TERM LOAN AGREEMENT Dated as of May 2, 2007 by and between GLOBECOMM SYSTEMS INC. and CITIBANK, N.A.

EX-4.1A 2 file2.htm TERM LOAN AGREEMENT

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


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