Term Loan Agreement

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

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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

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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

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