as the Borrower,
as Administrative Agent, Swing Line Lender and
L/C Issuer,
as Syndication Agent
and
MORGAN STANLEY SENIOR FUNDING, INC.,
as Joint Lead Arrangers and Joint Bookrunners
and
KEYBANK NATIONAL ASSOCIATION
as Co-Documentation Agents
80 Pine Street
New York, New York 10005
(212) 701-3000
Section | Page | |||||
ARTICLE I | ||||||
DEFINITIONS AND ACCOUNTING TERMS | ||||||
1.01 | Defined Terms | 2 | ||||
1.02 | Other Interpretive Provisions | 36 | ||||
1.03 | Accounting Terms | 37 | ||||
1.04 | Rounding | 37 | ||||
1.05 | Times of Day | 37 | ||||
1.06 | Letter of Credit Amounts | 37 | ||||
ARTICLE II | ||||||
THE COMMITMENTS AND CREDIT EXTENSIONS | ||||||
2.01 | The Loans | 38 | ||||
2.02 | Borrowings, Conversions and Continuations of Loans | 38 | ||||
2.03 | Letters of Credit | 40 | ||||
2.04 | Swing Line Loans | 49 | ||||
2.05 | Prepayments | 52 | ||||
2.06 | Termination or Reduction of Commitments | 56 | ||||
2.07 | Repayment of Loans | 57 | ||||
2.08 | Interest | 58 | ||||
2.09 | Fees | 59 | ||||
2.10 | Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate | 59 | ||||
2.11 | Evidence of Debt | 60 | ||||
2.12 | Payments Generally; Administrative Agent’s Clawback | 60 | ||||
2.13 | Sharing of Payments by Lenders | 62 | ||||
2.14 | Increase in Revolving Credit Facility | 63 | ||||
2.15 | Release of Pre-Funding Security | 65 | ||||
ARTICLE III | ||||||
TAXES, YIELD PROTECTION AND ILLEGALITY | ||||||
3.01 | Taxes | 66 | ||||
3.02 | Illegality | 69 | ||||
3.03 | Inability To Determine Rates | 69 | ||||
3.04 | Increased Costs; Reserves on Eurodollar Rate Loans | 69 | ||||
3.05 | Compensation for Losses | 71 | ||||
3.06 | Mitigation Obligations; Replacement of Lenders | 72 | ||||
3.07 | Survival | 72 |
-i-
Section | Page | |||||
ARTICLE IV | ||||||
CONDITIONS PRECEDENT TO CREDIT EXTENSIONS | ||||||
4.01A | Conditions of Initial Term Loan Credit Extension | 72 | ||||
4.01B | Conditions of Initial Credit Extension | 75 | ||||
4.02 | Conditions to All Other Credit Extensions | 81 | ||||
ARTICLE V | ||||||
REPRESENTATIONS AND WARRANTIES | ||||||
5.01 | Existence, Qualification and Power | 82 | ||||
5.02 | Authorization; No Contravention | 82 | ||||
5.03 | Governmental Authorization; Other Consents | 83 | ||||
5.04 | Binding Effect | 83 | ||||
5.05 | Financial Statements; No Material Adverse Effect | 84 | ||||
5.06 | Litigation | 84 | ||||
5.07 | No Default | 84 | ||||
5.08 | Ownership of Property; Liens; Investments | 85 | ||||
5.09 | Environmental Matters | 86 | ||||
5.10 | Insurance | 86 | ||||
5.11 | Taxes | 86 | ||||
5.12 | ERISA Compliance | 87 | ||||
5.13 | Subsidiaries; Equity Interests; Loan Parties | 88 | ||||
5.14 | Margin Regulations; Investment Company Act | 88 | ||||
5.15 | Disclosure | 88 | ||||
5.16 | Compliance with Laws | 89 | ||||
5.17 | Intellectual Property; Licenses, Etc. | 89 | ||||
5.18 | Solvency | 89 | ||||
5.19 | Labor Matters | 89 | ||||
5.20 | Collateral Documents | 90 | ||||
5.21 | Use of Proceeds | 90 | ||||
5.22 | Designation as Senior Debt | 91 | ||||
5.23 | Immaterial Subsidiaries | 91 | ||||
ARTICLE VI | ||||||
AFFIRMATIVE COVENANTS | ||||||
6.01 | Financial Statements | 91 | ||||
6.02 | Certificates; Other Information | 92 | ||||
6.03 | Notices | 94 | ||||
6.04 | Payment of Obligations | 94 | ||||
6.05 | Preservation of Existence, Etc. | 94 | ||||
6.06 | Maintenance of Properties, Etc. | 94 | ||||
6.07 | Maintenance of Insurance | 96 | ||||
6.08 | Compliance with Laws | 97 | ||||
6.09 | Books and Records | 97 |
-ii-
Section | Page | |||||
6.10 | Inspection Rights | 97 | ||||
6.11 | Use of Proceeds | 98 | ||||
6.12 | Covenant To Guarantee Obligations and Give Security | 98 | ||||
6.13 | Further Assurances | 99 | ||||
6.14 | Employee Benefits | 100 | ||||
6.15 | Compliance with Environmental Laws | 100 | ||||
6.16 | Information Regarding Collateral and Loan Documents | 101 | ||||
ARTICLE VII | ||||||
NEGATIVE COVENANTS | ||||||
7.01 | Liens | 101 | ||||
7.02 | Indebtedness | 104 | ||||
7.03 | Investments | 107 | ||||
7.04 | Fundamental Changes | 110 | ||||
7.05 | Dispositions | 111 | ||||
7.06 | Restricted Payments | 113 | ||||
7.07 | Change in Nature of Business | 114 | ||||
7.08 | Transactions with Affiliates | 114 | ||||
7.09 | Burdensome Agreements | 114 | ||||
7.10 | Financial Covenants | 115 | ||||
7.11 | Capital Expenditures | 116 | ||||
7.12 | Prepayments of Other Indebtedness; Modifications of Organization Documents and Other Documents, Etc. | 116 | ||||
7.13 | Accounting Changes | 117 | ||||
ARTICLE VIII | ||||||
EVENTS OF DEFAULT AND REMEDIES | ||||||
8.01 | Events of Default | 117 | ||||
8.02 | Remedies upon Event of Default | 119 | ||||
8.03 | Application of Funds | 120 | ||||
ARTICLE IX | ||||||
ADMINISTRATIVE AGENT | ||||||
9.01 | Appointment and Authority | 121 | ||||
9.02 | Rights as a Lender | 121 | ||||
9.03 | Exculpatory Provisions | 122 | ||||
9.04 | Reliance by Administrative Agent | 123 | ||||
9.05 | Delegation of Duties | 123 | ||||
9.06 | Resignation of Administrative Agent | 123 | ||||
9.07 | Non-Reliance on Administrative Agent and Other Lenders | 124 | ||||
9.08 | No Other Duties, Etc. | 124 | ||||
9.09 | Administrative Agent May File Proofs of Claim | 124 | ||||
9.10 | Collateral and Guaranty Matters | 125 |
-iii-
Section | Page | |||||
9.11 | Withholding Tax | 126 | ||||
ARTICLE X | ||||||
MISCELLANEOUS | ||||||
10.01 | Amendments, Etc. | 126 | ||||
10.02 | Notices; Effectiveness; Electronic Communications | 128 | ||||
10.03 | No Waiver; Cumulative Remedies; Enforcement | 130 | ||||
10.04 | Expenses; Indemnity; Damage Waiver | 131 | ||||
10.05 | Payments Set Aside | 133 | ||||
10.06 | Successors and Assigns | 133 | ||||
10.07 | Treatment of Certain Information; Confidentiality | 138 | ||||
10.08 | Right of Setoff | 139 | ||||
10.09 | Interest Rate Limitation | 139 | ||||
10.10 | Counterparts; Integration; Effectiveness | 140 | ||||
10.11 | Survival of Representations and Warranties | 140 | ||||
10.12 | Severability | 140 | ||||
10.13 | Replacement of Lenders | 140 | ||||
10.14 | Governing Law; Jurisdiction; Etc. | 141 | ||||
10.15 | Waiver of Jury Trial | 142 | ||||
10.16 | No Advisory or Fiduciary Responsibility | 142 | ||||
10.17 | USA PATRIOT Act Notice | 143 | ||||
10.18 | Time of the Essence | 143 | ||||
10.19 | ENTIRE AGREEMENT | 143 | ||||
SIGNATURES | S-1 |
1.01 | Existing Cash Management Banks | |
2.01 | Commitments and Applicable Percentages | |
4.01(II)(a)(ix)(C) | Mortgage Policy Amounts | |
