ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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94-3327894
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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12808 Gran Bay Parkway, West, Jacksonville, FL
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32258
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(Address of principal executive offices)
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(Zip Code)
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Part I
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Part II
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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Three months ended June 30,
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Six months ended June 30,
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||||||||||||
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2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
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|
|
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|
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||||||||
Revenue
|
$
|
186,731
|
|
|
$
|
187,818
|
|
|
$
|
371,850
|
|
|
$
|
332,616
|
|
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Cost of Revenue and Operating Expenses:
|
|
|
|
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|||||||
Cost of revenue (excluding depreciation and amortization)
|
58,527
|
|
|
58,758
|
|
|
116,450
|
|
|
108,809
|
|
||||
Sales and marketing
|
49,230
|
|
|
60,135
|
|
|
100,141
|
|
|
102,562
|
|
||||
Technology and development
|
17,323
|
|
|
19,732
|
|
|
34,324
|
|
|
32,358
|
|
||||
General and administrative
|
21,252
|
|
|
18,564
|
|
|
41,108
|
|
|
35,296
|
|
||||
Restructuring expense
|
—
|
|
|
778
|
|
|
312
|
|
|
914
|
|
||||
Asset impairment
|
—
|
|
|
—
|
|
|
143
|
|
|
—
|
|
||||
Depreciation and amortization
|
17,401
|
|
|
22,273
|
|
|
35,834
|
|
|
38,186
|
|
||||
Total cost of revenue and operating expenses
|
163,733
|
|
|
180,240
|
|
|
328,312
|
|
|
318,125
|
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Income from operations
|
22,998
|
|
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7,578
|
|
|
43,538
|
|
|
14,491
|
|
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|
||||||||
Interest expense, net
|
(8,146
|
)
|
|
(8,662
|
)
|
|
(16,036
|
)
|
|
(14,259
|
)
|
||||
Net income (loss) before income taxes
|
14,852
|
|
|
(1,084
|
)
|
|
27,502
|
|
|
232
|
|
||||
Income tax expense
|
(6,806
|
)
|
|
(522
|
)
|
|
(12,940
|
)
|
|
(1,500
|
)
|
||||
Net income (loss)
|
$
|
8,046
|
|
|
$
|
(1,606
|
)
|
|
$
|
14,562
|
|
|
$
|
(1,268
|
)
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
(624
|
)
|
|
(891
|
)
|
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(25
|
)
|
|
(1,207
|
)
|
||||
Unrealized gain on investments, net of tax
|
—
|
|
|
—
|
|
|
1
|
|
|
28
|
|
||||
Total comprehensive income (loss)
|
$
|
7,422
|
|
|
$
|
(2,497
|
)
|
|
$
|
14,538
|
|
|
$
|
(2,447
|
)
|
|
|
Three months ended June 30,
|
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Six months ended June 30,
|
||||||||||||
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2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Basic earnings (loss) per share:
|
|
|
|
|
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|
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|
||||||
Net income (loss) per basic common share
|
|
$
|
0.16
|
|
|
$
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(0.03
|
)
|
|
$
|
0.30
|
|
|
$
|
(0.03
|
)
|
Diluted earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income (loss) per diluted common share
|
|
$
|
0.16
|
|
|
$
|
(0.03
|
)
|
|
$
|
0.29
|
|
|
$
|
(0.03
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common shares outstanding
|
|
49,488
|
|
|
49,293
|
|
|
49,283
|
|
|
49,334
|
|
||||
Diluted weighted average common shares outstanding
|
|
51,186
|
|
|
49,293
|
|
|
51,067
|
|
|
49,334
|
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
|
(unaudited)
|
|
|
||||
Assets
|
|
|
|
|
|
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Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
33,449
|
|
|
$
|
20,447
|
|
Accounts receivable, net of allowance of $1,631 and $1,695, respectively
|
20,285
|
|
|
20,567
|
|
||
Prepaid expenses
|
13,538
|
|
|
12,311
|
|
||
Deferred expenses
|
63,178
|
|
|
60,217
|
|
||
Other current assets
|
1,868
|
|
|
1,872
|
|
||
Total current assets
|
132,318
|
|
|
115,414
|
|
||
|
|
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|
||||
Property and equipment, net
|
55,248
|
|
|
53,132
|
|
||
Deferred expenses
|
48,417
|
|
|
49,127
|
|
||
Goodwill
|
881,590
|
|
|
871,751
|
|
||
Intangible assets, net
|
392,359
|
|
|
413,127
|
|
||
Other assets
|
21,011
|
|
|
11,282
|
|
||
Total assets
|
$
|
1,530,943
|
|
|
$
|
1,513,833
|
|
|
|
|
|
||||
Liabilities and stockholders' equity
|
|
|
|
|
|||
Current liabilities:
|
|
|
|
|
|
||
Accounts payable
|
$
|
20,243
|
|
|
$
|
19,619
|
|
Accrued expenses
|
14,001
|
|
|
14,475
|
|
||
Accrued compensation and benefits
|
15,074
|
|
|
18,307
|
|
||
Deferred revenue
|
240,675
|
|
|
230,206
|
|
||
Current portion of debt
|
4,765
|
|
|
16,847
|
|
||
Deferred consideration
|
22,902
|
|
|
20,244
|
|
||
Other liabilities
|
4,236
|
|
|
5,034
|
|
||
Total current liabilities
|
321,896
|
|
|
324,732
|
|
||
|
|
|
|
||||
Deferred revenue
|
193,661
|
|
|
195,859
|
|
||
Long-term debt
|
640,202
|
|
|
647,294
|
|
||
Deferred tax liabilities
|
64,567
|
|
|
80,135
|
|
||
Other long-term liabilities
|
17,625
|
|
|
30,361
|
|
||
Total liabilities
|
1,237,951
|
|
|
1,278,381
|
|
||
|
|
|
|
||||
Stockholders' equity:
|
|
|
|
|
|
||
Common stock, $0.001 par value per share: 150,000,000 shares authorized, 51,435,214 and 50,278,137 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively
|
51
|
|
|
50
|
|
||
Additional paid-in capital
|
579,083
|
|
|
578,486
|
|
||
Treasury stock at cost, 1,723,706 shares as of June 30, 2017 and 3,146,012 shares as of December 31, 2016
|
(48,035
|
)
|
|
(62,430
|
)
|
||
Accumulated other comprehensive loss
|
(4,044
|
)
|
|
(4,020
|
)
|
||
Accumulated deficit
|
(234,063
|
)
|
|
(276,634
|
)
|
||
Total stockholders' equity
|
292,992
|
|
|
235,452
|
|
||
Total liabilities and stockholders' equity
|
$
|
1,530,943
|
|
|
$
|
1,513,833
|
|
|
Six months ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
Cash flows from operating activities
|
|
|
|
|
|
||
Net income (loss)
|
$
|
14,562
|
|
|
$
|
(1,268
|
)
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
35,834
|
|
|
38,186
|
|
||
Stock based compensation
|
11,659
|
|
|
10,200
|
|
||
Deferred income taxes
|
11,176
|
|
|
599
|
|
||
Amortization of debt issuance costs and other
|
7,399
|
|
|
6,685
|
|
||
Asset impairment
|
143
|
|
|
—
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||
Accounts receivable, net
|
986
|
|
|
(1,758
|
)
|
||
Prepaid expenses and other assets
|
(5,216
|
)
|
|
(10,935
|
)
|
||
Deferred expenses
|
(1,535
|
)
|
|
(2,586
|
)
|
||
Accounts payable
|
(169
|
)
|
|
(1,585
|
)
|
||
Accrued expenses and other liabilities
|
347
|
|
|
(519
|
)
|
||
Accrued compensation and benefits
|
(3,672
|
)
|
|
(7,375
|
)
|
||
Deferred revenue
|
5,452
|
|
|
15,644
|
|
||
Net cash provided by operating activities
|
76,966
|
|
|
45,288
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
||
Business acquisitions
|
(8,587
|
)
|
|
(303,262
|
)
|
||
Capital expenditures
|
(10,573
|
)
|
|
(8,306
|
)
|
||
Other
|
—
|
|
|
(1,300
|
)
|
||
Net cash (used in) investing activities
|
(19,160
|
)
|
|
(312,868
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
||
Stock issuance costs
|
(4
|
)
|
|
(6
|
)
|
||
Common stock repurchased
|
(3,559
|
)
|
|
(3,233
|
)
|
||
Payments of long-term debt
|
(27,954
|
)
|
|
(4,937
|
)
|
||
Payments on revolving credit facility
|
(56,313
|
)
|
|
(27,563
|
)
|
||
Proceeds from exercise of stock options
|
8,979
|
|
|
1,205
|
|
||
Deferred consideration payment
|
(18,933
|
)
|
|
—
|
|
||
Proceeds from borrowings on long-term debt
|
50,000
|
|
|
200,000
|
|
||
Proceeds from borrowings on revolving credit facility
|
7,000
|
|
|
115,000
|
|
||
Debt issuance costs
|
(1,927
|
)
|
|
(5,700
|
)
|
||
Common stock purchases under stock repurchase plan
|
(2,081
|
)
|
|
(16,909
|
)
|
||
Net cash (used in) provided by financing activities
|
(44,792
|
)
|
|
257,857
|
|
||
|
|
|
|
||||
Effect of exchange rate changes on cash
|
(12
|
)
|
|
(33
|
)
|
||
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents
|
13,002
|
|
|
(9,756
|
)
|
||
Cash and cash equivalents, beginning of period
|
20,447
|
|
|
18,706
|
|
||
Cash and cash equivalents, end of period
|
$
|
33,449
|
|
|
$
|
8,950
|
|
Supplemental cash flow information
|
|
|
|
|
|
||
Interest paid
|
$
|
8,812
|
|
|
$
|
6,851
|
|
Income taxes paid
|
$
|
1,573
|
|
|
$
|
2,046
|
|
|
Three months ended June 30, 2016
|
|
Six months ended June 30, 2016
|
||||||||||||||||||
|
As Previously Reported
|
Change in Accounting Classification
|
Effect of Error Correction
|
As Adjusted
|
|
As Previously Reported
|
Change in Accounting Classification
|
Effect of Error Correction
|
As Adjusted
|
||||||||||||
Cost of revenue
|
$
|
59,743
|
|
—
|
|
(985
|
)
|
$
|
58,758
|
|
|
$
|
110,826
|
|
—
|
|
(2,017
|
)
|
$
|
108,809
|
|
Sales and marketing
|
$
|
58,448
|
|
—
|
|
1,687
|
|
$
|
60,135
|
|
|
$
|
100,459
|
|
—
|
|
2,103
|
|
$
|
102,562
|
|
Technology and development
|
$
|
15,533
|
|
2,337
|
|
1,862
|
|
$
|
19,732
|
|
|
$
|
24,611
|
|
4,636
|
|
3,111
|
|
$
|
32,358
|
|
General and administrative
|
$
|
23,465
|
|
(2,337
|
)
|
(2,564
|
)
|
$
|
18,564
|
|
|
$
|
43,129
|
|
(4,636
|
)
|
(3,197
|
)
|
$
|
35,296
|
|
|
As of June 30, 2017
|
||
Tangible current assets
|
$
|
1,370
|
|
Property plant and equipment
|
2,331
|
|
|
Intangible assets
|
4,140
|
|
|
Other non current assets
|
2,849
|
|
|
Goodwill
|
9,914
|
|
|
Current liabilities
|
(1,355
|
)
|
|
Deferred revenue
|
(2,860
|
)
|
|
Other long term liabilities
|
(6,041
|
)
|
|
Purchase price consideration
|
$
|
10,348
|
|
|
|
|
|
Six months ended June 30, 2016
|
||
Revenue
|
|
|
|
$
|
372,585
|
|
Net loss
|
|
|
|
$
|
(9,805
|
)
|
|
|
|
|
|
||
Basic net loss per share
|
|
|
|
$
|
(0.20
|
)
|
|
|
|
|
|
||
Diluted net loss per share
|
|
|
|
$
|
(0.20
|
)
|
|
|
|
|
|
||
Basic weighted-average common shares outstanding
|
|
|
|
49,334
|
|
|
Diluted weighted-average common shares outstanding
|
|
|
|
49,334
|
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income (loss)
|
|
|
$
|
8,046
|
|
|
$
|
(1,606
|
)
|
|
$
|
14,562
|
|
|
$
|
(1,268
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic weighted average common shares outstanding
|
|
|
49,488
|
|
|
49,293
|
|
|
49,283
|
|
|
49,334
|
|
||||
Dilutive effect of stock options
|
|
|
1,352
|
|
|
—
|
|
|
1,322
|
|
|
—
|
|
||||
Dilutive effect of restricted shares
|
|
|
346
|
|
|
—
|
|
|
456
|
|
|
—
|
|
||||
Dilutive effect of performance shares
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||
Diluted weighted average common shares outstanding
|
|
|
51,186
|
|
|
49,293
|
|
|
51,067
|
|
|
49,334
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per basic common share
|
|
|
$
|
0.16
|
|
|
$
|
(0.03
|
)
|
|
0.30
|
|
|
(0.03
|
)
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per diluted common share
|
|
|
$
|
0.16
|
|
|
$
|
(0.03
|
)
|
|
$
|
0.29
|
|
|
$
|
(0.03
|
)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Goodwill balance at beginning of period
|
$
|
974,045
|
|
|
$
|
741,439
|
|
Accumulated impaired goodwill at beginning of period
|
(102,294
|
)
|
|
(102,294
|
)
|
||
Goodwill balance at beginning of period, net
|
871,751
|
|
|
639,145
|
|
||
Goodwill acquired during the period- DonWeb-
Note 2, Business Combinations
|
9,914
|
|
|
—
|
|
||
Goodwill acquired during the period- Yodle-
Note 2, Business Combinations
|
—
|
|
|
231,612
|
|
||
Goodwill acquired during the period- TORCHx-
Note 2, Business Combinations
|
—
|
|
|
2,266
|
|
||
Foreign currency translation adjustments (1)
|
(75
|
)
|
|
(1,272
|
)
|
||
Goodwill balance at end of period, net *
|
$
|
881,590
|
|
|
$
|
871,751
|
|
|
June 30, 2017
|
||||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
|
|
Weighted-average Remaining Amortization Period in Years
|
||||||
Indefinite-lived intangible assets:
|
|
|
|
|
|
|
|
|
|
||||
Domain/Trade names
|
$
|
161,902
|
|
|
$
|
—
|
|
|
$
|
161,902
|
|
|
|
Definite-lived intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|||
Customer relationships
|
325,761
|
|
|
(171,573
|
)
|
|
154,188
|
|
|
6.1
|
|||
Developed technology
|
280,548
|
|
|
(205,310
|
)
|
|
75,238
|
|
|
4.4
|
|||
Other
|
8,405
|
|
|
(7,374
|
)
|
|
1,031
|
|
|
0.8
|
|||
Total *
|
$
|
776,616
|
|
|
$
|
(384,257
|
)
|
|
$
|
392,359
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
||||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net
|
|
Weighted-average Remaining Amortization Period in Years
|
||||||
Indefinite-lived intangible assets:
|
|
|
|
|
|
|
|
|
|
||||
Domain/Trade names
|
$
|
159,805
|
|
|
$
|
—
|
|
|
$
|
159,805
|
|
|
|
Definite-lived intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|||
Customer relationships
|
324,327
|
|
|
(157,998
|
)
|
|
166,329
|
|
|
6.5
|
|||
Developed technology
|
280,455
|
|
|
(195,695
|
)
|
|
84,760
|
|
|
4.8
|
|||
Other
|
7,394
|
|
|
(5,161
|
)
|
|
2,233
|
|
|
1.4
|
|||
Total *
|
$
|
771,981
|
|
|
$
|
(358,854
|
)
|
|
$
|
413,127
|
|
|
|
|
|
|
|
|
|
|
2017 (remainder of year)
|
$
|
23,955
|
|
2018
|
44,824
|
|
|
2019
|
41,097
|
|
|
2020
|
38,874
|
|
|
2021
|
38,105
|
|
|
Thereafter
|
43,602
|
|
|
Total
|
$
|
230,457
|
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Revolving Credit Facility maturing 2021, based on LIBOR plus 2.25%
|
$
|
—
|
|
|
$
|
47,094
|
|
Term Loan due 2021, 3.46%, based on LIBOR plus 2.25%, less unamortized discount of $4,796 at June 30, 2017, effective rate of 3.62%
|
399,938
|
|
|
377,851
|
|
||
Senior Convertible Notes, maturing 2018, 1.00%, less unamortized discount of $13,721 at June 30, 2017, effective rate of 5.88%
|
245,029
|
|
|
239,196
|
|
||
Total Outstanding Debt
|
644,967
|
|
|
664,141
|
|
||
Less: Current Portion of Long-Term Debt
|
(4,765
|
)
|
|
(16,847
|
)
|
Long-Term Portion
|
$
|
640,202
|
|
|
$
|
647,294
|
|
Year 1
|
$
|
4,822
|
|
Year 2
|
294,604
|
|
|
Year 3
|
44,128
|
|
|
Year 4
|
319,930
|
|
|
Year 5
|
—
|
|
|
Total principal payments
|
$
|
663,484
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Foreign currency translation adjustments
|
$
|
(4,044
|
)
|
|
$
|
(4,019
|
)
|
Unrealized loss on investments
|
—
|
|
|
(1
|
)
|
||
Total accumulated other comprehensive loss
|
$
|
(4,044
|
)
|
|
$
|
(4,020
|
)
|
|
|
|
|
|
Three months ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(unaudited)
|
||||||
Ending Subscribers as of June 30,
|
3,490,000
|
|
|
3,443,000
|
|
||
Net subscriber (reductions) additions
|
(12,460
|
)
|
|
19,880
|
|
||
Average revenue per user (monthly)
|
$
|
17.72
|
|
|
$
|
18.66
|
|
|
Three months ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(unaudited, in thousands)
|
||||||
Revenue:
|
|
|
|
|
|
||
Subscription
|
$
|
184,511
|
|
|
$
|
186,121
|
|
Professional services and other
|
2,220
|
|
|
1,697
|
|
||
Total revenue
|
$
|
186,731
|
|
|
$
|
187,818
|
|
|
Three months ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(unaudited, in thousands)
|
||||||
Cost of Revenue and Operating Expenses:
|
|
|
|
|
|
||
Cost of revenue
|
$
|
58,527
|
|
|
$
|
58,758
|
|
Sales and marketing
|
49,230
|
|
|
60,135
|
|
||
Technology and development
|
17,323
|
|
|
19,732
|
|
||
General and administrative
|
21,252
|
|
|
18,564
|
|
||
Restructuring expense
|
—
|
|
|
778
|
|
||
Asset impairment
|
—
|
|
|
—
|
|
||
Depreciation and amortization
|
17,401
|
|
|
22,273
|
|
||
Total cost of revenue and operating expenses
|
$
|
163,733
|
|
|
$
|
180,240
|
|
|
Six months ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(unaudited, in thousands)
|
||||||
Revenue:
|
|
|
|
|
|
||
Subscription
|
367,859
|
|
|
329,312
|
|
||
Professional services and other
|
3,991
|
|
|
3,304
|
|
||
Total revenue
|
$
|
371,850
|
|
|
$
|
332,616
|
|
|
Six months ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(unaudited, in thousands)
|
||||||
Cost of Revenue and Operating Expenses:
|
|
|
|
|
|
||
Cost of revenue
|
$
|
116,450
|
|
|
$
|
108,809
|
|
Sales and marketing
|
100,141
|
|
|
102,562
|
|
||
Technology and development
|
34,324
|
|
|
32,358
|
|
||
General and administrative
|
41,108
|
|
|
35,296
|
|
||
Restructuring expense
|
312
|
|
|
914
|
|
||
Asset impairment
|
143
|
|
|
—
|
|
||
Depreciation and amortization
|
35,834
|
|
|
38,186
|
|
||
Total cost of revenue and operating expenses
|
$
|
328,312
|
|
|
$
|
318,125
|
|
|
Six months ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
|
(unaudited, in thousands)
|
||||||
Net cash provided by operating activities
|
$
|
76,966
|
|
|
$
|
45,288
|
|
Net cash used in investing activities
|
(19,160
|
)
|
|
(312,868
|
)
|
||
Net cash (used in) provided by financing activities
|
(44,792
|
)
|
|
257,857
|
|
||
Effect of exchange rate changes on cash
|
(12
|
)
|
|
(33
|
)
|
||
Increase (decrease) in cash and cash equivalents
|
$
|
13,002
|
|
|
$
|
(9,756
|
)
|
Covenant Description
|
|
Covenant Requirement as of
June 30, 2017
|
|
Ratio at June 30, 2017
|
|
Favorable/
(Unfavorable)
|
||
Consolidated Net Debt to EBITDA
|
|
Not greater than 3.65
|
|
1.97
|
|
|
1.68
|
|
Consolidated Interest Coverage Ratio
|
|
Greater than 2.00
|
|
9.59
|
|
|
7.59
|
|
•
|
Non-GAAP Revenue
. Web.com excludes from non-GAAP revenue the impact of the fair value adjustment to amortized deferred revenue because management believes that excluding such measures helps management and investors better understand the Company's revenue trends.
