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`
`UNITED
`STATES
`SECURITIES
`AND
`EXCHANGE
`COMMISSION
`Washington,
`D.C.
`20549
`
`
`
`FORM
`8-K
`
`
`CURRENT
`REPORT
`Pursuant
`to
`Section
`13
`or
`15(d)
`of
`the
`Securities
`Exchange
`Act
`of
`1934
`
`Date
`of
`report
`(Date
`of
`earliest
`event
`reported):
`December
`10,
`2018
`
`
`
`
`Lumentum
`Holdings
`Inc.
`
`(Exact
`name
`of
`Registrant
`as
`specified
`in
`its
`charter)
`
`Delaware
`(State
`or
`Other
`Jurisdiction
`of
`Incorporation)
`
`
`
`
`
`
`
`
`
`
`001-36861
`(Commission
`File
`Number)
`
`
`
`
`
`
`
`47-3108385
`(IRS
`Employer
`Identification
`Number)
`
`400
`North
`McCarthy
`Boulevard,
`Milpitas,
`CA
`(Address
`of
`Principal
`Executive
`Offices)
`
`
`
`
`
`
`95035
`(Zip
`Code)
`
`(408)
`546-5483
`(Registrant’s
`Telephone
`Number,
`Including
`Area
`Code)
`
`Not
`Applicable
`(Former
`Name
`or
`Former
`Address,
`if
`Changed
`Since
`Last
`Report)
`
`
`
`
`Check
`the
`appropriate
`box
`below
`if
`the
`Form
`8-K
`filing
`is
`intended
`to
`simultaneously
`satisfy
`the
`filing
`obligation
`of
`the
`registrant
`under
`any
`of
`the
`following
`provisions:
`
`
`☐ Written
`communications
`pursuant
`to
`Rule
`425
`under
`the
`Securities
`Act
`(17
`CFR
`230.425)
`
`
`☐ Soliciting
`material
`pursuant
`to
`Rule
`14a-12
`under
`the
`Exchange
`Act
`(17
`CFR
`240.14a-12)
`
`
`☐ Pre-commencement
`communications
`pursuant
`to
`Rule
`14d-2(b)
`under
`the
`Exchange
`Act
`(17
`CFR
`240.14d-2(b))
`
`
`☐ Pre-commencement
`communications
`pursuant
`to
`Rule
`13e-4(c)
`under
`the
`Exchange
`Act
`(17
`CFR
`240.13e-4(c))
`
`Indicate
`by
`check
`mark
`whether
`the
`registrant
`is
`an
`emerging
`growth
`company
`as
`defined
`in
`Rule
`405
`of
`the
`Securities
`act
`of
`1933
`(§
`230.405
`of
`this
`chapter)
`or
`Rule
`12b-2
`of
`the
`Securities
`Exchange
`Act
`of
`1934
`(§
`240.12b-2
`of
`this
`chapter).
`Emerging
`growth
`company
`
`☐
`
`If
`an
`emerging
`growth
`company,
`indicate
`by
`check
`mark
`if
`the
`registrant
`has
`elected
`not
`to
`use
`the
`extended
`transition
`period
`for
`complying
`with
`any
`new
`or
`revised
`financial
`accounting
`standards
`provided
`pursuant
`to
`Section
`13(a)
`of
`the
`Exchange
`Act
`
`☐
`
`
`
`
`
`
`IPR2017-01881
`
`PETITIONER EXHIBIT 1044
`Page 1 of 318
`
`

