.1

  
	
  LIBOR
  Interest Period

  	
   

  	
  §1.2(C)

  
	
  LIBOR
  Loans

  	
   

  	
  §10.1

  
	
  LIBOR
  Margin

  	
   

  	
  §10.1

  
	
  Licenses

  	
   

  	
  §10.1

  
	
  Lien

  	
   

  	
  §10.1

  
	
  Loan(s)

  	
   

  	
  §10.1

  
	
  Loan
  Commitment(s)

  	
   

  	
  §10.1

  
	
  Loan
  Documents

  	
   

  	
  §10.1

  
	
  Loan
  Party(ies)

  	
   

  	
  Preamble

  
	
  Material
  Adverse Effect

  	
   

  	
  §10.1

  
	
  Material
  Contracts

  	
   

  	
  §10.1

  
	
  Material
  Leased Property

  	
   

  	
  §2.6

  
	
  Material
  Owned Property

  	
   

  	
  §2.6

  
	
  Materially
  Adverse

  	
   

  	
  §10.1

  
	
  Maximum
  Guarantor Liability

  	
   

  	
  §9.20(A)

  
	
  Multi-employer
  Plan

  	
   

  	
  §10.1

  
	
  Net
  Proceeds

  	
   

  	
  §10.1

  
	
  Newco
  Parent

  	
   

  	
  §10.1

  
	
  Non-Consenting
  Lender

  	
   

  	
  §9.2

  
	
  Non-Funding
  Lender

  	
   

  	
  §8.5(A)

  
	
  Non
  Pro Rata Loan

  	
   

  	
  §8.5(A)

  
	
  Note(s)

  	
   

  	
  §10.1

  
	
  Notice
  of Borrowing/Conversion/Continuation

  	
   

  	
  §1.3

  
	
  NTIA

  	
   

  	
  §10.1

  
	
  Obligations

  	
   

  	
  §10.1

  
	
  Other
  Debtor Relief Law

  	
   

  	
  §9.20(A)

  
	
  Other
  Parties

  	
   

  	
  §9.20(G)(iii)

  
	
  Parent
  Company

  	
   

  	
  §10.1

  
	
  Participant(s)

  	
   

  	
  §8.1(D)

  
	
  Partnerships

  	
   

  	
  §10.1

  

 

viii

 

INDEX OF DEFINED TERMS

(Continued)

 

	
  Patriot
  Act

  	
   

  	
  §9.19

  
	
  PBGC

  	
   

  	
  §10.1

  
	
  Pension
  Plan

  	
   

  	
  §10.1

  
	
  Permitted
  Acquisition and Investment

  	
   

  	
  §10.1

  
	
  Permitted
  Encumbrances

  	
   

  	
  §10.1

  
	
  Permitted
  RTPark Subsidiary

  	
   

  	
  §10.1

  
	
  Permitted
  Stimulus Indebtedness

  	
   

  	
  §10.1

  
	
  Person

  	
   

  	
  §10.1

  
	
  Plan

  	
   

  	
  §10.1

  
	
  Pledge
  and Security Agreement

  	
   

  	
  §10.1

  
	
  Portfolio
  Interest Exemption Certificate

  	
   

  	
  §1.13(B)

  
	
  Post-Closing
  Letter

  	
   

  	
  §10.1

  
	
  Potential
  Defaulting Lender

  	
   

  	
  §10.1

  
	
  Prime
  Rate

  	
   

  	
  §10.1

  
	
  Pro
  forma Basis

  	
   

  	
  §10.1

  
	
  Pro
  Rata Share

  	
   

  	
  §10.1

  
	
  Proposed
  Change

  	
   

  	
  §9.2

  
	
  PUC

  	
   

  	
  §10.1

  
	
  PUC
  Laws

  	
   

  	
  §10.1

  
	
  Register

  	
   

  	
  §8.1(C)

  
	
  Replacement
  Lender

  	
   

  	
  §1.12(A)

  
	
  Representatives

  	
   

  	
  §8.2(E)

  
	
  Related
  Parties

  	
   

  	
  §10.1

  
	
  Related
  Secured Hedge Agreement

  	
   

  	
  §10.1

  
	
  Reportable
  Event

  	
   

  	
  §10.1

  
	
  Requisite
  Lenders

  	
   

  	
  §10.1

  
	
  Restricted
  Junior Payment

  	
   

  	
  §10.1

  
	
  Revolver
  Commitment Fee

  	
   

  	
  §1.4(A)(i)

  
	
  Revolver
  Expiration Date

  	
   

  	
  §10.1

  
	
  Revolver
  Facility

  	
   

  	
  §10.1

  
	
  Revolver
  Lender

  	
   

  	
  §10.1

  
	
  Revolver
  Loan Commitment

  	
   

  	
  §10.1

  
	
  Revolver
  Loan(s)

  	
   

  	
  §10.1

  
	
  Revolver
  Note(s)

  	
   

  	
  §10.1

  
	
  RTPark
  Preferred Stock

  	
   

  	
  §10.1

  
	
  RTPark
  Program

  	
   

  	
  §10.1

  
	
  RUS

  	
   

  	
  §10.1

  
	
  SEC

  	
   

  	
  §4.5(A)

  
	
  Secured
  Hedge Agreement

  	
   

  	
  §10.1

  
	
  Secured
  Obligations

  	
   

  	
  §10.1

  
	
  Secured
  Parties

  	
   

  	
  §10.1

  
	
  Security
  Agreement Collateral

  	
   

  	
  §5.14

  
	
  Security
  Documents

  	
   

  	
  §10.1

  

 

ix

 

INDEX OF DEFINED TERMS

(Continued)

 

	
  Security
  Interest

  	
   

  	
  §10.1

  
	
  Statement

  	
   

  	
  §4.5(B)

  
	
  Stimulus
  Recipient Subsidiary

  	
   

  	
  §10.1

  
	
  Stimulus
  Source Agency

  	
   

  	
  §10.1

  
	
  Subordinated
  Intercompany Lender

  	
   

  	
  §9.20(J)

  
	
  Subsidiary

  	
   

  	
  §10.1

  
	
  Substitute
  Lender

  	
   

  	
  §9.2

  
	
  Tax
  Liabilities

  	
   

  	
  §1.13(A)

  
	
  Term
  Loan A

  	
   

  	
  §10.1

  
	
  Term
  Loan A Facility

  	
   

  	
  §10.1

  
	
  Term
  Loan A Lender

  	
   

  	
  §10.1

  
	
  Term
  Loan A Maturity Date

  	
   

  	
  §10.1

  
	
  Term
  Loan A Note(s)

  	
   

  	
  §10.1

  
	
  Term
  Loan B

  	
   

  	
  §10.1

  
	
  Term
  Loan B Availability Expiration Date

  	
   

  	
  §10.1

  
	
  Term
  Loan B Commitment

  	
   

  	
  §10.1

  
	
  Term
  Loan B Commitment Fee

  	
   

  	
  §1.4(A)(ii)

  
	
  Term
  Loan B Facility

  	
   

  	
  §10.1

  
	
  Term
  Loan B Lender

  	
   

  	
  §10.1

  
	
  Term
  Loan B Maturity Date

  	
   

  	
  §10.1

  
	
  Term
  Loan B Note(s)

  	
   

  	
  §10.1

  
	
  Term
  Loan Facilities

  	
   

  	
  §10.1

  
	
  Term
  Loan Maturity Date

  	
   

  	
  §10.1

  
	
  Term
  Loan Notes

  	
   

  	
  §10.1

  
	
  Total
  Interest Coverage Ratio

  	
   

  	
  §10.1

  
	
  Total
  Lender Loan Commitment

  	
   

  	
  §10.1

  
	
  Total
  Leverage Ratio

  	
   

  	
  §10.1

  
	
  Transition
  Services Agreement

  	
   

  	
  §10.1

  
	
  UCP

  	
   

  	
  §1.1(F)

  
	
  Verizon
  Acquisition

  	
   

  	
  §10.1

  
	
  Verizon
  Acquisition Documentation

  	
   

  	
  §10.1

  
	
  Verizon
  Debtors

  	
   

  	
  §7.1(D)(vi)

  
	
  Verizon Purchase Agreement

  	
   

  	
  §10.1

  

 

x

 

AMENDED AND RESTATED CREDIT
AGREEMENT

 

This
AMENDED AND RESTATED CREDIT AGREEMENT is entered into
as of January 20, 2010 (the “Amendment Date”),
among ATLANTIC TELE-NETWORK, INC.,
a Delaware corporation (“Borrower”),
each of the Subsidiaries of Borrower which is or hereafter becomes a guarantor
of the Secured Obligations (individually, a “Guarantor”
and, collectively, the “Guarantors”;
and together with Borrower, individually a “Loan Party”
and, collectively, the “Loan Parties”),
COBANK, ACB (individually, “CoBank”), as Administrative Agent,
Arranger, an Issuing Lender and a Lender and the Lenders.  Capitalized terms used and not otherwise
defined herein shall have the meanings given to them in Subsection 10.1.

 

R  E  C
I  T  A  L  S:

 

WHEREAS, Borrower, Administrative
Agent and Lenders previously entered into a Credit Agreement, dated as of September 10,
2008 (the “Existing Credit Agreement”),
pursuant to which Lenders extended certain financial accommodations to Borrower
consisting of the Term Loan A Facility and the Revolver Facility, the proceeds
of which were for working capital, to finance capital expenditures, to finance
certain Permitted Acquisitions and Investments (each as defined therein)
permitted thereunder, to finance certain Restricted Junior Payments (as defined
therein) permitted thereunder, to support the issuance of Letters of Credit, to
repay the then existing debt of Borrower, to finance certain costs associated
with the Revolver Facility and the Term Loan A Facility and other lawful
corporate purposes of Borrower and its Subsidiaries;

 

WHEREAS,
the outstanding principal balance of the Term Loan A and the Revolver Loans
as of the date hereof are $73,875,000.00 and $0.00, respectively, and such
Loans shall remain outstanding under this Agreement;

 

WHEREAS,
Borrower, Administrative Agent and the Requisite Lenders under the Existing
Credit Agreement and the Term Loan B Lenders have agreed to amend and restate
the Existing Credit Agreement as described herein, including to add an
Incremental Term Loan Facility under the Existing Credit Agreement designated
as the Term Loan B under this Agreement, the proceeds of which will be used to finance the
Verizon Acquisition and certain costs associated with this Agreement; and

 

WHEREAS,
the Loan Parties secured all of the Secured Obligations under the Existing
Credit Agreement and the other Loan Documents (as defined in the Existing
Credit Agreement) by granting to Administrative Agent, for the benefit of the
Secured Parties, a first priority security interest in and lien upon all or
substantially all of its respective then owned or thereafter acquired personal
and real property (subject to the exceptions set forth in the Existing Credit
Agreement and the other Loan Documents (as defined in the Existing Credit Agreement))
and the Secured Obligations under this Agreement and the other Loan Documents
continue to be secured by virtue of such grant.

 

 

NOW, THEREFORE,
in consideration of the premises and the agreements, provisions and covenants
herein contained, and for other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the parties hereto agree, and
amend and restate the Existing Credit Agreement in its entirety, as follows:

 

SECTION 1

AMOUNTS AND TERMS OF FACILITIES

 

1.1           Facilities.  Subject to the terms and conditions of
this Agreement and in reliance upon the representations, warranties and
covenants of the Loan Parties contained herein and in the other Loan Documents:

 

(A)          Revolver Facility.  Each Lender,
severally and not jointly, agrees to lend to Borrower, from time to time during
the period commencing on the date all conditions precedent set forth in
Subsections 7.1 and 7.3 are satisfied or waived as provided herein and ending
on the Business Day immediately preceding the Revolver Expiration Date, its Pro
Rata Share of each Revolver Loan; provided that no Lender shall be
required at any time to lend more than its respective Pro Rata Share of the
Revolver Loan Commitment; and provided, further, that at any one
time the aggregate principal amount of the Revolver Loans outstanding may not
exceed the Revolver Loan Commitment less the outstanding Letter of Credit
Liability.  Within the limits of and
subject to the Available Revolver Loan Commitment, this Subsection 1.1(A) and
Subsections 1.6, 1.7 and 1.8, amounts borrowed under this Subsection 1.1(A) may
be repaid or prepaid and, at any time up to and including the Business Day
immediately preceding the Revolver Expiration Date, reborrowed.

 

(B)           Term Loan Facilities.

 

(i)            Term Loan A Facility. 
Each Lender, severally and not jointly, has lent to Borrower its Pro
Rata Share of the Term Loan A.  Amounts
of the Term Loan A that are repaid or prepaid may not be reborrowed.

 

(ii)           Term Loan B Facility. 
Each Lender, severally and not jointly, agrees to lend to Borrower, in a
single advance on the Initial Funding Date, its Pro Rata Share of the Term Loan
B Commitment; provided all conditions precedent set forth in Subsections
7.1, 7.2 and 7.3 are satisfied or waived as provided herein.  Amounts borrowed under this Subsection 1.1(B)(ii) that
are repaid or prepaid may not be reborrowed.

 

(C)           Incremental Term Loan Facilities. 
Borrower and any one or more Lenders (including any Person not
previously a Lender hereunder who executes and delivers a joinder agreement
executed by Borrower, Administrative Agent, and such Lender, in form and
substance reasonably acceptable to each of them), which Lenders are reasonably
acceptable to Administrative Agent and to Borrower, may agree, upon at least 10
days’ prior written notice to Administrative Agent, that such Lenders shall
make one or more additional term loan facilities available to Borrower under
this Subsection 1.1(C) (each, an “Incremental
Term Loan Facility” and collectively, the “Incremental
Term Loan Facilities”; each commitment thereunder an “Incremental Term Loan Commitment” and
collectively, the “Incremental 

 

2

 

Term Loan Commitments”; and the loans thereunder, each, an “Incremental Term Loan” and collectively,
the “Incremental Term Loans”).  Any Incremental Term Loan Facility shall be
documented by an amendment or supplement to this Agreement (or restatement
hereof) signed by Borrower and the Lenders providing such Incremental Term Loan
Commitments.  Notwithstanding the
foregoing: (i) the aggregate principal amount of all Incremental Term Loan
Commitments shall not exceed $50,000,000; (ii) the maturity date of any
Incremental Term Loan Facility shall be no earlier than the maturity date of
the Term Loan Facilities; (iii) the weighted average life of any
Incremental Term Loan Facility shall be equal to or greater than the remaining
weighted average life of the Term Loan Facilities, determined as of the initial
funding date for such Incremental Term Loan Facility; (iv) to the extent
that the applicable interest rate margins for any Incremental Term Loan
Facility exceed by more than 0.25% the applicable interest rate margins for the
existing Term Loan Facilities, determined as of the initial funding date for
such Incremental Term Loan Facility, the applicable interest rate margins for
the existing Term Loan Facilities shall be increased so that the interest rate
margins on such Incremental Term Loan Facility and the existing Term Loan
Facilities are equal; (v) any covenant or Event of Default applicable to
the Incremental Term Loan Facility that is more restrictive than the equivalent
covenant or Event of Default set forth in this Agreement shall be deemed to be
applicable to the Loans hereunder; and (vi) no Default or Event of Default
shall have occurred and be continuing or result after giving effect to any
Incremental Term Loan Facility and the borrowings contemplated thereunder, and
the Loan Parties shall be in pro forma compliance with the financial covenants
contained in Section 4.  The Lenders
shall have no obligation, and shall have no right, to participate in any
Incremental Term Loan Facility.  Any new
Lender providing an Incremental Term Loan Commitment shall for all purposes be
a Lender party to the loan documentation and shall have all rights and
obligations of a Lender.

 

(D)          Notes.  Upon any
Lender’s request, Borrower shall execute and deliver to such Lender a Revolver
Note, a Term Loan A Note, and a Term Loan B Note, as applicable, each dated the
Amendment Date, or, if later, the date of such request, in the principal amount
of such Lender’s Pro Rata Share of the Revolver Loan Commitment, the Term Loan
A and the Term Loan B Commitment, as applicable.  Upon the request of any applicable Lender,
Borrower shall execute and deliver to such Lender a separate note for each
applicable Incremental Term Loan Facility, each dated the closing date of such
Incremental Term Loan Facility, or, if later, the date of such request, in the
principal amount of such Lender’s Pro Rata Share of such Incremental Term Loan
Commitment or Incremental Term Loan, as applicable.

 

(E)           Advances.  Loans will be
made available by wire transfer of immediately available funds.  Wire transfers will be made to such account
or accounts as may be authorized by Borrower. 
Advances under the Term Loan B are only available on the Initial Funding
Date.

 

(F)           Letters of Credit.  The Revolver
Loan Commitment shall, in addition to advances as Revolver Loans, be utilized,
upon the request of Borrower, for the issuance of irrevocable standby or trade
letters of credit (individually, a “Letter of
Credit” and, collectively, the “Letters
of Credit”) by an Issuing Lender for the account of any Loan
Party.  Immediately upon the issuance by an
Issuing Lender of a Letter of Credit, and without further action on the part of
Administrative Agent or any Lenders, each Lender shall be deemed to have
purchased from such Issuing Lender a participation in such Letter of Credit
equal to such Lender’s Pro Rata Share of the Revolver Loan Commitment of the
aggregate amount available to be drawn under 

 

3

 

such Letter of Credit. 
Each Letter of Credit shall reduce the amount available under the
Revolver Loan Commitment by the maximum amount capable of being drawn under
such Letter of Credit.

 

(i)            Maximum Amount. 
The aggregate amount of Letter of Credit Liability with respect to all
Letters of Credit outstanding at any time for the account of Borrower or any other
Loan Party may not exceed $10,000,000 and the aggregate amount of Letter of
Credit Liability with respect to all Letters of Credit outstanding for the
account of Borrower or any Loan Party plus the aggregate principal
amount of Revolver Loans outstanding at any time may not exceed the Revolver
Loan Commitment.

 

(ii)           Reimbursement. 
Borrower is irrevocably and unconditionally obligated without
presentment, demand, protest or other formalities of any kind to reimburse an
Issuing Lender in immediately available funds for any amounts paid by an
Issuing Lender with respect to a Letter of Credit issued hereunder for the
account of any Loan Party.  Upon receipt
from the beneficiary of any Letter of Credit of any notice of drawing under
such Letter of Credit, the Issuing Lender shall notify Borrower and  Administrative Agent thereof.  Not later than 11:00 a.m. (Denver,
Colorado time) on the date of any payment by the Issuing Lender under a Letter
of Credit, Borrower shall reimburse the Issuing Lender through Administrative
Agent in the amount equal to the amount of such drawing.  If Borrower fails to so reimburse the Issuing
Lender by such time, Borrower shall be deemed to have requested Administrative
Agent to make a Revolver Loan in the amount of the payment made by such Issuing
Lender with respect to such Letter of Credit. 
If the Letter of Credit is payable in a foreign currency, the amount
owed by Borrower in connection with such Letter of Credit shall equal the
United States dollar equivalent of such foreign currency (determined by
Administrative Agent in its reasonable discretion) on the date such payment is
made by such Issuing Lender.  All amounts
paid by an Issuing Lender with respect to any Letter of Credit that are not
immediately repaid by Borrower or that are not repaid with a Revolver Loan
shall bear interest at the sum of the Base Rate plus 3.750% per annum.  Each Lender agrees to fund its Pro Rata Share
of any Revolver Loan made pursuant to this Subsection 1.1(F)(ii).  In the event Administrative Agent elects not
to debit Borrower’s account and Borrower fails to reimburse an Issuing Lender
in full on the date of any payment in respect of a Letter of Credit issued for
the account of any Loan Party, Administrative Agent shall promptly notify each
Lender with a Pro Rata Share of the Revolver Loan Commitment of the amount of
such unreimbursed payment and the accrued interest thereon and each such
Lender, on the next Business Day, shall deliver to Administrative Agent an
amount equal to its Pro Rata Share thereof in same day funds.  Each Lender with a Pro Rata Share of the
Revolver Loan Commitment hereby absolutely and unconditionally agrees to pay to
each Issuing Lender upon demand by such Issuing Lender such Lender’s Pro Rata
Share of each payment made by such Issuing Lender in respect of a Letter of
Credit and not immediately reimbursed by Borrower.  Each Lender with a Pro Rata Share of the
Revolver Loan Commitment acknowledges and agrees that its obligations to acquire
participations pursuant to this Subsection 1.1(F)(ii) in respect of
Letters of Credit and to make the payments to each Issuing Lender required by
the preceding sentence are absolute and unconditional and shall not be affected
by any circumstance whatsoever, including the occurrence and continuance of a
Default or an Event of Default or any 

 

4

 

failure by Borrower to satisfy any of the conditions set forth in
Subsection 7.3.  If any Lender with a Pro
Rata Share of the Revolver Loan Commitment fails to make available to an
Issuing Lender the amount of such Lender’s Pro Rata Share of any payments made
by such Issuing Lender in respect of a Letter of Credit as provided in this
Subsection 1.1(F)(ii), such Issuing Lender shall be entitled to recover such
amount on demand from such Lender together with interest at the Base Rate.

 

(iii)          Conditions
of Issuance of Letters of Credit.  In addition
to all other terms and conditions set forth in this Agreement, the issuance by
an Issuing Lender of any Letter of Credit shall be subject to the conditions
precedent that the Letter of Credit shall be in such form, be for such amount
and in such currency, and contain such terms and conditions as are reasonably
satisfactory to Administrative Agent and the Issuing Lender.  The expiration date of each Letter of Credit
must be on a date which is the earlier of (1) (a) for a standby
Letter of Credit, one (1) year from its date of issuance and (b) for
a trade Letter of Credit, 180 days from its date of issuance or (2) the 30th
day before the date set forth in clause (B) of the definition of the
term “Revolver Expiration Date,” or such later date as agreed to by both
Administrative Agent and the Issuing Lender, in their sole discretion.

 

(iv)          Request for Letters of Credit.  Borrower
must give Administrative Agent at least three (3) Business Days’ prior
written notice, which notice will be irrevocable, specifying the date a Letter
of Credit is requested to be issued and the amount and the currency in which
such Letter of Credit is payable, identifying the beneficiary, stating whether
the Letter of Credit will be a standby or trade Letter of Credit, and
describing the nature of the transactions proposed to be supported
thereby.  Any notice requesting the
issuance of a Letter of Credit shall be accompanied by the form of the Letter
of Credit to be provided by an Issuing Lender. 
Borrower must also complete any application procedures and documents
required by an Issuing Lender in connection with the issuance of any Letter of
Credit, including a certificate regarding Borrower’s compliance with the
provisions of Subsection 7.3 of this Agreement.

 

(v)           Borrower Obligations Absolute. 
The obligations of Borrower under this Subsection 1.1(F) are
irrevocable, will remain in full force and effect until the Issuing Lender and
Lenders have no further obligations to make any payments or disbursements under
any circumstances with respect to any Letter of Credit, shall be absolute and
unconditional, shall not be subject to counterclaim, setoff or other defense or
any other qualification or exception whatsoever and shall be paid in accordance
with the terms and conditions of this Agreement under all circumstances,
including, any of the following circumstances:

 

(1)           Any lack of validity or
enforceability of this Agreement, any of the other Loan Documents or any
documents or instruments relating to any Letter of Credit;

 

(2)           Any change in the time,
manner or place of payment of, or in any other term of, all or any of the
obligations in respect of any Letter of Credit or any other amendment,
modification or waiver of or any 

 

5

 

consent to or departure from any Letter of
Credit, any documents or instruments relating thereto, or any Loan Document in
each case whether or not any Loan Party or any of its Subsidiaries has notice
or knowledge thereof;

 

(3)           The existence of any claim,
setoff, defense or other right that any Loan Party or any of its Subsidiaries
may have at any time against a beneficiary named in a Letter of Credit, any
transferee of any Letter of Credit (or any Person for whom any such transferee
may be acting), Administrative Agent, any Issuing Lender, any Lender, or any
other Person, whether in connection with this Agreement, any other Loan Document,
any Letter of Credit, the transactions contemplated hereby or any other related
or unrelated transaction or transactions (including any underlying transaction
between any Loan Party or any of its Subsidiaries and the beneficiary named in
any such Letter of Credit);

 

(4)           Any draft, certificate or
any other document presented under any Letter of Credit proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement therein
being untrue or inaccurate in any respect, any errors, omissions, interruptions
or delays in transmission or delivery of any messages, by mail, telecopier or
otherwise, or any errors in translation or in interpretation of technical
terms;

 

(5)           Payment under any Letter of
Credit against presentation of a demand, draft or certificate or other document
which does not comply with the terms of such Letter of Credit;

 

(6)           Any defense based upon the
failure of any drawing under any Letter of Credit to conform to the terms of
such Letter of Credit (provided that any draft, certificate or other document
presented pursuant to such Letter of Credit appears on its face to comply with
the terms thereof), any nonapplication or misapplication by the beneficiary or
any transferee of the proceeds of such drawing or any other act or omission of
such beneficiary or transferee in connection with such Letter of Credit;

 

(7)           The exchange, release,
surrender or impairment of any collateral or other security for the
obligations;

 

(8)           The occurrence of any
Default or Event of Default; or

 

(9)           Any other circumstance or
event whatsoever, including, any other circumstance that might otherwise
constitute a defense available to, or a discharge of, any Loan Party, any of
its Subsidiaries or a guarantor.

 

Any
action taken or omitted to be taken by an Issuing Lender under or in connection
with any Letter of Credit, if taken or omitted in the absence of gross
negligence or willful 

 

6

 

misconduct,
is binding upon the Loan Parties and their Subsidiaries and shall not create or
result in any liability of such Issuing Lender to any Loan Party or any of its
Subsidiaries.

 

(vi)          Obligations of Issuing Lenders. 
Each Issuing Lender (other than CoBank) hereby agrees that it will not
issue a Letter of Credit hereunder until it has provided Administrative Agent
with written notice specifying the amount, currency and intended issuance date
of such Letter of Credit and Administrative Agent has returned a written
acknowledgment of such notice to Issuing Lender.  Each of Issuing Lender and Administrative
Agent agrees to provide such notices and acknowledgement promptly upon Borrower’s
request of a Letter of Credit provided such request satisfies all of the
requirements provided herein.  Each
Issuing Lender (other than CoBank) further agrees to provide to Administrative
Agent:  (1) a copy of each Letter of
Credit issued by such Issuing Lender promptly after its issuance; (2) a
monthly report summarizing available amounts under Letters of Credit issued by
such Issuing Lender, the dates and amounts of any draws under such Letters of
Credit, the effective date of any increase or decrease in the face amount of
any Letters of Credit during such month and the amount of any unreimbursed
draws under such Letters of Credit; and (3) such additional information
reasonably requested by Administrative Agent from time to time with respect to
the Letters of Credit issued by such Issuing Lender.

 

(vii)         UCP
and ISP.  The Uniform Customs and Practice for
Documentary Credits as most recently published from time to time by the
International Chamber of Commerce (the “UCP”)
is hereby incorporated in this Agreement with respect to trade Letters of
Credit and shall be deemed incorporated by this reference into each trade
Letter of Credit issued pursuant to this Agreement.  The terms and conditions of the UCP shall be
binding with respect to trade Letters of Credit on the parties to this
Agreement and each beneficiary of any trade Letter of Credit issued pursuant to
this Agreement.  The International
Standby Practices as most recently published from time to time by the
International Chamber of Commerce (the “ISP”) is hereby
incorporated in this Agreement with respect to standby Letters of Credit and
shall be deemed incorporated by this reference into each standby Letter of
Credit issued pursuant to this Agreement. 
The terms and conditions of the ISP shall be binding with respect to
standby Letters of Credit on the parties to this Agreement and each beneficiary
of any standby Letter of Credit issued pursuant to this Agreement.

 

1.2           Interest.

 

(A)          Interest Options.  From the date
each Loan is made, based upon the election of Borrower, at such time and from
time to time thereafter (as provided in Subsection 1.3 and subject to the
conditions set forth in such Subsection and Subsection 1.2(G)), each such
Loan shall accrue interest as follows:

 

(i)            as a Base Rate Loan, at the sum of the
Base Rate plus the Base Rate Margin applicable to such Loan from time to
time as provided in Subsection 1.2(B); or

 

7

 

(ii)           as a LIBOR Loan, for the applicable LIBOR
Interest Period, at the sum of LIBOR plus the LIBOR Margin applicable to
such Loan from time to time as provided in Subsection 1.2(B); or

 

provided, that any
Incremental Term Loan shall accrue interest as provided in the amendment or
supplement to this Agreement evidencing such Incremental Term Loan Facility.

 

(B)           Applicable Margins.  Initially,
and continuing through the day immediately preceding the first Adjustment Date
occurring after the Amendment Date, the applicable Base Rate Margin, LIBOR
Margin and Commitment Fee Margin shall be the applicable per annum percentage
set forth in the pricing table below opposite the applicable Total Leverage
Ratio of Borrower, determined on a consolidated basis for Borrower and its
Subsidiaries and calculated on a pro forma basis after giving effect to any
Loans requested by Borrower pursuant to this Agreement on the Amendment
Date.  Thereafter, the applicable Base
Rate Margin, LIBOR Margin and Commitment Fee Margin shall be for each
Calculation Period the applicable per annum percentage set forth in the pricing
table below opposite the applicable Total Leverage Ratio of Borrower,
determined on a consolidated basis for Borrower and its Subsidiaries; provided,
that, in the event that Administrative Agent shall not receive the
financial statements and Compliance Certificate required pursuant to
Subsections 4.5(A), 4.5(B) and 4.5(C) when due, from such due date
and until the fifth Business Day following Administrative Agent’s receipt of
such overdue financial statements and Compliance Certificate (and in the event
a decrease in the applicable margin is then warranted, receipt of Borrower’s
written request to decrease such margin), the Base Rate Margin shall be 3.750%
per annum, the LIBOR Margin shall be 4.750% per annum, and the Commitment Fee
Margin shall be 0.750%; provided, further, that effective upon
the closing of any acquisition that will increase the Total Leverage Ratio on a
pro forma basis, the Base Rate Margin, LIBOR Margin and Commitment Fee Margin
will immediately adjust to reflect such higher ratio.  Notwithstanding anything to the contrary set
forth in this paragraph, initially, and continuing through the day immediately
proceeding the first Adjustment Date occurring on or after September 30,
2010, the LIBOR Margin will be not less than 3.750% and the Base Rate Margin
will be not less than 2.750%.

 

PRICING TABLE

 

	
  Total
  Leverage Ratio

  	
   

  	
  Base Rate Margin

  	
   

  	
  LIBOR Margin

  	
   

  	
  Commitment

  Fee Margin

  	
   

  
	
  > 2.00x

  	
   

  	
  3.750

  	
  %

  	
  4.750

  	
  %

  	
  0.750

  	
  %

  
	
  > 1.75x and < 2.00x

  	
   

  	
  3.500

  	
  %

  	
  4.500

  	
  %

  	
  0.750

  	
  %

  
	
  > 1.50x and < 1.75x

  	
   

  	
  3.250

  	
  %

  	
  4.250

  	
  %

  	
  0.750

  	
  %

  
	
  > 1.25x and < 1.50x

  	
   

  	
  3.000

  	
  %

  	
  4.000

  	
  %

  	
  0.625

  	
  %

  
	
  > 1.00x and < 1.25x

  	
   

  	
  2.750

  	
  %

  	
  3.750

  	
  %

  	
  0.500

  	
  %

  
	
  < 1.00x

  	
   

  	
  2.500

  	
  %

  	
  3.500

  	
  %

  	
  0.500

  	
  %

  

 

8

 

If,
as a result of any restatement of or other adjustment to any financial
statements referred to above (i) the Total Leverage Ratio as calculated by
Borrower as of any applicable date was inaccurate and (ii) a proper
calculation of the Total Leverage Ratio would have resulted in different
pricing for any period, then (1) if the proper calculation of the Total
Leverage Ratio would have resulted in higher pricing for such period, Borrower
shall automatically and retroactively be obligated to pay to Administrative
Agent, promptly on demand by Administrative Agent, an amount equal to the
excess of the amount of interest that should have been paid for such period
over the amount of interest actually paid for such period; and (2) if the
proper calculation of the Total Leverage Ratio would have resulted in lower
pricing for such period, Administrative Agent and the Lenders shall have no
obligation to repay any interest to Borrower; provided that if, as a result of
any restatement or other event a proper calculation of the Total Leverage Ratio
would have resulted in higher pricing for one or more periods and lower pricing
for one or more other periods (due to the shifting of income or expenses from
one period to another period or any similar reason), then the amount payable by
Borrower pursuant to clause (1) above shall be based upon the excess, if
any, of the amount of interest that should have been paid for all applicable
periods over the amount of interest paid for all such periods.

 

(C)           LIBOR Interest Periods.  Each LIBOR
Loan may be obtained for a one (1), two (2), three (3), or six (6) month
period or, if available to all Lenders under the applicable facility, nine (9) or
12 month period (each such period being an “LIBOR
Interest Period”). With respect to all LIBOR Loans:

 

(i)            the LIBOR Interest Period will commence
on the date that the LIBOR Loan is made or the date on which any portion of any
Base Rate Loan is converted into a LIBOR Loan, or, in the case of immediately
successive LIBOR Interest Periods, each successive LIBOR Interest Period shall
commence on the day on which the immediately preceding LIBOR Interest Period
expires;

 

(ii)           if the LIBOR Interest Period would
otherwise expire on a day that is not a Business Day, then it will expire on
the next Business Day; provided, that if any LIBOR Interest Period would
otherwise expire on a day that is not a Business Day and such day is the last
Business Day of a calendar month, such LIBOR Interest Period shall expire on
the Business Day next preceding such day;

 

(iii)          any
LIBOR Interest Period that begins on the last Business Day of a calendar month
or on a day for which there is no numerically corresponding day in the last
calendar month in such LIBOR Interest Period shall end on the last Business Day
of the last calendar month in such LIBOR Interest Period; and

 

(iv)          no LIBOR Interest Period shall be
selected under any Term Loan Facility if, in order to make scheduled repayments
of such Term Loan required pursuant to Subsection 1.6(A)(ii), (iii) or
(iv), repayment of all or any portion of the LIBOR Loan prior to the expiration
of such Interest Period would be necessary; and

 

9

 

(v)           no LIBOR Interest Period shall be
selected under the Revolver Facility that extends beyond the date set forth in
clause (B) of the definition of Revolver Expiration Date, and no LIBOR
Interest Period shall be selected under any Term Loan Facility that extends
beyond the date set forth in clause (B) of the definition of applicable
Term Loan Maturity Date.

 

(D)          Calculation and Payment.  Interest on
Base Rate Loans shall be calculated on the basis of a 365-6-day year for the
actual number of days elapsed.  Interest
on LIBOR Loans, including amounts due under Subsection 1.4, shall be calculated
on the basis of a 360-day year for the actual number of days elapsed.  The date of funding or conversion of a LIBOR
Loan to a Base Rate Loan and the first day of a LIBOR Interest Period shall be
included in the calculation of interest. 
The date of payment (as determined in Subsection 1.5) of any Loan and
the last day of a LIBOR Interest Period shall be excluded from the calculation
of interest; provided, if a Loan is repaid on the same day that it is
made, one (1) day’s interest shall be charged.

 

Interest
accruing on Base Rate Loans is payable in arrears on each of the following
dates or events: (i) the last day of each calendar quarter; (ii) the
prepayment of such Loan (or portion thereof), to the extent accrued on the
principal prepaid; and (iii) the applicable Term Loan Maturity Date or the
Revolver Expiration Date, as the case may be, whether by acceleration or
otherwise, with respect to the principal to be repaid.  Interest accruing on each LIBOR Loan is
payable in arrears on each of the following dates or events: (1) the last
day of each applicable LIBOR Interest Period; (2) if the LIBOR Interest
Period is longer than three (3) months, on each three-month anniversary of
the commencement date of such LIBOR Interest Period; (3) the prepayment of
such Loan (or portion thereof), to the extent accrued on the principal prepaid;
and (4) the applicable Term Loan Maturity Date or the Revolver Expiration
Date, as the case may be, whether by acceleration or otherwise, with respect to
the principal to be repaid.

 

(E)           Default Rate of Interest. 
At the election of Administrative Agent or Requisite Lenders, after the
occurrence of an Event of Default and for so long as it continues, all Loans
and other Obligations shall bear interest at rates that are 2% in excess of the
rates otherwise in effect, including, rates in effect pursuant to Subsection
1.2(B), with respect to such Loans and other Obligations.  Interest accruing pursuant to this Subsection
1.2(E) is payable on demand.

 

(F)           Excess Interest. 
Notwithstanding anything to the contrary set forth herein, the aggregate
interest, fees and other amounts required to be paid by Borrower to Lenders or
any Lender hereunder are hereby expressly limited so that in no contingency or
event whatsoever, whether by reason of acceleration of maturity of the
Indebtedness evidenced hereby or otherwise, shall the amount paid or agreed to
be paid to Lenders or any Lender for the use or the forbearance of the
Indebtedness or Obligations evidenced hereby exceed the maximum permissible
under Applicable Law.  If under or from
any circumstances whatsoever, fulfillment of any provision hereof or of any of
the other Loan Documents at the time of performance of such provision shall be
due, shall involve exceeding the limit of such validity prescribed by
Applicable Law then the obligation to be fulfilled shall automatically be
reduced to the limit of 

 

10

 

such validity and if under or from circumstances
whatsoever Lenders or any Lender should ever receive as interest any amount
which would exceed the highest lawful rate, the amount of such interest that is
excessive shall be applied to the reduction of the principal balance of the
Obligations evidenced hereby and not to the payment of interest.  Additionally, should the method used for
calculating interest on LIBOR Loans (i.e., using a 360-day year) be unlawful,
such calculation method shall be automatically changed to a 365-6-day year or
such other lawful calculation method as is reasonably acceptable to
Administrative Agent.  This provision
shall control every other provision of this Agreement and all provisions of
every other Loan Document.

 

(G)           Selection, Conversion or Continuation of Loans; LIBOR
Availability.  Provided that no Event of Default has
occurred and is then continuing, Borrower shall have the option to (i) select
all or any part of a new borrowing to be a Base Rate Loan or a LIBOR Loan, in
the case of a Base Rate Loan in a principal amount equal to at least $100,000,
in the case of a LIBOR Loan in a principal amount equal to $1,000,000 or any
whole multiple of $500,000 in excess thereof, (ii) convert at any time all
or any portion of a Base Rate Loan in a principal amount equal to $1,000,000 or
any whole multiple of $500,000 in excess thereof into a LIBOR Loan, (iii) upon
the expiration of its Interest Period, convert all or any part of any LIBOR
Loan into a Base Rate Loan, and (iv) upon the expiration of its Interest
Period, continue any LIBOR Loan into one or more LIBOR Loans in a principal
amount of $1,000,000 or any whole multiple of $500,000 in excess thereof for
such new Interest Period(s) as selected by Borrower.  Each LIBOR Loan shall be made under any one
of the Revolver Facility, the Term Loan A Facility, the Term Loan B Facility,
or any Incremental Term Loan Facility, but may not be made under more than one
Facility concurrently.  During any period
in which any Event of Default is continuing, as the Interest Periods for LIBOR
Loans then in effect expire, such Loans shall be converted into a Base Rate
Loan and the LIBOR option will not be available to Borrower until all Events of
Default are cured or waived. In the event Borrower fails to elect a LIBOR Loan
upon any advance hereunder or upon the termination of any Interest Period,
Borrower shall be deemed to have elected to have such amount constitute a Base
Rate Loan.  There shall be no more than
an aggregate of five (5) LIBOR Loans outstanding at any one time under any
Facility.

 

1.3           Notice of Borrowing, Conversion or Continuation of
Loans.  Whenever Borrower desires to request a Loan
pursuant to Subsection 1.1(A) or (B) or to convert or continue
Loans pursuant to Subsection 1.2(G), Borrower shall give Administrative Agent
irrevocable prior written notice in the form attached hereto as Exhibit 1.3
(a “Notice of
Borrowing/Conversion/Continuation”) (A) if requesting a
borrowing of a Base Rate Loan (or any portion thereof), not later than 11:00 a.m.
(Denver, Colorado time) one (1) Business Day before the proposed
borrowing, conversion or continuation is to be effective or, (B) if
requesting a borrowing of, or conversion to or continuation of a LIBOR Loan,
not later than 11:00 a.m. (Denver, Colorado time) three (3) Business Days
before the proposed borrowing, conversion or continuation is to be
effective.  Each Notice of
Borrowing/Conversion/Continuation shall specify (i) the Loan (or portion
thereof) to be advanced, converted or continued and, with respect to any LIBOR
Loan to be converted or continued, the last day of the current Interest Period
therefor, (ii) the effective date of such borrowing, conversion or
continuation (which shall be a Business Day), (iii) the principal amount
of such Loan to be borrowed, converted or continued, (iv) the Interest
Period to be applicable to any new LIBOR Loan, and (v) the Facility under
which such borrowing, conversion or continuation is to be made.  Administrative Agent shall give each 

 

11

 

Lender prompt written notice of any Notice of
Borrowing/Conversion/Continuation given by Borrower.

 

1.4           Fees and Expenses.

 

(A)          Unused Commitment Fees.

 

(i)            From the Closing Date, Borrower shall be
obligated to pay Administrative Agent, for the benefit of all Revolver Lenders
that are neither Defaulting Lenders nor Potential Defaulting Lenders with
respect to which any Issuing Bank has exercised the right to require cash
collateralization pursuant to Subsection 1.17(A)(i) from Borrower or such
Potential Defaulting Lender (based upon their respective Pro Rata Shares of the
Revolver Loan Commitment), a fee (the “Revolver
Commitment Fee”) in an amount equal to (i) the Revolver Loan
Commitment less the sum of (1) the average daily outstanding
balance of Revolver Loans plus (2) the average daily outstanding
Letter of Credit Liability, in each case during the preceding calendar quarter multiplied
by (ii) the applicable
Commitment Fee Margin as provided in Subsection 1.2(B), calculated on the basis
of a 360-day year for the actual number of days elapsed.  Such fees are to be paid quarterly in arrears
on the last day of each calendar quarter for such calendar quarter (or portion
thereof), with the final such payment due on the Revolver Expiration Date.

 

(ii)           From the Amendment Date through the
earlier of the Initial Funding Date or the Term Loan B Availability Expiration
Date, Borrower shall be obligated to pay Administrative Agent, for the benefit
of all Term Loan B Lenders that are not Defaulting Lenders (based upon their
respective Pro Rata Shares of the Term Loan B Commitment), a fee (the “Term Loan B Commitment Fee”) in an amount
equal to (i) the Term Loan B Commitment multiplied  by (ii) the
applicable Commitment Fee Margin
as provided in Subsection 1.2(B), calculated on the basis of a 360-day year for
the actual number of days elapsed.  Such
fees are to be paid quarterly in arrears on the last day of each calendar
quarter for such calendar quarter (or portion thereof), with the final such
payment due on the earlier of the Initial Funding Date and the Term Loan B
Availability Expiration Date.

 

(B)           Certain Other Fees.  Borrower
shall be obligated to pay to CoBank, individually, fees in the amounts and at
the times specified in the letter agreement dated September 9, 2009,
between Borrower and CoBank.

 

(C)           Breakage Fee.  Upon any
repayment or payment of a LIBOR Loan on any day that is not the last day of the
Interest Period applicable thereto (regardless of the source of such repayment
or prepayment and whether voluntary, mandatory, by acceleration or otherwise),
Borrower shall be obligated to pay Administrative Agent, for the benefit of all
affected Lenders, an amount (the “Breakage
Fee”) equal to the present value of any losses, expenses and
liabilities (including any loss (including interest paid) sustained by each
such affected Lender in connection with the reemployment of such funds) that
any such affected Lender may sustain as a result of the payment of such LIBOR
Loan on such day.  For purposes of
calculating amounts payable by Borrower to Lenders under this Subsection
1.4(C), each LIBOR Loan made by a Lender (and each related reserve, special
deposit or similar requirement) shall be conclusively 

 

12

 

deemed to have been funded at the LIBOR rate for such
LIBOR Loan by a matching deposit or other borrowing in the interbank
eurocurrency market for a comparable amount and for a comparable period,
whether or not such LIBOR Loan is in fact so funded.  In addition, upon any repayment or prepayment
of a LIBOR Loan on any day that is not the last day of the Interest Period
applicable thereto (regardless of the source of such repayment or prepayment
and whether voluntary, mandatory, by acceleration or otherwise), Borrower shall
be obligated to pay Administrative Agent, not for the benefit of Lenders, an
administrative fee of $300.

 

(D)          Expenses and Attorneys’ Fees. 
In addition to fees due under Subsections 1.4(A) and 1.4(B),
Borrower agrees to pay promptly all reasonable fees, costs and expenses
(including those of attorneys) incurred by Administrative Agent in connection
with (i) any matters contemplated by or arising out of the Loan Documents,
(ii) the continued administration of the Loan Documents, including any
such fees, costs and expenses incurred in perfecting, maintaining, determining
the priority of and releasing any security and any tax payable in connection
with any Loan Documents and any amendments, modifications and waivers.  In addition to fees due under Subsections 1.4(A) and
(B), Borrower shall also reimburse on demand Administrative Agent for its
expenses (including reasonable attorneys’ fees and expenses) incurred in
connection with documenting and closing the transactions contemplated
herein.  In addition to fees due under
Subsections 1.4(A) and (B), Borrower agrees to pay promptly (1) all
reasonable fees, costs and expenses incurred by Administrative Agent in
connection with any amendment, supplement, waiver or modification of any of the
Loan Documents and (2) all reasonable out-of-pocket fees, costs and
expenses incurred by each of Administrative Agent  and Lenders in connection with any Event of Default and any
enforcement of collection proceeding resulting therefrom or, during the
continuance of any Event of Default, any workout or restructuring of any of the
transactions hereunder or contemplated thereby or any action to enforce any
Loan Document or to collect any payments due from Borrower.  All fees, costs and expenses for which
Borrower is responsible under this Subsection 1.4(D) shall be deemed
part of the Obligations when incurred, payable upon demand and in accordance
with the second paragraph of Subsection 1.5 and shall be secured by the
Collateral.

 

(E)           Letter of Credit Fees.  From the
Closing Date, Borrower shall pay Administrative Agent for the account of all
Revolver Lenders that are neither Defaulting Lenders nor Potential Defaulting
Lenders with respect to which any Issuing Bank has exercised the right to
require cash collateralization pursuant to Subsection 1.17(A)(i) from
Borrower or such Potential Defaulting Lender (based upon their respective Pro
Rata Shares) a fee for each Letter of Credit from the date of issuance to the
date of termination in an amount equal to the applicable LIBOR Margin per annum
multiplied by the face amount of such Letter of Credit.  Such fee shall be payable to Administrative
Agent for the benefit of all Lenders committed to make Revolver Loans (based
upon their respective Pro Rata Shares). 
Such fee is to be paid quarterly in arrears on the last day of each
calendar quarter and the termination of the Letter of Credit.  With respect to each Letter of Credit,
Borrower shall also pay Administrative Agent, for the benefit of the Issuing
Lender issuing such Letter of Credit, an issuance fee equal to the greater of (i) $1,000
or (ii) 0.125% of the face amount of such Letter of Credit, which amount
shall be paid upon the date of issuance and, if the expiration date of such
Letter of Credit is later than one (1) year from its date of issuance,
upon each anniversary of the date of issuance during the term of such Letter of
Credit.

 

13

 

1.5                                 Payments.  All payments
by Borrower of the Obligations shall be made in same day funds and delivered to
Administrative Agent, for the benefit of itself and Lenders, as applicable, by
wire transfer to the following account or such other place as Administrative
Agent may from time to time designate in writing:

 

CoBank, ACB

Greenwood Village, Colorado

ABA Number 3070-8875-4

Reference:  CoBank for the benefit of ATN

 

Borrower
shall receive credit on the day of receipt for funds received by Administrative
Agent by 11:00 a.m. (Denver, Colorado time) on any Business Day.  Funds received on any Business Day after such
time shall be deemed to have been paid on the next Business Day.  Whenever any payment to be made hereunder
shall be stated to be due on a day that is not a Business Day, the payment
shall be due on the next succeeding Business Day and such extension of time
shall be included in the computation of the amount of interest and fees due
hereunder.

 

To
the extent Borrower or any other party or Person makes a payment or payments to
Administrative Agent for the ratable benefit of Lenders or for the benefit of
Administrative Agent in its individual capacity or to any other obligee in
respect of the Obligations hereunder, which payments or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside
and/or required to be repaid to a trustee, receiver or any other party under
any bankruptcy law, state or federal law, common law or equitable cause, or any
combination of the foregoing (whether by demand, litigation, settlement or
otherwise), then, to the extent of such payment or proceeds repaid, the
Obligations or part thereof intended to be satisfied shall be revived and
continued in full force and effect as if such payment or proceeds had not been
received by Administrative Agent or such obligee.

 

Each
payment received by Administrative Agent under this Agreement or any Note for
account of any Lender shall be remitted by Administrative Agent to such Lender
promptly after Administrative Agent’s receipt thereof, and such remittance
shall be made in immediately available funds for the account of such Lender for
the Loans or other obligation in respect of which such payment is made.

 

1.6                                 Repayments of Loans; Reduction of the Revolver
Loan Commitment.

 

(A)                              Scheduled Termination of Revolver Loan
Commitment and Repayments of the Term Loan.

 

(i)                                     Scheduled
Termination of Revolver Loan Commitment.  In addition to any reductions pursuant to
Subsections 1.6(B) and 1.6(C), the Revolver Loan Commitment shall be
permanently reduced and terminated in full on the Revolver Expiration Date, and
any outstanding principal balance of the Revolver Loans not sooner due and
payable will become due and payable on the Revolver Expiration Date.

 

(ii)                                  Scheduled
Repayments of the Term Loan A.  Commencing on March 31, 2010, and on
each June 30, September 30, December 31 and March 31
thereafter, 

 

14

 

subject to Section 1.8,
Borrower shall repay the aggregate principal balance of the Term Loan A in the
amount set forth below opposite such period:

 

TERM LOAN A - REPAYMENT TABLE

 

	
  Period

  	
   

  	
  Quarterly Principal Payment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31, 2010 to  December 31, 2011

  	
   

  	
  $

  	
  923,437.50

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31, 2012 to June 30, 2014

  	
   

  	
  $

  	
  1,846,875.00

  	
   

  

 

The
outstanding principal balance of the Term Loan A not sooner due and payable
will become due and payable on the Term Loan A Maturity Date.

 

(iii)                               Scheduled
Repayments of the Term Loan B. The Term Loan B Commitment
shall be permanently terminated on the earlier of the Initial Funding Date
(after the making of the Term Loan B) and the Term Loan B Availability
Expiration Date.  Commencing on the first
such date occurring after the Initial Funding Date, and on each March 31, June 30,
September 30 and December 31 thereafter, subject to Section 1.8,
Borrower shall repay the aggregate principal balance of the Term Loan B in the
amount set forth below opposite such period:

 

TERM LOAN B - REPAYMENT TABLE

 

	
  Period

  	
   

  	
  Quarterly Principal Payment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  First calendar quarter end occurring after the
  Initial Funding Date to December 31, 2011

  	
   

  	
  $

  	
  1,875,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March 31, 2012  to
  June 30, 2014

  	
   

  	
  $

  	
  3,750,000.00

  	
   

  

 

; provided  that,
if Borrower borrows less than the full amount of the Term Loan B Commitment on
the Initial Funding Date, Administrative Agent will calculate and deliver to
Borrower and the Term Loan B Lenders on the Initial Funding Date an
amortization schedule which will amend and restate the schedule set forth above
and will provide for equal quarterly payments of 1.25% of the aggregate
principal balance of the Term Loan B on the Initial Funding Date from the first
repayment date occurring after the Initial Funding Date to December 31,
2011 and equal quarterly payments of 2.5% of the aggregate principal balance of
the Term Loan B on the Initial Funding Date from March 31, 2012 to June 30,
2014.

 

The
outstanding principal balance of the Term Loan B not sooner due and payable
will become due and payable on the Term Loan B Maturity Date.

 

15

 

(iv)                              Incremental
Term Loans.  Borrower
shall repay the aggregate outstanding principal balance of any Incremental Term
Loan as provided in the amendment or supplement to this Agreement documenting
such Incremental Term Loan Facility.

 

All
repayments of the Facilities pursuant to this Subsection 1.6(A) shall be
applied in accordance with Subsection 1.8, and shall be accompanied by any
applicable Breakage Fees and any other fees required pursuant to Subsection
1.4.

 

(B)                                Reductions Resulting From Mandatory
Repayments.  The Revolver Loan Commitment also will be
permanently reduced to the extent and in the amount that Borrower is required,
pursuant to Subsection 1.8, to apply mandatory repayments to be made pursuant
to Subsections 1.7(B), (C) and (D) to the Revolver Facility (whether
or not any Revolver Loans are then outstanding and available to be
repaid).  All reductions provided for in
this Subsection 1.6(B) shall be in addition to the voluntary
reductions provided for in Subsection 1.6(C) and, accordingly, may result
in the termination of the Revolver Loan Commitment prior to the date set forth
in clause (B) of the definition of the term Revolver Expiration Date.

 

(C)                                Voluntary Reduction of the Revolver Loan. 
Borrower shall have the right, upon at least three (3) Business
Days’ prior written notice to Administrative Agent, to terminate or permanently
reduce the then unused portion of the Revolver Loan Commitment.  Each partial reduction shall be in a minimum
amount of at least $250,000, or any whole multiple thereof in excess thereof,
and shall be applied as to each Lender based upon its Pro Rata Share.  Notwithstanding the foregoing, no reduction
to the Revolver Loan Commitment shall be permitted if, after giving effect
thereto and to any prepayment made in connection therewith, the aggregate
principal balance of the Revolver Loans then outstanding under the Revolver
Facility plus the amount of the Letter of Credit Liability would exceed
the Revolver Loan Commitment as so reduced. 
All reductions to the Revolver Loan Commitment elected under this
Subsection 1.6(C) shall be in addition to the reductions in the Revolver
Loan Commitment provided for in Subsections 1.6(A)(i) and 1.6(B) and,
accordingly, may result in the termination of the Revolver Loan Commitment
prior to the date set forth in clause (B) of the definition of the term
Revolver Expiration Date.

 

(D)                               Mandatory Repayments. 
If at any time the aggregate outstanding amount of Revolver Loans plus
the amount of the Letter of Credit Liability exceeds the Revolver Loan
Commitment, Borrower shall repay promptly the Revolver Loans or reduce the
Letter of Credit Liability pursuant to Subsection 1.16 in an amount at least
sufficient to reduce the aggregate principal balance of such Revolver Loans
then outstanding plus the amount of the Letter of Credit Liability to
the amount of the Revolver Loan Commitment, and until such repayment is made,
Lenders shall not be obligated to make any additional Revolver Loans.  Any repayments pursuant to this Subsection
1.6(D) shall be paid and applied in accordance with Subsection 1.8
and must be accompanied by accrued interest on the amount repaid and any
applicable Breakage Fees and any other fees required pursuant to Subsection
1.4.

 

1.7                                 Voluntary Prepayments and Other Mandatory
Repayments.

 

(A)                              Voluntary Prepayment of Loans. 
Subject to the provisions of Subsection 1.8, at any time, Borrower may
prepay the Base Rate Loans, in whole or in part, without penalty.  

 

16

 

Subject to the provisions of Subsection 1.8, payment
of the Breakage Fees and any other fees required pursuant to Subsection 1.4 and
the notice requirement in the following sentence, at any time Borrower may
prepay any LIBOR Loan, in whole or in part. 
Notice of any prepayment of (i) a Base Rate Loan shall be given not
later than 11 a.m. (Denver, Colorado time) on the Business Day immediately
preceding the date of prepayment, and (ii) a LIBOR Loan shall be given not
later than 11:00 a.m. (Denver, Colorado time) on the third Business Day
immediately preceding the date of prepayment. 
All partial prepayments shall be in a minimum amount of at least
$250,000, or any whole multiple thereof in excess thereof (or the entire
remaining balance of the applicable Loan), and shall be paid and applied in
accordance with Subsection 1.8.  All
prepayment notices shall be irrevocable. All prepayments shall be accompanied
by accrued interest on the amount prepaid and any applicable Breakage Fees and
any other fees required pursuant to Subsection 1.4.

 

(B)                                Repayments from Insurance Proceeds. 
Immediately upon receipt thereof, Borrower shall be obligated to repay
the Loans (or reduce the Letter of Credit Liability pursuant to Subsection
1.16) in an amount equal to all Net Proceeds received by Borrower or any
Subsidiary of Borrower that are insurance proceeds from any Asset Disposition
(which Net Proceeds, together with all other such Net Proceeds covered by this
Subsection 1.7(B), exceeds $5,000,000 in the aggregate over the term of this
Agreement); provided, however, that if no Event of Default has
occurred and is continuing, Borrower shall not be required to repay the Loans
with the Net Proceeds if Borrower or such Subsidiary (i) has previously
applied cash or (ii) applies such Net Proceeds to repair or replace the
lost, damaged or destroyed assets within 180 days of receipt by Borrower or
such Subsidiary of such Net Proceeds. 
All such repayments shall be paid and applied in accordance with Subsection
1.8 (if upon the expiration of such 180-day period any of such Net Proceeds
have not been so applied, Borrower immediately shall repay the Loans (or reduce
the Letter of Credit Liability pursuant to Subsection 1.16) in an amount equal
to such remaining Net Proceeds).  All
prepayments shall be accompanied by accrued interest on the amount prepaid and
any applicable Breakage Fees and any other fees required pursuant to Subsection
1.4.