4.01(II)(a)(x)(F) | Leased Property | |
5.06 | Disclosed Matters | |
5.08(b) | Existing Liens | |
5.11 | Taxes | |
5.13 | Subsidiaries | |
5.17 | Intellectual Property; Licenses | |
7.02 | Existing Indebtedness | |
7.03(e) | Existing Investments | |
10.02 | Administrative Agent’s Office; Certain Addresses for Notices |
-iv-
Form of | ||
A | Loan Notice | |
B | Swing Line Loan Notice | |
C-1 | Term Note | |
C-2 | Revolving Credit Note | |
D | Compliance Certificate | |
E | Assignment and Assumption | |
F | Guaranty | |
G | Security Agreement | |
H | Pre-Funding Security Agreement | |
I | [Reserved] | |
J | Perfection Certificate | |
K | Perfection Certificate Supplement | |
L-1 | Closing Date Opinion Matters — Counsel to Loan Parties | |
L-2 | Acquisition Closing Date Opinion Matters — Counsel to Loan Parties | |
M | Intercompany Note | |
N | [Reserved] | |
O-1 | Tax Status Certificate 1 | |
O-2 | Tax Status Certificate 2 | |
O-3 | Tax Status Certificate 3 | |
O-4 | Tax Status Certificate 4 |
-v-
DEFINITIONS AND ACCOUNTING TERMS
-2-
Applicable Fee Rate | ||||
Consolidated Senior | ||||
Pricing | Secured | |||
Level | Leverage Ratio | Applicable Fee Rate | ||
1 | >1.50:1:00 | 0.500% | ||
2 | ≤1.50:1.00 but >1.00:1.00 | 0.375% | ||
3 | ≤1.00:1.00 | 0.250% |
-3-
Applicable Rate for Revolving Credit Loans | ||||||
Eurodollar | ||||||
Pricing | Consolidated Senior Secured | Rate | Base Rate | |||
Level | Leverage Ratio | Loans | Loans | |||
1 | >1:50 to 1:00 | 400 bps | 300 bps | |||
2 | ≤1:50 to 1:00 but >1:00 to 1:00 | 375 bps | 275 bps | |||
3 | ≤1:00 to 1:00 | 350 bps | 250 bps | |||
-4-
-5-
-6-
-7-
-8-
-9-
-10-
-11-
-12-
-13-
-14-
-15-
-16-
-17-
-18-
-19-
-20-
-21-
-22-
-23-
-24-
-25-
-26-
-27-
-28-
-29-
-30-
-31-
-32-
-33-
-34-
-35-
-36-
-37-
THE COMMITMENTS AND CREDIT EXTENSIONS
-38-
-39-
-40-
-41-
-42-
-43-
-44-
-45-
-46-
-47-
-48-
-49-
-50-
-51-
-52-
-53-
-54-
-55-
-56-
Date | Amount | |||
January 26, 2009 | $ | 13,750,000 | ||
April 26, 2009 | $ | 13,750,000 | ||
July 28, 2009 | $ | 13,750,000 | ||
October 27, 2009 | $ | 13,750,000 | ||
January 26, 2010 | $ | 13,750,000 | ||
April 26, 2010 | $ | 13,750,000 | ||
July 28, 2010 | $ | 13,750,000 | ||
October 27, 2010 | $ | 13,750,000 | ||
January 26, 2011 | $ | 27,500,000 | ||
April 26, 2011 | $ | 27,500,000 | ||
July 28, 2011 | $ | 27,500,000 | ||
October 27, 2011 | $ | 27,500,000 |
-57-
Date | Amount | |||
January 26, 2012 | $ | 55,000,000 | ||
April 26, 2012 | $ | 55,000,000 | ||
July 28, 2012 | $ | 55,000,000 | ||
October 27, 2012 | $ | 55,000,000 | ||
January 26, 2013 | $ | 165,000,000 | ||
April 26, 2013 | $ | 165,000,000 | ||
July 28, 2013 | $ | 165,000,000 | ||
Maturity Date for Term Loan Facility | Any Outstanding Amount of Term Loans |
-58-
-59-
-60-
-61-
-62-
-63-
-64-
-65-
TAXES, YIELD PROTECTION AND ILLEGALITY
-66-
-67-
-68-
-69-
-70-
-71-
CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
-72-
-73-
-74-
-75-
-76-
-77-
-78-
-79-
-80-
-81-
REPRESENTATIONS AND WARRANTIES
-82-
-83-
-84-
-85-
-86-
-87-
-88-
-89-
-90-
AFFIRMATIVE COVENANTS
-91-
-92-
-93-
-94-
-95-
-96-
-97-
-98-
-99-
-100-
NEGATIVE COVENANTS
-101-
-102-
-103-
-104-
-105-
-106-
-107-
-108-
-109-
-110-
-111-
-112-
-113-
-114-
Four Fiscal Quarters Ending | Minimum Consolidated Fixed | |||
During any Period Below: | Charge Coverage Ratio | |||
Closing Date through October 27, 2009 | 1.25:1.00 | |||
October 28, 2009 through October 27, 2010 | 1.50:1.00 | |||
October 28, 2010 through October 27, 2011 | 1.75:1.00 | |||
October 28, 2011 and thereafter | 2.00:1.00 |
Four Fiscal Quarters Ending | Maximum | |||
During any Period Below | Consolidated Leverage Ratio | |||
Closing Date through October 27, 2009 | 4.25:1.00 | |||
October 28, 2009 through October 27, 2010 | 3.75:1.00 | |||
October 28, 2010 through October 27, 2011 | 3.00:1.00 | |||
October 28, 2011 through October 27, 2012 | 2.75:1.00 | |||
October 28, 2012 and thereafter | 2.50:1.00 |
-115-
Four Fiscal Quarters Ending | Maximum | |
During any Period Below | Senior Secured Leverage Ratio | |
Closing Date through October 27, 2009 | 2.30:1.00 | |
October 28, 2009 through October 27, 2010 | 2.00:1.00 | |
October 28, 2010 through October 27, 2012 | 1.75:1.00 | |
October 28, 2012 and thereafter | 1.50:1.00 |
Column A | Column B | |||||||
Fiscal Year | Amount | Amount | ||||||
2009 | $ | 100,000,000 | $ | 100,000,000 | ||||
2010 | $ | 100,000,000 | $ | 125,000,000 | ||||
2011 | $ | 0 | $ | 125,000,000 | ||||
2012 | $ | 0 | $ | 150,000,000 | ||||
2013 | $ | 0 | $ | 150,000,000 |
-116-
EVENTS OF DEFAULT AND REMEDIES
-117-
-118-
-119-
-120-
ADMINISTRATIVE AGENT
-121-
-122-
-123-
-124-
-125-
MISCELLANEOUS
-126-
-127-
-128-
-129-
-130-
-131-
-132-
-133-
-134-
-135-
-136-
-137-
-138-
-139-
-140-
-141-
-142-
-143-
BROCADE COMMUNICATIONS SYSTEMS, INC., as Borrower | ||||
By: | /s/ Richard Deranleau | |||
Name: | Richard Deranleau | |||
Title: | Chief Financial Officer and Vice President, Finance |
S-1
BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | /s/ Robert Rittelmeyer | |||
Name: | Robert Rittelmeyer | |||
Title: | Vice President |
S-2
BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line Lender | ||||
By: | /s/ Kevin McMahon | |||
Name: | Kevin McMahon | |||
Title: | Senior Vice President |
S-3
MORGAN STANLEY SENIOR FUNDING, INC., as Lender | ||||
By: | /s/ Andrew Earls | |||
Name: | Andrew Earls | |||
Title: | Vice President |
S-4
HSBC BANK USA, NATIONAL ASSOCIATION, as Co-Documentation Agent and as Lender | ||||
By: | /s/ David C. Hants | |||
Name: | David C. Hants | |||
Title: | Senior Vice-President |
S-5
KEYBANK NATIONAL ASSOCIATION, as a Lender and Co-Documentation Agent | ||||
By: | /s/ Raed Y. Alfayoumi | |||
Name: | Raed Y. Alfayoumi | |||
Title: | Vice President |
S-6
COMERICA BANK,as Lender | ||||
By: | /s/ Guy Simpson | |||
Name: | Guy Simpson | |||
Title: | Vice President |
S-7
THE BANK OF NOVA SCOTIA, as Lender | ||||
By: | /s/ Michael Kus | |||
Name: | Michael Kus | |||
Title: | Director |
S-8
SUMITOMO MITSUI BANKING CORPORATION, as Lender | ||||
By: | /s/ Leo E. Pagamgan | |||
Name: | Leo E. Pagamgan | |||
Title: | General Manager |
S-9
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Lender | ||||
By: | /s/ Phil Schpairo | |||
Name: | Phil Schpairo | |||
Title: | Credit Relationship Manager |
S-10
UNION BANK OF CALIFORNIA, N.A.,as Lender | ||||
By: | /s/ Allan B. Miner | |||
Name: | Allan B. Miner | |||
Title: | Vice President | |||
S-11
Credit Suisse
Bank Zachodni WBK S.A.