`

`Introductory
`Note.
`As
`previously
`disclosed,
`on
`March
`11,
`2018,
`Lumentum
`Holdings
`Inc.,
`a
`Delaware
`corporation
`(“Lumentum”),
`Oclaro,
`Inc.,
`a
`Delaware
`corporation
`(“Oclaro”),
`Prota
`Merger
`Sub,
`Inc.,
`a
`Delaware
`corporation
`and
`a
`wholly
`owned
`subsidiary
`of
`Lumentum
`(“Merger
`Sub”),
`and
`Prota
`Merger,
`LLC,
`a
`Delaware
`limited
`liability
`company
`and
`a
`wholly
`owned
`subsidiary
`of
`Lumentum
`(“Merger
`Sub
`LLC”),
`entered
`into
`an
`Agreement
`and
`Plan
`of
`Merger
`(the
`“Merger
`Agreement”).
`This
`Current
`Report
`on
`Form
`8-K
`is
`being
`filed
`in
`connection
`with
`the
`consummation
`of
`the
`transactions
`contemplated
`by
`the
`Merger
`Agreement.
`
`Item
`1.01
`Entry
`into
`a
`Material
`Definitive
`Agreement.
`On
`December
`10,
`2018
`(the
`“Closing
`Date”),
`Lumentum
`entered
`into
`a
`Credit
`Agreement
`(the
`“Credit
`Agreement”),
`by
`and
`among
`Lumentum,
`certain
`subsidiaries
`of
`Lumentum
`from
`time
`to
`time
`party
`thereto,
`as
`subsidiary
`guarantors,
`the
`lenders
`from
`time
`to
`time
`party
`thereto,
`and
`Deutsche
`Bank
`AG
`New
`York
`Branch,
`as
`administrative
`agent
`and
`collateral
`agent.
`
`The
`Credit
`Agreement
`provides
`for
`a
`senior
`secured
`term
`loan
`facility
`(the
`“Term
`Loan
`Facility”)
`in
`an
`aggregate
`principal
`amount
`of
`$500.0
`million.
`The
`term
`loans
`available
`under
`the
`Term
`Loan
`Facility
`(the
`“Term
`Loans”)
`were
`fully
`drawn
`on
`the
`Closing
`Date
`and
`the
`proceeds
`of
`the
`Term
`Loans
`were
`used
`to
`finance
`a
`portion
`of
`the
`consideration
`for
`the
`transactions
`contemplated
`by
`the
`Merger
`Agreement
`and
`pay
`fees
`and
`expenses
`incurred
`in
`connection
`with
`such
`transactions
`and
`the
`Term
`Loan
`Facility.
`The
`Credit
`Agreement
`permits
`Lumentum
`to
`add
`one
`or
`more
`incremental
`term
`loan
`facilities
`in
`an
`aggregate
`principal
`amount
`not
`to
`exceed
`(a)
`the
`greater
`of
`(A)
`$485.0
`million
`and
`(B)
`100.0%
`of
`LTM
`Consolidated
`Adjusted
`EBITDA
`(as
`defined
`in
`the
`Credit
`Agreement),
`plus
`(b)
`an
`additional
`amount
`equal
`to
`the
`amount
`of
`certain
`voluntary
`prepayments
`of
`indebtedness
`(including
`voluntary
`prepayments
`of
`the
`Term
`Loans),
`plus
`(c)
`an
`unlimited
`amount
`that
`is
`subject
`to
`pro
`forma
`compliance
`with
`(i)
`in
`respect
`of
`any
`pari
`passu
`indebtedness,
`a
`first
`lien
`net
`leverage
`ratio
`test
`or
`(ii)
`in
`respect
`of
`any
`junior
`or
`unsecured
`indebtedness,
`a
`total
`net
`leverage
`ratio
`test.
`Incremental
`loans
`are
`subject
`to
`certain
`additional
`conditions,
`including
`obtaining
`additional
`commitments
`from
`the
`lenders
`then
`party
`to
`the
`Credit
`Agreement
`or
`from
`new
`lenders.
`
`The
`Term
`Loans
`bear
`interest,
`at
`Lumentum’s
`option,
`at
`a
`rate
`equal
`to
`either
`(a)
`a
`base
`rate
`equal
`to
`the
`highest
`of
`(A)
`the
`prime
`rate
`then
`in
`effect,
`(B)
`the
`federal
`funds
`rate,
`plus
`0.50%
`and
`(C)
`an
`adjusted
`LIBOR
`rate
`determined
`on
`the
`basis
`of
`a
`one-month
`interest
`period,
`plus
`1.0%
`or
`(b)
`an
`adjusted