 

(C)                                Repayments from Certain Asset
Dispositions.  Immediately upon receipt thereof, Borrower
shall be obligated to repay the Loans (or reduce the Letter of Credit Liability
pursuant to Subsection 1.16) in an amount equal to all Net Proceeds received by
Borrower or any Subsidiary of Borrower that are from Asset Dispositions, other
than insurance proceeds or from Asset Dispositions permitted pursuant to
Subsections 3.7(A) through (C), (E), (G), (H) or (I); provided,
however, that if (i) no Event of Default has occurred and is
continuing and (ii) the aggregate of all such Net Proceeds during the
12-month period ending on the date of such proposed reinvestment does not
exceed 5% of Borrower’s then amount of consolidated assets, Borrower shall not
be required to repay the Loans with the Net Proceeds if Borrower or such
Subsidiary applies such Net Proceeds to acquire assets that are used or useful
in the business of Borrower or such Subsidiary within 180 days of receipt by
Borrower or such Subsidiary of such Net Proceeds (if upon the expiration of
such 180-day period any of such Net Proceeds have not been so applied, Borrower
immediately shall repay the Loans (or reduce the Letter of Credit Liability
pursuant to Subsection 1.16) in an amount equal to such remaining Net
Proceeds).  All such repayments shall be
paid and applied in accordance with Subsection 1.8.  All prepayments shall be accompanied by
accrued interest on the amount prepaid and any applicable Breakage Fees and any
other fees required pursuant to Subsection 1.4.

 

17

 

(D)                               Repayments from Debt Issuances. 
Immediately upon receipt by Borrower or any Subsidiary of Borrower of
Net Proceeds relating to the issuance by Borrower or any Subsidiary of Borrower
of any public or private debt (other than Indebtedness permitted under Subsection
3.1), Borrower shall be obligated to repay the Loans (or reduce the Letter of
Credit Liability pursuant to Subsection 1.16) in an amount equal to such Net
Proceeds.  All such repayments shall be
paid and applied in accordance with Subsection 1.8. All prepayments shall be
accompanied by accrued interest on the amount prepaid and any applicable
Breakage Fees and any other fees required pursuant to Subsection 1.4.

 

1.8                                 Application of Prepayments and
Repayments; Payment of Breakage Fees, Etc.  Subject to the
last sentence of this Subsection 1.8, all prepayments pursuant to Subsection
1.7(A) to be applied to the Loans shall be applied as Borrower shall
direct.  Each repayment made pursuant to
Subsection 1.7(B) through (D) shall be applied first, pro rata
to the outstanding principal balance of the Term Loan Facilities (including pro
rata to any Incremental Term Loan Facility, if and when applicable), and second,
to repay the Revolver Loans (or reduce the Letter of Credit Liability pursuant
to Subsection 1.16).  All repayments made
pursuant to Subsections 1.6 and 1.7 shall first be applied to a Base Rate Loan
or such of the LIBOR Loans as Borrower shall direct in writing and, in the
absence of such direction, shall first be applied to a Base Rate Loan and then to
such LIBOR Loans as Administrative Agent shall select.  All prepayments and repayments required or
permitted hereunder shall be accompanied by payment of all applicable Breakage
Fees and accrued interest on the amount prepaid or repaid.  All prepayments and repayments applied to the
Term Loan A, the Term Loan B or any Incremental Term Loan shall be applied to
principal installments in the inverse order of maturity; provided that
Borrower may direct in writing that any prepayment made pursuant to Subsection
1.7(A) to the Term Loan Facilities be applied pro rata first, to up
to the next two (2) scheduled principal payments on each of the Term Loan
Facilities and second, pro rata across the remaining scheduled principal
payments of the Term Loan Facilities.

 

1.9                                 Loan Accounts. 
Administrative Agent will maintain loan account records for (A) all
Loans, interest charges and payments thereof, (B)  all Letter of
Credit Liability, (C) the charging and payment of all fees, costs and
expenses and (D) all other debits and credits pursuant to this
Agreement.  The balance in the loan
accounts shall be presumptive evidence of the amounts due and owing to Lenders,
absent manifest error, provided that any failure by Administrative Agent
to maintain such records shall not limit or affect Borrower’s obligation to
pay.  After the occurrence and during the
continuance of an Event of Default, Borrower irrevocably waives the right to
direct the application of any and all payments and Borrower hereby irrevocably
agrees that Administrative Agent and the Lenders shall have the continuing
exclusive right to apply and reapply payments to any of the Obligations in any
manner it or they deem appropriate.

 

1.10                           Changes in LIBOR Rate Availability.

 

(A)                              If with respect to any proposed LIBOR
Interest Period, Administrative Agent or any Lender (after consultation with
Administrative Agent) determines that deposits in dollars (in the applicable
amount) are not being offered in the relevant market for such LIBOR Interest
Period, or Lenders having a Pro Rata Share of 50% or more under a Facility
determine (and notify Administrative Agent) that the LIBOR rate applicable
pursuant to Subsection 

 

18

 

1.2(A)(ii) for any requested LIBOR Interest
Period with respect to a proposed LIBOR Loan under such Facility does not
adequately and fairly reflect the cost to such Lenders of funding such Loan,
Administrative Agent shall forthwith give notice thereof to Borrower and
Lenders, whereupon and until such affected Lender or Lenders notifies
Administrative Agent, and Administrative Agent notifies Borrower and the other
Lenders that the circumstances giving rise to such situation no longer exist,
the obligations of any affected Lender to make its portion of such type of
LIBOR Loan shall be suspended and such affected Lender shall make its Pro Rata
Share of such type of LIBOR Loan as a Base Rate Loan or such other type of Loan
as permitted by Administrative Agent. 
Any Lender may, in its sole discretion, waive the benefits and
provisions of this Subsection with respect to any proposed LIBOR Interest
Period.

 

(B)                                If the introduction of, or any change in,
any Applicable Law or any change in the interpretation or administration
thereof by any Governmental Authority, central bank or comparable agency
charged with the interpretation or administration thereof, or compliance by any
Lender with any request or directive (whether or not having the force of law)
of any such Governmental Authority, central bank or comparable agency, in each
case occurring after the Closing Date, shall make it unlawful or impossible for
one or more Lenders to honor its obligations hereunder to make or maintain any
LIBOR Loan, such Lender shall promptly give notice thereof to Administrative
Agent, and Administrative Agent shall promptly give notice thereof to Borrower
and all other Lenders.  Thereafter, until
such Lender or Lenders notify Administrative Agent, and Administrative Agent
notifies Borrower and the other Lenders that such circumstances no longer
exist, (i) the obligations of such Lender or Lenders to make LIBOR Loans
and the right of Borrower to convert any Loan of such Lender or Lenders to a
LIBOR Loan or continue any Loan of such Lender or Lenders as a LIBOR Loan shall
be suspended and (ii) if any Lender may not lawfully continue to maintain
a LIBOR Loan to the end of the then current LIBOR Interest Period applicable
thereto, such Loan shall immediately be converted to the Base Rate Loan.

 

1.11                           Capital Adequacy and Other Adjustments.

 

(A)                              If after the Closing Date there occurs
the introduction, or change in the interpretation of, any law, rule, or
regulation the effect of which would increase the reserve requirement or
otherwise increase the cost to any Lender of making or maintaining a LIBOR
Loan, then Administrative Agent, on behalf of all affected Lenders, shall
submit a certificate to Borrower setting forth the amount and demonstrating the
calculation of such increased cost. Borrower shall be obligated to pay the
amount of such increased cost to Administrative Agent for the benefit of the
affected Lenders within 15 days after receipt of such certificate.  Such certificate shall, absent manifest
error, be final, conclusive and binding for all purposes.  There is no limitation on the number of times
such a certificate may be submitted; provided that any such certificate
may not seek increased costs for any period prior to the date that is six (6) months
prior to the date of such certificate.

 

(B)                                In the event that the adoption after the
Closing Date of any law, treaty, governmental (or quasi-governmental) rule,
regulation, guideline or order regarding capital adequacy, reserve requirements
or similar requirements or compliance by any Lender or any corporation
controlling such Lender with any request or directive regarding capital
adequacy, reserve requirements or similar requirements (whether or not having
the force of law and 

 

19

 

whether or not failure to comply therewith would be
unlawful) from any central bank or governmental agency or body having
jurisdiction does or shall have the effect of increasing the amount of capital,
reserves or other funds required to be maintained by such Lender or any
corporation controlling such Lender and thereby reducing the rate of return on
such Lender’s or such corporation’s capital as a consequence of its obligations
hereunder, then Borrower shall be obligated, from time to time within 15 days
after notice and demand from such Lender (together with the certificate
referred to in the next sentence and with a copy to Administrative Agent), to
pay to Administrative Agent, for the account of such Lender, additional amounts
sufficient to compensate such Lender for such reduction.  A certificate as to the amount of such cost
and showing the basis of the computation of such cost submitted by such Lender
to Borrower and Administrative Agent shall, absent manifest error, be final,
conclusive and binding for all purposes. 
There is no limitation on the number of times such a certificate may be
submitted; provided that any such certificate may not seek increased
costs for any period prior to the date that is six (6) months prior to the
date of such certificate.

 

1.12                           Optional Prepayment/Replacement of Lender
in Respect of Increased Costs or Defaulted Lenders. 
Within 15 days after receipt by Borrower of written notice and demand
from any Lender for payment of additional costs as provided in Subsections
1.11, 1.13 or 1.14 or if it becomes illegal or impossible for any Lender to
continue to fund or to make LIBOR Loans pursuant to Subsection 1.10(B), as a
result of any condition described in any of such Subsections, or if any Lender
is a Defaulting Lender (any such Lender, an “Affected
Lender”) then, unless such Lender has theretofore removed or cured
the conditions creating the cause for such obligation to pay such additional
amounts or for such illegality or impossibility, or has ceased to be a
Defaulting Lender, Borrower may, at its option, notify Administrative Agent and
such Affected Lender of its intention to do one of the following:

 

(A)                              Borrower may obtain, at Borrower’s
expense, a replacement Lender (“Replacement
Lender”) for such Affected Lender, which Replacement Lender shall be
reasonably satisfactory to Administrative Agent.  In the event Borrower obtains a Replacement
Lender within 90 days following notice of its intention to do so, the Affected
Lender shall sell and assign its Loans and its obligations under the Loan
Commitments to such Replacement Lender at a price (including accrued interest)
that is reasonably acceptable to the Affected Lender and the Replacement Lender
(it being agreed that an assignment at par (plus accrued interest) or a higher
price is deemed to be acceptable), provided that Borrower has reimbursed such
Affected Lender for its increased costs for which it is entitled to
reimbursement under this Agreement through the date of such sale and
assignment; or

 

(B)                                Borrower may prepay in full all
outstanding Obligations owed to such Affected Lender and terminate such
Affected Lender’s Pro Rata Share of the Loan Commitments, in which case the
Loan Commitments will be permanently reduced by the amount of such Pro Rata
Share.  Borrower shall, within 90 days
following notice of its intention to do so, prepay in full all outstanding
Obligations owed to such Affected Lender (including all applicable Breakage
Fees and such Affected Lender’s increased costs for which it is entitled to
reimbursement under this Agreement through the date of such prepayment), and terminate
such Affected Lender’s obligations under the Loan Commitments.  Any such prepayment pursuant to this
Subsection 1.12(B) shall be applied in accordance with Subsection 1.8
(except that such prepayment shall be solely for the account of the Affected
Lender and not for the account of all 

 

20

 

the Lenders in accordance with their Pro Rata Shares)
and shall be accompanied by payment of all applicable Breakage Fees and accrued
interest on the amount repaid.

 

1.13                           Taxes.

 

(A)                              No Deductions. 
Any and all payments or reimbursements made hereunder or under the Notes
shall be made free and clear of and without deduction for any and all taxes,
levies, imposts, deductions, charges or withholdings, and all liabilities with
respect thereto (all such taxes, levies, imposts, deductions, charges or
withholdings and all liabilities with respect thereto, excluding such taxes
imposed on net income, herein “Tax
Liabilities”), excluding, however, any Excluded Taxes.  If Borrower shall be required by law to
deduct any such Tax Liabilities (net of Excluded Taxes) from or in respect of
any sum payable hereunder to any Lender or Administrative Agent, then, except
as provided in Subsection 1.13(B) and the last sentence of this Subsection
1.13(A), the sum payable hereunder shall be increased as may be necessary so
that, after making all required deductions, such Lender or Administrative Agent
receives an amount equal to the sum it would have received had no such
deductions been made.  Notwithstanding
the foregoing, any Lender that fails to provide Borrower and Administrative
Agent a properly completed and executed IRS Form W-9 will be subject to
backup withholding on payments to such Lender without any gross-up hereunder.

 

(B)                                Foreign Lenders. 
Each Lender which would not be considered a United States Person under
the IRC (“Foreign Lender”) as to
which payments made under this Agreement or under the Notes is exempt for
withholding tax under the IRC or is subject to withholding tax at a reduced
rate under an applicable statute or tax treaty shall provide to Borrower and
Administrative Agent (i) a properly completed and executed United States
Internal Revenue Service Form W-8ECI or W-8BEN or other applicable form,
certificate or document prescribed by the Internal Revenue Service of the
United States certifying as to such Foreign Lender’s entitlement to such
exemption or reduced rate of withholding with respect to payments to be made to
such Foreign Lender under this Agreement and under the Notes (a “Certificate of Exemption”) and, in the case
of a Foreign Lender claiming exemption under Sections 871(h) or 881(c) of
the IRC, a certificate in form and substance acceptable to Borrower that such
Foreign Lender is not (1) receiving interest under the Notes as a bank on
an extension of credit made pursuant to a loan agreement entered into in the
ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of
the IRC, (2) a “10 percent shareholder” of Borrower within the meaning of Section 881(c)(3)(B) of
the IRC and (3) a “controlled foreign corporation” described in Section 881(c)(3)(C) of
the IRC (the “Portfolio Interest Exemption Certificate”)
or (ii) letter from any such Foreign Lender stating that it is not
entitled to any such exemption or reduced rate of withholding (a “Letter of Non-Exemption”).  Prior to
becoming a Lender under this Agreement and within 15 days after a reasonable
written request of Borrower or Administrative Agent from time to time
thereafter, each Foreign Lender that becomes a Lender under this Agreement
shall provide a Certificate of Exemption (and a Portfolio Interest Exemption
Certificate, if applicable) or a Letter of Non-Exemption to Borrower and
Administrative Agent.

 

If
a Foreign Lender is entitled to an exemption with respect to payments to be
made to such Foreign Lender under this Agreement (or to a reduced rate of
withholding) and 

 

21

 

does
not provide a Certificate of Exemption (and a Portfolio Interest Exemption
Certificate, if applicable) to Borrower and Administrative Agent within the
time periods set forth in the preceding paragraph, Borrower shall withhold
taxes from payments to such Foreign Lender at the applicable statutory rates
and Borrower shall not be required to pay any additional amounts as a result of
such withholding, provided that all such withholding shall cease or be
reduced, as appropriate, upon delivery by such Foreign Lender of a Certificate
of Exemption (and a Portfolio Interest Exemption Certificate, if applicable) to
Borrower and Administrative Agent.

 

(C)                                Tax Refund.  If and to the
extent that Administrative Agent or any Lender determines in its good faith
discretion that it has received a refund for or a credit or deduction of any
amounts which have been paid under this Subsection 1.13 or Subsection 1.14, it
shall pay to Borrower the portion of such refund, credit or deduction that it
determines in its reasonable discretion will leave it, after such payment, in
no better or worse after-tax financial position (taking into account any
out-of-pocket expenses of Administrative Agent or such Lender) than if the Tax
Liability or cost giving rise to the payment had not been imposed in the first
instance; provided, however, that Borrower, upon the request of Administrative
Agent or such Lender, agrees to repay the amount paid over to Borrower to
Administrative Agent or such Lender (along with any applicable interest or
penalties) in the event Administrative Agent or such Lender is required to
repay such amounts to such Governmental Authority.  This Subsection 1.13(C) shall not be
construed to require Administrative Agent or any Lender to make available its
tax returns or other confidential tax information to Borrower or any other Person.

 

1.14                           Changes in Tax Laws. 
In the event that, subsequent to the Closing Date, (A) any changes
in any existing law, regulation, treaty or directive or in the interpretation
or application thereof, (B) any new law, regulation, treaty or directive
enacted or any interpretation or application thereof, or (C) compliance by
Administrative Agent or any Lender with any request or directive (whether or
not having the force of law) from any Governmental Authority:

 

(i)                                     does or shall subject Administrative Agent
or any Lender to any tax of any kind whatsoever with respect to this Agreement,
the other Loan Documents or any Loans made hereunder, or change the basis of
taxation of payments to Administrative Agent or such Lender of principal, fees,
interest or any other amount payable hereunder (except for Excluded Taxes); or

 

(ii)                                  does or shall impose on Administrative
Agent or any Lender any other condition or increased cost in connection with
the transactions contemplated hereby or participations herein;

 

and
the result of any of the foregoing is to increase the cost to Administrative
Agent or any such Lender of making or continuing any Loan hereunder, or to
reduce any amount receivable hereunder, as the case may be, then, in any such
case, Borrower shall be obligated to promptly pay to Administrative Agent or
such Lender, upon its demand, any additional amounts necessary to compensate
Administrative Agent or such Lender, on an after-tax basis, for such additional
cost or reduced amount receivable, as reasonably determined by Administrative
Agent or such Lender with respect to this Agreement or the other Loan
Documents.  If Administrative Agent or
such Lender becomes entitled to claim any additional amounts pursuant to this Subsection
1.14, it shall promptly notify Borrower of the event by reason of which
Administrative Agent or such 

 

22

 

Lender
has become so entitled.  A certificate as
to any additional amounts payable pursuant to the foregoing sentence submitted
by Administrative Agent or such Lender to Borrower and Administrative Agent
shall, absent manifest error, be final, conclusive and binding for all
purposes.  There is no limitation on the
number of times such a certificate may be submitted.

 

Notwithstanding
the forgoing, Administrative Agent and any such Lender shall cooperate with
Borrower to reduce or eliminate any additional amounts owed under this
Subsection 1.14 and shall provide Borrower with such certificate or similar
document(s) as may reasonably be requested by Borrower in order to relieve
Borrower of any obligation to pay any portion of the payments owed
pursuant to this Subsection 1.14.

 

1.15                           Term of this Agreement. 
All of the Obligations shall become due and payable as otherwise set
forth herein.  This Agreement shall
remain in effect through and including, and (except with respect to provisions
hereof expressly stated herein to survive any such termination) shall terminate
immediately after, the date on which all Obligations (other than contingent
indemnity, expense reimbursement and tax gross-up payments for which no claim
has been asserted) shall have been paid and satisfied in full in cash.

 

1.16                           Letter of Credit Liability. 
Upon the occurrence and during the continuance of an Event of Default and
at the direction of Administrative Agent, and in the event any Letters of
Credit are outstanding at the time that Borrower terminates the Revolver Loan
Commitment, then (A) with respect to each such Letter of Credit, Borrower
shall either (i) deliver to Administrative Agent for the benefit of all
Lenders with a Revolver Loan Commitment a letter of credit in the same currency
that such Letter of Credit is payable, with a term that extends 60 days beyond
the expiration date of such Letter of Credit, issued by a bank satisfactory to
Administrative Agent and in an amount equal to 103% of the aggregate
outstanding Letter of Credit Liability with respect to such Letter of Credit,
which letter of credit shall be drawable by Administrative Agent to reimburse
payments of drafts drawn under such Letter of Credit and to pay any fees and
expenses related thereto or (ii) immediately deposit with Administrative
Agent an amount equal to the aggregate outstanding Letter of Credit Liability
to enable Administrative Agent to make payments under the Letters of Credit
when required and such amount shall become immediately due and payable, and (B) Borrower
shall prepay the fees payable under Subsection 1.4(E) with respect to all
such Letters of Credit for the full remaining terms of such Letters of
Credit.  Upon termination of any such
Letter of Credit, the unearned portion of such prepaid fee attributable to such
Letter of Credit shall be refunded to Borrower.

 

1.17                           Defaulting Lenders.

 

(A)                              Letters of Credit.

 

(i)                                     If any Revolving Lender becomes, and
during the period it remains, a Defaulting Lender or a Potential Defaulting
Lender, if any Letter of Credit is at the time outstanding, any Issuing Lender (x) may
by notice to Borrower and such Defaulting Lender or Potential Defaulting Lender
through Administrative Agent, require Borrower, such Defaulting Lender or such
Potential Defaulting Lender to cash collateralize the obligations of Borrower
to such Issuing Lender in respect of such Letter of Credit in an amount equal
to the Pro Rata Share of the Letter of Credit Liability 

 

23

 

(contingent or otherwise) of such Defaulting Lender or such Potential
Defaulting Lender, as the case may be, in respect thereof, and (y) will
not be required to amend or extend such Letter of Credit unless Issuing Lender
is reasonably satisfied that any exposure that would result therefrom is
eliminated or fully covered, whether by cash collateralization or otherwise; provided
that, at Borrower’s option, instead of such cash collateralization, Borrower
may, by notice to Administrative Agent and Issuing Lender, elect to reallocate
all or any part of the Defaulting Lender’s or Potential Defaulting Lender’s Pro
Rata Share of Letter of the Credit Liability with respect to such Letter of
Credit among all Revolver Lenders that are not Defaulting Lenders or Potential
Defaulting Lenders but only to the extent (x) the sum of (i) the
aggregate Pro Rata Shares of all Revolver Lenders that are not Defaulting
Lenders or Potential Defaulting Lenders of (1) the outstanding Revolver
Loans and (2) all Letter of Credit Liabilities with respect to all
outstanding Letters of Credit plus (ii) such Defaulting Lender’s or
Potential Defaulting Lender’s Pro Rata Share of the aggregate Letter of Credit
Liability with respect to all outstanding Letters of Credit, except to the
extent cash collateralized, does not exceed the Revolver Loan Commitment
(excluding the Revolver Loan Commitment of any Defaulting Lender or Potential
Defaulting Lender except to the extent of any outstanding Revolver Loans of
such Defaulting Lender or Potential Defaulting Lender) and (y) the
conditions set forth in Section 7.03 are satisfied at such time (in which
case the Revolver Loan Commitment of all Defaulting Lenders or Potential
Defaulting Lender shall be deemed to be zero (except to the extent cash
collateral has been posted in respect of any portion of such Defaulting Lender’s
or Potential Defaulting Lender’s Letter of Credit Liability) for purposes of
any determination of the Revolver Lenders’ respective Pro Rata Shares of Letter
of Credit Liabilities (including for purposes of all fee calculations
hereunder)); provided, further, that no such reallocation by
Borrower shall change the status of a Defaulting Lender or Potential Defaulting
Lender as such, or otherwise limit, reduce or qualify the obligations of such
Defaulting Lender or Potential Defaulting Lender with respect to its
obligations under this Agreement and the other Loan Documents.

 

(ii)                                  No payment by Borrower or delivery or
application of cash collateral pursuant to clause (i) above shall change
the status of a Defaulting Lender or Potential Defaulting Lender as such, or
otherwise limit, reduce or qualify the obligations of such Defaulting Lender or
Potential Defaulting Lender with respect to its obligations under this
Agreement and the other Loan Documents.

 

(iii)                               Any amount deposited by Borrower pursuant to clause (i) above
with respect to any outstanding Letter of Credit will not be paid or distributed
to the relevant Defaulting Lender or Potential Defaulting Lender, but will
instead be retained by Administrative Agent in a segregated account until such
Lender is no longer a Defaulting Lender or Potential Defaulting Lender, at
which point such amounts will be returned to Borrower.

 

(B)                                Cure.  If Borrower,
Administrative Agent and each Issuing Lender agree in writing in their
discretion that a Lender that is a Defaulting Lender or a Potential Defaulting
Lender should no longer be deemed to be a Defaulting Lender or Potential
Defaulting Lender, as the case may be, Administrative Agent will so notify the
Lenders, whereupon as of the effective date specified in such notice (and
agreed to by Borrower) and subject to any conditions set forth

 

24

 

 

therein (and agreed to by Borrower) such Lender will
cease to be a Defaulting Lender or Potential Defaulting Lender and will be a
non-Defaulting Lender; provided that no adjustments will be made
retroactively with respect to fees accrued or payments made by or on behalf of
Borrower while such Lender was a Defaulting Lender; and provided, further,
that except to the extent otherwise expressly agreed by the affected parties,
no change hereunder from Defaulting Lender or Potential Defaulting Lender to
non-Defaulting Lender will constitute a waiver or release of any claim of any
party hereunder arising from such Lender’s having been a Defaulting or
Potential Defaulting Lender.

 

(C)                                Remedies.  Except as
otherwise expressly provided in this Agreement, performance by Borrower of its
Obligations under this Agreement and the other Loan Documents shall not be
excused or otherwise modified, as a result of any Funding Default or the
operation of this Subsection 1.17.  The
rights and remedies against any Defaulting Lender or Potential Defaulting
Lender under this Subsection 1.17 are in addition to any other rights and
remedies that Borrower, Administrative Agent or any Lender may have against any
such Defaulting Lender or Potential Defaulting Lender, as the case may be.

 

SECTION 2

AFFIRMATIVE COVENANTS

 

Each
Loan Party hereby covenants and agrees that so long as this Agreement is in
effect and until payment in full of all Obligations (other than contingent
indemnity, expense reimbursement and tax gross-up payment for which no claim
has been asserted), unless Requisite Lenders shall otherwise give their prior
written consent, it shall perform and comply, and shall cause each of its
respective Subsidiaries to perform and comply, with all covenants in this Section 2.

 

2.1                                 Compliance With Laws. 
The Loan Parties will (A) comply with and will cause their
respective Subsidiaries to comply with the requirements of all Applicable Laws
(including laws, rules, regulations and orders relating to taxes, employer and
employee contributions, securities, employee retirement and welfare benefits,
environmental protection matters and employee health and safety) as now in
effect and which may be imposed in the future in all jurisdictions in which the
Loan Parties and their respective Subsidiaries are now doing or hereafter do
business, (B) obtain and maintain and will cause their respective
Subsidiaries to obtain and maintain all licenses, qualifications and permits
(including the Licenses) now held or hereafter required for the Loan Parties or
any of their respective Subsidiaries to operate, and (C) comply with and
will cause their respective Subsidiaries to comply with all Material Contracts,
other than, in all such cases, as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.  This Subsection 2.1 shall not preclude
the Loan Parties or any of their respective Subsidiaries from contesting any
taxes or other payments, if they are being diligently contested in good faith
and if adequate reserves therefor are maintained in conformity with GAAP.

 

2.2                                 Maintenance of Books and Records;
Properties; Insurance.  The Loan Parties will keep and
will cause their respective Subsidiaries to keep adequate records and books of
account, in which full, true and correct entries will be made in accordance
with GAAP consistently 

 

25

 

applied, reflecting all financial transactions of such
Persons.  The Loan Parties will maintain
or cause to be maintained and will cause their respective Subsidiaries to
maintain or cause to be maintained in good repair, working order and condition
all Collateral used in the business of the Loan Parties and their respective
Subsidiaries, and will make or cause to be made all appropriate repairs,
renewals and replacements thereof, except for (A) dispositions of assets
permitted hereunder or (B) as would not reasonably, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.  The Loan Parties will and will cause each of
their respective Subsidiaries to maintain complete, accurate and up-to-date
books, records, accounts and other information relating to all Collateral in
such form and in such detail as may be satisfactory to Administrative Agent.  The Loan Parties will and will cause their
respective Subsidiaries to maintain or cause to be maintained, with financially
sound and reputable insurers, insurance with respect to their business and
properties and the business and properties of their respective Subsidiaries
against loss and damage of the kinds and of such types, with such insurers, in
such amounts, with such limits and deductibles and otherwise on such terms and
conditions as customarily carried or maintained by companies of established
reputation engaged in similar businesses, and will deliver evidence thereof to
Administrative Agent on or prior to the Closing Date and thereafter prior to or
upon any expiration thereof, evidence of renewal of such insurance.   If
any part of the Collateral lies within a “special flood hazard area” as defined
and specified by the Federal Emergency Management Agency (or other appropriate
Governmental Authority) pursuant to the Flood Disaster Protection Act of 1973,
as amended (the “FDPA”), and
Administrative Agent determines that flood insurance coverage is required to be
obtained for such Collateral in order for Administrative Agent and the Lenders
to comply with the FDPA, the Loan Parties shall obtain and maintain such flood
insurance policies as Administrative Agent reasonably requests so that
Administrative Agent and the Lenders shall be deemed in compliance with the
FDPA and shall deliver evidence thereof to Administrative Agent.  The Loan Parties will, and will cause their
respective Subsidiaries, to name Administrative Agent, pursuant to endorsements
and assignments in form and substance reasonably satisfactory to Administrative
Agent, (i) as a lender loss payee and mortgagee, if applicable, in the
case of casualty insurance with respect to the Collateral, (ii) as an
additional insured in the case of all liability insurance, and (iii) as an
additional insured in the case of all flood insurance.  Unless Administrative Agent otherwise agrees,
all insurance policies required hereunder shall include effective waivers by the
insurer of subrogation.  Unless
Administrative Agent otherwise agrees, Borrower shall use commercially
reasonable efforts to obtain for all insurance policies endorsements providing
that each such insurance policy is non-cancelable and not subject to material
change as to Administrative Agent except upon 30 days’ (and 10 days’ for
non-payment of premiums) prior written notice given by the insurer to
Administrative Agent.

 

Administrative
Agent shall be entitled, upon reasonable advance notice, to review and/or
receive copies of, the insurance policies of the Loan Parties and their
respective Subsidiaries carried and maintained with respect to the Loan Parties’
obligations under this Subsection 2.2. Notwithstanding anything to the contrary
herein, no provision of this Subsection 2.2 or any provision of this Agreement
shall impose on Administrative Agent and the Lenders any duty or obligation to
verify the existence or adequacy of the insurance coverage maintained by the
Loan Parties and their respective Subsidiaries, nor shall Administrative Agent
and the Lenders be responsible for any representations or warranties made by or
on behalf of the Loan Parties and their respective Subsidiaries to any
insurance broker, company or underwriter. 
Administrative 

 

26

 

Agent,
at its sole option, may obtain any insurance required hereunder if not provided
by the Loan Parties and in such event, the Loan Parties shall reimburse
Administrative Agent upon demand for the cost thereof.

 

2.3                                 Inspection.  The Loan
Parties will permit, and will cause each of their respective Subsidiaries to
permit, at the expense of the Loan Parties, any authorized representatives of
Administrative Agent (together with any authorized representatives of any
Lender that desires to have its authorized representatives accompany
Administrative Agent’s authorized representatives) (A) to visit and
inspect any of the properties of the Loan Parties and their respective
Subsidiaries, including their financial and accounting records, and to make
copies and take extracts therefrom, and (B) to discuss their affairs,
finances and business with their officers, employees and certified public
accountants, in each case upon reasonable prior notice at such reasonable times
during normal business hours and as often as may be reasonably requested; provided,
that, except during the continuance of an Event of Default, each visit
or inspection by Administrative Agent in excess of one (1) visit or
inspection during a calendar year shall not be at the Loan Parties’ expense but
shall be at the sole expense of Administrative Agent or Lenders; provided,
further, that during the continuance of an Event of Default, the authorized
representatives of Administrative Agent and any Lender may conduct such visits
and inspections and engage in such discussions without notice and as frequently
and at such times as they may specify.

 

2.4                                 Legal Existence, Etc. 
Except as otherwise permitted by Subsections 3.6 or 3.7 or as
contemplated on Schedule 5.19 of this Agreement, the Loan Parties will,
and will cause their respective Subsidiaries to at all times preserve and keep
in full force and effect, their legal existence and good standing and all
rights and franchises (including the Licenses), except as permitted hereunder
and as would not reasonably be expected to have a Material Adverse Effect.

 

2.5                                 Use of Proceeds. 
The Loan Parties will use the proceeds of the Loans, and will cause any
of their respective Subsidiaries who receive (directly or indirectly) proceeds
of the Loans to use such proceeds, solely for working capital, to finance
capital expenditures permitted hereunder, to finance acquisitions and
Investments permitted hereunder (including Permitted Acquisitions and
Investments and the Verizon Acquisition), to finance Restricted Junior Payments
permitted hereunder, to support the issuance of Letters of Credit, to finance
certain transactions costs in connection with all of the foregoing, and other
lawful corporate purposes of Borrower and its Subsidiaries permitted hereunder;
provided that the proceeds of the Term Loan B shall be used solely to finance
the Verizon Acquisition and transaction costs in connection with the Verizon
Acquisition and this Agreement; and provided, further, however, the proceeds of
any Incremental Term Loan shall be used solely for the purposes described in
the amendment or supplement to this Agreement evidencing such Incremental Term
Loan Facility.  No part of any Loan will
be used (directly or indirectly) to purchase any “margin stock” as defined in,
or otherwise in violation of, the regulations of the Federal Reserve System.

 

2.6                                 Further Assurances; Notices. 
The Loan Parties will, and will cause each of their respective
Subsidiaries to, from time to time, do, execute, authorize and deliver, as the
case may be, all such additional and further acts, documents and instruments as
Administrative Agent reasonably requests to consummate the transactions
contemplated hereby and to vest completely in and assure Administrative Agent
and the other Secured Parties of their respective rights under 

 

27

 

this Agreement and the other Loan Documents, including
such financing statements, documents, security agreements and reports to evidence,
perfect or otherwise implement the security for repayment of the Secured
Obligations contemplated by the Loan Documents. 
Other than with respect to the Verizon Acquisition, Borrower will notify
Administrative Agent in each Compliance Certificate delivered pursuant to
Subsection 4.5(C) of (A) the acquisition in fee simple by any Loan
Party of any real property with a purchase price in excess of $1,000,000 or as
to which the loss thereof would have a Material Adverse Effect (a “Material Owned Property”), (B) the lease or license by
any Loan Party after the date hereof of any real property as to which (i) the
annual rentals or equivalent payments exceed $200,000, (ii) the book value
of the assets of the Loan Party located on the leased or licensed location is
in excess of $1,000,000 or (iii) the loss thereof would have a Material
Adverse Effect (a “Material Leased Property”),
(C) the acquisition by any Loan Party of the ownership of or the license
to use any material registered intellectual property (including any domain name
the loss of which would reasonably be expected to result in a Material Adverse
Effect), any commercial tort claim known to a Loan Party (such that a senior
officer of such Loan Party has actual knowledge of the existence of a tort cause
of action and not merely of the existence of the facts giving rise to such
cause of action and known to involve an amount in controversy in excess of
$1,000,000 individually or $5,000,000 in the aggregate), and (D) the
opening or acquisition by any Loan Party of any new deposit, investment or
other accounts.  Each Loan Party,
promptly upon the request of Administrative Agent, will execute and deliver all
such additional documents and instruments as Administrative Agent may
reasonably require with respect to each Material Owned Property and each
Material Leased Property acquired after the date hereof in order to create a
valid and perfected Lien in favor Administrative Agent in such property
(including, upon the request of Administrative Agent, mortgages, leasehold
mortgages, mortgagee waivers, landlord agreements, fixture filings,
environmental audits, completed environmental questionnaires, surveys and title
insurance policies).  Administrative
Agent may elect not to request any documents or instruments as contemplated by
this Subsection 2.6 regarding such Material Owned Property or Material Leased
Property or registered intellectual property under the laws of any country
other than the United States if it determines in its sole discretion that the
costs to the Loan Parties of perfecting a security interest or lien in such
Material Owned Property, Material Leased Property or intellectual property
exceed the relative benefit afforded the Secured Parties.  Each Loan Party, promptly upon the request of
Administrative Agent, also will authenticate or execute and deliver UCC
financing statements (including fixture filings), assignments, security
agreements, control agreements (but only for accounts with an average daily
balance (determined on a trailing six (6) month basis, counting the actual
number of days elapsed) exceeding $1,000,000 for two (2) consecutive
months), and legal opinions as Administrative Agent may reasonably request to
further create or to evidence a valid and perfected Lien in favor of Administrative
Agent in such property.

 

2.7                                 CoBank Equity. 
So long as CoBank is a Lender hereunder, Borrower will acquire equity in
CoBank in such amounts and at such times as CoBank may require in accordance
with CoBank’s Bylaws and Capital Plan (as each may be amended from time to
time), except that the maximum amount of equity that Borrower may be required
to purchase in CoBank in connection with the Loans may not exceed the maximum
amount permitted by the Bylaws and the Capital Plan at the time this Agreement is
entered into.  The rights and obligations
of the parties with respect to such equity and any distributions made on
account thereof or on account of 

 

28

 

Borrower’s equity with CoBank shall be governed by CoBank’s
Bylaws.  CoBank agrees that all Loans
that are made by CoBank and that are retained for its own account and not sold
in a participation shall be entitled to patronage distributions in accordance
with CoBank’s Bylaws; all Loans that are made by CoBank and are included in a
sale of a participation shall not be entitled to patronage distributions.  CoBank’s Pro Rata Share of the Loans and
other Secured Obligations due to CoBank shall be secured by a statutory first
lien on all equity which Borrower may now own or hereafter acquire in
CoBank.  Such equity shall not, however,
constitute security for the Secured Obligations due to any other Secured
Party.  CoBank shall not be obligated to
set off or otherwise apply such equities to Borrower’s obligations to
CoBank.  In the event of any liquidation,
sale, transfer or other disposition of Collateral that includes Borrower’s
equity in CoBank, whether by foreclosure or otherwise, the proceeds
attributable to such equity shall be equal to the face value of such equity as
reflected in the official records of CoBank.

 

2.8                                 Collateral Assignments of Material
Contracts.  The Loan Parties shall promptly execute and
deliver to Administrative Agent, for the benefit of Administrative Agent and
all Lenders, all such Collateral Contract Assignments with respect to Material
Contracts (excluding the  trademark
license agreement executed in connection with the Verizon Purchase Agreement)
as Administrative Agent may reasonably request from time to time, such
Collateral Contract Assignments to contain, to the extent obtainable through
the use of commercially reasonable efforts, a consent to the collateral
assignment of the applicable Material Contract satisfactory to Administrative
Agent and containing such other reasonable terms and conditions in light of the
nature of the applicable Material Contract and the parties thereto other than
the Loan Parties and their respective Subsidiaries.

 

2.9                                 Investment Company Act. 
None of the Loan Parties nor any of their respective Subsidiaries shall
be or become an “investment company” as that term is defined in the Investment
Company Act of 1940, as amended.

 

2.10                           Payment of Obligations. 
Unless contested in good faith by appropriate proceedings and then only
to the extent reserves required by GAAP have been set aside therefore, the Loan
Parties will, and will cause each of their respective Subsidiaries to, (A) pay,
discharge or otherwise satisfy at or before maturity all liabilities and
obligations as and when due (subject to any applicable subordination
provisions), and any additional costs that are imposed as a result of any
failure to so pay, discharge or otherwise satisfy such obligations, except to
the extent failure to do so would not be reasonably likely to have a Material
Adverse Effect, and (B) pay and discharge all taxes, assessments, claims
and governmental charges or levies imposed upon it, upon its income or profits
or upon any of its properties, prior to the date on which penalties would
attach thereto or a lien would attach to any of the properties of the Loan
Parties or their respective Subsidiaries if unpaid unless, in each case, the
same is being contested in good faith and by appropriate proceedings and then
only if and to the extent reserves required by GAAP have been set aside therefor.

 

2.11                           Environmental Laws. 
The Loan Parties will, and will at all times, cause each of their
respective Subsidiaries to:

 

(A)                              Comply in all material respects with, and
ensure compliance in all material respects by all tenants and subtenants, if any,
with, all applicable Environmental Laws and obtain 

 

29

 

and comply in all material respects with and maintain,
and ensure that all tenants and subtenants obtain and comply in all material
respects with and maintain, any and all licenses, approvals, notifications,
registrations or permits required by applicable Environmental Laws except to
the extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect;

 

(B)                                Conduct and complete all investigations,
studies, sampling and testing, and all remedial, removal and other actions
required under Environmental Laws and promptly comply in all material respects
with all lawful orders and directives of all Governmental Authorities regarding
Environmental Laws except to the extent that the same is being contested in
good faith by appropriate proceedings and the pendency of such proceedings
could not reasonably be expected to have a Material Adverse Effect; and

 

(C)                                Defend, indemnify and hold harmless
Administrative Agent and Lenders, and their respective employees, agents,
officers and directors, from and against any and all claims, demands,
penalties, fines, liabilities, settlements, damages, costs and expenses of
whatever kind or nature known or unknown, contingent or otherwise, arising out
of, or in any way relating to the violation of, noncompliance with or liability
under, any Environmental Law applicable to the operations of any Loan Party or
any of its respective Subsidiaries or their respective properties, or any
orders, requirements or demands of Governmental Authorities related thereto,
including, reasonable attorney’s and consultant’s fees, investigation and
laboratory fees, response costs, court costs and litigation expenses, except to
the extent that any of the foregoing is determined by a final and nonappealable
judgment of a court of competent jurisdiction to have resulted from the
negligence or willful misconduct of the party seeking indemnification therefor.  The agreements in this Subsection 2.11 shall survive
repayment of the Obligations and the termination of this Agreement.

 

2.12                           Creation or Acquisition of Subsidiaries. 
Promptly upon (and in any event within 30 days after) the creation or
acquisition of any new Subsidiary (other than (i) an Excluded Subsidiary
or (ii) a Stimulus Recipient Subsidiary if and for so long as the terms
and conditions of any Permitted Stimulus Indebtedness or any grant received by
such Stimulus Recipient Subsidiary from any Stimulus Source Agency prohibit, or
it is reasonably anticipated that such terms and conditions will prohibit, such
Stimulus Recipient Subsidiary from entering into a Joinder Agreement) by any
Loan Party or any Subsidiary of any Loan Party, each such new Subsidiary will
execute and deliver to Administrative Agent a Joinder Agreement, pursuant to
which such new Subsidiary (i) shall become a party hereto as a Guarantor
and (ii) shall become a party to the Pledge and Security Agreement and
shall deliver to Administrative Agent all such other Security Documents and
such legal opinions as Administrative Agent shall reasonably request, and shall
grant to Administrative Agent a Lien upon and security interest in its
Collateral, to the extent provided in the Security Documents, for the Secured
Obligations (provided that no assets of a Foreign Subsidiary or a Foreign
Subsidiary Holding Company shall be required to secure the Obligations by
pledge or otherwise); and

 

Promptly upon (and in any
event within 30 days after (or such later date as Administrative Agent shall
agree to in writing in its sole discretion)) the creation or acquisition of a
new Subsidiary (other than a Stimulus Recipient Subsidiary if and for so long
as the terms and conditions of any Permitted Stimulus Indebtedness or any grant
received by such Stimulus Recipient Subsidiary from any Stimulus Source Agency
prohibit, or it is reasonably anticipated 

 

30

 

that such terms and conditions will prohibit, the
Equity Interests in such Stimulus Recipient Subsidiary from being pledged to
Administrative Agent or require or it is reasonably anticipated will require
that such Equity Interests be pledged to the applicable Stimulus Source Agency)
by any Loan Party or any Subsidiary of any Loan Party, all capital stock or
other equity interest in such Subsidiary owned by any Loan Party or any
Subsidiary of any Loan Party will be pledged to Administrative Agent as follows
(provided that any equity interests in any Foreign Subsidiary or Foreign
Subsidiary Holding Company owned by a Loan Party or another Subsidiary (other
than a Foreign Subsidiary or Foreign Subsidiary Holding Company) which, when
aggregated with all of the other shares of equity interests in such Subsidiary
pledged to Administrative Agent, would result in more than 65% of the total
equity interests entitled to vote of such Subsidiary being pledged to
Administrative Agent, shall not be pledged; provided further that no assets of
a Foreign Subsidiary or Foreign Subsidiary Holding Company, or any Subsidiary
of either thereof or any Equity Interest issued by any such Subsidiary of
either thereof, shall be required to secure the Obligations by pledge or
otherwise):  (i) if a Loan Party
directly owns any of the capital stock of or other equity interest in such new
Subsidiary, such Loan Party will execute and deliver to Administrative Agent an
amendment or supplement to the Pledge and Security Agreement pursuant to which
all such capital stock or other equity interest shall be pledged to
Administrative Agent, together with the certificates evidencing such capital
stock or other equity interest and undated stock or transfer powers duly
executed in blank and such legal opinions as Administrative Agent may
reasonably request; and (ii) if any of the capital stock of or other
equity interest in such new Subsidiary is owned by another Subsidiary (other
than a Foreign Subsidiary or Foreign Subsidiary Holding Company), to the extent
not already covered by the Pledge and Security Agreement, such other Subsidiary
will execute and deliver to Administrative Agent an appropriate joinder,
amendment or supplement to the Pledge and Security Agreement, pursuant to which
all of the capital stock of or other equity interest in such new Subsidiary
owned by such other Subsidiary shall be pledged to Administrative Agent,
together with the certificates evidencing such capital stock or other equity
interest and undated stock or transfer powers duly executed in blank and such
legal opinions as Administrative Agent may reasonably request.

 

As
promptly as reasonably possible, the Loan Parties and their respective
Subsidiaries will deliver any such other documents, certificates and opinions
(including opinions of local counsel in the jurisdiction of organization of each
such new Subsidiary), in form and substance reasonably satisfactory to
Administrative Agent, as Administrative Agent may reasonably request in
connection therewith and will take such other action as Administrative Agent
may reasonably request to create in favor of Administrative Agent a perfected
security interest on a first-priority basis in the Collateral being pledged
pursuant to the documents described above.

 

Administrative
Agent may elect by written notice to Borrower to exempt (i) any new
Subsidiary which is not wholly-owned directly or indirectly by the Loan Parties
and/or (ii) any Loan Party that owns capital stock or other equity
interest in such Subsidiary from the requirements of all or any portion of this
Subsection 2.12 if it determines in its sole discretion that the costs to the
Loan Parties of complying with all or such portion of this Subsection 2.12
exceed the relative benefit afforded the Secured Parties.

 

2.13                           Interest Rate Protection. 
Within 90 days of the Amendment Date, Borrower shall have entered into
or obtained, and Borrower will thereafter maintain in full force and effect, 

 

31

 

Hedge Agreements in form and substance reasonably
satisfactory to Administrative Agent, the effect of which shall be to fix or
limit interest rates payable by Borrower as to at least 33% of the aggregate
principal balance of the Term Loan A outstanding on such date for a period of
not less than two (2) years after such date (adjusted to take into account
amortization of the Term Loan A).  Within
90 days of the earlier of the Initial Funding Date and the Term Loan B
Availability Expiration Date, Borrower shall have entered into or obtained, and
Borrower will thereafter maintain in full force and effect, Hedge Agreements in
form and substance reasonably satisfactory to Administrative Agent, the effect
of which shall be to fix or limit interest rates payable by Borrower as to at
least 33% of the aggregate principal balance of the Term Loan B outstanding on
such date for a period of not less than two (2) years after such date
(adjusted to take into account amortization of the Term Loan B).  Borrower will deliver to Administrative
Agent, promptly upon receipt thereof, copies of such Hedge Agreements (and any
supplements or amendments thereto), and promptly upon request therefor, any
other information reasonably requested by Administrative Agent to evidence its
compliance with the provisions of this Subsection 2.13.

 

2.14                           ERISA.  With respect
to any Plan, other than a Multi-employer Plan, that is intended to qualify
under Section 401(a) of the IRC, the Loan Parties will apply for and
obtain a favorable determination letter within the period provided by
Applicable Law, unless the Plan was adopted by means of a master or prototype
plan that has received a favorable opinion letter from the Internal Revenue
Service upon which the Loan Parties are entitled to rely.

 

2.15                           Post-Closing Letter. 
The Loan Parties shall take each of the actions specified in the
Post-Closing Letter within the time periods specified therein.

 

2.16                           Modifications to Verizon Acquisition
Documentation.  The Loan Parties shall give the Lenders
prompt notice of any amendment, modification, change or consent or agreement to
any amendment, modification, change or consent to or regarding the Verizon
Acquisition Documentation effected on or prior to the Initial Funding
Date.  Upon the Initial Funding Date,
Borrower shall deliver a true and complete copy of the Verizon Acquisition
Documentation and, thereafter, shall promptly deliver a true and complete copy
of any amendment, modification, change or consent to or regarding the Verizon
Acquisition Documentation.

 

2.17                           Notices Regarding Verizon Acquisition. 
Until the Term Loan B Availability Expiration Date, (i) promptly
after becoming aware thereof, Borrower will give notice to Administrative Agent
of any material communication with the FCC (or other Governmental Authority
whose approval is a condition precedent to the consummation of the Verizon
Acquisition) by or on behalf of Borrower or its Affiliates regarding the status
or anticipated timing of approval by the FCC (or such other Governmental
Authority) of the Verizon Acquisition, and (ii) Borrower will give
Administrative Agent weekly updates (which may be provided orally or by
electronic mail) regarding the status or anticipated timing of approval by the
FCC (or such other Governmental Authority).

 

2.18                           Collateral Regarding Verizon Acquisition. 
Borrower shall, within 30 days after the consummation of the Verizon
Acquisition (or prior to such later date as Administrative Agent may specify in
writing), provide or cause to be provided to Administrative Agent, for the
benefit 

 

32

 

of the Lenders, executed account control agreements
with respect to the Acquired Companies’ deposit and securities accounts as
shall be specified by Administrative Agent, all in form and substance
reasonably satisfactory to Administrative Agent, from the appropriate
depository institutions or other entities holding such deposit accounts, in
each case only to the extent required by Subsection 2.6.  Further, Borrower shall, within 90 days after
the consummation of the Verizon Acquisition (or prior to such later date as
Administrative Agent may specify in writing), provide or cause to be provided
to Administrative Agent, for the benefit of the Lenders, executed mortgages,
title commitments, environmental questionnaires, further Phase I or Phase II
reports, fixture filings, legal opinions, landlord consents and flood
insurance, and such other documents or instruments required by Administrative
Agent with respect to the Acquired Companies’ material owned or leased real
property as shall have been specified by Administrative Agent, all in form and
substance reasonably satisfactory to Administrative Agent.

 

SECTION 3

NEGATIVE COVENANTS

 

Each
of the Loan Parties hereby covenants and agrees that so long as this Agreement
is in effect and until payment in full of all Obligations (other than
contingent indemnity, expense reimbursement and tax gross-up payments for which
no claim has been asserted), unless Requisite Lenders shall otherwise give
their prior written consent, such Loan Party shall perform and comply, and
shall cause each of its respective Subsidiaries to perform and comply, with all
covenants in this Section 3.

 

3.1                                 Indebtedness. 
The Loan Parties will not, and will not permit any of their respective
Subsidiaries to, directly or indirectly, create, incur, assume, guaranty or
otherwise become or remain liable with respect to any Indebtedness other than:

 

(A)                              the Loans and the other Obligations;

 

(B)                                the Contingent Obligations permitted by
Subsection 3.4;

 

(C)                                Indebtedness incurred in connection with
any Hedge Agreement permitted pursuant to Subsection 3.14;

 

(D)                               So long as no Event of Default exists
before or will result after giving effect to such Indebtedness, Indebtedness
incurred by GTT in an aggregate outstanding amount not to exceed $25,000,000 at
any time and Indebtedness incurred by BDC in an aggregate outstanding amount
not to exceed $30,000,000 (no more than $20,000,000 of which at any time may be
held by a Person other than Borrower or another Loan Party) at any time upon
terms and conditions (including as to any proposed limitation on distributions
or dividends to be made by GTT or BDC) reasonably acceptable to Administrative
Agent; provided, that, the proceeds of any Indebtedness of BDC
incurred pursuant to this Subsection 3.1(D) shall be used solely for the
purposes of (i) repurchasing stock of BDC from its owners other than
Borrower or any of its Affiliates, (ii) paying dividends to Borrower
(directly or through one or more wholly-owned Subsidiaries), (iii) repaying
Indebtedness owed to Borrower, or (iv) refinancing Indebtedness incurred
under this Subsection 3.1(D);

 

33

 

 

(E)                                 Indebtedness in respect of Investments
permitted pursuant to Subsections 3.3(D) (excluding Indebtedness of a
Person or Indebtedness attaching to the assets of a Person that, in either
case, becomes a Subsidiary (or is a Subsidiary that survives a merger with such
Person) or Indebtedness attaching to assets that are acquired by Borrower or
any Subsidiary, in each case after the Amendment Date as the result of a
Permitted Acquisition and Investment ) or (F);

 

(F)                                 (i) Indebtedness of a Person or
Indebtedness attaching to the assets of a Person that, in either case, becomes
a Subsidiary (or is a Subsidiary that survives a merger with such Person) or
Indebtedness attaching to assets that are acquired by Borrower or any
Subsidiary, in each case after the Amendment Date as the result of a Permitted
Acquisition and Investment; provided that

 

(1)                                  such
Indebtedness existed at the time such Person became a Subsidiary or at the time
such assets were acquired and, in each case, was not created in anticipation
thereof, and

 

(2)                                  such
Indebtedness is not guaranteed in any respect by Borrower or any Subsidiary
(other than by any such Person that so becomes a Subsidiary or is the survivor
of a merger with such Person, or any of its Subsidiaries), and

 

(3)                                  (a) the
equity interests of such Person are pledged to secure the Secured Obligations
to the extent required hereunder, and (b) such Person otherwise complies
with Subsection 2.12, and

 

(4)                                  (a) after
giving pro forma effect to the incurrence of such Indebtedness and the application
of proceeds thereof, Borrower is in compliance with the covenants set forth in
Subsections 4.1 through 4.4 for the most recently ended test period and (b) except
for Indebtedness consisting of capital lease obligations, purchase money
Indebtedness or mortgages or other Liens on specific assets (x) no portion
of such Indebtedness matures prior to the latest maturity date of any of the
Loans, and (y) no portion of such Indebtedness is issued or guaranteed by
a Person that is, or as a result of such acquisition becomes, a Subsidiary that
is not a Guarantor; and

 

(ii)                                  any modification, replacement,
refinancing, refunding, renewal or extension of any Indebtedness specified in subclause
(i) above, provided that, except to the extent otherwise
expressly permitted hereunder, (1) the principal amount of any such
Indebtedness does not exceed the principal amount thereof outstanding
immediately prior to such modification, replacement, refinancing, refunding,
renewal or extension except by an amount equal to the unpaid accrued interest
and premium thereon plus other reasonable amounts paid and fees and
expenses incurred in connection with such modification, replacement,
refinancing, refunding, renewal or extension, (2) the direct and
contingent obligors with respect to such Indebtedness are not changed and (3) if
the Indebtedness being refinanced, or any guarantee thereof, constitutes
subordinated 

 

34

 

indebtedness, then such replacement or refinancing Indebtedness, or
such guarantee, respectively, shall be subordinated to the Secured Obligations
to substantially the same extent;

 

(G)                                Indebtedness with respect to cash
management and similar arrangements in the ordinary course of business;

 

(H)                               Indebtedness arising from agreements of
Borrower or any Subsidiary providing for indemnification, adjustment of
purchase price or similar obligations, in each case entered into in connection
with the disposition of any business, assets or stock permitted hereunder,
other than Contingent Obligations incurred by any Person acquiring all or any
portion of such business, assets or equity interests for the purpose of
financing such acquisition, provided that such amount is not Indebtedness
required to be reflected on the balance sheet of Borrower or any Subsidiary in
accordance with GAAP (contingent obligations referred to in a footnote to
financial statements and not otherwise reflected on the balance sheet will not
be deemed to be reflected on such balance sheet for purposes of this proviso);

 

(I)                                    Indebtedness representing deferred
compensation to employees of Borrower and its Subsidiaries incurred in the
ordinary course of business;

 

(J)                                   Indebtedness in respect of (i) the
RTPark Preferred Stock (provided that any such Indebtedness together with any
Investment permitted under Subsection 3.3(M) shall not exceed $500,000 in
the aggregate), and (ii) in respect of Permitted Stimulus Indebtedness;
and

 

(K)                               Indebtedness under purchase money
security agreements, Capital Leases, and other Indebtedness, the aggregate
principal amount of which shall not exceed $7,500,000 at any time.

 

3.2                                 Liens and Related Matters.

 

(A)                              No Liens.  The Loan
Parties will not, and will not permit any of their respective Subsidiaries to,
directly or indirectly, create, incur, assume or permit to exist any Lien on or
with respect to any property or asset (including any document or instrument
with respect to goods or accounts receivable) of the Loan Parties or their
respective Subsidiaries, whether now owned or hereafter acquired, or any income
or profits therefrom, except Permitted Encumbrances.

 

(B)                                No Negative
Pledges.  The Loan Parties will not and
will not permit their respective Subsidiaries directly or indirectly to enter
into or assume any agreement (other than the Loan Documents) prohibiting the
creation or assumption of any Lien upon its or their properties or assets,
whether now owned or hereafter acquired, except (i) operating leases,
Licenses and Capital Leases and agreements evidencing purchase money Indebtedness
permitted pursuant to Subsection 3.1(F) or (K), in each case which only
prohibit Liens upon the assets that are subject thereto and proceeds thereof, (ii) loan
and security documentation evidencing Permitted Stimulus Indebtedness in each
case which only prohibit Liens upon the assets of the applicable Stimulus
Recipient Subsidiary, (iii) loan and security documentation evidencing
Indebtedness (x) in favor of a Loan Party or (y) permitted pursuant
to Subsection 3.1(D), (iv) 

 

35

 

customary
non-assignment clauses in agreements entered into in the ordinary course of
business, (v) contracts for the sale of assets permitted by Subsection
3.7, and (vi) restrictions imposed by Applicable Law.