Forstaedernes Bank A/S
Banca di Roma
ING Bank
Fortis Banque Luxembourg
Handelsbank
BANCO ITAU, S.A.
Santander Bank
Bank of Tokyo (MUFJ)
Koram Bank (Citibank)
Bank of China-Beijing Branch
Guangzhou Commercial Bank
Bank of China-Guangzhou Branch
Bank of China-Shanghai Branch
China Agriculture Bank
Mashreq Bank UAE
Bank Leumi
Bear Stearns
Comerica Bank
JP Morgan Chase
Morgan Stanley
US Bank
Smith Barney
Wells Fargo Bank
ANZ Bank
Bank of China, Dongsanhuan Zhonglu Office,
Standard Chartered Bank
Unicredit Banca D’ImpresaSpA
Korea Exchange Bank
Hong Kong and Shanghai Banking Corporation Ltd
Commerzbank AG
Intesa Sanpaolo Spa
KBC Bank
Royal Bank of Scotland
BNP Paribas
Banco Bradesco S.A.
Barclays Bank
Revolving Credit | ||||||||
Lender | Loans | Term Loan | ||||||
Bank of America, N.A. | $ | 23,000,000 | $ | 550,000,000 | ||||
Morgan Stanley & Company Inc. | $ | 23,000,000 | $ | 550,000,000 | ||||
Comerica Bank | $ | 30,000,000 | $ | 0 | ||||
Bank of Nova Scotia | $ | 8,000,000 | $ | 0 | ||||
HSBC Bank USA, National Association | $ | 8,000,000 | $ | 0 | ||||
KeyBank National Association | $ | 25,000,000 | $ | 0 | ||||
Wells Fargo Bank | $ | 8,000,000 | $ | 0 | ||||
Sumitomo Mitsui Banking Corporation | $ | 0 | $ | 0 | ||||
Union Bank of California | $ | 0 | $ | 0 | ||||
Totals | $ | 125,000,000 | $ | 1,100,000,000 |
Company | Property Location | |
Brocade Communications Systems Skyport LLC | 1600 Technology Drive, San Jose, CA 95110 | |
McData Corporation | 4 Brocade Parkway, Broomfield, CO | |
McData Corporation | Land, Broomfield, CO | |
Brocade Communications Systems, Inc. | Land, San Jose, CA |
1. | See Part II, Item 1 of the Brocade Communications Systems Inc. Quarterly Report on Form 10-Q for the quarterly period ended July 26, 2008 filed with the Securities Exchange Commission on August 22, 2008. | |
2. | In Re Brocade Communications Systems, Inc. Initial Public Offering Securities Litigation, No. 01 Civ. 6613 was filed on April 19, 2002. Also part of these coordinated proceedings are actions against McDATA Corporation, certain of its officers and directors and the underwriters for McDATA’s initial public offering of securities, No. 01 Civ. 6627, and Inrange Technologies Corporation (which was first acquired by CNT and subsequently acquired by McDATA as part of the CNT acquisition), certain of its officers and directors and the underwriters for Inrange’s initial public offering of securities, No. 01 Civ. 10800. | |
3. | Beginning on or about May 19, 2005, several securities class action complaints were filed against Brocade and certain of its then current and former officers. These actions were filed in the United States District Court for the Northern District of California on behalf of purchasers of Borrower’s stock from February 21, 2001 to May 15, 2005. On May 30, 2008, Borrower reached an agreement in principle with the lead plaintiffs to settle the federal securities class action that would result in a payment by Borrower of $160.0 million to the plaintiff class in exchange for the dismissal with prejudice of all claims against all defendants in the litigation. The settlement is subject to final documentation and approval by the Federal District Court. Based on the preliminary settlement, Borrower recorded an estimated settlement expense of $160.0 million in connection with the federal securities class action in the three months ended April 26, 2008. | |
4. | Beginning on or about May 24, 2005, several derivative actions were also filed against certain of Borrower’s current and former officers and directors. These actions were filed in the United States District Court for the Northern District of California and in the California Superior Court in Santa Clara County. The complaints allege, among other things, that those current and former officers and directors breached their fiduciary duties to Borrower by engaging in alleged wrongful conduct, including conduct complained of in the securities litigation described above. Borrower is named solely as a nominal defendant against whom the plaintiffs seek no monetary recovery (other than the award of attorneys’ fees). The derivative actions pending in the District Court for the Northern District of California were consolidated, and the Court created a Lead Counsel structure. | |
5. | On April 15, 2008, another related, but not consolidated, derivative action was filed in the United States District Court for the Northern District of California. The complaint alleges, among other things, that certain of Borrower’s officers and directors breached their fiduciary duties to Borrower and violated federal law by engaging in allegedly wrongful conduct |
including conduct complained of in the securities litigation and the other derivative litigation described above. Borrower is named solely as a nominal defendant against whom the plaintiff seeks no monetary recovery (other than the award of attorneys’ fees). |
6. | On August 1, 2008, Borrower, acting through the SLC, filed a Second Amended Complaint in the consolidated federal derivative action against ten former officers or directors of the Borrower, asserting claims for breach of fiduciary duty and violations of federal and state laws in connection with the matters at issue in the derivative actions and the securities litigation. | |
7. | On October 23, 2007, a class action complaint was filed against Borrower and certain of its former officers and current and former directors. This action was filed in the California Superior Court in Santa Clara County on behalf of individuals who owned Borrower stock between October 13, 1999 and May 16, 2005. The complaint generally alleges that Borrower and the individual defendants breached the duty of disclosure by failing to disclose alleged wrongful conduct including conduct complained of in the securities litigation described above and seeks unspecified monetary damages and other relief against the defendants. |
1. | See Part II, Item 1 of the Foundry Networks, Inc. Quarterly Report on Form 10-Q filed with the Securities Exchange Commission on August 5, 2008. | |
2. | In re Foundry Networks, Inc. Initial Public Offering Securities Litigation, No. 01-CV-10640 (SAS) (S.D.N.Y.), related to In re Initial Public Offering Securities Litigation, No. 21 MC 92 (SAS) (S.D.N.Y.). | |
3. | In re Foundry Networks, Inc. Derivative Litigation, Superior Court of the State of California, Santa Clara County, Lead Case. No. 1 06 CV 071651 (the “Santa Clara Derivative Litigation”). | |
4. | In re Foundry Networks, Inc. Derivative Litigation, U.S.D.C. No. Dist. Cal. (San Jose Division), Case No. 5:06-CV-05598-RMW (the “San Jose Derivative Litigation”). | |
5. | Kaushik B. Patel, derivatively on behalf of Foundry Networks, Inc., v. Lawrence L. Akin, Alfred J. Amoroso, Lee Chen, Ken K. Cheng, Alan L. Earhart, Timothy D. Heffner, Bobby R. Johnson, Jr., C. Nicholas Keating, Jr., William S. Kallaos, Robert W. Shackleton, Karl D. Triebes, Paul L. Twombly, J. Steven Young, Richard W. Bridges, Chandra Kopparapu, Benjamin O. Taft, Ivy Pei Shan Hsu, John P. Burger and Andrew K. Ludwick and Foundry Networks, Inc., a Delaware corporation (Court of Chancery of the State of Delaware in and for New Castle County, Case No. 3036-VCL) (the “Delaware Derivative Litigation” and, |