`LIBOR
`rate,
`subject
`to
`a
`floor
`of
`0.0%,
`in
`each
`case,
`plus
`an
`applicable
`margin
`of
`(i)
`initially,
`2.50%
`in
`the
`case
`of
`LIBOR
`rate
`loans
`and
`1.50%
`in
`the
`case
`of
`base
`rate
`loans
`and
`(ii)
`following
`Lumentum’s
`delivery
`of
`financial
`statements
`for
`the
`first
`full
`fiscal
`quarter
`following
`the
`Closing
`Date,
`(y)
`if
`Lumentum’s
`first
`lien
`net
`leverage
`ratio
`is
`greater
`than
`0.50:1.00,
`an
`applicable
`margin
`of
`2.50%
`in
`the
`case
`of
`LIBOR
`rate
`loans
`and
`1.50%
`in
`the
`case
`of
`base
`rate
`loans
`or
`(z)
`if
`Lumentum’s
`first
`lien
`net
`leverage
`ratio
`is
`equal
`to
`or
`less
`than
`0.50:1.00,
`2.25%
`in
`the
`case
`of
`LIBOR
`rate
`loans
`and
`1.25%
`in
`the
`case
`of
`base
`rate
`loans.
`Commencing
`on
`the
`last
`business
`day
`of
`the
`first
`full
`fiscal
`quarter
`after
`the
`Closing
`Date,
`the
`Term
`Loans
`will
`amortize
`in
`equal
`quarterly
`installments
`equal
`to
`0.25%
`of
`the
`original
`principal
`amount
`of
`the
`Term
`Loans,
`with
`the
`balance
`payable
`on
`the
`maturity
`date.
`The
`Term
`Loans
`will
`mature
`on
`the
`seventh
`anniversary
`of
`the
`Closing
`Date,
`at
`which
`time
`all
`outstanding
`principal
`and
`accrued
`and
`unpaid
`interest
`on
`the
`Term
`Loans
`must
`be
`repaid.
`
`Lumentum
`is
`required
`to
`make
`mandatory
`prepayments
`of
`the
`outstanding
`principal
`amount
`of
`Term
`Loans
`with
`the
`net
`cash
`proceeds
`from
`the
`disposition
`of
`certain
`assets
`and
`the
`receipt
`of
`insurance
`proceeds
`upon
`certain
`casualty
`and
`condemnation
`events,
`in
`each
`case,
`to
`the
`extent
`in
`excess
`of
`certain
`threshold
`amounts
`and
`to
`the
`extent
`not
`reinvested
`within
`a
`specified
`time
`period.
`Lumentum
`is
`also
`required
`to
`make
`mandatory
`prepayments
`of
`the
`outstanding
`principal
`amount
`of
`Term
`Loans
`from
`the
`incurrence
`of
`certain
`types
`of
`indebtedness
`and
`from
`any
`excess
`cash
`flow
`beyond
`stated
`threshold
`amounts.
`Lumentum
`has
`the
`right
`to
`prepay
`the
`Term
`Loans,
`in
`whole
`or
`in
`part,
`at
`any
`time
`without
`premium
`or
`penalty,
`subject
`to
`certain
`limitations
`and
`a
`1.00%
`soft
`call
`premium
`applicable
`during
`the
`first
`six
`months
`following
`the
`Closing
`Date.
`Lumentum
`is
`also
`obligated
`to
`pay
`customary
`fees
`for
`a
`credit
`facility
`of
`this
`size
`and
`type.
`
`Lumentum’s
`obligations
`under
`the
`Credit
`Agreement
`are
`required
`to
`be
`guaranteed
`by
`certain
`of
`its
`domestic
`subsidiaries
`meeting
`materiality
`thresholds
`set
`forth
`in
`the
`Credit
`Agreement.
`Such
`obligations,
`including
`the
`guaranties,
`are
`secured
`by
`substantially
`all
`of
`the
`assets
`of
`Lumentum
`and
`Lumentum’s
`subsidiary
`guarantors
`(other
`than
`customarily
`excluded
`assets)
`pursuant
`to
`a
`Pledge
`and
`Security
`Agreement,
`dated
`as
`of
`December
`10,
`2018,
`by
`and
`among
`Lumentum,
`the
`subsidiary
`guarantors
`from
`time
`to
`time
`party
`thereto,
`and
`Deutsche
`Bank
`AG
`New
`York
`Branch,
`as
`collateral
`agent.
`
`IPR2017-01881
`
`PETITIONER EXHIBIT 1044
`Page 2 of 318
`
`