|
•
|
Monthly average revenue per user, or ARPU
. ARPU is a metric the Company measures on a quarterly basis. The Company defines ARPU as quarterly non-GAAP subscription revenue divided by the average of the number of subscribers at the beginning of the quarter and the number of subscribers at the end of the quarter, divided by three months. The Company excludes from subscription revenue the impact of the fair value adjustments to deferred revenue resulting from acquisition-related write downs.
|
•
|
Fair value adjustment to deferred revenue
. Web.com has recorded fair value adjustments to acquired deferred revenue in accordance with ASC 805-10-65. Web.com excludes the impact of these adjustments from its non-GAAP revenue measures, because doing so results in non-GAAP revenue which are more reflective of ongoing operating results and more comparable to historical operating results, since the majority of the Company's revenue is recurring subscription revenue. Excluding the fair value adjustment to deferred revenue facilitates management's internal comparisons to Web.com's historical operating results.
|
Web.com Group, Inc.
|
||||||||
Reconciliations of GAAP to Non-GAAP Results
|
||||||||
(in thousands, except for per share data)
|
||||||||
(unaudited)
|
||||||||
|
Three months ended June 30,
|
|
||||||
|
2017
|
|
2016
|
|
||||
Reconciliation of GAAP revenue to non-GAAP subscription revenue used in ARPU
|
|
|
|
|
||||
GAAP revenue
|
$
|
186,731
|
|
|
$
|
187,818
|
|
|
Fair value adjustment to deferred revenue
|
1,328
|
|
|
6,038
|
|
|
||
Non-GAAP revenue
|
$
|
188,059
|
|
|
$
|
193,856
|
|
|
Professional services and other revenue
|
(2,220
|
)
|
|
(1,606
|
)
|
|
||
Non-GAAP subscription revenue used in ARPU
|
$
|
185,839
|
|
|
$
|
192,250
|
|
|
Average subscribers
(in thousands)
|
3,497
|
|
|
3,433
|
|
|
||
ARPU (Non-GAAP subscription revenue per subscriber over 3 month period)
|
$
|
17.72
|
|
|
$
|
18.66
|
|
|
|
|
|
|
|
•
|
our ability to retain and increase sales to existing customers, attract new customers and satisfy our customers' requirements;
|
•
|
the renewal rates and renewal terms for our services;
|
•
|
changes in our pricing policies;
|
•
|
the introduction of new services and products by us or our competitors;
|
•
|
our ability to hire, train and retain members of our sales force;
|
•
|
the rate of expansion and effectiveness of our sales force;
|
•
|
technical difficulties or interruptions in our services;
|
•
|
general economic conditions;
|
•
|
additional investment in our services or operations;
|
•
|
our ability to successfully identify acquisition targets and integrate acquired businesses and technologies; and
|
•
|
our success in maintaining and adding strategic marketing relationships.
|
•
|
issue additional equity securities that would dilute our stockholders;
|
•
|
use cash that we may need in the future to operate our business; and
|
•
|
incur debt that could have terms unfavorable to us or that we might be unable to repay.
|
•
|
lost sales and customers as a result of customers of either of the two companies deciding not to do business with the combined company;
|
•
|
complexities associated with managing the larger, more complex, combined business;
|
•
|
integrating personnel from the two companies while maintaining focus on providing consistent, high quality services and products;
|
•
|
potential unknown liabilities and unforeseen expenses, delays or regulatory conditions associated with the acquisition; and
|
•
|
performance shortfalls at one or both of the companies as a result of the diversion of management's attention caused by completing the acquisition and integrating the companies' operations.
|
•
|
cause customers or end users to seek damages for losses incurred;
|
•
|
require us to replace existing equipment or add redundant facilities;
|
•
|
damage our reputation for reliable service;
|
•
|
cause existing customers to cancel their contracts; or
|
•
|
make it more difficult for us to attract new customers.
|
•
|
the unwillingness of companies and consumers to shift their purchasing from traditional vendors to online vendors;
|
•
|
the Internet infrastructure may not be able to support the demands placed on it, and its performance and reliability may decline as usage grows;
|
•
|
security and authentication issues may create concerns with respect to the transmission over the Internet of confidential information; and
|
•
|
privacy concerns, including those related to the ability of websites to gather user information without the user's knowledge or consent, may impact consumers' willingness to interact online.
|
•
|
impairment of goodwill and/or intangible assets;
|
•
|
charges for the amortization of identifiable intangible assets and for stock-based compensation;
|
•
|
accrual of newly identified pre-merger contingent liabilities that are identified subsequent to the finalization of the purchase price allocation; and
|
•
|
charges to eliminate certain of our pre-merger activities that duplicate those of the acquired company or to reduce our cost structure.
|
•
|
website design and development service and software companies;
|
•
|
Internet service providers and application service providers;
|
•
|
Internet search engine providers;
|
•
|
local business directory providers;
|
•
|
website domain name providers and hosting companies; and
|
•
|
eCommerce platform and service providers.
|
•
|
the liability of online resellers for actions by customers, including fraud, illegal content, spam, phishing, libel and defamation, infringement of third-party intellectual property and other abusive conduct;
|
•
|
other claims based on the nature and content of Internet materials;
|
•
|
user privacy and security issues;
|
•
|
consumer protection;
|
•
|
sales taxes by the states in which we sell certain of our products and other taxes, including the value-added tax of the European Union member states, which could impact how we conduct our business by requiring us to set up processes to collect and remit such taxes and could increase our sales audit risk;
|
•
|
characteristics and quality of services; and
|
•
|
cross-border eCommerce.
|
•
|
establish a classified board of directors so that not all members of our board are elected at one time;
|
•
|
provide that directors may only be removed for cause and only with the approval of 66 2/3% of our stockholders;
|
•
|
require super-majority voting to amend some provisions in our amended and restated certificate of incorporation and bylaws;
|
•
|
authorize the issuance of blank check preferred stock that our board of directors could issue to increase the number of outstanding shares to discourage a takeover attempt;
|
•
|
prohibit stockholder action by written consent, which requires all stockholder actions to be taken at a meeting of our stockholders;
|
•
|
provide that the board of directors is expressly authorized to make, alter, or repeal our bylaws; and
|
•
|
establish advance notice requirements for nominations for elections to our board or for proposing matters that can be acted upon by stockholders at stockholder meetings.
|
Exhibit No.
|
|
Description of Document
|
|
2.4
|
|
|
Agreement and Plan of Merger dated February 11, 2016 by an among the Company, Barton Creek, Web.com LLC and Yodle, Inc. (1)
|
3.1
|
|
|
Amended and Restated Certificate of Incorporation of Web.com Group, Inc. (2)
|
3.2
|
|
|
Amended and Restated Bylaws of Web.com Group, Inc. (3)
|
3.3
|
|
|
Certificate of Ownership and Merger of Registration (4)
|
(1)
|
Filed as an Exhibit to the Registrant's current report on Form 8-K (000-51595), filed with the SEC on February 16, 2016, and incorporated herein by reference.
|
(2)
|
Filed as an Exhibit to the Registrant’s registration statement on Form S-1 (No. 333-124349), filed with the SEC on April 27, 2005, as amended, and incorporated herein by reference.
|
(3)
|
Filed as an Exhibit to the Registrant’s current report on Form 8-K (000-51595), filed with the SEC on February 10, 2009, and incorporated herein by reference.
|
(4)
|
Filed as an Exhibit to the Registrant’s current report on Form 8-K (000-51595), filed with the SEC on October 30, 2008, and incorporated herein by reference.
|
(5)
|
Filed as an Exhibit to the Registrant's current report on Form 8-K (000-51595), filed with the SEC on August 14, 2013, and incorporated herein by reference.
|
(6)
|
Filed as an Exhibit to the Registrant's current report on Form 8-K (000-51595), filed with the SEC on August 14, 2013, and incorporated herein by reference.
|
(7)
|
Filed as an Exhibit to the Registrant's current report on Form 8-K (000-51595), filed with the SEC on February 16, 2016, and incorporated herein by reference.
|
(8)
|
The certification attached as Exhibit 32.1 accompanying this Quarterly Report on Form 10-Q, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Web.com Group, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing.
|
|
Web.com Group, Inc.
|
|
(Registrant)
|
|
|
August 4, 2017
|
/s/ Kevin M. Carney
|
Date
|
Kevin M. Carney
Chief Financial Officer
(Principal Financial and Accounting Officer)
|
Exhibit No.
|
|
Description of Document
|
|
2.4
|
|
Agreement and Plan of Merger dated February 11, 2016 by an among the Company, Barton Creek, Web.com LLC and Yodle, Inc. (1)
|
|
3.1
|
|
Amended and Restated Certificate of Incorporation of Web.com Group, Inc. (2)
|
|
3.2
|
|
Amended and Restated Bylaws of Web.com Group, Inc. (3)
|
|
3.3
|
|
Certificate of Ownership and Merger of Registration (4)
|
|
4.1
|
|
Reference is made to Exhibits 3.1 and 3.2
|
|
4.2
|
|
Specimen Stock Certificate. (4)
|
|
4.3
|
|
Indenture dated August 14, 2013 between the Company and Wells Fargo Bank, National Association, as Trustee. (5)
|
|
4.4
|
|
First Supplemental Indenture, dated August 14, 2013, between the Company and Wells Fargo Bank, National Association, as Trustee (including the form of 1.00% Senior Convertible Notes due 2018). (6)
|
|
10.1
|
|
Amendment to Credit Agreement, dated as of February 11, 2016, by and among the Company, the guarantor's party thereto, JPMorgan Chase Bank, N.A., as administrative agent and the lender's party thereto. (7)
|
|
10.2
|
|
Amendment to Credit Agreement, dated as of May 18, 2017, by and among the Company, the guarantor's party thereto, JPMorgan Chase Bank, N.A., as administrative agent and the lender's party thereto.
|
|
31.1
|
|
Chief Executive Officer Certification required by Rule 13a-14(a) or Rule 15d-14(a).
|
|
31.2
|
|
Chief Financial Officer Certification required by Rule 13a-14(a) or Rule 15d-14(a).
|
|
32.1
|
|
Certifications of Chief Executive Officer and Chief Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. §1350). (8)
|
|
EX-101.INS
|
|
XBRL Instance Document.*
|
|
EX-101.SCH
|
|
XBRL Taxonomy Extension Schema Document.*
|
|
EX-101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.*
|
|
EX-101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.*
|
|
EX-101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.*
|
|
EX-101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.*
|
|
(1)
|
Filed as an Exhibit to the Registrant's current report on Form 8-K (000-51595), filed with the SEC on February 16, 2016, and incorporated herein by reference.
|
(2)
|
Filed as an Exhibit to the Registrant’s registration statement on Form S-1 (No. 333-124349), filed with the SEC on April 27, 2005, as amended, and incorporated herein by reference.
|
(3)
|
Filed as an Exhibit to the Registrant’s current report on Form 8-K (000-51595), filed with the SEC on February 10, 2009, and incorporated herein by reference.
|
(4)
|
Filed as an Exhibit to the Registrant’s current report on Form 8-K (000-51595), filed with the SEC on October 30, 2008, and incorporated herein by reference.
|
(5)
|
Filed as an Exhibit to the Registrant's current report on Form 8-K (000-51595), filed with the SEC on August 14, 2013, and incorporated herein by reference.
|
(6)
|
Filed as an Exhibit to the Registrant's current report on Form 8-K (000-51595), filed with the SEC on August 14, 2013, and incorporated herein by reference.
|
(7)
|
Filed as an Exhibit to the Registrant's current report on Form 8-K (000-51595), filed with the SEC on February 16, 2016, and incorporated herein by reference.
|
(8)
|
The certification attached as Exhibit 32.1 accompanying this Quarterly Report on Form 10-Q, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Web.com Group, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing.
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SECTION 1.
|
DEFINITIONS 1
|
1.1.
|
Defined Terms 1
|
1.2.
|
Other Definitional Provisions 33
|
SECTION 2.
|
AMOUNT AND TERMS OF COMMITMENTS 34
|
2.1.
|
Term Commitments 34
|
2.2.
|
Procedure for Term Loan Borrowing 34
|
2.3.
|
Repayment of Term Loans 35
|
2.4.
|
Revolving Commitments 36
|
2.5.
|
Procedure for Revolving Loan Borrowing 36
|
2.6.
|
[Reserved] 36
|
2.7.
|
[Reserved] 36
|
2.8.
|
Commitment Fees, etc 37
|
2.9.
|
Termination or Reduction of Revolving Commitments 37
|
2.10.
|
Optional Prepayments 37
|
2.11.
|
Mandatory Prepayments 37
|
2.12.
|
Conversion and Continuation Options 39
|
2.13.
|
Limitations on Eurodollar Tranches 39
|
2.14.
|
Interest Rates and Payment Dates 39
|
2.15.
|
Computation of Interest and Fees 40
|
2.16.
|
Inability to Determine Interest Rate 40
|
2.17.
|
Payments Generally; Pro Rata Treatment; Sharing of Set-offs 41
|
2.18.
|
Requirements of Law 42
|
2.19.
|
Taxes 43
|
2.20.
|
Indemnity 46
|
2.21.
|
Change of Lending Office 47
|
2.22.
|
Mitigation Obligations; Replacement of Lenders 47
|
2.23.
|
Defaulting Lenders 48
|
2.24.
|
Incremental Facility 49
|
2.25.
|
Extensions of Term Loans and Revolving Commitments 51
|
2.26.
|
Prepayments Below Par 53
|
SECTION 3.
|
LETTERS OF CREDIT 55
|
3.1.
|
L/C Commitment 55
|
3.2.
|
Procedure for Issuance and Amendment of Letter of Credit 56
|
3.3.
|
Fees and Other Charges 57
|
3.4.
|
L/C Participations 57
|
3.5.
|
Reimbursement Obligation of the Borrower 58
|
3.6.
|
Obligations Absolute 58
|
3.7.
|
Letter of Credit Payments 58
|
3.8.
|
Applications 59
|
3.9.
|
Letters of Credit Issued for Subsidiaries 59
|
SECTION 4.
|
REPRESENTATIONS AND WARRANTIES 59
|
4.1.
|
Financial Condition 59
|
4.2.
|
No Change 59
|
4.3.
|
Existence; Compliance with Law 59
|
4.4.
|
Power; Authorization; Enforceable Obligations 59
|
4.5.
|
No Legal Bar 60
|
4.6.
|
Litigation 60
|
4.7.
|
Insurance 60
|
4.8.
|
Ownership of Property; Liens 60
|
4.9.
|
Intellectual Property 60
|
4.10.
|
Taxes 60
|
4.11.
|
Federal Regulations 61
|
4.12.
|
Labor Matters 61
|
4.13.
|
ERISA 61
|
4.14.
|
Investment Company Act; Other Regulations 61
|
4.15.
|
Subsidiaries 62
|
4.16.
|
Use of Proceeds 62
|
4.17.
|
Environmental Matters 62
|
4.18.
|
Accuracy of Information, etc 63
|
4.19.
|
Security Documents 63
|
4.20.
|
Solvency 64
|
4.21.
|
Anti-Terrorism Law; Anti-Corruption Laws 64
|
4.22.
|
EEA Financial Institutions 64
|
SECTION 5.
|
CONDITIONS PRECEDENT 64
|
5.1.
|
Conditions to Initial Extension of Credit 64
|
5.2.
|
Conditions to Amendment No. 2 Effective Date 66
|
5.3.
|
Conditions to Each Extension of Credit After the Amendment No. 2 Effective Date 67
|
SECTION 6.
|
AFFIRMATIVE COVENANTS 68
|
6.1.
|
Financial Statements 68
|
6.2.
|
Certificates; Other Information 68
|
6.3.
|
Payment of Obligations 70
|
6.4.
|
Maintenance of Existence; Compliance 70
|
6.5.
|
Maintenance of Property; Insurance 70
|
6.6.
|
Inspection of Property; Books and Records; Discussions 70
|
6.7.
|
Notices 71
|
6.8.
|
Environmental Laws 71
|
6.9.
|
Ratings 71
|
6.10.
|
Further Assurances; Additional Collateral, etc 71
|
6.11.
|
Designation of Subsidiaries 73
|
SECTION 7.
|
NEGATIVE COVENANTS 74
|
7.1.
|
Financial Covenants 74
|
7.2.
|
Indebtedness 74
|
7.3.
|
Liens 77
|
7.4.
|
Fundamental Changes 79
|
7.5.
|
Disposition of Property 79
|
7.6.
|
Restricted Payments 80
|
7.7.
|
Investments 81
|
7.8.
|
Payments and Modifications of Certain Debt Instruments 83
|
7.9.
|
Transactions with Affiliates 85
|
7.10.
|
Sales and Leasebacks 85
|
7.11.
|
Swap Agreements 85
|
7.12.
|
Changes in Fiscal Periods 86
|
7.13.
|
Negative Pledge Clauses 86
|
7.14.
|
Clauses Restricting Subsidiary Distributions 86
|
7.15.
|
Lines of Business 86
|
7.16.
|
Use of Proceeds and Letters of Credit 87
|
SECTION 8.
|
EVENTS OF DEFAULT 87
|
8.1.
|
Events of Default 87
|
8.2.
|
Application of Proceeds 89
|
SECTION 9.
|
THE AGENTS 90
|
9.1.
|
Appointment 90
|
9.2.
|
Delegation of Duties 91
|
9.3.
|
Exculpatory Provisions 91
|
9.4.
|
Reliance by Administrative Agent 91
|
9.5.
|
Notice of Default 91
|
9.6.
|
Non-Reliance on Agents and Other Lenders 92
|
9.7.
|
Indemnification 92
|
9.8.
|
Agent in Its Individual Capacity 93
|
9.9.
|
Successor Administrative Agent 93
|
9.10.
|
Agents 93
|
SECTION 10.
|
MISCELLANEOUS 93
|
10.1.
|
Amendments and Waivers 93
|
10.2.
|
Notices 95
|
10.3.
|
No Waiver; Cumulative Remedies 96
|
10.4.
|
Survival of Representations and Warranties 97
|
10.5.
|
Payment of Expenses and Taxes 97
|
10.6.
|
Successors and Assigns; Participations and Assignments 98
|
10.7.
|
Adjustments; Set‑off 102
|
10.8.
|
Counterparts 102
|
10.9.
|
Severability 102
|
10.10.
|
Integration 103
|
10.11.
|
GOVERNING LAW
103
|
10.12.
|
Submission To Jurisdiction; Waivers 103
|
10.13.
|
Acknowledgements 103
|
10.14.
|
Releases of Guarantees and Liens 104
|
10.15.
|
Confidentiality 104
|
10.16.
|
WAIVERS OF JURY TRIAL
105
|
10.17.
|
Patriot Act 105
|
10.18.
|
Usury Savings 105
|
10.19.
|
Acknowledgement and Consent to Bail-In of EEA Financial Institutions 106
|
10.20.
|
MIRE Events 106
|
1.1.
|
Defined Terms
. As used in this Agreement, the terms listed in this Section 1.1 shall have the respective meanings set forth in this Section 1.1.
|
|
Eurodollar Loans
|
ABR Loans
|
Revolving Loans and Term Loans
|
2.25%
|
1.25%
|
|
|
|
Consolidated First Lien Net Leverage Ratio
|
Applicable Margin for
Eurodollar Loans
(Revolving Loans and Term Loans)
|
Applicable Margin for
ABR Loans
(Revolving Loans and Term Loans)
|
Commitment Fee Rate
|
Greater than 2.75:1.00
|
3.00%
|
2.00%
|
0.45%
|
Less than or equal to
2.75:1.00 but greater than 2.25:1.00
|
2.50%
|
1.50%
|
0.45%
|
Less than or equal to
2.25:1.00 but greater than 2.00:1.00
|
2.25%
|
1.25%
|
0.40%
|
Less than or equal to
2.00:1.00 but greater than 1.75:1.00
|
2.00%
|
1.00%
|
0.40%
|
Less than or equal to
1.75:1.00 but greater than 1.50:1.00
|
1.75%
|
0.75%
|
0.35%
|
Less than or equal to
1.50:1.00
|
1.50%
|
0.50%
|
0.30%
|
Eurodollar Base Rate
|
1.00 - Eurocurrency Reserve Requirements
|
1.2.
|
Other Definitional Provisions
.