 

3.3                                 Investments. 
The Loan Parties will not, and will not permit any of their respective
Subsidiaries to, directly or indirectly, make or own any Investment in any
Person except:

 

(A)                              Investments in Cash Equivalents;

 

(B)                                obligations of or equities in CoBank, as
set forth in Subsection 2.7;

 

(C)                                existing Investments set forth on Schedule
3.3(C) and any extensions, renewals or reinvestments thereof, so long
as the amount of any such Investment pursuant to this clause (C) is not
increased at any time above the amount of such Investment existing on the date
hereof (other than because of capitalization of interest pursuant to the terms
thereof on the date hereof or as amended with the consent of Administrative
Agent);

 

(D)                               Permitted Acquisitions and Investments
and the Verizon Acquisition;

 

(E)                                 Hedge Agreements permitted pursuant to
Subsection 3.14;

 

(F)                                 Investments in Loan Parties;

 

(G)                                loans and advances to officers, directors
and employees of Borrower or any of its Subsidiaries (i) for reasonable
and customary business-related travel, entertainment, relocation and analogous
ordinary business purposes (including employee payroll advances), (ii) in
connection with such Person’s purchase of equity interests of Borrower to the
extent that the cash proceeds of such loans and advances are directly or
indirectly contributed to Borrower in cash and (iii) for purposes not
described in the foregoing subclauses (i) and (ii), in an
aggregate principal amount outstanding pursuant to this subclause (iii) not
to exceed $500,000;

 

(H)                               Investments received in connection with
the bankruptcy or reorganization of suppliers or customers and in settlement of
delinquent obligations of, and other disputes with, customers arising in the
ordinary course of business or upon foreclosure with respect to any secured
Investment or other transfer of title with respect to any secured Investment;

 

(I)                                    Investments consisting of extensions of
credit in the nature of accounts receivable or notes receivable arising from
the grant of trade credit in the ordinary course of business, and Investments
received in satisfaction or partial satisfaction thereof from financially
troubled account debtors and other credits to suppliers in the ordinary course
of business;

 

(J)                                   Investments in the ordinary course of
business consisting of endorsements for collection or deposit and customary
trade arrangements with customers consistent with past practices;

 

(K)                               advances of payroll payments to employees
in the ordinary course of business;

 

36

 

(L)                                 guarantee obligations of any Loan Party
of leases (other than Capital Leases) or of other obligations that do not
constitute Indebtedness, in each case entered into in the ordinary course of
business;

 

(M)                            Investments in the Permitted RTPark Subsidiary
(i) in connection with its formation and (ii) in connection with
funding any obligations with respect of the RTPark Preferred Stock or (iii) in
connection with the purchase by Choice of the RTPark Preferred Stock, the
aggregate amount of which together with any Indebtedness permitted under
Subsection 3.1(J)(i) shall not exceed $500,000 in the aggregate;

 

(N)                               Investments held by a Person (including
the Acquired Companies and their respective Subsidiaries) acquired, or
Investments constituting part of the assets acquired (including, in each case,
by way of merger or consolidation), after the Amendment Date and otherwise in
accordance with this Subsection 3.3 to the extent that such Investments were
not made in contemplation of or in connection with such acquisition, merger or
consolidation and were in existence on the date of such acquisition, merger or
consolidation; and

 

(O)                               Investments in a Stimulus Recipient
Subsidiary upon terms and conditions (including as to any proposed limitation
on distributions or dividends to be made by such Stimulus Recipient Subsidiary)
reasonably acceptable to Administrative Agent; provided that (y) the
aggregate outstanding amount of Investments in Stimulus Recipient Subsidiaries
and the amount of Contingent Obligations entered into by Borrower or any of its
Subsidiaries (other than Stimulus Recipient Subsidiaries) in respect of
Permitted Stimulus Indebtedness shall not exceed $25,000,000 at any time, and (z) the
aggregate outstanding amount of Investments in Stimulus Recipient Subsidiaries,
the amount of Contingent Obligations entered into by Borrower or any of its
Subsidiaries (other than Stimulus Recipient Subsidiaries) in respect of
Permitted Stimulus Indebtedness and the aggregate consideration of all
Permitted Acquisitions and Investments (calculated as provided in
the definition of Permitted Acquisitions and Investments) shall not exceed at any time the sum of (i) $140,000,000
plus (ii) the Net Proceeds of equity issuances by Borrower made
after the earlier of the Initial Funding Date and the Term Loan B Availability
Expiration Date in the amount of up to but not to exceed $100,000,000, which
Net Proceeds have not been used to cure a Default or Event of Default under
Subsection 4.1.

 

3.4                                 Contingent Obligations. 
The Loan Parties will not, and will not permit any of their respective
Subsidiaries to, directly or indirectly, create or become or be liable with
respect to any Contingent Obligation except those:

 

(A)                              resulting from endorsement of negotiable
instruments for collection in the ordinary course of business;

 

(B)                                arising under indemnity agreements to
title insurers in connection with mortgagee title insurance policies in favor
of Administrative Agent for the benefit of itself and the other Lenders;

 

(C)                                arising with respect to customary
indemnification obligations incurred in connection with Permitted Acquisitions
and Investments and permitted dispositions of assets (provided that such
obligations shall in no event exceed the amount of proceeds received in 

 

37

 

connection therewith, subject to carve outs from such
limitation on such obligations for fraud and for other customary reasons);

 

(D)                               arising in the ordinary course of
business with respect to customary indemnification obligations incurred in
connection with liability insurance coverage;

 

(E)                                 incurred in the ordinary course of
business with respect to surety and appeal bonds, performance and
return-of-money bonds and other similar obligations not exceeding at any time
outstanding $2,000,000 in aggregate liability;

 

(F)                                 incurred as a guaranty of Indebtedness
permitted by Subsection 3.1 (provided that such guaranty obligation
shall in no event exceed the amount of such Indebtedness plus other related
costs and expenses of collection as set forth in such guaranty);

 

(G)                                constituting Investments permitted
pursuant to Subsection 3.3 (including commitments to make Permitted
Acquisitions and Investments);

 

(H)                               Contingent Obligations arising with
respect to the RTPark Preferred Stock;

 

(I)                                    Contingent Obligations arising under the
Loan Documents and under Hedge Agreements; and

 

(J)                                   Contingent Obligations arising with
respect to Permitted Stimulus Indebtedness upon terms and conditions (including
as to any proposed limitation on distributions or dividends to be made by any
Loan Party or Subsidiary providing such Contingent Obligation) reasonably
acceptable to Administrative Agent; provided that (y) the aggregate
outstanding amount of Investments in Stimulus Recipient Subsidiaries and the
amount of Contingent Obligations entered into by Borrower or any of its
Subsidiaries (other than Stimulus Recipient Subsidiaries) in respect of
Permitted Stimulus Indebtedness shall not exceed $25,000,000 at any time, and (z) the
aggregate outstanding amount of Investments in Stimulus Recipient Subsidiaries,
the amount of Contingent Obligations entered into by Borrower or any of its
Subsidiaries (other than Stimulus Recipient Subsidiaries) in respect of
Permitted Stimulus Indebtedness and the aggregate consideration of all
Permitted Acquisitions and Investments (calculated as provided in
the definition of Permitted Acquisitions and Investments) shall not exceed at any time the sum of (i) $140,000,000
plus (ii) the Net Proceeds of equity issuances by Borrower made
after the earlier of the Initial Funding Date and the Term Loan B Availability
Expiration Date in the amount of up to but not to exceed $100,000,000, which
Net Proceeds have not been used to cure a Default or Event of Default under Subsection
4.1.

 

3.5                                 Restricted Junior Payments. 
The Loan Parties will not, and will not permit their respective
Subsidiaries to, directly or indirectly, declare, order, pay, make or set apart
any sum for any Restricted Junior Payment; provided, however,
that (A) any Loan Party or Subsidiary may make, declare or pay lawful cash
dividends or distributions to, or redeem capital stock held by, any Loan Party,
(B) any Subsidiary may make, declare or pay lawful, pro rata cash
dividends or distributions and the Permitted RTPark Subsidiary may make
distributions and dividends with respect to the RTPark Preferred Stock, (C) so
long as no Default under Subsections 6.1(A) or (F) 

 

38

 

or any Event of Default exists before or will result
after giving effect to such distribution on a pro forma basis, Borrower and its
Subsidiaries may make, declare or pay lawful cash dividends or distributions to
their respective shareholders and redeem capital stock in an aggregate amount
which when added to any such dividends or distributions and redemptions of
capital stock made, declared or paid from and after January 1, 2009, is
not more than 50% of Borrower’s consolidated net income (excluding non-cash
extraordinary items, such as the writedown or writeup of assets) from January 1,
2009, to the date of any such dividend, distribution or redemption, and (D) so
long as no Default under Subsections 6.1(A) or (F) or any Event of
Default exists before or will result after giving effect to such distribution
on a pro forma basis, Borrower or any of its Subsidiaries may redeem or
repurchase capital stock in connection with the termination of an employee or
pursuant to any Board approved plan, in an aggregate amount during each fiscal
year not to exceed $500,000.

 

3.6                                 Restriction on Fundamental Changes. 
The Loan Parties will not, and will not permit their respective
Subsidiaries to, directly or indirectly: 
(A) unless and only to the extent required by law or as would not
be reasonably expected to be adverse to the interests of Lenders, amend, modify
or waive any term or provision of their respective articles of organization,
operating agreements, management agreements, articles of incorporation,
certificates of designations pertaining to preferred stock, by-laws, articles
of formation or partnership agreement (provided that 10 days prior written
notice will be delivered to Administrative Agent of any modification that
results in a Loan Party, any Subsidiary of a Loan Party or any entity whose
equity interest is pledged by a Loan Party pursuant to the Pledge and Security
Agreement opting into Article 8 of the UCC); (B) enter into any
transaction of merger or consolidation, except that (i) any
Subsidiary of Borrower may be merged with or into Borrower (provided
that Borrower is the surviving entity), (ii) any Loan Party other than
Borrower may merge or consolidate with any other Loan Party other than
Borrower, (iii) any Subsidiary that is not a Loan Party may merge,
dissolve, liquidate, consolidate with or into any Loan Party, provided that
such Loan Party shall be the continuing or surviving corporation, (iv) any
Subsidiary which is not a Loan Party may merge, dissolve, liquidate,
consolidate with or into any other Subsidiary which is not a Loan Party, (v) any
Permitted Acquisition and Investment or any other permitted Investment or any
permitted asset disposition may be structured as merger, consolidation or
amalgamation; (C) liquidate, wind-up or dissolve itself (or suffer any
liquidation or dissolution), except in connection with another transaction
permitted under clause (B) above or any Asset Disposition permitted under
Subsection 3.7; or (D) acquire by purchase or otherwise all or any
substantial part of the business, assets or equity interests of or in any
Person (whether by stock purchase or otherwise) other than pursuant to a
Permitted Acquisition and Investment, the Verizon Acquisition or any other
Investment permitted hereunder; provided that 10 days prior to the
effective date of such merger, consolidation, dissolution, liquidation, or
amalgamation in the case of clause (B) or clause (C), or such acquisition
in the case of clause (D), and promptly following such amendment, modification
or waiver in the case of clause (A), Borrower shall provide written notice and
a copy thereof or the documentation relating thereto to Administrative Agent.

 

3.7                                 Disposal of Assets or Subsidiary Stock. 
The Loan Parties will not, and will not permit their respective
Subsidiaries to, directly or indirectly, convey, sell (including, pursuant to a
sale and leaseback transaction, except those that would be permitted under
Subsection 3.1(K) deeming any such sale-leaseback to be Indebtedness,
subject to documentation reasonably 

 

39

 

satisfactory to Administrative Agent), lease
(including, pursuant to a lease or sale and leaseback transaction), sublease,
transfer or otherwise dispose of, or grant any Person an option to acquire
(including in the case of any Subsidiary, the issuance by such Subsidiary of
its capital stock or other equity interest), in one transaction or a series of
transactions, any of their respective property, business or assets, or the
capital stock of or other equity interests in any such Subsidiary, whether now
owned or hereafter acquired, except for (A) bona fide sales or leases of
inventory to customers in the ordinary course of business, dispositions of
surplus, worn out or obsolete equipment, and any conveyance, lease, sublease,
transfer or other disposition of assets of any Loan Party or its Subsidiaries
to any Loan Party; (B) fair market value sales of Cash Equivalents; (C) leasing
or subleasing of their respective property in the ordinary course of business; (D) to
the extent required by law; (E) any Asset Disposition of non-core assets
of any Person acquired pursuant to a Permitted Acquisition and Investment or
the Verizon Acquisition provided that such Asset Disposition occurs within 18
months of such Permitted Acquisition and Investment or the Verizon Acquisition,
as applicable; (F) asset swaps of domestic wireless assets within 18
months of the Initial Funding Date in an aggregate amount not to exceed
$30,000,000 if (i) after giving effect to such asset swap, Borrower, on a
combined and consolidated basis with its Subsidiaries as set forth in Section 4,
is in compliance on a Pro forma Basis with the covenants set forth in Section 4
recomputed for the most recently ended fiscal quarter for which information is
available, and (ii) no Default or Event of Default then exists or shall
result from such asset swap; (G) all other Asset Dispositions if all of
the following conditions are met: (i) the aggregate market value of such
assets sold in any fiscal year of Borrower does not exceed $7,500,000 in the
aggregate for the Loan Parties and their respective Subsidiaries; (ii) the
consideration received by the Loan Party or such Subsidiary is at least equal
to the fair market value of such assets; (iii) the sole consideration
received is cash or equipment of comparable value to that disposed of and that
is to be used in the business of the Loan Party or such Subsidiary; (iv) after
giving effect to the Asset Disposition, Borrower, on a combined and
consolidated basis with its Subsidiaries as set forth in Section 4, is in
compliance on a Pro forma Basis with the covenants set forth in Section 4
recomputed for the most recently ended fiscal quarter for which information is
available; and (v) no Default or Event of Default then exists or shall
result from the Asset Disposition; (H) the issuance of the RTPark
Preferred Stock and the issuance of up to 10% of the common stock of AWCC
issued to the officers or employees of AWCC or its Subsidiaries (to the extent
such issuances of AWCC common stock are subject to drag along, rights of first
refusal, restrictions on transfer and other terms and conditions reasonably
satisfactory to Administrative Agent); and (I) the issuance or other
disposition by a Subsidiary of its own capital stock or other equity interests (x) in
connection with any Permitted Acquisition and Investment or (y) so long as
such issuing or disposing Subsidiary is not a wholly owned Subsidiary
immediately prior to such issuance or other disposition and such Subsidiary
remains a Subsidiary after taking into account such issuance or other
disposition.

 

3.8                                 Transactions with Affiliates. 
The Loan Parties will not, and will not permit their respective
Subsidiaries to, directly or indirectly, enter into or permit to exist any
transaction (including the purchase, sale, lease or exchange of any property or
the rendering of any service) with any Affiliate or with any director or
officer of the Loan Parties or any Affiliate, except (A) as set forth on Schedule
3.8; (B) as permitted pursuant to Subsections 3.1, 3.2, 3.3, 3.4, 3.5,
3.6, 3.7 and 3.9; (C) transactions upon fair and reasonable terms which
(in the case of transactions requiring payments by any Loan Party or its
Subsidiaries in the aggregate in excess of $250,000 

 

40

 

in any fiscal year) are fully disclosed to Lenders and
are no less favorable to such Loan Party or such Subsidiary than would be
obtained in a comparable arm’s length transaction with a Person that is not an
Affiliate; (D) transactions among the Loan Parties; or (E) payment of
compensation to directors, officers and employees in the ordinary course of
business for services actually rendered in their capacities as directors,
officers and employees, provided such compensation is reasonable and
comparable with compensation paid by companies of like nature and similarly
situated.

 

3.9                                 Management Fees. 
The Loan Parties will not, and will not permit their respective
Subsidiaries to, directly or indirectly, pay any management or other similar
fees to any Person; except management fees paid (A) to any Loan Party, or (B) other
management or similar fees reasonably satisfactory to Requisite Lenders.

 

3.10                           Conduct of Business. 
The Loan Parties will not, and will not permit their respective
Subsidiaries to, directly or indirectly, engage in any business other than
businesses of owning, constructing, managing, operating and investing (subject
to Subsection 3.3) in Communications Systems or other businesses related or
incidental thereto.

 

3.11                           Fiscal Year. 
The Loan Parties will not, and will not permit their respective
Subsidiaries to, change their fiscal year from a fiscal year ending on December 31
of each year.

 

3.12                           Modification of Agreements. 
The Loan Parties will not amend, modify or change, or consent or agree to
any amendment, modification, change or consent to or regarding, any of the
terms of any Material Contracts (other than the Verizon Acquisition
Documentation prior to the Initial Funding Date), except to the extent such
change, amendment, modification or consent is not materially adverse to
Administrative Agent or any Lender and would not otherwise have a Material
Adverse Effect.

 

3.13         Inconsistent Agreements.  The Loan Parties will not, and will not
permit their respective Subsidiaries to, enter into any agreement containing
any provision which would (A) be violated or breached by any borrowing by
Borrower hereunder or by the performance by the Loan Parties or their
respective Subsidiaries of any of their obligations hereunder or under any
other Loan Document (other than permitted Capital Leases and purchase money
security agreements) or (B) create or permit to exist or become effective any
consensual encumbrance or restriction on the ability of such Loan Party or
Subsidiary to (i) pay dividends or make other distributions to its parent or
any other applicable Subsidiary of its parent, or pay any Indebtedness owed to
its parent or any Subsidiary of its parent, (ii) make loans or advances to its
parent or (iii) transfer any of its assets or properties to its parent; in each
case, other than (x) restrictions contained in loan and security documentation
evidencing Permitted Stimulus Indebtedness or Indebtedness permitted pursuant
to Subsection 3.1(D), or (y) restrictions affecting non-wholly-owned
Subsidiaries.

 

3.14         Hedge Agreements.  The Loan Parties will not, and will not
permit their respective Subsidiaries to, engage in any speculative transactions
or in any transaction involving a Hedge Agreement except as required by
Subsection 2.13 or for the sole purpose of hedging in the normal course of
business.

 

41

 

3.15                           Ownership of
Licenses.  Except as noted on Schedule 5.13(A) or
pursuant to a permitted Asset Disposition, the Loan Parties will not permit any
License issued by the United States of America, or state or any political
subdivision thereof, including any agency or commission of any thereof, and
utilized in the business of such Loan Party to be issued, assigned or
transferred to any Subsidiary or Affiliate of a Loan Party who is not a Loan
Party or is not a wholly-owned, domestic Subsidiary of a Loan Party whose
ownership interests are subject to a valid and perfected first priority Lien in
favor of the Secured Parties pursuant to the Pledge and Security Agreement.

 

SECTION 4

FINANCIAL COVENANTS AND REPORTING

 

The
Loan Parties hereby covenant and agree that so long as this Agreement is in
effect and until payment in full of all Obligations (other than contingent
indemnity, expense reimbursement and tax gross-up payment for which no claim
has been asserted), unless Requisite Lenders shall otherwise give their prior
written consent, the Loan Parties shall perform and comply with, and shall
cause each of their respective Subsidiaries to perform and comply with, all
covenants in this Section 4. For the purposes of this Section 4, all
covenants calculated for Borrower shall be calculated on a consolidated basis
for Borrower and its Subsidiaries.

 

4.1                                 Total Leverage Ratio. 
Commencing on the Amendment Date, Borrower shall maintain at all times,
measured at each fiscal quarter end, a Total Leverage Ratio of less than or
equal to 2.5:1.0; provided, however, Borrower will have 30 days
after the applicable reporting date to cure any default under this Subsection
4.1 by reducing the Indebtedness of Borrower on a consolidated basis solely
through an equity issuance.

 

4.2                                 Total Interest Coverage Ratio. 
Commencing on the Amendment Date, Borrower shall maintain at all times,
measured at each fiscal quarter end, a Total Interest Coverage Ratio greater
than 3.5:1.0.

 

4.3                                 Equity to Assets Ratio. 
Commencing on the Amendment Date, Borrower shall maintain at all times,
measured at each fiscal quarter end, an Equity to Assets Ratio greater than
0.35:1.0.

 

4.4                                 Fixed Charge Coverage Ratio. 
Commencing on the Amendment Date, Borrower shall maintain at all times,
measured at each fiscal quarter end, a Fixed Charge Coverage Ratio greater than
1.05:1.0.

 

4.5                                 Financial Statements and Other Reports. 
The Loan Parties will maintain, and will cause their respective
Subsidiaries to maintain, a system of accounting established and administered
in accordance with sound business practices to permit preparation of financial
statements in conformity with GAAP consistently applied (it being understood that
quarterly financial statements are not required to have footnote disclosures or
reflect year end adjustments).  Borrower
will deliver or cause to be delivered each of the financial statements and
other reports described below to Administrative Agent (and each Lender in the
case of the financial statements and other reports described in
Subsections 4.5(A) through (I) and (K)).

 

42

 

(A)                              Quarterly Financials; Other Quarterly
Reports.  As soon as available and in any event no
later than the earlier to occur of (i) 10 days after the date that
Borrower is or would be required to file Borrower’s quarterly report with the
Securities and Exchange Commission (the “SEC”)
as part of Borrower’s periodic reporting (whether or not Borrower is subject to
such reporting requirements) and (ii) 55 days after the end of the first
three fiscal quarters of each fiscal year of Borrower, Borrower will deliver
consolidated and consolidating balance sheets of Borrower and its Subsidiaries,
as at the end of such fiscal quarter and the then elapsed portion of the
applicable fiscal year, and the related consolidated and consolidating
statements of income, shareholders’ equity and cash flows for such fiscal
quarter and for the period from the beginning of the then current fiscal year
of Borrower to the end of such quarter (which requirement shall be deemed
satisfied by the delivery of Borrower’s quarterly report on Form 10-Q (or
any successor form) for such quarter).

 

(B)                                Year-End Financials. 
As soon as available and in any event no later than the earlier to occur
of (i) 10 days after the date that Borrower is or would be required to
file Borrower’s annual report with the SEC as part of Borrower’s periodic
reporting (whether or not Borrower is subject to such reporting requirements),
and (ii) 100 days after the end of each fiscal year of Borrower, Borrower
will deliver (a) consolidated and consolidating balance sheets of Borrower
and its Subsidiaries, as at the end of such year, and the related consolidated
and consolidating statements of income, shareholders’ equity and cash flows for
such fiscal year (which requirement shall be deemed satisfied by the delivery
of Borrower’s Annual Report on Form 10-K (or any successor form) for such
year) and (b) a report with respect to the financial statements received
pursuant to this Subsection from PricewaterhouseCoopers LLP or another firm of
independent certified public accountants of recognized national standing
selected by Borrower and reasonably acceptable to Administrative Agent, which
report shall be prepared in accordance with Statement of Auditing Standards No. 58
(the “Statement”), as amended, entitled “Reports
on Audited Financial Statements” and such report shall be without any material
qualification or exception as to the scope of such audit or any “going concern”
qualification.

 

(C)                                Compliance Certificates. 
Together with each delivery of financial statements of Borrower and its
Subsidiaries pursuant to Subsections 4.5(A) and (B), Borrower will deliver
or cause to be delivered a fully and properly completed compliance certificate
in substantially the same form as Exhibit 4.5(C) (each, a “Compliance Certificate”) signed by two of
the chief executive officer, the chief financial officer and the chief
accounting officer of Borrower.

 

(D)                               Accountants’ Reliance Letter. 
Together with each delivery of financial statements of Borrower and its
Subsidiaries pursuant to Subsection 4.5(B), Borrower will deliver or cause to
be delivered a copy of letters addressed to Borrower’s certified public
accountants identifying Lenders as parties that Borrower intends to rely on the
professional services provided to Borrower by such accountants.

 

(E)                                 Accountants’ Reports. 
Promptly upon receipt thereof, Borrower will deliver or cause to be
delivered copies of all significant reports submitted by Borrower’s firm of
certified public accountants in connection with each annual, interim or special
audit or review of any type of financial statements or related internal control
systems of Borrower made by such 

 

43

 

accountants, including any comment letter submitted by
such accountants to management in connection with their services.

 

(F)                                 Management Report. 
Together with each delivery of financial statements of Borrower and its
Subsidiaries pursuant to Subsections 4.5(A) and 4.5(B), Borrower will
deliver or cause to be delivered (i) if Borrower is no longer subject to
reporting requirements of the Act, reports in scope and content substantively
similar to its present SEC reporting and (ii) quarterly operational data
in scope and content substantially similar to that data now provided to
Borrower’s Board of Directors as its monthly “Dashboard.”  The
information above shall be presented in reasonable detail and shall be
certified by the chief financial officer or chief operating officer of
Borrower, respectively, to the effect that, to his or her knowledge after
reasonable diligence, such information fairly presents the results of
operations and financial condition of Borrower and its Subsidiaries as at the
dates and for the periods indicated.

 

(G)           Budget.  (i) As soon as reasonably available, but in any
event within 60 days after the first day of each fiscal year of Borrower,
respectively, occurring during the term hereof, Borrower shall deliver or cause
to be delivered operating and capital spending budgets (the “Budgets”) of Borrower and its Subsidiaries for such fiscal
year, quarter by quarter and (ii) promptly after becoming aware thereof,
Borrower will deliver or cause to be delivered any material amendment to or
deviation from such Budgets.

 

(H)                               SEC Filings and Press Releases. 
Promptly upon their becoming available, Borrower will deliver or cause
to be delivered copies of (i) all financial statements, reports, notices
and proxy statements sent or made available by any Loan Party or any of their
respective Subsidiaries to any of their security holders generally, (ii) all
regular and periodic reports and all registration statements and prospectuses,
if any, filed by any Loan Party or any of their respective Subsidiaries with
any securities exchange or with the SEC or any governmental or private regulatory
authority, and (iii) all material press releases and other statements made
available by any Loan Party or any of their respective Subsidiaries to the
public concerning developments in the business of any such Person.

 

(I)                                    Events of Default, Etc. 
Promptly upon any executive officer of any Loan Party obtaining
knowledge of any of the following events or conditions, Borrower shall deliver
copies of all notices given or received by any Loan Party or any of their
respective Subsidiaries with respect to any such event or condition and a
certificate of Borrower’s chief executive officer or chief operating officer
specifying the nature and period of existence of such event or condition and
what action, if any, such Loan Party or such Subsidiary has taken, is taking
and proposes to take with respect thereto: 
(i) any Event of Default or Default; or (ii) any notice that
any Person has given to any Loan Party or any of their respective Subsidiaries
or any other action taken with respect to a claimed default or event or
condition of the type referred to in Subsection 6.1(B).

 

(J)                                   Litigation.  Promptly upon
any officer of any Loan Party obtaining knowledge of (i) the institution
of any action, suit, proceeding, governmental investigation or arbitration
against or affecting any Loan Party or any of its respective Subsidiaries not
previously disclosed by Borrower to Administrative Agent or (ii) any
material development in any action, suit, proceeding, governmental
investigation or arbitration at any time pending against or affecting any Loan
Party or any of its respective Subsidiaries which, in each case, could 

 

44

 

reasonably be expected to have a Material Adverse
Effect, Borrower will promptly give notice thereof to Administrative Agent and
provide such other information as may be requested by Administrative Agent and
reasonably available to any Loan Party to enable Administrative Agent and its
counsel to evaluate such matter.

 

(K)                               Regulatory and Other Notices. 
Promptly after filing, receipt or becoming aware thereof, Borrower will
deliver or cause to be delivered copies of any filings or communications sent
to, or notices and other communications received by, any Loan Party or any of
its respective Subsidiaries from any Governmental Authority, including the FCC,
any applicable PUC and the SEC, relating to any noncompliance by any Loan Party
or any of its respective Subsidiaries with any law or with respect to any
matter or proceeding the effect of which could reasonably be expected to have a
Material Adverse Effect.

 

(L)                                 Material Adverse Effect. 
Promptly after becoming aware thereof, Borrower will give written notice
to Administrative Agent and Lenders of any change in events or changes in facts
or circumstances affecting any Loan Party or any of their respective
Subsidiaries which individually or in the aggregate have had or could
reasonably be expected to have a Material Adverse Effect.

 

(M)                            Environmental Notices. 
Promptly after becoming aware of any material violation by any Loan
Party or any of its respective Subsidiaries of Environmental Laws or promptly
upon receipt of any notice that a Governmental Authority has asserted that any
Loan Party or any of its respective Subsidiaries is not in compliance with
Environmental Laws or that its compliance is being investigated, and, in either
case, the same could reasonably be expected to have a Material Adverse Effect,
Borrower will give notice to Administrative Agent and Lenders thereof and
provide such other information as may be reasonably available to any Loan Party
or any of its respective Subsidiaries to enable Administrative Agent and
Lenders to reasonably evaluate such matter.

 

(N)                               ERISA Events. 
Immediately after becoming aware of any ERISA Event, accompanied by any materials
required to be filed with the PBGC with respect thereto; immediately after any
Loan Party’s or any of its respective Subsidiaries’ receipt of any notice
concerning the institution of proceedings by the PBGC pursuant to Section 4042
of ERISA to involuntarily terminate any Pension Plan or to appoint a trustee to
administer any Pension Plan; immediately upon the establishment of any Pension
Plan not existing at the Closing Date or the commencement of contributions by
any Loan Party or any of its respective Subsidiaries to any Pension Plan to
which any Loan Party or any of its respective Subsidiaries was not contributing
at the Closing Date; and immediately upon becoming aware of any other event or
condition regarding a Plan or any Loan Party’s or any of its respective
Subsidiaries’ or an ERISA Affiliate’s compliance with ERISA which could
reasonably be expected to have a Material Adverse Effect, Borrower will give
notice to Administrative Agent and Lenders thereof and provide such other
information as may be reasonably available to any Loan Party or any such
Subsidiary to enable Administrative Agent and Lenders to reasonably evaluate
such matter.

 

(O)                               Other Information. 
With reasonable promptness, Borrower will deliver such other information
and data with respect to any Loan Party or any of its respective 

 

45

 

Subsidiaries as from time to time may be reasonably
requested by Administrative Agent or any Lender.

 

4.6                                 Accounting Terms; Utilization of GAAP for
Purposes of Calculations Under Agreement.  For purposes
of this Agreement, all accounting terms not otherwise defined herein shall have
the meanings assigned to such terms in conformity with GAAP.  Except as otherwise expressly provided,
financial statements and other information furnished to Administrative Agent
pursuant to this Agreement shall be prepared in accordance with GAAP as in
effect at the time of such preparation. 
In the event of an Accounting Change (as defined below) that results in
a change in any calculations required by Section 4 of this Agreement that
would not have resulted had such Accounting Change not occurred, the parties
hereto agree to enter into negotiations in good faith in order to amend such
provisions so as to equitably reflect such Accounting Change such that the
criteria for evaluating compliance with such covenants shall be the same after
such Accounting Change as if such Accounting Change had not been made;
provided, however, that no change in GAAP that would affect a calculation that
measures compliance with Section 4 of this Agreement shall be given effect
until such provisions are amended to reflect such change in GAAP.  “Accounting
Change” means any change in accounting principles that is required
or permitted hereafter by the rules, regulations, pronouncements and opinions
of the Financial Accounting Standards Board or the American Institute of
Certified Public Accountants (or successors thereto) and such change is adopted
by Borrower and the other Loan Parties with the agreement of their accountants.

 

SECTION 5

REPRESENTATIONS AND WARRANTIES

 

In
order to induce Administrative Agent and Requisite Lenders under the Existing
Credit Agreement and the Term Loan B Lenders to enter into this Agreement and
to make Loans, each of the Loan Parties hereby represents and warrants to
Administrative Agent and each Lender on the Amendment Date and on the date of
each request for a Loan or the issuance of a Letter of Credit that the
following statements are true, correct and complete:

 

5.1                                 Disclosure.  The written
information furnished by or on behalf of the Loan Parties or any of their
respective Subsidiaries contained in this Agreement, the financial statements
referred to in Subsection 5.8 and any other document, certificate, opinion or
written statement furnished to Administrative Agent or any Lender pursuant to
this Agreement or any other Loan Document (other than projections), taken as a
whole, does not contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements contained
herein or therein not misleading in light of the circumstances in which the
same was made.  Any projections provided
by or on behalf of the Loan Parties or any of their respective Subsidiaries
have been prepared by management in good faith and based upon assumptions
believed by management to be reasonable at the time the projections were
prepared.

 

5.2                                 No Material Adverse Effect. 
Since December 31, 2008, there has been no event or change in facts
or circumstances affecting the Loan Parties or any of their respective
Subsidiaries which individually or in the aggregate have had or could
reasonably be expected to 

 

46

 

have a Material Adverse Effect and that have not been
disclosed herein, in Borrower’s prior SEC filings made prior to the date
hereof, or in the attached Schedules.

 

5.3                                 Organization, Powers, Authorization and
Good Standing.

 

(A)                              Organization and Powers. 
Each of the Loan Parties and their respective Subsidiaries is a limited
liability company, corporation or partnership duly organized, validly existing
and in good standing under the laws of its jurisdiction of organization or
incorporation (which jurisdiction is set forth on Schedule 5.3(A)).  Except as disclosed on Schedule 5.3(A),
each of the Loan Parties and their respective Subsidiaries has all requisite
legal power and authority to own and operate its properties, to carry on its
business as now conducted and proposed to be conducted, to enter into each Loan
Document to which it is a party and to carry out its respective obligations
with respect thereto.

 

(B)                                Authorization; Binding Obligation. 
Each of the Loan Parties and their respective Subsidiaries has taken all
necessary limited liability company, partnership, corporate and other action to
authorize the execution, delivery and performance of this Agreement and each of
the other Loan Documents to which it is a party. This Agreement is, and the
other Loan Documents when executed and delivered will be, the legally valid and
binding obligations of the applicable parties thereto (other than
Administrative Agent and Lenders), each enforceable against each of such
parties, as applicable, in accordance with their respective terms, except as
such enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar state or federal debt or relief laws from time to time in
effect which affect the enforcement of creditors’ rights in general and general
principles of equity.

 

(C)                                Qualification. 
Each of the Loan Parties and their respective Subsidiaries is duly
qualified and authorized to do business and in good standing in each
jurisdiction where the nature of its business and operations requires such qualification
and authorization, except where the failure to be so qualified, authorized and
in good standing could not reasonably be expected to have a Material Adverse
Effect.  All jurisdictions in which each
Loan Party is qualified and authorized to do business are set forth on Schedule
5.3(C).

 

5.4                                 Compliance of Loan Documents and
Borrowings.  Except as set forth on Schedule 5.4,
the execution, delivery and performance by the Loan Parties and their
respective Subsidiaries of the Loan Documents to which each such Person is a
party, the borrowings hereunder and the transactions contemplated hereby and
thereby do not and will not, by the passage of time, the giving of notice or
otherwise, (A) require any Governmental Approval or violate any Applicable
Law relating to the Loan Parties or any of their respective Subsidiaries, (B) conflict
with, result in a breach of or constitute a default under the articles of
incorporation, bylaws or other organizational documents of the Loan Parties or
any of their respective Subsidiaries or any Material Contract to which such
Person is a party or by which any of its properties may be bound or any
Governmental Approval relating to such Person or (C) except as required or
permitted under the Loan Documents, result in or require the creation or
imposition of any Lien upon or with respect to any property now owned or
hereafter acquired by such Person.

 

47

 

5.5                                 Compliance with Applicable Law;
Governmental Approvals.  Each of the Loan Parties and
their respective Subsidiaries (A) has, or has the right to use, all
material Governmental Approvals, including the Licenses, required by any
Applicable Law for it to conduct its business, and (B) is in material
compliance with each Governmental Approval, including the Licenses, applicable
to it and in compliance with all other Applicable Laws relating to it or any of
its respective properties the violation of which could reasonably be expected
to have a Material Adverse Effect.

 

5.6                                 Tax Returns and Payments. 
Each of the Loan Parties and their respective Subsidiaries have duly
filed or caused to be filed all federal and all material state, local and other
tax returns required by Applicable Law to be filed, and has paid, or made
adequate provision for the payment of, all federal and all material state,
local and other taxes, assessments and governmental charges or levies upon it
and its property, income, profits and assets which are due and payable, except
where the payment of such tax is being diligently contested in good faith and
adequate reserves therefor have been established in compliance with GAAP.  The charges, accruals and reserves on the
books of the Loan Parties and their respective Subsidiaries in respect of
federal, state, local and other taxes for all fiscal years and portions thereof
are, in the judgment of the Loan Parties, adequate, and neither the Loan
Parties nor any of their respective Subsidiaries anticipate any additional
material taxes or assessments for any of such years.

 

5.7                                 Environmental Matters. 
Each of the Loan Parties and their respective Subsidiaries is in
compliance in all material respects with all applicable Environmental Laws, and
there is no contamination or material violation of applicable Environmental
Laws at, under or about such properties or such operations of the Loan Parties
and their respective Subsidiaries which would interfere in any material respect
with the continued operation of such properties or impair in any material
respect the fair saleable value thereof or with such operations, except for any
such violations or contamination as could not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.

 

5.8                                 Financial Statements.

 

(A)                              All financial statements concerning the
Loan Parties and their respective Subsidiaries which have been furnished to
Administrative Agent and Lenders pursuant to this Agreement have been prepared
in accordance with GAAP consistently applied (except as disclosed therein and,
in the case of unaudited financial statements, except for the absence of notes
and for year-end adjustments) and present fairly in all material respects the
financial condition of the Persons covered thereby as of the date thereof and
the results of their operations for the periods covered thereby and do and will
disclose all material liabilities and Contingent Obligations of any of the Loan
Parties or their respective Subsidiaries as at the dates thereof.

 

(B)                                All Budgets concerning the Loan Parties
and their respective Subsidiaries which have been furnished to Administrative
Agent or Lenders were prepared in good faith by or on behalf of such Loan Party
and such Subsidiaries.

 

5.9                                 Intellectual Property. 
Each of the Loan Parties and their respective Subsidiaries owns, or
possesses the right to use all patents, copyrights, trademarks, trade names,
service marks, technology know-how and processes necessary for the conduct of
its business as currently 

 

48

 

or anticipated to be conducted (collectively, the “Intellectual Property Rights”) without
infringing upon any validly asserted rights of others, except for any
Intellectual Property Rights the absence of which could not reasonably be
expected to have a Material Adverse Effect. 
No event has occurred which permits, or after notice or lapse of time or
both would permit, the revocation or termination of any such rights except to
the extent the same would not, individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect.  Neither the Loan Parties nor any of their
respective Subsidiaries has been threatened in writing with any litigation
regarding Intellectual Property Rights that would present a material impediment
to the business of any such Person.

 

5.10                           Litigation, Investigations, Audits, Etc. 
Except as set forth on Schedule 5.10, there is no action, suit,
proceeding or investigation pending against, or, to the knowledge of the Loan
Parties, threatened against the Loan Parties or any of their respective
Subsidiaries or any of their respective properties, including the Licenses, in
any court or before any arbitrator of any kind or before or by any Governmental
Authority (including the FCC or any PUC), except such as (A) affect the
telecommunications industry generally, (B) do not call into question the
validity or enforceability of this Agreement or any other Loan Document or any
lien or security interest created hereunder, or (C) individually or
collectively would not reasonably be expected to have a Material Adverse
Effect.  Except as set forth on Schedule
5.10, to the Loan Parties’ knowledge, none of the Loan Parties or any of
their respective Subsidiaries are the subject of any review or audit by the
Internal Revenue Service or any investigation by any Governmental Authority concerning
the violation or possible violation of any law (other than routine IRS audits).

 

5.11                           Employee Labor Matters. 
Except as set forth on Schedule 5.11, (A) none of the Loan
Parties, their respective Subsidiaries or their respective employees are subject
to any collective bargaining agreement, (B) no petition for certification
or union election is pending with respect to the employees of any such Person
and no union or collective bargaining unit has sought such certification or
recognition with respect to the employees of any such Person and (C) there
are no strikes, slowdowns, unfair labor practice complaints, work stoppages or
controversies pending or, to the best knowledge of the Loan Parties after due
inquiry, threatened between any such Person and its respective employees, other
than employee grievances arising in the ordinary course of business that would
not (in the case of each of clauses (A), (B) or (C) above) reasonably
be expected to have, either individually or in the aggregate, a Material Adverse
Effect.

 

5.12                           ERISA Compliance.

 

(A)                              Each Plan is in compliance in all
material respects with the applicable provisions of ERISA, the IRC and other
federal or state law except for any noncompliance that would not reasonably be
expected to have, either individually or in the aggregate, a Material Adverse
Effect.  Each Plan, other than a
Multi-employer Plan, which is intended to qualify under Section 401(a) of
the IRC has received a favorable determination letter from the Internal Revenue
Service or is adopted by means of a master or prototype plan that has received
a favorable opinion letter upon which the Loan Parties are entitled to rely and
to the best knowledge of the Loan Parties, nothing has occurred that would
cause the loss of such qualification. 
The Loan Parties and each ERISA Affiliate have made all required
contributions to any Plan subject to Section 412 of the IRC, and no
application for a funding waiver or an 

 

49

 

extension of any amortization period pursuant to Section 412
of the IRC has been made with respect to any Plan.

 

(B)                                There are no pending or, to the best
knowledge of the Loan Parties, threatened claims, actions or lawsuits, or
action by any Governmental Authority, with respect to any Plan which has
resulted or could reasonably be expected to have a Material Adverse
Effect.  There has been no prohibited
transaction or violation of the fiduciary responsibility rules with
respect to any Plan which has resulted or could reasonably be expected to have
a Material Adverse Effect.

 

(C)                                (i) No ERISA Event has occurred or
is reasonably expected to occur; (ii) no Pension Plan has any unfunded
liability; (iii) neither the Loan Parties nor any ERISA Affiliate has
incurred, or reasonably expects to incur, any liability under Title IV of ERISA
with respect to any Pension Plan (other than premiums due and not delinquent
under Section 4007 of ERISA); (iv) neither the Loan Parties nor any
ERISA Affiliate has incurred, or reasonably expects to incur, any liability
(and no event has occurred which, with the giving of notice under Section 4219
of ERISA, would result in such liability) under Section 4201 or 4243 of
ERISA with respect to a Multi-employer Plan; and (v) neither the Loan
Parties nor any ERISA Affiliate has engaged in a transaction that could subject
any Person to Section 4069 or 4212(c) of ERISA.

 

5.13                           Communications Regulatory Matters.

 

(A)                              Schedule 5.13(A) sets forth a true and complete list
of the following information for each License issued to or utilized by the Loan
Parties or their respective Subsidiaries: 
the name of the licensee, the type of service, the expiration date and
the geographic area covered by such License. 
Other than as set forth in Schedule 5.13(A), each License is held
by a Loan Party or a wholly-owned, domestic Subsidiary of a Loan Party whose
equity interests are subject to a valid and perfected first priority Lien in
favor of the Secured Parties pursuant to the Pledge and Security Agreement.

 

(B)                                Other than as set forth on Schedule
5.13(B), the Licenses are valid and in full force and effect without
conditions except for such conditions as are generally applicable to holders of
such Licenses.  Other than as set forth
on Schedule 5.13(B), each Loan Party or Subsidiary of a Loan Party has
all requisite power and authority required under the Communications Act and PUC
Laws to hold the Licenses and to own and operate the Communications
Systems.  Other than as set forth on Schedule
5.13(B), the Licenses constitute in all material respects all of the
Licenses necessary for the operation of the Communications Systems in the same
manner as it is presently conducted. 
Other than as set forth on Schedule 5.13(B), no event has
occurred and is continuing which could reasonably be expected to (i) result
in the imposition of a material forfeiture or the suspension, revocation,
termination or adverse modification of any such License or (ii) materially
and adversely affect any rights of the Loan Parties or their respective
Subsidiaries thereunder.  Except as
otherwise set forth on Schedule 5.13(B), neither the Loan Parties nor
any of their Subsidiaries have reason to believe or have knowledge that any
License will not be renewed in the ordinary course.  Other than as set forth on Schedule
5.13(B), neither the Loan Parties nor any of their respective Subsidiaries
are a party to any investigation, notice of apparent liability, notice of
violation, order or complaint issued by or before the FCC, PUC or any
applicable Governmental Authority, and there are no proceedings 

 

50

 

pending by or before the FCC, PUC or any applicable
Governmental Authority which could in any manner threaten or adversely affect
the validity of any License.

 

(C)                                All of the material properties, equipment
and systems owned, leased or managed by the Loan Parties or their respective
Subsidiaries are, and (to the best knowledge of the Loan Parties and their
Subsidiaries) all such property, equipment and systems to be acquired or added
in connection with any contemplated system expansion or construction will be,
in good repair, working order and condition (reasonable wear and tear excepted)
and are and will be in compliance with all terms and conditions of the Licenses
and all standards or rules imposed by any Governmental Authority or as
imposed under any agreements with telecommunications companies and customers.

 

(D)                               Each of the Loan Parties and their
respective Subsidiaries has made all material filings which are required to be
filed by it, paid all material franchise, license or other fees and charges
related to the Licenses or which have become due pursuant to any Governmental
Approval in respect of its business and has made appropriate provision as is
required by GAAP for any such fees and charges which have accrued.

 

5.14                           Perfection.  The Pledge
and Security Agreement is effective to create in favor of Administrative Agent
for the benefit of the Secured Parties, a legal, valid and enforceable security
interest in and Lien on the Collateral covered thereby (the “Security Agreement Collateral”) and, when (A) financing
statements and other filings in appropriate form are filed in the appropriate
offices and (B) upon the taking of possession or control by Administrative
Agent of the Security Agreement Collateral with respect to which a security
interest may be perfected only by possession or control (which possession or
control shall be given to Administrative Agent to the extent possession or
control by Administrative Agent is required by each Security Document), the
Lien created by the Pledge and Security Agreement shall constitute a fully
perfected Lien on, and security interest in, all right, title and interest of
the grantors thereunder in the Security Agreement Collateral (other than such
Security Agreement Collateral in which a security interest cannot be perfected
under the UCC as in effect at the relevant time in the relevant jurisdiction or
as to which the steps to effect such perfection are not required to be taken
under the Pledge and Security Agreement), in each case subject to no Liens
other than Liens permitted hereunder.

 

5.15                           Solvency.  Each of the
Loan Parties and their respective Subsidiaries: 
(A) owns and will own assets the present fair saleable value of
which are (i) greater than the total amount of liabilities (including
contingent liabilities) of the Loan Parties and their respective Subsidiaries,
and (ii) greater than the amount that will be required to pay the probable
liabilities of its then existing debts and liabilities as they become absolute
and matured considering all financing alternatives and potential asset sales
reasonably available to such Loan Party or such Subsidiary of a Loan Party; (B) has
capital that is not unreasonably small in relation to its business as presently
conducted or after giving effect to any contemplated transaction; and (C) does
not intend to incur and does not believe that it will incur debts and
liabilities beyond its ability to pay such debts and liabilities as they become
due.

 

51

 

5.16                           Investment Company Act. 
None of the Loan Parties or any of their respective Subsidiaries is an “investment
company” as that term is defined in the Investment Company Act of 1940, as
amended.

 

5.17                           Intentionally omitted.

 

5.18                           Title to Properties. 
The Loan Parties and their respective Subsidiaries have such title or
leasehold interest in and to the real property or interests therein, and
easements, licenses and similar rights in real estate, owned or leased by them
as is necessary to the conduct of their business and valid and legal title or
leasehold interest in and to all of their personal property, including those
reflected on the balance sheets of the Loan Parties delivered as described in
Subsection 5.8, except those which have been disposed of by the Loan
Parties subsequent to such date pursuant to transactions permitted hereunder.

 

5.19                           Subsidiaries.  Schedule
5.19 sets forth a complete and accurate list of all direct or indirect
Subsidiaries of the Loan Parties as of the Amendment Date, including for each
such Subsidiary whether such Subsidiary is wholly owned by the applicable Loan
Party, and if not, the percentage ownership of such Loan Party or its
Subsidiary in such Subsidiary.

 

5.20                           Transactions with Affiliates. 
No Affiliate of any Loan Party is a party to any agreement, contract,
commitment or transaction with such Loan Party or has any material interest in
any material property used by such Loan Party, except as permitted by
Subsections 3.8 and 3.9.

 

5.21                           Patriot Act. 
Each of the Loan Parties and their respective Subsidiaries is in
compliance, in all material respects, with the (A) Trading with the Enemy
Act, as amended, and each of the foreign assets control regulations of the
United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended)
and any other enabling legislation or executive order relating thereto, and (B) Uniting
And Strengthening America By Providing Appropriate Tools Required To Intercept
And Obstruct Terrorism (USA Patriot Act of 2001).  No part of the proceeds of the Loans will be
used, directly or indirectly, for any payments to any governmental official or
employee, political party, official of a political party, candidate for
political office, or anyone else acting in an official capacity, in order to
obtain, retain or direct business or obtain any improper advantage, in
violation of the United States Foreign Corrupt Practices Act of 1977, as
amended.

 

SECTION 6

EVENTS OF DEFAULT AND RIGHTS AND REMEDIES

 

6.1                                 Event of Default.  “Event of Default” shall mean the occurrence
or existence of any one or more of the following:

 

(A)                              Payment.  (i) Failure
to repay any outstanding principal amount of the Loans at the time required
pursuant to this Agreement or to reimburse any Issuing Lender when due for any
payment made by such Issuing Lender under any Letter of Credit Liability, or (ii) failure
to pay any interest on any Loan, any other amount due under this Agreement or
any of the 

 

52

 

other Loan Documents, or any other Secured Obligation,
and in the case of this clause (ii) such failure continues for three (3) Business
Days; or

 

(B)                                Default in Other Agreements.  (i) Failure
of any Loan Party or any of its respective Subsidiaries to pay when due or
within any applicable grace period any principal or interest on Indebtedness
(other than the Loans) or any Contingent Obligation; or (ii) any other
breach or default of any Loan Party or any of its respective Subsidiaries with
respect to any Indebtedness (other than the Loans), the effect of such breach
or default (either individually or in the aggregate with any other breaches or
defaults under this clause (ii)) is to cause or to permit the holder or holders
then to cause any Indebtedness or Contingent Obligation having an aggregate
principal amount for one or more of the Loan Parties in excess of $2,500,000 or
an aggregate principal amount for one or more of the Loan Parties and their
respective Subsidiaries in excess of $7,500,000 to become or be declared due
prior to its stated maturity; or

 

(C)                                Breach of Certain Provisions. 
Failure of any Loan Party or any of its respective Subsidiaries to
perform or comply with any term or condition contained in that portion of
Subsection 2.2 relating to such Loan Party’s or its respective Subsidiaries’
obligation to maintain insurance, Subsection 2.5, Section 3 or Section 4
(excluding Subsection 4.5); or

 

(D)                               Breach of Warranty. 
Any representation, warranty, certification or other statement made by
any Loan Party or any of its respective Subsidiaries in any Loan Document or in
any statement or certificate at any time given by any Loan Party or any of its
respective Subsidiaries in writing pursuant to any Loan Document is false in
any material respect on the date made or deemed made; or

 

(E)                                 Other Defaults Under Loan Documents. 
Any Loan Party or any of its respective Subsidiaries breaches or
defaults in the performance of or compliance with any term contained in this
Agreement or the other Loan Documents not specifically covered in Subsections
6.1(A), (B), (C) or (D) and such default is not remedied or waived
within 45 days after receipt by any Loan Party or such other party of notice
from Administrative Agent or Requisite Lenders of such default (other than
occurrences described in other provisions of this Subsection 6.1 for which a
different grace or cure period is specified or which constitute immediate
Events of Default); or

 

(F)                                 Involuntary Bankruptcy; Appointment of
Receiver; Etc.  (i) A court enters a decree or order for
relief with respect to any Loan Party or any of its respective Subsidiaries in
an involuntary case under the Bankruptcy Code, which decree or order is not
stayed or other similar relief is not granted under any applicable federal or
state law within 60 days; or (ii) the continuance of any of the following
events for 60 days unless dismissed, bonded or discharged:  (1) an involuntary case is commenced
against any Loan Party or any of its respective Subsidiaries under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect; or (2) a decree or order of a court for the appointment of a
receiver, liquidator, sequestrator, trustee, custodian or other officer having
similar powers over any Loan Party or any of its respective Subsidiaries or
over all or a substantial part of its property, is entered; or (3) an
interim receiver, trustee or other custodian is appointed without the consent
of any Loan Party or any of its respective Subsidiaries, for all or a
substantial part of the property of any Loan Party or any of its respective
Subsidiaries; or

 

53

 

(G)           Voluntary Bankruptcy; Appointment
of Receiver; Etc.  Any Loan Party or
any of its respective Subsidiaries (i) commences a voluntary case under
the Bankruptcy Code, files a petition seeking to take advantage of any other
law relating to bankruptcy, insolvency, reorganization, winding up or
composition for adjustment of debts of any Loan Party or any of its respective
Subsidiaries, or consents to, or fails to contest in a timely and appropriate
manner, the entry of an order for relief in an involuntary case, the conversion
of an involuntary case to a voluntary case under any such law, or the
appointment of or taking possession by a receiver, trustee or other custodian
of all or a substantial part of the property; or (ii) makes any assignment
for the benefit of creditors; or (iii) the Board of Directors of any Loan
Party or any of its respective Subsidiaries adopts any resolution or otherwise
authorizes action to approve any of the actions referred to in this Subsection
6.1(G); or

 

(H)          Governmental Liens.  Any Lien, levy or assessment (other than
Permitted Encumbrances) is filed or recorded with respect to or otherwise
imposed upon all or any part of the Collateral or the other assets of any Loan
Party or any of its respective Subsidiaries by the United States or any other
country or any department or instrumentality thereof or by any state, county,
municipality or other Governmental Authority and remains undischarged,
unvacated, unbonded or unstayed for a period of 30 days or in any event later
than five (5) Business Days prior to the date of any proposed sale
thereunder; or

 

(I)            Judgment and Attachments.  Any money judgment, writ or warrant of
attachment or similar process (other than those described in Subsection 6.1(H))
involving an amount in any individual case or in the aggregate for or against
one or more of the Loan Parties in excess of $2,500,000 or for or against one
or more of the Loan Parties and their respective Subsidiaries in excess of
$7,500,000 (in either case not adequately covered by insurance as to which the
insurance company has not denied coverage) is entered or filed against any Loan
Party or any of its respective Subsidiaries and/or any of its respective assets
and remains undischarged, unvacated, unbonded or unstayed for a period of 60 days
or in any event later than five (5) Business Days prior to the date of any
proposed sale thereunder; or

 

(J)            Dissolution.  Any order, judgment or decree is entered
against any Loan Party or any of its respective Subsidiaries decreeing the
dissolution or split up of any Loan Party or any of its respective Subsidiaries
and such order remains undischarged or unstayed for a period in excess of 30
days; or

 

(K)          Solvency.  Any Loan Party or any of its respective
Subsidiaries ceases to be solvent or any Loan Party or any of its respective
Subsidiaries admits in writing its present or prospective inability to pay its
debts as they become due; or

 

(L)           Injunction.  Any Loan Party or any of its respective
Subsidiaries are enjoined, restrained or in any way prevented by the order of
any court or any Governmental Authority from conducting all or any substantial
part of the business of the Loan Parties and their Subsidiaries, taken as a
whole, and such order continues for more than 15 days; or

 

(M)         ERISA; Pension Plans.  (i) Any Loan Party or any of its
respective Subsidiaries fails to make full payment when due of all amounts
which, under the provisions of any Plans or any applicable provisions of the
IRC, any such Person is required to pay as 

 

54

 

contributions thereto and such failure results in or
could reasonably be expected to have a Material Adverse Effect; or (ii) an
accumulated funding deficiency occurs or exists, whether or not waived, with
respect to any such Plans; or (iii) any Plan of any Loan Party or any of
its respective Subsidiaries loses its status as a qualified plan under the IRC
and such loss results in or could reasonably be expected to have a Material
Adverse Effect; or

 

(N)          Environmental Matters.  Any Loan Party or any of its respective
Subsidiaries fails to: (i) obtain or maintain any operating licenses or
permits required by environmental authorities; (ii) begin, continue or
complete any remediation activities as required by any environmental authorities;
(iii) store or dispose of any hazardous materials in accordance with
applicable Environmental Laws; or (iv) comply with any other Environmental
Laws, if in any such case such failure could reasonably be expected to have a
Material Adverse Effect; or

 

(O)          Invalidity of Loan Documents.  Any of the Loan Documents for any reason,
other than a partial or full release in accordance with the terms thereof,
ceases to be in full force and effect or is declared to be null and void, or
any Loan Party or any of its respective Subsidiaries denies that it has any
further liability under any Loan Documents to which it is party, or gives
notice to such effect; or

 

(P)           Failure of Security.  Administrative Agent, for the benefit of
itself, and Lenders, does not have or ceases to have a valid and perfected
first priority security interest (subject to Permitted Encumbrances) in the
Collateral or any substantial portion thereof, or any Loan Party denies the
validity, perfection or first priority of such security interest or gives
notice to such effect; or

 

(Q)          Intentionally omitted.

 

(R)           Intentionally omitted.

 

(S)           Change in Control.  A Change of Control occurs; or

 

(T)           Expropriation.  Any federal, state or local Governmental
Authority takes any action to expropriate or condemn all or any substantial
portion of the assets of (i) Borrower, (ii) GTT, or (iii) BDC,
any Loan Party, or any other Subsidiaries of Borrower, if the assets of BDC,
any such Loan Party or any such Subsidiary, individually or in the aggregate,
account for 25% or more of Borrower’s consolidated EBITDA; or

 

(U)          FCC and PUC Matters.  Any License necessary for the ownership or
operation of the Communications Systems shall be cancelled, expired, revoked,
terminated, rescinded, annulled, suspended, or modified or shall no longer be
in full force and effect and the result of such action has, or would reasonably
be expected to have, a Material Adverse Effect.

 

6.2           Termination of Loan Commitments.  Upon the occurrence and during the
continuation of any Event of Default, and without limiting any other right or
remedy hereunder, Administrative Agent, upon the request of the Requisite
Lenders (subject to the first sentence of Section 6.3 below), shall
declare that all or any portion of the Commitments be terminated, whereupon the
obligations of each Lender to make any Loan and to issue any Letter of Credit
shall immediately terminate.