`

`The
`Credit
`Agreement
`contains
`customary
`affirmative
`and
`negative
`covenants,
`including
`covenants
`limiting
`the
`ability
`of
`Lumentum
`and
`its
`restricted
`subsidiaries
`to,
`among
`other
`things,
`incur
`debt,
`grant
`liens,
`undergo
`certain
`fundamental
`changes,
`make
`investments,
`make
`certain
`restricted
`payments,
`dispose
`of
`assets,
`and
`enter
`into
`transactions
`with
`affiliates,
`in
`each
`case,
`subject
`to
`limitations
`and
`exceptions
`set
`forth
`in
`the
`Credit
`Agreement.
`The
`Credit
`Agreement
`also
`contains
`customary
`events
`of
`default
`that
`include,
`among
`other
`things,
`certain
`payment
`defaults,
`cross
`defaults
`to
`other
`indebtedness,
`covenant
`defaults
`,
`change
`of
`control
`defaults,
`judgment
`defaults,
`and
`bankruptcy
`and
`insolvency
`defaults.
`If
`an
`event
`of
`default
`exists,
`the
`lenders
`may
`require
`the
`immediate
`payment
`of
`all
`obligations
`under
`the
`Credit
`Agreement,
`and
`may
`exercise
`certain
`other
`rights
`and
`remedies
`provided
`for
`under
`the
`Credit
`Agreement,
`the
`other
`loan
`documents
`and
`applicable
`law.
`
`Certain
`of
`the
`agents,
`arrangers
`and
`lenders
`under
`the
`Credit
`Agreement
`and
`their
`respective
`affiliates
`have
`engaged
`in,
`and
`may
`in
`the
`future
`engage
`in,
`investment
`banking
`and
`other
`commercial
`dealings
`in
`the
`ordinary
`course
`of
`business
`with
`Lumentum
`and/or
`Lumentum’s
`affiliates.
`The
`agents,
`arrangers
`and
`lenders
`and
`their
`respective
`affiliates
`have
`received,
`or
`may
`in
`the
`future
`receive,
`customary
`fees
`and
`commissions
`for
`these
`transactions.
`
`The
`foregoing
`description
`of
`the
`Credit
`Agreement
`does
`not
`purport
`to
`be
`complete
`and
`is
`qualified
`in
`its
`entirety
`by
`reference
`to
`the
`Credit
`Agreement,
`a
`copy
`of
`which
`is
`attached
`hereto
`as
`Exhibit
`10.1
`and
`is
`incorporated
`herein
`by
`reference.
`
`Item
`2.01.
`Completion
`of
`Acquisition
`or
`Disposition
`of
`Assets.
`Pursuant
`to
`the
`Merger
`Agreement,
`on
`December
`10,
`2018,
`Merger
`Sub
`merged
`with
`and
`into
`Oclaro
`(the
`“Merger”),
`with
`Oclaro
`surviving
`the
`Merger
`(the
`time
`of
`the
`Merger,
`the
`“Effective
`Time”).
`
`At
`the
`Effective
`Time,
`each
`outstanding
`share
`of
`Oclaro
`common
`stock,
`par
`value
`$0.01
`per
`share,
`other
`than
`shares
`owned
`by
`Lumentum,
`Oclaro
`and
`their
`subsidiaries,
`was
`automatically
`converted
`into
`the
`right
`to
`receive
`the
`following
`consideration
`(collectively,
`the
`“Merger
`Consideration”),
`without
`interest:
`
`
`
`
`•
`
`
`•
`
`
`