(a)
Unless otherwise specified therein, all terms defined in this Agreement shall have the defined meanings when used in the other Loan Documents or any certificate or other document made or delivered pursuant hereto or thereto.
|
2.1.
|
Term Commitments
. Subject to the terms and conditions hereof, each Term Lender severally agrees to make term loans (the “
Term Loans
”) to the Borrower on the Amendment No. 1 Effective Date and the Amendment No. 2 Effective Date, as applicable, in an aggregate amount equal to its Term Commitment, which term loans shall be made by such Term Lender making a Term Loan in an aggregate amount equal to its Term Commitment. The Term Loans may from time to time be Eurodollar Loans or ABR Loans, as determined by the Borrower and notified to the Administrative Agent in accordance with Sections 2.2 and 2.12.
|
2.2.
|
Procedure for Term Loan Borrowing
. The Borrower shall give the Administrative Agent irrevocable notice in the form of Exhibit F (which notice must be received by the Administrative Agent prior to 12:00 Noon, New York City time, (a) two Business Days prior to the anticipated Amendment No. 1 Effective Date, in the case of Eurodollar Loans, (b) one Business Day prior to the anticipated Amendment No. 1 Effective Date, in the case of ABR Loans, (c) two Business Days prior to the anticipated Amendment No. 2 Effective Date (or such later time as the Administrative Agent may agree to in its sole discretion), in the case of Eurodollar Loans or (d) one Business Day prior to the anticipated Amendment No. 2 Effective Date, in the case of ABR Loans) requesting that the Term Lenders make the Term Loans on the Amendment No. 1 Effective Date or Amendment No. 2 Effective Date, as applicable, and specifying the amount to be borrowed. Upon receipt of such notice the Administrative Agent shall promptly notify each Term Lender thereof. Not later than 9:00 A.M., New York City time, on the Amendment No. 1 Effective Date each Term Lender shall make available to the Administrative Agent at the Funding Office an amount in immediately available funds equal to the Term Loan or Term Loans to be made by such Lender;
provided
, that if any Term Lender has not funded its portion of the Term Loan to be funded by it by 9:00 A.M., New York City time on the Amendment No. 1 Effective Date and has not indicated to the Administrative Agent that it will not be funding such portion of its Term Loan, the Administrative Agent is authorized to advance such Term Lender’s portion of its Term Loan;
provided
further
, that such Term Lender shall fund the portion of its Term Loan to be funded by it on the Amendment No. 1 Effective Date no later than 12:00 Noon, New York City time on the Amendment No. 1 Effective Date. No later than 2:00 p.m., New York City time, on the Amendment No. 2 Effective Date, each Incremental Term Lender (as defined in Amendment No. 2) shall make available to the Administrative Agent at the Funding Office an amount in immediately available funds equal to the Incremental Term Loan (as defined in Amendment No. 2) to be made by such Incremental Term Lender (as defined in Amendment No. 2). The Administrative Agent shall credit the account of the Borrower on the books of such office of the Administrative Agent with the aggregate of the amounts made available through a funding to the Administrative Agent by the Term Lenders in immediately available funds.
|
2.3.
|
Repayment of Term Loans
. Subject to adjustment as a result of prior payments in accordance with the terms of this Agreement, the Borrower shall repay, and there shall become due and payable (together with accrued interest thereon), on the last Business Day of each fiscal quarter listed below, commencing on June 30, 2017, the aggregate principal amount of Term Loans indicated opposite such fiscal quarter:
|
Fiscal Quarter
|
Amortized Payment of Term Loans
|
||
June 2017
|
|
$5,516,026
|
|
September 2017
|
|
$5,516,026
|
|
December 2017
|
|
$5,516,026
|
|
March 2018
|
|
$5,516,026
|
|
June 2018
|
|
$8,274,038
|
|
September 2018
|
|
$8,274,038
|
|
December 2018
|
|
$8,274,038
|
|
March 2019
|
|
$8,274,038
|
|
June 2019
|
|
$11,032,051
|
|
September 2019
|
|
$11,032,051
|
|
December 2019
|
|
$11,032,051
|
|
March 2020
|
|
$11,032,051
|
|
June 2020
|
|
$11,032,051
|
|
September 2020
|
|
$11,032,051
|
|
December 2020
|
|
$11,032,051
|
|
March 2021
|
|
$11,032,051
|
|
2.4.
|
Revolving Commitments
. (a) Subject to the terms and conditions hereof, each Revolving Lender severally agrees to make revolving credit loans (“
Revolving Loans
”) to the Borrower from time to time during the Revolving Commitment Period in an aggregate principal amount at any one time outstanding which, when added to such Lender’s Revolving Percentage of the L/C Obligations then outstanding, does not exceed the amount of such Lender’s Revolving Commitment. During the Revolving Commitment Period the Borrower may use the Revolving Commitments by borrowing, prepaying the Revolving Loans in whole or in part, and reborrowing, all in accordance with the terms and conditions hereof. The Revolving Loans may from time to time be Eurodollar Loans or ABR Loans, as determined by the Borrower and notified to the Administrative Agent in accordance with Sections 2.5 and 2.12.
|
2.5.
|
Procedure for Revolving Loan Borrowing
. The Borrower may borrow under the Revolving Commitments during the Revolving Commitment Period on any Business Day;
provided
, that the Borrower shall give the Administrative Agent irrevocable notice in the form of Exhibit F (which notice must be received by the Administrative Agent prior to (a) 12:00 Noon, New York City time, three Business Days prior to the requested Borrowing Date, in the case of Eurodollar Loans, or (b) 12:00 Noon, New York City time on the Business Day of the requested Borrowing Date, in the case of ABR Loans), specifying (i) the amount and Type of Revolving Loans to be borrowed, (ii) the requested Borrowing Date and (iii) in the case of Eurodollar Loans, the respective amounts of each such Type of Loan and the respective lengths of the initial Interest Period therefor. Each borrowing under the Revolving Commitments shall be in an amount equal to (x) in the case of ABR Loans, $500,000 or a whole multiple thereof (or, if the then aggregate Available Revolving Commitments are less than $500,000, such lesser amount) and (y) in the case of Eurodollar Loans, $2,500,000 or a whole multiple of $500,000 in excess thereof. Upon receipt of any such notice from the Borrower, the Administrative Agent shall promptly notify each Revolving Lender thereof. Each Revolving Lender will make the amount of its
pro
rata
share of each borrowing available to the Administrative Agent for the account of the Borrower at the Funding Office prior to 12:00 Noon (or in the case of ABR Loans borrowed on same day notice, 2:30 P.M.), New York City time, on the Borrowing Date requested by the Borrower in funds immediately available to the Administrative Agent. Notwithstanding the foregoing, solely with respect to the Revolving Loans made on the Closing Date (other than ABR Loans made on same day notice), not later than 9:00 A.M., New York City time, on the Closing Date each Revolving Lender shall make available to the Administrative Agent at the Funding Office an amount in immediately available funds equal to its
pro
rata
share of such Revolving Loans;
provided
, that if any Revolving Lender has not funded its
pro
rata
share of such Revolving Loans by 9:00 A.M., New York City time on the Closing Date and has not indicated to the Administrative Agent that it will not be funding its
pro
rata
share of such Revolving Loans, the Administrative Agent is authorized to advance such Revolving Lender’s
pro
rata
share of such Revolving Loans;
provided
further
, that such Revolving Lender shall fund its
pro
rata
share of applicable Revolving Loans (including any ABR Loans made on same day notice) no later than 12:00 Noon (or in the case of ABR Loans borrowed on same day notice, 2:30 P.M.), New York City time on the Closing Date. Such borrowing will then be made available to the Borrower by the Administrative Agent crediting the account of the Borrower on the books of such office with the aggregate of the amounts made available to the Administrative Agent by the Revolving Lenders and in like funds as received by the Administrative Agent.
|
2.6.
|
[Reserved]
.
|
2.7.
|
[Reserved]
.
|
2.8.
|
Commitment Fees, etc
. (a) The Borrower agrees to pay to the Administrative Agent for the account of each Revolving Lender a commitment fee for the period from and including the Closing Date to the last day of the Revolving Commitment Period, computed at the Commitment Fee Rate on the average daily amount of the Available Revolving Commitment of such Lender during the period for which payment is made, payable quarterly in arrears on each Fee Payment Date, commencing on the Amendment No. 2 Effective Date and on each such date to occur thereafter.
|
2.9.
|
Termination or Reduction of Revolving Commitments
. The Borrower shall have the right, upon not less than three Business Days’ notice to the Administrative Agent, to terminate the Revolving Commitments or, from time to time, to reduce the amount of the Revolving Commitments;
provided
, that no such termination or reduction of Revolving Commitments shall be permitted if, after giving effect thereto and to any prepayments of the Revolving Loans made on the effective date thereof, the Total Revolving Extensions of Credit would exceed the Total Revolving Commitments.
Each notice delivered by the Borrower pursuant to this Section
2.9
shall be irrevocable;
provided
, that such notice may state that it is conditioned upon the effectiveness of other credit facilities, settlement of an offering of securities or a Change in Control, in each case, which such notice may be revoked by the Borrower (by notice to the Administrative Agent no later than 10:00 A.M., New York City time, on the specified effective date) if such condition is not satisfied.
Any such reduction shall be in an amount equal to $1,000,000, or a whole multiple thereof, and shall reduce permanently the Revolving Commitments then in effect.
|
2.10.
|
Optional Prepayments
. The Borrower may at any time and from time to time prepay the Loans, in whole or in part, without premium or penalty, upon notice delivered to the Administrative Agent no later than 12:00 Noon, New York City time, three Business Days prior thereto, in the case of Eurodollar Loans, and no later than 12:00 Noon, New York City time, one Business Day prior thereto, in the case of ABR Loans, which notice shall specify the date and amount of prepayment and whether the prepayment is of Eurodollar Loans or ABR Loans;
provided
, that if a Eurodollar Loan is prepaid on any day other than the last day of the Interest Period applicable thereto, the Borrower shall also pay any amounts owing pursuant to Section 2.20.
Each notice delivered by the Borrower pursuant to this Section
2.10
shall be irrevocable;
provided
, that such notice may state that it is conditioned upon the occurrence of one or more events specified therein, which such notice may be revoked by the Borrower (by notice to the Administrative Agent no later than 10:00 A.M., New York City time, on the specified effective date) if such condition is not satisfied.
Upon receipt of any such notice the Administrative Agent shall promptly notify each relevant Lender thereof. If any such notice is given, the amount specified in such notice shall be due and payable on the date specified therein, together with (except in the case of Revolving Loans that are ABR Loans) accrued interest to such date on the amount prepaid. Partial prepayments of Term Loans shall be in an aggregate principal amount of $1,000,000 (or, if the Term Loans then outstanding are less than $1,000,000, such lesser amount). Amounts to be applied in connection with prepayments and Commitment reductions made pursuant to this Section 2.10 shall be applied, in the case of Term Loans, to the prepayment of the Term Loans in accordance with Section 2.17(b) and as directed by the Borrower (or, absent such direction, in direct order of maturity) and, in the case of Commitment reductions, to reduce permanently the Revolving Commitments.
|
2.11.
|
Mandatory Prepayments
.
(a)
If any Indebtedness shall be incurred by the Borrower or any of its Restricted Subsidiaries (excluding any Indebtedness permitted by Section 7.2 (other than Refinancing Indebtedness)), an amount equal to 100% of the Net Cash Proceeds thereof shall be applied within one Business Day of the date of such issuance or incurrence toward the prepayment of the Term Loans as set forth in Section 2.11(d).
|
2.12.
|
Conversion and Continuation Options
.
(a)
The Borrower may elect from time to time to convert Eurodollar Loans to ABR Loans by giving the Administrative Agent prior irrevocable notice in the form of Exhibit G of such election no later than 1:00 P.M., New York City time, on the Business Day preceding the proposed conversion date;
provided
, that any such conversion of Eurodollar Loans may only be made on the last day of an Interest Period with respect thereto. The Borrower may elect from time to time to convert ABR Loans to Eurodollar Loans by giving the Administrative Agent prior irrevocable notice in the form of Exhibit G of such election no later than 1:00 P.M., New York City time, on the third Business Day preceding the proposed conversion date (which notice shall specify the length of the initial Interest Period therefor);
provided
, that no ABR Loan under a particular Facility may be converted into a Eurodollar Loan when any Event of Default has occurred and is continuing and the Administrative Agent or the Majority Facility Lenders in respect of such Facility have determined in its or their sole discretion not to permit such conversions. Upon receipt of any such notice the Administrative Agent shall promptly notify each relevant Lender thereof.
|
2.13.
|
Limitations on Eurodollar Tranches
. Notwithstanding anything to the contrary in this Agreement, all borrowings, conversions and continuations of Eurodollar Loans and all selections of Interest Periods shall be in such amounts and be made pursuant to such elections so that no more than ten Eurodollar Tranches shall be outstanding at any one time.
|
2.14.
|
Interest Rates and Payment Dates
.
(a)
Each Eurodollar Loan shall bear interest for each day during each Interest Period with respect thereto at a rate per annum equal to the Eurodollar Rate determined for such day plus the Applicable Margin.
|
2.15.
|
Computation of Interest and Fees
.
(a)
Interest and fees payable pursuant hereto shall be calculated on the basis of a 360-day year for the actual days elapsed, except that, with respect to ABR Loans the rate of interest on which is calculated on the basis of the Prime Rate, the interest thereon shall be calculated on the basis of a 365- (or 366-, as the case may be) day year for the actual days elapsed. The Administrative Agent shall as soon as practicable notify the Borrower and the relevant Lenders of each determination of a Eurodollar Rate. Any change in the interest rate on a Loan resulting from a change in the ABR or the Eurodollar Rate shall become effective as of the opening of business on the day on which such change becomes effective. The Administrative Agent shall as soon as practicable notify the Borrower and the relevant Lenders of the effective date and the amount of each such change in interest rate.
|
2.16.
|
Inability to Determine Interest Rate
. If prior to the first day of any Interest Period:
|
2.17.
|
Payments Generally; Pro Rata Treatment; Sharing of Set-offs
.
(a)
Each borrowing by the Borrower from the Lenders hereunder, each payment by the Borrower on account of any commitment fee and any reduction of the Commitments of the Lenders shall be made
pro
rata
according to the respective Term Percentages or Revolving Percentages, as the case may be, of the relevant Lenders.
|
2.18.
|
Requirements of Law
.
(a)
If the adoption of or any change in any Requirement of Law or in the interpretation or application thereof or compliance by any Lender with any request or directive (whether or not having the force of law) from any central bank or other Governmental Authority made subsequent to the Amendment Signing Date:
|
2.19.
|
Taxes
.
(a)
All payments made by or on behalf of any Loan Party under this Agreement or any other Loan Document shall be made free and clear of, and without deduction or withholding for or on account of, any present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto (“
Taxes
”), excluding net income taxes, franchise taxes (imposed in lieu of net income taxes), branch-level income tax and branch profits taxes imposed on the Administrative Agent or any Lender by the United States (or any jurisdiction thereof) or as a result of a present or former connection between the Administrative Agent or such Lender and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof or therein (other than any such connection arising solely from the Administrative Agent or such Lender having executed, delivered or performed its obligations or received a payment under, or enforced, this Agreement or any other Loan Document);
provided
, that if any such non-excluded Taxes (“
Non-Excluded Taxes
”) or Other Taxes are required to be withheld from any amounts payable to the Administrative Agent or any Lender as determined in good faith by the applicable withholding agent, (i) such amounts shall be paid to the relevant Governmental Authority in accordance with applicable law and (ii) the amounts so payable by the applicable Loan Party to the Administrative Agent or such Lender shall be increased to the extent necessary to yield to the Administrative Agent or such Lender (after payment of all Non-Excluded Taxes and Other Taxes) interest or any such other amounts payable hereunder at the rates or in the amounts specified in this Agreement as if such withholding or deduction had not been made;
provided
further
, that the Borrower shall not be required to increase any such amounts payable to the Administrative Agent or any Lender with respect to any Non-Excluded Taxes (w) that are attributable to such Lender’s failure to comply with the requirements of paragraph (e) or (f) of this Section (x) that are United States withholding taxes imposed on amounts payable to such Lender at the time such Lender becomes a party to this Agreement, or designates a new lending office except to the extent that such Lender (or its assignor if any) was entitled, at the time of such change in lending office (or assignment), to receive additional amounts from the Borrower with respect to such Non-Excluded Taxes pursuant to this paragraph or (y) that are imposed pursuant to FATCA.
|
2.20.
|
Indemnity
. The Borrower agrees to indemnify each Lender for, and to hold each Lender harmless from, any loss or expense that such Lender may sustain or incur as a consequence of (a) default by the Borrower in making a borrowing of, conversion into or continuation of Eurodollar Loans after the Borrower has given a notice requesting the same in accordance with the provisions of this Agreement, (b) default by the Borrower in making any prepayment of or conversion from Eurodollar Loans after the Borrower has given a notice thereof in accordance with the provisions of this Agreement or (c) the making of a prepayment (including any payment made to a Lender in connection with a forced assignment by such Lender of Loans in accordance with Section 2.22(b) or Section 10.1) of Eurodollar Loans on a day that is not the last day of an Interest Period with respect thereto. Such indemnification may include an amount equal to the excess, if any, of (i) the amount of interest that would have accrued on the amount so prepaid, or not so borrowed, converted or continued, for the period from the date of such prepayment or of such failure to borrow, convert or continue to the last day of such Interest Period (or, in the case of a failure to borrow, convert or continue, the Interest Period that would have commenced on the date of such failure) in each case at the applicable rate of interest for such Loans provided for herein (excluding, however, the Applicable Margin included therein, if any)
over
(ii) the amount of interest (as reasonably determined by such Lender) that would have accrued to such Lender on such amount by placing such amount on deposit for a comparable period with leading banks in the interbank eurodollar market. A certificate as to any amounts payable pursuant to this Section submitted to the Borrower by any Lender shall be conclusive in the absence of manifest error. This covenant shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.
|
2.21.
|
Change of Lending Office
. Each Lender agrees that, upon the occurrence of any event giving rise to the operation of Section 2.18 or 2.19(a) with respect to such Lender, it will, if requested by the Borrower, use reasonable efforts (subject to overall policy considerations of such Lender) to designate another lending office for any Loans affected by such event with the object of avoiding the consequences of such event;
provided
, that such designation is made on terms that, in the sole judgment of such Lender, cause such Lender and its lending office(s) to suffer no material economic, legal or regulatory disadvantage;
provided
further
, that nothing in this Section shall affect or postpone any of the obligations of the Borrower or the rights of any Lender pursuant to Section 2.18 or 2.19(a).
|
2.22.
|
Mitigation Obligations; Replacement of Lenders
.
|
2.23.
|
Defaulting Lenders
.
Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender
:
|
2.24.
|
Incremental Facility
.
(a)
The Borrower may from time to time amend this Agreement in order to provide to the Borrower additional revolving loan facilities and/or increased revolving commitments in respect of the Revolving Facility or any other existing revolving facility hereunder (each, an “
Incremental Revolving Facility
” and loans pursuant thereto “
Incremental Revolving Loans
”) and additional term loan facilities hereunder (each, an “
Incremental Term Facility
” and loans pursuant thereto “
Incremental Term Loans
”; together with any Incremental Revolving Facility, the “
Incremental Facilities
”),
provided
that (i) with respect to any Incremental Facilities provided after the Amendment No. 2 Effective Date, the aggregate principal amount of such Incremental Facilities shall not exceed $200,000,000,
plus
additional amounts to the extent the Consolidated First Lien Net Leverage Ratio (determined (x) on a pro forma basis after giving effect to the provision of such Incremental Facility, (y) assuming such Incremental Facility is fully drawn as of such date and (z) disregarding the proceeds of such Incremental Facility in calculating such leverage ratio (it being understood that, if applicable, the use of such proceeds shall be given pro forma effect in such calculation)) as of the last day of the most recently ended fiscal quarter for which financial statements have been delivered to the Administrative Agent and the Lenders pursuant to Section 6.1(a) or (b) is less than 2.50:1.00, (ii) each Incremental Facility shall be in a minimum aggregate principal amount of $25,000,000, (iii) the Borrower shall be in pro forma compliance with the financial covenants set forth in Section 7.1(a) after giving effect to the incurrence of such Incremental Facility, such compliance to be determined (x) on the basis of the financial information most recently delivered to the Administrative Agent and the Lenders pursuant to Section 6.1(a) or (b) as though such incurrence had been consummated as of the first day of the fiscal period covered thereby, (y) assuming such Incremental Facility is fully drawn as of such date and (z) disregarding the proceeds of such Incremental Facility in calculating such leverage ratio (it being understood that, if applicable, the use of such proceeds shall be given pro forma effect in such calculation) and (iv) at the time and after giving effect to the incurrence of any Incremental Facility, no Event of Default shall have occurred and be continuing;
provided
that, in the event that any tranche of an Incremental Term Facility is used to finance a Limited Conditionality Acquisition and to the extent the Additional Lenders participating in such tranche of an Incremental Term Facility agree, the foregoing clause (iv) shall be tested solely at the time of the execution of the acquisition agreement or other similar document having similar effect related to such Limited Conditionality Acquisition. The Loans and Commitments in respect of any Incremental Facility and all obligations in respect thereof shall be Obligations under this Agreement and the other Loan Documents that are secured by the Collateral and guaranteed on a pari passu basis with all other applicable Obligations under this Agreement and the other Loan Documents. Each Incremental Term Facility must have a weighted average life to maturity which is the same or longer than the then remaining weighted average life to maturity of the Term Facility (
provided
that any Incremental Term Facility may amortize in an amount such that it is fungible with the Term Loan Facility) and a final maturity no earlier than the Final Maturity Date. Incremental Facilities will be entitled to prepayments and voting rights on the same basis as the comparable Facility unless the applicable Incremental Facility Amendment specifies a lesser treatment. Each Incremental Revolving Facility shall have a final maturity no earlier than the Final Revolving Termination Date. The Applicable Margin (including all upfront or similar fees or original issue discount payable to all Lenders providing such Incremental Facility and any Eurodollar or ABR floor applicable to such Incremental Facility) relating to such Incremental Facility shall be on such terms as are reasonably satisfactory to the Administrative Agent, the Borrower and the Lenders providing such Incremental Facility. The terms of the applicable Incremental Facility shall be as set forth in the applicable Incremental Facility Amendment;
provided
that (i) other than amortization (with respect to any Incremental Term Facility), pricing or maturity date, each Incremental Facility shall have the same terms as the Term Facility or the Revolving Facility, as applicable, or such terms as are reasonably satisfactory to the Administrative Agent and the Borrower and (ii) no Incremental Revolving Facility shall have any amortization. In the case of any Incremental Revolving Facility that increases the commitments under the Revolving Facility or any other existing revolving credit facility hereunder, the manner in which such increase is implemented shall be reasonably satisfactory to the Administrative Agent. At no time shall there be Revolving Commitments hereunder (including revolving commitments in respect of any Incremental Revolving Facility, Extended Revolving Commitments and any original Revolving Commitments) that have more than four different maturity dates.
|
2.25.
|
Extensions of Term Loans and Revolving Commitments
.
(a)
Notwithstanding anything to the contrary in this Agreement, pursuant to one or more offers (each, an “
Extension Offer
”) made from time to time by the Borrower to all Lenders of Term Loans with a like maturity date or Revolving Commitments with a like maturity date, in each case on a pro rata basis (based on the aggregate outstanding principal amount of the respective Term Loans or Revolving Commitments with a like maturity date, as the case may be) and on the same terms to each such Lender, the Borrower is hereby permitted to consummate from time to time transactions with individual Lenders that accept the terms contained in such Extension Offers to extend the maturity date of each such Lender’s Term Loans and/or Revolving Commitments and otherwise modify the terms of such Term Loans and/or Revolving Commitments pursuant to the terms of the relevant Extension Offer (including by increasing the interest rate or fees payable in respect of such Term Loans and/or Revolving Commitments (and related outstandings) and/or modifying the amortization schedule in respect of such Lender’s Term Loans) (each, an “
Extension
”, and each group of Term Loans or Revolving Commitments, as applicable, in each case as so extended, as well as the original Term Loans and the original Revolving Commitments (in each case not so extended), being a “tranche”; any Extended Term Loans shall constitute a separate tranche of Term Loans from the tranche of Term Loans from which they were converted, and any Extended Revolving Commitments shall constitute a separate tranche of Revolving Commitments from the tranche of Revolving Commitments from which they were converted), so long as the following terms are satisfied: (i) no Default or Event of Default shall have occurred and be continuing at the time the offering document in respect of an Extension Offer is delivered to the Lenders, (ii) except as to interest rates, fees and final maturity (which shall be determined by the Borrower and set forth in the relevant Extension Offer), the Revolving Commitment of any Revolving Lender that agrees to an extension with respect to such Revolving Commitment extended pursuant to an Extension (an “
Extended Revolving Commitment
”; and the Loans thereunder, “
Extended Revolving Loans
”), and the related outstandings, shall be a Revolving Commitment (or related outstandings, as the case may be) with the same terms as the original Revolving Commitments (and related outstandings);
provided
that (x) subject to the provisions of Section 3.1(c) to the extent dealing with Letters of Credit which mature or expire after a maturity date when there exist Extended Revolving Commitments with a longer maturity date, all Letters of Credit shall be participated in on a pro rata basis by all Lenders with Revolving Commitments in accordance with their Revolving Percentages (and except as provided in Section 3.1(c), without giving effect to changes thereto on an earlier maturity date with respect to Letters of Credit theretofore incurred or issued) and all borrowings under Revolving Commitments and repayments thereunder shall be made on a pro rata basis (except for (A) payments of interest and fees at different rates on Extended Revolving Commitments (and related outstandings) and (B) repayments required upon the maturity date of the non-extending Revolving Commitments) and (y) at no time shall there be Revolving Commitments hereunder (including Extended Revolving Commitments, any revolving commitments under any Incremental Revolving Facility and any original Revolving Commitments) that have more than four different maturity dates, (iii) except as to interest rates, fees, amortization, final maturity date, premium, required prepayment dates and participation in prepayments (which shall, subject to immediately succeeding clauses (iv), (v) and (vi), be determined between the Borrower and set forth in the relevant Extension Offer), the Term Loans of any Term Lender that agrees to an extension with respect to such Term Loans extended pursuant to any Extension (“
Extended Term Loans
”) shall have the same terms as the tranche of Term Loans subject to such Extension Offer until the maturity of such Term Loans, (iv) the final maturity date of any Extended Term Loans shall be no earlier than the then latest maturity date hereunder and the amortization schedule applicable to Term Loans pursuant to Section 2.3 for periods prior to the Term Loan Maturity Date, as applicable, may not be increased, (v) the weighted average life of any Extended Term Loans shall be no shorter than the remaining weighted average life of the Term Loans extended thereby, (vi) any Extended Term Loans may participate on a pro rata basis or a less than pro rata basis (but not greater than a pro rata basis) in any voluntary or mandatory repayments or prepayments hereunder, in each case as specified in the respective Extension Offer, (vii) if the aggregate principal amount of Term Loans (calculated on the face amount thereof) or Revolving Commitments, as the case may be, in respect of which Term Lenders or Revolving Lenders, as the case may be, shall have accepted the relevant Extension Offer shall exceed the maximum aggregate principal amount of Term Loans or Revolving Commitments, as the case may be, offered to be extended by the Borrower pursuant to such Extension Offer, then the Term Loans or Revolving Loans, as the case may be, of such Term Lenders or Revolving Lenders, as the case may be, shall be extended ratably up to such maximum amount based on the respective principal amounts (but not to exceed actual holdings of record) with respect to which such Term Lenders or Revolving Lenders, as the case may be, have accepted such Extension Offer, (viii) all documentation in respect of such Extension shall be consistent with the foregoing, (ix) any applicable Minimum Extension Condition shall be satisfied unless waived by the Borrower and (x) the Minimum Tranche Amount shall be satisfied unless waived by the Administrative Agent.
|
2.26.
|
Prepayments Below Par
.
(a)
Notwithstanding anything to the contrary set forth in this Agreement (including Sections 2.17 or 10.7) or any other Loan Document, the Borrower shall have the right at any time and from time to time to prepay Term Loans to the Lenders at a discount to the par value of such Loans and on a non pro rata basis (each, a “
Discounted Voluntary Prepayment
”) pursuant to the procedures described in this Section 2.26;
provided
that (A) on the date of the Discounted Prepayment Option Notice and after giving effect to the Discounted Voluntary Prepayment, there shall be no outstanding Revolving Loans, (B) any Discounted Voluntary Prepayment shall be offered to all Term Lenders of a particular tranche on a pro rata basis, (C) the Borrower shall deliver to the Administrative Agent, together with each Discounted Prepayment Option Notice, a certificate of a Responsible Officer of the Borrower (1) stating that no Event of Default has occurred and is continuing or would result from the Discounted Voluntary Prepayment, (2) containing a customary representation and warranty that there is no material non-public information as of such date, (3) stating that each of the conditions to such Discounted Voluntary Prepayment contained in this Section 2.26 has been satisfied and (4) specifying the aggregate principal amount of Term Loans to be prepaid pursuant to such Discounted Voluntary Prepayment and (D) the aggregate amount of Term Loans prepaid pursuant to this Section 2.26 (valued at the par amount thereof) shall not exceed $100,000,000.
|
3.1.
|
L/C Commitment
.
(a)
Subject to the terms and conditions hereof, the Issuing Lender, in reliance on the agreements of the other Revolving Lenders set forth in Section 3.4(a), agrees to issue standby letters of credit (“
Letters of Credit
”) for the account of the Borrower or the Subsidiaries listed on Schedule 3.1 (as such schedule may be updated from time to time to the satisfaction of the Issuing Lender), and to amend or extend Letters of Credit previously issued by it, on any Business Day during the Revolving Commitment Period in such form as may be approved from time to time by the Issuing Lender;
provided
, that the Issuing Lender shall have no obligation to issue any Letter of Credit if, after giving effect to such issuance, (i) the L/C Obligations would exceed the L/C Commitment, (ii) the L/C Obligations in respect of Letters of Credit issued by the Issuing Lender would exceed the Issuing Lender’s L/C Sublimit or (iii) the aggregate amount of the Available Revolving Commitments would be less than zero. Each Letter of Credit shall (i) be denominated in Dollars and (ii) expire no later than the earlier of (x) the first anniversary of its date of issuance and (y) the date that is five Business Days prior to the Revolving Termination Date;
provided
that any Letter of Credit with a one-year term may provide for the renewal thereof for additional one-year periods (which shall in no event extend beyond the date referred to in clause (y) above);
provided
further
, that in the event any such Letter of Credit is renewed beyond the date referred to in clause (y) above, such Letter of Credit shall be cash collateralized or otherwise credit supported to the reasonable satisfaction of the Administrative Agent and the Issuing Lender on or prior to the date that is five Business Days prior to the Revolving Termination Date.
|
3.2.
|
Procedure for Issuance and Amendment of Letter of Credit
. The Borrower may from time to time request that the Issuing Lender issue or amend, as the case may be, a Letter of Credit by delivering to the Issuing Lender and the Administrative Agent at their respective addresses for notices specified herein an Application therefor, completed to the satisfaction of each of the Issuing Lender and the Administrative Agent, and such other certificates, documents and other papers and information as the Issuing Lender may request. Upon receipt of any Application, the Issuing Lender will process such Application and the certificates, documents and other papers and information delivered to it in connection therewith in accordance with its customary procedures (including receiving information from the Administrative Agent that there is sufficient availability under the L/C Commitment and the Revolving Commitment) and shall promptly issue or amend, as applicable, the Letter of Credit requested thereby (but in no event shall the Issuing Lender be required to issue or amend any Letter of Credit earlier than three Business Days after its receipt of the Application therefor and all such other certificates, documents and other papers and information relating thereto) by issuing the original of such Letter of Credit to the beneficiary thereof, amending an existing Letter of Credit, or as otherwise may be agreed to by the Issuing Lender and the Borrower. The Issuing Lender shall furnish a copy of such Letter of Credit to the Borrower promptly following the issuance or amendment thereof. The Issuing Lender shall promptly furnish to the Administrative Agent, which shall in turn promptly furnish to the Lenders, notice of the issuance or amendment of each Letter of Credit (including the amount thereof).
|
3.3.
|
Fees and Other Charges
.
(a)
The Borrower will pay a fee on all outstanding undrawn and unexpired Letters of Credit at a per annum rate equal to the Applicable Margin then in effect with respect to Eurodollar Loans under the Revolving Facility, shared ratably among the Revolving Lenders and payable quarterly in arrears on each Fee Payment Date after the issuance date. In addition, the Borrower shall pay to the Issuing Lender for its own account a fronting fee of 0.125% per annum on the undrawn and unexpired amount of each Letter of Credit, payable quarterly in arrears on each Fee Payment Date after the issuance date or amendment date, as applicable.
|
3.4.
|
L/C Participations
.
(a)
The Issuing Lender irrevocably agrees to grant and hereby grants to each L/C Participant, and, to induce the Issuing Lender to issue Letters of Credit, each L/C Participant irrevocably agrees to accept and purchase and hereby accepts and purchases from the Issuing Lender, on the terms and conditions set forth below, for such L/C Participant’s own account and risk an undivided interest equal to such L/C Participant’s Revolving Percentage in the Issuing Lender’s obligations and rights under and in respect of each Letter of Credit and the amount of each draft paid by the Issuing Lender thereunder. Each L/C Participant agrees with the Issuing Lender that, if a draft is paid under any Letter of Credit for which the Issuing Lender is not reimbursed in full by the Borrower in accordance with the terms of this Agreement (or in the event that any reimbursement received by the Issuing Lender shall be required to be returned to it at any time), such L/C Participant shall pay to the Issuing Lender upon demand at the Issuing Lender’s address for notices specified herein an amount equal to such L/C Participant’s Revolving Percentage of the amount that is not so reimbursed (or is so returned). Each L/C Participant’s obligation to pay such amount shall be absolute and unconditional and shall not be affected by any circumstance, including (i) any setoff, counterclaim, recoupment, defense or other right that such L/C Participant may have against the Issuing Lender, the Borrower or any other Person for any reason whatsoever, (ii) the occurrence or continuance of a Default or an Event of Default or the failure to satisfy any of the other conditions specified in Section 5, (iii) any adverse change in the condition (financial or otherwise) of the Borrower, (iv) any breach of this Agreement or any other Loan Document by the Borrower, any other Loan Party or any other L/C Participant or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing.
|
3.5.
|
Reimbursement Obligation of the Borrower
. If any draft is paid under any Letter of Credit, the Borrower shall reimburse the Issuing Lender for the amount of (a) the draft so paid and (b) any taxes, fees, charges or other costs or expenses incurred by the Issuing Lender in connection with such payment, not later than 1:00 P.M., New York City time, on (i) the Business Day that the Borrower receives notice of such draft, if such notice is received on such day prior to 10:00 A.M., New York City time, or (ii) if clause (i) above does not apply, the Business Day immediately following the day that the Borrower receives such notice;
provided
, that the Borrower may, subject to the conditions to borrowing set forth herein, request in accordance with Section 2.5 that such payment be financed with an ABR Revolving Loan in an equivalent amount and, to the extent so financed, the Borrower’s obligation to make such payment shall be discharged and replaced by the resulting ABR Revolving Loan. Each such payment shall be made to the Issuing Lender at its address for notices referred to herein in Dollars and in immediately available funds. Interest shall be payable on any such amounts from the date on which the relevant draft is paid until payment in full at the rate set forth in (x) until the Business Day next succeeding the date of the relevant notice, Section 2.14(b) and (y) thereafter, Section 2.14(c).
|
3.6.