together with the Santa Clara Derivative Litigation and the San Jose Derivative Litigation, the “Derivative Litigation”). |
6. | Vanessa Simmonds v. Deutsche Bank AG, Merrill Lynch & Co and JPMorgan Chase & Co. Defendants, and Foundry Networks, Inc., Nominal Defendant (Case No. 2:07-CV-01566-JCC). | |
7. | Fenner Investments, Ltd. v. 3Com Corporation, Foundry Networks, Inc., Extreme Networks, Inc., Netgear Inc., Zyxel Communications, Inc., D-Link Systems, Inc., SMC Networks, Inc., Tellabs, Inc., Tellabs North America, Inc., and Enterasys Networks, Inc. (USDC, Eastern District of Texas Tyler Division, Case No. 08-CV-00061) (the “Fenner Matter”). | |
8. | Chrimar Systems, Inc. d/b/a CMS Technologies, Inc., a Michigan Corporation v. Foundry Networks, Inc. a California Corporation (USDC, Eastern District of Michigan, Case No. 2:06-cv-13936) (the “Chrimar Matter”). | |
9. | Networks-1 Security Solutions, Inc., a Delaware corporation v. Cisco Systems, Inc., a California corporation; Cisco-Linksys, L.L.C., a California Limited Liability Company; Adtran, Inc., a Delaware corporation; Enterasys Networks, Inc., a Delaware corporation; Extreme Networks, Inc., a Delaware corporation; Foundry Networks, Inc., a Delaware corporation; Netgear, Inc., a Delaware corporation; 3Com Corporation, a Delaware corporation (USDC, Eastern District of Texas, Tyler Division, Case No. 6:08cv030). | |
10. | Enterasys Networks, Inc., v. Foundry Networks, Inc.; and Extreme Networks, Inc. (USDC, District of Massachusetts Eastern District, Case No. 05 11298 DPW). | |
11. | On July 23, 2008, an action, Doug Edrington v. Bobby R. Johnson, Jr., et al., was filed in the Superior Court of the State of California for the County of Santa Clara. In this action, the plaintiff named as defendants the members of the board of directors of Foundry. The complaint asserts claims on behalf of Foundry’s stockholders who are similarly situated with the plaintiff. Among other things, the complaint alleges that the members of Foundry’s board of directors have breached their fiduciary duties to Foundry’s stockholders in connection with the merger and engaged in self-dealing in connection with the Foundry board of directors’ approval of the merger, allegedly resulting in an unfair process and unfair price to Foundry’s stockholders. The complaint seeks class certification and certain forms of equitable relief, including enjoining the completion of the merger. Foundry believes that the allegations of the complaint are without merit and intends to vigorously contest the action. However, there can be no assurances that the defendants will be successful in such defense |
Juris. | Secured Party | File No. | Date of Filing | Type of Filing/Comments | ||||
CA | McGrath RentCorp & | |||||||
Technology Rentals and Services | 0417160975 | 6/14/04 | Equipment lease | |||||
CA | US Bancorp | 06-7091811497 | 11/13/06 | Equipment lease | ||||
DE | IBM Credit LLC | 32832858 | 10/24/03 | Equipment | ||||
DE | IBM Credit LLC | 32909417 | 10/31/03 | Equipment | ||||
DE | IBM Credit LLC | 32989864 | 11/05/03 | Equipment | ||||
DE | IBM Credit LLC | 33179069 | 11/25/03 | Equipment | ||||
DE | De Lage Landen Financial, Inc. | 41399007 | 5/20/04 | Equipment | ||||
DE | IBM Credit LLC | 41419060 | 5/21/04 | Equipment | ||||
DE | McGrath RentCorp & | |||||||
Technology Rentals and Services | 41769134 | 6/15/04 | Equipment lease | |||||
DE | Banc of America Leasing & | |||||||
Capital, LLC | 52067107 | 7/06/05 | Equipment | |||||
DE | Banc of America Leasing & | |||||||
Capital, LLC | 52067180 | 7/06/05 | Equipment | |||||
DE | IBM Credit LLC | 52931039 | 9/22/05 | Equipment | ||||
DE | IBM Credit LLC | 60009753 | 1/03/06 | Equipment | ||||
DE | IBM Credit LLC | 63813730 | 11/1/06 | Equipment | ||||
DE | Banc of America Leasing & | |||||||
Capital, LLC | 20071171007 | 3/29/07 | Equipment | |||||
DE | Banc of America Leasing & | |||||||
Capital, LLC | 20071171031 | 3/29/07 | Equipment | |||||
DE | Banc of America Leasing & | |||||||
Capital, LLC | 20071171049 | 3/29/07 | Equipment | |||||
DE | IBM Credit LLC | 20072496189 | 7/2/07 | Equipment | ||||
DE | US Bancorp | 20073662532 | 9/27/07 | Equipment | ||||
DE | US Bancorp | 20074826532 | 12/20/07 | Equipment | ||||
DE | IBM Credit LLC | 20080676054 | 2/25/08 | Equipment | ||||
DE | IBM Credit LLC | 20081878352 | 6/2/08 | Equipment |
Juris. | Secured Party | File No. | Date of Filing | Type of Filing/Comments | ||||
DE | IBM Credit LLC | 32714023 | 10/06/03 | Equipment lease | ||||
DE | IBM Credit LLC | 32718511 | 10/06/03 | Equipment lease | ||||
DE | Computer Sales International, Inc. | 32726001 | 10/07/03 | Equipment lease | ||||
DE | IBM Credit LLC | 32820887 | 10/23/03 | Equipment lease | ||||
DE | IBM Credit LLC | 33020081 | 11/10/03 | Equipment lease | ||||
DE | IBM Credit LLC | 33048868 | 11/13/03 | Equipment lease | ||||
DE | IBM Credit LLC | 33140137 | 11/21/03 | Equipment lease | ||||
DE | IBM Credit LLC | 33203216 | 12/01/03 | Equipment lease | ||||
DE | Computer Sales International, Inc. | 33219634 | 12/02/03 | Equipment lease | ||||
DE | IBM Credit LLC | 33346528 | 12/11/03 | Equipment lease | ||||
DE | De Lage Landen Financial Services | 40015745 | 1/05/04 | Equipment | ||||
DE | EMC Corporation & | |||||||
De Lage Landen Financial Services | 40015745 | 1/05/04 | Equipment | |||||
DE | De Lage Landen Financial Services | 40015984 | 1/05/04 | Equipment | ||||
DE | De Lage Landen Financial Services | 40016057 | 1/05/04 | Equipment | ||||
DE | IBM Credit LLC | 40027377 | 12/19/03 | Equipment lease | ||||
DE | Computer Sales International, Inc. | 40086498 | 12/23/03 | Equipment lease | ||||
DE | IBM Credit LLC | 40167256 | 12/30/03 | Equipment lease | ||||
DE | IBM Credit LLC | 40194920 | 1/02/04 | Equipment lease | ||||
DE | IBM Credit LLC | 40355562 | 1/02/04 | Equipment lease | ||||
DE | IBM Credit LLC | 40356644 | 1/02/04 | Equipment lease | ||||
DE | IBM Credit LLC | 40390304 | 1/22/04 | Equipment lease | ||||
DE | IBM Credit LLC | 40443061 | 1/28/04 | Equipment lease | ||||
DE | IBM Credit LLC | 40449548 | 1/29/04 | Equipment lease | ||||
DE | IBM Credit LLC | 40450678 | 1/30/04 | Equipment lease | ||||
DE | IBM Credit LLC | 40464398 | 2/03/04 | Equipment lease | ||||
DE | TCF Leasing, Inc. | 40610990 | 2/27/04 | Equipment lease | ||||
DE | IBM Credit LLC | 40661951 | 3/04/04 | Equipment lease | ||||
DE | IBM Credit LLC | 40782435 | 3/12/04 | Equipment lease | ||||
DE | IBM Credit LLC | 40943763 | 3/26/04 | Equipment lease | ||||
DE | Information Leasing Corporation | 41031923 | 3/31/04 | Equipment lease |
Juris. | Secured Party | File No. | Date of Filing | Type of Filing/Comments | ||||
DE | IBM Credit LLC | 41038910 | 3/31/04 | Equipment lease | ||||
DE | IBM Credit LLC | 41155342 | 4/26/04 | Equipment | ||||
DE | Computer Sales International, Inc. | 41177643 | 4/12/04 | Equipment lease | ||||
DE | IBM Credit LLC | 41518994 | 6/02/04 | Equipment | ||||
DE | Computer Sales International, Inc. | 41626607 | 5/25/04 | Equipment lease | ||||
DE | Computer Sales International, Inc. | 41697673 | 6/04/04 | Equipment lease | ||||
DE | Fleet Business Credit, LLC | 41949207 | 7/12/04 | Equipment | ||||
DE | Fleet Business Credit, LLC | 41954116 | 7/13/04 | Equipment | ||||
DE | IBM Credit LLC | 42440677 | 8/30/04 | Equipment | ||||
DE | Computer Sales International, Inc. | 42469932 | 9/1/04 | Equipment | ||||