`
` $5.60
`in
`cash
`(the
`“Cash
`Consideration”);
`and
`
` 0.0636
`of
`a
`validly
`issued,
`fully
`paid
`and
`nonassessable
`share
`of
`Lumentum
`common
`stock,
`par
`value
`$0.001
`per
`share
`(the
`“Stock
`Consideration”)
`(such
`ratio,
`the
`“Exchange
`Ratio”).
`
`Each
`Oclaro
`restricted
`stock
`unit
`award
`(each,
`an
`“Oclaro
`RSU”)
`that
`did
`not
`become
`vested
`at
`the
`Effective
`Time
`was
`converted
`into
`a
`Lumentum
`restricted
`stock
`unit
`award
`(a
`“Lumentum
`RSU”)
`with
`the
`same
`terms
`and
`conditions,
`including
`vesting,
`that
`were
`applicable
`to
`such
`Oclaro
`RSU,
`except
`that
`the
`number
`of
`Lumentum
`shares
`subject
`to
`the
`Lumentum
`RSU
`equals
`the
`product
`of
`(i)
`the
`number
`of
`Oclaro
`shares
`subject
`to
`such
`Oclaro
`RSU
`(with
`any
`performance
`milestones
`deemed
`achieved
`based
`on
`the
`maximum
`level
`of
`achievement)
`multiplied
`by
`(ii)
`the
`sum
`of
`(A)
`the
`Exchange
`Ratio
`plus
`(B)
`the
`quotient
`obtained
`by
`dividing
`the
`Cash
`Consideration
`by
`$43.189
`(Lumentum’s
`average
`closing
`price
`for
`the
`10
`trading
`days
`ending
`on
`December
`4,
`2018,
`the
`third
`trading
`day
`prior
`to
`the
`Closing
`Date),
`rounded
`down
`to
`the
`nearest
`whole
`share
`(such
`sum,
`the
`“Equity
`Award
`Exchange
`Ratio”).
`
`Each
`Oclaro
`stock
`option
`(each,
`an
`“Oclaro
`Option”),
`whether
`vested
`or
`unvested,
`was
`converted
`into
`a
`Lumentum
`stock
`option
`(a
`“Lumentum
`Option”)
`with
`the
`same
`terms
`and
`conditions,
`including
`vesting,
`that
`were
`applicable
`to
`such
`Oclaro
`Option,
`except
`that
`(i)
`the
`number
`of
`shares
`subject
`to
`the
`Lumentum
`Option
`equals
`the
`product
`of
`(A)
`the
`number
`of
`Oclaro
`shares
`subject
`to
`such
`Oclaro
`Option
`multiplied
`by
`(B)
`the
`Equity
`Award
`Exchange
`Ratio,
`rounded
`down
`to
`the
`nearest
`whole
`share
`and
`(ii)
`the
`exercise
`price
`of
`the
`Lumentum
`Option
`equals
`(A)
`the
`exercise
`price
`per
`share
`of
`the
`Oclaro
`Option
`divided
`by
`(B)
`the
`Equity
`Award
`Exchange
`Ratio,
`rounded
`up
`to
`the
`nearest
`whole
`cent.
`Notwithstanding
`the
`foregoing,
`any
`Oclaro
`Option
`that
`was
`held
`by
`an
`individual
`who
`was
`not
`an
`Oclaro
`employee
`as
`of
`immediately
`prior
`to
`the
`Effective
`Time
`was
`cancelled
`and
`converted
`into
`the
`right
`to
`receive
`the
`Merger
`Consideration
`for
`each
`net
`option
`share
`covered
`by
`such
`Oclaro
`Option,
`subject
`to
`applicable
`withholding
`taxes.
`
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`
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`
`