 

55

 

6.3           Acceleration.  Upon the occurrence of any Event of Default
described in the foregoing Subsections 6.1(F) or 6.1(G), the unpaid
principal amount of and accrued interest and fees on the Loans, all Letter of
Credit Liability and all other Obligations shall automatically become
immediately due and payable, without presentment, demand, protest, notice of
intent to accelerate, notice of acceleration or other requirements of any kind,
all of which are hereby expressly waived by Borrower, and the obligations of
Lenders to make Loans and issue Letters of Credit shall thereupon terminate.  Upon the occurrence and during the
continuance of any other Event of Default, Administrative Agent may, with the
consent of Requisite Lenders, and, upon written demand by Requisite Lenders,
shall, by written notice to Borrower, declare all or any portion of the Loans,
all or some portion of the Letter of Credit Liability and all or some of the
other Obligations to be, and the same shall forthwith become, immediately due
and payable together with accrued interest thereon, and upon such acceleration
the obligations of Administrative Agent and Lenders to make Loans and issue
Letters of Credit shall thereupon terminate.

 

6.4           Rights of Collection.  Upon the occurrence and during the
continuation of any Event of Default and at any time thereafter, unless and
until such Event of Default is cured, or waived or removed by Requisite
Lenders, Administrative Agent may exercise on behalf of the Secured Parties all
of their other rights and remedies under this Agreement, the other Loan
Documents and Applicable Law, in order to satisfy all of the Secured
Obligations.

 

6.5           Consents.  Borrower acknowledges that certain
transactions contemplated by this Agreement and the other Loan Documents and
certain actions which may be taken by Administrative Agent or Lenders in the
exercise of their respective rights under this Agreement and the other Loan
Documents may require the consent of a Governmental Authority.  If Administrative Agent reasonably determines
that the consent of a Governmental Authority is required in connection with the
execution, delivery and performance of any of the aforesaid Loan Documents or
any Loan Documents delivered to Administrative Agent or Lenders in connection
therewith or as a result of any action which may be taken pursuant thereto,
then Borrower, at Borrower’s cost and expense, agrees to use reasonable best
efforts, and to cause its Subsidiaries to use their best efforts, to secure
such consent and to cooperate with Administrative Agent and Lenders in any
action commenced by Administrative Agent or any Lender to secure such consent.

 

6.6           Intentionally omitted.

 

6.7           Set Off and Sharing of Payments.  In addition to any rights now or hereafter
granted under Applicable Law and not by way of limitation of any such rights,
during the continuance of any Event of Default, each Lender is hereby
authorized by each Loan Party at any time or from time to time, with reasonably
prompt subsequent notice to such Loan Party (any prior or contemporaneous
notice being hereby expressly waived) to set off and to appropriate and to
apply any and all (A) balances held by such Lender at any of its offices
for the account of such Loan Party or any of its Subsidiaries (regardless of
whether such balances are then due to such Loan Party), and (B) except as
provided in Subsection 8.2(J), other property at any time held or owing by such
Lender to or for the credit or for the account of such Loan Party or any of its
Subsidiaries, against and on account of any of the Obligations; provided,
that no Lender shall exercise any such right without the prior written consent
of Administrative Agent.  Any Lender 

 

56

 

exercising a right to set off shall, to the extent the
amount of any such set off exceeds its Pro Rata Share of the amount set off,
purchase for cash (and the other Lenders shall sell) interests in each such
other Lender’s Pro Rata Share of the Obligations as would be necessary to cause
such Lender to share such excess with each other Lender in accordance with
their respective Pro Rata Shares.  Each
Loan Party agrees, to the fullest extent permitted by law, that any Lender may
exercise its right to set off with respect to amounts in excess of its Pro Rata
Share of the Obligations and upon doing so shall deliver such excess to
Administrative Agent for the benefit of all Lenders in accordance with their
Pro Rata Shares; provided, that CoBank may exercise its rights against
any equity of CoBank held by Borrower without complying with this Subsection
6.7.

 

6.8           Application of Payments.  Subsequent to the acceleration of the Loans
pursuant to Subsection 6.3, all payments received by the Secured Parties on the
Secured Obligations and on the proceeds from the enforcement of the Secured
Obligations shall be applied among Administrative Agent and the other Secured
Parties as follows:  first, pro rata to
all Administrative Agent’s, and the other Secured Parties’ fees and expenses
then due and payable; then pro rata to all other expenses then due and payable
by the Loan Parties under the Loan Documents; then pro rata to all indemnitee
obligations then due and payable by the Loan Parties under the Loan Documents;
then to all commitment and other fees and commissions then due and payable by
the Loan Parties under the Loan Documents; then pro rata to (A) accrued
and unpaid interest on the Loans (pro rata) in accordance with all such amounts
due on the Loans and (B) any scheduled payments (excluding termination,
unwind and similar payments) due to a Secured Party on any Related Secured
Hedge Agreement (pro rata with all such amounts due); then pro rata to (i) the
principal amount of the Loans (pro rata among all Loans) and (ii) any
termination, unwind and similar payments due to a Secured Party under a Related
Secured Hedge Agreement (pro rata with all such amounts due); and then pro rata
to any scheduled payments (excluding termination, unwind and similar payments)
due to a Secured Party on any Secured Hedge Agreement other than a Related
Secured Hedge Agreement (pro rata with all such amounts due); and then pro rata
to any termination, unwind and similar payments due to a Secured Party under a
Secured Hedge Agreement other than a Related Secured Hedge Agreement (pro rata
with all such amounts due); and then to any remaining amounts due under the
Secured Obligations, in that order.  Any
remaining monies not applied as provided in this Subsection 6.8 shall be paid
to Borrower or any Person lawfully entitled thereto.

 

6.9           Adjustments.  If any Lender (a “Benefited Lender”) shall at any time receive any payment of all
or part of its Loans, or interest thereon in a greater proportion than any such
payment received by any other Lender (other than pursuant to Subsection
1.12(B)), if any, in respect of such other Lender’s Loans, or interest thereon,
such Benefited Lender shall, to the extent permitted by Applicable Law,
purchase for cash from the other Lenders such portion of each such other Lender’s
Loans as shall be necessary to cause such Benefited Lender to share the excess
payment or benefits ratably with each Lender; provided, that if all or
any portion of such excess payment or benefits is thereafter recovered from
such Benefited Lender, such purchase shall be rescinded, and the purchase price
and benefits returned to the extent of such recovery, but without interest.  Each Loan Party agrees that each Lender so
purchasing a portion of another Lender’s Loans may exercise all rights of
payment (including rights of set-off) with respect to such portion as fully as
if such Lender were the direct holder of such portion.  This 

 

57

 

Subsection 6.9 shall not apply to any action
taken by CoBank with respect to equity in it held by Borrower.

 

SECTION 7

CONDITIONS TO LOANS

 

The
effectiveness of this Agreement (in the case of Subsection 7.1) and the
obligations of Lenders to make Loans (in the case of Subsections 7.2 and 7.3)
are subject to satisfaction of all of the applicable conditions set forth
below.

 

7.1           Conditions to Effectiveness.  The effectiveness hereof is subject to the satisfaction
of each of the following conditions:

 

(A)          Executed Loan Documents.  (i) This Agreement, (ii) the Term
Loan B Notes, (iii) the Pledge and Security Agreement, (iv) the
Post-Closing Letter, and (v) all other documents, financing statements and
instruments required by such agreements to be executed and delivered on or
prior to such date (including, to the extent required by the Loan Documents,
landlord waivers and consents and reaffirmations), shall have been duly
authorized and executed by the Loan Parties or other Persons party thereto, as
applicable, in form and substance satisfactory to Administrative Agent, and the
Loan Parties or such other Persons, as applicable, shall have delivered
sufficient original counterparts thereof to Administrative Agent for delivery
to Lenders.

 

(B)           Control Agreements.  Administrative Agent shall have received
executed account control agreements with respect to the Loan Parties’ deposit
and securities accounts as shall have been specified by Administrative Agent,
in form and substance satisfactory to Administrative Agent, from the
appropriate depository institutions or other entities holding such deposit
accounts.

 

(C)           Closing Certificates; Opinions.

 

(i)            Officer’s
Certificate.  Administrative Agent
shall have received a certificate from the chief executive officer, chief
operating officer or chief financial officer of Borrower on behalf of Borrower
and in form and substance reasonably satisfactory to Administrative Agent, to
the effect that, to their knowledge, all representations and warranties of the
Loan Parties and their respective Subsidiaries contained in this Agreement and
the other Loan Documents are true, correct and complete in all material
respects; that no Loan Party nor any Subsidiary of any Loan Party is in
violation of any of the covenants contained in this Agreement or in the other
Loan Documents; that, after giving effect to this Agreement, no Default or
Event of Default has occurred and is continuing; that the Loan Parties and
their respective Subsidiaries have satisfied each of the closing conditions to
be satisfied by them hereby; and calculating the Total Leverage Ratio as of the
Amendment Date.

 

(ii)           Certificates
of Secretaries of the Loan Parties. 
Administrative Agent shall have received a certificate of the secretary
or assistant secretary of each Loan Party, dated as of the Amendment Date, on
behalf of such Loan Party and in form and 

 

58

 

substance reasonably satisfactory to Administrative Agent, certifying
that attached thereto is a true and complete copy of the articles of
incorporation or organization, as the case may be, of such Person and all
amendments thereto, certified as of a recent date by the appropriate
Governmental Authority in its jurisdiction of incorporation or organization
(unless such certification is waived by Administrative Agent in its sole
discretion); that attached thereto is a true and complete copy of the bylaws,
partnership agreement or operating agreement, as the case may be, of such
Person as in effect on the date of such certification; that attached thereto is
a true and complete copy of resolutions or consents duly adopted by the board
of directors, members or managers of such Person, as applicable, authorizing
the borrowings, pledges or guarantees contemplated hereunder, the execution,
delivery and performance of this Agreement, the Pledge and Security Agreement
and the other Loan Documents, and the granting of the Security Interest; and as
to the incumbency and genuineness of the signature of each officer of such
Person executing Loan Documents.

 

(iii)          Certificates
of Good Standing.  Administrative
Agent shall have received certificates as of a recent date (or such other date
as Administrative Agent may agree to in its sole discretion) of the good
standing of each Loan Party under the laws of its respective jurisdiction of
incorporation or organization, and such other jurisdictions as are requested by
Administrative Agent.

 

(iv)          Opinions
of Counsel.  Administrative Agent shall
have received favorable opinions of counsel to the Loan Parties addressed to
Administrative Agent and Lenders, dated as of the Amendment Date, with respect
to the Loan Parties, covering such matters as may be reasonably requested by
Administrative Agent, including, the Loan Documents, the Security Interest, due
authorization and other corporate matters and regulatory matters (including the
Licenses) and which are reasonably satisfactory in form and substance to
Administrative Agent.

 

(D)          Collateral.

 

(i)            Collateral
Pledge.  The Loan Parties shall have
effectively and validly pledged and perfected the Collateral contemplated by
the Security Documents.

 

(ii)           Filings
and Recordings.  All filings and
recordings (including, all mortgages, fixture filings and transmitting utility
filings) that are necessary to perfect the Security Interest in the Collateral
described in the Security Documents shall have been filed or recorded in all
appropriate locations and Administrative Agent shall have received evidence satisfactory
to Administrative Agent that such Security Interest constitutes a valid and
perfected first priority Lien therein.

 

(iii)          Lien
Searches Against Loan Parties.  The
Loan Parties shall have delivered to Administrative Agent the results of a Lien
search of all filings made against each of the Loan Parties and their
Subsidiaries under the Uniform Commercial Code (and local tax, fixture and
judgment filing offices) as in effect in any jurisdiction in which (1) it
is organized and in the District of Columbia, if applicable pursuant to Section 9-307(c) of
the Uniform Commercial Code or (2) it has assets unless (a) the
aggregate value of 

 

59

 

such assets in such jurisdiction is not in excess of $500,000 (or such
higher threshold as Administrative Agent may agree to in its sole discretion),
and (b) the loss of the assets in such jurisdiction could not reasonably
be expected to have a Material Adverse Effect, indicating, among other things,
that the Loan Parties’ assets and the ownership interests of the Loan Parties
are free and clear of any Lien, except for Permitted Encumbrances.

 

(iv)          Lien
Searches Against Acquired Companies. 
To the extent such Acquired Company or Subsidiary of an Acquired Company
has been in existence for more than seven (7) calendar days prior to the
Amendment Date, the Loan Parties shall have delivered to Administrative Agent
the results of a Lien search of all filings made against each of the Acquired
Companies and their Subsidiaries (other than the Partnerships) under the
Uniform Commercial Code (and local tax, fixture and judgment filing offices) as
in effect in any jurisdiction in which (1) it is organized, (2) it
has its principal place of business or chief executive office, (3) it has
five or more towers, (4) it has a switch, or (5) it has other assets
the loss of which could reasonably be expected to have a material adverse
effect on the Acquired Companies, indicating, among other things, that the
Acquired Companies’ assets and the ownership interests of the Acquired
Companies are free and clear of any Lien, except for Permitted Encumbrances.

 

(v)           Lien
Searches Against Partnerships.  The
Loan Parties shall have delivered to Administrative Agent the results of a Lien
search of all filings made against each of the Partnerships under the Uniform
Commercial Code (and local tax, fixture and judgment filing offices) as in
effect in any jurisdiction in which (1) it is organized or (2) it has
its principal place of business or chief executive office.

 

(vi)          Lien
Searches Against Newco Parent and the Contributing Entities.  The Loan Parties shall have delivered to
Administrative Agent the results of a Lien search of all filings made against
each of Newco Parent and the Contributing Entities (as such term is defined in
the Verizon Purchase Agreement; together with Newco Parent, the “Verizon  Debtors”) under
the Uniform Commercial Code (and local tax, fixture and judgment filing
offices) as in effect in any jurisdiction in which (1) it is organized, (2) it
has its principal place of business or chief executive office, (3) it has
five or more towers subject to the Verizon Acquisition, (4) it has a
switch subject to the Verizon Acquisition, or (5) it has other assets
subject to the Verizon Acquisition the loss of which could reasonably be
expected to have a material adverse effect on the Acquired Companies,
indicating, among other things, that the Verizon Debtors’ assets subject to the
Verizon Acquisition and the ownership interests of Newco Parent in the Acquired
Companies are free and clear of any Lien, except for Permitted Encumbrances.

 

(vii)         Insurance.  Administrative Agent shall have received
certificates of insurance in the form required under Subsection 2.2 and the
Security Documents and otherwise in form and substance reasonably satisfactory
to Administrative Agent.

 

(E)           Consents.

 

(i)            Permits
and Licenses.  Administrative Agent
shall have received copies of all material permits and licenses, including the
Licenses required under 

 

60

 

Applicable Laws, for the conduct of the Loan Parties’ and their
respective Subsidiaries’ businesses as conducted on such date.

 

(ii)           No
Injunction, Etc.  No action,
proceeding, investigation, regulation or legislation shall have been
instituted, threatened or proposed before, nor any adverse ruling received
from, any Governmental Authority to enjoin, restrain or prohibit, or to obtain
substantial damages in respect of, or which is related to or arises out of this
Agreement or the other Loan Documents or the consummation of the transactions
contemplated hereby or thereby, and which, as determined by Administrative
Agent in its reasonable discretion, would make it inadvisable to consummate the
transactions contemplated by this Agreement and such other Loan Documents.

 

(F)           Fees, Expenses, Taxes, Etc.  There shall have been paid by Borrower to
Administrative Agent the fees set forth or referenced in Subsection 1.4 and any
other invoiced and unpaid fees or commissions due hereunder (including
reasonable legal fees and expenses), and to any other Person such amount as may
be due thereto in connection with the transactions contemplated hereby,
including all taxes, fees and other charges in connection with the execution,
delivery, recording, filing and registration of any of the Loan Documents to
the extent effected on or prior to such date.

 

(G)           Miscellaneous.

 

(i)            Proceedings
and Documents.  All opinions,
certificates and other instruments and all proceedings in connection with the
transactions contemplated by this Agreement shall be reasonably satisfactory in
form and substance to Administrative Agent. 
Administrative Agent shall have received copies of all other instruments
and other evidence as Administrative Agent may request, in form and substance
reasonably satisfactory to Administrative Agent, with respect to the
transactions contemplated by this Agreement and the taking of all actions in
connection therewith.

 

(ii)           Litigation,
Investigations, Audits, Etc.  There
shall be no action, suit, proceeding or investigation pending against, or, to
the knowledge of any Loan Party, threatened against any Loan Party, any of its
respective Subsidiaries or any of its respective properties, including the
Licenses, in any court or before any arbitrator of any kind or before or by any
Governmental Authority (including the FCC and any applicable PUC), except such
as affect the telecommunications industry generally, that could reasonably be
expected to have a Material Adverse Effect.

 

(iii)          Verizon
Acquisition Documentation.  There
shall have been no amendment, modification, change or consent or agreement to
any amendment, modification or change to the Verizon Acquisition Documentation,
except to the extent such amendment, modification or change (1) is not
adverse to the interests of Administrative Agent or any Lender and the Lenders
have received written notice of the same or (2) such amendment,
modification or change has been consented to in writing by the Requisite
Lenders under this Agreement (and each Lender’s execution and delivery hereof
constitutes such consent for such amendments, modifications or changes
delivered to Administrative Agent prior to the date hereof).

 

61

 

(iv)          No
Material Adverse Effect.  Since December 31,
2008, there shall not have occurred any event or condition affecting the Loan
Parties, which individually or in the aggregate has had or could reasonably be
expected to have a Material Adverse Effect. 
Since December 31, 2008, there shall not have occurred any event or
condition materially adversely affecting the assets, taken as a whole, to be
acquired pursuant to the Verizon Acquisition.

 

7.2           Conditions to Term Loan B.  The obligations of Term Loan B Lenders to
make any advance under the Term Loan B are, in addition to the conditions
precedent specified in Subsections 7.1 (on the Amendment Date) and 7.3, subject
to the satisfaction of each of the following conditions:

 

(A)          Executed Loan Documents.  (i) A Joinder Agreement for the Acquired
Companies required hereunder to be party to the Loan Documents, together with
updated Schedules to this Agreement and annexes to the Pledge and Security
Agreement, and (ii) all other documents, financing statements and
instruments required by such agreements to be executed and delivered on or
prior to the date of such advance (including, to the extent required by the
Loan Documents, landlord waivers and consents), shall have been duly authorized
and executed by the Acquired Companies and the other Loan Parties or other
Persons party thereto, as applicable, in form and substance satisfactory to
Administrative Agent, and the Acquired Companies, the other Loan Parties or
such other Persons, as applicable, shall have delivered sufficient original counterparts
thereof to Administrative Agent for delivery to Lenders.

 

(B)           Closing Certificates; Opinions.

 

(i)            Officer’s
Certificate.  Administrative Agent
shall have received a certificate from the chief executive officer, chief
operating officer or chief financial officer of Borrower on behalf of Borrower
and in form and substance reasonably satisfactory to Administrative Agent, to
the effect that, to their knowledge, all representations and warranties of the
Loan Parties, including the Acquired Companies, contained in this Agreement and
the other Loan Documents are true, correct and complete in all material
respects; that no Loan Party, including the Acquired Companies, nor any
Subsidiary of any Loan Party is in violation of any of the covenants contained
in this Agreement or in any of the other Loan Documents; that, after giving
effect to the funding of the Term Loan B and any Revolver Loan requested by the
Borrower and to the Verizon Acquisition, no Default or Event of Default has
occurred and is continuing; that the Loan Parties, including the Acquired
Companies, and their respective Subsidiaries have satisfied each of the closing
conditions to be satisfied by them hereby; calculating the Total Leverage Ratio
as of the Initial Funding Date (after giving effect to the Verizon Acquisition
and to the funding of the Term Loan B and any Revolver Loan requested by the
Borrower and calculated on a Pro Forma Basis); and certifying that attached
thereto is a true and complete copy of the Verizon Acquisition Documentation as
in effect on the date thereof.

 

(ii)           Certificates
of Secretaries of the Acquired Companies. 
Administrative Agent shall have received a certificate of the secretary
or assistant secretary of each Acquired Company, dated as of the Initial
Funding Date, on behalf of 

 

62

 

such Acquired Company and in form and substance reasonably satisfactory
to Administrative Agent, certifying that attached thereto is a true and
complete copy of the articles of incorporation or organization, as the case may
be, of such Person and all amendments thereto, certified as of a recent date by
the appropriate Governmental Authority in its jurisdiction of incorporation or
organization; that attached thereto is a true and complete copy of the bylaws,
partnership agreement or operating agreement, as the case may be, of such
Person as in effect on the date of such certification; that attached thereto is
a true and complete copy of resolutions or consents duly adopted by the board of
directors, members or managers of such Person, as applicable, authorizing the
pledges or guarantees contemplated hereunder, the execution, delivery and
performance of the Joinder Agreement and the other Loan Documents, and the
granting of the Security Interest; and as to the incumbency and genuineness of
the signature of each officer of such Person executing Loan Documents.

 

(iii)          Certificates
of Good Standing.  Administrative
Agent shall have received certificates as of a recent date of the good standing
of each Acquired Company under the laws of its respective jurisdiction of
incorporation or organization, and such other jurisdictions as are requested by
Administrative Agent.

 

(iv)          Opinions
of Counsel.  Administrative Agent
shall have received favorable opinions of counsel to the Loan Parties
(including the Acquired Companies) addressed to Administrative Agent and
Lenders, dated as of the Initial Funding Date, covering such matters as may be
reasonably requested by Administrative Agent, including, the Loan Documents,
the Security Interest, due authorization and other corporate matters and
regulatory matters (including the Licenses) and which shall be reasonably
satisfactory in form and substance to Administrative Agent.

 

(C)           Collateral.

 

(i)            Collateral
Pledge.  The Loan Parties shall have
effectively and validly pledged and perfected the Collateral contemplated by
the Security Documents and acquired pursuant to the Verizon Acquisition,
including, the pledge of all of the ownership interest of the Acquired Companies
and their Subsidiaries, to the extent required hereunder and under the Security
Documents.

 

(ii)           Filings
and Recordings.  All filings and
recordings (including, all mortgages, fixture filings and transmitting utility
filings) that are necessary to perfect the Security Interest in the Collateral
described in the Security Documents and acquired pursuant to the Verizon
Acquisition shall, to the extent required hereunder or under the Security
Documents, have been filed or recorded in all appropriate locations and
Administrative Agent shall have received evidence satisfactory to
Administrative Agent that such Security Interest constitutes a valid and
perfected first priority Lien therein.

 

(iii)          Lien
Searches Against Acquired Companies and Partnerships.  To the extent such Acquired Company or
Subsidiary of an Acquired Company has been in existence for more than fourteen
(14) calendar days prior to the Initial Funding Date and the Lien searches
required by Subsection 7.1(D) against entity are dated more than 

 

63

 

twenty (20) calendar days prior to the Initial Funding Date, the Loan
Parties shall have delivered to Administrative Agent the results of a “bring
down” Lien search on each of the Acquired Companies and their Subsidiaries and
the Partnerships, indicating, among other things, that the assets of such
entity and the ownership interests of such entity are free and clear of any
Lien, except for Permitted Encumbrances.

 

(iv)          Lien
Searches Against Newco Parent and the Contributing Entities.  To the extent not previously delivered to
Administrative Agent pursuant to Subsection 7.1(D) due to modifications to
the Verizon Acquisition as permitted herein, the Loan Parties shall have
delivered to Administrative Agent the results of a Lien search of all filings
made against each of the Verizon Debtors under the Uniform Commercial Code (and
local tax, fixture and judgment filing offices) as in effect in any
jurisdiction in which (1) it is organized, (2) it has its principal
place of business or chief executive office, (3) it has five or more
towers subject to the Verizon Acquisition, (4) it has a switch subject to
the Verizon Acquisition, or (5) it has other assets subject to the Verizon
Acquisition the loss of which could reasonably be expected to have a material
adverse effect on the Acquired Companies, indicating, among other things, that
the Verizon Debtors’ assets subject to the Verizon Acquisition and the
ownership interests of Newco Parent in the Acquired Companies are free and
clear of any Lien, except for Permitted Encumbrances.

 

(v)           Insurance.  Administrative Agent shall have received
certificates of insurance incorporating the Verizon Acquisition in the form
required under Subsection 2.2 and the Security Documents and otherwise in form
and substance reasonably satisfactory to Administrative Agent.

 

(D)          Consents.

 

(i)            Governmental
Approvals.  The Loan Parties shall
have delivered to Administrative Agent evidence that all required material
permits, and authorizations, if any, of all Governmental Authorities, including
the FCC and all applicable PUCs, necessary to consummate the Verizon
Acquisition shall have been obtained and shall be in full force and effect.

 

(ii)           Permits
and Licenses.  Administrative Agent
shall have received copies of all material permits and licenses, including the
Licenses required under Applicable Laws, for the conduct of the Acquired
Companies’ and their respective Subsidiaries’ businesses.

 

(iii)          No
Injunction, Etc.  No action,
proceeding, investigation, regulation or legislation shall have been
instituted, threatened or proposed before, nor any adverse ruling received
from, any Governmental Authority that seeks to enjoin, restrain or prohibit, or
calls into question the Verizon Acquisition, the Joinder Agreement or the other
Loan Documents or the consummation of the transactions contemplated hereby or
thereby, other than the
civil action brought in the United District Court for the Northern District of
Georgia (Atlanta Division) by Plaintiffs Bulloch Cellular, Inc., Pineland
Cellular, Inc., Planters Rural Cellular, Inc. and Plant Cellular RSA
8, Inc. against 

 

64

 

Defendant
Alltel Communications, LLC, on file as Civil Action No. 1:09-CV-2186-RWS.

 

(E)           Fees, Expenses, Taxes, Etc.  There shall have been paid by Borrower to
Administrative Agent the fees set forth or referenced in Subsection 1.4 and any
other invoiced and unpaid fees or commissions due hereunder (including
reasonable legal fees and expenses), and to any other Person such amount as may
be due thereto in connection with the transactions contemplated hereby,
including all taxes, fees and other charges in connection with the execution,
delivery, recording, filing and registration of any of the Loan Documents on
the Initial Funding Date.

 

(F)           Repayment of Certain Indebtedness.  Administrative Agent shall have received
evidence, in form and substance, reasonably satisfactory to Administrative
Agent that (i) all Indebtedness of the Acquired Companies and the other
Loan Parties has been fully paid, satisfied and discharged, other than
Indebtedness permitted under Subsection 3.1 and (ii) all Liens with
respect to any such Indebtedness to be paid have been terminated, other than
Permitted Encumbrances.

 

(G)           Miscellaneous.

 

(i)            Satisfaction
of Conditions Precedent to Verizon Acquisition.  All conditions precedent to the Verizon
Acquisition as provided in the Verizon Acquisition Documentation shall have
been satisfied, except (1) as consented to in writing by the Requisite
Lenders under this Agreement, which consent shall not be unreasonably withheld,
delayed or conditioned; (2) any unsatisfied condition precedent that arose
on or before the Acquisition Approval Date that is not, when taken together
with all unsatisfied conditions precedent not consented to by the Requisite
Lenders, Materially Adverse to the interests of Borrower, Administrative Agent
or the Lenders, and of which the Lenders received written notice on or before
the Acquisition Approval Date; or (3) any unsatisfied condition precedent
that arose after the Acquisition Approval Date that is immaterial, when taken
together with all unsatisfied conditions precedent not consented to by the
Requisite Lenders, and of which the Lenders received written notice promptly
upon Borrower becoming aware that such condition would not be satisfied.

 

(ii)           Verizon
Acquisition Documents.  There shall
have been no amendment, modification, change or consent or agreement to any
amendment, modification, change or consent to or regarding, any of the terms of
the Verizon Acquisition Documentation, except to the extent such change,
amendment, modification or consent (1) has been consented to in writing by
the Requisite Lenders under this Agreement, which consent shall not be
unreasonably withheld, delayed or conditioned; (2) became effective on or
before the Acquisition Approval Date, is not, when taken together with all
changes, amendments, modifications or consents not consented to by the
Requisite Lenders, Materially Adverse to the interests of Borrower,
Administrative Agent or the Lenders, and of which the Lenders received written
notice on or before the Acquisition Approval Date; or (3) became effective
after the Acquisition Approval Date, is immaterial, when taken together with
all changes, amendments, modifications or 

 

65

 

consents not consented to by the Requisite Lenders, and of which the
Lenders received written notice promptly upon its adoption.

 

(iii)          Verizon
Acquisition.  Administrative Agent
shall have received evidence reasonably satisfactory to Administrative Agent,
that the Verizon Acquisition has been fully consummated, other than payment of
the purchase price by Borrower and those conditions precedent identified in
Subsection 7.2(G)(i), in accordance with the terms and conditions set forth in
the Verizon Acquisition Documentation, other than as modified or waived in
accordance with the provisions of this Agreement.

 

(iv)          No
Material Adverse Effect.  Since December 31,
2008, there shall not have occurred any event or condition affecting the Loan
Parties which individually or in the aggregate has had or could reasonably be
expected to have a Material Adverse Effect. 
Since December 31, 2008, there shall not have occurred any event or
condition materially adversely affecting the assets, taken as a whole, to be
acquired by the Acquired Companies, Borrower or any other Loan Party pursuant
to the Verizon Acquisition.

 

(H)          Initial Funding Date.  The Initial Funding Date shall have occurred
on or before the Term Loan B Availability Expiration Date.

 

7.3           Conditions to All Loans.  The several obligations of Lenders to make
Loans, including the initial Loan, and of any Issuing Lender to issue Letters
of Credit, on any date (each such date, a “Funding
Date”) are subject to the further conditions precedent set forth
below:

 

(A)          Administrative Agent shall have
received, in accordance with the provisions of Subsection 1.3, a Notice of
Borrowing requesting an advance of a Loan, or, in accordance with the
provisions of Subsection 1.1(F)(iv), a notice requesting the issuance of a
Letter of Credit.

 

(B)           The representations and warranties
contained in Section 5 of this Agreement and elsewhere herein and in the
Loan Documents shall be (and each request by Borrower for a Loan or the
issuance of a Letter of Credit shall constitute a representation and warranty
by the Loan Parties that such representations and warranties are) true, correct
and complete in all material respects on and as of such Funding Date to the
same extent as though made on and as of that date, except for any
representation or warranty limited by its terms to a specific date and taking
into account any amendments to the Schedules or Exhibits as a result of any disclosures
made in writing by Borrower to Administrative Agent after the Amendment Date
which disclosures are reasonably acceptable to Administrative Agent.

 

(C)           No event shall have occurred and be
continuing or would result from the consummation of the borrowing contemplated
that would constitute an Event of Default or a Default.

 

(D)          No order, judgment or decree of any
court, arbitrator or Governmental Authority shall purport to enjoin or restrain
any Lender from making any Loan or an Issuing Lender from Issuing any Letter of
Credit.

 

66

 

(E)           Since the Amendment Date, there shall
not have occurred any event or condition has had or could reasonably be
expected to have a Material Adverse Effect.

 

7.4           Post-Closing Obligations.  Notwithstanding anything to the contrary set
forth herein or in any other Loan Document, it shall not be a condition
precedent to the funding of any Loan hereunder or the effectiveness hereof that
the Loan Parties complete prior to the later date set forth in the Post Closing
Letter any action, or execute and deliver (or cause to be executed and
delivered) any document, set forth in the Post-Closing Letter.

 

SECTION 8

ASSIGNMENT AND PARTICIPATION

 

8.1           Assignments and Participations in
Loans and Notes.

 

(A)          General.  The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby, except that neither
Borrower nor any other Loan Party may assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of
Administrative Agent and each Lender and no Lender may assign or otherwise
transfer any of its rights or obligations hereunder except (i) to an
assignee in accordance with the provisions of Subsection 8.1(B), (ii) by
way of participation in accordance with the provisions of Subsection 8.1(D), or
(iii) by way of pledge or assignment of a security interest subject to the
restrictions of Subsection 8.1(E) (and any other attempted assignment or
transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby, Participants
to the extent provided in Subsection 8.1(D) and, to the extent expressly
contemplated hereby, the Related Parties of each of Administrative Agent and
the Lenders) any legal or equitable right, remedy or claim under or by reason
of this Agreement.  In the event of an assignment
pursuant to this Subsection 8.1, if a new Note is requested by the Person to
which interests are to be assigned, Borrower shall, upon surrender of the
assigning Lender’s Note, issue a new Note to reflect the interests of the
assigning Lender and the Person to which interests are to be assigned.  Notwithstanding anything contained in this
Agreement to the contrary, so long as the Requisite Lenders shall remain
capable of making LIBOR Loans, no Person shall become a “Lender” hereunder
unless such Person shall also be capable of making LIBOR Loans.

 

(B)           Assignments by the Lenders.  Any Lender may at any time assign to one or
more assignees all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Loan Commitments and the Loans at
the time owing to it); provided that any such assignment shall be subject to
the following conditions:

 

(i)            Minimum
Amounts.

 

(1)           in the case of an assignment of the entire remaining
amount of the assigning Lender’s Loan Commitment and the Loans at the time 

 

67

 

owing to it or in the case of an assignment
to another Lender, an Affiliate of a Lender or an Approved Fund, no minimum
amount need be assigned; and

 

(2)           in any case not described in Subsection 8.1(B)(i)(1), the
aggregate amount of the Loan Commitment (which for this purpose includes Loans
outstanding thereunder) or, if the applicable Loan Commitment is not then in
effect, the principal outstanding balance of the Loans of the assigning Lender
subject to each such assignment (determined as of the date the Assignment and
Assumption with respect to such assignment is delivered to Administrative Agent
or, if an “Effective Date” is specified in the Assignment and Assumption, as of
the Effective Date) shall not be less than $5,000,000 unless each of
Administrative Agent and, so long as no Event of Default has occurred and is
continuing, Borrower otherwise consents (each such consent not to be
unreasonably withheld or delayed).

 

(ii)           Proportionate
Amounts.  Each partial assignment
shall be made as an assignment of a proportionate part of all of the assigning
Lender’s rights and obligations under this Agreement with respect to the Loan
or the Loan Commitment assigned, except that this clause (ii) shall not
prohibit any Lender from assigning all or a portion of its rights and
obligations among separate Facilities on a non-pro rata basis.

 

(iii)          Required
Consents.  No consent shall be
required for any assignment except to the extent required by Subsection
8.1(B)(i)(2) and, in addition:

 

(1)           the consent of Borrower (such consent not to be
unreasonably withheld or delayed) shall be required unless (a) an Event of
Default has occurred and is continuing at the time of such assignment or (b) such
assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; and

 

(2)           the consent of Administrative Agent (such consent not to
be unreasonably withheld or delayed) shall be required for assignments in
respect of a Facility if such assignment is to a Person that is not a Lender with
a Loan Commitment or a Loan in respect of such Facility, an Affiliate of such
Lender or an Approved Fund with respect to such Lender.

 

(iv)          Assignment
and Assumption.  The parties to each
assignment shall execute and deliver to Administrative Agent an Assignment and
Assumption, together with a processing and recordation fee of $3,500, and the
assignee, if it is not a Lender, shall deliver to Administrative Agent an
Administrative Questionnaire.

 

(v)           No
Assignment to Borrower.  No such
assignment shall be made to Borrower or any of Borrower’s Affiliates or
Subsidiaries.

 

68

 

(vi)          No
Assignment to Natural Persons.  No
such assignment shall be made to a natural person.

 

Subject to acceptance and
recording thereof by Administrative Agent pursuant to Subsection 8.1(C), from
and after the effective date specified in each Assignment and Assumption, the
assignee thereunder shall be a party to this Agreement and, to the extent of
the interest assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto) but shall continue to be entitled to the benefits of Subsections
1.4(D), 1.11, 1.13, 1.14, 9.1, 9.14 and 9.15 with respect to facts and
circumstances occurring prior to the effective date of such assignment.  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
Subsection 8.1(B) shall be treated for purposes of this Agreement as a
sale by such Lender of a participation in such rights and obligations in
accordance with Subsection 8.1(D).

 

(C)           Register.  Administrative Agent, acting solely for this
purpose as an agent of Borrower, shall maintain at one of its offices in
Denver, Colorado a copy of each Assignment and Assumption delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the
Loan Commitments of, and principal amounts of the Loans owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive absent manifest error, and Borrower, Administrative Agent and the
Lenders may treat each Person whose name is recorded in the Register pursuant
to the terms hereof as a Lender hereunder for all purposes of this Agreement
absent manifest error, notwithstanding notice to the contrary.  The Register shall be available for inspection
by Borrower and any Lender, at any reasonable time and from time to time upon
reasonable prior notice.

 

(D)          Participations.  Any Lender may at any time, without the
consent of, or notice to, Borrower or Administrative Agent, sell participations
to any Person (other than a natural person or Borrower or any of Borrower’s
Affiliates or Subsidiaries) (each, a “Participant”)
in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Loan Commitment and/or the Loans
owing to it); provided that (i) such Lender’s obligations under
this Agreement shall remain unchanged, (ii) such Lender shall remain
solely responsible to the other parties hereto for the performance of such
obligations and (iii) Borrower, Administrative Agent and the Lenders shall
continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement.  CoBank reserves the right to assign or sell
participations in all or any part of its Pro Rata Share of each Loan Commitment
and/or Loans on a non-patronage basis.

 

Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such
Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, modification or
waiver described in Subsection 9.2 relating 

 

69

 

to amendments requiring
unanimous consent of the Lenders that affects such Participant.  Borrower agrees that each Participant shall
be entitled to the benefits of Subsections 1.11 and 1.13  to the same extent as if it were a Lender and
had acquired its interest by assignment pursuant to Subsection 8.1(B).  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Subsection 6.7 as though
it were a Lender, provided such Participant agrees to be subject to Subsection
6.7 as though it were a Lender.

 

Any institutions chartered
under the Farm Credit System that (i) has purchased a participation in a
minimum amount of $2,500,000, (ii) if Administrative Agent is other than
CoBank, has been designated by written notice from the selling Lender to
Administrative Agent as being entitled to be accorded the right of a voting
Participant, and (iii) receives the prior written consent of
Administrative Agent (such consent being required only if Administrative Agent
is other than CoBank) and of Borrower (such consent being required only if an
Event of Default then exists and is continuing and only as to members not
disclosed to Borrower on or prior to the Amendment Date as being a Participant
as of the Amendment Date) to become a voting Participant, shall be entitled to
vote, and the voting rights of the selling Lender shall be correspondingly
reduced, on a dollar-for-dollar basis, as if such Participant were a Lender, on
any matter requiring or allowing a Lender to provide or withhold its consent,
or to otherwise vote on any proposed action to which the Lender selling such
participation is entitled to vote.

 

(E)           Certain Pledges.  Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement to
secure obligations of such Lender, including any pledge or assignment  to secure obligations to a Federal Reserve
Bank; provided that no such pledge or assignment shall release such Lender from
any of its obligations hereunder or substitute any such pledgee or assignee for
such Lender as a party hereto.

 

8.2           Administrative Agent.

 

(A)          Appointment.  Each Lender hereby irrevocably appoints and
authorizes CoBank, as Administrative Agent and as Arranger; to act as
Administrative Agent or Arranger 
hereunder and under any other Loan Document with such powers as are
specifically delegated to such Person by the terms of this Agreement and any
other Loan Document, together with such other powers as are reasonably
incidental thereto. Administrative Agent is authorized and empowered to amend,
modify or waive any provisions of this Agreement or the other Loan Documents on
behalf of Lenders, subject to the requirement that the consent of certain
Lenders or all Lenders, as appropriate, be obtained in certain instances as
provided in Subsections 8.3 and 9.2. 
CoBank hereby agrees to act as Administrative Agent on the express
conditions contained in this Subsection 8.2. 
Other than the applicable provisions of Subsections 8.2(E) and 8.2(H),
the provisions of this Subsection 8.2 are solely for the benefit of
Administrative Agent and Lenders, and neither the Loan Parties nor any other
Person shall have rights as a third party beneficiary of any of the provisions
hereof.  In performing its functions and
duties under this Agreement, Administrative Agent shall act solely as
Administrative Agent or Arranger, as applicable, of Lenders and Administrative
Agent shall assume or be deemed to have assumed no obligation toward or relationship
of agency or trust with or for any Loan Party or its respective Affiliates or
any other Person.  Administrative Agent
may execute any of its duties under this Agreement or any other Loan Document
by or through agents or attorneys-in-fact and shall not 

 

70

 

be responsible for the negligence or misconduct
of any agents or attorneys-in-fact that it selects with reasonable care.

 

(B)           Nature of Duties.  The duties of Administrative Agent shall be
mechanical and administrative in nature. 
Administrative Agent shall not have by reason of this Agreement a
fiduciary relationship in respect of any Lender.  Nothing in this Agreement or any of the Loan
Documents, express or implied, is intended to or shall be construed to impose
upon Administrative Agent any obligations in respect of this Agreement or any
of the Loan Documents except as expressly set forth herein or therein.  Each Lender expressly acknowledges that none of
Administrative Agent nor any of their respective officers, directors,
employees, agents, attorneys-in-fact or Affiliates have made any representation
or warranty to it and that no act by Administrative Agent or any such Person
hereafter taken, including any review of the affairs of the Loan Parties or any
other Person, shall be deemed to constitute any representation or warranty by
Administrative Agent to any Lender.  Each
Lender represents to Administrative Agent that (i) it has, independently
and without reliance upon Administrative Agent or any other Lender and based on
such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, prospects, operations,
properties, financial and other conditions and creditworthiness of the Loan Parties
and the Acquired Companies and made its own decision to enter into this
Agreement and extend credit to Borrower hereunder, and (ii) it will,
independently and without reliance upon Administrative Agent or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit analysis, appraisals and decisions
in taking or not taking action hereunder and under the other Loan Documents and
to make such investigation as it deems necessary to inform itself as to the
business, prospects, operations, properties, financial and other conditions and
creditworthiness of the Loan Parties and the Acquired Companies.  Administrative Agent shall have no duty or responsibility,
either initially or on a continuing basis, to provide any Lender with any
credit or other information with respect thereto (other than as expressly
required herein).  If Administrative
Agent seeks the consent or approval of any Lenders to the taking or refraining
from taking of any action hereunder, then Administrative Agent shall send
notice thereof to each Lender. 
Administrative Agent shall promptly notify each Lender any time that
Requisite Lenders have instructed Administrative Agent to act or refrain from
acting pursuant hereto.

 

(C)           Rights, Exculpation, Etc.  Each of Administrative Agent, its respective
Affiliates and any of its or its Affiliates’ respective officers, directors,
employees, agents or attorneys-in-fact shall not be liable to any Lender for
any action taken or omitted by them hereunder or under any of the Loan
Documents, or in connection herewith or therewith, except that each such entity
shall be liable with respect to its own gross negligence, bad faith or willful
misconduct.  Administrative Agent shall
not be liable for any apportionment or distribution of payments made by it in
good faith and if any such apportionment or distribution is subsequently
determined to have been made in error, the sole recourse of any Lender to whom
payment was due but not made shall be to recover from other Lenders any payment
in excess of the amount to which they are determined to be entitled (and such
other Lenders hereby agree to return to such Lender any such erroneous payments
received by them). In performing its functions and duties hereunder,
Administrative  Agent shall exercise the
same care which it would in dealing with loans for its own account, but
Administrative Agent shall not be responsible to any Lender for any recitals,
statements, representations or warranties herein or for the execution,
effectiveness, 

 

71

 

genuineness, validity, enforceability, collectibility
or sufficiency of this Agreement or any of the Loan Documents or the
transactions contemplated thereby, or for the financial condition of the Loan
Parties or any other Person. 
Administrative Agent may at any time request instructions from Lenders
with respect to any actions or approvals which by the terms of this Agreement or
of any of the Loan Documents Administrative Agent is permitted or required to
take or to grant, and if such instructions are promptly requested,
Administrative Agent shall be absolutely entitled to refrain from taking any
action or to withhold any approval and shall not be under any liability
whatsoever to any Person for refraining from any action or withholding any
approval under any of the Loan Documents (i) if such action or omission
would, in the reasonable opinion of Administrative Agent, violate any
Applicable Law or any provision of this Agreement or any other Loan Document,
or (ii) until it shall have received such instructions from Requisite
Lenders or all of Lenders, as applicable. 
Without limiting the foregoing, no Lender shall have any right of action
whatsoever against Administrative Agent as a result of Administrative Agent
acting or refraining from acting under this Agreement, the Notes, or any of the
other Loan Documents in accordance with the instructions of Requisite Lenders,
except in connection with its own gross negligence, bad faith or willful
misconduct.

 

(D)          Reliance.  Administrative Agent shall be entitled to
rely, and shall be fully protected in relying, upon any written or oral
notices, statements, certificates, orders or other documents or any telephone
message or other communication (including any writing, electronic mail, telex,
telecopy or telegram) believed by it in good faith to be genuine and correct
and to have been signed, sent or made by the proper Person, and with respect to
all matters pertaining to this Agreement or any of the Loan Documents and its
duties hereunder or thereunder, upon advice of counsel selected by it in
connection with the preparation, negotiation, execution, delivery,
administration, amendment, modification, waiver or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice with respect
to rights or responsibilities under, this Agreement or any of the other Loan
Documents.

 

(E)           Indemnification.  Lenders will reimburse and indemnify
Administrative Agent and its Affiliates and its and its Affiliates’ officers,
directors, employees, agents, and attorneys-in-fact (collectively, “Representatives”), on demand (to the extent
not actually reimbursed by the Loan Parties, but without limiting the
obligations of the Loan Parties under this Agreement) for and against any and
all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses (including, reasonable attorneys’ fees and expenses),
advances or disbursements of any kind or nature whatsoever which may be imposed
on, incurred by, or asserted against Administrative Agent or its
Representatives (i) in any way relating to or arising out of this
Agreement or any of the Loan Documents or any action taken or omitted by
Administrative Agent or its Representatives under this Agreement or any of the
Loan Documents, and (ii) in connection with the preparation, negotiation,
execution, delivery, administration, amendment, modification, waiver or
enforcement (whether through negotiations, legal proceedings or otherwise) of,
or legal advice in respect of rights or responsibilities under, this Agreement
or any of the other Loan Documents in proportion to each Lender’s Pro Rata
Share; provided, that no Lender shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses, advances or disbursements resulting from Administrative
Agent’s or its Representatives’ gross negligence, bad faith or willful
misconduct.  If any indemnity furnished
to Administrative Agent or its Representatives for any purpose shall, in the
opinion of Administrative Agent, be insufficient or become 

 

72

 

impaired, Administrative Agent may call for additional
indemnity and cease, or not commence, to do the acts indemnified against until
such additional indemnity is furnished. 
The obligations of Lenders under this Subsection 8.2(E) shall
survive the payment in full of the Obligations and the termination of this
Agreement.

 

(F)           Administrative Agent, Syndication
Agent and Documentation Agent Individually. 
With respect to its obligations under the Loan Commitments, the Loans
made by it, and the Notes issued to it, each of Administrative Agent, any
syndication agent, and any documentation agent shall have and may exercise the
same rights and powers hereunder and is subject to the same obligations and
liabilities as and to the extent set forth herein for any other Lender.  The terms “Lenders”
or “Requisite Lenders” or any
similar terms shall, unless the context clearly otherwise indicates, include
each of Administrative Agent, any syndication agent and any documentation agent
in its individual capacity as a Lender or as one of the Requisite Lenders.  Each of Administrative Agent, any syndication
agent and any documentation agent may lend money to, and generally engage in
any kind of banking, trust or other business with, Loan Parties or any other
Person as if it were not acting as Administrative Agent, syndication agent or
documentation agent pursuant hereto.

 

(G)           Notice of Default.  Administrative Agent shall not be required to
make any inquiry concerning either the performance or observance of any of the
terms, provisions or conditions of this Agreement or any of the Loan Documents
or the financial condition of the Loan Parties or any of their respective
Subsidiaries or any other Person, or the existence or possible existence of any
Default or Event of Default. 
Administrative Agent shall not be deemed to have knowledge or notice of
the occurrence of any Default or Event of Default unless Administrative Agent
shall have received written notice from a Loan Party or a Lender referring to
this Agreement, describing such Default or Event of Default and stating that such
notice is a “notice of default.”  In the
event that Administrative Agent receives such a notice, Administrative Agent
will give notice thereof to Lenders as soon as reasonably practicable; provided,
that if any such notice has also been furnished to Lenders, Administrative
Agent shall have no obligation to notify Lenders with respect thereto.  Administrative Agent  shall (subject to this Subsection 8.2) take
such action with respect to such Default or Event of Default as shall
reasonably be directed by Requisite Lenders; provided, further,
that, unless and until Administrative Agent shall have received such
directions, Administrative Agent may (but shall not be obligated to) take such
action, or refrain from taking such action, with respect to such Default or
Event of Default as it shall deem advisable and in the best interests of
Lenders.

 

(H)          Successor Administrative Agent.

 

(i)            Resignation.  Administrative Agent may resign from the
performance of all of its agency functions and duties hereunder at any time by
giving at least 30 Business Days’ prior written notice to Borrower and
Lenders.  Such resignation shall take
effect upon the acceptance by a successor Administrative Agent of appointment
pursuant to clause (ii) below or as otherwise provided below.

 

(ii)           Appointment
of Successor.  Upon any such notice
of resignation pursuant to clause (i) above, Requisite Lenders shall (and
if no Event of Default shall have occurred and be continuing, upon receipt of
Borrower’s prior consent, which shall 

 

73

 

not be unreasonably withheld), appoint a successor Administrative Agent
from among Lenders or another financial institution.  If a successor Administrative Agent shall not
have been so appointed within the 30 Business Day period referred to in
Subsection 8.2(H)(i) above, the retiring Administrative Agent, upon notice
to (and, so long as no Event of Default then exists and is continuing, the
consent of) Borrower, shall then appoint a successor Administrative Agent from
among Lenders who shall serve as Administrative Agent until such time, if any,
as Requisite Lenders, upon receipt of Borrower’s prior written consent (if
required under the first sentence of this paragraph), which shall not be
unreasonably withheld, appoint a successor Administrative Agent as provided
above.

 

(iii)          Successor
Administrative Agent.  Upon the
acceptance of any appointment as Administrative Agent under the Loan Documents
by a successor Administrative Agent, such successor Administrative Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Administrative Agent, and the retiring
Administrative Agent shall be discharged from its duties and obligations under
the Loan Documents.  After any retiring
Administrative Agent’s resignation as Administrative Agent under the Loan
Documents, the provisions of this Subsection 8.2 shall inure to its benefit as
to any actions taken or omitted to be taken by it while it was Administrative
Agent under the Loan Documents.

 

(I)            Collateral Matters.

 

(i)            Release
of Collateral.  Lenders hereby
irrevocably authorize Administrative Agent, at its option and in its
discretion, to release any Lien granted to or held by Administrative Agent upon
any property covered by the Security Documents (1) upon termination of the
Loan Commitments and payment in cash and satisfaction of all Obligations (other
than indemnification or expense reimbursement Obligations not then due and
payable); (2) constituting property being sold or disposed of in
compliance with the provisions of this Agreement if Borrower certifies to
Administrative Agent in writing that the sale or disposition is made in
compliance with the provisions of this Agreement and the other Loan Documents
(and Administrative Agent may rely in good faith conclusively on any such
certificate, without further inquiry); (3) constituting property leased to
a Loan Party under a lease which has expired or been terminated in a
transaction permitted under this Agreement or is about to expire and which has
not been, and is not intended by such Loan Party to be, renewed or extended; or
(4) owned by a Guarantor upon release of such Guarantor from its
obligations under any Loan Document if such Person ceases to be a Guarantor as
a result of a transaction permitted hereunder. 
In addition, Administrative Agent, with the consent of Requisite
Lenders, may release or compromise any Collateral and the proceeds thereof
constituting less than all or substantially all of the Collateral.

 

(ii)           Confirmation
of Authority; Execution of Releases. 
Without in any manner limiting Administrative Agent’s authority to act
without any specific or further authorization or consent by Lenders (as set
forth in Subsection 8.2(I)(i)), each Lender agrees to confirm in writing, upon
request by Administrative Agent or Borrower, the authority to release any
property covered by the Security Documents conferred upon 

 

74

 

Administrative Agent under clauses (2) through (4) of the
first sentence of Subsection 8.2(I)(i). 
Upon receipt by Administrative Agent of confirmation from each Lender of
its authority to release or compromise any particular item or types of property
covered by the Security Documents under Subsection 8.2(I)(i), and upon at least
10 Business Days’ prior written request by Borrower, Administrative Agent shall
(and is hereby irrevocably authorized by Lenders to) execute such documents as
may be necessary to evidence the release or compromise of the Liens granted to
Administrative Agent, for the benefit of Administrative Agent and Lenders, upon
such Collateral, provided that (1) Administrative Agent shall not
be required to execute any such document on terms which, in Administrative
Agent’s opinion, would expose Administrative Agent to liability or create any
obligation or entail any consequence other than the release or compromise of
such Liens without recourse or warranty, and (2) such release or
compromise shall not in any manner discharge, affect or impair the Secured
Obligations or any Liens upon (or obligations of the Loan Parties, in respect
of) all interests retained by the Loan Parties in the Collateral, including
proceeds of any sale or other disposition of any Collateral, all of which shall
continue to constitute part of the property covered by the Security Documents.

 

(iii)          Absence
of Duty.  Administrative Agent shall
have no obligation whatsoever to any Lender or any other Person to assure that
the property covered by the Security Documents exists or is owned by the Loan
Parties, or is cared for, protected or insured or has been encumbered or that
the Liens granted to Administrative Agent have been properly or sufficiently or
lawfully created, perfected, protected or enforced or are entitled to any
particular priority, or to exercise at all or in any particular manner or under
any duty of care, disclosure or fidelity, or to continue exercising, any of the
rights, authorities and powers granted or available to Administrative Agent in
this Agreement or in any other Loan Document, it being understood and agreed
that with respect to the property covered by the Security Documents or any act,
omission or event related thereto, Administrative Agent may act in any manner
it may deem appropriate, in its discretion, given Administrative Agent’s own
interest in property covered by the Security Documents, as one of Lenders and
as Administrative Agent, provided that Administrative Agent shall act in
conformance with Subsection 8.2 and exercise the same care which it would in
dealing with loans for its own account and shall be liable for its and its
Representatives’ gross negligence, bad faith or willful misconduct.

 

(J)            Agency for Perfection;
Enforcement of Security by Administrative Agent.  Administrative Agent and each Lender hereby
appoint each other Lender as agent for the purpose of perfecting Administrative
Agent’s security interest in assets which, in accordance with Article 9 of
the Uniform Commercial Code in any applicable jurisdiction, can be perfected only
by possession or control.  Should any
Lender (other than Administrative Agent) obtain possession of any such
Collateral, such Lender shall notify Administrative Agent thereof, and,
promptly upon Administrative Agent’s request therefor, shall deliver such
Collateral (or control thereof) to Administrative Agent or in accordance with
Administrative Agent’s instructions without affecting any Lender’s rights of
set-off.  Each Lender agrees that it will
not have any right individually to enforce or seek to enforce any Security
Document or to realize upon any collateral security for the Loans, it being
understood and agreed that such rights and remedies may be exercised only by
Administrative Agent.

 

75

 

(K)          Dissemination of Information.  Administrative Agent will use its best
efforts (except where otherwise provided herein) to provide Lenders with any
information received by Administrative Agent from the Loan Parties which is
required to be provided to a Lender hereunder or which is otherwise requested
by any Lender, provided that Administrative Agent shall not be liable to
Lenders for any failure to do so, except to the extent that such failure is
attributable to Administrative Agent’s or its Representatives’ gross
negligence, bad faith or willful misconduct.

 

8.3           Amendments, Consents and Waivers
for Certain Actions.  Except as
otherwise provided in this Agreement (including this Subsection 8.3 and
Subsection 9.2) or in the Post-Closing Letter, any Assignment and Assumption or
any other Loan Document, the consent of Requisite Lenders and Borrower will be
required to amend, modify, terminate, or waive any provision of this Agreement
or any of the other Loan Documents (other than any Secured Hedge Agreement,
which may only be amended, modified or terminated, or any provision thereof
waived, in accordance with the terms thereof).

 

8.4           Disbursement of Funds.  Administrative Agent shall advise each Lender
by telephone or telecopy of the amount of such Lender’s Pro Rata Share of any
Loan requested by Borrower no later than 11:00 a.m. (Denver, Colorado
time) at least two (2) Business Days immediately preceding the Funding
Date applicable thereto (in the case of LIBOR Loans), otherwise on the Business
Day immediately preceding the Funding Date applicable thereto, and each such
Lender shall pay Administrative Agent such Lender’s Pro Rata Share of such
requested Loan, in same day funds, by wire transfer to Administrative Agent’s
account by no later than 1:00 p.m. (Denver, Colorado time) on such Funding
Date.  If any Lender fails to pay the
amount of its Pro Rata Share forthwith upon Administrative Agent’s demand,
Administrative Agent shall promptly notify Borrower, and Administrative Agent
shall disburse to Borrower, by wire transfer of immediately available funds,
that portion of such Loan as to which Administrative Agent has received
funds.  In such event, Administrative
Agent may, on behalf of any Lender not timely paying Administrative Agent,
disburse funds to Borrower for Loans requested, subject to the provisions of
Subsection 8.5(B).  Each such Lender
shall reimburse Administrative Agent on demand for all funds disbursed on its
behalf by Administrative Agent.  Nothing
in this Subsection 8.4 or elsewhere in this Agreement or the other Loan
Documents, including the provisions of Subsection 8.5, shall be deemed to
require Administrative Agent (or any other Lender) to advance funds on behalf
of any Lender or to relieve any Lender from its obligation to fulfill its
commitments hereunder or to prejudice any rights that Administrative Agent or
Borrower may have against any Lender as a result of any default by such Lender
hereunder.