|
Obligations Absolute
. The Borrower’s obligations under this Section 3 shall be absolute and unconditional under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment that the Borrower may have or have had against the Issuing Lender, any beneficiary of a Letter of Credit or any other Person. The Borrower also agrees with the Issuing Lender that the Issuing Lender shall not be responsible for, and the Borrower’s Reimbursement Obligations under Section 3.5 shall not be affected by, among other things, the validity or genuineness of documents or of any endorsements thereon, even though such documents shall in fact prove to be invalid, fraudulent or forged, or any dispute between or among the Borrower and any beneficiary of any Letter of Credit or any other party to which such Letter of Credit may be transferred or any claims whatsoever of the Borrower against any beneficiary of such Letter of Credit or any such transferee. The Issuing Lender shall not be liable for any error, omission, interruption or delay in transmission, dispatch or delivery of any message or advice, however transmitted, in connection with any Letter of Credit, except for errors or omissions found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of the Issuing Lender. The Borrower agrees that any action taken or omitted by the Issuing Lender under or in connection with any Letter of Credit or the related drafts or documents, if done in the absence of gross negligence or willful misconduct, shall be binding on the Borrower and shall not result in any liability of the Issuing Lender to the Borrower.
|
3.7.
|
Letter of Credit Payments
. If any draft shall be presented for payment under any Letter of Credit, the Issuing Lender shall promptly notify the Borrower of the date and amount thereof. The responsibility of the Issuing Lender to the Borrower in connection with any draft presented for payment under any Letter of Credit shall, in addition to any payment obligation expressly provided for in such Letter of Credit, be limited to determining that the documents (including each draft) delivered under such Letter of Credit in connection with such presentment are substantially in conformity with such Letter of Credit.
|
3.8.
|
Applications
. To the extent that any provision of any Application related to any Letter of Credit is inconsistent with the provisions of this Section 3, the provisions of this Section 3 shall apply.
|
3.9.
|
Letters of Credit Issued for Subsidiaries
. Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations, or is for the account of, a Subsidiary, the Borrower shall be obligated to reimburse the Issuing Lender hereunder of any and all drawings under such Letter of Credit. The Borrower hereby acknowledges that the issuance of Letters of Credit for the account of Subsidiaries inures to the benefit of the Borrower, and that the Borrower’s business derives substantial benefits from the businesses of such Subsidiaries.
|
4.1.
|
Financial Condition
. The Borrower has heretofore delivered to the Lenders (if disclosed in SEC Filings, such statements are deemed delivered to the Lenders) the financial statements referred to in Section 5.2(e). Such financial statements and all financial statements delivered pursuant to Sections 6.01(a) and (b) have been prepared in accordance with GAAP and present fairly and accurately the financial condition and results of operations and cash flows of the Borrower, in each case as of the dates and for the periods to which they relate (subject, in the case of financial statements referred to in clause (ii) of Section 5.2(e), to normal year-end audit adjustment and the absence of footnotes).
|
4.2.
|
No Change
. Since December 31, 2014, there has been no development or event that has had or could reasonably be expected to have a Material Adverse Effect.
|
4.3.
|
Existence; Compliance with Law
. Each Group Member (a) is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (b) has the power and authority, and the legal right, to own and operate its property, to lease the property it operates as lessee and to conduct the business in which it is currently engaged, (c) is duly qualified as a foreign corporation or other organization and in good standing under the laws of each jurisdiction where its ownership, lease or operation of property or the conduct of its business requires such qualification and (d) is in compliance with all Requirements of Law, except in the case of each of (b) through (d), to the extent that the failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Effect.
|
4.4.
|
Power; Authorization; Enforceable Obligations
. Each Loan Party has the power and authority, and the legal right, to make, deliver and perform the Loan Documents to which it is a party and, in the case of the Borrower, to obtain extensions of credit hereunder. Each Loan Party has taken all necessary organizational action to authorize the execution, delivery and performance of the Loan Documents to which it is a party and, in the case of the Borrower, to authorize the extensions of credit on the terms and conditions of this Agreement. Each Loan Document has been duly executed and delivered on behalf of each Loan Party party thereto. This Agreement constitutes, and each other Loan Document upon execution will constitute, a legal, valid and binding obligation of each Loan Party party thereto, enforceable against each such Loan Party in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law). No consent or authorization of, filing with, notice to or other act by or in respect of, any Governmental Authority or any other Person is required in connection with the execution, delivery, performance, validity or enforceability of any of the Loan Documents, except (i) the filings referred to in Section 4.19 or otherwise required in order to perfect, record or maintain the security interests granted under the Security Documents and (ii) those that, if not obtained or made, could not reasonably be expected to have a Material Adverse Effect.
|
4.5.
|
No Legal Bar
. The execution, delivery and performance of this Agreement and the other Loan Documents, the issuance of Letters of Credit, the borrowings hereunder and the use of the proceeds thereof will not violate any Requirement of Law or any Contractual Obligation of any Group Member, except for any such violation other than with respect to a violation of the organizational documents of any Group Member, which could not reasonably be expected to have a Material Adverse Effect, and will not result in, or require, the creation or imposition of any Lien on any of their respective properties or revenues pursuant to any such Requirement of Law or any such Contractual Obligation (other than the Liens created by the Security Documents).
|
4.6.
|
Litigation
. No litigation, investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the knowledge of any Responsible Officer of the Borrower, threatened in writing by or against any Group Member or against any of the properties or revenues of any Group Member (a) with respect to any of the Loan Documents or any of the transactions contemplated hereby or thereby, or (b) that could reasonably be expected to have a Material Adverse Effect.
|
4.7.
|
Insurance
. The properties of the Group Members are insured with financially sound and reputable insurance companies, in at least such amounts and against at least such risks (but including in any event public liability, product liability and business interruption) as are customarily insured against by Persons engaged in the same general area by companies engaged in the same or a similar business, and owning similar properties, as the Group Members.
|
4.8.
|
Ownership of Property; Liens
. Each Group Member has title in fee simple to, or a valid leasehold interest in, all its real property, and good title to, or a valid leasehold interest in, all its other property except as could not reasonably be expected to materially interfere with the conduct of business of the Group Members, taken as a whole, and none of such property is subject to any Lien except as permitted by Section 7.3.
|
4.9.
|
Intellectual Property
. Each Group Member owns, is licensed to use or possesses the right to use all material Intellectual Property necessary for the conduct of its business as currently conducted. No claim has been asserted in writing and is pending by any Person challenging the use of any Intellectual Property owned by any Group Member or the validity or effectiveness of any such Intellectual Property, nor does any Responsible Officer of the Borrower know of any valid basis for any such claim. The conduct of the business by each Group Member does not infringe on the rights of any Person in any material respect.
|
4.10.
|
Taxes
. (i) Each Group Member has filed or caused to be filed all material federal, state and other tax returns that are required to be filed and has paid all taxes shown to be due and payable on said returns or on any assessments made against it or any of its property and all other taxes, fees or other charges imposed on it or any of its property by any Governmental Authority (other than any the amount or validity of which are currently being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have been provided on the books of the relevant Group Member); and (ii) no tax Lien has been filed, and, to the knowledge of the Borrower, no claim is being asserted, with respect to any such tax, fee or other charge.
|
4.11.
|
Federal Regulations
. No part of the proceeds of any Loans, and no other extensions of credit hereunder, will be used (a) for “buying” or “carrying” any “margin stock” within the respective meanings of each of the quoted terms under Regulation U as now and from time to time hereafter in effect for any purpose that violates the provisions of the Regulations of the Board or (b) for any purpose that violates the provisions of the Regulations of the Board. If requested by any Lender or the Administrative Agent, the Borrower will furnish to the Administrative Agent and each Lender a statement to the foregoing effect in conformity with the requirements of FR Form G-3 or FR Form U‑1, as applicable, referred to in Regulation U.
|
4.12.
|
Labor Matters
. Except as, in the aggregate, could not reasonably be expected to have a Material Adverse Effect: (a) there are no strikes or other labor disputes against any Group Member pending or, to the knowledge of the Borrower, threatened; (b) hours worked by and payment made to employees of each Group Member have not been in violation of the Fair Labor Standards Act or any other applicable Requirement of Law dealing with such matters (including but not limited to meal and rest breaks); (c) all payments due from any Group Member on account of employee health and welfare insurance have been paid or accrued as a liability on the books of the relevant Group Member; (d) all individuals have been properly classified as employees or contractors; (e) there is no litigation or other proceeding pending, or to the knowledge of the Borrower, threatened, against any Group Member arising out of employment matters; and (f) no Group Member is subject to any consent decree arising out of employment matters.
|
4.13.
|
ERISA
. Except as could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect: (i) each Plan is drafted and has been operated and administered in compliance with the applicable provisions of ERISA and the provisions of the Code relating to Plans and the regulations and published interpretations thereunder; (ii) no ERISA Event or Foreign Plan Event has occurred or is reasonably expected to occur; (iii) all amounts required by applicable law with respect to, or by the terms of, any retiree welfare benefit arrangement maintained by any Group Member or any ERISA Affiliate or to which any Group Member or any ERISA Affiliate has an obligation to contribute have been accrued in accordance with ASC Topic 715-60. The present value of all accrued benefits under each Pension Plan (determined based on the assumptions used by such Pension Plans pursuant to Section 430(h) of the Code) did not, as of the last annual valuation date prior to the date on which this representation is made or deemed made, exceed by more than a material amount the value of the assets of such Pension Plan (as determined pursuant to Section 430(g) of the Code) allocable to such accrued benefits, and the present value of all accumulated benefit obligations of all underfunded Pension Plans (based on the assumptions used for purposes of ASC Topic 715-30) did not, as of the date of the most recent financial statements reflecting such amounts, exceed by more than a material amount the fair market value of the assets of all such underfunded Pension Plans; (iv) no Group Member nor any ERISA Affiliate has had a complete or partial withdrawal from any Multiemployer Plan, and, to the knowledge of the Loan Parties, none of the Loan Parties nor any ERISA Affiliate would become subject to any liability under ERISA if the Loan Parties or any such ERISA Affiliate were to withdraw completely from all Multiemployer Plans as of the valuation date most closely preceding the date on which this representation is made or deemed made; and (f) no such Multiemployer Plan is Insolvent.
|
4.14.
|
Investment Company Act; Other Regulations
. No Loan Party is an “investment company”, or a company “controlled” by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended from time to time. No Loan Party is subject to regulation under any Requirement of Law (other than Regulation X of the Board) that limits its ability to incur Indebtedness.
|
4.15.
|
Subsidiaries
. Except as disclosed to the Administrative Agent by the Borrower in writing from time to time after the Amendment No. 2 Effective Date, (a) Schedule 4.15 (i) sets forth the name and jurisdiction of organization of each Subsidiary and, as to each such Subsidiary, the percentage of each class of Capital Stock owned by any Loan Party and (ii) identifies all of the Unrestricted Subsidiaries and (b) there are no outstanding subscriptions, options, warrants, calls, rights or other agreements or commitments (other than stock options granted to employees or directors and directors’ qualifying shares) of any nature relating to any Capital Stock of any Subsidiary of the Borrower, except to the extent permitted by the Loan Documents.
|
4.16.
|
Use of Proceeds
. The proceeds of the Loans made on the Closing Date were used to satisfy the condition in Section 5.1(b). The proceeds of the Term Loans and the Revolving Loans funded on the Amendment No. 1 Effective Date were used to pay a portion of the consideration in respect of the Acquisition and to pay fees, costs and expenses in connection with the Amendment No. 1 Transactions. The proceeds of the Term Loans funded on the Amendment No. 2 Effective Date shall be used to repay existing Indebtedness of the Borrower and to pay fees, costs and expenses in connection with Amendment No. 2. The proceeds of the Revolving Loans funded on or after the Amendment No. 2 Effective Date and the Letters of Credit shall be used for working capital or for other general corporate purposes of the Group Members (including for Permitted Acquisitions and other Investments and Restricted Payments).
|
4.17.
|
Environmental Matters
.
|
4.18.
|
Accuracy of Information, etc
. No statement or information contained in this Agreement, any other Loan Document or any other document, certificate or statement (other than projections, budgets, estimates, other forward-looking information,
pro
forma
financial information and information of a general or industry specific nature) furnished by or on behalf of any Loan Party to the Administrative Agent or the Lenders, or any of them, on or prior to the Amendment No. 2 Effective Date for use in connection with the transactions contemplated by this Agreement or the other Loan Documents, taken as a whole, contain as of the date such statement, information, document or certificate was so furnished any untrue statement of a material fact or omitted to state a material fact necessary to make the statements contained herein or therein not materially misleading in light of the circumstances when made. The projections, budgets, estimates, other forward-looking information,
pro
forma
financial information and information of a general or industry specific nature, contained in the materials referenced above are based upon good faith estimates and assumptions believed by management of the Borrower to be reasonable at the time made, it being recognized by the Lenders that such financial information as it relates to future events is not to be viewed as fact and that actual results during the period or periods covered by such financial information may differ from the projected results set forth therein by a material amount.
|
4.19.
|
Security Documents
. (a) The Guarantee and Collateral Agreement is effective to create in favor of the Administrative Agent, for the benefit of the Lenders, a legal, valid and enforceable security interest in the Collateral described therein and proceeds thereof. In the case of the certificated Pledged Stock described in the Guarantee and Collateral Agreement, when stock certificates representing such Pledged Stock are delivered to the Administrative Agent (together with a properly completed and signed stock power or endorsement), and in the case of the other Collateral described in the Guarantee and Collateral Agreement, when financing statements and other filings specified on Schedule 4.19 in appropriate form are filed in the offices specified on Schedule 4.19, the Guarantee and Collateral Agreement shall constitute a fully perfected Lien on, and security interest in, all right, title and interest of the Loan Parties in such Collateral and the proceeds thereof, as security for the Obligations (as defined in the Guarantee and Collateral Agreement), in each case prior and superior in right to any other Person (except, in the case of Collateral other than Pledged Stock, Liens permitted by Section 7.3).
|
4.20.
|
Solvency
. As of the Amendment No. 2 Effective Date, the Loan Parties on a consolidated basis are, and immediately after giving effect to the Amendment No. 2 Transactions (and the payment of fees and expenses in connection therewith) will be, Solvent.
|
4.21.
|
Anti-Terrorism Law; Anti-Corruption Laws
. The Borrower has implemented and maintains in effect policies and procedures designed to ensure compliance by the Borrower, the Subsidiaries and their directors, officers, employees and agents with applicable Anti-Terrorism Law, Anti-Corruption Laws and Sanctions, and the Borrower and its Subsidiaries are in compliance with applicable Anti-Terrorism Law, Anti-Corruption Laws and Sanctions in all material respects. None of (a) the Borrower or any Subsidiary or (b) to the knowledge of the Borrower, (i) any director, officer or employee of the Borrower or any Subsidiary or (ii) any agent of the Borrower or any Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person or in violation of any Sanctions. The Closing Date Transactions and the Amendment No. 1 Transactions did not, and the Amendment No. 2 Transactions will not, violate any applicable Anti-Terrorism Law, Anti-Corruption Laws or Sanctions.
|
4.22.
|
EEA Financial Institutions
. No Loan Party is an EEA Financial Institution.
|
5.1.
|
Conditions to Initial Extension of Credit
. The agreement of each Lender to make the initial extensions of credit requested to be made by it on the Closing Date was subject to the satisfaction, prior to or concurrently with the making of such extension of credit on the Closing Date, of the following conditions precedent (it being understood that terms used in this Section 5.1 shall have the meanings assigned thereto in the Existing Credit Agreement and Section or Schedule references used in this Section 5.1 shall be references to such Section or Schedule in respect of the Existing Credit Agreement):
|
5.2.
|
Conditions to Amendment No. 2 Effective Date
. The effectiveness of Amendment No. 2 and the agreement of each Incremental Lender (as defined therein) to make the extensions of credit requested to be made by it on the Amendment No. 2 Effective Date is subject to the satisfaction, prior to or concurrently with the making of such extension of credit on the Amendment No. 2 Effective Date, of the following conditions precedent:
|
6.1.
|
Financial Statements
. Furnish to the Administrative Agent and each Lender:
|
6.2.
|
Certificates; Other Information
. Furnish to the Administrative Agent and each Lender:
|
6.3.
|
Payment of Obligations
. Pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all its material obligations of whatever nature, including tax liabilities, except where such obligation is currently being contested in good faith by appropriate proceedings and reserves in conformity with GAAP with respect thereto have been provided on the books of the Borrower or any of its relevant Restricted Subsidiaries.
|
6.4.
|
Maintenance of Existence; Compliance
. (a)(i) Preserve, renew and keep in full force and effect its organizational existence and (ii) take all reasonable action to maintain all rights, privileges and franchises reasonably necessary or desirable in the normal conduct of its business, except, in each case, as otherwise permitted by Section 7.4 or 7.5 and except, in the case of clause (ii) above, to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect; and (b) comply with Requirements of Law, except (i) to the extent that failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Effect or (ii) to the extent such Requirement of Law is currently being contested in good faith by appropriate proceedings. The Borrower will maintain in effect and enforce policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their directors, officers, employees and agents with applicable Anti-Terrorism Law, Anti-Corruption Laws and Sanctions.
|
6.5.
|
Maintenance of Property; Insurance
. (a) (i) Keep all material property reasonably necessary in the conduct of its business in good working order and condition, ordinary wear and tear excepted and (ii) maintain with financially sound and reputable insurance companies insurance on all its property in at least such amounts and against at least such risks (but including in any event public liability, product liability and business interruption) as are customarily insured against by Persons engaged in the same general area by companies engaged in the same or a similar business and owning similar properties.
|
6.6.
|
Inspection of Property; Books and Records; Discussions
. (a) Keep proper books of records and account in which full, true and correct entries in conformity with GAAP (or, in the case of Foreign Subsidiaries, generally accepted accounting principles in effect from time to time in their respective jurisdictions of organization) and all Requirements of Law shall be made of all dealings and transactions in relation to its business and activities and (b) at reasonable times and upon reasonable advance notice, as often as may be desired, permit representatives of the Administrative Agent or any Lender to visit and inspect any of its properties and examine and make abstracts from any of its books and records and to discuss the business, operations, properties and financial and other condition of the Group Members with officers and employees of the Group Members and with their independent certified public accountants;
provided
, that (i) representatives of the Group Members may be present and participate in any such discussion with such accountants and (ii) unless an Event of Default has occurred and is continuing, such visits, inspections and making of abstracts shall occur not more than once in any fiscal quarter for the Administrative Agent and all of the Lenders taken together.
|
6.7.
|
Notices
. Promptly after a Responsible Officer or any Loan Party obtains knowledge thereof, give notice to the Administrative Agent and each Lender of:
|
6.8.
|
Environmental Laws
.
(a)
Comply with, and undertake reasonable efforts to ensure compliance, by all tenants and subtenants, if any, with, all applicable Environmental Laws, and obtain and comply with and maintain, and undertake reasonable efforts to ensure that all tenants and subtenants obtain and comply with and maintain, any and all licenses, approvals, notifications, registrations or permits required by applicable Environmental Laws.
|
6.9.
|
Ratings
. Use commercially reasonable efforts to obtain and maintain a public corporate family and/or corporate credit rating, as applicable, and public ratings in respect of the Facilities, in each case from each of S&P and Moody’s.
|
6.10.
|
Further Assurances; Additional Collateral, etc
.