DE | IBM Credit LLC | 42678961 | 9/23/04 | Equipment | ||||
DE | IBM Credit LLC | 42700096 | 9/27/04 | Equipment | ||||
DE | IBM Credit LLC | 42740506 | 9/30/04 | Equipment | ||||
DE | IBM Credit LLC | 43109578 | 11/04/04 | Equipment | ||||
DE | IBM Credit LLC | 43413178 | 12/06/04 | Equipment | ||||
DE | IBM Credit LLC | 43476217 | 12/09/04 | Equipment | ||||
DE | IBM Credit LLC | 50046715 | 1/05/05 | Equipment | ||||
DE | CSI Leasing, Inc. | 50880667 | 3/21/05 | Equipment lease | ||||
DE | IBM Credit LLC | 50885773 | 3/21/05 | Equipment | ||||
DE | Computer Sales International, Inc. | 51070722 | 3/30/05 | Equipment | ||||
DE | IBM Credit LLC | 51096750 | 4/11/05 | Equipment | ||||
DE | Dell Financial Services, L.P. | 51429316 | 5/10/05 | Equipment lease | ||||
DE | De Lage Landen Financial Services | 51450049 | 5/11/05 | Equipment | ||||
DE | General Electric Capital Corporation | 51953158 | 6/24/05 | Equipment lease | ||||
DE | IBM Credit LLC | 52066448 | 7/06/05 | Equipment | ||||
DE | CSI Leasing, Inc. | 52531730 | 8/15/05 | Equipment lease | ||||
DE | Key Government Finance, Inc. | 52717248 | 9/01/05 | Accounts and Equipment | ||||
DE | IBM Credit LLC | 53052173 | 10/03/05 | Equipment | ||||
DE | De Lage Landen Financial Services | 61307354 | 4/19/06 | Equipment | ||||
DE | De Lage Landen Financial Services | 61313568 | 4/19/06 | Equipment | ||||
DE | CCA Financial, LLC | 62140697 | 6/22/06 | Equipment lease | ||||
DE | IBM Credit LLC | 62246445 | 6/29/06 | Equipment | ||||
DE | IBM Credit LLC | 70415371 | 2/01/07 | Equipment |
Juris. | Secured Party | File No. | Date of Filing | Type of Filing/Comments | ||||
CA | US Bancorp | 08-7153673595 | 4/11/08 | Equipment | ||||
CA | US Bancorp | 08-7169831548 | 8/26/08 | Equipment | ||||
DE | US Bancorp | 42581181 | 9/14/04 | Equipment | ||||
DE | De Lage Landen Financial Services | 42929653 | 10/12/04 | Equipment Lease | ||||
DE | US Bancorp | 52401140 | 8/03/05 | Equipment Lease | ||||
DE | De Lage Landen Financial Services | 60639831 | 2/23/06 | Equipment Lease | ||||
DE | US Bancorp | 60989137 | 3/23/06 | Equipment Lease | ||||
DE | US Bancorp | 61602036 | 5/11/06 | Equipment Lease | ||||
DE | US Bancorp | 62366953 | 7/10/06 | Equipment Lease | ||||
DE | US Bancorp | 63233558 | 9/19/06 | Equipment Lease | ||||
DE | US Bancorp | 70027655 | 1/03/07 | Equipment Lease | ||||
DE | US Bancorp | 70036441 | 1/04/07 | Equipment | ||||
DE | US Bancorp | 70067040 | 1/08/07 | Equipment | ||||
DE | US Bancorp | 70087469 | 1/09/07 | Equipment | ||||
DE | US Bancorp | 70692557 | 2/23/07 | Equipment | ||||
DE | US Bancorp | 71324630 | 4/10/07 | Equipment | ||||
DE | De Lage Landen Financial Services | 82699062 | 7/31/08 | Equipment |
1. | Foundry is under audit by the California Franchise Tax Board for the years ended December 31, 2002 and 2003. |
Brocade Communications Systems Skyport LLC
CNT Telecom Services, Inc.
Data Switch Subsidiary Stock Corporation
Inrange Development Corporation
Inrange Financial Corporation
Inrange Global Consulting, Inc.
Inrange Technologies Corporation
McDATA Corporation
McDATA Managed Services Corporation
McDATA Services Corporation
Nishan Systems, Inc.
Nuview, Inc.
Sanavigator, Inc.
Sanera Systems, Inc.
Silverback Systems, Inc.
Strategic Business Systems, Inc.
Foundry Networks, Inc.*
Foundry Networks Holding Co.*
Foundry Networks Japan-USA, LLC*
• | Subsidiaries as of the Acquisition Closing Date. |
1. | See Part II, Item 1 of the Foundry Networks, Inc. Quarterly Report on Form 10-Q filed with the Securities Exchange Commission on August 5, 2008. |
2. | Fenner Investments, Ltd. v. 3Com Corporation, Foundry Networks, Inc., Extreme Networks, Inc., Netgear Inc., Zyxel Communications, Inc., D-Link Systems, Inc., SMC Networks, Inc., Tellabs, Inc., Tellabs North America, Inc., and Enterasys Networks, Inc. (USDC, Eastern District of Texas Tyler Division, Case No. 08-CV-00061) (the “Fenner Matter”). |
3. | Chrimar Systems, Inc. d/b/a CMS Technologies, Inc., a Michigan Corporation v. Foundry Networks, Inc. a California Corporation (USDC, Eastern District of Michigan, Case No. 2:06-cv-13936) (the “Chrimar Matter”). |
4. | Networks-1 Security Solutions, Inc., a Delaware corporation v. Cisco Systems, Inc., a California corporation; Cisco-Linksys, L.L.C., a California Limited Liability Company; Adtran, Inc., a Delaware corporation; Enterasys Networks, Inc., a Delaware corporation; Extreme Networks, Inc., a Delaware corporation; Foundry Networks, Inc., a Delaware corporation; Netgear, Inc., a Delaware corporation; 3Com Corporation, a Delaware corporation (USDC, Eastern District of Texas, Tyler Division, Case No. 6:08cv030). |
5. | Enterasys Networks, Inc., v. Foundry Networks, Inc.; and Extreme Networks, Inc. (USDC, District of Massachusetts Eastern District, Case No. 05 11298 DPW). |
6. | Foundry’s license with Nortel Networks expires on October 25, 2008 pursuant to the terms of that certain License Agreement by and between Foundry and Nortel Networks Limited, dated October 25, 2004. |
Letter of Credit for $1,335,271
Letter of Credit for $6,193,904
Guarantee for INR 4,500,000 or $100,000
Guarantee in Switzerland for $70,580
1. | Guarantee Letter for Account No. 26.54.38.823 dated June 18, 2008, issued by Deutsche Bank in favor of Pronam Aurora for the account of Foundry in the amount of EUR 23,016.09. |
2. | Irrevocable Standby Letter of Credit No. SVB01IS3411, dated January 19, 2001, issued by Silicon Valley Bank in favor of WGP Associates, LLC for the account of Foundry in the amount of $228,310. |
3. | Transfer Letter for credit line # SVB01IS3411, dated November 13, 2003, from WGP Associates, LLC to River Ridge Limited Partnership as beneficiary of the letter of credit (SVB01IS3411). |
4. | Transfer Letter for credit line # SVB01IS3411, dated November 17, 2004, from River Ridge Limited Partnership to Worldgate Plaza LLC as beneficiary of the letter of credit (SVB01IS3411). |
5. | Irrevocable Standby Letter of Credit No. SVBSF003561, dated June 23, 2005, issued by Silicon Valley Bank in favor of Hyperion Solutions Corporation for the account of Foundry in the amount of $250,000. |
Current Legal | ||||||||||
Entities Owned | Record Owner | Certificate No. | No. Shares/Interest | Percent Pledged | ||||||
[*] | [*] | [*] | [*] | |||||||
[*] | [*] | [*] | [*] | |||||||
Foundry Networks, | Brocade | Various | 14,000,000 shares of | — | ||||||
Inc. | Communications | Common Stock1 | ||||||||
Systems, Inc. |
1 | Shares of Foundry Networks, Inc. will be cancelled without further consideration upon closing of the acquisition. |
1745 Technology Drive
San Jose, CA 95110
Fax: 408-333-5955
Attn: Chief Financial Officer
1745 Technology Drive
San Jose, CA 95110
Fax: 408-333-5630
Attn: General Counsel
101 California Street, 5th Floor
San Francisco, CA 95110
Fax: 650-849-7400
Attn: Nancy Wojtas
Administrative Agent’s Office
2001 Clayton Road
Mail Code: CA4-702-02-25
Concord, CA 94520-2405
Attention: Marti Egner
Telephone: (925) 675-8144
Telecopier: (888) 969-9145
Electronic Mail:marti.j.egner@bankofamerica.com
Agency Management
1455 Market Street, 5th Floor
Mail Code: CA5-701-05-19
San Francisco, CA 94103
Attention: Robert Rittelmeyer
Telephone: (415) 436-2616
Telecopier: (415) 503-5099
Electronic Mail:robert.j.rittelmeyer@bankofamerica.com
Bank of America, N.A.