 

8.5           Disbursements of Advances;
Payments.

 

(A)          Pro Rata Treatment; Application.  Upon receipt by Administrative Agent of each
payment from Borrower hereunder, other than as described in the succeeding
sentence, Administrative Agent shall promptly credit each Lender’s account with
its Pro Rata Share of such payment in accordance with such Lender’s Pro Rata Share
and shall promptly wire advice of the amount of such credit to each
Lender.  Each payment to any Person
(including Administrative Agent) of fees under or in connection with any Loan
Document shall be made in like manner, but for the account of such Person
(including Administrative Agent).

 

76

 

Notwithstanding anything
in this Agreement to the contrary, in the event that any Lender fails to fund
its Pro Rata Share of any Loan in accordance with this Agreement (each such
failing Lender, a “Non-Funding Lender”;
the portion of such Loan funded by other Lenders, a “Non Pro Rata
Loan”), until such Non-Funding Lender’s cure of such failure the
proceeds of all amounts thereafter repaid or prepaid to Administrative Agent by
or on behalf of Borrower and otherwise required to be applied to such
Non-Funding Lender’s share of any of the Obligations pursuant to the terms of
this Agreement shall be advanced to Borrower by Administrative Agent on behalf
of such Non-Funding Lender to cure, in full or in part, such failure by such
Non-Funding Lender, but shall nevertheless be deemed to have been paid to such
Non-Funding Lender in satisfaction of such other Obligations; provided, however,
that (i) the foregoing shall apply only with respect to the proceeds of
payments of Obligations and shall not affect the conversion or continuation of
Loans pursuant to Subsections 1.2(G) and 1.3; (ii) any such
Non-Funding Lender shall be deemed to have cured its failure to fund its Pro
Rata Share of any Loan at such time as an amount equal to such Non-Funding
Lender’s original Pro Rata Share of the requested principal portion of such
Loan is fully funded to Borrower, whether made by such Non-Funding Lender
itself or by operation of the terms of the foregoing, and whether or not the
Non Pro Rata Loan with respect thereto has been repaid; (iii) amounts
advanced to Borrower to cure, in full or in part, any such Non-Funding Lender’s
failure to fund its Pro Rata Share of any Loan (“Cure Loans”) shall bear interest at the rate applicable to
Base Rate Loans in effect from time to time, and for all other purposes of this
Agreement shall be treated as if they were Base Rate Loans; and (iv) regardless
of whether or not a Default has occurred or is continuing, and notwithstanding
the instructions of Borrower as to its desired application, all repayments or
prepayments of principal which, in accordance with the other terms of this
Agreement, would be applied to the outstanding Base Rate Loans shall be applied
first, ratably to all Base Rate Loans constituting Non Pro Rata Loans, second,
ratably to Base Rate Loans other than those constituting Non Pro Rata Loans or
Cure Loans and, third, ratably to Base Rate Loans constituting Cure
Loans.

 

(B)           Availability of Lender’s Pro Rata
Share.

 

(i)            Unless
Administrative Agent has been notified by a Lender prior to a Funding Date of
such Lender’s intention not to fund its Pro Rata Share of the Loan amount
requested by Borrower, and Administrative Agent has given notice pursuant to
Subsection 8.4, Administrative Agent may assume that such Lender will make such
amount available to Administrative Agent on the Funding Date.  If such amount is not, in fact, made
available to Administrative Agent by such Lender when due, and Administrative
Agent disburses funds to Borrower on behalf of such Lender, Administrative Agent
will be entitled to recover such amount on demand from Borrower, without
set-off, counterclaim or deduction of any kind, with interest thereon at the
rate per annum then applicable to such Loan.

 

(ii)           Nothing
contained in this Subsection 8.5(B) will be deemed to relieve a Lender of
its obligation to fulfill its commitments or to prejudice any rights
Administrative Agent or Borrower may have against such Lender as a result of a
default by such Lender under this Agreement.

 

77

 

(iii)          Without
limiting the generality of the foregoing, each Lender shall be obligated to
fund its Pro Rata Share of any Revolving Loan made after any Event of Default
or acceleration of the Obligations with respect to any draw on a Letter of
Credit.

 

(C)           Return of Payments.

 

(i)            If
Administrative Agent pays an amount to a Lender under this Agreement in the
belief or expectation that a related payment has been or will be received by
Administrative Agent from Borrower and such related payment is not received by
Administrative Agent, then Administrative Agent will be entitled to recover
such amount from such Lender without set-off, counterclaim or deduction of any
kind.

 

(ii)           If
Administrative Agent determines at any time that any amount received by
Administrative Agent under this Agreement must be returned to Borrower or paid
to any other Person pursuant to any solvency law or otherwise, then,
notwithstanding any other term or condition of this Agreement, Administrative
Agent will not be required to distribute any portion thereof to any
Lender.  In addition, each Lender will repay to
Administrative Agent on demand any portion of such amount that Administrative
Agent has distributed to such Lender, together with interest at such rate, if any,
as Administrative Agent is required to pay to Borrower or such other Person,
without set-off, counterclaim or deduction of any kind.

 

SECTION 9

MISCELLANEOUS

 

9.1           Indemnities.  Each Loan Party agrees to indemnify, pay, and
hold Administrative Agent and each Lender and their respective Affiliates and
the respective officers, directors, employees, agents, and attorneys of
Administrative Agent, each Lender and their respective Affiliates (the “Indemnitees”) harmless from and against any
and all liabilities, obligations, losses (including reasonable fees of
attorneys and consultants), damages, penalties, actions, judgments, suits and
claims of any kind or nature whatsoever that may be imposed on, incurred by, or
asserted against the Indemnitee as a result of Administrative Agent and each
Lender being a party to this Agreement or otherwise in connection with this
Agreement, any of the other Loan Documents or any of the transactions
contemplated hereby or thereby; provided, that (A) in the absence
of a conflict of interest, the Loan Parties shall only be required to pay the
fees and expenses of one law firm for Administrative Agent and the Lenders (in
addition to the expenses of local and special counsel for Administrative Agent
and the Lenders) and (B) the Loan Parties shall have no obligation to an
Indemnitee hereunder with respect to liabilities arising from the gross
negligence, willful misconduct of, or breach of any Loan Document by, that
Indemnitee, in each such case as determined by a final non appealable judgment
of a court of competent jurisdiction. 
This Subsection 9.1 and all indemnification provisions contained within
any other Loan Document shall survive the termination of this Agreement.

 

9.2           Amendments and Waivers.  Except as otherwise provided herein or
therein, no amendment, modification, termination or waiver of any provision of
this Agreement, the Notes or any of the other Loan Documents, or consent to any
departure by Borrower therefrom, shall in any event be effective unless the
same shall be in writing and signed by Borrower and Requisite 

 

78

 

Lenders (or Administrative Agent, if expressly set
forth herein, in any Note or in any other Loan Document); provided,
that, notwithstanding any other provision of this Agreement to the contrary and
except, with respect to an assignee or assignor hereunder, to the extent
permitted by any applicable Assignment and Assumption, no amendment,
modification, termination or waiver shall, unless in writing and signed by all
Lenders affected thereby (which in the cases of clauses (D), (E), (F), (G) and
(H) shall be all Lenders), do any of the following: (A) increase any
Loan Commitment of any Lender, increase any Lender’s Pro Rata Share of any Loan
Commitment, change a pro rata payment of any Lender, or modify Subsections 6.7,
6.9 or 8.5; (B) reduce the principal of, rate of interest on or fees
payable with respect to any Loan (other than indirectly by reason of an
amendment to a defined term); (C) extend the Revolver Expiration Date or
the Term Loan Maturity Date or extend any other scheduled date on which any
Obligation is to be paid (other than the date of any prepayment, voluntary or
mandatory); (D) change the definition of “Requisite Lenders” or change the
percentage of Lenders which shall be required for Lenders or any of them to
take any action hereunder; (E) release or subordinate Administrative Agent’s
Lien on all or substantially all of the Collateral (except if the release or
subordination of such Collateral is permitted under and effected in accordance
with this Agreement or any other Loan Document) or any material guaranty of the
Obligations (except to the extent expressly contemplated thereby); (F) amend
or waive this Subsection 9.2 or the definitions of the terms used in this
Subsection 9.2 insofar as the definitions affect the substance of this
Subsection 9.2; (G) amend or waive Subsection 6.2 or the priority of
payments set forth in Subsection 6.8; or (H) consent to the assignment,
delegation or other transfer by any Loan Party of any of its rights and
obligations under any Loan Document; and provided, further, that
no amendment, modification, termination or waiver affecting the rights or
duties of Administrative Agent under any Loan Document shall in any event be
effective, unless in writing and signed by Administrative Agent, in addition to
Lenders required hereinabove to take such action.  Each amendment, modification, termination or
waiver shall be effective only in the specific instance and for the specific
purpose for which it was given.  No
amendment, modification, termination or waiver shall be required for
Administrative Agent to take additional Collateral pursuant to any Loan
Document.  No notice to or demand on any
Loan Party or any other Person in any case shall entitle such Loan Party or
such Person to any other or further notice or demand in similar or other
circumstances.  Any amendment,
modification, termination, waiver or consent effected in accordance with this
Subsection 9.2 shall be binding upon each holder of the Notes at the time
outstanding, each future holder of the Notes, and, if signed by Borrower, upon
all the Loan Parties.

 

In
connection with any proposed amendment, modification, waiver or termination (a “Proposed Change”) requiring the consent of all Lenders or
each affected Lender, if the consent of Requisite Lenders is obtained, but the
consent of other Lenders whose consent is required is not obtained (any such
Lender whose consent is required but not obtained being referred to as a “Non-Consenting Lender”), then so long as Administrative
Agent is not a Non-Consenting Lender, at Borrower’s request (and at Borrower’s
sole cost and expense) Administrative Agent, or a Person reasonably acceptable
to Administrative Agent (the “Substitute Lender”),
shall have the right with Administrative Agent’s consent (but shall have no
obligation) to purchase from such Non-Consenting Lenders, and such
Non-Consenting Lenders agree that they shall, upon Administrative Agent’s
request, sell and assign to Administrative Agent or such Person, all of the
Loan Commitments and/or Loans of such Non-Consenting Lenders for an amount
equal to the principal balance of all Loans held by the Non-Consenting Lenders
and all accrued interest 

 

79

 

and
fees and other amounts due or outstanding to such Non-Consenting Lender through
the date of sale, such purchase and sale to be consummated pursuant to an
executed Assignment and Assumption; provided, that, such
Substitute Lender must agree in writing to consent to the proposed amendment,
modification, waiver or termination to which the Non-Consenting Lender did not
consent.  Upon execution of any
Assignment and Assumption Agreement pursuant to this Subsection 9.2, the
Substitute Lender shall be entitled to vote on any pending waiver, amendment or
consent in lieu of the Non-Consenting Lender replaced by such Substitute
Lender.

 

Notwithstanding
anything to the contrary herein, no Defaulting Lender shall have any right to
approve or disapprove any amendment, waiver or consent hereunder, except that
the Loan Commitment of such Lender may not be increased or extended without the
consent of such Lender (it being understood that any Loan Commitments or Loans
held or deemed held by any Defaulting Lender shall be excluded from a vote of
the Lenders hereunder requiring any consent of the Lenders).

 

9.3           Notices.  Any required notice or other communication
shall be in writing addressed to the respective party as set forth below and
may be personally delivered, telecopied, or sent by overnight courier service
and shall be deemed to have been given: (A) if delivered in person, when
delivered; (B) if delivered by telecopy, on the date of transmission if
transmitted on a Business Day before 2:00 p.m. (Denver, Colorado time) and
otherwise on the Business Day next succeeding the date of transmission; (C) if
delivered by overnight courier, two (2) Business Days after delivery to
the courier properly addressed.

 

Notices
shall be addressed as follows or to such other address as a party shall
designate in a written notice in accordance with this Subsection 9.3:

 

	
  If
  to Borrower or

  	
   

  
	
  any
  other Loan Party:

  	
   

  
	
   

  	
   

  
	
   

  	
  Atlantic
  Tele-Network, Inc.

  
	
   

  	
  10 Derby Square

  
	
   

  	
  Salem, MA 01970

  
	
   

  	
  Attn: Michael Prior

  
	
   

  	
  Fax
  No.: 978.744.3951

  
	
   

  	
   

  
	
  With
  a copy to:

  	
  Edwards
  Angell Palmer & Dodge LLP

  
	
   

  	
  111 Huntington Avenue

  
	
   

  	
  Boston, MA 02199

  
	
   

  	
  Attn: John D. Casais

  
	
   

  	
  Fax No.: 617.227.4420

  

 

If to a Lender or Administrative Agent:  To the address set forth on Schedule 9.3
or in the applicable Assignment and Assumption.

 

9.4           Failure or Indulgence Not Waiver;
Remedies Cumulative.  No failure or
delay on the part of Administrative Agent or any Lender to exercise, nor any
partial exercise of, any power, right or privilege hereunder or under any other
Loan Documents shall impair such power, 

 

80

 

right, or privilege or be construed to be a waiver of
any Default or Event of Default.  All
rights and remedies existing hereunder or under any other Loan Document are
cumulative to and not exclusive of any rights or remedies otherwise available.

 

9.5           Marshaling; Payments Set Aside.  Neither Administrative Agent nor any Lender
shall be under any obligation to marshal any assets in payment of any or all of
the Secured Obligations.  To the extent
that Borrower or any other Person makes payment(s) or Administrative Agent
enforces its Liens or Administrative Agent or any Lender exercises its right of
set-off, and such payment(s) or the proceeds of such enforcement or
set-off is subsequently invalidated, declared to be fraudulent or preferential,
set aside, or required to be repaid by anyone (whether by demand, litigation,
settlement or otherwise), then to the extent of such recovery, the Secured
Obligations or part thereof originally intended to be satisfied, and all Liens,
rights and remedies therefor, shall be revived and continued in full force and
effect as if such payment had not been made or such enforcement or set-off had
not occurred.

 

9.6           Severability.  The invalidity, illegality, or
unenforceability of any provision under the Loan Documents in any jurisdiction
shall not affect or impair the remaining provisions in the Loan Documents or
any such invalid, unenforceable or illegal provision in any jurisdiction in
which it is not invalid, unenforceable or illegal.

 

9.7           Lenders’ Obligations Several;
Independent Nature of Lenders’ Rights. 
The obligation of each Lender hereunder is several and not joint and no
Lender shall be responsible for the obligation or commitment of any other
Lender hereunder.  In the event that any
Lender at any time should fail to make a Loan as herein provided, Lenders, or
any of them, at their sole option, may make the Loan that was to have been made
by the Lender so failing to make such Loan. 
Nothing contained in any Loan Document and no action taken by
Administrative Agent or any Lender pursuant hereto or thereto shall be deemed
to constitute Lenders to be a partnership, an association, a joint venture or
any other kind of entity. The amounts payable at any time hereunder to each
Lender shall be a separate and independent debt.

 

9.8           Headings.  Section and Subsection headings are
included herein for convenience of reference only and shall not constitute a
part of this Agreement for any other purposes or be given substantive effect.

 

9.9           Applicable Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND SHALL
BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF
COLORADO, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT REQUIRE OR PERMIT
APPLICATION OF THE LAWS OF ANY OTHER STATE OR JURISDICTION.

 

9.10         Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
permitted assigns, except that none of the Loan Parties may assign their
respective rights or obligations hereunder without the written consent of all
Lenders.

 

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9.11         No Fiduciary Relationship.  No provision in the Loan Documents and no
course of dealing between the parties shall be deemed to create any fiduciary
duty owing to the Loan Parties or their respective Subsidiaries or Affiliates
by Administrative Agent or any Lender.

 

9.12         Construction.  Administrative Agent, each Lender and
Borrower acknowledge that each of them has had the benefit of legal counsel of
its own choice and has been afforded an opportunity to review the Loan
Documents with its legal counsel and that the Loan Documents shall be
constructed as if jointly drafted by Administrative Agent, each Lender and
Borrower.

 

9.13         Confidentiality.  Administrative Agent and Lenders agree to
hold any confidential information sufficiently identified as being confidential
or proprietary that they may receive from or on behalf of the Loan Parties or
any of their respective Subsidiaries pursuant to this Agreement in confidence,
except for disclosure: (A) on a confidential basis to directors, officers,
employees, Administrative Agent or legal counsel, independent public accountants
and other professional advisors of Administrative Agent or Lenders or their
respective Affiliates; (B) to regulatory officials having jurisdiction
over Administrative Agent or Lenders or their Affiliates; (C) as required
by Applicable Law or legal process; or (D) in connection with any legal
proceeding between or among Administrative Agent or Lenders or their Affiliates
and the Loan Parties, their respective Subsidiaries or their respective
Affiliates (provided that, in the event Administrative Agent or Lenders
or their Affiliates are so required to disclose such confidential information
pursuant to clause (C) of this Subsection 9.13, Administrative Agent
or Lenders shall promptly notify Borrower (unless legally prohibited from so
doing), so that Borrower or any of its Subsidiaries may seek, at its sole cost
and expense, a protective order or other appropriate remedy); and (E) to
another Person in connection with a disposition or proposed disposition to that
Person of all or part of that Lender’s interests hereunder or a participation
interest in its Pro Rata Share, provided that such disclosure is made
subject to an appropriate confidentiality agreement on terms substantially
similar to this Subsection 9.13. For purposes of the foregoing, “confidential
information” shall mean all information respecting the Loan Parties, their
respective Subsidiaries or their respective Affiliates, other than (i) information
previously filed by Borrower or its Affiliates or Subsidiaries with any
Governmental Authority and available to the public or otherwise made available
to third parties on a non-confidential basis, (ii) information previously
published in any public medium from a source other than, directly or
indirectly, Administrative Agent or Lenders in violation of this Subsection
9.13 and (iii) information obtained by Administrative Agent or Lenders
from a source independent of Borrower or its Subsidiaries.

 

9.14         Consent to Jurisdiction and Service
of Process.  EACH OF THE LOAN
PARTIES, ADMINISTRATIVE AGENT AND LENDERS HEREBY IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL COURT OR STATE COURT IN
THE STATE OF COLORADO, HAVING SUBJECT MATTER JURISDICTION OVER ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENTS.  EACH OF THE LOAN PARTIES, ADMINISTRATIVE
AGENT AND LENDERS HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH
ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND
IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE
VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT,
PERSONAL 

 

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JURISDICTION OF ANY SUCH
COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM.  NOTHING HEREIN SHALL LIMIT THE RIGHT OF ANY
PARTY HERETO TO BRING PROCEEDINGS AGAINST ANY OTHER PARTY HERETO IN THE COURTS
OF ANY OTHER JURISDICTION.

 

(A)          EACH OF THE LOAN PARTIES,
ADMINISTRATIVE AGENT AND LENDERS HEREBY AGREES THAT SERVICE OF THE SUMMONS AND
COMPLAINT AND ALL OTHER PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT,
ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING BY REGISTERED MAIL, RETURN
RECEIPT REQUESTED, A COPY OF SUCH PROCESS TO A LOAN PARTY, ADMINISTRATIVE AGENT
OR A LENDER AT THE ADDRESS TO WHICH NOTICES TO SUCH LOAN PARTY, ADMINISTRATIVE
AGENT OR SUCH LENDERS ARE THEN TO BE SENT PURSUANT TO SUBSECTION 9.3 AND
THAT PERSONAL SERVICE OF PROCESS SHALL NOT BE REQUIRED.  NOTHING HEREIN SHALL BE CONSTRUED TO PROHIBIT
SERVICE OF PROCESS BY ANY OTHER METHOD PERMITTED BY LAW.

 

9.15         Waiver of Jury Trial.  EACH OF THE LOAN PARTIES, ADMINISTRATIVE
AGENT AND LENDERS HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, ANY OF
THE OTHER LOAN DOCUMENTS, OR ANY DEALINGS BETWEEN OR AMONG THEM RELATING TO THE
SUBJECT MATTER OF THIS LOAN TRANSACTION AND ANY RELATIONSHIP THAT IS BEING
ESTABLISHED AMONG ANY OF THEM.  THE SCOPE
OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE
FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION,
INCLUDING, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER
COMMON LAW AND STATUTORY CLAIMS.  EACH OF
THE LOAN PARTIES, ADMINISTRATIVE AGENT AND LENDERS ACKNOWLEDGE THAT THIS WAIVER
IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS
ALREADY RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH WILL
CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS.  EACH OF THE LOAN PARTIES, ADMINISTRATIVE
AGENT AND LENDERS FURTHER WARRANT AND REPRESENT THAT EACH HAS REVIEWED THIS
WAIVER WITH ITS LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES
ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.  THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT
BE MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THE LOAN
DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS.  IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE
FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.  EACH OF THE LOAN PARTIES, ADMINISTRATIVE
AGENT AND LENDERS ALSO WAIVE ANY BOND OR SURETY OR SECURITY UPON SUCH BOND
WHICH MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF ADMINISTRATIVE AGENT AND EACH
LENDER.

 

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9.16         Survival of Warranties and Certain
Agreements.  All agreements,
representations and warranties made herein shall survive the execution and
delivery of this Agreement, the making of the Loans, the issuance of the
Letters of Credit and the execution and delivery of the Notes.  Notwithstanding anything in this Agreement or
implied by law to the contrary, the agreements of the Loan Parties set forth in
Subsections 1.4(D), 1.11, 1.14, 9.1, 9.9, 9.14 and 9.15 and the agreements of
Lenders set forth in Subsection 8.2(E) (together with any other Sections
and Subsections stated herein to so survive) shall survive the payment of the
Loans and the Letter of Credit Liabilities and the termination of this
Agreement.

 

9.17         Entire Agreement.  This Agreement, the Notes and the other Loan
Documents referred to herein embody the final, entire agreement among the
parties hereto and supersede any and all prior commitments, agreements,
representations, understandings, whether oral or written, relating to the
subject matter hereof and may not be contradicted or varied by evidence of
prior, contemporaneous or subsequent oral agreements or discussions of the
parties hereto.

 

9.18         Counterparts; Effectiveness.  This Agreement and any amendments, waivers,
consents or supplements may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed an original, but all of which
counterparts together shall constitute but one and the same instrument.  This Agreement shall become effective upon
the execution of a counterpart hereof by each of the parties hereto.

 

9.19         Patriot Act.  The Lenders notify the Loan Parties and their
respective Subsidiaries that pursuant to the requirements of the USA PATRIOT
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”), they are required to obtain,
verify and record information that identifies each of Borrower and its
Subsidiaries, which information includes the name and address of such entity
and other information that will allow the Lenders to identify such in
accordance with the Patriot Act.  Each of
the Loan Parties and their respective Subsidiaries shall provide to the extent
commercially reasonable, such information and take such other actions as are
reasonably requested by the Lenders in order to assist the Lenders in maintaining compliance with the Patriot
Act.

 

9.20         Guaranty of Secured Obligations by
Guarantors.

 

(A)          The Guaranty.  In order to induce the Lenders to enter into
this Agreement and to extend credit hereunder and in recognition of the direct
benefits to be received by Guarantors from the extensions of credit hereunder,
each Guarantor hereby agrees with Administrative Agent and the Secured Parties
as follows:  each Guarantor hereby
unconditionally and irrevocably jointly and severally guarantees as primary
obligor and not merely as surety the full and prompt payment when due, whether
upon maturity, by acceleration or otherwise, to Administrative Agent and the
other Secured Parties of any and all Secured Obligations.  If any or all of the Secured Obligations
become due and payable hereunder, each Guarantor unconditionally promises to
pay such indebtedness to Administrative Agent and the other Secured Parties, on
order, or demand, together with any and all reasonable expenses which may be
incurred by Administrative Agent and the other Secured Parties in collecting
any of the Secured Obligations.  Each
Guarantor hereby agrees that this is a guaranty of payment and performance and
not of collection only.

 

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Notwithstanding
any provision to the contrary contained herein or in any other of the Loan
Documents, to the extent the obligations of a Guarantor shall be adjudicated to
be invalid or unenforceable for any reason (including, because of any
applicable state or federal law relating to fraudulent conveyances or transfers)
then the obligations of each such Guarantor hereunder shall be limited to the
maximum amount that is permissible under Applicable Law (whether federal or
state and including, the Bankruptcy Code).

 

Each
Guarantor’s maximum obligations hereunder (the “Maximum Guarantor Liability”) in any case or proceeding
referred to below (but only in such a case or proceeding) shall not be in
excess of:

 

(i)            in
a case or proceeding commenced by or against such Guarantor under the
Bankruptcy Code on or within two (2) years from the date on which any of
the Secured Obligations are incurred, the maximum amount that would not
otherwise cause the obligations of such Guarantor under this Subsection 9.20 (or any other
obligations of such Guarantor to Administrative Agent, the Lenders and any
other Person holding any of the Secured Obligations) to be avoidable or
unenforceable against such Guarantor under (A) Section 548 of the
Bankruptcy Code or (B) any state fraudulent transfer or fraudulent
conveyance act or statute applied in such case or proceeding by virtue of Section 544
of the Bankruptcy Code; or

 

(ii)           in
a case or proceeding commenced by or against such Guarantor under the
Bankruptcy Code subsequent to two (2) years from the date on which any of
the Secured Obligations of such Guarantor are incurred, the maximum amount that
would not otherwise cause the obligations of such Guarantor under this Subsection 9.20 (or any other
obligations of such Guarantor to Administrative Agent, Lenders and any other
Person holding any of the Secured Obligations) to be avoidable or unenforceable
against such Guarantor under any state fraudulent transfer or fraudulent
conveyance act or statute applied in any such case or proceeding by virtue of Section 544
of the Bankruptcy Code;

 

(iii)          in
a case or proceeding commenced by or against such Guarantor under any law,
statute or regulation other than the Bankruptcy Code relating to dissolution,
liquidation, conservatorship, bankruptcy, moratorium, readjustment of debt,
compromise, rearrangement, receivership, insolvency, reorganization or similar
debtor relief from time to time in effect affecting the rights of creditors
generally (collectively, “Other Debtor Relief
Law”), the maximum amount that would not otherwise cause the
obligations of such Guarantor under this Subsection 9.20 (or any other obligations of such Guarantor to
Administrative Agent, the Lenders and any other Person holding any of the
Secured Obligations) to be avoidable or unenforceable against such Guarantor
under such Other Debtor Relief Law, including, any state fraudulent transfer or
fraudulent conveyance act or statute applied in any such case or
proceeding.  (The substantive state or
federal laws under which the possible avoidance or unenforceability of the
obligations of such Guarantor under this Subsection 9.20 (or any other obligations of Guarantor to
Administrative Agent, the Lenders and any other Person holding any of the
Secured Obligations) shall be determined in any such case or proceeding shall
hereinafter be referred to as the “Avoidance
Provisions”.)

 

85

 

To
the extent set forth above, but only to the extent that the obligations of such
Guarantor under this Subsection 9.20,
or the transfers made by such Guarantor under the Security Documents to which
it is a party, would otherwise be subject to avoidance under any Avoidance
Provisions if such Guarantor is not deemed to have received valuable
consideration, fair value, fair consideration or reasonably equivalent value for
such transfers or obligations, or if such transfers or obligations of such
Guarantor under this Subsection 9.20
would render such Guarantor insolvent, or leave such Guarantor with an
unreasonably small capital or unreasonably small assets to conduct its business,
or cause such Guarantor to have incurred debts (or to have intended to have
incurred debts) beyond its ability to pay such debts as they mature, in each
case as of the time any of the obligations of such Guarantor are deemed to have
been incurred and transfers made under such Avoidance Provisions, then such
obligations shall be reduced to that amount which, after giving effect thereto,
would not cause the obligations of such Guarantor under this Subsection 9.20
(or any other obligations of such Guarantor to Administrative Agent, the
Lenders or any other Person holding any of the Secured Obligations), as so
reduced, to be subject to avoidance under such Avoidance Provisions.  This paragraph is intended solely to preserve
the rights hereunder of Administrative Agent, the Lenders and any other Person
holding any of the Secured Obligations to the maximum extent that would not
cause the obligations of such Guarantor under this Subsection 9.20 to be subject to avoidance under any Avoidance
Provisions, and neither such Guarantor nor any other Person shall have any
right, defense, offset, or claim under this paragraph as against Administrative
Agent, the Lenders or any other Person holding any of the Secured Obligations
that would not otherwise be available to such Person under the Avoidance
Provisions.

 

Each
Guarantor agrees that the obligations of such Guarantor under this Subsection 9.20 may at any time and
from time to time exceed the Maximum Guarantor Liability, without impairing the
guaranty or any provision contained herein or affecting the rights and remedies
of Administrative Agent and the Lenders hereunder.

 

(B)           Bankruptcy.  Additionally, each of Guarantors
unconditionally and irrevocably guarantees jointly and severally the payment of
any and all Secured Obligations whether or not due or payable upon the
occurrence of any of the events specified in Subsections 6.1(F) or (G) and
unconditionally promises to pay such Secured Obligations on demand.  Each of the Guarantors further agrees that to
the extent that Borrower or any Guarantor shall make a payment or a transfer of
an interest in any property to Administrative Agent or any Lender, which
payment or transfer or any part thereof is subsequently invalidated, declared
to be fraudulent or preferential, or otherwise is avoided, and/or required to
be repaid to Borrower or any Guarantor, the estate of Borrower or any
Guarantor, a trustee, receiver or any other party under any bankruptcy law,
state or federal law, common law or equitable cause, then to the extent of such
avoidance or repayment, the obligation or part thereof intended to be satisfied
shall be revived and continued in full force and effect as if said payment had
not been made.

 

(C)           Nature of Liability.  The liability of each Guarantor hereunder is
exclusive and independent of any security for or other guaranty of the Secured
Obligations whether executed by any such Guarantor, any other guarantor or by
any other party, and no Guarantor’s liability hereunder shall be affected or
impaired by (i) any direction as to application of payment by Borrower or
by any other party, or (ii) any other continuing or other guaranty,
undertaking or maximum liability of a guarantor or of any other party as to the
Secured Obligations, or (iii) any 

 

86

 

payment on or reduction of any such other guaranty or
undertaking, or (iv) any dissolution, termination or increase, decrease or
change in personnel by Borrower or other guarantor, or (v) any payment
made to a Secured Party on the Secured Obligations which such Secured Party
repays Borrower or another guarantor pursuant to court order in any bankruptcy,
reorganization, arrangement, moratorium or other debtor relief proceeding, and
each of Guarantors waives, to the fullest extent permitted by Applicable Law,
any right to the deferral or modification of its obligations hereunder by
reason of any such proceeding.

 

(D)          Independent Obligation.  The obligations of each Guarantor hereunder
are independent of the obligations of any other guarantor or Borrower, and a
separate action or actions may be brought and prosecuted against each Guarantor
whether or not action is brought against any other guarantor or Borrower and
whether or not any other Guarantor or Borrower is joined in any such action or
actions.

 

(E)           Authorization.  Each of Guarantors authorizes each Secured
Party without notice or demand (except as shall be required by applicable
statute and cannot be waived), and without affecting or impairing its liability
hereunder, from time to time to (i)  change the terms of the Secured
Obligations or any part thereof, with the consent of Borrower, (ii) take
and hold security from any other guarantor or any other party for the payment
of this guaranty or the Secured Obligations and exchange, enforce, waive and
release any such security, and apply such security and direct the order or
manner of sale thereof as Administrative Agent and Lenders in their discretion
may determine and (iii) release or substitute any one or more endorsers, guarantors,
Borrower or other obligors.

 

(F)           Reliance.  It is not necessary for Administrative Agent
or the Lenders to inquire into the capacity or powers of Borrower or any
Guarantor or the officers, directors, members, partners or agents acting or
purporting to act on its behalf, and any indebtedness made or created in
reliance upon the professed exercise of such powers shall be guaranteed
hereunder.

 

(G)           Waiver.

 

(i)            Each
of the Guarantors waives any right (except as shall be required by applicable
statute and cannot be waived) to require any Secured Party to (1) proceed
against Borrower, any other guarantor or any other party, (2) proceed
against or exhaust any security held from Borrower, any other guarantor or any
other party, or (3) pursue any other remedy in such Secured Party’s power
whatsoever.  Each of the Guarantors
waives any defense based on or arising out of any defense, other than payment
in full of the Secured Obligations, based on or arising out of the disability
of Borrower, any other guarantor or any other party, or the unenforceability of
the indebtedness or any part thereof from any cause, or the cessation from any
cause of the liability of Borrower other than payment in full of the
indebtedness.  Any Secured Party may, at
its election, foreclose on any security held by it by one or more judicial or
nonjudicial sales, whether or not every aspect of any such sale is commercially
reasonable (to the extent such sale is permitted by and conducted in accordance
with Applicable Law), or exercise any other right or remedy any Secured Party
may have against Borrower or any other party, or any security, without
affecting or impairing in any way the liability of any Guarantor hereunder
except to the extent the indebtedness 

 

87

 

has been paid.  Each of the
Guarantors waives any defense arising out of any such election by any Secured
Party, even though such election operates to impair or extinguish any right of
reimbursement or subrogation or other right or remedy of the Guarantors against
Borrower or any other party or any security.

 

(ii)           Each
of the Guarantors waives, to the fullest extent permitted by Applicable Law,
all presentments, demands for performance, protests and notices, including,
notices of nonperformance, notice of protest, notices of dishonor, notices of
acceptance of this guaranty, and notices of the existence, creation or
incurring of new or additional indebtedness. 
Each of the Guarantors assumes all responsibility for being and keeping itself
informed of Borrower’s financial condition and assets, and of all other
circumstances bearing upon the risk of nonpayment of the obligations and the
nature, scope and extent of the risks which such Guarantor assumes and incurs
hereunder, and agrees that none of the Secured Parties shall have any duty to
advise such Guarantor of information known to it regarding such circumstances
or risks.

 

(iii)          Each
of the Guarantors hereby agrees it will not exercise, and irrevocably
subordinates to the prior payment in full and in cash of the Secured
Obligations (other than contingent indemnity, expense reimbursement and tax
gross-up payment for which no claim has been asserted), any rights of
subrogation which it may at any time otherwise have as a result of the guaranties
provided in this Subsection 9.20 (whether contractual, under Section 509
of the U.S. Bankruptcy Code, or otherwise) to the claims of any Secured Party
against Borrower or any other guarantor of the Secured Obligations
(collectively, the “Other Parties”)
and all contractual, statutory or common law rights of reimbursement,
contribution or indemnity from any Other Party which it may at any time
otherwise have as a result of this guaranty. 
Each of the Guarantors hereby further agrees until the Secured
Obligations have been paid in full (other than contingent indemnity, expense
reimbursement and tax gross-up payment for which no claim has been asserted)
and all Loan Commitments terminated not to exercise any right to enforce any
other remedy which any Secured Party now have or may hereafter have against any
Other Party, any endorser or any other guarantor of all or any part of the
Secured Obligations and any benefit of, and any right to participate in, any
security or collateral given to or for the benefit of any Secured Party to
secure payment of the Secured Obligations or any Other Party.

 

(H)          Limitation on Enforcement.  Administrative Agent and the other Secured
Parties agree that the guaranties provided in this Subsection 9.20 may be enforced only by the action of
Administrative Agent acting upon the instructions of the Requisite Lenders and
that no Secured Party shall have any right individually to seek to enforce or
to enforce any such guaranty, it being understood and agreed that such rights
and remedies may be exercised by Administrative Agent for the benefit of the
Secured Parties under the terms of this Agreement.

 

(I)            Confirmation of Payment.  Administrative Agent and the Lenders will,
upon request after payment of the indebtedness and obligations which are the
subject of the guaranties provided in this Subsection 9.20 and termination of the Loan Commitments, confirm
to Borrower, any Guarantor or any other Person that the such Secured
Obligations have been 

 

88

 

paid and the commitments relating thereto terminated,
subject to the provisions of Subsection
9.20(B).

 

(J)            Subordination of Intercompany
Debt.  Any Indebtedness of Borrower
or any Guarantor now or hereafter held by any Guarantor (a “Subordinated Intercompany Lender”) is hereby subordinated in
right of payment to the Secured Obligations, and any such Indebtedness
collected or received by a Subordinated Intercompany Lender following the
occurrence of any Event of Default shall be held in trust for Administrative
Agent on behalf of Secured Parties and shall forthwith be paid over to
Administrative Agent for the benefit of Secured Parties to be credited and
applied against the Secured Obligations but without affecting, impairing or
limiting in any manner the liability of the Subordinated Intercompany Lender
under any other provision hereof.

 

9.21         FCC and PUC Compliance.  Notwithstanding anything to the contrary in
this Agreement and the other Loan Documents, no party hereto or thereto shall
take any action under this Agreement or the other Loan Documents that would
constitute or result in an assignment of any License, or a change of control of
any Loan Party or Subsidiary directly or indirectly holding a License, to the
extent that such assignment or change of control would require the prior
approval by the FCC under the Communications Act and/or any applicable PUC
under the PUC Laws without first obtaining such required approval.

 

9.22         Effectiveness of Amendment and
Restatement; No Novation; Waiver. 
The amendment and restatement of the Existing Credit Agreement pursuant
to this Agreement shall be effective as of the Amendment Date (subject to
satisfaction of all of the conditions set forth in Subsection 7.1 except as
provided in Subsection 7.4).  All
obligations and rights of the Loan Parties, Administrative Agent, Issuing
Lender and Lenders arising out of or relating to the period commencing on the
Amendment Date shall be governed by the terms and provisions of this Agreement;
the obligations of and rights of the Loan Parties, Administrative Agent and
Lenders arising out of or relating to the period prior to the Amendment Date
shall continue to be governed by the Existing Credit Agreement without giving
effect to the amendment and restatements provided for herein.  This Agreement shall not constitute a
novation or termination of Loan Parties’ obligations under the Existing Credit
Agreement or any document, note or agreement executed or delivered in
connection therewith, but shall constitute an amendment and restatement of the
obligations and covenants of the Loan Parties under such documents, notes and
agreements, and the Loan Parties hereby reaffirm all such obligations and
covenants, as amended and restated hereby. 
All obligations of the Loan Parties pursuant to that certain
Post-Closing Letter, dated as of September 10, 2008, as amended, is hereby
deemed satisfied or waived.

 

SECTION 10

DEFINITIONS

 

10.1         Certain Defined Terms.  The terms defined below are used in this
Agreement as so defined.  Terms defined
in the preamble and recitals to this Agreement are used in this Agreement as so
defined.

 

89

 

“Acquired Companies” means one or more Delaware limited
liability companies whose ownership interest will be acquired by Borrower
pursuant to the Verizon Acquisition on the Initial Funding Date and who will
own the assets subject to the Verizon Acquisition.

 

“Acquisition” means the acquisition, in a single transaction
or in a series of related transactions, of all or any substantial portion of
the assets of another Person, or at least a majority of the equity interests of
another person, in each case whether involving a merger or consolidation with
such other Person and whether for cash, property, services, assumption of
Indebtedness, securities or otherwise.

 

“Acquisition Approval Date” means the date upon which the
applicable Governmental Authorities have granted their approval of the Verizon
Acquisition and from which the Seller (as such term is defined in the Verizon
Purchase Agreement) is obligated to complete the Verizon Acquisition within
five (5) days pursuant to that certain proposed Final Judgment filed on October 30, 2008 in United States et al. v. Verizon
Communications Inc. and Alltel Corporation, Civil Action No. 08-1878,
in the United States District Court for the District of Columbia, as it may be
modified upon adoption and entry by such court.

 

“Act” means the Securities Exchange Act of
1934, as amended.

 

“Adjustment Date” means each date which is
the fifth Business Day after the receipt by Administrative Agent of each
Compliance Certificate and related quarterly financial statements delivered by
Borrower pursuant to Subsection 4.5(C) and, in the case a decrease in an
applicable margin is warranted, a written notice from Borrower to decrease such
margin.

 

“Administrative Agent” means CoBank in its
capacity as Administrative Agent for Lenders under this Agreement and each of
the other Loan Documents and any successor in such capacity appointed pursuant
to Subsection 8.2.

 

“Affiliate” means, (A) with respect to
Borrower or any of its Subsidiaries, any Person: (i) directly or
indirectly controlling, controlled by, or under common control with such
Person; (ii) directly or indirectly owning or holding 10% or more of any
equity interest in Borrower or any Subsidiary of Borrower; or (iii) 10% or
more of whose voting stock or other equity interest is directly or indirectly
owned or held by Borrower or any Subsidiary of Borrower, excluding for purposes
of this clause (A) Affiliates which are also Borrower, (B) with
respect to Administrative Agent and Lenders hereunder, any Person which
controls or is controlled by or is under common control with such Person and (C) with
respect to Affiliates of Administrative Agent, any Person which controls or is
controlled by or is under common control with such Person.  For purposes of this definition, “control”
(including with correlative meanings, the terms “controlling,” “controlled by”
and “under common control with”) means the possession directly or indirectly of
the power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities or by contract or
otherwise.

 

“Agreement” means this Amended and Restated
Credit Agreement (including all schedules and exhibits hereto), as amended,
modified, supplemented, extended and restated from time to time as permitted
herein.

 

90

 

“Applicable Law” means, in respect of any
Person, all provisions of constitutions, statutes, rules, regulations and
orders of governmental bodies or regulatory agencies applicable to such Person,
including the Licenses, the Communications Act, PUC Laws and all Environmental
Laws, and all orders, decisions, judgments and decrees of all courts and
arbitrators in proceedings or actions to which the Person in question is a
party or by which it is bound.

 

“Approved Fund” means any Fund that is administered or
managed by (A) a Lender, (B) an Affiliate of a Lender or (C) an
entity or an Affiliate of an entity that administers or manages a Lender.

 

“Arranger” means CoBank in its capacity as
Arranger for Lenders under this Agreement and each of the other Loan Documents
and any successor in such capacity appointed pursuant to Subsection 8.2.

 

“Asset Disposition” means the disposition,
whether by sale, lease, transfer, loss, damage, destruction, condemnation or
otherwise, by Borrower or any Subsidiary of Borrower of any of the
following:  (A) any of the capital
stock or the ownership interests of any of its Subsidiaries, or (B) any or
all of its assets, other than (i) bona fide sales of inventory to customers
for fair value in the ordinary course of business, (ii) dispositions of
obsolete equipment not used or useful in the business of Borrower or any of its
Subsidiaries, and (iii) sales of Cash Equivalents for fair value.

 

“Assignment and Assumption” means an agreement among
Administrative Agent, a Lender and such Lender’s assignee regarding their
respective rights and obligations with respect to assignments of the Loans, the
Loan Commitments, the Facilities and other interests under this Agreement and the
other Loan Documents in the form attached hereto as Exhibit 10.1(A).

 

“Available Revolver Loan Commitment” means,
at any time, the Revolver Loan Commitment, as it may have been reduced pursuant
to this Agreement, minus the sum of (A) aggregate principal balance
of all Revolver Loans plus (B) the aggregate Letter of Credit
Liability then outstanding hereunder.

 

“AWCC” means Allied Wireless Communications Corporation, a
Delaware corporation.

 

“Bankruptcy Code” means Title 11 of the
United States Code entitled “Bankruptcy,” as amended from time to time, or any
applicable bankruptcy, insolvency or other similar federal or state law now or
hereafter in effect and all rules and regulations promulgated thereunder.

 

“Base Rate” means a variable rate of
interest per annum equal, on any day, to the rate established by CoBank on the
first Business Day of each week as the higher of (i) 1.50% plus the
higher of (x) one-week LIBOR and one-month LIBOR; and (ii) the Prime
Rate.  For the purpose of this definition
of “Base Rate”, “LIBOR” shall mean the one week and/or one (1) month rate
(rounded upward to the nearest thousandth), as quoted by the British Bankers
Association at 11:00 a.m. London time and published by Bloomberg, on the
first Business Day of the week applicable to Borrower’s election of the Base
Rate.

 

91

 

“Base Rate Loans” means Loans (or portions
thereof as permitted hereunder) accruing interest at a rate determined by
reference to the Base Rate.

 

“Base Rate Margin” means the applicable
percent per annum determined in accordance with Subsection 1.2(B).

 

“BDC” means Bermuda Digital Communications Ltd., a Bermuda
entity.

 

“Business Day” means (A) for all
purposes other than as covered by clause (B) below, any day excluding
Saturday, Sunday and any day which is a legal holiday under the laws of the
States of Colorado, Georgia or Massachusetts or is a day on which banking
institutions located in such jurisdictions are closed or which the Federal
Reserve Banks are closed, and (ii) with respect to all notices,
determinations, fundings and payments in connection with LIBOR Loans, any day
that is a Business Day described in clause (A) above and that is also a
day for trading by and between banks in U.S. dollar deposits in the applicable
interbank LIBOR market.

 

“Calculation Period” means each period
commencing on each Adjustment Date and ending on the day preceding each
subsequent Adjustment Date.

 

“Capital Lease” means any lease of real or
personal property which is required to be capitalized under GAAP or which is
treated as an operating lease under regulations applicable to Borrower and its
Subsidiaries but which otherwise would be required to be capitalized under
GAAP.

 

“Cash Equivalents” means:  (A) marketable direct obligations issued
or unconditionally guarantied by the United States Government or issued by any
agency thereof and backed by the full faith and credit of the United States or
if not so backed, then having a rating of at least A+ from Standard &
Poor’s Rating Service and at least A1 from Moody’s Investors Service, Inc.,
in each case maturing within two (2) years from the date of acquisition
thereof; (B) with the written consent of the Requisite Lenders which is
hereby given, until such time as such consent is revoked, commercial paper
maturing no more than 270 days from the date issued and, at the time of
acquisition, having a rating of at least A-1 from Standard & Poor’s
Rating Service or at least P-1 from Moody’s Investors Service, Inc.; (C) certificates
of deposit or bankers’ acceptances maturing within one (1) year from the
date of issuance thereof issued by, or overnight reverse repurchase agreements
from, any commercial bank organized under the laws of the United States of
America or any state thereof or the District of Columbia having combined
capital and surplus of not less than $500,000,000; (D) time deposits
maturing no more than 30 days from the date of creation thereof with commercial
banks having membership in the Federal Deposit Insurance Corporation in amounts
at any one such institution not exceeding the lesser of $250,000 or the maximum
amount of insurance applicable to the aggregate amount of the Loan Party’s
deposits at such institution; and (E) Investments in CoBank or other
Investments satisfactory to Administrative Agent.

 

“Change of Control” means: (A) a report
on Schedule 13D shall be filed with the Securities and Exchange Commission
pursuant to Section 13(d) of the Act disclosing that any person other
than Borrower or any employee benefit plan sponsored by Borrower, is the
beneficial owner (as the term is defined in Rule 13d-3 under the Act)
directly or indirectly, of 

 

92

 

30%
or more of the total voting power represented by Borrower’s then outstanding
voting securities (calculated as provided in paragraph (d) of Rule 13d-3
under the Act in the case of rights to acquire voting securities); or (B) any
person, other than Borrower or any employee benefit plan sponsored by Borrower,
shall purchase shares pursuant to a tender offer or exchange offer to acquire
any voting securities of Borrower (or securities convertible into such voting
securities) for cash, securities or any other consideration, provided that
after consummation of the offer, the person in question is the beneficial owner
directly or indirectly, of 30% or more of the total voting power represented by
Borrower’s then outstanding voting securities (all as calculated under clause
(A)); or (C) the occurrence of (i) any consolidation or merger of
Borrower in which Borrower is not the continuing or surviving corporation
(other than a merger of Borrower in which holders of more than 51% of the
outstanding common shares of Borrower immediately prior to the merger have the
same proportionate ownership of common shares of the surviving corporation
immediately after the merger as immediately before or a merger effected
pursuant to Section 251(g) of the Delaware General Corporation Law),
or pursuant to which common shares of Borrower will be converted into cash,
securities or other property, or (ii) any sale, lease exchange or other
transfer (in one transaction or a series of related transactions) of all or
substantially all the assets of Borrower; or (D) there shall have been a
change in the composition of the Board of Directors of Borrower at any time
during any consecutive 24 month period such that “continuing directors” cease
for any reason to constitute at least a majority of the Board.  For purposes of this clause, “continuing
directors” means those members of the Board who either were directors at the
beginning of such consecutive 24 month period or were elected by or on the
nomination or recommendation of at least a majority of the then-existing “continuing
directors.”  Notwithstanding the foregoing,
no “Change of Control” shall have occurred or be deemed to be continuing,
during such time as Cornelius B. Prior, Jr., his spouse or his lineal
descendents, directly or in trust for their benefit, shall have voting control
of (1) 50% or more of the outstanding shares entitled to vote, or (2) 35%
or more of the outstanding shares entitled to vote at a time when no other
shareholders described in (A) or (B) above owns in the aggregate 35%
or more of the outstanding shares entitled to vote.

 

“Choice” means Choice Communications, LLC, a United States
Virgin Islands limited liability company.

 

“Closing Date” means September 10,
2008.

 

“Collateral” means, collectively:  (A) all “Collateral” as defined in the
Security Documents; (B) all real property and interests in real property
mortgaged pursuant to the Security Documents; and (C) any property or
interest provided in addition to or in substitution for any of the foregoing.

 

“Collateral Contract Assignments” means,
collectively, all collateral assignments of Material Contracts, in form and
content approved by Administrative Agent, executed by a Loan Party or any of
its Subsidiaries in favor of Administrative Agent, for the benefit of itself
and Lenders, as required pursuant to Subsection 2.8, as amended, modified,
supplemented, extended and restated from time to time.

 

93

 

“Communications
Act” means the Communications Act of 1934, as amended and any
similar or successor federal statute, and the rules and regulations of the
FCC thereunder, all as the same may be in effect from time to time.

 

“Communications
System” means a system or business providing voice, data or video
transport, connection or monitoring services, through any means or medium, and
the provision of marketing, management, technical and financial (including call
rating) or other services to companies providing such transport, connection or
monitoring services or constructing, creating, developing or marketing
communications-related network equipment, software and other devices for use in
the business described above.

 

“Contingent Obligation,” as applied to any
Person, means any direct or indirect liability of that Person:  (A) with respect to any Indebtedness,
lease, dividend or other obligation of another Person if the primary purpose or
intent of the Person incurring such liability, or the primary effect thereof,
is to provide assurance to the obligee of such liability that such liability
will be paid, performed or discharged, or that the holders of such liability
will be protected (in whole or in part) against loss with respect thereto; (B) with
respect to any letter of credit issued for the account of that Person or as to
which that Person is otherwise liable for reimbursement of drawings; or (C) under
any foreign exchange contract, currency swap agreement, interest rate swap
agreement or other similar agreement or arrangement designed to alter the risks
of that Person arising from fluctuations in currency values or interest rates.  Contingent Obligations shall also include (i) the
direct or indirect guaranty, endorsement (other than for collection or deposit
in the ordinary course of business), co-making, discounting with recourse or
sale with recourse by such Person of the obligation of another, (ii) the
obligation to make take-or-pay or similar payments if required regardless of
nonperformance by any other party or parties to an agreement, and (iii) any
liability of such Person for the obligations of another through any agreement
to purchase, repurchase or otherwise acquire such obligation or any property
constituting security therefor, to provide funds for the payment or discharge
of such obligation or to maintain the solvency, financial condition or any
balance sheet item or level of income of another.  The amount of any Contingent Obligation shall
be equal to the amount of the obligation so guaranteed or otherwise supported
or, if not a fixed and determined amount, the maximum amount so guaranteed.

 

“Default” means a condition or event that, after
notice or lapse of time or both, would constitute an Event of Default if that
condition or event were not cured or removed within any applicable grace or
cure period.

 

“Defaulting Lender” means, at any time, (A) a Lender
that has failed to fund any portion of the Loans required to be funded by it
hereunder within one (1) Business Day of the date required to be funded by
it hereunder, has failed to make a payment to Issuing Lender in respect of a
drawing under a Letter of Credit within one (1) Business Day of the date
such payment is required to be made by it hereunder, or has otherwise
failed to pay over to Administrative Agent or any other Lender any other amount
(other than a de minimis amount) required to be paid by it hereunder within one
(1) Business Day of the date when due, unless the subject of a good faith
dispute (each a “funding obligation”), or (B) a Lender that has notified
Administrative Agent in writing, or has stated publicly, that it will not
comply with any such funding obligation hereunder or has defaulted on its
funding obligations under any other loan agreement, credit 

 

94

 

agreement
or other financing agreement (in each case, unless the subject of a good faith
dispute), (C) upon the agreement of Administrative Agent and Borrower,
each made in its sole discretion, a Lender that has, for a period of three (3) or
more Business Days commencing on the date on which Administrative Agent
confirms that such Lender has received a written request from Administrative
Agent, failed to confirm in writing to Administrative Agent that it will comply
with its funding obligations hereunder unless the subject of a good faith
dispute (it being agreed that such written request from Administrative Agent shall
include the name and date of this Agreement, the names of Borrower and
Administrative Agent, the reply deadline, and the contact details (including
phone number) for the Person to whom the reply must be sent), or (D) a
Lender with respect to which a Lender Insolvency Event has occurred and is
continuing.

 

“Domestic Subsidiary” means any Subsidiary that is organized
and existing under the laws of the United States or any
state, commonwealth or territory thereof or under the laws of the District
of Columbia.

 

“EBITDA”
means (A)  the result of (i) the
sum without duplication of (1) net income or deficit, as the case may be,
excluding gains or losses on the sale of assets and extraordinary
(non-recurring, one-time) gains and losses, (2) total interest expense (including
non-cash interest), (3) depreciation and amortization expense, (4) income
taxes, (5) certain one time items and/or adjustments associated with any
acquisition to be agreed upon by Administrative Agent in its reasonable
discretion, (6) losses from the disposal or impairment of property and
equipment and other long-term assets, including, goodwill, intangibles and
spectrum, (7) cash dividends from unconsolidated subsidiaries and joint
ventures, (8) any other non-cash expenses, charges, losses, or infrequent,
unusual or extraordinary items reducing net income for such period to the
extent such non-cash items do not represent a cash item in any future period,
and (9) any transaction costs and similar amounts that would be required
to be expensed as a result of the application of FAS No. 141(R) (whether
or not applicable thereto), minus (ii) to the extent included in
calculating net income or deficit, the sum of (1) interest income, (2) non-cash
dividends and patronage income, (3) equity in earnings from unconsolidated
subsidiaries and joint ventures, and (4) any aggregate net gains arising
from the sale, exchange, or other disposition of fixed assets, investments,
securities, intangibles, and spectrum, and (B) will be measured for the
then most recently completed four (4) fiscal quarters, adjusted to give
effect to any acquisition, sale or other disposition, directly or through a
subsidiary, of any business (or any portion thereof) during the period of
calculation as if such acquisition, sale or other disposition occurred on the
first day of such period of calculation. 
For the purposes of calculating EBITDA for any period in connection with
any determination of the Total Leverage Ratio or any other financial ratio, if
at any time during such period Borrower or any Subsidiary shall have made any
Material Acquisition or Material Disposition, the EBITDA for such period shall
be calculated on a Pro forma Basis to give effect to such Material Acquisition
or Material Disposition.  As used in this
definition, “Material Acquisition” means any acquisition of property or series
of related acquisitions of property that (a) constitutes assets comprising
all or substantially all of an operating unit of a business or constitutes all
or substantially all of the common stock of a Person and (b) involves the
payment of consideration by Borrower and its Subsidiaries in excess of
$1,000,000; and “Material Disposition” means any disposition of property or
series of related dispositions of property that yields gross proceeds to
Borrower and its Subsidiaries in excess of $1,000,000.

 

95

 

“Environmental Laws” means all applicable
federal, state or local laws, statutes, rules, regulations or ordinances,
codes, common law, consent agreements, orders, decrees, judgments or
injunctions issued, promulgated, approved or entered thereunder relating to
public health, safety or the pollution or protection of the environment,
including those relating to releases, discharges, emissions, spills, leaching,
or disposals of hazardous substances (including petroleum, crude oil or any
fraction or derivative thereof, or other hydrocarbons) to air, water, land or
ground water, to the withdrawal or use of ground water, to the use, handling or
disposal of polychlorinated biphenyls, asbestos or urea formaldehyde, to the
treatment, storage, disposal or management of hazardous substances (including
petroleum, crude oil or any fraction or derivative thereof, or other
hydrocarbons), pollutants or contaminants, to exposure to toxic, hazardous or
other controlled, prohibited, or regulated substances, including, any such
provisions under the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended (42 U.S.C. § 9601 et  seq.), and
the Resource Conservation and Recovery Act of 1976, as amended (42 U.S.C. §
6901 et  seq.).

 

“Equity” means the result
of consolidated total assets minus consolidated total liabilities.

 

“Equity to Assets Ratio” means the ratio
derived by dividing (A) Equity by (B) consolidated
total assets.

 

“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended from time to time.

 

“ERISA Affiliate” means any trade or
business (whether or not incorporated) which is a member of a controlled group
or under common control with any Loan Party within the meaning of Sections 414(b) or
(c) of the IRC (and Sections 414(m) and (o) of the IRC for
purposes of provisions relating to Section 412 of the IRC).

 

“ERISA Event” means, with respect to any
Loan Party, any ERISA Affiliate or any Pension Plan, the occurrence of any of
the following: (A) a Reportable Event; (B) a withdrawal by a
substantial employer (as defined in Section 4001(a)(12) of ERISA) subject
to Section 4063 of ERISA; (C) a cessation of operations which is
treated as a withdrawal under Section 4062(e) of ERISA; (D) a
complete or partial withdrawal under Section 4203 or 4205 of ERISA from a
Multi-employer Plan; (E) a notification that a Multi-employer Plan is in
reorganization under Section 4242 of ERISA; (F) the filing of a
notice of intent to terminate a Pension Plan under 4041 of ERISA; (G) the
treatment of an amendment of a Pension Plan as a termination under 4041 of
ERISA; (H) the termination of a Multi-employer Plan under Section 4041A
of ERISA; (I) the commencement of proceedings by the PBGC to terminate a
Pension Plan under 4042 of ERISA; (J) an event or condition which could
reasonably be expected to constitute grounds under Section 4042 of ERISA
for the termination of, or the appointment of a trustee to administer, a
Pension Plan; or (K) the imposition of any liability under Title IV of
ERISA, other than PBGC premiums due but not delinquent under Section 4007
of ERISA.