`

`In
`addition,
`each
`Oclaro
`restricted
`stock
`award
`(“Oclaro
`Restricted
`Stock
`Award”)
`and
`Oclaro
`RSU
`that
`became
`vested
`as
`of
`immediately
`prior
`to
`the
`Effective
`Time
`(including
`each
`Oclaro
`Restricted
`Stock
`Award
`held
`by
`a
`non-employee
`director)
`was
`converted
`into
`the
`right
`to
`receive
`the
`Merger
`Consideration
`in
`respect
`of
`each
`Oclaro
`share
`underlying
`such
`award,
`subject
`to
`applicable
`withholding
`taxes.
`Each
`Oclaro
`stock
`appreciation
`right
`(“Oclaro
`SAR”)
`was
`cancelled
`and
`converted
`into
`the
`right
`to
`receive
`a
`cash
`amount
`equal
`to
`the
`product
`of
`(i)
`the
`number
`of
`Oclaro
`shares
`subject
`to
`the
`Oclaro
`SAR
`multiplied
`by
`(ii)
`the
`positive
`difference
`of
`(A)
`the
`cash
`equivalent
`value
`of
`the
`Merger
`Consideration
`less
`(B)
`the
`strike
`price
`of
`the
`Oclaro
`SAR,
`subject
`to
`applicable
`withholding
`taxes.
`
`Lumentum
`expects
`the
`total
`transaction
`consideration
`to
`be
`approximately
`$1.5
`billion,
`which
`will
`be
`funded
`by
`a
`combination
`of
`$500
`million
`in
`Lumentum
`common
`stock,
`$500
`million
`in
`new
`debt,
`and
`the
`remaining
`amount
`from
`the
`cash
`balances
`of
`the
`combined
`company.
`Lumentum
`and
`Oclaro
`have
`determined
`that
`it
`is
`likely
`that
`the
`transaction
`will
`be
`fully
`taxable
`to
`Oclaro
`stockholders,
`regardless
`of
`whether
`the
`second
`step
`merger
`occurs.
`Because
`the
`transaction
`will
`be
`reported
`as
`fully
`taxable
`regardless
`of
`whether
`the
`second
`step
`merger
`occurs,
`Lumentum
`has
`decided
`not
`to
`undertake
`the
`second
`step
`merger,
`and
`the
`transaction
`will
`not
`qualify
`as
`a
`tax-free
`reorganization.
`
`The
`foregoing
`description
`of
`the
`Merger
`Agreement
`and
`the
`Merger
`does
`not
`purport
`to
`be
`complete
`and
`is
`qualified
`in
`its
`entirety
`by
`reference
`to
`the
`Merger
`Agreement,
`a
`copy
`of
`which
`is
`filed
`as
`Exhibit
`2.1
`to
`Lumentum’s
`Current
`Report
`on
`Form
`8-K,
`filed
`with
`the
`Securities
`and
`Exchange
`Commission
`on
`March
`12,
`2018,
`and
`is
`incorporated
`herein
`by
`reference.
`
`Item
`2.03
`Creation
`of
`a
`Direct
`Financial
`Obligation
`or
`an
`Obligation
`under
`an
`Off-Balance
`Sheet
`Arrangement
`of
`a
`Registrant.
`The
`information
`set
`forth
`under
`Item
`1.01
`of
`this
`Current
`Report
`on
`Form
`8-K
`is
`incorporated
`herein
`by
`reference.
`
`Item
`5.02.
`Departure
`of
`Directors
`or
`Certain
`Officers;
`Election
`of
`Directors;
`Appointment
`of
`Certain
`Officers;
`Compensatory
`Arrangements
`of
`Certain
`Officers.
`Pursuant
`to
`the
`terms
`of
`the
`Merger
`Agreement,
`on
`December
`10,
`2018,
`the
`Board
`of
`Directors
`of
`Lumentum
`(the
`“Board”)
`appointed
`Ian
`Small
`to
`serve
`as
`a
`member
`of
`the
`Board,
`effective
`as
`of
`immediately
`after
`the
`Effective
`Time.
`Mr.
`Small
`will
`serve
`an
`initial
`term
`of
`office
`expiring
`at
`Lumentum’s
`2019
`annual
`meeting
`of
`stockholders
`and
`until
`his
`successor
`is
`duly
`elected
`and
`qualified.
`
`In
`accordance
`with
`Lumentum’s
`Outside
`Director
`Compensation
`Policy,
`the
`terms
`of
`which
`were
`described
`in
`Lumentum’s
`proxy
`statement
`for
`its
`2018
`annual
`meeting
`of
`stockholders,
`Mr.
`Small
`is
`entitled
`to
`cash
`and
`equity
`compensation
`for
`service
`on
`the
`Board.
`Mr.
`Small
`will
`also
`enter
`into
`Lumentum’s
`standard
`form
`of
`indemnification
`agreement,
`which
`has
`been
`previously
`filed
`with
`the
`Securities
`and
`Exchange
`Commission.
`
`Mr.
`Small
`was
`selected
`as
`a
`member
`of
`the
`Board
`in
`accordance
`with
`the
`terms
`of
`the
`Merger
`Agreement.
`There
`are
`no
`family
`relationships
`between
`Mr.
`Small
`and
`any
`director
`or
`executive
`officer
`of
`Lumentum
`and
`he
`has
`no
`direct
`or
`indirect
`material
`interest
`in
`any
`transaction
`required
`to
`be
`disclosed
`pursuant
`to
`Item
`404(a)
`of
`Regulation
`S-K.
`
`Item
`8.01.
`Other
`Events.
`On
`December
`10,
`2018,
`Lumentum
`issued
`a
`press
`release
`announcing
`the
`closing
`of
`the
`Merger,
`a
`copy
`of
`which
`is
`attached
`as
`Exhibit
`99.1
`and
`is
`incorporated
`herein
`by
`reference.
`
`Item
`9.01.
`Financial
`Statements
`and
`Exhibits.
`(a)
`Financial
`Statements
`of
`Business
`Acquired.
`
`The
`pro
`forma
`financial
`information
`required
`by
`this
`item
`will
`be
`filed
`by
`amendment
`to
`this
`Current
`Report
`on
`Form
`8-K
`no
`later
`than
`71
`calendar
`days
`after
`the
`date
`this
`Current
`Report
`on
`Form
`8-K
`is
`required
`to
`be
`filed.
`
`IPR2017-01881
`
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`Page 4 of 318
`
`