(a)
With respect to any property acquired after the Closing Date by any Loan Party (other than (x) any property described in paragraph (c) below, (y) any property subject to a Lien expressly permitted by Section 7.3(g) and (z) any Excluded Collateral (as defined in the Guarantee and Collateral Agreement)) as to which the Administrative Agent, for the benefit of the Secured Parties, does not have a perfected Lien, promptly (and in any event within 30 days of acquisition) (i) execute and deliver to the Administrative Agent such amendments to the Guarantee and Collateral Agreement or such other documents as the Administrative Agent deems necessary or advisable to grant to the Administrative Agent, for the benefit of the Secured Parties, a security interest in such property and (ii) take all actions necessary or advisable to grant to the Administrative Agent, for the benefit of the Secured Parties, a perfected first priority security interest in such property, including the filing of Uniform Commercial Code financing statements in such jurisdictions as may be required by the Guarantee and Collateral Agreement or by law or as may be requested by the Administrative Agent and the filing of documents with the United States Patent and Trademark Office and the United States Copyright Office as may be required by the Security Documents or by law or as may be requested by the Administrative Agent.
|
6.11.
|
Designation of Subsidiaries
. (a) The Board of Directors of the Borrower may at any time designate any Restricted Subsidiary as an Unrestricted Subsidiary or any Unrestricted Subsidiary as a Restricted Subsidiary;
provided
that (i) immediately before and after such designation, no Default or Event of Default shall have occurred and be continuing, (ii) no Subsidiary may be designated as an Unrestricted Subsidiary if it has Indebtedness with recourse to any Group Member, (ii) no Subsidiary may be designated as an Unrestricted Subsidiary if it was previously designated an Unrestricted Subsidiary, (iv) no Subsidiary may be designated as an Unrestricted Subsidiary if it is party to any agreement or contract with any Group Member, unless the terms of such agreement are no less favorable to the applicable Group Member than those that might be obtained from an unaffiliated third-party, (v) no Subsidiary may be designated as an Unrestricted Subsidiary if such Subsidiary is a Person with respect to which any Group Member has any direct or indirect obligation to make capital contributions or to maintain such Subsidiary’s financial condition, (vi) no Disregarded Domestic Subsidiary may be designated an Unrestricted Subsidiary, (vii) no Subsidiary may be designated an Unrestricted Subsidiary if after giving effect to such designation, the Consolidated Total Net Leverage Ratio for the most recently ended fiscal quarter for which financial statements have been delivered to the Administrative Agent and the Lenders pursuant to Section 6.1(a) or (b) would exceed 3.00 to 1.00 (with such compliance to be determined (x) disregarding the proceeds of any Indebtedness incurred as of the date of such designation in calculating such leverage ratio (it being understood that, if applicable, the use of such proceeds shall be given pro forma effect in such calculation) and (y) as though such designation happened at the beginning of the applicable fiscal period) and (viii) no Unrestricted Subsidiary may engage in any transaction described in Section 7.8 (with respect to the prepayment of any Indebtedness) if the Borrower is prohibited from engaging in such transaction.
|
7.1.
|
Financial Covenants
.
|
Fiscal Quarter Ending
|
Consolidated First Lien Leverage Ratio
|
March 31, 2016 through March 31, 2017
|
3.25:1.00
|
|
|
June 30, 2017 through December 31, 2018
|
3.65:1.00
|
March 31, 2019 through June 30, 2020
|
3.25:1.00
|
September 30, 2020 and thereafter
|
2.75:1.00
|
7.2.
|
Indebtedness
. Create, issue, incur, assume, become liable in respect of or suffer to exist any Indebtedness, except:
|
7.3.
|
Liens
. Create, incur, assume or suffer to exist any Lien upon any of its property, whether now owned or hereafter acquired, except:
|
7.4.
|
Fundamental Changes
. Enter into any merger, consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or Dispose of all or substantially all of its property or business, except that:
|
7.5.
|
Disposition of Property
. Dispose of any of its property, whether now owned or hereafter acquired, or, in the case of any Restricted Subsidiary, issue or sell any shares of such Restricted Subsidiary’s Capital Stock to any Person, except:
|
7.6.
|
Restricted Payments
. Declare or pay any dividend (other than dividends payable solely in common stock (including warrants, rights or options relating thereto of the Person making such dividend)) on, or make any payment on account of, or set apart assets for a sinking or other analogous fund for, the purchase, redemption, defeasance, retirement or other acquisition of, any Capital Stock of any Group Member, whether now or hereafter outstanding, or make any other distribution in respect thereof, either directly or indirectly, whether in cash or property or in obligations of any Group Member (collectively, “
Restricted Payments
”), except that:
|
7.7.
|
Investments
. Make any advance, loan, extension of credit (by way of guaranty or otherwise) or capital contribution to, or purchase any Capital Stock, bonds, notes, debentures or other debt securities of, or any assets constituting a business unit of, or make any other investment in, any other Person (all of the foregoing, “
Investments
”), except:
|
7.8.
|
Payments and Modifications of Certain Debt Instruments
. (a) Make or offer to make any optional or voluntary payment or prepayment of principal, repurchase or redemption of or otherwise optionally or voluntarily defease or segregate funds with respect to any unsecured Indebtedness or any Subordinated Indebtedness (collectively, “
Restricted Debt Payments
”), other than:
|
7.9.
|
Transactions with Affiliates
. Enter into any transaction, including any purchase, sale, lease or exchange of property, the rendering of any service or the payment of any management, advisory or similar fees, with any Affiliate (other than the Borrower or any Subsidiary Guarantor) unless such transaction is (a) otherwise permitted under this Agreement and (b) upon fair and reasonable terms no less favorable to the Borrower or any of its relevant Restricted Subsidiaries than it would obtain in a comparable arm’s length transaction with a Person that is not an Affiliate;
provided
, that the foregoing restriction in clause (b) shall not apply to (i) transactions between or among the Loan Parties; (ii) transactions permitted under Section 7.6; (iii) the payment of customary directors’ fees and indemnification and reimbursement of expenses to directors, officers or employees; (iv) any issuance of securities or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment agreements, stock options and stock ownership plans approved by the Borrower’s Board of Directors; (v) employment and severance arrangements entered into in the ordinary course of business between the Borrower or any Subsidiary and any employee thereof and approved by the Borrower’s Board of Directors; and (vi) intercompany transactions undertaken in good faith (as certified by a Responsible Officer of the Borrower) for the purpose of improving the consolidated tax efficiency of the Group Members.
|
7.10.
|
Sales and Leasebacks
. Enter into any arrangement with any Person providing for the leasing by any Group Member of real or personal property that has been or is to be sold or transferred by any Group Member to such Person or to any other Person to whom funds have been or are to be advanced by such Person on the security of such property or rental obligations of any Group Member, other than the Permitted Sale and Leaseback.
|
7.11.
|
Swap Agreements
. Enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge or mitigate risks to which any Group Member has actual exposure (other than those in respect of Capital Stock), (b) Swap Agreements entered into in order to effectively cap, collar or exchange interest rates (from fixed to floating rates, from one floating rate to another floating rate, from floating to fixed rates or otherwise) with respect to any interest-bearing liability or investment of any Group Member and (c) Permitted Equity Derivative Instruments.
|
7.12.
|
Changes in Fiscal Periods
. Permit the fiscal year of the Borrower to end on a day other than December 31 or change the Borrower’s method of determining fiscal quarters.
|
7.13.
|
Negative Pledge Clauses
. Enter into or suffer to exist or become effective any agreement that prohibits or limits the ability of the any Group Member to create, incur, assume or suffer to exist any Lien upon any of its property or revenues, whether now owned or hereafter acquired, to secure its obligations under the Loan Documents to which it is a party other than (a) (i) this Agreement and the other Loan Documents, (ii) any agreement governing any Indebtedness incurred pursuant to Section 7.2(v), so long as any such agreement is not more restrictive than the Loan Documents and (iii) any agreement governing any Permitted Refinancing in respect of the Loans or Indebtedness incurred pursuant to Section 7.2(v), in each case, with respect to this clause (iii), so long as any such agreement is not more restrictive than the Loan Documents and such Indebtedness, as applicable, (b) any agreements governing any purchase money Liens or Capital Lease Obligations otherwise permitted hereby (in which case, any prohibition or limitation shall only be effective against the assets financed thereby), (c) any agreement in effect at the time any Restricted Subsidiary becomes a Restricted Subsidiary of the Borrower, so long as such agreement was not entered into in contemplation of such Person becoming a Restricted Subsidiary of the Borrower, as such agreement may be amended, restated, supplemented, modified extended renewed or replaced, so long as such amendment, restatement, supplement, modification, extension, renewal or replacement does not expand in any material respect the scope of any restriction contemplated by this Section 7.13 contained therein or (d) customary provisions restricting assignments, subletting, sublicensing, pledging or other transfers contained in leases, subleases, licenses or sublicenses, so long as such restrictions are limited to the property or assets subject to such leases, subleases, licenses or sublicenses, as the case may be.
|
7.14.
|
Clauses Restricting Subsidiary Distributions
. Enter into or suffer to exist or become effective any consensual encumbrance or restriction on the ability of any Restricted Subsidiary of the Borrower to (a) make Restricted Payments in respect of any Capital Stock of such Restricted Subsidiary held by, or pay any Indebtedness owed to, any Group Member, (b) make loans or advances to, or other Investments in, any Group Member or (c) transfer any of its assets to any Group Member, except for such encumbrances or restrictions existing under or by reason of (i) any restrictions existing under (A) the Loan Documents, (B) any agreement governing Indebtedness incurred pursuant to Section 7.2(v) or (C) any agreement governing Permitted Refinancing in respect of the Loans or any Indebtedness incurred pursuant to Section 7.2(v), in each case so long as any such agreement is not more restrictive than the Loan Documents and such Indebtedness, as applicable, (ii) any restrictions with respect to a Restricted Subsidiary imposed pursuant to an agreement that has been entered into in connection with the Disposition of all or substantially all of the Capital Stock or assets of such Restricted Subsidiary, (iii) any restriction under any agreement in effect at the time any Restricted Subsidiary becomes a Restricted Subsidiary of the Borrower, so long as such agreement was not entered into in contemplation of such Person becoming a Restricted Subsidiary of the Borrower, as such agreement may be amended, restated, supplemented, modified extended renewed or replaced, so long as such amendment, restatement, supplement, modification, extension, renewal or replacement does not expand in any material respect the scope of any restriction contemplated by this Section 7.14 contained therein or (iv) customary provisions restricting assignments, subletting, sublicensing, pledging or other transfers contained in leases, subleases, licenses or sublicenses, so long as such restrictions are limited to the property or assets subject to such leases, subleases, licenses or sublicenses, as the case may be.
|
7.15.
|
Lines of Business
. Enter into any business, either directly or through any Restricted Subsidiary, except for those businesses in which the Group Members are engaged on the Amendment No. 2 Effective Date or that are reasonably related, incidental or complementary thereto, or reasonable extensions thereof.
|
7.16.
|
Use of Proceeds and Letters of Credit
. No Borrowing will be made or Letter of Credit issued, and no proceeds of any Borrowing will be used, (i) for the purpose of funding payments to any officer or employee of a Governmental Authority, Person controlled by a Governmental Authority, political party, official of a political party, candidate for political office or other Person acting in an official capacity, in each case in violation of applicable Anti-Corruption Laws, (ii) for the purpose of financing the activities of any Sanctioned Person or (iii) in any manner that would result in the violation of Anti-Terrorism Law or Sanctions by any party hereto.
|
8.1.
|
Events of Default
. If any of the following events shall occur and be continuing:
|
8.2.
|
Application of Proceeds
. The proceeds received by the Administrative Agent in respect of any sale of, collection from or other realization upon all or any part of the Collateral pursuant to the exercise by the Administrative Agent of its remedies shall be applied, in full or in part, together with any other sums then held by the Administrative Agent pursuant to this Agreement, promptly by the Administrative Agent as follows:
|
9.1.
|
Appointment
. Each Lender hereby irrevocably designates and appoints the Administrative Agent as the agent of such Lender under this Agreement, the other Loan Documents, and the Specified Swap Agreements and each such Lender irrevocably authorizes the Administrative Agent, in such capacity, to take such action on its behalf under the provisions of this Agreement, the other Loan Documents, and the Specified Swap Agreements and to exercise such powers and perform such duties as are expressly delegated to the Administrative Agent by the terms of this Agreement, the other Loan Documents, and the Specified Swap Agreements, together with such other powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary elsewhere in this Agreement, the Administrative Agent shall not have any duties or responsibilities, except those expressly set forth herein, or any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against the Administrative Agent.
|
9.2.
|
Delegation of Duties
. The Administrative Agent may execute any of its duties under this Agreement and the other Loan Documents by or through agents or attorneys‑in‑fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The Administrative Agent shall not be responsible for the negligence or misconduct of any agents or attorneys-in‑fact selected by it with reasonable care.
|
9.3.
|
Exculpatory Provisions
. (a) Neither any Agent nor any of their respective officers, directors, employees, agents, advisors, attorneys‑in‑fact or affiliates shall be (i) liable for any action lawfully taken or omitted to be taken by it or such Person under or in connection with this Agreement or any other Loan Document (except to the extent that any of the foregoing are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from its or such Person’s own gross negligence or willful misconduct) or (ii) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by any Loan Party or any officer thereof contained in this Agreement or any other Loan Document or in any certificate, report, statement or other document referred to or provided for in, or received by the Agents under or in connection with, this Agreement or any other Loan Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or for any failure of any Loan Party a party thereto to perform its obligations hereunder or thereunder. The Agents shall not be under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of any Loan Party.
|
9.4.
|
Reliance by Administrative Agent
. The Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any instrument, writing, resolution, notice, consent, certificate, affidavit, letter, telecopy or email message, statement, order or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons and upon advice and statements of legal counsel (including counsel to the Borrower), independent accountants and other experts selected by the Administrative Agent. If the payee of any Note is listed as a Lender in the Register, the Administrative Agent may deem and treat the payee of any Note as the owner thereof to the extent of such Payee’s registered principal and stated interest on any Loan for all purposes unless a written notice of assignment, negotiation or transfer thereof shall have been filed with the Administrative Agent. The Administrative Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless it shall first receive such advice or concurrence of the Required Lenders (or, if so specified by this Agreement, all Lenders) as it deems appropriate or it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. The Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement and the other Loan Documents in accordance with a request of the Required Lenders (or, if so specified by this Agreement, all Lenders), and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders and all future holders of the Loans.
|
9.5.
|
Notice of Default
. The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default unless the Administrative Agent has received notice from a Lender or the Borrower 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 the Administrative Agent receives such a notice, the Administrative Agent shall give notice thereof to the Lenders. The Administrative Agent shall take such action with respect to such Default or Event of Default as shall be reasonably directed by the Required Lenders (or, if so specified by this Agreement, all Lenders);
provided
, that unless and until the Administrative Agent shall have received such directions, the 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 in the best interests of the Lenders.
|
9.6.
|
Non-Reliance on Agents and Other Lenders
. Each Lender expressly acknowledges that neither the Agents nor any of their respective officers, directors, employees, agents, advisors, attorneys‑in‑fact or affiliates have made any representations or warranties to it and that no act by any Agent hereafter taken, including any review of the affairs of a Loan Party or any affiliate of a Loan Party, shall be deemed to constitute any representation or warranty by any Agent to any Lender. Each Lender represents to the Agents that it has, independently and without reliance upon any Agent, any Lead Arranger or any other Lender or any of their Related Parties, and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their affiliates and made its own decision to make its Loans hereunder and enter into this Agreement. Each Lender also represents that it will, independently and without reliance upon any Agent, any Lead Arranger or any other Lender or any of their Related Parties, 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 under this Agreement and the other Loan Documents, and to make such investigation as it deems necessary to inform itself as to the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their affiliates. Except for notices, reports and other documents expressly required to be furnished to the Lenders by the Administrative Agent hereunder, the Administrative Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, operations, property, condition (financial or otherwise), prospects or creditworthiness of any Loan Party or any affiliate of a Loan Party that may come into the possession of the Administrative Agent or any of its officers, directors, employees, agents, advisors, attorneys‑in‑fact or affiliates.
|
9.7.
|
Indemnification
. The Lenders agree to indemnify the Administrative Agent and its officers, directors, employees, affiliates, agents, advisors and controlling persons (each, an “
Agent Indemnitee
”) (to the extent not reimbursed by the Borrower and without limiting the obligation of the Borrower to do so), ratably according to their respective Aggregate Exposure Percentages in effect on the date on which indemnification is sought under this Section (or, if indemnification is sought after the date upon which the Commitments shall have terminated and the Loans shall have been paid in full, ratably in accordance with such Aggregate Exposure Percentages immediately prior to such date), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any time (whether before or after the payment of the Loans) be imposed on, incurred by or asserted against such Agent Indemnitee in any way relating to or arising out of, the Commitments, this Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by such Agent Indemnitee under or in connection with any of the foregoing;
provided
, that no Lender shall be liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements that are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from such Agent Indemnitee’s gross negligence, bad faith or willful misconduct. The agreements in this Section shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.
|
9.8.
|
Agent in Its Individual Capacity
. Each Agent and its affiliates may make loans to, accept deposits from and generally engage in any kind of business with any Loan Party as though such Agent were not an Agent. With respect to its Loans made or renewed by it and with respect to any Letter of Credit issued or participated in by it, each Agent shall have the same rights and powers under this Agreement and the other Loan Documents as any Lender and may exercise the same as though it were not an Agent, and the terms “Lender” and “Lenders” shall include each Agent in its individual capacity.
|
9.9.
|
Successor Administrative Agent
. The Administrative Agent may resign as Administrative Agent upon 30 days’ notice to the Lenders and the Borrower. If the Administrative Agent shall resign as Administrative Agent under this Agreement and the other Loan Documents, then the Required Lenders shall appoint a successor agent for the Lenders, which shall be a financial institution, which successor agent shall (unless an Event of Default under Section 8.1(a) or Section 8.1(f) with respect to the Borrower shall have occurred and be continuing) be subject to approval by the Borrower (which approval shall not be unreasonably withheld or delayed), whereupon such successor agent shall succeed to the rights, powers and duties of the Administrative Agent, and the term “Administrative Agent” shall mean such successor agent effective upon such appointment and approval, and the former Administrative Agent’s rights, powers and duties as Administrative Agent shall be terminated, without any other or further act or deed on the part of such former Administrative Agent or any of the parties to this Agreement or any holders of the Loans. If no successor agent has accepted appointment as Administrative Agent by the date that is 30 days following a retiring Administrative Agent’s notice of resignation, the retiring Administrative Agent’s resignation shall nevertheless thereupon become effective, and the Lenders shall assume and perform all of the duties of the Administrative Agent hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided for above. After any retiring Administrative Agent’s resignation as Administrative Agent, the provisions of this Section 9 and of Section 10.5 shall continue to inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent under this Agreement and the other Loan Documents.
|
9.10.
|
Agents
. None of the Co-Syndication Agents, the Co-Documentation Agents or the Lead Arrangers shall have any duties or responsibilities hereunder in its capacity as such.
|
10.1.
