Globecomm Systems (GCOM) 10-Q 2007 Q3 Quarterly report

TERM LOAN AGREEMENT

Dated as of May 2, 2007

by and between

GLOBECOMM SYSTEMS INC.

and

CITIBANK, N.A.

TABLE OF CONTENTS

ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS								1
SECTION 1.01.			Definitions					1
SECTION 1.02.			Accounting Terms					8
ARTICLE II
TERM LOAN								8
SECTION 2.01.			Term Loan					8
SECTION 2.02.			Note					9
ARTICLE III
INTEREST RATE; FEES AND PAYMENTS; USE OF PROCEEDS								9
SECTION 3.01.			Interest Rate					9
SECTION 3.02.			Use of Proceeds					11
SECTION 3.03.			Prepayments					11
SECTION 3.04.			Fee					11
SECTION 3.05.			Inability to Determine Interest Rate					11
SECTION 3.06.			Illegality					11
SECTION 3.07.			Increased Costs					12
SECTION 3.08.			Indemnity					12
SECTION 3.09.			Taxes					13
SECTION 3.10.			Payments					13
SECTION 3.11.			Disbursement of Term Loan					13
SECTION 3.12.			Manner of Payment					13
ARTICLE IV
REPRESENTATIONS AND WARRANTIES								14
SECTION 4.01.			Organization, Corporate Powers, etc					14
SECTION 4.02.			Authorization of Borrowing, Enforceable Obligations					14
SECTION 4.03.			Financial Condition					14
SECTION 4.04.			Taxes					15
SECTION 4.05.			Title to Properties					15
SECTION 4.06.			Litigation					15
SECTION 4.07.			Agreements					15
SECTION 4.08.			Compliance with ERISA					15
SECTION 4.09.			Federal Reserve Regulations; Use of Proceeds					15
SECTION 4.10.			Approval					16
SECTION 4.11.			Subsidiaries and Affiliates					16
SECTION 4.12.			Hazardous Materials					16
SECTION 4.13.			Investment Company Act					16
SECTION 4.14.			No Default					16
SECTION 4.15.			Material Contracts					16
SECTION 4.16.			Permits and Licenses.					16

ii

SECTION 4.17.			Compliance with Law					16
SECTION 4.18.			Disclosure.					17
SECTION 4.19.			Acquisition Documents.					17
SECTION 4.20.			Security Documents					17
ARTICLE V
CONDITIONS OF LENDING								17
SECTION 5.01.			Conditions To Term Loan					17
ARTICLE VI
AFFIRMATIVE COVENANTS								19
SECTION 6.01.								19
SECTION 6.02.			Payment of Indebtedness, Taxes, etc					20
SECTION 6.03.			Financial Statements, Reports, etc					20
SECTION 6.04.			Access to Premises and Records					21
SECTION 6.05.			Notice of Adverse Change					21
SECTION 6.06.			Notice of Default					21
SECTION 6.07.			Notice of Litigation					21
SECTION 6.08.			ERISA					21
SECTION 6.09.			Compliance with Applicable Laws					22
SECTION 6.10.			Subsidiaries and Affiliates					22
SECTION 6.11.			Default in Other Agreements					22
SECTION 6.12.			Operating Accounts					22
SECTION 6.13.			Environmental Laws					22
ARTICLE VII
NEGATIVE COVENANTS								23
SECTION 7.01.			Liens					23
SECTION 7.02.			Indebtedness					23
SECTION 7.03.			Guaranties					23
SECTION 7.04.			Sale of Assets					24
SECTION 7.05.			Sales of Notes					24
SECTION 7.06.			Loans and Investments					24
SECTION 7.07.			Nature of Business					24
SECTION 7.08.			Sale and Leaseback					24
SECTION 7.09.			Federal Reserve Regulations					24
SECTION 7.10.			Accounting Policies and Procedures					24
SECTION 7.11.			Hazardous Materials					24
SECTION 7.12.			Limitations on Fundamental Changes					25
SECTION 7.13.			Financial Covenants					25
SECTION 7.14.			Subordinated Debt					25
SECTION 7.15.			Dividends					25
SECTION 7.16.			Transactions with Affiliates					25
SECTION 7.17.			Impairment of Security Interest					25

iii

SECTION 7.18.			Acquisition Documents.					25
SECTION 7.19.			Negative Pledge					25
SECTION 7.20.			Globecomm Systems Europe Ltd.					26
ARTICLE VIII
EVENTS OF DEFAULT								26
SECTION 8.01.			Events of Default					26
ARTICLE IX
MISCELLANEOUS								27
SECTION 9.01.			Notices					27
SECTION 9.02.			Survival of Agreement					28
SECTION 9.03.			Expenses of the Bank					28
SECTION 9.04.			No Waiver of Rights by the Bank					29
SECTION 9.05.			Applicable Law					29
SECTION 9.06.			Submission to Jurisdiction; Jury Waiver.					29
SECTION 9.07.			Extension of Maturity					29
SECTION 9.08.			Modification of Agreement					30
SECTION 9.09.			Severability					30
SECTION 9.10.			Sale of Participations, Assignments					30
SECTION 9.11.			Reinstatement; Certain Payments					30
SECTION 9.12.			Right of Setoff					30
SECTION 9.13.			Counterparts					30
SECTION 9.14.			Headings					30
SECTION 9.15.			Construction					30
SECTION 9.16.			USA PATRIOT Act.					30
SECTION 9.17.			Termination.					31

SCHEDULES

Schedule I	–	Subsidiaries and Affiliates

Schedule II	–	Liens

Schedule III	–	Existing Indebtedness

Schedule IV	–	Existing Guaranties

EXHIBITS

Exhibit A	–	Form of Note

Exhibit B	–	Form of Guaranty

Exhibit C	–	Form of Pledge Agreement

Exhibit D	–	Form of Security Agreement

Exhibit E	–	Form of Opinion of Counsel

iv