 

“Excluded Subsidiary” means (a) any Subsidiary that does
not have total assets (including Investments) or annual revenues (on a
consolidated basis) in excess of $10,000,000 individually or in the aggregate
with all other Subsidiaries excluded pursuant to this clause (a) (provided
that for purposes of this clause (a), the total assets and annual revenues of
any 

 

96

 

Subsidiary
that is not a wholly owned Subsidiary shall be deemed to be the percentage of
such assets or annual revenues, as the case may be, corresponding to the
economic ownership of the Loan Parties, directly or indirectly, in such
Subsidiary), (b) any other Subsidiary with respect to which Administrative
Agent, in its sole discretion, in consultation with Borrower, determines the
burden or cost or other tax consequences (including any material adverse tax
consequences) of becoming a Guarantor shall be excessive in view of the
benefits obtained by the Lenders therefrom, (c) any Foreign Subsidiary, (d) any
Foreign Subsidiary Holding Company, (e) and Domestic Subsidiary that is a
Subsidiary of a Foreign Subsidiary, and (f) any Permitted RTPark
Subsidiary.

 

“Excluded Taxes” means (A) any taxes imposed on (or
measured by) net income (including branch profits taxes) of a Lender or
Administrative Agent, or any franchise or similar taxes imposed in lieu
thereof, by any Governmental Authority or taxing authority by the jurisdiction
under the laws of which such Lender or Administrative Agent is organized or any
jurisdiction in which such Lender or Administrative Agent is a resident, has an
office, conducts business or has another connection and (B) in the case of
a Foreign Lender, any withholding tax that is imposed on amounts payable to
such Foreign Lender (i) under law in effect at the time such Foreign
Lender becomes a party to this Agreement (or designates a new office), except
to the extent that such Foreign Lender (or its assignor, if any) was entitled,
at the time of designation of a new office (or assignment), to receive
additional amounts from Borrower with respect to such withholding tax pursuant
to Subsection 1.13(A) or (ii) that is attributable to such Foreign
Lender’s failure to comply with Subsection 1.13(B).

 

“Facility” or “Facilities” means one or more of the Revolver Facility and the
Term Loan Facilities.

 

“FCC” means the Federal Communications
Commission, or any other similar or successor agency of the federal government
administering the Communications Act.

 

“Fixed Charges” means the sum of (A) cash interest
expense, (B) scheduled principal payments to be made on Indebtedness, (C) capital
expenditures (excluding (i) capital expenditures acquired pursuant to any
Capital Lease, (ii) capital expenditures funded through any cash equity
investment made in Borrower, (iii) Permitted Acquisitions and Investments
that are classified as capital expenditures, (iv) capital expenditures
constituting any reinvestment of the Net Proceeds of any Asset Disposition to
the extent such reinvestment is permitted under Subsections 1.7(B) and
(C), and (v) capital expenditures constituting the purchase price of
equipment that is purchased substantially contemporaneously with the trade in
of existing equipment to the extent that the gross amount of such purchase
price is reduced by a credit granted by the seller of such equipment for the
equipment being traded in at or about such time), (D) cash income taxes,
and (E) any cash dividends and distributions, in each case, measured for
the then most recently completed four fiscal quarters.

 

“Fixed Charge Coverage Ratio” means, as of the date of
calculation, the ratio derived by dividing (A) EBITDA by (B) Fixed
Charges.

 

“Foreign Subsidiary” means any Subsidiary of
Borrower that is a “controlled foreign corporation” under Section 956 of
the IRC.

 

97

 

“Foreign Subsidiary Holding Company” means any direct or indirect
Domestic Subsidiary that is treated as a disregarded entity for federal income
tax purposes and substantially all of the assets of which include the Equity
Interests of one or more Foreign Subsidiaries.

 

“Fund” means any Person (other than a
natural person) that is (or will be) engaged in making, purchasing, holding or
otherwise investing in commercial loans and similar extensions of credit in the
ordinary course.

 

“Funding Default” means a failure by a Lender to comply with
its obligations under this Agreement to make a Loan or make a payment to
Issuing Lender in respect of a drawing under a Letter of Credit.

 

“GAAP” means generally accepted accounting
principles as set forth in statements from Auditing Standards No. 69 as
amended, entitled “The Meaning of ‘Present Fairly in Conformance with Generally
Accepted Accounting Principles in the Independent Auditors Reports’” issued by
the Auditing Standards Board of the American Institute of Certified Public Accountants
and statements and pronouncements of the Financial Accounting Standards Board
that are applicable to the circumstances as of the date of determination.

 

“Governmental Approvals” means all
authorizations, consents, approvals, licenses and exemptions of, registrations
and filings with, and reports to, all Governmental Authorities, including all
Licenses.

 

“Governmental Authority” means any nation
(including, Guyana and Bermuda), province, or state or any political
subdivision of any of the foregoing, and any government or any Person
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government, and any corporation or other entity
exercising such functions owned or controlled, through stock or capital
ownership or otherwise, by any of the foregoing, including the FCC and any PUC.

 

“GTT” means Guyana Telephone and Telegraph Company Limited, a
Guyana entity.

 

“Hedge Agreements” means interest rate, currency or
cross-currency rate swap agreements, and other similar agreements entered into
by Borrower or any other Loan Party in the ordinary course of business (and not
for speculative purposes) for the principal purpose of protecting Borrower or
any other Loan Party against fluctuations in interest rates or currency
exchange rates.

 

“Indebtedness” as applied to any Person,
means without duplication:  (A) all
indebtedness for borrowed money; (B) that portion of obligations with
respect to Capital Leases or other capitalized agreements that is properly
classified as a liability on a balance sheet in conformity with GAAP; (C) notes
payable and drafts accepted representing extensions of credit whether or not
representing obligations for borrowed money; (D) any obligation owed for
all or any part of the deferred purchase price of property or services, except
trade payables arising in the ordinary course of business and outstanding not
more than 90 days after such obligation is due (unless thereafter contested in
good faith); (E) all obligations created or arising under any 

 

98

 

conditional
sale or other title retention agreement; (F) all indebtedness secured by
any Lien on any property or asset owned or held by that Person regardless of
whether the indebtedness secured thereby shall have been assumed by that Person
or is nonrecourse to the credit of that Person, but only to the extent of the
fair value of such property or asset; (G) all obligations of such Person
under take-or-pay or similar arrangements or under commodities agreements; (H) the
net termination obligations of such Person under any Hedge Agreement,
calculated as of any date as if such agreement or arrangement were terminated
as of such date; (I) the maximum amount of all standby letters of credit
issued or bankers’ acceptance facilities created for the account of such Person
and, without duplication, all drafts drawn thereunder (to the extent
unreimbursed); (J) the principal balance outstanding under any synthetic
lease, tax retention operating lease, off-balance sheet loan or similar
off-balance sheet financing product; (K) with respect to the Indebtedness
of any partnership or unincorporated joint venture in which such Person is a
general partner or joint venturer, the least of (i) such Indebtedness, (ii) such
Person’s actual liability for such Indebtedness or (iii) such Person’s
investment in such partnership or joint venture; (L) obligations with
respect to principal under Contingent Obligations for the repayment of money or
the deferred purchase price of property, whether or not then due and payable
(calculated as the maximum amount of such principal); (M) obligations with
respect to stated amounts of Letters of Credit; and (N) obligations under
partnership, organizational or other agreements to fund capital contributions
or other equity calls with respect to any Person or investment, or to redeem,
repurchase or otherwise make payments in respect to capital stock or other
securities of such Person.

 

“Initial
Funding Date” means the date on which all conditions precedent in
Subsections 7.2 and 7.3 are satisfied or waived in accordance with Subsection
9.2.

 

“Interest
Period” shall mean any LIBOR Interest Period.

 

“Investment” means (A) any direct or indirect purchase or
other acquisition by any Loan Party or any of their respective Subsidiaries of
any beneficial interest in, including stock, partnership interest or other
equity securities of, any other Person; and (B) any direct or indirect
loan, advance, transfer, guarantee, assumption of liability or other obligation
or liability, or capital contribution by any Loan Party or any of their
respective Subsidiaries to any other Person, including all indebtedness and
accounts receivable from that other Person that are not current assets or did
not arise from sales to that other Person in the ordinary course of
business.  The amount of any Investment
shall be the original cost of such Investment plus the cost of all
additions thereto, without any adjustments for increases or decreases in value,
or write-ups, write-downs or write-offs with respect to such Investment.

 

“ION HoldCo” means ION HoldCo, LLC, a Delaware limited
liability company.

 

“IRC” means the Internal Revenue Code of
1986, as amended from time to time, and all rules and regulations
promulgated thereunder.

 

“Issuing Lender” means each
Person so designated in the introductory paragraph of this Agreement, or any
other Lender designated from time to time by Administrative Agent with the
approval of Borrower, in such Lender’s capacity as an issuer of Letters of
Credit hereunder.

 

99

 

“Joinder Agreement”
means a Joinder Agreement substantially in the form of Exhibit 2.12
and delivered by an additional Subsidiary of any Loan Party in accordance with
the provisions of Subsection 2.12.

 

“Joint Venture”
means a Person in which any Loan Party owns an Equity Interest, provided that
such Person is not wholly owned, directly or indirectly, by a Loan Party.

 

“Lender” or “Lenders” means
one or more of the banks or other financial institutions party hereto from time
to time and their successors and permitted assigns pursuant to Subsection 8.1.

 

“Lender Insolvency
Event”  means that (A) a
Lender or its Parent Company is insolvent, or is generally unable to pay its
debts as they become due, or admits in writing its inability to pay its debts
as they become due, or makes a general assignment for the benefit of its
creditors, or (B) such Lender or its Parent Company is the subject of a
bankruptcy, insolvency, reorganization, liquidation or similar proceeding, or a
receiver, trustee, conservator, intervenor or sequestrator or the like has been
appointed for such Lender or its Parent Company, or such Lender or its Parent
Company has taken any action in furtherance of or indicating its consent to or
acquiescence in any such proceeding or appointment.  A Lender Insolvency Event shall not be deemed
to have occurred solely by virtue of the ownership or acquisition of any Equity
Interest in any Lender or any Parent Company by a Governmental Authority or any
instrumentality thereof.

 

“Letter of Credit
Liability” means, as to each Letter of Credit, all
reimbursement obligations of Borrower to the issuer of the Letter of Credit
consisting of (A) the amount available to be drawn or which may become
available to be drawn; (B) all amounts which have been paid and made available
by the Issuing Lender to the extent not reimbursed by Borrower, whether by the
making of a Revolver Loan or otherwise; and (C) all accrued and unpaid
interest, fees and expenses with respect thereto.  In the case of any Letter of Credit that is
issued in a currency other than United Stated Dollars, the corresponding Letter
of Credit Liability shall be determined in United States Dollars based on the
currency exchange rate from time to time applicable to the issuer of such
Letter of Credit.

 

“LIBOR” means for each
applicable Interest Period, a fixed annual rate equal to: (A) the rate of
interest determined by Administrative Agent at which deposits in U.S. dollars
for the relevant LIBOR Interest Period are offered based on information
presented by the Reuters Screen LIBOR01 page as quoted by the British
Bankers Association as of 11:00 a.m. (London time) on the day which is two
(2) Business Days prior to the first day of such Interest Period, provided,
that in the event British Bankers Association ceases to provide such quotations
(as determined by Administrative Agent), then Administrative Agent will notify
Borrower and Administrative Agent and Borrower will agree upon a substitute
basis for obtaining such quotations, divided by (B) a number equal
to 1.0 minus the aggregate (but without duplication) of the rates
(expressed as a decimal fraction) of reserve requirements in effect on the day
which is two (2) Business Days prior to the beginning of such Interest
Period for Eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of such Board) which are required to be maintained
by a member bank of the Federal Reserve System (including, basic, supplemental,
marginal and emergency reserves under any regulations of the Board of Governors

 

100

 

of
the Federal Reserve System or other Governmental Authority having jurisdiction
with respect thereto, as now and from time to time in effect); such rate to be
rounded upward to the next whole multiple of 0.01 percent.

 

“LIBOR Loans” means Loans (or portions
thereof as permitted hereunder) accruing interest at rates determined by
reference to the LIBOR.

 

“LIBOR Margin”
means the applicable percent per annum determined in accordance with Subsection
1.2(B).

 

“Licenses” means any cable television
franchise or any landline telephone, cellular telephone, microwave, personal
communications or other telecommunications or similar license, authorization,
registration, certificate, waiver, certificate of compliance, franchise,
approval, material filing, exemption, order, or permit, whether for the
acquisition, construction or operation of any Communications System, or to
otherwise provide the services related to any Communications System, granted or
issued by the FCC or any applicable PUC or other Governmental Authority
(including, in Guyana and Bermuda).

 

“Lien” means any lien, mortgage, pledge,
security interest, charge or encumbrance of any kind, whether voluntary or
involuntary (including any conditional sale or other title retention agreement
and any lease in the nature thereof), and any agreement to give any lien,
mortgage, pledge, security interest, charge or encumbrance.

 

“Loan” or “Loans”
means an advance or advances under any of the Facilities.

 

“Loan Commitment” or “Loan Commitments” means one or more of the
Revolver Loan Commitment, the Term Loan B Commitment and the Incremental Term
Loan Commitments, if and when applicable, as any such commitment is reduced
from time to time as provided in this Agreement, and, in the case of any
Incremental Term Loan Commitment, as provided in the amendment or supplement to
this Agreement establishing such Incremental Term Loan Facility.

 

“Loan Documents” means, collectively, this
Agreement, the Revolver Notes, the Term Loan Notes, the Security Documents, the
Post-Closing Letter, any guaranty and all other instruments, documents and
agreements executed and delivered concurrently herewith or at any time
hereafter to or for the benefit of Administrative Agent or the Lenders in
connection with the Loans and other transactions contemplated by this
Agreement, all as amended, modified, supplemented, extended or restated from
time to time.

 

“Material Adverse Effect” means (A) a
material adverse effect upon the business, result of operations, or financial
condition of the Loan Parties or their respective Subsidiaries, taken as a
whole, or (B) the impairment of any Liens in favor of Administrative
Agent, of the ability of the Loan Parties, taken as a whole, to perform their
obligations under the Loan Documents or of Administrative Agent or any Lender
to enforce any material provision of any Loan Document or collect any of the
Obligations.  In determining whether any
individual event could reasonably be expected to have a Material Adverse
Effect, notwithstanding that such event does not of itself have such effect, a
Material Adverse Effect shall be deemed to have occurred if the cumulative 

 

101

 

effect
of such event and all other then existing events could reasonably be expected
to have a Material Adverse Effect.

 

“Material Contracts” means (A) any
contract or any other agreement, written or oral, of any Loan Party or any of
their respective Subsidiaries involving monetary liability of or to any such
Person in an aggregate amount in excess of $1,000,000  per annum and (B) any other contract or agreement,
written or oral, of any Loan Party or any of its respective Subsidiaries the
failure to comply with which could reasonably be expected to have a Material
Adverse Effect.

 

“Materially Adverse” means materially adverse and, to the
extent that the applicable unsatisfied condition precedents or amendments,
modifications, changes or consents are quantifiable, the same will be deemed to
be “Materially Adverse” if (i) they constitute an increase in the purchase
price under the Verizon Purchase Agreement of more than 10% or (ii) they
have a pro forma impact on Borrower’s projected EBITDA for the Acquired
Companies in the aggregate of more than 10%.

 

“Multi-employer
Plan” means a Multi-employer plan as defined in Section 4001(a)(3) of
ERISA to which any Loan Party or any ERISA Affiliate makes, is making, made, or
was at any time during the current year or the immediately preceding six (6) years
obligated to make contributions.

 

“Net Proceeds” means cash
proceeds received by Borrower or any Subsidiary of Borrower from any Asset
Disposition, debt or equity issuance (including insurance proceeds, awards of
condemnation, and payments under notes or other debt securities received in
connection with any Asset Disposition), net of (A) the reasonable costs of
such sale, lease, transfer, issuance or other disposition (including taxes
attributable to such sale, lease, transfer or issuance) and (B) amounts
applied to repayment of permitted Indebtedness (other than the Obligations)
secured by a Lien on the asset or property disposed and (C) for
Subsidiaries not wholly-owned by a Loan Party, the percentage equal to the
ownership interests of Persons other than such Loan Party (by way of example,
if a Loan Party owns a Subsidiary 95%, who in turn owns another Subsidiary 80%,
and an Asset Disposition occurs at the other Subsidiary, only 76% (95% of 80%)
of the proceeds thereof that would otherwise have constituted Net Proceeds will
constitute Net Proceeds).

 

“Newco Parent” means Adams Divesture Parent, LLC, a Delaware limited
liability company.

 

“Note” or “Notes”
means one or more of the Revolver Notes, the Term Loan Notes and any notes
evidencing any Incremental Term Loan Facility as provided in the amendment or
supplement to this Agreement establishing such Incremental Term Loan Facility.

 

“NTIA” means the National Telecommunications and Information
Administration or other agency of the United Stated of America succeeding to it
powers.

 

“Obligations” means all obligations,
liabilities and indebtedness of every nature of Borrower and all other Loan
Parties under the Loan Documents from time to time owed to Administrative
Agent, any Lender or any Indemnitee, including, the principal amount of all 

 

102

 

debts,
claims and indebtedness, accrued and unpaid interest and all indemnities, fees,
costs and expenses, whether primary, secondary, direct, contingent, fixed or
otherwise, heretofore, now or from time to time hereafter owing, due or
payable, or any combination thereof, whether before or after the filing of a
proceeding under the Bankruptcy Code or any Other Debtor Relief Law (whether or
not allowed in such proceeding) by or against any Loan Party or any of its
respective Subsidiaries.

 

“Parent Company” means, with respect to a Lender, the bank
holding company (as defined in Regulation Y of the Board of Governors of the
Federal Reserve System, as in effect from time to time), if any, of such
Lender, and/or any Person owning, beneficially or of record, directly or
indirectly, a majority of the shares of such Lender.

 

“Partnerships” means, collectively, Ohio RSA 2 Limited Partnership, Ohio RSA
#3 Limited Partnership, Ohio RSA 5 Limited Partnership, Ohio RSA 6 Limited
Partnership, and Georgia RSA #8 Partnership.

 

“PBGC” means the Pension Benefit Guaranty
Corporation or any Person succeeding to the functions thereof.

 

“Pension Plan” means a pension plan (as
defined in Section 3(2) of ERISA) subject to Title IV of ERISA which
any Loan Party or an ERISA Affiliate sponsors, maintains, or to which it makes,
is making, or is obligated to make contributions or, in the case of a
Multi-employer Plan, has made contributions at any time during the current year
or the immediately preceding six (6) plan years.

 

“Permitted Acquisition and Investment” means any Investment
(or commitment to make any Investment), other than the Verizon Acquisition,
including by means of an Acquisition, by any Loan Party or any Subsidiary of a
Loan Party in another Person (but excluding any Investment (i) by BDC or
any of its Subsidiaries in GTT, any of GTT’s Subsidiaries or any Stimulus
Recipient Subsidiary and (ii) by GTT or any of its Subsidiaries in BDC,
any of BDC’s Subsidiaries or any Stimulus Recipient Subsidiary), provided,
that:

 

(A) if such Investment constitutes the
extension of Indebtedness by a Loan Party, such Investment is evidenced by a
written promissory note in form and substance reasonably acceptable to
Administrative Agent, and such note is collaterally assigned and delivered to
Administrative Agent, provided, however, that such collateral
assignment and delivery shall only be required if the aggregate amount of all
such unassigned and undelivered notes together with the other instruments
described in Section 4.5 of the Pledge and Security Agreement exceeds
$1,500,000 in the aggregate at any one time;

 

(B) such Investment
and all transactions related thereto shall be consummated in accordance with
Applicable Law in all material respects;

 

(C) after
giving effect to such Investment, no Default or Event of Default shall have
occurred and be continuing;

 

(D) the
Investment is related to the telecommunications industry;

 

103

 

(E) the
aggregate consideration (including in the calculation thereof the amount of any
assumed Indebtedness) of all Permitted Acquisitions and Investments after the
Amendment Date (other than Investments by Subsidiaries that are not Loan
Parties in Borrower or any of its Subsidiaries other than Stimulus Recipient
Subsidiaries), shall not exceed the sum of (i) $140,000,000 plus (ii) the
Net Proceeds of equity issuances by Borrower made after the earlier of the
Initial Funding Date and the Term Loan B Availability Expiration Date in the
amount of up to but not to exceed $100,000,000, which Net Proceeds have not
been used to cure a Default or Event of Default under Subsection 4.1 (for
purposes of this calculation, the costs for Investments in any Person organized
or principally operated outside of the United States of America or any
territory of the United States of America will be multiplied by two (2),
unless such Investment is made with the Net Proceeds of equity issuances of Borrower
pursuant to the preceding clause (ii)); provided  however, in case of any
Permitted Acquisition and Investment made with the Net Proceeds of an equity
issuance of Borrower pursuant to the preceding clause (ii), the cost (including in
the calculation thereof the amount of any assumed Indebtedness) of such
Permitted Acquisition and Investment does not exceed five (5) multiplied by
the EBITDA (determined in accordance with the definition of Pro forma Basis) of
the Person in which such Investment is being made (or, if only a portion of the
equity of the Person is being acquired, five (5) multiplied by the
EBITDA of such Person multiplied by the percentage acquired).

 

(F) Borrower
shall be in compliance on a Pro forma Basis after giving effect to such Permitted
Acquisition and Investment (including any Indebtedness assumed or permitted to
exist or incurred pursuant to Subsection 3.1(F)) with the covenants set forth
in Subsections 4.1, 4.2, 4.3 and 4.4 for the most recently ended test period
under such Subsections as if such Permitted Acquisition and Investment had
occurred on the first day of such test period.

 

“Permitted Encumbrances” means the
following:

 

(A)          Liens for taxes, assessments or other
governmental charges not yet due and payable or Liens for taxes, assessments or
other governmental charges due and payable if the same are being diligently
contested in good faith and by appropriate proceedings and then only if and to
the extent that adequate reserves therefor are maintained on the books of the
Loan Parties and their respective Subsidiaries, as applicable, in accordance
with GAAP;

 

(B)           statutory Liens of landlords,
carriers, warehousemen, mechanics, materialmen and other similar liens imposed
by law, which are incurred in the ordinary course of business for sums not more
than 60 days delinquent or which are being diligently contested in good faith;
provided that a reserve or other appropriate provision shall have been made
therefor and in any event the aggregate amount of liabilities secured by such Liens
is less than $100,000;

 

(C)           Liens incurred or deposits made in
the ordinary course of business in connection with workers’ compensation,
unemployment insurance and other types of social security (other than any Lien
imposed by the Employee Retirement Income Security Act of 1974 or any rule or
regulation promulgated thereunder), or to secure the performance of tenders,
statutory obligations, surety, stay, customs and appeal bonds, bids, leases,
government contracts, trade contracts, performance and return of money bonds
and other similar obligations (exclusive of obligations for the payment of
borrowed money) in the amount and to the extent permitted by Subsection 3.4;

 

104

 

(D)          deposits, in an aggregate amount not
to exceed $100,000, made in the ordinary course of business to secure liability
to insurance carriers;

 

(E)           any attachment or judgment Lien
which, individually or when aggregated, does not constitute an Event of Default
under Subsection 6.1(I) (whether individually or when aggregated with
other such Liens);

 

(F)           easements, rights of way,
restrictions and other similar charges or encumbrances not interfering in any
material respect with the ordinary conduct of the business of any Loan Party or
any of their respective Subsidiaries or materially adversely affecting the
value of any Collateral;

 

(G)           Liens in favor of Administrative
Agent, for the benefit of itself and Lenders;

 

(H)          Liens in favor of CoBank as set forth
in Subsection 2.7;

 

(I)            Liens securing purchase money
security agreements and Capital Leases permitted under Subsection 3.1(K),
provided that such Liens do not encumber any property other than the items
purchased with the proceeds of such Indebtedness or leased pursuant to such
Indebtedness (and the proceeds of such property), such Liens do not secure any
amounts other than amounts necessary to purchase or lease such items;

 

(J)            Liens (i) existing on the
assets of any Person that becomes a Subsidiary (or is a Subsidiary that
survives a merger with such Person), or existing on assets acquired, pursuant
to the Verizon Acquisition or a Permitted Acquisition and Investment to the
extent the Liens on such assets secure Indebtedness permitted by Subsection 3.1(F) or
other obligations permitted by this Agreement, or (ii) existing on the
assets acquired in the Verizon Acquisition to the extent such Liens are
immaterial, are permitted under the Verizon Purchase Agreement and are removed
within 180 days of the consummation of the Verizon Acquisition; provided
that, in the case of Liens under either clause (i) or (ii), such Liens
attach at all times only to the same assets to which such Liens attached (and
after-acquired property that is affixed or incorporated into the property
covered by such Lien), and secure only the same Indebtedness or obligations
that such Liens secured, immediately prior to the Verizon Acquisition or such
Permitted Acquisition and Investment and any modification, replacement,
refinancing, refunding, renewal or extension thereof permitted by Subsection
3.1(F);

 

(K)          Liens (i) of a collecting bank
arising under Section 4-210 of the Uniform Commercial Code on items in the
course of collection, (ii) attaching to commodity trading accounts or
other commodities brokerage accounts incurred in the ordinary course of
business, and (iii) in favor of a banking institution arising as a matter
of law encumbering deposits (including the right of set-off);

 

(L)           Liens (i) on cash advances in
favor of the seller of any property to be acquired in an Investment permitted
hereunder to be applied against the purchase price for such Investment, and (ii) consisting
of an agreement to sell, transfer, lease or otherwise dispose of any property
in a transaction permitted hereunder, in each case, solely to the extent such
Investment 

 

105

 

or
sale, disposition, transfer or lease, as the case may be, would have been
permitted on the date of the creation of such Lien;

 

(M)         Liens arising out of conditional sale,
title retention, consignment or similar arrangements for sale or purchase of
goods entered into by Borrower or any of its Subsidiaries in the ordinary
course of business permitted by this Agreement;

 

(N)          Liens that are contractual rights of
set-off (i) relating to the establishment of depository relations with
banks not given in connection with the issuance of Indebtedness or (ii) relating
to purchase orders and other agreements entered into with customers of Borrower
or any Subsidiary in the ordinary course of business;

 

(O)          Liens solely on any cash earnest money
deposits made by Borrower or any of its Subsidiaries in connection with any
letter of intent or purchase agreement arising in connection with a transaction
which if consummated would constitute a Permitted Acquisition and Investment;

 

(P)           Liens securing Indebtedness incurred
in reliance on Section 3.1(D) and subclause (ii) of Subsection
3.1(J) and Liens securing Indebtedness in favor of a Loan Party or a
Subsidiary of a Loan Party;

 

(Q)          The security interest of Borrower in
the ownership interest of Sovernet Holding Company in ION HoldCo by and through
that certain Membership Pledge Agreement given by RLEC Holding Company LLC and
Sovernet Holding Company in favor of Borrower, dated as of August 14,
2008, securing that certain Limited Recourse Guaranty, given by RLEC Holding
Company LLC and Sovernet Holding Company in favor of Borrower, dated as of August 14,
2008;

 

(R)           The security interest of Borrower in
the personal property of ION HoldCo by and through that certain Amended and
Restated Mortgage and Security Agreement given by ION HoldCo in favor of
Borrower, dated as of August 14, 2008, securing that certain Amended and
Restated Loan Agreement, between ION HoldCo and Borrower, dated as of August 14,
2008; and

 

(S)           customary restrictions in governance
and similar documents relating to Joint Ventures, provided such restrictions
relate solely to such Joint Venture or the Equity Interests of such Joint
Venture.

 

“Permitted
RTPark Subsidiary” means a Subsidiary of Choice to be established
for the purpose of participating in the RTPark Program and issuing the RTPark
Preferred Stock.

 

“Permitted
Stimulus Indebtedness” means any Indebtedness incurred by a Stimulus
Recipient Subsidiary to or guaranteed by a Stimulus Source Agency, so long as (i) neither
Borrower nor any of its Subsidiaries (other than such Stimulus Recipient
Subsidiary) is liable for the obligations of such Stimulus Recipient Subsidiary
in respect thereof, except to the extent of any guarantee required by such
Stimulus Source Agency as a term or condition to such Indebtedness, (ii) no
Lien upon any assets of Borrower or any of it Subsidiaries (other than such
Stimulus Recipient Subsidiary) secures any such Indebtedness, except to the
extent of any pledge 

 

106

 

of the Equity Interests
in such Stimulus Recipient Subsidiary required by such Stimulus Source Agency
as a term or condition to such Indebtedness, and (iii) such Indebtedness
is extended to a Stimulus Recipient Subsidiary under the Rural Broadband Access
Loan and Loan Guarantee Program of the Rural Utilities Service, or a
substantially similar program.

 

“Person” means and includes natural persons,
corporations, limited liability companies, limited partnerships, limited
liability partnerships, general partnerships, joint stock companies, joint
ventures, associations, companies, trusts, banks, trust companies, land trusts,
business trusts or other organizations, whether or not legal entities, and governments
and agencies and political subdivisions thereof and their respective permitted
successors and assigns (or in the case of a governmental person, the successor
functional equivalent of such Person).

 

“Plan”
means an employee benefit plan (as defined in Section 3(3) of ERISA)
which any Loan Party or any of their ERISA Affiliates sponsor or maintain or to
which any Loan Party or any of their ERISA Affiliates make, is making, or is
obligated to make contributions and includes any Pension Plan.

 

“Pledge and Security
Agreement” means that certain Amended and Restated Pledge and
Security Agreement, dated as of even date herewith, executed by the Loan
Parties in favor of Administrative Agent, for the benefit of itself and
Lenders, in form and content approved by Administrative Agent, pursuant to
which Loan Parties have pledged, as security for the Secured Obligations, on a
first priority basis, substantially all personal property of the Loan Parties
including, stock in their respective Subsidiaries, that they now own or may
hereafter acquire, as such agreement may be amended, modified, supplemented,
extended and restated from time to time.

 

“Post-Closing Letter”
means that certain letter agreement, dated as of even date herewith, executed
by Borrower and addressed to Administrative Agent, in form and content approved
by Administrative Agent, as such letter agreement may be amended, modified,
supplemented, extended and restated from time to time.

 

“Potential Defaulting
Lender” shall mean, at any time, a Lender (A) as to which an
event of the kind referred to in the definition of “Lender Insolvency Event”
has occurred and is continuing in respect of any financial institution
affiliate of such Lender, (B) that has (or its Parent Company or a
financial institution affiliate thereof has) notified Administrative Agent, or
has stated publicly, that it will not comply with its funding obligations under
any other loan agreement or credit agreement or other similar/other financing
agreement or (C) that has, or whose Parent Company has, a non-investment
grade rating from Moody’s Investors Services, Inc. or Standard &
Poor’s Rating Service or another nationally recognized rating agency.

 

“Prime Rate” means, a variable rate of
interest per annum equal, on any day, to the rate of interest published on such
day in the Eastern Edition of The Wall
Street Journal as the average prime lending rate for 75% of the
United States’ 30 largest commercial banks, or if the Eastern Edition of The Wall Street Journal or such rate is
not published on such day, such rate as last published in the Eastern Edition
of The Wall Street Journal.  In
the event the Eastern Edition of The Wall Street Journal ceases to publish such rate or an equivalent
on a regular basis, the term “Prime Rate” shall be determined by reference to
such other regularly published prime rate based 

 

107

 

upon any averaging of such 30 commercial banks, as
Administrative Agent shall determine in its reasonable discretion.  Any change in Prime Rate shall be automatic,
without the necessity of notice provided to Borrower or any other Loan Party.

 

“Pro forma Basis” means, for purposes of calculating
compliance with any test or financial covenant under this Agreement for any period, that the Verizon
Acquisition or the applicable Permitted Acquisition and Investment or Asset
Disposition (and all other Permitted Acquisitions and Investments or Asset
Dispositions that have been consummated during the applicable period), or the
applicable Material Acquisition or Material Disposition, and the following
transactions in connection therewith shall be deemed to have occurred as of the
first day of the applicable period of measurement in such test or
covenant:  (a) income statement
items (whether positive or negative) attributable to the property or Person
subject to the Verizon Acquisition or such Permitted Acquisition and
Investment, Asset Disposition, Material Acquisition or Material Disposition, (i) in
the case of an Asset Disposition or Material Disposition shall be excluded, and
(ii) in the case of the Verizon Acquisition, a Permitted Acquisition and
Investment or a Material Acquisition, shall be included, (b) any
retirement of Indebtedness, and (c) any Indebtedness incurred or assumed
by Borrower or any of its Subsidiaries in connection therewith and if such
Indebtedness has a floating or formula rate, shall have an implied rate of
interest for the applicable period for purposes of this definition determined
by utilizing the rate which is or would be in effect with respect to such
Indebtedness as at the relevant date of determination; provided that the
foregoing pro forma adjustments may be applied to any such test or financial
covenant solely to the extent that such adjustments are consistent with the
definition of EBITDA and give effect to events (including operating expense
reductions) that are (x) attributable to such transaction, (y) expected
to have a continuing impact on Borrower and its Subsidiaries and (z) factually
supportable in a manner reasonably satisfactory to Administrative Agent (provided,
further, that pro forma effect shall only be given to operating expense
reductions or similar anticipated benefits from the Verizon Acquisition or any
Permitted Acquisition and Investment, Asset Disposition, Material Acquisition
or Material Disposition to the extent that such adjustments and the bases
therefor are set forth in reasonable detail in a certificate of the chief
financial officer of Borrower delivered to Administrative Agent and dated the
relevant date of determination and which certifies that all necessary steps for
the realization thereof have been taken or Borrower reasonably anticipates that
all necessary steps for the realization thereof will be taken within one (1) year
following such date of determination).

 

“Pro Rata Share” means (A) with respect
to matters relating to a particular Loan Commitment, the percentage obtained by
dividing (i) the commitment of a Lender under such Loan Commitment by (ii) 
such Loan Commitment and (B) with respect to all other matters, the
percentage obtained by dividing (i) the Total Lender Loan Commitments of
Lender by (ii) the aggregate Total Lender Loan Commitments of Lender, in
either case as such percentage may be adjusted by assignments permitted pursuant
to Subsection 8.1; provided, however, if any Loan Commitment is
terminated pursuant to the terms hereof, in lieu of commitments, the
calculation of clauses (A) and (B) above, as they relate to or
include such Loan Commitment, shall be based on the aggregate amount of Lender’s
outstanding loans related to such Loan Commitment and the aggregate amount
of all outstanding loans related to such Loan Commitment.

 

108

 

“PUC” means any state, provincial or other
local public utility commission or similar regulatory agency or body that
exercises jurisdiction over the rates or services or the ownership,
construction or operation of any Communications System (and its related
facilities) or over Persons who own, construct or operate a Communications
System, in each case by reason of the nature or type of the business subject to
regulation and not pursuant to laws and regulations of general applicability to
Persons conducting business in any such jurisdiction.

 

“PUC Laws” means all relevant rules, regulations, and
published policies of, and all laws administered by, any PUC asserting
jurisdiction over any Loan Party or its Subsidiaries.

 

“Related Parties”
means with respect to any Person, such Person’s Affiliates and the partners,
directors, officers, employees, agents and advisors of such Person and of such
Person’s Affiliates.

 

“Related Secured Hedge
Agreement” means a Secured Hedge Agreement entered into by any Loan Party to hedge
the interest rate exposure applicable to any portions of the Loans.

 

“Reportable Event”
means any of the events set forth in Section 4043(b) of ERISA or the
regulations thereunder, other than any such event for which the 30 day notice
requirement under ERISA has been waived in regulations issued by the PBGC.

 

“Requisite Lenders” means at least two (2) Lenders
(to the extent more than one (1) Lender holds any Loan Commitment or Loan
and that at least one (1) such Lender is not a voting Participant) who are
not Defaulting Lenders and who have in the aggregate Pro Rata Shares greater
than 50%.

 

“Restricted Junior Payment” means:  (A) any dividend or other distribution,
direct or indirect, on account of any equity interest in any Loan Party or any
of its respective Subsidiaries, including any ownership interest and any shares
of any class of stock or other equity interest of any Loan Party or any of its
respective Subsidiaries now or hereafter outstanding; (B) any redemption,
repurchase, conversion, exchange, retirement, sinking fund or similar payment,
purchase or other acquisition for value, direct or indirect, of any equity
interest in any Loan Party or any of its respective Subsidiaries, including any
ownership interest and any shares of any class of stock of any Loan Party or
any of its respective Subsidiaries now or hereafter outstanding; (C) any
payment or prepayment of interest on, principal of, premium, if any,
redemption, conversion, exchange, purchase, retirement, defeasance, sinking
fund or similar payment with respect to, any Indebtedness subject to
subordination provisions for the benefit of Administrative Agent and Lenders;
and (D) any payment made to retire, or to obtain the surrender of, any
outstanding warrants, options or other rights to acquire any equity interest in
any Loan Party or any of its respective Subsidiaries, including any ownership
interest and shares of any class of stock of any Loan Party or any of its
respective Subsidiaries now or hereafter outstanding, except, in each case, to
the extent payable solely in capital stock.

 

“Revolver
Expiration Date” means the earlier of (A) the acceleration of
the Obligations pursuant to Subsection 6.3 or (B) September 10, 2014.

 

109

 

“Revolver Facility” means the revolver loan
facility extended to Borrower pursuant to Subsection 1.1(A).

 

“Revolver Lender” means any Lender that has a portion of the
Revolver Loan Commitment in accordance with the terms hereof.

 

“Revolver Loan Commitment” means, when used
as to each Revolver Lender, its obligation to (a) make Revolver Loans to
Borrower pursuant to Subsection 1.1(A) and (b) purchase
participations in the Letters of Credit, in an aggregate principal amount at
any one time outstanding not to exceed the amount set forth opposite such
Lender’s name on Schedule 1.1 or in the Assignment and Assumption
pursuant to which such Lender became a party hereto, as applicable, as such
amount may be adjusted from time to time in accordance with this Agreement and,
otherwise, the aggregate such commitments of all Revolver Lenders.  The Revolver Loan Commitment of all Revolver
Lenders as of the Amendment Date is $75,000,000.

 

“Revolver Loans” means an advance or
advances under the Revolver Loan Commitment.

 

“Revolver Note” or “Revolver Notes” means one or more of the
Notes of Borrower substantially in the form of Exhibit 10.1(B), or
any combination thereof, and any replacements, reinstatements, renewals or
extension of any such notes, in whole or in part.

 

“RTPark Preferred Stock” means the preferred stock of the Permitted
RTPark Subsidiary which will be issued to an indirect, wholly-owned Subsidiary
of the government of the United States Virgin Islands, will be valued at
$200,000, will pay a dividend of 6% per annum (the payment of which will be
guaranteed by Choice), and will be subject to a put right by the holder to
Choice in 2012 with a purchase price of not more than $200,000.

 

“RTPark Program” means the partnership of the University of the Virgin Islands, the Government of
the Virgin Islands and certain privately held businesses, and all agreements,
documents, rules and guidelines relating to any investment or
membership therein.

 

“RUS” means the Rural Utilities Service or other agency of
the United Stated of America succeeding to it powers.

 

“Secured Hedge Agreement” means any Hedge Agreement between
Borrower or any other Loan Party and any Lender or Affiliate of any Lender (or
Person that was a Lender or Affiliate of any Lender at the time such Hedge
Agreement was entered into).

 

“Secured Obligation” means (i) the Obligations and (ii) all
obligations of Borrower or any other Loan Party under any Secured Hedge
Agreement.

 

“Secured Party” means Administrative Agent, any Lender, any
Affiliate of a Lender that is a party to a Secured Hedge Agreement that
executes and delivers to Administrative Agent a letter agreement in form and
substance acceptable to Administrative Agent pursuant to which such Affiliate
appoints Administrative Agent as its agent under the applicable Security
Documents, and any Indemnitee.

 

110

 

“Security Documents” means, collectively,
all instruments, documents and agreements executed by or on behalf of the Loan
Parties to provide collateral security with respect to the Secured Obligations,
including, the Pledge and Security Agreement, any Collateral Contract
Assignments, mortgages, account control agreements, and all instruments,
documents and agreements executed pursuant to the terms of the foregoing, in
such case, as amended, modified, supplemented, extended and restated from time
to time.

 

“Security Interest” means all Liens in favor
of Administrative Agent, for the benefit of itself, and the other Secured
Parties, created hereunder or under any of the Security Documents to secure the
Secured Obligations.

 

“Stimulus Recipient Subsidiary” means a Subsidiary of
Borrower formed for the purpose of incurring Permitted Stimulus Indebtedness or
obtaining a grant
from a Stimulus Source Agency and conducting the business contemplated in its
application to such Stimulus Source Agency for such Permitted Stimulus
Indebtedness or grant.

 

“Stimulus
Source Agency” means the RUS or the NTIA.

 

“Subsidiary” means, with respect to any
Person, any corporation, partnership, association or other business entity of
which more than 50% of the total voting power of shares of stock (or equivalent
ownership or controlling interest) entitled (without regard to the occurrence
of any contingency) to vote in the election of directors, managers or trustees
thereof is at the time owned or controlled, directly or indirectly, by that
Person or one or more of the other Subsidiaries of that Person or a combination
thereof.

 

“Term Loan A”
means the Loan made pursuant to Subsection 1.1(B)(i).

 

“Term Loan A
Facility” means the term loan credit facility extended to Borrower
pursuant to Subsection 1.1(B)(i).

 

“Term Loan A Lender”
means any Lender that has funded a portion of the Term Loan A and/or purchased
a portion of the Term Loan A in accordance with the terms hereof in the
principal amount set forth opposite such Lender’s Name on Schedule 1.1
or in the Assignment and Assumption pursuant to which such Lender became a
party hereto, as applicable.

 

“Term Loan A
Maturity Date” means the earlier of (A) the acceleration of the
Obligations pursuant to Subsection 6.3 or (B) September 30, 2014.

 

“Term Loan A Note” or “Term Loan A Notes” means one or more of the notes of Borrower
substantially in the form of Exhibit 10.1(C), or any combination
thereof, and any replacements, restatements, renewals or extensions of any such
notes, in whole or in part.

 

“Term Loan B”
means the Loan under the Term Loan B Commitment.

 

“Term Loan B Availability
Expiration Date” means March 31, 2010.

 

“Term Loan B
Commitment” means, when used as to a Term Loan B Lender, its obligation
to make its portion of the Term Loan B to Borrower pursuant to Subsection
1.1(B)(ii) 

 

111

 

in the principal amount set forth opposite such Lender’s name on Schedule
1.1 or in the Assignment and Assumption pursuant to which such Lender
became a party hereto, as applicable, as such amount may be adjusted from time
to time in accordance with this Agreement and, otherwise, the aggregate such
commitments of all Term Loan B Lenders. 
The Term Loan B Commitment of all Term Loan B Lenders as of the
Amendment Date is $150,000,000.

 

“Term Loan B
Facility” means the term loan credit facility extended to Borrower
pursuant to Subsection 1.1(B)(ii).

 

“Term Loan B Lender”
means any Lender that has a portion of the aggregate Term Loan B Commitment or
has funded a portion of and/or purchased a portion of the Term Loan B in
accordance with the terms hereof.

 

“Term Loan B
Maturity Date” means the earlier of (A) the acceleration of the
Obligations pursuant to Subsection 6.3 or (B) September 30, 2014.

 

“Term Loan B Note” or “Term Loan B Notes” means one or more of the notes of Borrower
substantially in the form of Exhibit 10.1(D), or any combination
thereof, and any replacements, restatements, renewals or extensions of any such
notes, in whole or in part.

 

“Term Loan Facilities” means the Term Loan A Facility, the
Term Loan B Facility and, if and when applicable, any Incremental Term Loan
Facility.

 

“Term Loan Maturity Date” means the Term Loan A Maturity
Date, when used with reference to the Term Loan A, and the Term Loan B Maturity
Date, when used with reference to the Term Loan B, and, if applicable, the
maturity date of any Incremental Term Loan Facility, when used with reference
to any such Incremental Term Loan.

 

“Term Loan Notes” means the Term Loan A Notes and the Term
Loan B Notes.

 

“Total Interest Coverage Ratio” means, as of
the date of calculation, the ratio derived by dividing (A) EBITDA by
(B) cash interest expense for the then most recently completed four fiscal
quarters.

 

“Total Lender Loan Commitment” means the
aggregate commitments of any Lender with respect to the Loan Commitments.

 

“Total Leverage Ratio” means, as of the date
of calculation, the ratio derived by dividing (A) Indebtedness
(other than as described in clause (H) of the definition of Indebtedness
and, to the extent related to or supporting the Indebtedness described in
clause (H) of such definition, as described in clauses (K), (L), (M), and (N) of
the definition of Indebtedness) by (B) EBITDA.

 

“Transition Services Agreement” means that certain Transition
Services Agreement by and between Borrower and Cellco Partnership d/b/a Verizon
Wireless, dated as of June 9, 2009, together with any schedules, exhibits
or other attachments thereto, in each case, as modified to the extent such
modifications are permitted by this Agreement.

 

112

 

“Verizon Acquisition” means the acquisition of the assets
subject to the Verizon Purchase Agreement by the Acquired Companies and the
acquisition of the ownership interest of the Acquired Companies by Borrower.

 

“Verizon Acquisition Documentation” means, collectively, (A) the
Verizon Purchase Agreement and (B) the Transition Services Agreement.

 

“Verizon Purchase Agreement” means that certain Purchase
Agreement by and between Borrower and Cellco Partnership d/b/a Verizon
Wireless, dated as of June 9, 2009, together with any schedules, exhibits
or other attachments thereto, in each case, as modified to the extent such
modifications are permitted by this Agreement.

 

10.2         Other Definitional Provisions.  References to “Sections,” “Subsections,” “Exhibits”
and “Schedules” shall be to Sections, Subsections, Exhibits and Schedules,
respectively, of this Agreement unless otherwise specifically provided.  Any of the terms defined in Subsection 10.1
may, unless the context otherwise requires, be used in the singular or the
plural depending on the reference.  In
this Agreement, “hereof,” “herein,” “hereto,” “hereunder” and the like mean and
refer to this Agreement as a whole and not merely to the specific section,
paragraph or clause in which the respective word appears; words importing any
gender include the other gender; references to “writing” include printing,
typing, lithography and other means of reproducing words in a tangible visible
form; the words “including,” “includes” and “include” shall be deemed to be
followed by the words “without limitation”; references to agreements and other
contractual instruments shall be deemed to include subsequent amendments,
assignments, extensions, renewals and other modifications thereto, but only to
the extent such amendments, assignments, extensions, renewals and other
modifications are not prohibited by the terms of this Agreement or any other
Loan Document; references to Persons include their respective permitted
successors and assigns or, in the case of governmental Persons, Persons
succeeding to the relevant functions of such Persons; and all references to
statutes and related regulations shall include any amendments of same and any
successor statutes and regulations.

 

[Signatures follow on the next page.]

 

113

 

Witness
the due execution hereof by the respective duly authorized officers of the
undersigned as of the date first written above.

 

	
   

  	
  ATLANTIC
  TELE-NETWORK, INC.,

  
	
   

  	
  as
  Borrower

  
	
   

  	
   

  
	
   

  	
  /s/
  Justin D. Benincasa

  
	
   

  	
   

  
	
   

  	
  Justin
  D. Benincasa

  
	
   

  	
  Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
  COMMNET
  WIRELESS, LLC

  
	
   

  	
  COMMNET
  FOUR CORNERS, LLC

  
	
   

  	
  COMMNET
  MIDWEST, LLC

  
	
   

  	
  COMMNET
  OF ARIZONA, L.L.C.

  
	
   

  	
  GILA
  COUNTY WIRELESS, LLC

  
	
   

  	
  EXCOMM,
  L.L.C.

  
	
   

  	
  SOVERNET
  HOLDING CORPORATION

  
	
   

  	
  COMMNET
  OF NEVADA, LLC

  
	
   

  	
  TISDALE
  TELEPHONE COMPANY, LLC

  
	
   

  	
  COMMNET
  NV, LLC

  
	
   

  	
  COMMNET
  OF TEXAS, LLC

  
	
   

  	
  ALLIED
  WIRELESS

  COMMUNICATIONS CORPORATION

  
	
   

  	
  CHOICE
  COMMUNICATIONS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Justin D Benincasa

  
	
   

  	
  Justin
  D. Benincasa

  
	
   

  	
  Treasurer

  
	
   

  	
   

  
	
   

  	
  SOVERNET,
  INC.

  
	
   

  	
  NATIONAL
  MOBILE 

  COMMUNICATIONS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Justin D. Benincasa

  
	
   

  	
  Justin
  D. Benincasa

  
	
   

  	
  Chief
  Financial Officer

  

 

 

[Signatures continued on following page]

 

114

 

[Signatures continued from previous page]

 

 

	
   

  	
  SAL
  SPECTRUM LLC

  
	
   

  	
  By:
  Atlantic Tele-Network, Inc., its Sole Member

  
	
   

  	
   

  
	
   

  	
  /s/
  Justin D. Benincasa

  
	
   

  	
  Justin
  D. Benincasa

  
	
   

  	
  Chief
  Financial Officer

  

 

 

[Signatures continued on following page]

 

115

 

[Signatures continued from previous page]

 

 

	
   

  	
  COBANK,
  ACB, as Administrative Agent, Arranger, an Issuing Lender and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  John Cole

  
	
   

  	
   

  	
  John
  Cole

  
	
   

  	
   

  	
  Vice
  President

  

 

 

[Signatures continued on
following page]

 

116

 

[Signatures continued from
previous page]

 

 

	
   

  	
  BANCO
  POPULAR DE PUERTO RICO, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Ian S. Smith

  
	
   

  	
   

  	
  Ian
  S. Smith

  
	
   

  	
   

  	
  Vice
  President

  

 

117

 

[Signatures continued from
previous page]

 

 

	
   

  	
  BANK
  OF AMERICA, N.A., as Co-Syndication Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  John B. Desmond

  
	
   

  	
   

  	
  John
  B. Desmond

  
	
   

  	
   

  	
  Senior
  Vice President

  

 

118

 

[Signatures continued from
previous page]

 

 

	
   

  	
  BROWN
  BROTHERS HARRIMAN & CO., as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Scott Meves

  
	
   

  	
   

  	
  Scott
  Meves

  
	
   

  	
   

  	
  Senior
  Vice President

  

 

119

 

[Signatures continued from
previous page]

 

 

	
   

  	
  DEUTSCHE
  BANK TRUST COMPANY AMERICAS, as

  
	
   

  	
  Co-Documentation
  Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Enrique Landaeta

  
	
   

  	
   

  	
  Enrique
  Landaeta

  
	
   

  	
   

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Marguerite Sutton

  
	
   

  	
   

  	
  Marguerite
  Sutton

  
	
   

  	
   

  	
  Director

  

 

120

 

[Signatures continued from
previous page]

 

 

	
   

  	
  FIFTH
  THIRD BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Valerie Schanzer

  
	
   

  	
   

  	
  Valerie
  Schanzer

  
	
   

  	
   

  	
  Vice President

  

 

121

 

[Signatures continued from
previous page]

 

 

	
   

  	
  RAYMOND
  JAMES BANK, FSB, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joseph A. Ciccolini

  
	
   

  	
   

  	
  Joseph
  A. Ciccolini

  
	
   

  	
   

  	
  Vice
  President – Senior Corporate

  
	
   

  	
   

  	
  Banker

  

 

122

 

[Signatures
continued from previous page]

 

 

	
   

  	
  TORONTO DOMINION (NEW YORK) LLC, as Co-Syndication Agent and as a
  Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Debbi Brito

  
	
   

  	
   

  	
  Debbi Brito

  
	
   

  	
   

  	
  Authorized Signatory

  

 

123

 

[Signatures continued from
previous page]

 

 

	
   

  	
  UNION
  BANK, N.A., as Co-Documentation Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Richard Vian

  
	
   

  	
   

  	
  Richard
  Vian

  
	
   

  	
   

  	
  Vice
  President

  

 

124

 

[Signatures continued from
previous page]

 

 

	
   

  	
  AGFIRST FARM CREDIT BANK, as a voting participant

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bruce B. Fortner

  
	
   

  	
   

  	
  Bruce B. Fortner

  
	
   

  	
   

  	
  Vice President

  

 

125

 

[Signatures continued from
previous page]

 

 

	
   

  	
  AGSTAR FINANCIAL SERVICES, FLCA
  as a voting
  participant

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Troy Mostaert

  
	
   

  	
   

  	
  Troy Mostaert

  
	
   

  	
   

  	
  Vice President

  

 

126

 

[Signatures continued from
previous page]

 

 

	
   

  	
  FARM CREDIT BANK OF TEXAS, as a voting participant

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Horace R. Harrod

  
	
   

  	
   

  	
  Horace R. Harrod

  
	
   

  	
   

  	
  Vice President

  

 

127Exhibit 4.1

 

EXECUTION VERSION

 

 

 

B&G
Foods, Inc.

 

 

INDENTURE

 

Dated
as of January 25, 2010

 

 

The
Bank of New York Mellon,

as
Trustee

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE
  I. DEFINITIONS AND INCORPORATION BY REFERENCE

  	
  1

  
	
  Section 1.1.

  	
  Definitions

  	
  1

  
	
  Section 1.2.

  	
  Other Definitions

  	
  7

  
	
  Section 1.3.

  	
  Incorporation by
  Reference of Trust Indenture Act

  	
  7

  
	
  Section 1.4.

  	
  Rules of
  Construction

  	
  8

  
	
  ARTICLE
  II. THE SECURITIES

  	
  8

  
	
  Section 2.1.

  	
  Issuable in Series

  	
  8

  
	
  Section 2.2.

  	
  Establishment of Terms
  of Series of Securities

  	
  9

  
	
  Section 2.3.

  	
  Execution and
  Authentication

  	
  11

  
	
  Section 2.4.

  	
  Registrar and Paying
  Agent

  	
  12

  
	
  Section 2.5.

  	
  Paying Agent to Hold
  Money in Trust

  	
  12

  
	
  Section 2.6.

  	
  Securityholder Lists

  	
  13

  
	
  Section 2.7.

  	
  Transfer and Exchange

  	
  13

  
	
  Section 2.8.

  	
  Mutilated, Destroyed,
  Lost and Stolen Securities

  	
  13

  
	
  Section 2.9.

  	
  Outstanding Securities

  	
  14

  
	
  Section 2.10.

  	
  Treasury Securities

  	
  15

  
	
  Section 2.11.

  	
  Temporary Securities

  	
  15

  
	
  Section 2.12.

  	
  Cancellation

  	
  15

  
	
  Section 2.13.

  	
  Defaulted Interest

  	
  15

  
	
  Section 2.14.

  	
  Global Securities

  	
  16

  
	
  Section 2.15.

  	
  CUSIP Numbers

  	
  17

  
	
  ARTICLE
  III. REDEMPTION

  	
  17

  
	
  Section 3.1.

  	
  Notice to Trustee

  	
  17

  
	
  Section 3.2.

  	
  Selection of Securities
  to be Redeemed or Repurchased

  	
  17

  
	
  Section 3.3.

  	
  Notice of Redemption

  	
  18

  
	
  Section 3.4.

  	
  Effect of Notice of
  Redemption

  	
  18

  
	
  Section 3.5.

  	
  Deposit of Redemption
  Price

  	
  19

  
	
  Section 3.6.

  	
  Securities Redeemed in
  Part

  	
  19

  
	
  ARTICLE
  IV. COVENANTS

  	
  19

  
	
  Section 4.1.

  	
  Payment of Principal
  and Interest

  	
  19

  
	
  Section 4.2.

  	
  Maintenance of Office
  or Agency

  	
  19

  
	
  Section 4.3.

  	
  SEC Reports

  	
  20

  
	
  Section 4.4.

  	
  Compliance Certificate

  	
  21

  
	
  Section 4.5.

  	
  Taxes

  	
  21

  
	
  Section 4.6.

  	
  Stay, Extension and
  Usury Laws

  	
  21

  
	
  Section 4.7.

  	
  Corporate Existence

  	
  22

  
	
  ARTICLE
  V. SUCCESSORS

  	
  22

  
	
  Section 5.1.

  	
  Merger, Consolidation,
  or Sale of Assets

  	
  22

  
	
  Section 5.2.

  	
  Successor Corporation
  Substituted

  	
  23

  
	
  ARTICLE
  VI. DEFAULTS AND REMEDIES

  	
  23

  
	
  Section 6.1.

  	
  Events of Default

  	
  23

  
	
  Section 6.2.

  	
  Acceleration

  	
  25

  
	
  Section 6.3.

  	
  Other Remedies

  	
  26

  

 

i

 

	
  Section 6.4.

  	
  Waiver of Past Defaults

  	
  26

  
	
  Section 6.5.

  	
  Control by Majority

  	
  26

  
	
  Section 6.6.

  	
  Limitation on Suits

  	
  26

  
	
  Section 6.7.

  	
  Rights of Holders of
  Securities to Receive Payment

  	
  27

  
	
  Section 6.8.

  	
  Collection Suit by
  Trustee

  	
  27

  
	
  Section 6.9.

  	
  Trustee May File
  Proofs of Claim

  	
  27

  
	
  Section 6.10.

  	
  Priorities

  	
  28

  
	
  Section 6.11.

  	
  Undertaking for Costs

  	
  28

  
	
  ARTICLE
  VII. TRUSTEE

  	
  29

  
	
  Section 7.1.

  	
  Duties of Trustee

  	
  29

  
	
  Section 7.2.