`

`(b)
`Pro
`Forma
`Financial
`Information.
`
`The
`pro
`forma
`financial
`information
`required
`by
`this
`item
`will
`be
`filed
`by
`amendment
`to
`this
`Current
`Report
`on
`Form
`8-K
`no
`later
`than
`71
`calendar
`days
`after
`the
`date
`this
`Current
`Report
`on
`Form
`8-K
`is
`required
`to
`be
`filed.
`(d)
`Exhibits
`
`
`Exhibit
`No.
`
`
`
`
`2.1
`
`Description
`Agreement
`and
`Plan
`of
`Merger,
`dated
`as
`of
`March
`
`11,
`2018,
`by
`and
`among
`Lumentum
`Holdings
`Inc.,
`Oclaro,
`Inc.,
`Prota
`Merger
`Sub,
`Inc.
`and
`Prota
`Merger,
`LLC
`(incorporated
`by
`reference
`to
`Exhibit
`2.1
`to
`Lumentum’s
`Current
`Report
`on
`Form
`8-K,
`filed
`with
`the
`Securities
`and
`Exchange
`Commission
`on
`March
`12,
`2018).
`Credit
`Agreement,
`dated
`as
`of
`December
`
`10,
`2018,
`by
`and
`among
`Lumentum
`Holdings
`Inc.,
`certain
`subsidiaries
`of
`Lumentum
`Holdings
`Inc.
`from
`time
`to
`time
`party
`thereto,
`as
`guarantor
`subsidiaries,
`the
`lenders
`from
`time
`to
`time
`party
`thereto,
`and
`Deutsche
`Bank
`AG
`New
`York
`Branch,
`as
`administrative
`agent
`and
`collateral
`agent.
`Press
`Release
`of
`Lumentum
`Holdings
`Inc.,
`dated
`December
`10,
`2018.
`
`
`
`
`
`
`
`
`
`
`
`
`10.1
`
`99.1
`
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`
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`
`

`

`Pursuant
`to
`the
`requirements
`of
`the
`Securities
`Exchange
`Act
`of
`1934,
`the
`Registrant
`has
`duly
`caused
`this
`report
`to
`be
`signed
`on
`its
`behalf
`by
`the
`undersigned
`hereunto
`duly
`authorized.
`
`
`Dated:
`December
`10,
`2018
`
`
` Lumentum
`Holdings
`Inc.
`
`SIGNATURES
`
`
` By:
`
`
`
`
`
`
` /s/
`Judy
`Hamel
`
` Judy
`Hamel
`
` Senior
`Vice
`President,
`General
`Counsel
`and
`Secretary
`
`IPR2017-01881
`
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`
`

`

`Exhibit
`10.1
`
`$500,000,000
`
`CREDIT
`AND
`GUARANTY
`AGREEMENT
`
`dated
`as
`of
`December
`10,
`2018
`
`by
`and
`among
`
`LUMENTUM
`HOLDINGS
`INC.,
`as
`Borrower,
`
`CERTAIN
`SUBSIDIARIES
`OF
`THE
`BORROWER
`FROM
`TIME
`TO
`TIME
`PARTY
`HERETO,
`as
`Guarantor
`Subsidiaries,
`
`The
`Lenders
`From
`Time
`to
`Time
`Party
`Hereto,
`
`and
`
`DEUTSCHE
`BANK
`AG
`NEW
`YORK
`BRANCH,
`as
`Administrative
`Agent
`and
`Collateral
`Agent
`
`
`
`
`DEUTSCHE
`BANK
`SECURITIES
`INC.,
`as
`Lead
`Arranger
`and
`Lead
`Book
`Running
`Manager
`
`
`
`
`IPR2017-01881
`
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`Page 7 of 318
`
`