Trade Finance
1000 West Temple Street
Mail Code: CA9-705-07-05
Los Angeles, CA 90012
Attention: Bolivar Carrillo
Telephone: (213) 481-7842
Telecopier: (213) 457-8841
Electronic Mail:bolivar.carrillo@bankofamerica.com
2001 Clayton Road
Mail Code: CA4-702-02-25
Concord, CA 94520-2405
Attention: Marti Egner
Telephone: (925) 675-8144
Telecopier: (888) 969-9145
Electronic Mail:marti.j.egner@bankofamerica.com
1. | On (a Business Day). | ||
2. | In the amount of $ | ||
3. | Comprised of [Type of Loan requested] | ||
4. | For Eurodollar Rate Loans: with an Interest Period of months. |
1 | Include this sentence in the case of a Revolving Credit Borrowing. |
A-1
BROCADE COMMUNICATIONS SYSTEMS, INC. | ||||
By: | ||||
Name: | ||||
Title: |
A-2
Bank of America, N.A., as Administrative Agent
1. | On (a Business Day). | ||
2. | In the amount of $ . |
BROCADE COMMUNICATIONS SYSTEMS, INC. | ||||
By: | ||||
Name: | ||||
Title: |
B-1
C-1-1
BROCADE COMMUNICATIONS SYSTEMS, INC. | ||||
By: | ||||
Name: | ||||
Title: |
C-1-2
Amount of | Outstanding | |||||||||||||||||||||||
End of | Principal or | Principal | ||||||||||||||||||||||
Type of | Amount of | Interest | Interest Paid | Balance This | Notation | |||||||||||||||||||
Date | Loan Made | Loan Made | Period | This Date | Date | Made By | ||||||||||||||||||
�� | ||||||||||||||||||||||||
C-1-3
C-2-1
BROCADE COMMUNICATIONS SYSTEMS, INC. | ||||
By: | ||||
Name: | ||||
Title: |
C-2-2
Amount of | Outstanding | |||||||||||||||||||||||
End of | Principal or | Principal | ||||||||||||||||||||||
Type of | Amount of | Interest | Interest Paid | Balance This | Notation | |||||||||||||||||||
Date | Loan Made | Loan Made | Period | This Date | Date | Made By | ||||||||||||||||||
________ | ||||||||||||||||||||||||
________ | ||||||||||||||||||||||||
________ | ||||||||||||||||||||||||
________ | ||||||||||||||||||||||||
________ | ||||||||||||||||||||||||
________ | ||||||||||||||||||||||||
________ | ||||||||||||||||||||||||
________ | ||||||||||||||||||||||||
________ | ||||||||||||||||||||||||
________ | ||||||||||||||||||||||||
________ | ||||||||||||||||||||||||
________ | ||||||||||||||||||||||||
________ | ||||||||||||||||||||||||
________ | ||||||||||||||||||||||||
________ | ||||||||||||||||||||||||
________ | ||||||||||||||||||||||||
________ | ||||||||||||||||||||||||
________ | ||||||||||||||||||||||||
C-2-3
To: | Bank of America, N.A., as Administrative Agent |
statements]
statements]
2 | This certificates should be from the chief executive officer, chief financial officer, treasurer or controller of the Borrower. |
D-1
BROCADE COMMUNICATIONS SYSTEMS, INC. | ||||
By: | ||||
Name: | ||||
Title: |
D-2
to the Compliance Certificate
($ in 000’s)
I. | Section 7.10(a) — Consolidated Fixed Charge Coverage Ratio. | |||||||||
A. | Consolidated EBITDA for Measurement Period ending on above date (“Subject Period”): | |||||||||
1. | Consolidated Net Income for Subject Period: | $_____ | ||||||||
(a) | The following to the extent deducted in calculating such Consolidated Net Income: | |||||||||
2. | Consolidated Interest Charges for Subject Period: | $_____ | ||||||||
3. | Provision for Federal, state, local and foreign income taxes payable for | |||||||||
Subject Period: | $_____ | |||||||||
4. | Depreciation expenses for Subject Period: | $_____ | ||||||||
5. | Amortization expenses for Subject Period: | $_____ | ||||||||
6. | Fees, costs and expenses incurred on or prior to the Closing Date in connection with the Acquisition and the financing thereof for Subject Period: | $_____ | ||||||||
7. | Cash restructuring charges and integration costs in connection with the Acquisition, in an aggregate amount not to exceed $75,000,000 for the Subject Period: | $_____ | ||||||||
8. | Non-cash restructuring charges incurred in connection with the Transaction, all as approved by Arrangers, for the Subject Period: | $_____ | ||||||||
9. | Other non-recurring expenses reducing such Consolidated Net Income which do not represent a cash item in such period or any future period, for the Subject Period: | $_____ | ||||||||
10. | Non-cash charges for stock compensation expense in | $_____ |
3 | Revise as appropriate to confirm to financial covenants and related definitions in the Credit Agreement. |
D-3
compliance with FAS 123R and amortization of the fair value of unvested options under the Acquired Business‘ employee stock option plan assumed by the Borrower for the Subject Period: | ||||||||||
11. | Legal fees and expenses relating to the Borrower’s indemnification obligations for the benefit of its former officers and directors in connection with its historic stock option litigation for the Subject Period: | $_____ | ||||||||
(b) | The following to the extent included in calculating such Consolidated Net Income for the Subject Period: | |||||||||
12. | Federal, state, local and foreign income tax credits for the Subject Period: | $_____ | ||||||||
13. | All non-cash items increasing Consolidated Net Income for the Subject Period: | $_____ | ||||||||
14. | Consolidated EBITDA (Lines II.A.1 + 2 + 3 + 4 + 5 + 6+7+8+9+10+11+12 - 13-14): | $_____ | ||||||||
B. | Rentals payable under leases of real property for the Subject Period: | |||||||||
C. | Capital Expenditures for Subject Period: | $_____ | ||||||||
D. | Consolidated Interest Charges (excluding interest expense attributable to the Campus Sale-Leaseback) for Subject Period: | $_____ | ||||||||
E. | Aggregate principal amount of all regularly scheduled principal payments or redemptions or similar acquisitions for value of outstanding debt for borrowed money, but excluding any such payments to the extent refinanced through the incurrence of additional Indebtedness otherwise expressly permitted under Section 7.02 for Subject Period: | $_____ | ||||||||
F. | Rentals payable under leases of real property for Subject Period: | $_____ | ||||||||
G. | Aggregate amount of all Restricted Payments for Subject Period: | $_____ | ||||||||
H. | Aggregate amount of Federal, state, local and foreign income taxes paid in cash, in each case, of or by the Borrower and its Subsidiaries, for Subject Period: | $_____ | ||||||||
I. | Consolidated Fixed Charge Coverage Ratio ([Line I.A(b)(14) + Line I.B — Line I.C]¸ [Line I.D + Line I.E + Line I.F + Line I.G + Line I.H]): | _______ |
D-4
Minimum Consolidated | ||
Fixed Charge Coverage | ||
Four Fiscal Quarters Ending | Ratio | |
Closing Date through October 27, 2009 | 1.25:1.00 | |
October 28, 2009 through October 27, 2010 | 1.50:1.00 | |
October 28, 2010 through October 27, 2011 | 1.75:1.00 | |
October 28, 2011 and thereafter | 2.00:1.00 |
II. | Section 7.10(b) — Consolidated Leverage Ratio. | |||||||||
A. | Consolidated Funded Indebtedness at Statement Date | $_____ | ||||||||
B. | Consolidated EBITDA for the Subject Period (Line I.A(b)(14) above): | $_____ | ||||||||
C. | Consolidated Leverage Ratio (Line II.A¸ Line II.B): | ____ to 1 |
Maximum Consolidated | ||
Four Fiscal Quarters Ending | Leverage Ratio | |
Closing Date through October 27, 2009 | 4.25:1.00 | |
October 28, 2009 through October 27, 2010 | 3.75:1.00 | |