  	
  Rights of Trustee

  	
  30

  
	
  Section 7.3.

  	
  Individual Rights of
  Trustee

  	
  31

  
	
  Section 7.4.

  	
  Trustee’s Disclaimer

  	
  31

  
	
  Section 7.5.

  	
  Notice of Defaults

  	
  32

  
	
  Section 7.6.

  	
  Reports by Trustee to
  Holders

  	
  32

  
	
  Section 7.7.

  	
  Compensation and
  Indemnity

  	
  32

  
	
  Section 7.8.

  	
  Replacement of Trustee

  	
  33

  
	
  Section 7.9.

  	
  Successor Trustee by
  Merger, etc.

  	
  34

  
	
  Section 7.10.

  	
  Eligibility;
  Disqualification

  	
  34

  
	
  Section 7.11.

  	
  Preferential Collection
  of Claims Against Company

  	
  34

  
	
  ARTICLE
  VIII. LEGAL DEFEASANCE AND COVENANT DEFEASANCE

  	
  34

  
	
  Section 8.1.

  	
  Option to Effect Legal
  Defeasance or Covenant Defeasance

  	
  34

  
	
  Section 8.2.

  	
  Legal Defeasance and
  Discharge

  	
  34

  
	
  Section 8.3.

  	
  Covenant Defeasance

  	
  35

  
	
  Section 8.4.

  	
  Conditions to Legal or
  Covenant Defeasance

  	
  36

  
	
  Section 8.5.

  	
  Deposited Money and
  Government Securities to be Held in Trust; Other Miscellaneous Provisions

  	
  37

  
	
  Section 8.6.

  	
  Repayment to Company

  	
  37

  
	
  Section 8.7.

  	
  Reinstatement

  	
  38

  
	
  ARTICLE
  IX. AMENDMENTS AND WAIVERS

  	
  38

  
	
  Section 9.1.

  	
  Without Consent of
  Holders

  	
  38

  
	
  Section 9.2.

  	
  With Consent of Holders

  	
  39

  
	
  Section 9.3.

  	
  Limitations

  	
  40

  
	
  Section 9.4.

  	
  Compliance with Trust
  Indenture Act

  	
  40

  
	
  Section 9.5.

  	
  Revocation and Effect
  of Consents

  	
  40

  
	
  Section 9.6.

  	
  Notation on or Exchange
  of Securities

  	
  41

  
	
  Section 9.7.

  	
  Trustee Protected

  	
  41

  
	
  ARTICLE
  X. SATISFACTION AND DISCHARGE

  	
  41

  
	
  Section 10.1.

  	
  Satisfaction and
  Discharge

  	
  41

  
	
  Section 10.2.

  	
  Application of Trust
  Money

  	
  42

  
	
  ARTICLE
  XI. MISCELLANEOUS

  	
  43

  
	
  Section 11.1.

  	
  Trust Indenture Act
  Controls

  	
  43

  
	
  Section 11.2.

  	
  Notices

  	
  43

  
	
  Section 11.3.

  	
  Communication by
  Holders with Other Holders

  	
  44

  
	
  Section 11.4.

  	
  Certificate and Opinion
  as to Conditions Precedent

  	
  44

  
	
  Section 11.5.

  	
  Statements Required in
  Certificate or Opinion

  	
  44

  

 

ii

 

	
  Section 11.6.

  	
  Rules by Trustee
  and Agents

  	
  44

  
	
  Section 11.7.

  	
  Legal Holidays

  	
  45

  
	
  Section 11.8.

  	
  No Recourse Against
  Others

  	
  45

  
	
  Section 11.9.

  	
  Counterparts

  	
  45

  
	
  Section 11.10.

  	
  Governing Laws

  	
  45

  
	
  Section 11.11.

  	
  No Adverse
  Interpretation of Other Agreements

  	
  45

  
	
  Section 11.12.

  	
  Successors

  	
  45

  
	
  Section 11.13.

  	
  Severability

  	
  45

  
	
  Section 11.14.

  	
  Table of Contents,
  Headings, Etc.

  	
  46

  
	
  Section 11.15.

  	
  Securities in a Foreign
  Currency or in ECU

  	
  46

  
	
  Section 11.16.

  	
  Judgment Currency

  	
  46

  
	
  Section 11.17.

  	
  Waiver of Jury Trial

  	
  47

  
	
  Section 11.18.

  	
  Force Majeure

  	
  47

  
	
  ARTICLE
  XII. SINKING FUNDS

  	
  47

  
	
  Section 12.1.

  	
  Applicability of
  Article

  	
  47

  
	
  Section 12.2.

  	
  Satisfaction of Sinking
  Fund Payments with Securities

  	
  48

  
	
  Section 12.3.

  	
  Redemption of Securities for Sinking Fund

  	
  48

  

 

iii

 

B&G FOODS, INC.

 

Reconciliation
and tie between Trust Indenture Act of 1939 and

Indenture, dated as of January 25, 2010

 

	
  § 310(a)(1

  	
  )

  	
   

  	
   

  	
  7.10

  
	
  (a)(2)

  	
   

  	
   

  	
   

  	
  7.10

  
	
  (a)(3)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  (a)(4)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  (a)(5)

  	
   

  	
   

  	
   

  	
  7.10

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.10

  
	
  (c)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  § 311(a)

  	
   

  	
   

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  § 312(a)

  	
   

  	
   

  	
   

  	
  2.6

  
	
  (b)

  	
   

  	
   

  	
   

  	
  11.3

  
	
  (c)

  	
   

  	
   

  	
   

  	
  11.3

  
	
  § 313(a)

  	
   

  	
   

  	
   

  	
  7.6

  
	
  (b)(1)

  	
   

  	
   

  	
   

  	
  7.6

  
	
  (b)(2)

  	
   

  	
   

  	
   

  	
  7.6

  
	
  (c)(1)

  	
   

  	
   

  	
   

  	
  7.6

  
	
  (d)

  	
   

  	
   

  	
   

  	
  7.6

  
	
  § 314(a)

  	
   

  	
   

  	
   

  	
  4.3, 11.5

  
	
  (b)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  (c)(1)

  	
   

  	
   

  	
   

  	
  11.4

  
	
  (c)(2)

  	
   

  	
   

  	
   

  	
  11.4

  
	
  (c)(3)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  (d)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  (e)

  	
   

  	
   

  	
   

  	
  11.5

  
	
  (f)

  	
   

  	
   

  	
   

  	
  Not Applicable

  
	
  § 315(a)

  	
   

  	
   

  	
   

  	
  7.1

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.5

  
	
  (c)

  	
   

  	
   

  	
   

  	
  7.1

  
	
  (d)

  	
   

  	
   

  	
   

  	
  7.1

  
	
  (e)

  	
   

  	
   

  	
   

  	
  6.11

  
	
  § 316(a)

  	
   

  	
   

  	
   

  	
  2.10

  
	
  (a)(1)(A)

  	
   

  	
   

  	
   

  	
  6.5

  
	
  (a)(1)(B)

  	
   

  	
   

  	
   

  	
  6.4

  
	
  (b)

  	
   

  	
   

  	
   

  	
  6.7

  
	
  § 317(a)(1

  	
  )

  	
   

  	
   

  	
  6.8

  
	
  (a)(2)

  	
   

  	
   

  	
   

  	
  6.9

  
	
  (b)

  	
   

  	
   

  	
   

  	
  2.5

  
	
  § 318(a)

  	
   

  	
   

  	
   

  	
  11.1

  

 

Note:  This
reconciliation and tie shall not, for any purpose, be deemed to be part of the
Indenture.

 

iv

 

 

Indenture dated as of January 25, 2010 between
B&G Foods, Inc., a Delaware corporation (“Company”), and The Bank of
New York Mellon, as trustee (“Trustee”).

 

Each party agrees as follows for the benefit of the
other party and for the equal and ratable benefit of the Holders of the
Securities issued under this Indenture.

 

ARTICLE I.

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.1.                                   Definitions.

 

“Additional Amounts” means any additional amounts
which are required hereby or by any Security, under circumstances specified
herein or therein, to be paid by the Company in respect of certain taxes
imposed on Holders specified herein or therein and which are owing to such
Holders.

 

“Affiliate” of any specified person means any other
person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified person.   For purposes of this definition, “control”,
as used with respect to any person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of such person, whether through the ownership of voting securities, by
agreement or otherwise; provided that beneficial ownership of 10% or more of
the Voting Stock of a Person will be deemed to be control.  For purposes of this definition, the terms “controlling,”
“controlled by” and “under common control with” have correlative meanings.

 

“Agent” means any Registrar, Paying Agent or Service
Agent.

 

“Attributable Debt” in respect of a sale and leaseback
transaction means, at the time of determination, the present value of the
obligation of the lessee for net rental payments during the remaining term of
the lease included in such sale and leaseback transaction including any period
for which such lease has been extended or may, at the option of the lessor, be
extended.  Such present value shall be
calculated using a discount rate equal to the rate of interest implicit in such
transaction, determined in accordance with GAAP; provided, however,
that if such sale and leaseback transaction results in a Capital Lease
Obligation, the amount of Indebtedness represented thereby will be determined
in accordance with the definition of “Capital Lease Obligation.”

 

“Authorized Newspaper” means a newspaper in an
official language of the country of publication customarily published at least
once a day for at least five days in each calendar week and of general
circulation in the place in connection with which the term is used.  If it shall be impractical in the opinion of
the Trustee to make any publication of any notice required hereby in an
Authorized Newspaper, any publication or other notice in lieu thereof that is
made or given by the Trustee shall constitute a sufficient publication of such
notice.

 

“Bearer” means anyone in possession from time to time
of a Bearer Security.

 

“Bearer Security” means any Security, including any
interest coupon appertaining thereto, that does not provide for the
identification of the Holder thereof.

 

 

“Board of Directors” means:

 

(1)                                  with respect to a
corporation, the board of directors of the corporation or any committee thereof
duly authorized to act on behalf of such board;

 

(2)                                  with respect to a
partnership, the Board of Directors of the general partner of the partnership;

 

(3)                                  with respect to a
limited liability company, the managing member or members or any controlling
committee of managing members thereof; and

 

(4)                                  with respect to any
other person, the board or committee of such person serving a similar function.

 

“Board Resolution” means a copy of a resolution
certified by the Secretary or an Assistant Secretary of the Company to have
been adopted by the Board of Directors or pursuant to authorization by the
Board of Directors and to be in full force and effect on the date of the certificate
and delivered to the Trustee.

 

“Business Day” means, unless otherwise provided by
Board Resolution, Officers’ Certificate or supplemental indenture hereto for a
particular Series, any day except a Saturday, Sunday or a legal holiday in The
City of New York on which banking institutions are authorized or required by
law, regulation or executive order to close.

 

“Capital Lease Obligation” means, at the time any
determination is to be made, the amount of the liability in respect of a
capital lease that would at that time be required to be capitalized on a
balance sheet in accordance with GAAP, and the Stated Maturity thereof shall be
the date of the last payment of rent or any other amount due under such lease
prior to the first date upon which such lease may be prepaid by the lessee
without payment of a penalty.

 

“Capital Stock” means:

 

(1)                                  in the case of a corporation, corporate
stock;

 

(2)                                  in the case of an association or business
entity, any and all shares, interests, participations, rights or other equivalents
(however designated) of corporate stock;

 

(3)                                  in the case of a partnership or limited
liability company, partnership interests (whether general or limited) or
membership interests; and

 

(4)                                  any other interest or participation that
confers on a person the right to receive a share of the profits and losses of,
or distributions of assets of, the issuing person, but excluding from all of
the foregoing any debt securities convertible into Capital Stock, whether or
not such debt securities include any right of participation with Capital Stock.

 

“Company” means the party named as such above until a
successor replaces it and thereafter means the successor.

 

2

 

“Company Order” means a written order signed in the
name of the Company by two Officers, one of whom must be the Company’s
principal executive officer, principal financial officer or principal
accounting officer.

 

“Company Request” means a written request signed in
the name of the Company by its Chief Executive Officer, the President or a Vice
President, and by its Treasurer, an Assistant Treasurer, its Secretary or an
Assistant Secretary, and delivered to the Trustee.

 

“Corporate Trust Office” means the office of the
Trustee at which at any particular time its corporate trust business shall be
principally administered.

 

“Default” means any event that is, or with the passage
of time or the giving of notice or both would be, an Event of Default.

 

“Depository” means, with respect to the Securities of
any Series issuable or issued in whole or in part in the form of one or
more Global Securities, the person designated as Depository for such Series by
the Company, which Depository shall be a clearing agency registered under the
Exchange Act; and if at any time there is more than one such person, “Depository”
as used with respect to the Securities of any Series shall mean the
Depository with respect to the Securities of such Series.

 

“Discount Security” means any Security that provides
for an amount less than the stated principal amount thereof to be due and
payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2.

 

“Dollars” and “$”means the currency of The United
States of America.

 

“ECU” means the European Currency Unit as determined
by the Commission of the European Union.

 

“Equity Interests” means Capital Stock and all
warrants, options or other rights to acquire Capital Stock (but excluding any
debt security that is convertible into, or exchangeable for, Capital Stock).

 

“Exchange Act” means the Securities Exchange Act of
1934, as amended.

 

“Foreign Currency” means any currency or currency unit
issued by a government other than the government of The United States of
America.

 

“Foreign Government Obligations” means, with respect
to Securities of any Series that are denominated in a Foreign Currency, (i) direct
obligations of the government that issued or caused to be issued such currency
for the payment of which obligations its full faith and credit is pledged or (ii) obligations
of a person controlled or supervised by or acting as an agency or
instrumentality of such government the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation by such
government, which, in either case under clauses (i) or (ii), are not
callable or redeemable at the option of the issuer thereof.

 

3

 

“GAAP” means generally accepted accounting principles
set forth in the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as have been approved by a significant segment
of the accounting profession, which are in effect from time to time.

 

“Global Security” or “Global Securities” means a
Security or Securities, as the case may be, in the form established pursuant to
Section 2.2 evidencing all or part of a Series of Securities, issued to
the Depository for such Series or its nominee, and registered in the name
of such Depository or nominee.

 

“Government Securities” means direct obligations of,
or obligations guaranteed by, the United States of America, and the payment for
which the United States pledges its full faith and credit.

 

“Guarantee” means a guarantee other than by
endorsement of negotiable instruments for collection in the ordinary course of
business, direct or indirect, in any manner including, without limitation, by
way of a pledge of assets or through letters of credit or reimbursement
agreements in respect thereof, of all or any part of any Indebtedness (whether
arising by virtue of partnership arrangements, or by agreements to keep-well,
to purchase assets, goods, securities or services, to take or pay or to
maintain financial statement conditions or otherwise).

 

“Hedging Obligations” means, with respect to any
specified person, the obligations of such person under:

 

(1)                                  interest rate swap agreements (whether
from fixed to floating or from floating to fixed), interest rate cap agreements
and interest rate collar agreements;

 

(2)                                  other agreements or arrangements designed
to manage interest rates or interest rate risk; and

 

(3)                                  other agreements or arrangements designed
to protect such Person against fluctuations in currency exchange rates or
commodity prices.

 

“Holder” or “Securityholder” means a person in whose
name a Security is registered or the holder of a Bearer Security.

 

“Indebtedness” means, with respect to any specified
person, any indebtedness of such person (excluding accrued expenses and trade
payables), whether or not contingent:

 

(1)                                  in respect of borrowed money;

 

(2)                                  evidenced by bonds, notes, debentures or
similar instruments or letters of credit (or reimbursement agreements in
respect thereof);

 

(3)                                  in respect of banker’s acceptances;

 

4

 

(4)                                  representing Capital Lease Obligations or
Attributable Debt in respect of sale and leaseback transactions;

 

(5)                                  representing the balance deferred and
unpaid of the purchase price of any property (including trade payables) or
services due more than six months after such property is acquired or such
services are completed; or

 

(6)                                  representing the net amount owing under
any Hedging Obligations,

 

if and to the extent any
of the preceding items (other than letters of credit, Attributable Debt and
Hedging Obligations) would appear as a liability upon a balance sheet of the
specified person prepared in accordance with GAAP.  In addition, the term “Indebtedness” includes
all Indebtedness of others secured by a Lien on any asset of the specified
person (whether or not such Indebtedness is assumed by the specified person)
and, to the extent not otherwise included, the Guarantee by the specified
person of any Indebtedness of any other person; provided, that the
amount of such Indebtedness shall be deemed not to exceed the lesser of the
amount secured by such Lien and the value of the person’s property securing
such Lien.

 

“Indenture” means this Indenture as amended or
supplemented from time to time and shall include the form and terms of
particular Series of Securities established as contemplated hereunder.

 

“interest” with respect to any Discount Security which
by its terms bears interest only after Maturity, means interest payable after
Maturity.

 

“Lien” means, with respect to any asset:

 

(1)                                  any mortgage, deed of trust, deed to
secure debt, lien (statutory or otherwise), pledge, hypothecation, encumbrance,
restriction, collateral assignment, charge or security interest in, on or of
such asset;

 

(2)                                  the interest of a vendor or a lessor
under any conditional sale agreement, capital lease or title retention
agreement (or any financing lease having substantially the same economic effect
as any of the foregoing) relating to such asset; and

 

(3)                                  in the case of Equity Interests or debt
securities, any purchase option, call or similar right of a third party with
respect to such Equity Interests or debt securities.

 

“Maturity,” when used with respect to any Security or
installment of principal thereof, means the date on which the principal of such
Security or such installment of principal becomes due and payable as therein or
herein provided, whether at the Stated Maturity or by declaration of acceleration,
call for redemption, notice of option to elect repayment or otherwise.

 

“Officer” means the Chief Executive Officer, the
President, any Vice President, the Treasurer, the Secretary, any Assistant
Treasurer or any Assistant Secretary of the Company.

 

5

 

“Officers’ Certificate” means a certificate signed by
two Officers, one of whom must be the Company’s principal executive officer,
principal financial officer or principal accounting officer.

 

“Opinion of Counsel” means a written opinion of legal
counsel that meets the requirements of Section 11.5 hereof.  The counsel may be an employee of or counsel
to the Company.

 

“person” means any individual, corporation,
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization, limited liability company or government or other
entity.

 

“principal” of a Security means the principal of the
Security plus, when appropriate, the premium, if any, on, and any Additional
Amounts in respect of, the Security.

 

“Responsible Officer” means any officer of the Trustee
in its Corporate Trust Office (including any managing director, director, vice
president, assistant vice president or trust officer) and also means, with
respect to a particular corporate trust matter, any other officer customarily
performing functions similar to those performed by the above designated
officers and also means, any other officer to whom any corporate trust matter
is referred because of his or her knowledge of and familiarity with a
particular subject and who shall have direct responsibility for the
administration of this Indenture.

 

“SEC” means the Securities and Exchange Commission.

 

“Securities” means the debentures, notes or other debt
instruments of the Company of any Series authenticated and delivered under
this Indenture.

 

“Series” or “Series of Securities” means each
series of debentures, notes or other debt instruments of the Company created
pursuant to Sections 2.1 and 2.2 hereof.

 

“Stated Maturity” means, with respect to any
installment of interest or principal on any series of Indebtedness, the date on
which the payment of interest or principal was scheduled to be paid in the
documentation governing such Indebtedness as of the date of the indenture, and
will not include any contingent obligations to repay, redeem or repurchase any
such interest or principal prior to the date originally scheduled for the
payment thereof.

 

“Subsidiary” means, with
respect to any specified person:

 

(1)                                  any corporation,
association or other business entity of which more than 50% of the total voting
power of shares of Capital Stock entitled (without regard to the occurrence of
any contingency and after giving effect to any voting agreement or stockholders’
agreement that effectively transfers voting power) to vote in the election of
directors, managers or trustees of the corporation, association or other
business entity is at the time owned or controlled, directly or indirectly, by
that person or one or more of the other Subsidiaries of that person (or a
combination thereof); and

 

6

 

(2)                                  any partnership (a) the
sole general partner or the managing general partner of which is such person or
a Subsidiary of such person or (b) the only general partners of which are
that person or one or more Subsidiaries of that person (or any combination
thereof).

 

“TIA” means the Trust Indenture Act of 1939 (15 U.S.
Code §§ 77aaa-77bbbb) as in effect on the date of this Indenture; provided,
however, that in the event the Trust Indenture Act of 1939 is amended
after such date, “TIA” means, to the extent required by any such amendment, the
Trust Indenture Act as so amended.

 

“Trustee” means the person named as the “Trustee” in
the first paragraph of this instrument until a successor Trustee shall have
become such pursuant to the applicable provisions of this Indenture, and
thereafter “Trustee” shall mean each person who is then a Trustee hereunder,
and if at any time there is more than one such person, “Trustee” as used with
respect to the Securities of any Series shall mean the Trustee with
respect to Securities of that Series.

 

“Voting Stock” of any person as of any date means the
Capital Stock of such person that is at the time entitled to vote in the
election of the Board of Directors of such person.

 

Section 1.2.                                   Other Definitions.

 

	
   

  	
   

  	
  DEFINED IN

  
	
  TERM

  	
   

  	
  SECTION

  
	
   

  	
   

  	
   

  
	
  “Bankruptcy Law”

  	
   

  	
  6.1

  	
   

  
	
  “Custodian”

  	
   

  	
  6.1

  	
   

  
	
  “Event of Default”

  	
   

  	
  6.1

  	
   

  
	
  “Journal”

  	
   

  	
  11.1

  	
  5

  
	
  “Judgment Currency”

  	
   

  	
  11.1

  	
  6

  
	
  “Legal Holiday”

  	
   

  	
  11.7

  	
   

  
	
  “mandatory sinking fund
  payment”

  	
   

  	
  12.1

  	
   

  
	
  “Market Exchange Rate”

  	
   

  	
  11.1

  	
  5

  
	
  “New York Banking Day”

  	
   

  	
  11.1

  	
  6

  
	
  “optional sinking fund
  payment”

  	
   

  	
  12.1

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.4

  	
   

  
	
  “Payment Default”

  	
   

  	
  6.1

  	
   

  
	
  “Registrar”

  	
   

  	
  2.4

  	
   

  
	
  “Required Currency”

  	
   

  	
  11.1

  	
  6

  
	
  “Service Agent”

  	
   

  	
  2.4

  	
   

  

 

Section 1.3.                                   Incorporation by Reference of Trust Indenture Act.

 

Whenever this Indenture refers to a provision of the
TIA, the provision is incorporated by reference in and made a part of this
Indenture.  The following TIA terms used
in this Indenture have the following meanings:

 

7

 

“Commission” means the SEC.

 

“indenture securities” means the Securities.

 

“indenture security holder” means a Securityholder.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means
the Trustee.

 

“obligor” on the
indenture securities means the Company and any successor obligor upon the
Securities.

 

All other terms used in this Indenture that are
defined by the TIA, defined by TIA reference to another statute or defined by
SEC rule under the TIA and not otherwise defined herein are used herein as
so defined.

 

Section 1.4.                                   Rules of Construction.

 

Unless the context otherwise requires:

 

(a)                                  a term has the meaning assigned to it;

 

(b)                                 an accounting term not otherwise defined
has the meaning assigned to it in accordance with generally accepted accounting
principles;

 

(c)                                  references to “generally accepted
accounting principles” and “GAAP” shall mean generally accepted accounting
principles in effect as of the time when and for the period as to which such
accounting principles are to be applied;

 

(d)                                 “or” is not exclusive;

 

(e)                                  words in the singular include the plural,
and in the plural include the singular; and

 

(f)                                    provisions apply to successive events and
transactions.

 

ARTICLE II.

THE SECURITIES

 

Section 2.1.                                   Issuable in Series.

 

The aggregate principal amount of Securities that may
be authenticated and delivered under this Indenture is unlimited.  The Securities may be issued in one or more
Series. All Securities of a Series shall be identical except as may be set
forth in a Board Resolution, a supplemental indenture or an Officers’
Certificate detailing the adoption of the terms thereof pursuant to the
authority granted under a Board Resolution. In the case of Securities of a Series to
be issued from time to time, the Board Resolution, Officers’ Certificate or
supplemental indenture detailing the adoption of the terms thereof pursuant to
authority granted under a Board 

 

8

 

Resolution may provide
for the method by which specified terms (such as interest rate, maturity date,
record date or date from which interest shall accrue) are to be
determined.  Securities may differ
between Series in respect of any matters, provided that all Series of
Securities shall be equally and ratably entitled to the benefits of the
Indenture.

 

Section 2.2.                                   Establishment of Terms of Series of Securities.

 

At or prior to the issuance of any Securities within a
Series, the following shall be established (as to the Series generally, in
the case of Subsection 2.2.1 and either as to such Securities within the Series or
as to the Series generally in the case of Subsections 2.2.2 through
2.2.21) by or pursuant to a Board Resolution, and set forth or determined in
the manner provided in a Board Resolution, supplemental indenture or an
Officers’ Certificate pursuant to authority granted under a Board Resolution:

 

2.2.1.                                             the title of the Series (which shall
distinguish the Securities of that particular Series from the Securities
of any other Series);

 

2.2.2.                                             the price or prices (expressed as a
percentage of the principal amount thereof) at which the Securities of the Series will
be issued;

 

2.2.3.                                             any limit upon the aggregate principal
amount of the Securities of the Series which may be authenticated and
delivered under this Indenture (except for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of,
other Securities of the Series pursuant to Section 2.7, 2.8, 2.11,
3.6 or 9.6);

 

2.2.4.                                             the date or dates on which the principal
of the Securities of the Series is payable;

 

2.2.5.                                             the rate or rates (which may be fixed or
variable) per annum or, if applicable, the method used to determine such rate
or rates (including, but not limited to, any commodity, commodity index, stock
exchange index or financial index) at which the Securities of the Series shall
bear interest, if any, the date or dates from which such interest, if any, shall
accrue, the date or dates on which such interest, if any, shall commence and be
payable and any regular record date for the interest payable on any interest
payment date;

 

2.2.6.                                             the place or places where the principal
of and interest, if any, on the Securities of the Series shall be payable,
where the Securities of such Series may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Company in
respect of the Securities of such Series and this Indenture may be served,
and the method of such payment, if by wire transfer, mail or other means;

 

2.2.7.                                             if applicable, the period or periods
within which, the price or prices at which and the terms and conditions upon
which the Securities of the Series may be redeemed, in whole or in part,
at the option of the Company;

 

2.2.8.                                             the obligation, if any, of the Company to
redeem or purchase the Securities of the Series pursuant to any sinking
fund or analogous provisions or at the option of a Holder thereof and the period
or periods within which, the price or prices at which and the terms 

 

9

 

and conditions upon which Securities of the Series shall
be redeemed or purchased, in whole or in part, pursuant to such obligation;

 

2.2.9.                                             the dates, if any, on which and the price
or prices at which the Securities of the Series will be repurchased by the
Company at the option of the Holders thereof and other detailed terms and
provisions of such repurchase obligations;

 

2.2.10.                                       if other than denominations of $1,000 and
any integral multiple thereof, the denominations in which the Securities of the
Series shall be issuable;

 

2.2.11.                                       the forms of the Securities of the Series in
bearer or fully registered form (and, if in fully registered form, whether the
Securities will be issuable as Global Securities);

 

2.2.12.                                       if other than the principal amount
thereof, the portion of the principal amount of the Securities of the Series that
shall be payable upon declaration of acceleration of the maturity thereof
pursuant to Section 6.2;

 

2.2.13.                                       the currency of denomination of the
Securities of the Series, which may be Dollars or any Foreign Currency,
including, but not limited to, the ECU, and if such currency of denomination is
a composite currency other than the ECU, the agency or organization, if any,
responsible for overseeing such composite currency;

 

2.2.14.                                       the designation of the currency,
currencies or currency units in which payment of the principal of and interest,
if any, on the Securities of the Series will be made;

 

2.2.15.                                       if payments of principal of or interest,
if any, on the Securities of the Series are to be made in one or more
currencies or currency units other than that or those in which such Securities
are denominated, the manner in which the exchange rate with respect to such
payments will be determined;

 

2.2.16.                                       the manner in which the amounts of
payment of principal of or interest, if any, on the Securities of the Series will
be determined, if such amounts may be determined by reference to an index based
on a currency or currencies or by reference to a commodity, commodity index,
stock exchange index or financial index;

 

2.2.17.                                       the provisions, if any, relating to any
security or guarantee provided for the Securities of the Series, and any
subordination in right of payment, if any, of the Securities of the Series;

 

2.2.18.                                       any addition to or change in the Events
of Default which applies to any Securities of the Series and any change in
the right of the Trustee or the requisite Holders of such Securities to declare
the principal amount thereof due and payable pursuant to Section 6.2;

 

2.2.19.                                       any addition to or change in the
covenants set forth in Articles IV or V which applies to Securities of the
Series;

 

10

 

 

2.2.20.                                       any other terms of the Securities of the Series (which
may modify or delete any provision of this Indenture insofar as it applies to
such Series); and

 

2.2.21.                                       any depositories, interest rate
calculation agents, exchange rate calculation agents or other agents with
respect to Securities of such Series if other than those appointed herein.

 

All Securities of any one Series need not be
issued at the same time and may be issued from time to time, consistent with
the terms of this Indenture, if so provided by or pursuant to the Board
Resolution, supplemental indenture hereto or Officers’ Certificate referred to
above, and the authorized principal amount of any Series may not be
increased to provide for issuances of additional Securities of such Series, unless
otherwise provided in such Board Resolution, supplemental indenture or Officers’
Certificate.

 

Section 2.3.                                   Execution and Authentication.

 

Two Officers shall sign the Securities for the Company
by manual or facsimile signature.

 

If an Officer whose signature is on a Security no
longer holds that office at the time the Security is authenticated, the
Security shall nevertheless be valid.

 

A Security shall not be valid until authenticated by
the manual signature of the Trustee or an authenticating agent.  The signature shall be conclusive evidence
that the Security has been authenticated under this Indenture.

 

The Trustee shall at any time, and from time to time,
authenticate Securities for original issue in the principal amount provided in
the Board Resolution, supplemental indenture hereto or Officers’ Certificate,
upon receipt by the Trustee of a Company Order. 
Such Company Order may authorize authentication and delivery pursuant to
oral or electronic instructions from the Company or its duly authorized agent
or agents, which oral instructions shall be promptly confirmed in writing.  Each Security shall be dated the date of its
authentication unless otherwise provided by a Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate.

 

The aggregate principal amount of Securities of any Series outstanding
at any time may not exceed any limit upon the maximum principal amount for such
Series set forth in the Board Resolution, supplemental indenture hereto or
Officers’ Certificate delivered pursuant to Section 2.2, except as
provided in Section 2.8.

 

Prior to the issuance of Securities of any Series, the
Trustee shall have received and (subject to Section 7.2) shall be fully
protected in relying on:  (a) the
Board Resolution, supplemental indenture hereto or Officers’ Certificate
establishing the form of the Securities of that Series or of Securities
within that Series and the terms of the Securities of that Series or
of Securities within that Series, (b) an Officers’ Certificate complying with
Section 11.4, and (c) an Opinion of Counsel complying with Section 11.4.

 

The Trustee shall have the right to decline to
authenticate and deliver any Securities of such Series: (a) if the
Trustee, being advised by counsel, determines that such 

 

11

 

action may not be taken
lawfully; or (b) if the Trustee in good faith by its board of directors or
trustees, executive committee or a trust committee of directors and/or
vice-presidents shall determine that such action would expose the Trustee to
personal liability to Holders of any then outstanding Series of
Securities.

 

The Trustee may appoint an authenticating agent
acceptable to the Company to authenticate Securities.  An authenticating agent may authenticate
Securities whenever the Trustee may do so. 
Each reference in this Indenture to authentication by the Trustee
includes authentication by such agent. 
An authenticating agent has the same rights as an Agent to deal with the
Company or an Affiliate of the Company.

 

Section 2.4.                                   Registrar and Paying Agent.

 

The Company shall maintain, with respect to each Series of
Securities, at the place or places specified with respect to such Series pursuant
to Section 2.2, an office or agency where Securities of such Series may
be presented or surrendered for payment (“Paying Agent”), where Securities of
such Series may be surrendered for registration of transfer or exchange (“Registrar”)
and where notices and demands to or upon the Company in respect of the Securities
of such Series and this Indenture may be served (“Service Agent”).  The Registrar shall keep a register with
respect to each Series of Securities and to their transfer and
exchange.  The Company will give prompt
written notice to the Trustee of the name and address, and any change in the
name or address, of each Registrar, Paying Agent or Service Agent.  If at any time the Company shall fail to
maintain any such required Registrar, Paying Agent or Service Agent or shall
fail to furnish the Trustee with the name and address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

 

The Company may also from time to time designate one
or more co-registrars, additional paying agents or additional service agents
and may from time to time rescind such designations; provided, however,
that no such designation or rescission shall in any manner relieve the Company
of its obligations to maintain a Registrar, Paying Agent and Service Agent in
each place so specified pursuant to Section 2.2 for Securities of any Series for
such purposes.  The Company will give
prompt written notice to the Trustee of any such designation or rescission and
of any change in the name or address of any such co-registrar, additional
paying agent or additional service agent. 
The term “Registrar” includes any co-registrar; the term “Paying Agent”
includes any additional paying agent; and the term “Service Agent” includes any
additional service agent.

 

The Company hereby appoints the Trustee the initial
Registrar, Paying Agent and Service Agent for each Series unless another
Registrar, Paying Agent or Service Agent, as the case may be, is appointed
prior to the time Securities of that Series are first issued.

 

Section 2.5.                                   Paying Agent to Hold Money in Trust.

 

The Company shall require each Paying Agent other than
the Trustee to agree in writing that the Paying Agent will hold in trust, for
the benefit of Securityholders of any Series 

 

12

 

of Securities, or the
Trustee, all money held by the Paying Agent for the payment of principal of or
interest on the Series of Securities, and will notify the Trustee of any
default by the Company in making any such payment.  While any such default continues, the Trustee
may require a Paying Agent to pay all money held by it to the Trustee.  The Company at any time may require a Paying
Agent to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the Paying
Agent (if other than the Company or a Subsidiary of the Company) shall have no
further liability for the money.  If the
Company or a Subsidiary of the Company acts as Paying Agent, it shall segregate
and hold in a separate trust fund for the benefit of Securityholders of any Series of
Securities all money held by it as Paying Agent.

 

Section 2.6.                                   Securityholder Lists.

 

The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of Securityholders of each Series of Securities and shall
otherwise comply with TIA  § 312(a).  If the Trustee is not the Registrar, the
Company shall furnish to the Trustee at least ten days before each interest
payment date and at such other times as the Trustee may request in writing a
list, in such form and as of such date as the Trustee may reasonably require,
of the names and addresses of Securityholders of each Series of
Securities.

 

Section 2.7.                                   Transfer and Exchange.

 

Where Securities of a Series are presented to the
Registrar or a co-registrar with a request to register a transfer or to
exchange them for an equal principal amount of Securities of the same Series,
the Registrar shall register the transfer or make the exchange if its
requirements for such transactions are met. 
To permit registrations of transfers and exchanges, the Trustee shall
authenticate Securities at the Registrar’s request.  No service charge shall be made for any
registration of transfer or exchange (except as otherwise expressly permitted
herein), but the Company may require payment of a sum sufficient to cover any
transfer tax or similar governmental charge payable in connection therewith
(other than any such transfer tax or similar governmental charge payable upon
exchanges pursuant to Sections 2.11, 3.6 or 9.6).

 

Neither the Company nor the Registrar shall be
required (a) to issue, register the transfer of, or exchange Securities of
any Series for the period beginning at the opening of business fifteen
days immediately preceding the mailing of a notice of redemption of Securities
of that Series selected for redemption and ending at the close of business
on the day of such mailing, or (b) to register the transfer of or exchange
Securities of any Series selected, called or being called for redemption
as a whole or the portion being redeemed of any such Securities selected,
called or being called for redemption in part.

 

Section 2.8.                                   Mutilated, Destroyed, Lost and Stolen Securities.

 

If any mutilated Security is surrendered to the
Trustee, the Company shall execute and the Trustee shall authenticate and make
available for delivery in exchange therefor a new Security  of the same Series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding.

 

13

 

If there shall be delivered to the Company and the
Trustee (i) evidence to their satisfaction of the destruction, loss or
theft of any Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless,
then, in the absence of notice to the Company or the Trustee that such Security
has been acquired by a bona fide purchaser, the Company shall execute and upon
its request the Trustee shall authenticate and make available for delivery, in
lieu of any such destroyed, lost or stolen Security, a new Security of the same
Series and of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost or stolen
Security has become or is about to become due and payable, the Company in its
discretion may, instead of issuing a new Security, pay such Security.

 

Upon the issuance of any new Security under this
Section, the Company may require the payment of a sum sufficient to cover any
tax or other governmental charge that may be imposed in relation thereto and
any other expenses (including the fees and expenses of the Trustee) connected
therewith.

 

Every new Security of any Series issued pursuant
to this Section in lieu of any destroyed, lost or stolen Security shall
constitute an original additional contractual obligation of the Company,
whether or not the destroyed, lost or stolen Security shall be at any time
enforceable by anyone, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Securities of that
Series duly issued hereunder.

 

The provisions of this Section are exclusive and
shall preclude (to the extent lawful) all other rights and remedies with
respect to the replacement or payment of mutilated, destroyed, lost or stolen
Securities.

 

Section 2.9.                                   Outstanding Securities.

 

Subject to Section 2.10,
the Securities outstanding at any time are all the Securities authenticated by
the Trustee except for those canceled by it, those delivered to it for
cancellation, those reductions in the interest on a Global Security effected by
the Trustee in accordance with the provisions hereof and those described in
this Section as not outstanding.

 

If a Security is replaced pursuant to Section 2.8,
it ceases to be outstanding until the Trustee receives proof satisfactory to it
that the replaced Security is held by a bona fide purchaser.

 

If the Paying Agent (other than the Company, a
Subsidiary of the Company or an Affiliate of the Company) holds on the Maturity
of Securities of a Series money sufficient to pay such Securities payable
on that date, then on and after that date such Securities of the Series cease
to be outstanding and interest on them ceases to accrue.

 

Notwithstanding Section 2.10, a Security does not
cease to be outstanding because the Company or an Affiliate of the Company
holds the Security.

 

14

 

In determining whether the Holders of the requisite
principal amount of outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, the principal
amount of a Discount Security that shall be deemed to be outstanding for such
purposes shall be the amount of the principal thereof that would be due and
payable as of the date of such determination upon a declaration of acceleration
of the Maturity thereof pursuant to Section 6.2.

 

Section 2.10.                             Treasury Securities.

 

In determining whether the Holders of the required
principal amount of Securities of a Series have concurred in any request,
demand, authorization, direction, notice, consent or waiver Securities of a Series owned
by the Company or an Affiliate of the Company shall be disregarded, except that
for the purposes of determining whether the Trustee shall be protected in
relying on any such request, demand, authorization, direction, notice, consent
or waiver only Securities of a Series that a Responsible Officer of the
Trustee actually knows are so owned shall be so disregarded.

 

Section 2.11.                             Temporary Securities.

 

Until definitive Securities are ready for delivery,
the Company may prepare and the Trustee shall authenticate temporary Securities
upon a Company Order.  Temporary
Securities shall be substantially in the form of definitive Securities but may
have variations that the Company considers appropriate for temporary Securities.  Without unreasonable delay, the Company shall
prepare and the Trustee upon request shall authenticate definitive Securities
of the same Series and date of maturity in exchange for temporary
Securities.  Until so exchanged,
temporary securities shall have the same rights under this Indenture as the
definitive Securities.

 

Section 2.12.                             Cancellation.

 

The Company at any time may deliver Securities to the
Trustee for cancellation.  The Registrar
and the Paying Agent shall forward to the Trustee any Securities surrendered to
them for registration of transfer, exchange or payment.  The Trustee shall cancel all Securities
surrendered for transfer, exchange, payment, replacement or cancellation and
dispose of such canceled Securities in its customary manner, including delivery
of a certificate describing such Securities disposed, unless the Company
directs in writing that the canceled Securities be returned to it.  The Company may not issue new Securities to
replace Securities that it has paid or delivered to the Trustee for
cancellation.

 

Section 2.13.                             Defaulted Interest.

 

If the Company defaults in a payment of interest on a Series of
Securities, it shall pay the defaulted interest, plus, to the extent permitted
by law, any interest payable on the defaulted interest, to the persons who are
Securityholders of the Series on a subsequent special record date.  The Company shall fix the record date and
payment date.  At least 10 days before
the record date, the Company shall mail to the Trustee and to each Securityholder
of the Series a notice that states the record date, the payment date and
the amount of interest to be paid.  The
Company may pay defaulted interest in any other lawful manner.

 

15

 

Section 2.14.                             Global Securities.

 

2.14.1.                                       Terms of Securities. 
A Board Resolution, a supplemental indenture hereto or an Officers’
Certificate shall establish whether the Securities of a Series shall be
issued in whole or in part in the form of one or more Global Securities and the
Depository for such Global Security or Securities.

 

2.14.2.                                       Transfer and Exchange. 
Notwithstanding any provisions to the contrary contained in Section 2.7
of the Indenture and in addition thereto, any Global Security shall be
exchangeable pursuant to Section 2.7 of the Indenture for Securities
registered in the names of Holders other than the Depository for such Security
or its nominee only if (i) such Depository notifies the Company that it is
unwilling or unable to continue as Depository for such Global Security or if at
any time such Depository ceases to be a clearing agency registered under the
Exchange Act, and, in either case, the Company fails to appoint a successor
Depository registered as a clearing agency under the Exchange Act within 90
days of such event, (ii) the Company executes and delivers to the Trustee
an Officers’ Certificate to the effect that such Global Security shall be so
exchangeable or (iii) an Event of Default with respect to the Securities
represented by such Global Security shall have happened and be continuing.  Any Global Security that is exchangeable
pursuant to the preceding sentence shall be exchangeable for Securities
registered in such names as the Depository shall direct in writing in an
aggregate principal amount equal to the principal amount of the Global Security
with like tenor and terms.

 

Except as provided in this Section 2.14.2, a
Global Security may not be transferred except as a whole by the Depository with
respect to such Global Security to a nominee of such Depository, by a nominee
of such Depository to such Depository or another nominee of such Depository or
by the Depository or any such nominee to a successor Depository or a nominee of
such a successor Depository.

 

2.14.3.                                       Legend.  Any Global
Security issued hereunder shall bear a legend in substantially the following
form:

 

“This Security is a Global Security within the meaning
of the Indenture hereinafter referred to and is registered in the name of the
Depository or a nominee of the Depository. 
This Security is exchangeable for Securities registered in the name of a
person other than the Depository or its nominee only in the limited
circumstances described in the Indenture, and may not be transferred except as
a whole by the Depository to a nominee of the Depository, by a nominee of the
Depository to the Depository or another nominee of the Depository or by the
Depository or any such nominee to a successor Depository or a nominee of such a
successor Depository.”

 

2.14.4.                                       Acts of Holders. 
The Depository, as a Holder, may appoint agents and otherwise authorize
participants to give or take any request, demand, authorization, direction,
notice, consent, waiver or other action which a Holder is entitled to give or
take under the Indenture.

 

16

 

2.14.5.                                       Payments. 
Notwithstanding the other provisions of this Indenture, unless otherwise
specified as contemplated by Section 2.2, payment of the principal of and
interest, if any, on any Global Security shall be made to the Holder thereof.

 

2.14.6.                                       Consents, Declaration and Directions. 
Except as provided in Section 2.14.5, the Company, the Trustee and
any Agent shall treat a person as the Holder of such principal amount of
outstanding Securities of such Series represented by a Global Security as
shall be specified in a written statement of the Depository with respect to
such Global Security, for purposes of obtaining any consents, declarations,
waivers or directions required to be given by the Holders pursuant to this
Indenture.

 

Section 2.15.                             CUSIP Numbers.

 

The Company in issuing the Securities may use “CUSIP”
numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP”
numbers in notices of redemption as a convenience to Holders; provided
that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Securities or as contained
in any notice of a redemption and that reliance may be placed only on the other
elements of identification printed on the Securities, and any such redemption
shall not be affected by any defect in or omission of such numbers.

 

ARTICLE III.

REDEMPTION

 

Section 3.1.                                   Notice to Trustee.

 

The Company may, with respect to any Series of
Securities, reserve the right to redeem and pay the Series of Securities
or may covenant to redeem and pay the Series of Securities or any part
thereof prior to the Stated Maturity thereof at such time and on such terms as
provided for in such Securities.  If a Series of
Securities is redeemable and the Company wants or is obligated to redeem prior
to the Stated Maturity thereof all or part of the Series of Securities
pursuant to the terms of such Securities, it shall notify the Trustee of the
redemption date and the principal amount of Series of Securities to be
redeemed.  The Company shall give the
notice at least 15 days before the date of giving of the notice of redemption
(or such shorter notice as may be acceptable to the Trustee).

 

Section 3.2.                                   Selection of Securities to be Redeemed or Repurchased.

 

Unless otherwise indicated for a particular Series by
a Board Resolution, a supplemental indenture or an Officers’ Certificate, if
less than all the Securities of a Series are to be redeemed or
repurchased, the Trustee shall select the Securities of the Series to be
redeemed or repurchased on a pro rata
basis unless otherwise required by law or applicable stock exchange
requirements.

 

In the event of partial redemption or purchase by lot,
the Trustee shall make the selection from Securities of the Series outstanding
not previously called for redemption or repurchase.  The Trustee may select for redemption or
repurchase portions of the principal of Securities of the Series that have
denominations larger than $2,000. 
Securities of the Series and 

 

17

 

portions of them it
selects shall be in amounts of $2,000 or whole multiples of $1,000 or, with
respect to Securities of any Series issuable in other denominations
pursuant to Section 2.2.10, the minimum principal denomination for each Series and
integral multiples thereof.  Provisions
of this Indenture that apply to Securities of a Series called for
redemption or repurchase also apply to portions of Securities of that Series called
for redemption or repurchase.

 

Section 3.3.                                   Notice of Redemption.

 

Unless otherwise indicated for a particular Series by
Board Resolution, a supplemental indenture hereto or an Officers’ Certificate,
at least 30 days but not more than 60 days before a redemption date, the Company
shall mail a notice of redemption by first-class mail to each Holder whose
Securities are to be redeemed and if any Bearer Securities are outstanding,
publish on one occasion a notice in an Authorized Newspaper, except that
redemption notices may be mailed more than 60 days prior to a redemption date
if the notice is issued in connection with a defeasance of the Securities or a
satisfaction and discharge of this Indenture pursuant to Articles 8 or 10
hereof.

 

The notice shall identify the Securities of the Series to
be redeemed and shall state:

 

(a)                                  the redemption date;

 

(b)                                 the redemption price;

 

(c)                                  the name and address of the Paying Agent;

 

(d)                                 that Securities of the Series called
for redemption must be surrendered to the Paying Agent to collect the redemption
price;

 

(e)                                  that interest on Securities of the Series called
for redemption ceases to accrue on and after the redemption date;

 

(f)                                    the CUSIP number, if any; and

 

(g)                                 any other information as may be required
by the terms of the particular Series or the Securities of a Series being
redeemed.

 

At the Company’s request, the Trustee shall give the
notice of redemption in the Company’s name and at its expense; provided  however,
that the Trustee is given at least 15 days prior notice of the date of the
giving of such notice.

 

Section 3.4.                                   Effect of Notice of Redemption.

 

Once notice of redemption is mailed or published as
provided in Section 3.3, Securities of a Series called for redemption
become due and payable on the redemption date and at the redemption price.  A notice of redemption may not be
conditional.  Upon surrender to the
Paying Agent, such Securities shall be paid at the redemption price plus
accrued interest to the redemption date; provided that installments of
interest whose Stated Maturity is on or prior to the 

 

18

 

redemption date shall be
payable to the Holders of such Securities (or one or more predecessor
Securities) registered at the close of business on the relevant record date
therefor according to their terms and the terms of this Indenture.

 

Section 3.5.                                   Deposit of Redemption Price.

 

On or before the redemption date, the Company shall
deposit with the Paying Agent money sufficient to pay the redemption price of
and accrued interest, if any, on all Securities to be redeemed on that date.

 

Section 3.6.                                   Securities Redeemed in Part.

 

Upon surrender of a Security that is redeemed in part,
the Trustee shall authenticate for the Holder a new Security of the same Series and
the same maturity equal in principal amount to the unredeemed portion of the
Security surrendered.

 

ARTICLE IV.

COVENANTS

 

Section 4.1.                                   Payment of Principal and Interest.

 

The Company covenants and agrees for the benefit of
the Holders of each Series of Securities that it will pay or cause to be
paid the principal of, premium, if any, and interest on, the Securities of that
Series on the dates and in the manner provided in such Securities.  Principal, premium, if any, and interest on
any Series of Securities will be considered paid on the date due if the
Paying Agent, if other than the Company or a Subsidiary thereof, holds as of
10:00 a.m. Eastern Time on the due date money deposited by the Company in
immediately available funds and designated for and sufficient to pay all principal,
premium, if any, and interest then due.

 

Section 4.2.                                   Maintenance of Office or Agency.

 

The Company covenants and agrees for the benefit of
the Holders of each Series of Securities that it will maintain in the
Borough of Manhattan, the City of New York, an office or agency (which may be
an office of the Trustee for such Securities or an affiliate of such Trustee,
Registrar for such Securities or co-registrar) where such Securities may be
surrendered for registration of transfer or for exchange and where notices and
demands to or upon the Company in respect of such Securities and this Indenture
may be served.  The Company will give
prompt written notice to the Trustee for such Securities of the location, and any
change in the location, of such office or agency.  If at any time the Company fails to maintain
any such required office or agency or fails to furnish such Trustee with the
address thereof, such presentations, surrenders, notices and demands may be
made or served at the Corporate Trust Office of such Trustee.

 

The Company may also from time to time designate one
or more other offices or agencies where Holders of a Series of Securities
may be presented or surrendered for any or all such purposes and may from time
to time rescind such designations; provided, however, that no
such designation or rescission will in any manner relieve the Company of its
obligation to 

 

19

 

maintain an office or
agency in the Borough of Manhattan, the City of New York for such
purposes.  The Company will give prompt
written notice to the Trustee for such Series of Securities of any such
designation or rescission and of any change in the location of any such other
office or agency.

 

With respect to each Series of Securities, the
Company hereby designates the Corporate Trust Office of the Trustee for such
Securities as one such office or agency of the Company in accordance with Section 2.5
hereof.

 

Section 4.3.                                   SEC Reports.

 

(a)                                  Whether or not required by the Comission’s
rules and regulations, so long as any Series of Securities are
outstanding, the Company will furnish to the Holders of such Securities or
cause the Trustee with respect to such Series of Securities to furnish to
the Holders of such Securities, within the time periods (including any
extensions thereof) specified in the Commission’s rules and regulations:

 

(1)                                  all quarterly and annual reports that
would be required to be filed with the Commission on Forms 10-Q and 10-K if the
Company were required to file reports; and

 

(2)                                  all current reports that would be
required to be filed with the SEC on Form 8-K if the Company were required
to file such reports.

 

All such reports will be prepared in all material
respects in accordance with all of the rules and regulations applicable to
such reports.  Each annual report on Form 10-K
will include a report on the Company’s consolidated financial statements by the
Company’s independent registered public accounting firm.  In addition, the Company will file a copy of
each of the reports referred to in clauses (1) and (2) above with the
Commission for public availability within the time periods specified in the rules and
regulations applicable to such reports (unless the SEC will not accept such a
filing); provided, however, that the availability of the
foregoing materials on SEC’s EDGAR service or on the Company’s website shall be
deemed to satisfy the Company’s delivery obligations under this Section 4.3(a).

 

If the Company is no longer subject to the periodic
reporting requirements of the Exchange Act for any reason, the Company will
nevertheless continue filing the reports specified in the preceding paragraph
with the Commission within the time periods specified above unless the
Commission will not accept such a filing. 
The Company will not take any action for the purpose of causing the
Commission not to accept any such filings. 
If, notwithstanding the foregoing, the Commission will not accept the
Company’s filings for any reason, the Company will post the reports referred to
in the preceding paragraph on its website within the time periods that would
apply if the Company were required to file those reports with the Commission.

 

(b)                                 For so long as any Series of
Securities remain outstanding, if at any time they are not required to file
with the Commission the reports required by paragraphs (a) and (b) of
this Section 4.3, the Company and any guarantors of such Securities will
furnish to the Holders of such Securities and to securities analysts and
prospective investors, upon their request, the information required to be
delivered pursuant to Rule 144A(d)(4) under the Securities Act.

 

20

 

(c)                                  Delivery of such reports, information and
documents to the Trustee is for informational purposes only and the Trustee’s
receipt of such shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including
the Company’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers’ Certificates).

 

Section 4.4.                                   Compliance Certificate.

 

(a)                                  The Company and each guarantor of any Series of
Securities (to the extent that such guarantor is so required under the TIA)
shall deliver to the Trustee with respect to such Series, within 90 days after
the end of each fiscal year, an Officers’ Certificate stating that a review of
the activities of the Company and its Subsidiaries during the preceding fiscal
year has been made under the supervision of the signing Officers with a view to
determining whether the Company has kept, observed, performed and fulfilled its
obligations under this Indenture, and further stating, as to each such Officer
signing such certificate, that to the best of his or her knowledge the Company
has kept, observed, performed and fulfilled each and every covenant contained
in this Indenture and is not in default in the performance or observance of any
of the terms, provisions and conditions of this Indenture (or, if a Default or
Event of Default has occurred, describing all such Defaults or Events of
Default of which he or she may have knowledge and what action the Company is taking
or proposes to take with respect thereto) and that to the best of his or her
knowledge no event has occurred and remains in existence by reason of which
payments on account of the principal of or interest, if any, on the Securities
is prohibited or if such event has occurred, a description of the event and
what action the Company is taking or proposes to take with respect thereto.

 

(b)                                 So long as any of Series of
Securities are outstanding, the Company will deliver to the Trustee with
respect to such Series, forthwith upon any Officer becoming aware of any
Default or Event of Default, an Officers’ Certificate specifying such Default
or Event of Default and what action the Company is taking or proposes to take
with respect thereto.

 

Section 4.5.                                   Taxes.

 

The Company will pay, and will cause each of its
Subsidiaries to pay, prior to delinquency, all material taxes, assessments, and
governmental levies except such as are contested in good faith and by
appropriate proceedings or where the failure to effect such payment is not
adverse in any material respect to the Holders of such Securities.

 

Section 4.6.                                   Stay, Extension and Usury Laws.

 

The Company covenants and agrees (to the extent that
it may lawfully do so), that it will not, and each guarantor of such Securities
will not, at any time insist upon, plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay, extension or usury law wherever
enacted, now or at any time hereafter in force, that may affect the covenants
or the performance of this Indenture; and the Company and each of such
guarantors (to the extent that it may lawfully do so), as applicable, hereby
expressly waives all benefit or advantage of any such law, and covenants that
it will not, by resort to any such law, hinder, delay or impede the 

 

21

 

execution of any power
herein granted to the Trustee for such Securities, but will suffer and permit
the execution of every such power as though no such law has been enacted.

 

Section 4.7.                                   Corporate Existence.

 

Subject to Article V hereof, the Company shall do
or cause to be done all things necessary to preserve and keep in full force and
effect:

 

(1)                                  its corporate existence, and the
corporate, partnership or other existence of each of its Subsidiaries, in
accordance with the respective organizational documents (as the same may be
amended from time to time) of the Company or any such Subsidiary; and

 

(2)                                  the rights (charter and statutory),
licenses and franchises of the Company and its Subsidiaries

 

provided, however, that the Company shall
not be required to preserve any such right, license or franchise, or the
corporate, partnership or other existence of any of its Subsidiaries, if the
Board of Directors shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company and its Subsidiaries,
taken as a whole, and that the loss thereof is not adverse in any material
respect to the Holders of such Securities.

 

ARTICLE V.

SUCCESSORS

 

Section 5.1.                                   Merger, Consolidation, or Sale of Assets.

 

The Company covenants and agrees for the benefit of
the Holders of each Series of Securities that it shall not, directly or
indirectly: (i) consolidate or merge with or into another person (whether
or not the Company is the surviving corporation); or (2) sell, assign,
transfer, convey or otherwise dispose of all or substantially all of the
properties or assets of the Company and its Subsidiaries taken as a whole, in
one or more related transactions, to another person, unless:

 

(1)                                  either:

 

(A)                              the Company is the surviving corporation;
or

 

(B)                                the person formed by or surviving any
such consolidation or merger (if other than the Company) or to which such sale,
assignment, transfer, conveyance or other disposition has been made is a
corporation, partnership or limited liability company organized or existing
under the laws of the United States, any state of the United States or the
District of Columbia; provided that
if the Person is a partnership or limited liability company, then a corporation
wholly-owned by such Person organized or existing under the laws of the United
States, any state of the United States or the District of Columbia that does
not and will not have any material assets or operations shall become a
co-issuer of the Securities pursuant to a supplemental indenture duly executed
by the Trustee;

 

22

 

(2)                                  the person formed by or surviving any
such consolidation or merger (if other than the Company) or the person to which
such sale, assignment, transfer, conveyance or other disposition has been made
assumes all the obligations of the Company under such Securities and this
Indenture pursuant to agreements reasonably satisfactory to the Trustee for such
Securities; and

 

(3)                                  immediately after such transaction, no
Default or Event of Default exists.

 

In addition, the Company will not, directly or
indirectly, lease all or substantially all of its properties or assets, in one
or more related transactions, to any other person.  This Section 5.1 will not apply to:

 

(1)                                  a merger of the Company with an Affiliate
solely for the purpose of reincorporating the Company in another jurisdiction
or forming a direct holding company of the Company; or

 

(2)                                  any sale, transfer, assignment,
conveyance, lease or other disposition of assets between or among the Company
and its Subsidiaries, including by way of merger or consolidation.

 

Section 5.2.                                   Successor Corporation Substituted.