|
Amendments and Waivers
. Neither this Agreement, any other Loan Document, nor any terms hereof or thereof may be amended, supplemented or modified except in accordance with the provisions of this Section 10.1. The Required Lenders and each Loan Party party to the relevant Loan Document may, or, with the written consent of the Required Lenders, the Administrative Agent and each Loan Party party to the relevant Loan Document may, from time to time, (a) enter into written amendments, supplements or modifications hereto and to the other Loan Documents for the purpose of adding any provisions to this Agreement or the other Loan Documents or changing in any manner the rights of the Lenders or of the Loan Parties hereunder or thereunder or (b) waive, on such terms and conditions as the Required Lenders or the Administrative Agent, as the case may be, may specify in such instrument, any of the requirements of this Agreement or the other Loan Documents or any Default or Event of Default and its consequences;
provided
that no such waiver and no such amendment, supplement or modification shall (i) forgive the principal amount or extend the final scheduled date of maturity of any Loan, extend the scheduled date of any amortization payment in respect of any Term Loan, reduce the stated rate of any interest or fee payable hereunder (except (x) in connection with the waiver of applicability of any post-default increase in interest rates (which waiver shall be effective with the consent of the Majority Facility Lenders of each adversely affected Facility) and (y) that any amendment or modification of defined terms used in the financial covenants in this Agreement shall not constitute a reduction in the rate of interest or fees for purposes of this clause (i)) or extend the scheduled date of any payment thereof, or increase the amount or extend the expiration date of any Lender’s Revolving Commitment, in each case without the written consent of each Lender directly affected thereby; (ii) eliminate or reduce the voting rights of any Lender under this Section 10.1 without the written consent of such Lender; (iii) reduce any percentage specified in the definition of Required Lenders, consent to the assignment or transfer by the Borrower of any of its rights and obligations under this Agreement and the other Loan Documents, release all or substantially all of the Collateral or release all or substantially all of the Subsidiary Guarantors from their obligations under the Guarantee and Collateral Agreement, in each case without the written consent of all Lenders; (iv) reduce the percentage specified in the definition of Majority Facility Lenders with respect to any Facility without the written consent of all Lenders under such Facility; (v) amend, modify or waive any provision of Section 9 or any other provision of any Loan Document that primarily affects the Administrative Agent without the written consent of the Administrative Agent; (vi) [reserved]; (vii) amend, modify or waive any provision of Section 3 without the written consent of the Issuing Lender; (viii) amend Section 2.23 without the written consent of the Required Lenders, the Administrative Agent and the Issuing Lender; (ix) amend, modify or waive any provision of Section 8.2 without the written consent of all Lenders; or (x) amend Section 3.1(c) without the consent of Lenders holding more than 50% of the Revolving Commitments in respect of the applicable maturing Revolving Commitments (or, if the Revolving Commitments in respect of such tranche have been terminated, the Total Revolving Extensions of Credit then outstanding in respect of such maturing tranche);
provided
further
that (A) this Agreement and the other Loan Documents may be amended solely with the consent of the Administrative Agent (and without the consent of any Lender) to incorporate the terms of any Extension or any Incremental Facility, (B) the conditions set forth in Section 5.3 may be waived solely with the consent of the Majority Facility Lenders in respect of the Revolving Facility (and without the consent of any other Lender) and (C) this Agreement may be amended solely with the consent of the Borrower and the Majority Facility Lenders with respect to the applicable Facility (and, subject to clauses (i) through (x) above, without the consent of any other Lender) with respect to any amendments or modifications that affect only such Facility (it being understood that increases in the Applicable Margin, amendments or modifications to the amortization of the Term Loans as in effect on the Amendment No. 2 Effective Date, any amendment to the Maturity Date such that the Term Loans mature prior to the Maturity Date as in effect on the Amendment No. 2 Effective Date and any waiver of conditions to the provision of any Incremental Facility shall be deemed to affect each Facility). Any such waiver and any such amendment, supplement or modification shall apply equally to each of the Lenders and shall be binding upon the Loan Parties, the Lenders, the Administrative Agent and all future holders of the Loans. In the case of any waiver, the Loan Parties, the Lenders and the Administrative Agent shall be restored to their former position and rights hereunder and under the other Loan Documents, and any Default or Event of Default waived shall be deemed to be cured and not continuing; but no such waiver shall extend to any subsequent or other Default or Event of Default, or impair any right consequent thereon. To the extent that this Section 10.1 requires the consent of all Lenders to any amendment, waiver or modification, a Defaulting Lender’s vote shall not be included;
provided
, that (i) such Defaulting Lender’s Commitment may not be increased or extended without its consent and (ii) the principal amount of, or interest or fees payable on, Loans or L/C Disbursements may not be reduced or excused or the scheduled date of payment may not be postponed as to such Defaulting Lender without such Defaulting Lender’s consent.
|
10.2.
|
Notices
. All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by telecopy), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered, or three Business Days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when received, addressed as follows in the case of the Borrower and the Administrative Agent, and as set forth in an administrative questionnaire delivered to the Administrative Agent in the case of the Lenders, or to such other address as may be hereafter notified by the respective parties hereto:
|
Borrower:
|
12808 Gran Bay Parkway West
Jacksonville, Florida 32258
|
|
Attention: Chief Financial Officer
|
|
Facsimile: (904) 880-0350
|
|
Telephone: (904) 680-6600
|
|
|
Administrative Agent:
|
JPMorgan Chase Bank, N.A.
500 Stanton Christiana Road, Ops 2
Floor: 03
Newark, DE 19713-2107
|
|
Attention: JPM Loan & Agency Services Group
|
|
Facsimile: (302) 634-1417
Email: 12012443577@tls.ldsprod.com
Telephone: (302) 634-1929
With copies to:
JPMorgan Chase Bank, N.A.
383 Madison Avenue, Floor 24
New York, New York 10179
Attention: Tina Ruyter
Facsimile: (212) 270-5127
Telephone: (212) 270-4676
|
JPMorgan Chase Bank, N.A.,
as Issuing Lender:
|
JPMorgan Chase Bank, N.A.
10420 Highland Manor Dr., 4th Floor
Tampa, Florida 33610
Attention: Standby LC Unit
Facsimile: (212) -270-5100
Email: gts.ib.standby@jpmchase.com
Telephone: (212) 270-2348
|
10.3.
|
No Waiver; Cumulative Remedies
. No failure to exercise and no delay in exercising, on the part of the Administrative Agent or any Lender, any right, remedy, power or privilege hereunder or under the other Loan Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.
|
10.4.
|
Survival of Representations and Warranties
. All representations and warranties made hereunder, in the other Loan Documents and in any document, certificate or statement delivered pursuant hereto or in connection herewith shall survive the execution and delivery of this Agreement and the making of the Loans and other extensions of credit hereunder.
|
10.5.
|
Payment of Expenses and Taxes
. The Borrower agrees (a) to pay or reimburse the Administrative Agent and the Lead Arrangers for all of their respective reasonable and documented out-of-pocket costs and expenses incurred in connection with the syndication of the Facilities and the development, preparation and execution of, and any amendment, supplement or modification to, this Agreement and the other Loan Documents and any other documents prepared in connection herewith or therewith, and the consummation and administration of the transactions contemplated hereby and thereby, including the reasonable fees and disbursements of one firm of counsel to the Administrative Agent and the Lead Arrangers (and, if necessary, one local counsel in any relevant jurisdiction) and filing and recording fees and expenses, with statements with respect to the foregoing to be submitted to the Borrower prior to the Amendment No. 2 Effective Date (in the case of amounts to be paid on the Amendment No. 2 Effective Date) and from time to time thereafter on a quarterly basis or such other periodic basis as the Administrative Agent shall deem appropriate, in each case, together with backup documentation supporting such reimbursement request, (b) to pay or reimburse each Lender and the Administrative Agent for all its reasonable and documented out-of-pocket costs and expenses incurred in connection with the enforcement or preservation of any rights under this Agreement, the other Loan Documents and any such other documents, including the fees and disbursements of counsel to the Administrative Agent and the Lenders;
provided
, that the Borrower shall not be liable for the fees and disbursements of more than one separate firm for the Administrative Agent and the Lenders (unless there shall exist an actual conflict of interest among the Administrative Agent and the Lenders (or among the Lenders), in which case the Borrower shall be liable for the fees and disbursements of another separate local counsel for the affected Person) and one local counsel in any material jurisdiction (unless there shall exist an actual conflict of interest among the Administrative Agent and the Lenders (or among the Lenders), in which case the Borrower shall be liable for the fees and disbursements of another separate local counsel for the affected Person), (c) to pay, indemnify, and hold each Lender and the Administrative Agent harmless from, any and all recording and filing fees and any and all liabilities with respect to, or resulting from any delay in paying, stamp, excise and similar taxes, if any, other than those found by a final and nonappealable decision of a court of competent jurisdiction to have been caused by the willful misconduct, bad faith or gross negligence of the Administrative Agent or any Lender that may be payable or determined to be payable in connection with the execution and delivery of, or consummation or administration of any of the transactions contemplated by, or any amendment, supplement or modification of, or any waiver or consent under or in respect of, this Agreement, the other Loan Documents and any such other documents, and (d) to pay, indemnify, and hold each Lender and the Administrative Agent and each of their respective affiliates and the respective officers, directors, employees, agents, advisors, partners, representatives and controlling persons of each of the foregoing (each, an “
Indemnitee
”) harmless from and against any and all other liabilities, obligations, losses, damages, penalties, judgments, suits or actions or other legal proceedings (whether brought by a third party or the Borrower or other Loan Party), costs, expenses or disbursements of any kind or nature whatsoever arising out of the execution, delivery, enforcement, performance and administration of this Agreement, the other Loan Documents and any such other documents, including any of the foregoing relating to the use of proceeds of the Loans or the violation of, noncompliance with or liability under, any Environmental Law applicable to the operations of the Borrower or any Subsidiary or any of the Properties, any Environmental Claims, and the reasonable and documented fees and expenses of legal counsel (
provided
that the Borrower shall not be liable for the fees and expenses of more than one separate firm for the Indemnitees (unless there shall be an actual conflict of interest among the Indemnitees, in which case the Borrower shall be liable for the fees and expenses of another separate local counsel for the affected Indemnitees) and one local counsel in any material jurisdiction) (unless there shall be an actual conflict of interest among the Indemnitees, in which case the Borrower shall be liable for the fees and expenses of another separate local counsel for the affected Indemnitees) in connection with claims, actions or proceedings by any Indemnitee against any Loan Party under any Loan Document (all the foregoing in this clause (d), collectively, the “
Indemnified Liabilities
”);
provided
, that the Borrower shall have no obligation hereunder to any Indemnitee with respect to Indemnified Liabilities (x) to the extent such Indemnified Liabilities are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from the gross negligence, bad faith or willful misconduct of such Indemnitee or any of its affiliates or their respective officers, directors or employees or (y) arising out of a dispute solely between Indemnitees not involving an act or omission by the Borrower or any of its Affiliates (other than any such indemnified liabilities asserted against any Indemnitee in its capacity, or in fulfilling its role, as an agent or Lead Arranger or similar role for any Facility (including any Incremental Facility));
provided
further
that, this Section 10.5(d) shall not apply to Taxes other than any Taxes that represent losses or damages arising from any non-Tax claim.
None of the Borrower, any Lender or any Agent shall be liable for any special, indirect, consequential or punitive damages (other than as required pursuant to Section 10.5(c) or (d)). Without limiting the foregoing, and to the extent permitted by applicable law, the Borrower agrees not to assert and to cause its Subsidiaries not to assert, and hereby waives and agrees to cause its Subsidiaries to waive, all rights for contribution or any other rights of recovery with respect to all claims, demands, penalties, fines, liabilities, settlements, damages, costs and expenses of whatever kind or nature, under or related to Environmental Laws, that any of them might have by statute or otherwise against any Indemnitee. All amounts due under this Section 10.5 shall be payable not later than 10 days after written demand therefor. Statements payable by the Borrower pursuant to this Section 10.5 shall be submitted to Chief Financial Officer (Telephone No. (904) 680-6600) (Telecopy No. (904) 880-0350), at the address of the Borrower set forth in Section 10.2, or to such other Person or address as may be hereafter designated by the Borrower in a written notice to the Administrative Agent. The agreements in this Section 10.5 shall survive the termination of this Agreement and the repayment of the Loans and all other amounts payable hereunder.
|
10.6.
|
Successors and Assigns; Participations and Assignments
.
(a)
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 (including any affiliate of the Issuing Lender that issues any Letter of Credit), except that (i) the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section.
|
10.7.
|
Adjustments; Set‑off
.
(a)
Except to the extent that this Agreement or a court order expressly provides for payments to be allocated to a particular Lender or to the Lenders under a particular Facility, if any Lender (a “
Benefitted Lender
”) shall receive any payment of all or part of the Obligations owing to it (other than in connection with an assignment made pursuant to Section 10.6), or receive any Collateral in respect thereof (whether voluntarily or involuntarily, by set‑off, pursuant to events or proceedings of the nature referred to in Section 8.1(f), or otherwise), in a greater proportion than any such payment to or Collateral received by any other Lender, if any, in respect of the Obligations owing to such other Lender, such Benefitted Lender shall purchase for cash from the other Lenders a participating interest in such portion of the Obligations owing to each such other Lender, or shall provide such other Lenders with the benefits of any such Collateral, as shall be necessary to cause such Benefitted Lender to share the excess payment or benefits of such Collateral ratably with each of the Lenders;
provided
that if all or any portion of such excess payment or benefits is thereafter recovered from such Benefitted Lender, such purchase shall be rescinded, and the purchase price and benefits returned, to the extent of such recovery, but without interest.
|
10.8.
|
Counterparts
. This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed signature page of this Agreement by email or facsimile transmission shall be effective as delivery of an original executed counterpart hereof. A set of the copies of this Agreement signed by all the parties shall be lodged with the Borrower and the Administrative Agent.
|
10.9.
|
Severability
. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
|
10.10.
|
Integration
. This Agreement and the other Loan Documents represent the entire agreement of the Borrower, the Administrative Agent and the Lenders with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Administrative Agent or any Lender relative to the subject matter hereof not expressly set forth or referred to herein or in the other Loan Documents.
|
10.11.
|
GOVERNING LAW
. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK
.
|
10.12.
|
Submission To Jurisdiction; Waivers
. The Borrower hereby irrevocably and unconditionally:
|
10.13.
|
Acknowledgements
. The Borrower hereby acknowledges that:
|
10.14.
|
Releases of Guarantees and Liens
.
(a)
Notwithstanding anything to the contrary contained herein or in any other Loan Document, the Administrative Agent is hereby irrevocably authorized by each Lender (without requirement of notice to or consent of any Lender except as expressly required by Section 10.1) to take any action requested by the Borrower having the effect of releasing any Collateral or Guarantee Obligations (i) to the extent necessary to permit consummation of any transaction not prohibited by any Loan Document or that has been consented to in accordance with Section 10.1 or (ii) under the circumstances described in paragraph (b) below.
|
10.15.
|
Confidentiality
. Each of the Administrative Agent and each Lender agrees to keep confidential all Information (as defined below);
provided
, that nothing herein shall prevent the Administrative Agent or any Lender from disclosing any such Information (a) to the Administrative Agent, any other Lender or any affiliate thereof, (b) subject to an agreement to comply with the provisions of this Section, to any actual or prospective Transferee or any direct or indirect counterparty to any Swap Agreement (or any professional advisor to such counterparty), (c) to its employees, directors, agents, attorneys, accountants and other professional advisors or those of any of its affiliates,
provided
that such Persons have been advised of the confidentiality provisions hereof and are subject thereto, (d) upon the request or demand of any Governmental Authority, (e) in response to any order of any court or other Governmental Authority or as may otherwise be required pursuant to any Requirement of Law, (f) if requested or required to do so in connection with any litigation or similar proceeding, (g) that has been publicly disclosed, (h) to the National Association of Insurance Commissioners or any similar organization or any nationally recognized rating agency that requires access to information about a Lender’s investment portfolio in connection with ratings issued with respect to such Lender, (i) in connection with the exercise of any remedy hereunder or under any other Loan Document, (j) if agreed by the Borrower in its sole discretion, to any other Person or (k) to any regulatory or self-regulatory agency having supervisory authority over any Lender in connection with an examination of such Lender by such agency. “Information” means all information received from the Borrower relating to the Borrower or its business, other than any such information that is available to the Administrative Agent or any Lender on a non-confidential basis prior to disclosure by the Borrower and other than information pertaining to this Agreement routinely provided by arrangers to data service providers, including league table providers, that serve the lending industry;
provided
that in the case of information received from the Borrower after the Amendment No. 2 Effective Date, such information is clearly identified at the time of delivery as confidential.
|
10.16.
|
WAIVERS OF JURY TRIAL
. THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.
|
10.17.
|
Patriot Act
. Each Lender hereby notifies the Borrower 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
”), it is required to obtain, verify and record information that identifies each Loan Party, which information includes the name and address of each Loan Party and other information that will allow such Lender to identify each Loan Party in accordance with the Patriot Act.
|
10.18.
|
Usury Savings
. Notwithstanding any other provision herein, the aggregate interest rate charged hereunder, including all charges or fees in connection therewith deemed in the nature of interest under applicable law, shall not exceed the Highest Lawful Rate (as such term is defined below). If the rate of interest (determined without regard to the preceding sentence) under this Agreement at any time exceeds the Highest Lawful Rate (as defined below), the outstanding amount of the Loans made hereunder shall bear interest at the Highest Lawful Rate until the total amount of interest due hereunder equals the amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect. In addition, if and when the Loans made hereunder are repaid in full the total interest due hereunder (taking into account the increase provided for above) is less than the total amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect, then to the extent permitted by law, the Borrower shall pay to the Administrative Agent an amount equal to the difference between the amount of interest paid and the amount of interest which would have been paid if the Highest Lawful Rate had at all times been in effect. Notwithstanding the foregoing, it is the intention of the Lenders and the Borrower to conform strictly to any applicable usury laws. Accordingly, if any Lender contracts for, charges, or receives any consideration which constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if previously paid, shall at such Lender’s option be applied to the outstanding amount of the Loans made hereunder or be refunded to the Borrower. As used in this paragraph, the term “
Highest Lawful Rate
” means the maximum lawful interest rate, if any, that at any time or from time to time may be contracted for, charged, or received under the laws applicable to such Lender which are presently in effect or, to the extent allowed by law, under such applicable laws which may hereafter be in effect and which allow a higher maximum nonusurious interest rate than applicable laws now allow.
|
Lender
|
Revolving Commitments
(US $)
|
Term Loans
(US $)
|
JPMorgan Chase Bank, N.A.
|
$23,962,708.35
|
$47,563,528.75
|
Bank of America, N.A.
|
$23,962,708.33
|
$47,563,528.63
|
BankUnited, N.A.
|
$18,741,250.00
|
$8,518,750.00
|
Barclays Bank PLC
|
$15,000,000.00
|
$43,489,570.30
|
BMO Harris Bank, N.A.
|
$18,741,250.00
|
$8,518,750.00
|
Citizens Bank, N.A.
|
$18,741,250.00
|
$8,518,750.00
|
Compass Bank
|
$20,962,708.33
|
$50,488,528.63
|
Deutsche Bank AG New York Branch
|
$18,000,000.00
|
$9,262,500.00
|
Fifth Third Bank
|
$15,000,000.00
|
$43,489,570.30
|
Regions Bank
|
$23,962,708.33
|
$47,563,528.63
|
Royal Bank of Canada
|
$15,000,000.00
|
$20,145,937.50
|
SunTrust Bank
|
$23,962,708.33
|
$47,563,528.63
|
Wells Fargo Bank, National Association
|
$23,962,708.33
|
$47,563,528.63
|
TOTAL
|
$260,000,000.00
|
$430,250,000.00
|
Letter of Credit Number
|
Issuer
|
Beneficiary
|
Amount
|
IS0011041
|
Wells Fargo Bank, N.A.
|
ICANN
|
$300,000
|
Letter of Credit Number
|
Issuer
|
Beneficiary
|
Amount
|
NZS646426
|
Wells Fargo Bank, N.A.
|
State of Arkansas
|
$50,000
|
NZS646424
|
Wells Fargo Bank, N.A.
|
Utah Division of Consumer Protection
|
$50,000
|
NZS650698
|
Wells Fargo Bank, N.A.