October 28, 2010 through October 27, 2011 | 3.00:1.00 | |
October 28, 2011 through October 27, 2012 | 2.75:1.00 | |
October 28, 2012 and each fiscal quarter thereafter | 2.50:1.00 |
III. | Section 7.10(c) — Consolidated Senior Secured Leverage Ratio | |||||||||
A. | Consolidated Funded Indebtedness at Statement Date (Line II.A above): | $_____ | ||||||||
B. | All unsecured senior subordinated or subordinated Indebtedness of the Borrower or its Subsidiaries on a consolidated basis for Subject Period (including without limitation the McData Notes): | $_____ |
D-5
C. | Consolidated EBITDA for Subject Period (Line I.A(b)(14) above): | |||||||||
D. | Consolidated Senior Secured Leverage Ratio ([Line III.A — Line III.B]¸ [Line I.A(b)(14)]): | _______ |
Minimum Consolidated | ||
Senior Secured Leverage | ||
Four Fiscal Quarters Ending | Ratio | |
Closing Date through October 27, 2009 | 2.30:1.00 | |
October 28, 2009 through October 27, 2010 | 2.00:1.00 | |
October 28, 2010 through October 27, 2012 | 1.75:1.00 | |
October 28, 2012 and each fiscal quarter thereafter | 1.50:1.00 |
IV. | Section 7.11 — Capital Expenditures. | |||||||||
A. | Capital Expenditures made during fiscal year to date: | $_____ | ||||||||
B. | Maximum permitted Capital Expenditures ($_____________ ): | $_____ |
Campus Sale- | ||||||||
Four Fiscal | Leaseback | Capital | ||||||
Quarters Ending | Expenditures | Expenditures | ||||||
Closing Date through October 27, 2009 | $ | 100,000,000 | $ | 100,000,000 | ||||
October 28 2009 through October 27, 2010 | $ | 100,000,000 | $ | 125,000,000 | ||||
October 28 2010 through October 27, 2011 | $ | 0 | $ | 125,000,000 | ||||
October 28 2011 through October 27, 2012 | $ | 0 | $ | 150,000,000 | ||||
October 28 2012 through October 27, 2013 | $ | 0 | $ | 150,000,000 |
C. | Excess (deficient) for covenant compliance (Line IV.B — IV.A): | $_____ |
D-6
to the Compliance Certificate
($ in 000’s)
D-7
1. | Assignor[s]: | |||
2. | Assignee[s]: | |||
3. | Borrower(s): | Brocade Communications Systems, Inc. |
E-1
4. | Administrative Agent: Bank of America, N.A., as the administrative agent under the Credit Agreement | |
5. | Credit Agreement: Credit Agreement, dated as of [________], 2008 among BROCADE COMMUNICATIONS SYSTEMS, INC., the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent, L/C Issuer, and Swing Line Lender | |
6. | Assigned Interest: |
Aggregate | Percentage | |||||||||||||||||||||||
Amount of | Amount of | Assigned of | ||||||||||||||||||||||
Facility | Commitment/Loans | Commitment/Loans | Commitment/ | CUSIP | ||||||||||||||||||||
Assignor[s]4 | Assignee[s]5 | Assigned | for all Lenders6 | Assigned | Loans7 | Number | ||||||||||||||||||
Term Facility | $ | _____________ | $ | _____________ | _____________ | % | ||||||||||||||||||
Revolving Credit Facility | $ | _____________ | $ | _____________ | _____________ | % |
[7. | Trade Date: __________________]8 |
ASSIGNOR [NAME OF ASSIGNOR] | ||||
By: | ||||
Title: | ||||
4 | List each Assignor, as appropriate. | |
5 | List each Assignee, as appropriate. | |
6 | Amounts in this column and in the column immediately to the right to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date. | |
7 | Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder. | |
8 | To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date. |
E-2
ASSIGNEE [NAME OF ASSIGNEE] | ||||
By: | ||||
Title: | ||||
[Consented to and]9 Accepted: BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Title: | ||||
[Consented to:]10 | ||||
By: | ||||
Title: | ||||
9 | To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement. | |
10 | To be added only if the consent of the Borrower and/or other parties (e.g. Swing Line Lender, L/C Issuer) is required by the terms of the Credit Agreement. |
E-3
E-4
E-5
GUARANTY
F-1
F-2
F-3
F-4
F-5
F-6
F-7
[EACH OF THE GUARANTORS], as Guarantor | ||||
By: | ||||
Name: | ||||
Title: | ||||
BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
to the Guaranty
JOINDER AGREEMENT
[NEW GUARANTOR] | ||||
By: | ||||
Name: | ||||
Title: | ||||
Address for Notices: BANK OF AMERICA, N.A. , as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
as Borrower
as Administrative Agent
Page | ||||||
PREAMBLE | 1 | |||||
RECITALS | 1 | |||||
AGREEMENT | 2 | |||||
ARTICLE I | ||||||
DEFINITIONS AND INTERPRETATION | ||||||
SECTION 1.1. | DEFINITIONS | 2 | ||||
SECTION 1.2. | INTERPRETATION | 9 | ||||
SECTION 1.3. | RESOLUTION OF DRAFTING AMBIGUITIES | 9 | ||||
SECTION 1.4. | PERFECTION CERTIFICATE | 9 | ||||
ARTICLE II | ||||||
GRANT OF SECURITY AND SECURED OBLIGATIONS | ||||||
SECTION 2.1. | GRANT OF SECURITY INTEREST | 9 | ||||
SECTION 2.2. | FILINGS | 10 | ||||
ARTICLE III | ||||||
PERFECTION; SUPPLEMENTS; FURTHER ASSURANCES; USE OF PLEDGED COLLATERAL | ||||||
SECTION 3.1. | DELIVERY OF CERTIFICATED SECURITIES COLLATERAL | 11 | ||||
SECTION 3.2. | PERFECTION OF UNCERTIFICATED SECURITIES COLLATERAL | 11 | ||||
SECTION 3.3. | FINANCING STATEMENTS AND OTHER FILINGS; MAINTENANCE OF PERFECTED SECURITY INTEREST | 12 | ||||
SECTION 3.4. | OTHER ACTIONS | 12 | ||||
SECTION 3.5. | JOINDER OF ADDITIONAL GUARANTORS | 14 | ||||
SECTION 3.6. | SUPPLEMENTS; FURTHER ASSURANCES | 15 | ||||
ARTICLE IV | ||||||
REPRESENTATIONS, WARRANTIES AND COVENANTS | ||||||
SECTION 4.1. | TITLE | 16 |
-i-
Page | ||||||
SECTION 4.2. | VALIDITY OF SECURITY INTEREST | 16 | ||||
SECTION 4.3. | DEFENSE OF CLAIMS; TRANSFERABILITY OF PLEDGED COLLATERAL | 16 | ||||
SECTION 4.4. | OTHER FINANCING STATEMENTS | 16 | ||||
SECTION 4.5. | LOCATION OF INVENTORY AND EQUIPMENT | 17 | ||||
SECTION 4.6. | DUE AUTHORIZATION AND ISSUANCE | 17 | ||||
SECTION 4.7. | CONSENTS, ETC. | 17 | ||||
SECTION 4.8. | PLEDGED COLLATERAL | 17 | ||||
SECTION 4.9. | INSURANCE | 18 | ||||
SECTION 4.10. | CHIEF EXECUTIVE OFFICE; CHANGE OF NAME; JURISDICTION OF ORGANIZATION | 18 | ||||
ARTICLE V | ||||||
CERTAIN PROVISIONS CONCERNING SECURITIES COLLATERAL | ||||||
SECTION 5.1. | PLEDGE OF ADDITIONAL SECURITIES COLLATERAL | 18 | ||||
SECTION 5.2. | VOTING RIGHTS; DISTRIBUTIONS; ETC. | 19 | ||||
SECTION 5.3. | DEFAULTS, ETC. | 20 | ||||
SECTION 5.4. | CERTAIN AGREEMENTS OF PLEDGORS AS ISSUERS AND HOLDERS OF EQUITY INTERESTS | 20 | ||||
ARTICLE VI | ||||||
CERTAIN PROVISIONS CONCERNING INTELLECTUAL PROPERTY COLLATERAL | ||||||
SECTION 6.1. | GRANT OF INTELLECTUAL PROPERTY LICENSE | 21 | ||||
SECTION 6.2. | PROTECTION OF ADMINISTRATIVE AGENT’S SECURITY | 21 | ||||
SECTION 6.3. | AFTER-ACQUIRED PROPERTY | 22 | ||||
SECTION 6.4. | LITIGATION | 22 | ||||
ARTICLE VII | ||||||
CERTAIN PROVISIONS CONCERNING RECEIVABLES | ||||||
SECTION 7.1. | MAINTENANCE OF RECORDS | 23 | ||||
SECTION 7.2. | LEGEND | 23 | ||||
SECTION 7.3. | MODIFICATION OF TERMS, ETC. | 23 | ||||
SECTION 7.4. | COLLECTION | 23 |
-ii-
Page | ||||||
ARTICLE VIII | ||||||
TRANSFERS | ||||||
SECTION 8.1. | TRANSFERS OF PLEDGED COLLATERAL | 24 | ||||
ARTICLE IX | ||||||
REMEDIES | ||||||
SECTION 9.1. | REMEDIES | 24 | ||||
SECTION 9.2. | NOTICE OF SALE | 26 | ||||
SECTION 9.3. | WAIVER OF NOTICE AND CLAIMS | 26 | ||||
SECTION 9.4. | CERTAIN SALES OF PLEDGED COLLATERAL | 27 | ||||