 

Upon any consolidation or merger, or any sale,
assignment, transfer, lease, conveyance or other disposition of all or
substantially all of the properties or assets of the Company in a transaction
that is subject to, and that complies with the provisions of, Section 5.1
hereof, the successor person formed by such consolidation or into or with which
the Company is merged or to which such sale, assignment, transfer, lease,
conveyance or other disposition is made shall succeed to, and be substituted
for (so that from and after the date of such consolidation, merger, sale,
assignment, transfer, lease, conveyance or other disposition, the provisions of
this Indenture referring to the “Company” shall refer instead to the successor
person and not to the Company), and may exercise every right and power of the
Company under this Indenture with the same effect as if such successor person
had been named as the Company herein; provided, however, that the
predecessor Company shall not be relieved from the obligation to pay the
principal of and interest on any Series of Securities except in the case
of a sale of all of the Company’s assets in a transaction that is subject to,
and that complies with the provisions of, Section 5.1 hereof.

 

ARTICLE VI.

DEFAULTS AND REMEDIES

 

Section 6.1.                                   Events of Default.

 

“Event of Default,” wherever used herein with respect
to Securities of any Series, means any one of the following events, unless in
the establishing Board Resolution, supplemental indenture or Officers’
Certificate, it is provided that such Series shall not have the benefit of
said Event of Default:

 

23

 

(a)                                  default in the payment of any interest on
any Security of that Series when it becomes due and payable, and
continuance of such default for a period of 30 days; or

 

(b)                                 default in payment when due of the
principal of, or premium, if any, on any Security of that Series; or

 

(c)                                  default in the deposit of any sinking
fund payment, when and as due in respect of any Security of that Series; or

 

(d)                                 default in the performance or breach of
any covenant or warranty of the Company in this Indenture (other than a
covenant or warranty that has been included in this Indenture solely for the
benefit of Series of Securities other than that Series), which default
continues uncured for a period of 30 days after written notice given by the
Trustees for such Securities or Holders of such Securities; or

 

(e)                                  default under any mortgage, indenture or
instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by the Company or any of its
Subsidiaries (or the payment of which is guaranteed by the Company or any of
its Subsidiaries) whether such Indebtedness or guarantee now exists, or is
created after the date of the indenture, if that default:

 

(i)                                     is caused by a failure to pay principal
of, or interest or premium, if any, on such Indebtedness prior to the
expiration of the grace period provided in such Indebtedness on the date of
such default (a “Payment Default”); or

 

(ii)                                  results in the acceleration of such
Indebtedness prior to its express maturity,

 

and, in each case,
the principal amount of any such Indebtedness, together with the principal
amount of any other such Indebtedness under which there has been a Payment
Default or the maturity of which has been so accelerated, aggregates $10
million or more;

 

(f)                                    one or more judgments for the payment of
money in an aggregate amount in excess of $10 million (excluding therefrom any
amount reasonably expected to be covered by insurance) shall be rendered
against the Company any Restricted Subsidiary or any combination thereof and
the same shall not have been paid, discharged or stayed for a period of 60 days
after such judgment became final and nonappealable;

 

(g)                                 the Company pursuant to or within the
meaning of any Bankruptcy Law:

 

(i)                                     commences a voluntary case,

 

(ii)                                  consents to the entry of an order for
relief against it in an involuntary case,

 

(iii)                               consents to the appointment of a Custodian of it or
for all or substantially all of its property,

 

24

 

(iv)                              makes a general assignment for the
benefit of its creditors, or

 

(v)                                 generally is unable to pay its debts as
the same become due; or

 

(h)                                 a court of competent jurisdiction enters an
order or decree under any Bankruptcy Law that:

 

(i)                                     is for relief against the Company in an
involuntary case,

 

(ii)                                  appoints a Custodian of the Company or
for all or substantially all of its property, or

 

(iii)                               orders the liquidation of the Company, and the order
or decree remains unstayed and in effect for 60 days; or

 

(i)                                     any other Event of Default provided with
respect to Securities of that Series, which is specified in a Board Resolution,
a supplemental indenture hereto or an Officers’ Certificate, in accordance with
Section 2.2.18.

 

The term “Bankruptcy Law” means title 11, U.S. Code or
any similar Federal or State law for the relief of debtors.  The term “Custodian” means any receiver,
trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

Section 6.2.                                   Acceleration.

 

If an Event of Default with respect to Securities of
any Series at the time outstanding occurs and is continuing (other than an
Event of Default referred to in Section 6.1(g) or (h)) then in every
such case the Trustee or the Holders of not less than 25% in principal amount
of the outstanding Securities of that Series may declare the principal
amount (or, if any Securities of that Series are Discount Securities, such
portion of the principal amount as may be specified in the terms of such
Securities) of and accrued and unpaid interest, if any, on all of the
Securities of that Series to be due and payable immediately, by a notice
in writing to the Company (and to the Trustee if given by Holders), and upon
any such declaration such principal amount (or specified amount) and accrued
and unpaid interest, if any, shall become immediately due and payable.  If an Event of Default specified in Section 6.1(g) or
(h) shall occur, the principal amount (or specified amount) of and accrued
and unpaid interest, if any, on all outstanding Securities shall ipso facto become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any Holder.

 

At any time after such a declaration of acceleration
with respect to any Series has been made, the Holders of a majority in
principal amount of the outstanding Securities of that Series, by written
notice to the Company and the Trustee, may rescind and annul such declaration
and its consequences if the rescission would not conflict with any judgment or
decree and if all existing Events of Default (except nonpayment of principal,
interest or premium that has become due solely because of the acceleration)
have been cured or waived.

 

No such rescission shall affect any subsequent Default
or impair any right consequent thereon.

 

25

 

Section 6.3.                                   Other Remedies.

 

If an Event of Default with respect to Securities of
any Series at the time outstanding occurs and is continuing, the Trustee
may pursue any available remedy to collect the payment of principal, premium,
if any, and interest on such Securities or to enforce the performance of any
provision of such Securities or this Indenture.

 

The Trustee for such Securities may maintain a
proceeding even if it does not possess any of such Securities or does not
produce any of them in the proceeding.  A
delay or omission by the Trustee or any Holder of Securities in exercising any
right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default.  All remedies are cumulative to the extent
permitted by law.

 

Section 6.4.                                   Waiver of Past Defaults.

 

Holders of not less than a majority in aggregate
principal amount of the then outstanding Securities of any Series by
notice to the Trustee for such Securities may on behalf of the Holders of all
of such Securities waive an existing Default or Event of Default with respect
to such Securities and its consequences hereunder, except a continuing Default
or Event of Default in the payment of the principal of, premium, if any, or
interest on, such Securities (including in connection with an offer to
purchase); provided, however, that the Holders of a majority in
aggregate principal amount of the then outstanding Securities of any Series may
rescind an acceleration of such Securities and its consequences, including any
related payment default that resulted from such acceleration.  Upon any such waiver, such Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to
have been cured for every purpose of this Indenture; but no such waiver shall
extend to any subsequent or other Default or impair any right consequent
thereon.

 

Section 6.5.                                   Control by Majority.

 

Holders of a majority in aggregate principal amount of
the then outstanding Securities of any Series may direct the time, method
and place of conducting any proceeding for exercising any remedy available to
the Trustee for such Securities or exercising any trust or power conferred on
it.  However, the Trustee for any Series of
Securities may refuse to follow any direction that conflicts with law or this
Indenture that such Trustee determines may be unduly prejudicial to the rights
of other Holders of such Securities or that may involve the Trustee in personal
liability.

 

Section 6.6.                                   Limitation on Suits.

 

A Holder of any Series of
Securities may pursue a remedy with respect to this Indenture or such
Securities only if:

 

(1)                                                                                  such Holder gives to the Trustee for such
Securities written notice that an Event of Default is continuing;

 

26

 

(2)                                                                                  Holders of at least 25% in aggregate
principal amount of the then outstanding Securities of such Series make a
written request to the Trustee for such Securities to pursue the remedy;

 

(3)                                                                                  such Holder or Holders offer and, if
requested, provide to the Trustee for such Securities security or indemnity
reasonably satisfactory to such Trustee against any loss, liability or expense;

 

(4)                                                                                  such Trustee does not comply with the
request within 60 days after receipt of the request and the offer of security
or indemnity; and

 

(5)                                                                                  during such 60-day period, Holders of a
majority in aggregate principal amount of the then outstanding Securities of
such Series do not give such Trustee a direction inconsistent with such
request.

 

A Holder of any Series of
Securities may not use this Indenture to prejudice the rights of another Holder
of such Series of Securities or to obtain a preference or priority over
another Holder of a Securities of such Series.

 

Section 6.7.                                   Rights of Holders of Securities to Receive Payment.

 

Notwithstanding any other provision of this Indenture,
the right of any Holder of a Security of any Series to receive payment of
principal, premium, if any, and interest on such Securities, on or after the
respective due dates expressed in such Securities (including, if applicable, in
connection with an offer to purchase), or to bring suit for the enforcement of
any such payment on or after such respective dates, shall not be impaired or
affected without the consent of such Holder.

 

Section 6.8.                                   Collection Suit by Trustee.

 

If an Event of Default specified in Section 6.1(a),
(b) or (c) hereof with respect to Securities of any Series occurs
and is continuing, the Trustee for such Securities is authorized to recover
judgment in its own name and as trustee of an express trust against the Company
for the whole amount of principal of, premium, if any, and interest remaining
unpaid on, such Securities and interest on overdue principal and, to the extent
lawful, interest and such further amount as shall be sufficient to cover the
costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of such Trustee, its agents and counsel.

 

Section 6.9.                                   Trustee May File Proofs of Claim.

 

The Trustee for each Series of Securities is
authorized to file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of such Trustee (including
any claim for the reasonable compensation, expenses, disbursements and advances
of such Trustee, its agents and counsel) and the Holders of the Securities for
which it acts as trustee allowed in any judicial proceedings relative to the
Company (or any other obligor upon such Securities), its creditors or its
property and shall be entitled and empowered to collect, receive and distribute
any money or other property payable or deliverable on any such claims and any
custodian in any such judicial proceeding is hereby authorized by each Holder
of such 

 

27

 

Securities to make such
payments to such Trustee, and in the event that such Trustee shall consent to
the making of such payments directly to such Holders, to pay to such Trustee
any amount due to it for the reasonable compensation, expenses, disbursements
and advances of such Trustee, its agents and counsel, and any other amounts due
such Trustee under the Indenture.  To the
extent that the payment of any such compensation, expenses, disbursements and
advances of such Trustee, its agents and counsel, and any other amounts due
such Trustee out of the estate in any such proceeding, shall be denied for any
reason, payment of the same shall be secured by a Lien on, and shall be paid
out of, any and all distributions, dividends, money, securities and other
properties that such Holders may be entitled to receive in such proceeding
whether in liquidation or under any plan of reorganization or arrangement or
otherwise.  Nothing herein contained
shall be deemed to authorize such Trustee to authorize or consent to or accept
or adopt on behalf of any Holder for which it acts as trustee any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of such Holder, or to authorize such Trustee to vote in respect
of the claim of any such Holder in any such proceeding.

 

Section 6.10.                             Priorities.

 

If the Trustee of any Series of Securities
collects any money pursuant to this Article 6, it shall pay out the money
in the following order:

 

First:                     to the Trustee, its agents and attorneys
for amounts due under the Indenture, including payment of all reasonable
compensation, expenses and liabilities incurred, and all advances made, by the
Trustee and the costs and expenses of collection;

 

Second:     to Holders of such Securities for amounts due and
unpaid on such Securities for principal, premium, if any, and interest,
ratably, without preference or priority of any kind, according to the amounts
due and payable on such Securities for principal, premium, if any and interest,
respectively; and

 

Third:                to the Company or to such party as a
court of competent jurisdiction shall direct.

 

The Trustee may fix a record date and payment date for
any payment to Holders of Securities pursuant to this Section 6.10.

 

Section 6.11.                             Undertaking for Costs.

 

In any suit for the enforcement of any right or remedy
under this Indenture or in any suit against any Trustee for any action taken or
omitted by it as a trustee, a court in its discretion may require the filing by
any party litigant in the suit of an undertaking to pay the costs of the suit,
and the court in its discretion may assess reasonable costs, including
reasonable attorneys’ fees and expenses, against any party litigant in the
suit, having due regard to the merits and good faith of the claims or defenses
made by the party litigant.  This Section 6.11
does not apply to a suit by the Trustee, a suit by a Holder of a Security
pursuant to Section 6.7 hereof, or a suit by Holders of more than 10% in
aggregate principal amount of the then outstanding Securities of any Series.

 

28

 

ARTICLE VII.

TRUSTEE

 

Section 7.1.                                   Duties of Trustee.

 

(a)                                  If an Event of Default has occurred and
is continuing, the Trustee shall exercise the rights and powers vested in it by
this Indenture and use the same degree of care and skill in their exercise as a
prudent man would exercise or use under the circumstances in the conduct of his
own affairs.

 

(b)                                 Except during the continuance of an Event
of Default:

 

(i)                                     The Trustee need perform only those
duties that are specifically set forth in this Indenture and no others.

 

(ii)                                  In the absence of bad faith on its part,
the Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon Officers’ Certificates or
Opinions of Counsel furnished to the Trustee and conforming to the requirements
of this Indenture; however, in the case of any such Officers’
Certificates or Opinions of Counsel which by any provisions hereof are
specifically required to be furnished to the Trustee, the Trustee shall examine
such Officers’ Certificates and Opinions of Counsel to determine whether or not
they conform to the requirements of this Indenture (but need not confirm or
investigate the accuracy of mathematical calculations or other facts stated
therein).

 

(c)                                  The Trustee may not be relieved from liability
for its own negligent action, its own negligent failure to act or its own
willful misconduct, except that:

 

(i)                                     This paragraph does not limit the effect
of paragraph (b) of this Section.

 

(ii)                                  The Trustee shall not be liable for any
error of judgment made in good faith by a Responsible Officer, unless it is
proved that the Trustee was negligent in ascertaining the pertinent facts.

 

(iii)                               The Trustee shall not be liable with respect to any
action taken, suffered or omitted to be taken by it with respect to Securities
of any Series in good faith in accordance with the direction of the
Holders of a majority in principal amount of the outstanding Securities of such
Series relating to the time, method and place of conducting any proceeding
for any remedy available to the Trustee, or exercising any trust or power
conferred upon the Trustee, under this Indenture with respect to the Securities
of such Series.

 

(d)                                 Every provision of this Indenture that in
any way relates to the Trustee is subject to paragraph (a), (b) and (c) of
this Section.

 

29

 

(e)           The
Trustee may refuse to perform any duty or exercise any right or power at the
request or direction of any Holder unless it receives indemnity satisfactory to
it against any loss, liability or expense.

 

(f)            The
Trustee shall not be liable for interest on any money received by it except as
the Trustee may agree in writing with the Company.  Money held in trust by the Trustee need not
be segregated from other funds except to the extent required by law.

 

(g)           No
provision of this Indenture shall require the Trustee to risk its own funds or
otherwise incur any financial liability in the performance of any of its
duties, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk is not reasonably assured to it.

 

(h)           The
Paying Agent, the Registrar and any authenticating agent shall be entitled to
the protections, immunities and standard of care as are set forth in paragraphs
(a), (b) and (c) of this Section with respect to the Trustee.

 

Section 7.2.            Rights
of Trustee.

 

(a)           The
Trustee may conclusively rely on and shall be fully protected in acting or
refraining from acting upon any document believed by it to be genuine and to
have been signed or presented by the proper person.  The Trustee need not investigate any fact or
matter stated in the document.

 

(b)           Before
the Trustee acts or refrains from acting, it may require an Officers’
Certificate.  The Trustee shall not be
liable for any action it takes or omits to take in good faith in reliance on
such Officers’ Certificate.

 

(c)           The
Trustee may act through agents, attorneys, custodians or nominees and shall not
be responsible for the misconduct or negligence of any agent, attorney,
custodian or nominee appointed with due care. 
No Depository shall be deemed an agent, attorney, custodian or nominee
of the Trustee and the Trustee shall not be responsible for any act or omission
by any Depository.

 

(d)           The
Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers, provided
that the Trustee’s conduct does not constitute negligence or bad faith.

 

(e)           The
Trustee may consult with counsel and the advice of such counsel or any Opinion
of Counsel shall be full and complete authorization and protection in respect
of any action taken, suffered or omitted by it hereunder without negligence and
in good faith and in reliance thereon.

 

(f)            The
Trustee will be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the
Holders unless such Holders have offered to the Trustee indemnity or security
satisfactory to it 

 

30

 

against the losses, liabilities and expenses that might be incurred by
it in compliance with such request or direction.

 

(g)           The
Trustee may consult with counsel of its selection and the advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
without negligence and in good faith and in reliance thereon.

 

(h)           The
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document, but the Trustee, in its
discretion, may make such further reasonable inquiry or investigation into such
facts or matters as it may see fit at the expense of the Company.

 

(i)            The
Trustee shall not be deemed to have notice of any Default or Event of Default
unless a Responsible Officer of the Trustee has actual knowledge thereof or
unless written notice of any event which is in fact such a default is received
by the Trustee at the Corporate Trust Office of the Trustee, and such notice
references the Securities generally or the Securities of a particular Series and
this Indenture.

 

(j)            In
no event shall the Trustee be liable for the selection of investments or for
investment losses incurred thereon.  The
Trustee shall have no liability in respect of losses incurred as a result of
the liquidation of any investment prior to its stated maturity or failure to
provide timely written direction.

 

(k)           in
no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited
to, loss of profit) irrespective of whether the Trustee has been advised of the
likelihood of such loss or damage and regardless of the form of action.

 

(l)            the
rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to,
and shall be enforceable by, the Trustee in each of its capacities hereunder,
and each agent, custodian and other Person employed to act hereunder.

 

Section 7.3.            Individual
Rights of Trustee.

 

The Trustee in its individual or any other capacity
may become the owner or pledgee of Securities and may otherwise deal with the
Company or an Affiliate of the Company with the same rights it would have if it
were not Trustee.  Any Agent may do the
same with like rights.  The Trustee is
also subject to Sections 7.10 and 7.11.

 

Section 7.4.            Trustee’s
Disclaimer.

 

The Trustee makes no representation as to the validity
or adequacy of this Indenture or the Securities, it shall not be accountable
for the Company’s use of the proceeds

 

31

 

from the Securities, and
it shall not be responsible for any statement in the Securities other than its
authentication.

 

Section 7.5.            Notice
of Defaults.

 

If a Default or Event of Default occurs and is
continuing with respect to the Securities of any Series and if it is known
to a Responsible Officer of the Trustee, the Trustee shall mail to each
Securityholder of the Securities of that Series and, if any Bearer
Securities are outstanding, publish on one occasion in an Authorized Newspaper,
notice of a Default or Event of Default within 90 days after it occurs or, if
later, after a Responsible Officer of the Trustee has knowledge of such Default
or Event of Default.  Except in the case
of a Default or Event of Default in payment of principal of or interest on any
Security of any Series, the Trustee may withhold the notice if and so long as
its corporate trust committee or a committee of its Responsible Officers in
good faith determines that withholding the notice is in the interests of
Securityholders of that Series.

 

Section 7.6.            Reports
by Trustee to Holders.

 

Within 60 days after May 15 in each year, the
Trustee shall transmit by mail to all Securityholders, as their names and
addresses appear on the register kept by the Registrar and, if any Bearer
Securities are outstanding, publish in an Authorized Newspaper, a brief report
dated as of such May 15, in accordance with, and to the extent required
under, TIA § 313.

 

A copy of each report at the time of its mailing to
Securityholders of any Series shall be filed with the SEC and each stock
exchange on which the Securities of that Series are listed.  The Company shall promptly notify the Trustee
when Securities of any Series are listed on any stock exchange.

 

Section 7.7.            Compensation
and Indemnity.

 

The Company shall pay to the Trustee from time to time
compensation for its services as the Company and the Trustee shall from time to
time agree upon in writing.  The Trustee’s
compensation shall not be limited by any law on compensation of a trustee of an
express trust.  The Company shall
reimburse the Trustee upon request for all reasonable out-of-pocket expenses
incurred by it.  Such expenses shall
include the reasonable compensation and expenses of the Trustee’s agents and
counsel.

 

The Company shall indemnify each of the Trustee and
any predecessor Trustee (including the cost of defending itself) against any
loss, liability or expense, including taxes (other than taxes based upon,
measured by or determined by the income of the Trustee) incurred by it except
as set forth in the next paragraph in the performance of its duties under this
Indenture as Trustee or Agent.  The
Trustee shall notify the Company promptly of any claim of which it has received
written notice for which it may seek indemnity. 
The Company shall defend the claim and the Trustee shall cooperate in
the defense.  The Trustee may have
separate counsel and the Company shall pay the reasonable fees and expenses of
such counsel.  The Company need not pay
for any settlement made without its consent, which consent shall not be
unreasonably withheld.  This
indemnification shall apply to officers, directors, employees, shareholders and
agents of the Trustee.

 

32

 

The Company need not reimburse any expense or
indemnify against any loss or liability incurred by the Trustee through the
negligence or bad faith of any such person.

 

To secure the Company’s payment obligations in this
Section, the Trustee shall have a lien prior to the Securities of any Series on
all money or property held or collected by the Trustee, except that held in
trust to pay principal of and interest on particular Securities of that Series.

 

When the Trustee incurs expenses or renders services
after an Event of Default specified in Section 6.1(g) or (h) occurs,
the expenses and the compensation for the services are intended to constitute
expenses of administration under any Bankruptcy Law.

 

The provisions of this Section shall survive the
termination of this Indenture.

 

Section 7.8.            Replacement
of Trustee.

 

A resignation or removal of the Trustee and
appointment of a successor Trustee shall become effective only upon the
successor Trustee’s acceptance of appointment as provided in this Section.

 

The Trustee may resign with respect to the Securities
of one or more Series by so notifying the Company at least 30 days prior
to the date of the proposed resignation. 
The Holders of a majority in principal amount of the Securities of any Series may
remove the Trustee with respect to that Series by so notifying the Trustee
and the Company.  The Company may remove
the Trustee with respect to Securities of one or more Series if:

 

(a)           the
Trustee fails to comply with Section 7.10;

 

(b)           the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Law;

 

(c)           a
Custodian or public officer takes charge of the Trustee or its property; or

 

(d)           the
Trustee becomes incapable of acting.

 

If the Trustee resigns or is removed or if a vacancy
exists in the office of Trustee for any reason, the Company shall promptly
appoint a successor Trustee.  Within one
year after the successor Trustee takes office, the Holders of a majority in
principal amount of the then outstanding Securities may appoint a successor
Trustee to replace the successor Trustee appointed by the Company.

 

If a successor Trustee with respect to the Securities
of any one or more Series does not take office within 60 days after the
retiring Trustee resigns or is removed, the retiring Trustee (at the expense of
the Company), the Company or the Holders of at least 10% in principal amount of
the Securities of the applicable Series may petition any court of
competent jurisdiction for the appointment of a successor Trustee.

 

33

 

A successor Trustee shall deliver a written acceptance
of its appointment to the retiring Trustee and to the Company.  Immediately after that, the retiring Trustee,
upon payment of its charges hereunder, shall transfer all property held by it
as Trustee to the successor Trustee subject to the lien provided for in Section 7.7,
the resignation or removal of the retiring Trustee shall become effective, and
the successor Trustee shall have all the rights, powers and duties of the
Trustee with respect to each Series of Securities for which it is acting
as Trustee under this Indenture.  A
successor Trustee shall mail a notice of its succession to each Securityholder
of each such Series and, if any Bearer Securities are outstanding, publish
such notice on one occasion in an Authorized Newspaper.  Notwithstanding replacement of the Trustee
pursuant to this Section 7.8, the Company’s obligations under Section 7.7
hereof shall continue for the benefit of the retiring Trustee with respect to
expenses and liabilities incurred by it prior to such replacement.

 

Section 7.9.            Successor
Trustee by Merger, etc.

 

If the Trustee consolidates with, merges or converts
into, or transfers all or substantially all of its corporate trust business to,
another corporation, the successor corporation without any further act shall be
the successor Trustee.

 

Section 7.10.          Eligibility;
Disqualification.

 

This Indenture shall always have a Trustee who
satisfies the requirements of TIA § 310(a)(1), (2) and (5).  The Trustee shall always have a combined
capital and surplus of at least $25,000,000 as set forth in its most recent
published annual report of condition. 
The Trustee shall comply with TIA § 310(b).

 

Section 7.11.          Preferential
Collection of Claims Against Company.

 

The Trustee is subject to TIA §  311(a), excluding any creditor relationship
listed in TIA § 311(b).  A Trustee who
has resigned or been removed shall be subject to TIA § 311(a) to the
extent indicated.

 

ARTICLE VIII.

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

Section 8.1.            Option
to Effect Legal Defeasance or Covenant Defeasance.

 

The Company may at any time, at the option of its
Board of Directors evidenced by a resolution set forth in an Officers’
Certificate, elect to have either Section 8.2 or 8.3 hereof be applied to
all outstanding Securities of any Series upon compliance with the
conditions set forth below in this Article 8.

 

Section 8.2.            Legal
Defeasance and Discharge.

 

Upon the Company’s exercise under Section 8.1
hereof of the option applicable to this Section 8.2, the Company and each
guarantor, if any, of such Securities will, subject to the satisfaction of the
conditions set forth in Section 8.4 hereof, be deemed to have been
discharged from its or their obligations with respect to all outstanding
Securities of such Series (including 

 

34

 

the related guarantees,
if any) on the date the conditions set forth below are satisfied (hereinafter, “Legal
Defeasance”).  For this purpose, Legal
Defeasance means that the Company and such guarantors, if any, will be deemed
to have paid and discharged the entire Indebtedness represented by the
outstanding Securities of such Series (including the related guarantees,
if any), which will thereafter be deemed to be “outstanding” only for the
purposes of Section 8.5 hereof and the other Sections of this Indenture
referred to in clauses (1) and (2) below, and to have satisfied all
its or their other obligations under such Securities, such guarantees, if any,
and this Indenture (and the Trustee for such Securities, on demand of and at
the expense of the Company, shall execute proper instruments acknowledging the
same), except for the following provisions which will survive until otherwise
terminated or discharged hereunder:

 

(1)           the
rights of Holders of outstanding Securities of such Series to receive
payments in respect of the principal of, or interest or premium, if any, on,
such Securities when such payments are due from the trust referred to in Section 8.4
hereof;

 

(2)           the
Company’s obligations with respect to such Securities under Article 2 and Section 4.2
hereof;

 

(3)           the
rights, powers, trusts, duties and immunities of the Trustee for such
Securities hereunder and the Company’s and the guarantors’, if any, obligations
in connection therewith; and

 

(4)           this
Article 8.

 

Subject to compliance with this Article 8, the
Company may exercise its option under this Section 8.2 notwithstanding the
prior exercise of its option under Section 8.3 hereof.

 

Section 8.3.            Covenant
Defeasance.

 

Upon the Company’s exercise under Section 8.1
hereof of the option applicable to this Section 8.3, the Company and each
of the guarantors, if any, will, subject to the satisfaction of the conditions
set forth in Section 8.4 hereof, be released from each of their or its
obligations under the covenants specified in a Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate, in accordance with Section 2.2.18,
with respect to the outstanding Securities of the applicable Series on and
after the date the conditions set forth in Section 8.4 hereof are
satisfied (hereinafter, “Covenant Defeasance”), and such Securities will
thereafter be deemed not “outstanding” for the purposes of any direction,
waiver, consent or declaration or act of Holders of such Securities (and the
consequences of any thereof) in connection with such covenants, but will
continue to be deemed “outstanding” for all other purposes hereunder (it being
understood that such Securities will not be deemed outstanding for accounting
purposes).  For this purpose, Covenant
Defeasance means that, with respect to the outstanding Securities of such
Series, the Company may omit to comply with and will have no liability in
respect of any term, condition or limitation set forth in any such covenant,
whether directly or indirectly, by reason of any reference elsewhere herein to
any such covenant or by reason of any reference in any such covenant to any
other provision herein or in any other document and such omission to comply
will not constitute a Default or an Event of Default under Section 6.1
hereof, but, except as specified above, the remainder of this Indenture and
such Securities will be unaffected 

 

35

 

thereby.  In addition, upon the Company’s exercise
under Section 8.1 hereof of the option applicable to this Section 8.3,
subject to the satisfaction of the conditions set forth in Section 8.4 hereof,
Sections 6.1(d) through (f) hereof will not constitute Events of
Default.

 

Section 8.4.            Conditions
to Legal or Covenant Defeasance.

 

In order to exercise either Legal Defeasance or
Covenant Defeasance under either Section 8.2 or 8.3 hereof with respect to
Securities of any Series:

 

(1)           the
Company must irrevocably deposit with the Trustee for such Securities, in
trust, for the benefit of the Holders of such Securities, cash in U.S. dollars,
non-callable Government Securities, or a combination thereof, in such amounts
as will be sufficient, in the opinion of a nationally recognized investment
bank, appraisal firm, or firm of independent public accountants, to pay the
principal of, premium, if any, and interest on, the outstanding Securities of
such Series on the stated date for payment thereof or on the applicable
redemption date, as the case may be, and the Company must specify whether such
Securities are being defeased to such stated date for payment or to a
particular redemption date;

 

(2)           in
the case of an election under Section 8.2 hereof, the Company must deliver
to the Trustee for such Securities an Opinion of Counsel confirming that:

 

(A)          the
Company has received from, or there has been published by, the Internal Revenue
Service a ruling; or

 

(B)           since
the date of this Indenture, there has been a change in the applicable federal
income tax law,

 

in either case to the
effect that, and based thereon such Opinion of Counsel shall confirm that, the
Holders of the outstanding Securities of such Series will not recognize
income, gain or loss for federal income tax purposes as a result of such Legal
Defeasance and will be subject to federal income tax on the same amounts, in
the same manner and at the same times as would have been the case if such Legal
Defeasance had not occurred;

 

(3)           in
the case of an election under Section 8.3 hereof, the Company must deliver
to the Trustee for such Securities an Opinion of Counsel confirming that the
Holders of such Securities will not recognize income, gain or loss for federal
income tax purposes as a result of such Covenant Defeasance and will be subject
to federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Covenant Defeasance had not occurred;

 

(4)           no
Default or Event of Default with respect to such Securities shall have occurred
and be continuing on the date of such deposit (other than a Default or Event of
Default resulting from the borrowing of funds to be applied to such deposit);

 

(5)           such
Legal Defeasance or Covenant Defeasance will not result in a breach or
violation of, or constitute a default under, any material agreement or
instrument (other than this Indenture) to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries is
bound;

 

36

 

(6)           the
Company must deliver to the Trustee for such Securities an Officers’
Certificate stating that the deposit was not made by the Company with the
intent of preferring the Holders of such Securities over the other creditors of
the Company with the intent of defeating, hindering, delaying or defrauding any
creditors of the Company or others; and

 

(7)           the
Company must deliver to the Trustee for such Securities an Officers’
Certificate and an Opinion of Counsel (subject to customary assumptions and
exceptions), each stating that all conditions precedent relating to the Legal
Defeasance or the Covenant Defeasance have been complied with.

 

Section 8.5.            Deposited
Money and Government Securities to be Held in Trust; Other Miscellaneous
Provisions.

 

Subject to Section 8.6 hereof, all money and
non-callable Government Securities (including the proceeds thereof) deposited
with a Trustee (or other qualifying trustee, collectively for purposes of this Section 8.5,
the “Trustee”) pursuant to Section 8.4 hereof in respect of the
outstanding Securities of any Series will be held in trust and applied by
the Trustee, in accordance with the provisions of such Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as Paying Agent) as the Trustee may determine, to
the Holders of such Securities of all sums due and to become due thereon in
respect of principal, premium, if any, and interest, but such money need not be
segregated from other funds except to the extent required by law.

 

The Company will pay and indemnify the Trustee against
any tax, fee or other charge imposed on or assessed against the cash or
non-callable Government Securities deposited pursuant to Section 8.4
hereof or the principal and interest received in respect thereof other than any
such tax, fee or other charge which by law is for the account of the Holders of
the outstanding Securities of the applicable Series.

 

Notwithstanding anything in this Article 8 to the
contrary, the Trustee will deliver or pay to the Company from time to time upon
the request of the Company any money or non-callable Government Securities held
by it as provided in Section 8.4 hereof which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee (which may be the
opinion delivered under Section 8.4(1) hereof), are in excess of the
amount thereof that would then be required to be deposited to effect an
equivalent Legal Defeasance or Covenant Defeasance.

 

Section 8.6.            Repayment
to Company.

 

Any money deposited with the Trustee or any Paying
Agent, or then held by the Company, in trust for the payment of the principal
of, premium, if any, or interest on, any Series of Securities and
remaining unclaimed for two years after such principal, premium, if any, or
interest has become due and payable shall be paid to the Company on its request
or (if then held by the Company) will be discharged from such trust; and the
Holders of such Securities will thereafter be permitted to look only to the
Company for payment thereof, and all liability of the Trustee or such Paying
Agent with respect to such trust money, and all liability of the Company as
trustee thereof, will thereupon cease; provided, however, that
the Trustee or such Paying 

 

37

 

Agent, before being
required to make any such repayment, may at the expense of the Company cause to
be published once, in the New York Times and The Wall Street Journal (national
edition), notice that such money remains unclaimed and that, after a date
specified therein, which will not be less than 30 days from the date of such
notification or publication, any unclaimed balance of such money then remaining
will be repaid to the Company.

 

Section 8.7.            Reinstatement.

 

If the Trustee or Paying Agent is unable to apply any
U.S. dollars or non-callable Government Securities in accordance with Section 8.2
or 8.3 hereof, as the case may be, by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, then the Company’s and any applicable guarantors’ obligations
under this Indenture and the applicable Securities and the guarantees will be
revived and reinstated as though no deposit had occurred pursuant to Section 8.2
or 8.3 hereof until such time as the Trustee or Paying Agent is permitted to
apply all such money in accordance with Section 8.2 or 8.3 hereof, as the
case may be; provided, however, that, if the Company makes any
payment of principal of, premium, if any, or interest on, any such Securities
following the reinstatement of its obligations, the Company will be subrogated
to the rights of the Holders of such Securities to receive such payment from
the money held by the Trustee or Paying Agent.

 

ARTICLE IX.

AMENDMENTS AND WAIVERS

 

Section 9.1.            Without
Consent of Holders.

 

Notwithstanding Section 9.2 of this Indenture,
the Company and the Trustee may amend, modify or supplement this Indenture or
the Securities of one or more Series without the consent of any
Securityholder:

 

(a)           to
cure any ambiguity, defect or inconsistency;

 

(b)           to
provide for uncertificated Securities in addition to or in place of
certificated Securities;

 

(c)           to
provide for the assumption of the Company’s obligations to the Holders of the
Securities by a successor to the Company pursuant to Article 5 hereof;

 

(d)           to
make any change that would provide any additional rights or benefits to the
Holders of Securities or that does not adversely affect the legal rights
hereunder of any Securityholder;

 

(e)           to
comply with requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the TIA

 

(f)            to
provide for the issuance of and establish the form and terms and conditions of
Securities of any Series as permitted by this Indenture; or

 

38

 

(g)           to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more Series and to add to
or change any of the provisions of this Indenture as shall be necessary to
provide for or facilitate the administration of the trusts hereunder by more
than one Trustee.

 

Upon the request of the Company accompanied by a
resolution of its Board of Directors authorizing the execution of any such
amended or supplemental indenture, and upon receipt by the Trustee of the documents
described in Section 7.2 hereof, the Trustee will join with the Company in
the execution of any amended or supplemental indenture authorized or permitted
by the terms of this Indenture and to make any further appropriate agreements
and stipulations that may be therein contained, but the Trustee will not be
obligated to enter into such amended or supplemental indenture that affects its
own rights, duties or immunities under this Indenture or otherwise.

 

Section 9.2.            With
Consent of Holders.

 

The Company and the Trustee may enter into a
supplemental indenture with the written consent of the Holders of at least a
majority in principal amount of the outstanding Securities of each Series affected
by such supplemental indenture (including consents obtained in connection with
a tender offer or exchange offer for the Securities of such Series), for the
purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Indenture or of any supplemental indenture or of
modifying in any manner the rights of the Securityholders of each such
Series.  Except as provided in Section 6.4,
the Holders of at least a majority in principal amount of the outstanding
Securities of each Series by notice to the Trustee (including consents obtained
in connection with a tender offer or exchange offer for the Securities of such
Series) may waive compliance by the Company with any provision of this
Indenture or the Securities with respect to such Series.

 

It shall not be necessary for the consent of the
Holders of Securities under this Section 9.2 to approve the particular
form of any proposed supplemental indenture or waiver, but it shall be
sufficient if such consent approves the substance thereof.  Upon the request of the Company accompanied by
a resolution of its Board of Directors authorizing the execution of any such
amended or supplemental indenture, and upon the filing with the Trustee of
evidence satisfactory to the Trustee of the consent of the Holders of
Securities as aforesaid, and upon receipt by the Trustee of the documents
described in Section 7.2 hereof, the Trustee will join with the Company in
the execution of such amended or supplemental indenture unless such amended or
supplemental indenture directly affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise, in which case the Trustee may in
its discretion, but will not be obligated to, enter into such amended or
supplemental Indenture.

 

After a supplemental indenture or waiver under this
section becomes effective, the Company shall mail to the Holders of Securities
affected thereby and, if any Bearer Securities affected thereby are
outstanding, publish on one occasion in an Authorized Newspaper, a notice
briefly describing the supplemental indenture or waiver.  Any failure by the Company to mail or publish
such notice, or any defect therein, shall not, however, in any way impair or
affect the validity of any such supplemental indenture or waiver.

 

39

 

Section 9.3.            Limitations.

 

Without the consent of each Securityholder affected,
an amendment or waiver may not (with respect to any Securities held by a
non-consenting Holder):

 

(a)           change
the amount of Securities whose Holders must consent to an amendment, supplement
or waiver;

 

(b)           reduce
the rate of or extend the time for payment of interest (including default
interest) on any Security;

 

(c)           reduce
the principal or change the Stated Maturity of any Security or reduce the
amount of, or postpone the date fixed for, the payment of any sinking fund or
analogous obligation;

 

(d)           reduce
the principal amount of Discount Securities payable upon acceleration of the
maturity thereof;

 

(e)           waive
a Default or Event of Default in the payment of the principal of or interest,
if any, on any Security (except a rescission of acceleration of the Securities
of any Series by the Holders of at least a majority in principal amount of
the outstanding Securities of such Series and a waiver of the payment
default that resulted from such acceleration);

 

(f)            make
the principal of or interest, if any, on any Security payable in any currency
other than that stated in the Security;

 

(g)           make
any change in Sections 6.4, 6.7, 9.3 (this sentence), 11.15, or 11.16; or

 

(h)           waive
a redemption payment with respect to any Security or change any of the
provisions with respect to the redemption of any Securities, except as
specifically set forth in the Board Resolution, supplemental indenture hereto
or Officers’ Certificate delivered pursuant to Section 2.2.

 

Section 9.4.            Compliance
with Trust Indenture Act.

 

Every amendment to this Indenture or the Securities of
one or more Series shall be set forth in a supplemental indenture hereto
that complies with the TIA as then in effect.

 

Section 9.5.            Revocation
and Effect of Consents.

 

Until an amendment or waiver becomes effective, a
consent to it by a Holder of a Security is a continuing consent by the Holder
and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder’s Security, even if notation
of the consent is not made on any Security. 
However, any such Holder or subsequent Holder may revoke the consent as
to his Security or portion of a Security if the Trustee receives the notice of
revocation before the date the amendment or waiver becomes effective.

 

40

 

Any amendment or waiver once effective shall bind
every Securityholder of each Series affected by such amendment or waiver
unless it is of the type described in any of clauses (a) through (h) of
Section 9.3.  In that case, the
amendment or waiver shall bind each Holder of a Security who has consented to
it and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder’s Security.

 

Section 9.6.            Notation
on or Exchange of Securities.

 

The Trustee may place an appropriate notation about an
amendment or waiver on any Security of any Series thereafter
authenticated.  The Company in exchange
for Securities of that Series may issue and the Trustee shall authenticate
upon request new Securities of that Series that reflect the amendment or
waiver.

 

Section 9.7.            Trustee
Protected.

 

In executing, or accepting the additional trusts
created by, any supplemental indenture permitted by this Article or the
modifications thereby of the trusts created by this Indenture, the Trustee
shall be provided with, and (subject to Section 7.1) shall be fully
protected in relying upon, an Opinion of Counsel stating that the execution of
such supplemental indenture is authorized or permitted by this Indenture.  The Trustee shall sign all supplemental
indentures, except that the Trustee need not sign any supplemental indenture
that adversely affects its rights.

 

ARTICLE X.

SATISFACTION AND DISCHARGE

 

Section 10.1.          Satisfaction
and Discharge.

 

This Indenture will be discharged and will cease to be
of further effect as to a Series of Securities issued hereunder, when:

 

(a)           either:

 

(i)    all such
Securities that have been authenticated, except lost, stolen or destroyed
Securities that have been replaced or paid and Securities for whose payment
money has theretofore been deposited in trust and thereafter repaid to the
Company, have been delivered to the Trustee for cancellation; or

 

(ii)   all such
Securities that have not been delivered to the Trustee for cancellation have
become due and payable by reason of the mailing of a notice of redemption or
otherwise or will become due and payable within one year and the Company has
irrevocably deposited or caused to be deposited with the Trustee as trust funds
in trust solely for the benefit of the Holders of such Securities, cash in U.S.
dollars, non-callable Government Securities, or a combination thereof, in such
amounts as will be sufficient, without consideration of any reinvestment of
interest, to pay and discharge the entire Indebtedness on such Securities not
delivered to the Trustee for cancellation for principal, premium, if any, and
accrued interest to the date of maturity or redemption;

 

41

 

(b)           no
Default or Event of Default has occurred and is continuing on the date of such
deposit (other than a Default or Event of Default resulting from the borrowing
of funds to be applied to such deposit) and the deposit will not result in a
breach or violation of, or constitute a default under, any other material
instrument to which the Company or any guarantor, as applicable, of such
Securities is a party or by which the Company or any such guarantor, as
applicable,  is bound;

 

(c)           the
Company or any guarantor of such Securities has paid or caused to be paid all
sums payable by it under this Indenture; and

 

(d)           the
Company has delivered irrevocable instructions to the Trustee for such Securities
under this Indenture to apply the deposited money toward the payment of such
Securities at maturity or on the redemption date, as the case may be.

 

In addition, the Company must deliver an Officers’
Certificate and an Opinion of Counsel to the Trustee for such Securities
stating that all conditions precedent to satisfaction and discharge have been
satisfied.

 

Notwithstanding the satisfaction and discharge of this
Indenture, if money has been deposited with the Trustee pursuant to subclause (b) of
this Section 10.1, the provisions of Sections 10.2 and 8.6 hereof will
survive.  In addition, nothing in this Section 10.1
will be deemed to discharge those provisions of Section 7.7 hereof, that,
by their terms, survive the satisfaction and discharge of this Indenture.

 

Section 10.2.          Application
of Trust Money.

 

Subject to the provisions of Section 8.6 hereof,
all money deposited with a Trustee pursuant to Section 10.1 hereof shall
be held in trust and applied by it, in accordance with the provisions of the
Securities with respect to which such deposit was made and this Indenture, to
the payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as such Trustee may determine, to the persons
entitled thereto, of the principal (and premium, if any) and interest for whose
payment such money has been deposited with such Trustee; but such money need
not be segregated from other funds except to the extent required by law.

 

If such Trustee or Paying Agent is unable to apply any
money or Government Securities in accordance with Section 10.1 hereof by
reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Company’s and any applicable guarantor’s obligations
under this Indenture and the applicable Securities shall be revived and
reinstated as though no deposit had occurred pursuant to Section 10.1
hereof; provided that if the Company has made any payment of principal
of, premium, if any, or interest on, any Securities because of the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Securities to receive such payment from the money or
Government Securities held by the Trustee or Paying Agent.

 

42

 

ARTICLE XI.

MISCELLANEOUS

 

Section 11.1.          Trust
Indenture Act Controls.

 

If any provision of this Indenture limits, qualifies,
or conflicts with another provision which is required or deemed to be included
in this Indenture by the TIA, such required or deemed provision shall control.

 

Section 11.2.          Notices.

 

Any notice or communication by the Company or the
Trustee to the other, or by a Holder to the Company or the Trustee, is duly
given if in writing and delivered in person or mailed by first-class mail:

 

if to the Company:

 

B&G Foods, Inc.

Four Gatehall Drive, Suite 110

Parsippany, NJ 07054

Attention: General Counsel

Telephone: (973) 401-6500

Facsimile: (973) 630-6550

 

if to
the Trustee:

 

The
Bank of New York Mellon

101
Barclay Street

Floor 8 West

New York, New York 10286

Attention:
Corporate Trust Administration

Telephone:
(212) 815-3687

Facsimile:  (212) 298-1915

 

The Company or the Trustee by notice to the other may
designate additional or different addresses for subsequent notices or
communications.

 

Any notice or communication to a Securityholder shall
be mailed by first-class mail to his address shown on the register kept by the
Registrar and, if any Bearer Securities are outstanding, published in an
Authorized Newspaper.  Failure to mail a
notice or communication to a Securityholder of any Series or any defect in
it shall not affect its sufficiency with respect to other Securityholders of
that or any other Series.

 

If a notice or communication is mailed or published in
the manner provided above, within the time prescribed, it is duly given,
whether or not the Securityholder receives it.

 

If the Company mails a notice or communication to
Securityholders, it shall mail a copy to the Trustee and each Agent at the same
time.

 

43

 

Section 11.3.          Communication
by Holders with Other Holders.

 

Securityholders of any Series may communicate
pursuant to TIA § 312(b) with other Securityholders of that Series or
any other Series with respect to their rights under this Indenture or the
Securities of that Series or all Series. 
The Company, the Trustee, the Registrar and anyone else shall have the
protection of TIA § 312(c).

 

Section 11.4.          Certificate
and Opinion as to Conditions Precedent.

 

Upon any request or application by the Company to the
Trustee to take any action under this Indenture, the Company shall furnish to
the Trustee:

 

(a)           an
Officers’ Certificate stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with; and

 

(b)           an
Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent have been complied with.

 

Section 11.5.          Statements
Required in Certificate or Opinion.

 

Each certificate or opinion with respect to compliance
with a condition or covenant provided for in this Indenture (other than a
certificate provided pursuant to TIA § 314(a)(4)) shall comply with the
provisions of TIA § 314(e) and shall include:

 

(a)           a
statement that the person making such certificate or opinion has read such
covenant or condition;

 

(b)           a
brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion
are based;

 

(c)           a
statement that, in the opinion of such person, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been complied with; and

 

(d)           a
statement as to whether or not, in the opinion of such person, such condition
or covenant has been complied with.

 

Section 11.6.          Rules by
Trustee and Agents.

 

The Trustee may make reasonable rules for action
by or a meeting of Securityholders of one or more Series.  Any Agent may make reasonable rules and
set reasonable requirements for its functions.

 

44

 

Section 11.7.          Legal
Holidays.

 

Unless otherwise provided by Board Resolution,
Officers’ Certificate or supplemental indenture hereto for a particular Series,
a “Legal Holiday” is any day that is not a Business Day.  If a payment date is a Legal Holiday at a
place of payment, payment may be made at that place on the next succeeding day
that is not a Legal Holiday, and no interest shall accrue for the intervening
period.

 

Section 11.8.          No
Recourse Against Others.

 

A director, officer, employee or stockholder, as such,
of the Company shall not have any liability for any obligations of the Company
under the Securities or the Indenture or for any claim based on, in respect of
or by reason of such obligations or their creation.  Each Securityholder by accepting a Security
waives and releases all such liability. 
The waiver and release are part of the consideration for the issue of
the Securities.

 

Section 11.9.          Counterparts.

 

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

 

Section 11.10.        Governing
Laws.

 

THE INTERNAL LAW OF THE STATE OF NEW YORK WILL
GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE SECURITIES AND ANY
GUARANTEES OF THE SECURITIES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

 

Section 11.11.        No
Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret another
indenture, loan or debt agreement of the Company or a Subsidiary of the
Company.  Any such indenture, loan or
debt agreement may not be used to interpret this Indenture.

 

Section 11.12.        Successors.

 

All agreements of the Company in this Indenture and
the Securities shall bind its successor. 
All agreements of the Trustee in this Indenture shall bind its
successor.

 

Section 11.13.        Severability.

 

In case any provision in this Indenture or in the
Securities shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

 

45

 

Section 11.14.        Table
of Contents, Headings, Etc.

 

The Table of Contents, Cross-Reference Table, and
headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not to be considered a part hereof, and
shall in no way modify or restrict any of the terms or provisions hereof.

 

Section 11.15.        Securities
in a Foreign Currency or in ECU.

 

Unless otherwise specified in a Board Resolution, a
supplemental indenture hereto or an Officers’ Certificate delivered pursuant to
Section 2.2 of this Indenture with respect to a particular Series of
Securities, whenever for purposes of this Indenture any action may be taken by
the Holders of a specified percentage in aggregate principal amount of
Securities of all Series or all Series affected by a particular
action at the time outstanding and, at such time, there are outstanding
Securities of any Series which are denominated in a coin or currency other
than Dollars (including ECUs), then the principal amount of Securities of such Series which
shall be deemed to be outstanding for the purpose of taking such action shall
be that amount of Dollars that could be obtained for such amount at the Market
Exchange Rate at such time.  For purposes
of this Section 10.15, “Market Exchange Rate” shall mean the noon Dollar
buying rate in New York City for cable transfers of that currency as published
by the Federal Reserve Bank of New York; provided, however, in
the case of ECUs, Market Exchange Rate shall mean the rate of exchange
determined by the Commission of the European Union (or any successor thereto)
as published in the Official Journal of the European Union (such publication or
any successor publication, the “Journal”). 
If such Market Exchange Rate is not available for any reason with
respect to such currency, the Trustee shall use, in its sole discretion and
without liability on its part, such quotation of the Federal Reserve Bank of
New York or, in the case of ECUs, the rate of exchange as published in the
Journal, as of the most recent available date, or quotations or, in the case of
ECUs, rates of exchange from one or more major banks in The City of New York or
in the country of issue of the currency in question or, in the case of ECUs, in
Luxembourg or such other quotations or, in the case of ECUs, rates of exchange
as the Trustee, upon consultation with the Company, shall deem
appropriate.  The provisions of this
paragraph shall apply in determining the equivalent principal amount in respect
of Securities of a Series denominated in currency other than Dollars in
connection with any action taken by Holders of Securities pursuant to the terms
of this Indenture.

 

All decisions and determinations of the Trustee
regarding the Market Exchange Rate or any alternative determination provided
for in the preceding paragraph shall be in its sole discretion and shall, in
the absence of manifest error, to the extent permitted by law, be conclusive
for all purposes and irrevocably binding upon the Company and all Holders.

 

Section 11.16.        Judgment
Currency.

 

The Company agrees, to the fullest extent that it may
effectively do so under applicable law, that (a) if for the purpose of
obtaining judgment in any court it is necessary to convert the sum due in
respect of the principal of or interest or other amount on the Securities of
any Series (the “Required Currency”) into a currency in which a judgment
will be rendered (the “Judgment Currency”), the rate of exchange used shall be
the rate at which in accordance with normal banking procedures the Trustee
could purchase in The City of New York the Required Currency with the Judgment
Currency on the day on which final unappealable judgment is 

 

46

 

entered, unless such day
is not a New York Banking Day, then, the rate of exchange used shall be the
rate at which in accordance with normal banking procedures the Trustee could
purchase in The City of New York the Required Currency with the Judgment
Currency on the New York Banking Day preceding the day on which final
unappealable judgment is entered and (b) its obligations under this
Indenture to make payments in the Required Currency (i) shall not be
discharged or satisfied by any tender, any recovery pursuant to any judgment
(whether or not entered in accordance with subsection (a)), in any currency
other than the Required Currency, except to the extent that such tender or
recovery shall result in the actual receipt, by the payee, of the full amount
of the Required Currency expressed to be payable in respect of such payments, (ii) shall
be enforceable as an alternative or additional cause of action for the purpose
of recovering in the Required Currency the amount, if any, by which such actual
receipt shall fall short of the full amount of the Required Currency so
expressed to be payable, and (iii) shall not be affected by judgment being
obtained for any other sum due under this Indenture.  For purposes of the foregoing, “New York
Banking Day” means any day except a Saturday, Sunday or a legal holiday in The
City of New York on which banking institutions are authorized or required by
law, regulation or executive order to close.

 

Section 11.17.        Waiver
of Jury Trial.

 

EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.

 

Section 11.18.        Force
Majeure.

 

In no event shall the Trustee be responsible or liable
for any failure or delay in the performance of its obligations hereunder
arising out of or caused by, directly or indirectly, forces beyond its control,
including, without limitation, strikes, work stoppages, accidents, acts of war
or terrorism, civil or military disturbances, nuclear or natural catastrophes
or acts of God, and interruptions, loss or malfunctions of utilities,
communications or computer (software and hardware) services; it being
understood that the Trustee shall use reasonable efforts which are consistent
with accepted practices in the banking industry to resume performance as soon
as practicable under the circumstances.

 

ARTICLE XII.

SINKING FUNDS

 

Section 12.1.          Applicability
of Article.

 

The provisions of this Article shall be applicable
to any sinking fund for the retirement of the Securities of a Series, except as
otherwise permitted or required by any form of Security of such Series issued
pursuant to this Indenture.

 

The minimum amount of any sinking fund payment
provided for by the terms of the Securities of any Series is herein
referred to as a “mandatory sinking fund payment” and any other amount provided
for by the terms of Securities of such Series is herein referred to as an 

 

47

 

“optional sinking fund
payment.”  If provided for by the terms
of Securities of any Series, the cash amount of any sinking fund payment may be
subject to reduction as provided in Section 12.2.  Each sinking fund payment shall be applied to
the redemption of Securities of any Series as provided for by the terms of
the Securities of such Series.

 

Section 12.2.          Satisfaction
of Sinking Fund Payments with Securities.

 

The Company may, in satisfaction of all or any part of
any sinking fund payment with respect to the Securities of any Series to
be made pursuant to the terms of such Securities (1) deliver outstanding
Securities of such Series to which such sinking fund payment is applicable
(other than any of such Securities previously called for mandatory sinking fund
redemption) and (2) apply as credit Securities of such Series to
which such sinking fund payment is applicable and which have been repurchased
by the Company or redeemed either at the election of the Company pursuant to
the terms of such Series of Securities (except pursuant to any mandatory
sinking fund) or through the application of permitted optional sinking fund
payments or other optional redemptions pursuant to the terms of such
Securities, provided that such Securities have not been previously so
credited.  Such Securities shall be
received by the Trustee, together with an Officers’ Certificate with respect
thereto, not later than 15 days prior to the date on which the Trustee begins
the process of selecting Securities for redemption, and shall be credited for
such purpose by the Trustee at the price specified in such Securities for
redemption through operation of the sinking fund and the amount of such sinking
fund payment shall be reduced accordingly. 
If as a result of the delivery or credit of Securities in lieu of cash
payments pursuant to this Section 12.2, the principal amount of Securities
of such Series to be redeemed in order to exhaust the aforesaid cash
payment shall be less than $100,000, the Trustee need not call Securities of such
Series for redemption, except upon receipt of a Company Order that such
action be taken, and such cash payment shall be held by the Trustee or a Paying
Agent and applied to the next succeeding sinking fund payment, provided,
however, that the Trustee or such Paying Agent shall from time to time
upon receipt of a Company Order pay over and deliver to the Company any cash
payment so being held by the Trustee or such Paying Agent upon delivery by the
Company to the Trustee of Securities of that Series purchased by the
Company having an unpaid principal amount equal to the cash payment required to
be released to the Company.

 

Section 12.3.          Redemption
of Securities for Sinking Fund.

 

Not less than 45 days (unless otherwise indicated in
the Board Resolution, supplemental indenture or Officers’ Certificate in
respect of a particular Series of Securities) prior to each sinking fund
payment date for any Series of Securities, the Company will deliver to the
Trustee an Officers’ Certificate specifying the amount of the next ensuing
mandatory sinking fund payment for that Series pursuant to the terms of
that Series, the portion thereof, if any, which is to be satisfied by payment
of cash and the portion thereof, if any, which is to be satisfied by delivering
and crediting of Securities of that Series pursuant to Section 12.2,
and the optional amount, if any, to be added in cash to the next ensuing
mandatory sinking fund payment, and the Company shall thereupon be obligated to
pay the amount therein specified.  Not
less than 30 days (unless otherwise indicated in the Board Resolution, Officers’
Certificate or supplemental indenture in respect of a particular Series of
Securities) before each such sinking fund payment date the Trustee shall select
the Securities to be redeemed upon such sinking fund 

 

48

 

payment date in the
manner specified in Section 3.2 and cause notice of the redemption thereof
to be given in the name of and at the expense of the Company in the manner provided
in Section 3.3.  Such notice having
been duly given, the redemption of such Securities shall be made upon the terms
and in the manner stated in Sections 3.4, 3.5 and 3.6.

 

49

 

IN WITNESS WHEREOF, the parties hereto have caused
this Indenture to be duly executed, all as of the day and year first above
written.

 

	
   

  	
  B&G
  Foods, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert C. Cantwell

  
	
   

  	
   

  	
  Name: Robert C.
  Cantwell

  
	
   

  	
   

  	
  Its: Executive Vice
  President of Finance

  
	
   

  	
   

  
	
   

  	
  The Bank of New York
  Mellon

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Franca M. Ferrera

  
	
   

  	
   

  	
  Name: Franca M. Ferrera

  
	
   

  	
   

  	
  Its: Senior Associate

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