|
W.A. Drew Edmonson
|
$10,000
|
Letter of Credit Number
|
Issuer
|
Beneficiary
|
Amount
|
SVBSF005691
|
Silicon Valley Bank
|
HOLUALOA SCOTTSDALE OFFICE, LLC
|
$137,659
|
SVBSF007408
|
Silicon Valley Bank
|
GSL FUND 21 SUB N, LLC, C/O GSL PROPERTY FUND 21, L.P., 5858 WESTHEIMER, SUITE 800, HOUSTON, TX
|
$937,500
|
SVBSF008304
|
Silicon Valley Bank
|
CITIZEN’S BANK, NATIONAL ASSOCIATION
|
$250,000
|
Letter of Credit Number
|
Issuer
|
Beneficiary
|
Amount
|
TFTS-280236
|
JPMorgan Chase Bank, N.A.
|
VeriSign, Inc.
|
$1,650,000.00
|
TFTS-280225A
|
JPMorgan Chase Bank, N.A.
|
Presidents Park I, LLC c/o Liberty Property Trust
|
$85,229.17
|
TFTS-280234
|
JPMorgan Chase Bank, N.A.
|
International Fidelity Insurance Company
|
$135,000.00
|
•
|
Silver Lake Management, L.L.C.
|
•
|
Kohlberg Kravis Roberts & Co. L.P.
|
•
|
TCMI, Inc.
|
•
|
Warburg Pincus LLC
|
Name
|
Jurisdiction of Organization
|
NCIT Argentina S.R.L.
|
Argentina
|
Network Solutions, LLC
|
Delaware
|
Ranger Registration (Madeira) LLC
|
Delaware
|
Register.com, Inc.
|
Delaware
|
Web.com Canada, Inc.
|
Canada
|
Web.com Holding Company, Inc.
|
Delaware
|
Subsidiary Name
|
Jurisdiction of Organization
|
Percentage of Each Class of Capital Stock Owned by Any Loan Party
|
Class of Capital Stock
|
Unrestricted Subsidiary
|
1425 N. Washington Street, LLC
|
Washington
|
100%
|
Units
|
N/A
|
Calypso Properties, LLC
|
Delaware
|
100%
|
Interests
|
N/A
|
CommuniTech Net, Inc.
|
Missouri
|
100%
|
Common Stock
|
N/A
|
Eversites, LLC
|
Texas
|
0%
|
Units
|
N/A
|
Franchise Website Solutions, L.P.
|
Delaware
|
0%
|
Units
|
N/A
|
HostPro, Inc.
|
Delaware
|
100%
|
Common Stock
|
N/A
|
InQuent, LLC
|
Delaware
|
100%
|
Interests
|
N/A
|
Interland Government Contracting, Inc.
|
Delaware
|
100%
|
Common Stock
|
N/A
|
JG Registrar, LLC
|
Delaware
|
100%
|
Interests
|
N/A
|
Key Systems .CO Registrations, LLC
|
Delaware
|
100%
|
Interests
|
N/A
|
MEI California, Inc.
|
California
|
100%
|
Common Stock
|
N/A
|
Micron Electronics International, Inc.
|
Delaware
|
100%
|
Common Stock
|
N/A
|
MonsterCommerce, LLC
|
California
|
100%
|
Interests
|
N/A
|
Multimedia Midwest, LLC
|
Delaware
|
100%
|
Interests
|
N/A
|
NameSecure L.L.C.
|
Delaware
|
100%
|
Units
|
N/A
|
Net Sol Parent LLC
|
Delaware
|
100%
|
Units
|
N/A
|
NCIT Argentina S.R.L.
|
Argentina
|
50%
|
Quotas
|
N/A
|
Network Solutions Canada ULC
|
Canada
|
100%
|
Common Shares
|
N/A
|
Network Solutions Europe, LLC
|
Delaware
|
100%
|
Interests
|
N/A
|
Network Solutions, LLC
|
Delaware
|
100%
|
Units
|
N/A
|
New Ventures Services Corp
|
British Virgin Islands
|
0%
|
Shares
|
N/A
|
NS Technologies, LLC
|
Delaware
|
100%
|
Interests
|
N/A
|
Perfect Privacy, LLC
|
Connecticut
|
100%
|
Units
|
N/A
|
Public Domain Registry .CO Registrations, LLC
|
Delaware
|
100%
|
Interests
|
N/A
|
Ranger Holdco LLC
|
Delaware
|
0%
|
Equity Interest not
divisible into Units
|
N/A
|
Ranger Registration (Madeira) LLC
|
Delaware
|
0%
|
Equity Interest not
divisible into Units
|
N/A
|
RCOM Holding Inc.
|
Delaware
|
0%
|
Common Stock
|
N/A
|
RCOM Canada Corp.
|
Canada
|
0%
|
Common Shares
|
N/A
|
RCOM Spain Holding LLC
|
Delaware
|
0%
|
Equity Interest not
divisible into Units
|
N/A
|
Register.com (Cayman) Limited Partnership
|
Cayman Islands
|
99%
(1% owned by Web.com (Cayman) GP Limited)
|
Units
|
N/A
|
Register.com, Inc.
|
Delaware
|
0%
|
Common Stock
|
N/A
|
Register.com, LP
|
Delaware
|
0%
0%
|
Common Stock
Preferred Stock
|
N/A
|
Register.com Investments Cooperatie, U.A.
|
Netherlands
|
0%
|
Equity Interest not
divisible into Units
|
N/A
|
Register Domain Spain, S.L.
|
Spain
|
0%
|
Common Shares
|
N/A
|
Register Investments ETVE, S.L.
|
Spain
|
0%
0%
0%
|
Class A Common
Class B Preferred
Class C Preferred
|
N/A
|
RPI, Inc.
|
Delaware
|
0%
|
Common Stock
|
N/A
|
Siteblast, L.L.C.
|
Texas
|
0%
|
Units
|
N/A
|
SnapNames Web.com LLC
|
Delaware
|
100%
|
Membership
Interest
|
N/A
|
TLDS L.L.C. (dba SRSplus)
|
Delaware
|
100%
|
Units
|
N/A
|
TNB, LLC
|
Delaware
|
100%
|
Units
|
N/A
|
Trellix Corporation
|
Delaware
|
100%
|
Common Stock
|
N/A
|
.US Registrar L.L.C.
|
Delaware
|
100%
|
Units
|
N/A
|
US Web Network, LLC
|
Texas
|
0%
|
Units
|
N/A
|
Wazoo Web, Inc.
|
Georgia
|
100%
|
Common Stock
|
N/A
|
Web Astro GP, Inc.
|
Delaware
|
0%
|
Common Stock
|
N/A
|
Web Astro LP, Inc.
|
Delaware
|
0%
|
Common Stock
|
N/A
|
Web.com Canada, Inc.
|
Canada
|
100%
|
Common Stock
|
N/A
|
Web.com (Cayman) GP Limited
|
Cayman Islands
|
100%
|
Common Stock
|
N/A
|
Web.com Colombia SAS
|
Colombia
|
100%
|
Share Capital
|
N/A
|
Web.com Holding Company, Inc.
|
Delaware
|
100%
|
Common Stock
|
N/A
|
Website Pros Espana SL
|
Spain
|
100%
|
Common Shares
|
N/A
|
WebSource Holdco, Inc.
|
Delaware
|
0%
|
Common Stock
|
N/A
|
WSM Holdco, Inc.
|
Delaware
|
100%
|
Common Stock
|
N/A
|
!#1 Host Australia, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
!#1 Host Canada, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
!#1 Host China, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
!#1 Host Germany, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
!#1 Host Japan, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
!#1 Host Korea, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
ADomainofYourOwn.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
AllEarthDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
AllWorldDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Udamain.com, LLC`
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Ad Valorem Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
ADomainOfYourOwn.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Alethia Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
All Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
AllEarthDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
AllWorldNames.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Aquarius Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
AtlanticDomains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
AtlanticFriendNames.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
AtomicDomainNames.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Backstop Names LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
BaronOfDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Barracuda Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
BearTrapDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
BelmontDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Best Drop Names LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
BetterThanAverageDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Big Dipper Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
BigLizardDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Blue Angel Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Bonam Fortunam Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Bonzai Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Bounce Pass Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
BullRunDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
BurnsideDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Catch Deleting Names LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Catch Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Chipshot Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
ChocolateChipDomains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Circle of Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
CloudBreakDomains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
CloudNineDomains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
ColumbiaNames.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
CompuGlobalHyperMega.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Cool Breeze Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Cool River Names, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Copper Domain Names LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Coral Reef Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Curveball Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Deep Dive Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Deep Sea Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Deep Water Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Deleting Name Zone LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DeschutesDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DevilDogDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainAMania.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainArmada.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainCapitan.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainComesAround.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainGazelle.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainHawks.net, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainHysteria.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainInTheBasket.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainInTheHole.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainJungle.net, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainParkBlock.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainRaker.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainRoyale.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainSails.net, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainSalsa.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainsAreForever.net, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainsInTheBag.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainsOfCourse.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainsOfTheDay.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainsOfTheWorld. net, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainsOfValue.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainsOverboard.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainSovereigns.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainSprouts.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainStreetDirect.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainSurgeon.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainTimeMachine.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DomainYeti.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
DuckBilledDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
EastEndDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
EUNameFlood.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
EUNamesOregon.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
EuropeanConnectionOnline.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
EurotrashNames.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
EUTurbo.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
FindUAName.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
FindYouADomain.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
FlancrestDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
FreshBrewedDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
FrontStreetDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
GateKeeperDomains.net, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Goldmine Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
GoServeYourDomain.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Goto Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
GoDomainGo.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
GoServeYourDomain.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
GozerDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
GradeADomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Hang Ten Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Hanging Curve Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
HawthorneDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
HeavyDomains.net, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
House Of Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Iconicnames LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
ImminentDomains.net, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
InlandDomains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
InterlakeNames.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
IServeYourDomain.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
JarheadDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Jumpshot Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
KlaatuDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
LakeODomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Layup Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
LeatherneckDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Lemon Shark Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Line Drive Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Lionshare Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Long Drive Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Lucky Elephant Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Magnate Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Magnolia Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Major League Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
MasterOfMyDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Meganames LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
MasterOfMyDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
MicrobrewedDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
MidwestDomains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Millennial Names LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Moon Shot Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
MVPDomainNames.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
MyPreciousDomain.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Name Connection Area LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Name Connection Spot LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Name Find Source LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Name Icon LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
NameArsenal.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Namecatch LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Namecatch Zone LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
NameCroc.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
NameEmperor.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
NameFinger.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Namegrab LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
NamePanther.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Names Express LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
NamesAlaCarte.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
NameVolcano.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
NotSoFamousNames.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
OctopusDomains.net, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
OldTownDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
OldWorldAliases.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
OregonEU.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
OregonURLs.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
PacificDomains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
ParaRescueDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
PDXPrivateNames.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
PearlNamingServices.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
PortlandNames.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
ProtonDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
RainyDayDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
SammamishDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
SantiamDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
SaveTheName.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
SilverbackDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
SiteFrenzy.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
SkykomishDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
SnappyRegistrar.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
SnoqulamieDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
SoldierOfOneDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
SoYouWantADomain.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
SquidSailerDomains.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
ThirdFloorDNS.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
UDomainName.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
WillametteNames.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
ZigZagNames.com, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
TouchLocal Limited
|
England and Wales
|
100%
|
£1,124.0688 divided into: 7,451,154 A shares of 0.01p each, 1,346,273 B Ordinary shares of 0.01p each, 24 Fixed Preference C Shares of 0.01p each, 1,346,273 Capped D shares of 0.01p each and 1,096,964 Restricted E shares of 0.01 p each.
|
N/A
|
AskAlix Limited
|
England and Wales
|
0%
|
£100 divided into 100 ordinary shares of £1 each
|
N/A
|
Touch Jobs Limited
|
England and Wales
|
0%
|
£100 divided into 100 ordinary shares of £1 each
|
N/A
|
Touch (NW) Limited
|
England and Wales
|
0%
|
£1,000 divided into 1,000 ordinary shares of £1 each
|
N/A
|
Central Index Limited
|
England and Wales
|
0%
|
£100,000 divided into 100,000 ordinary shares of £1 each
|
N/A
|
Enable Media Limited
|
England and Wales
|
0%
|
£604,632 divided into 604,632 ordinary shares of £1 each
|
N/A
|
Yodle Canada Inc.
|
Province of Ontario, Canada
|
100%
|
Common Stock
|
N/A
|
Lighthouse Practice Management Group, Inc.
|
Delaware
|
100%
|
Common Stock
|
N/A
|
ProfitFuel, Inc.
|
Delaware
|
100%
|
Common Stock
|
N/A
|
Yodle Web.com, Inc.
|
Delaware
|
100%
|
Common Stock
|
N/A
|
Eagle Eye Domains, LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Abbey Road Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Aconcagua Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Active Market Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Adriatic Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Aegean Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Alboran Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Alpha Beta Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Annapurna Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Aquila Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Australe Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Baker Style Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Balearic Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Big Bend Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Big Short Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Bow Line Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Broad Peak Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Bryce Canyon Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Bull Market Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Camelopardalis Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Canis Major Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Canis Minor Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Canyonlands Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Capex Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Capitol Reef Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Capricorn Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Carbon Fiber Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Carpentaria Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Caspian Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Cassiopeia Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Cathedral Peak Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Centaurus Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Chesapeake Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Circinus Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Coma Berenices Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Crater Lake Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Culebra Peak Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Cuyahoga Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Cygnus Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Deep Dig Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Delphinus Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Denali Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Diamond Blade Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Diamond Tip Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Dominion Peak Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Down Tube Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Elbrus Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
English Channel Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Equuleus Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Europa Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Everglades Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Figure Eight Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Finland Gulf Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Folston Street Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Fortress Peak Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Free Mantle Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Free Range Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Fresh Powder Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Galilee Sea Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Gannett Peak Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Gasherbrum Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Glacier Bay Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Going Long Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Good Trade Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Grand Teton Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Granite Peak Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Great Basin Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Guadalupe Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Hail Mary Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Haleakala Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Holding Pattern Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Hudson Bay Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Hyndman Peak Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Indus River Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Invest Insight Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
James Bay Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Java Sea Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Jet Stream Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Joshua Tree Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Just Flying Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Kangchenjunga Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Kara Strait Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Katmai Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Kilimanjaro Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Kings Canyons Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Kings Peak Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Kosciuszko Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Laccadive Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Lake Clark Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Laptev Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Left Turn Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Legend Peak Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Lhotse Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Light Speed Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Lombard Street Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Longs Peak Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Madeira Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Makalu Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Mammoth Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Maroon Bells Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Microscopium Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Mirtoon Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Monoceros Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Mount Rainier Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Mozambique Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Mt. Everest Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Mt. Shasta Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
North Sea Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Norwegian Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Ophiuchus Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Paris Level Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Piscis Austrinus Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Pyxis Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Right Turn Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Rising Tide Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Saguaro Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Sand Bar Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Sao Francisco Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Sardinia Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Sequoia Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Shenandoah Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Short Sell Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Smoky Mountain Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Smooth Sailing Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Stretch Run Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Strong Allies Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Syr Darya Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Tail Wind Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Third Street Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Tiger Balm Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Tocantins Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Top Tube Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Torreys Peak Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Transatlantic Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Transocean Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Triangulum Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Tyrrhenian Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
University Peak Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Ursa Major Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Ursa Minor Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Vinson Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Visayan Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Vulpecula Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
West Park Avenue Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Wilson Peak Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Wrangell Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Yangtze River Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Yellowstone Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Yenisei River Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Yosemite Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Zig Zag Domains LLC
|
Oregon
|
100%
|
Membership Interest
|
N/A
|
Loan Party
|
Filing Office
|
Net Sol Parent LLC
|
Secretary of State of the State of Delaware
|
Network Solutions, LLC
|
Secretary of State of the State of Delaware
|
SnapNames Web.com LLC
|
Secretary of State of the State of Delaware
|
Web.com Group, Inc.
|
Secretary of State of the State of Delaware
|
Web.com Holding Company, Inc.
|
Secretary of State of the State of Delaware
|
Yodle Web.com, Inc.
|
Secretary of State of the State of Delaware
|
1.
|
Filing of Grant of Security Interest in Copyrights and Copyright Licenses between the Administrative Agent and Web.com Group, Inc. with the United States Copyright Office.
|
2.
|
Filing of Grant of Security Interest in Copyrights and Copyright Licenses between the Administrative Agent and Network Solutions, LLC with the United States Copyright Office.
|
3.
|
Filing of Grant of Security Interest in Patent Rights between the Administrative Agent and Web.com Group, Inc. with the United States Patent and Trademark Office.
|
4.
|
Filing of Grant of Security Interest in Patent Rights between the Administrative Agent and Web.com Holding Company, Inc. with the United States Patent and Trademark Office.
|
5.
|
Filing of Grant of Security Interest in Patent Rights between the Administrative Agent and Network Solutions, LLC with the United States Patent and Trademark Office.
|
6.
|
Filing of Grant of Security Interest in Trademark Rights between the Administrative Agent and Web.com Group, Inc. with the United States Patent and Trademark Office
|
7.
|
Filing of Grant of Security Interest in Patent Rights between the Administrative Agent and Yodle Web.com, Inc. with the United States Patent and Trademark Office.
|
8.
|
Filing of Grant of Security Interest in Trademark Rights between the Administrative Agent and Yodle Web.com, Inc. with the United States Patent and Trademark Office.
|
1.
|
The Capital Lease Obligations and purchase money Indebtedness giving rise to the Liens listed on Part B of Schedule 7.3(f) hereto.
|
2.
|
Under the terms of a bank services pledge agreement between Yodle Web.com, Inc. and Silicon Valley Bank for business credit card services up to $475,000.
|
Letter of Credit Number
|
Issuer
|
Beneficiary
|
Amount
|
SVBSF008999
|
Silicon Valley Bank
|
VORNADO 330 WEST 34TH STREET
|
$4,000,000
|
1.
|
UCC Financing Statement (#20132339449) filed in the Delaware Department of State against Web.com Group, Inc. in favor of NetApp, Inc.
|
2.
|
UCC Financing Statement (#20141280585) filed in the Delaware Department of State against Web.com Group, Inc. in favor of De Lage Landen Financial Services, Inc.
|
3.
|
UCC Financing Statement (#20160598464) filed in the Delaware Department of State against Yodle, Inc. (n/k/a Yodle Web.com, Inc.) in favor of U.S. Bank Equipment Finance.
|
4.
|
UCC Financing Statement (#201411196223708) filed in the Secretary of State of the State of New York against Yodle, Inc. (n/k/a Yodle Web.com, Inc.) in favor of Steelcase Financial Services Inc.
|
5.
|
UCC Financing Statement (#110007902585) filed in the Secretary of State of the State of Texas against ProfitFuel, Inc. in favor of Wells Fargo Bank, N.A.
|
1.
|
I have reviewed this Form 10-Q of Web.com Group, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
By:
|
/s/ David L. Brown
|
|
David L. Brown
Chief Executive Officer and Chairman of the Board
(Principal Executive Officer)
|
1.
|
I have reviewed this Form 10-Q of Web.com Group, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
By:
|
/s/ Kevin M. Carney
|
|
Kevin M. Carney
Chief Financial Officer
(Principal Financial and Accounting Officer)
|
1.
|
The Company's quarterly report on Form 10-Q for the period ended
June 30, 2017
, to which this Certification is attached as Exhibit 32.1 (the "Periodic Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act, and
|
2.
|
The information contained in the Period Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
By:
|
/s/ David L. Brown
|
|
By:
|
/s/ Kevin M. Carney
|
|
David L. Brown
|
|
|
Kevin M. Carney
|
|
Chief Executive Officer and Chairman of the Board
|
|
|
Chief Financial Officer
|
|
(Principal Executive Officer)
|
|
|
(Principal Financial and Accounting Officer)
|