SECTION 9.5. | NO WAIVER; CUMULATIVE REMEDIES | 28 | ||||
SECTION 9.6. | CERTAIN ADDITIONAL ACTIONS REGARDING INTELLECTUAL PROPERTY | 29 | ||||
ARTICLE X | ||||||
APPLICATION OF PROCEEDS | ||||||
SECTION 10.1. | APPLICATION OF PROCEEDS | 29 | ||||
ARTICLE XI | ||||||
MISCELLANEOUS | ||||||
SECTION 11.1. | CONCERNING ADMINISTRATIVE AGENT | 29 | ||||
SECTION 11.2. | ADMINISTRATIVE AGENT MAY PERFORM; ADMINISTRATIVE AGENT APPOINTED ATTORNEY-IN-FACT | 30 | ||||
SECTION 11.3. | CONTINUING SECURITY INTEREST; ASSIGNMENT | 31 | ||||
SECTION 11.4. | TERMINATION; RELEASE | 32 | ||||
SECTION 11.5. | MODIFICATION IN WRITING | 32 | ||||
SECTION 11.6. | NOTICES | 32 | ||||
SECTION 11.7. | GOVERNING LAW, CONSENT TO JURISDICTION AND SERVICE OF PROCESS; WAIVER OF JURY TRIAL | 32 | ||||
SECTION 11.8. | SEVERABILITY OF PROVISIONS | 32 | ||||
SECTION 11.9. | EXECUTION IN COUNTERPARTS | 33 | ||||
SECTION 11.10. | BUSINESS DAYS | 33 | ||||
SECTION 11.11. | NO CREDIT FOR PAYMENT OF TAXES OR IMPOSITION | 33 | ||||
SECTION 11.12. | NO CLAIMS AGAINST ADMINISTRATIVE AGENT | 33 | ||||
SECTION 11.13. | NO RELEASE | 33 |
-iii-
Page | ||||||
SECTION 11.14. | OBLIGATIONS ABSOLUTE | 34 | ||||
SIGNATURES | S-1 | |||||
EXHIBIT 1 | Form of Issuer’s Acknowledgment | �� | ||||
EXHIBIT 2 | Form of Securities Pledge Amendment | |||||
EXHIBIT 3 | Form of Joinder Agreement | |||||
EXHIBIT 4 | Form of Copyright Security Agreement | |||||
EXHIBIT 5 | Form of Patent Security Agreement | |||||
EXHIBIT 6 | Form of Trademark Security Agreement | |||||
EXHIBIT 7 | Form of Bailee’s Letter |
-iv-
G-1
G-2
G-3
G-4
G-5
G-6
G-7
G-8
(i) | all Accounts; | ||
(ii) | all Equipment, Goods, Inventory and Fixtures; | ||
(iii) | all Documents, Instruments and Chattel Paper; | ||
(iv) | all Letters of Credit and Letter-of-Credit Rights; | ||
(v) | all Securities Collateral; | ||
(vi) | all Investment Property; |
G-9
(vii) | all Intellectual Property Collateral; | ||
(viii) | the Commercial Tort Claims described onSchedule 12 to the Perfection Certificate; | ||
(ix) | all General Intangibles; | ||
(x) | all Money and all Deposit Accounts; | ||
(xi) | all Supporting Obligations; | ||
(xii) | all books and records relating to the Pledged Collateral; and | ||
(xiii) | to the extent not covered by clauses (i) through (xii) of this sentence, all other personal property of such Pledgor, whether tangible or intangible, and all Proceeds and products of each of the foregoing and all accessions to, substitutions and replacements for, and rents, profits and products of, each of the foregoing, any and all Proceeds of any insurance, indemnity, warranty or guaranty payable to such Pledgor from time to time with respect to any of the foregoing. |
G-10
USE OF PLEDGED COLLATERAL
G-11
G-12
G-13
G-14
G-15
G-16
G-17
G-18
G-19
G-20
PROPERTY COLLATERAL
G-21
G-22
G-23
G-24
G-25
G-26
G-27
G-28
G-29
G-30
G-31
G-32
G-33
G-34
BROCADE COMMUNICATION SYSTEMS, INC., as Pledgor | ||||
By: | ||||
Name: | ||||
Title: | ||||
[LIST SUBSIDIARY GUARANTORS] [ ], as Pledgors | ||||
By: | ||||
Name: | ||||
Title: |
BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
[ ] | ||||
By: | ||||
Name: | ||||
Title: |
CLASS | NUMBER OF | PERCENTAGE OF | ||||||||||||||||||
OF STOCK | SHARES | ALL ISSUED CAPITAL | ||||||||||||||||||
OR | PAR | CERTIFICATE | OR | OR OTHER EQUITY | ||||||||||||||||
ISSUER | INTERESTS | VALUE | NO(S). | INTERESTS | INTERESTS OF ISSUER | |||||||||||||||
PRINCIPAL | DATE OF | INTEREST | MATURITY | |||||||||||||
ISSUER | AMOUNT | ISSUANCE | RATE | DATE | ||||||||||||
BROCADE COMMUNICATION SYSTEMS, INC., as Pledgor | ||||
By: | ||||
Name: | ||||
Title: | ||||
AGREED TO AND ACCEPTED: BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: |
[Address of New Pledgor]
[NEW PLEDGOR] | ||||
By: | ||||
Name: | ||||
Title: | ||||
AGREED TO AND ACCEPTED: BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
Very truly yours, [PLEDGORS] | ||||
By: | ||||
Name: | ||||
Title: | ||||
Accepted and Agreed: BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: |
to
COPYRIGHT SECURITY AGREEMENT
COPYRIGHT REGISTRATIONS AND COPYRIGHT APPLICATIONS
REGISTRATION | ||||||||
OWNER | NUMBER | TITLE | ||||||
Copyright Applications: |
OWNER | TITLE | |||
Very truly yours, [PLEDGORS] | ||||
By: | ||||
Name: | ||||
Title: | ||||
Accepted and Agreed: BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: |
to
PATENT SECURITY AGREEMENT
PATENT REGISTRATIONS AND PATENT APPLICATIONS
REGISTRATION | ||||||||
OWNER | NUMBER | NAME | ||||||
APPLICATION | ||||||||
OWNER | NUMBER | NAME | ||||||
Very truly yours, [PLEDGORS] | ||||
By: | ||||
Name: | ||||
Title: | ||||
Accepted and Agreed: BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: |
to
TRADEMARK SECURITY AGREEMENT
TRADEMARK REGISTRATIONS AND TRADEMARK APPLICATIONS
REGISTRATION | ||||||||
OWNER | NUMBER | TRADEMARK | ||||||
APPLICATION | ||||||||
OWNER | NUMBER | TRADEMARK | ||||||
[Bailee’s Address]
Receipt acknowledged, confirmed and approved: | Very truly yours, | |||||||||
[BAILEE] | [APPLICABLE PLEDGOR] | |||||||||
By: | By: | |||||||||
Name: | Name: | |||||||||
Title: | Title: |
(Securities)
H-1
H-2
H-3
H-4
H-5
1745 Technology Drive
San Jose, CA 95110
Attention: Jean Furter; Treasurer
H-6
San Francisco, CA 94111-5800
Facsimile: (415) 693-2222
Attention: Joseph Scherer, Esq.
1455 Market Street, 5th Floor,
San Francisco, CA 94103
Facsimile: (415) 503-5099
Attention: Robert Rittelmeyer
80 Pine Street
New York, NY 10005
Facsimile: (212) 378-2554
Attention: Luis Penalver, Esq.
H-7
H-8
BROCADE COMMUNICATIONS SYSTEMS, INC., as Pledgor | |||||
By: | |||||
Name: | |||||
Title: | |||||
Organizational ID: |
H-9
BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
H-10
Description of Collateral
COLLATERAL MAINTENANCE
Approved Collateral Types | Borrowing Base Percentage | |||
U.S. Government Obligations | 100 | % | ||
U.S. Agency Obligations | 100 | % | ||
Treasury Portfolio at AIM Fund | 100 | % | ||
Treasury Obligations Fund at Federated | 100 | % |
I-1
substance approved by the Administrative Agent ]
J-1
substance approved by the Administrative Agent ]
K-1
L-1
L-2
INTERCOMPANY NOTE
[date]
M-1
M-2
M-3
BROCADE COMMUNICATIONS SYSTEMS, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
[LIST SUBSIDIARIES] | ||||
By: | ||||
Name: | ||||
Title: |
M-4
[Borrower and Guarantors] | ||||
By: | ||||
Name: | ||||
Title: | ||||
N-1
UNITED STATES TAX COMPLIANCE CERTIFICATE
(For Non-U.S. Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)
O1-1
[Lender] | ||||
By: | ||||
Name: | ||||
Title: | ||||
[Address] |
O1-2
UNITED STATES TAX COMPLIANCE CERTIFICATE
(For Non-U.S. Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)
O2-1
[Lender] | ||||
By: | ||||
Name: | ||||
Title: | ||||
[Address] |
O2-2
UNITED STATES TAX COMPLIANCE CERTIFICATE
(For Non-U.S. Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)
O3-1
[Lender] | ||||
By: | ||||
Name: | ||||
Title: | ||||
[Address] |
O3-2
UNITED STATES TAX COMPLIANCE CERTIFICATE
(For Non-U.S. Participants That Are Partnerships For U.S. Federal Income Tax Purposes)
O4-1
[Lender] | ||||
By: | ||||
Name: | ||||
Title: | ||||
[Address] |
O4-2