`

`
`
`
`
`SECTION
`1.
`1.1
`1.2
`1.3
`1.4
`1.5
`SECTION
`2.
`2.1
`2.2
`2.3
`2.4
`2.5
`2.6
`2.7
`2.8
`2.9
`2.10
`2.11
`2.12
`2.13
`2.14
`2.15
`2.16
`2.17
`2.18
`2.19
`2.20
`2.21
`2.22
`2.23
`2.24
`2.25
`2.26
`SECTION
`3.
`3.1
`3.2
`SECTION
`4.
`4.1
`4.2
`4.3
`
`
`
`
`TABLE
`OF
`CONTENTS
`
`
`
`
`
`
` DEFINITIONS
`AND
`INTERPRETATION
`
` Definitions
`
` Accounting
`Terms
`
`
`Interpretation,
`etc.
`
` Certifications
`
` Limited
`Condition
`Acquisitions
`
` LOANS
`
` Term
`Loans
`
`
`[Reserved]
`
`
`[Reserved]
`
`
`[Reserved]
`
` Pro
`Rata
`Shares;
`Availability
`of
`Funds
`
` Use
`of
`Proceeds
`
` Evidence
`of
`Debt;
`Register;
`Disqualified
`Lender
`List;
`Term
`Loan
`Notes
`
`
`Interest
`on
`Loans
`
` Conversion/Continuation
`
` Default
`Interest
`
` Call
`Protection
`
` Scheduled
`Payments
`
` Voluntary
`Prepayments
`
` Mandatory
`Prepayments/Commitment
`Reductions
`
` Application
`of
`Prepayments/Reductions
`
` General
`Provisions
`Regarding
`Payments
`
` Ratable
`Sharing
`
` Making
`or
`Maintaining
`Eurodollar
`Rate
`Loans
`
`
`Increased
`Costs;
`Capital
`Adequacy
`
` Taxes;
`Withholding,
`etc.
`
` Obligation
`to
`Mitigate
`
`
`[Reserved]
`
` Removal
`or
`Replacement
`of
`a
`Lender
`
`
`Incremental
`Term
`Facilities
`
` Discounted
`Prepayments
`
` Credit
`Agreement
`Refinancing
`Indebtedness;
`Refinancing
`Amendments
`
` CONDITIONS
`PRECEDENT
`
` Closing
`Date
`
` Conditions
`to
`Each
`Credit
`Extension
`After
`the
`Closing
`Date
`
` REPRESENTATIONS
`AND
`WARRANTIES
`
` Organization;
`Requisite
`Power
`and
`Authority;
`Qualification
`
` Due
`Authorization
`
` No
`Conflict;
`Government
`Consents
`
`i
`
`
`
` Page
`
`
`
`
`
`
`2
`
`
`
`
`
`
`2
`
`
`
`
`
` 59
`
`
`
`
`
` 60
`
`
`
`
`
` 60
`
`
`
`
`
` 60
`
`
`
`
`
` 61
`
`
`
`
`
` 61
`
`
`
`
`
` 61
`
`
`
`
`
` 61
`
`
`
`
`
` 61
`
`
`
`
`
` 61
`
`
`
`
`
` 62
`
`
`
`
`
` 62
`
`
`
`
`
` 63
`
`
`
`
`
` 65
`
`
`
`
`
` 65
`
`
`
`
`
` 65
`
`
`
`
`
` 66
`
`
`
`
`
` 67
`
`
`
`
`
` 67
`
`
`
`
`
` 69
`
`
`
`
`
` 72
`
`
`
`
`
` 73
`
`
`
`
`
` 73
`
`
`
`
`
` 75
`
`
`
`
`
` 77
`
`
`
`
`
` 81
`
`
`
`
`
` 81
`
`
`
`
`
` 81
`
`
`
`
`
` 82
`
`
`
`
`
` 85
`
`
`
`
`
` 87
`
`
`
`
`
` 88
`
`
`
`
`
` 88
`
`
`
`
`
` 91
`
`
`
`
`
` 92
`
`
`
`
`
` 92
`
`
`
`
`
` 92
`
`
`
`
`
` 92
`
`
`IPR2017-01881
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`PETITIONER EXHIBIT 1044
`Page 8 of 318
`
`

`

`4.4
`4.5
`4.6
`4.7
`4.8
`4.9
`4.10
`4.11
`4.12
`4.13
`4.14
`4.15
`4.16
`4.17
`4.18
`4.19
`4.20
`4.21
`4.22
`SECTION
`5.
`5.1
`5.2
`5.3
`5.4
`5.5
`5.6
`5.7
`5.8
`5.9
`5.10
`5.11
`5.12
`5.13
`5.14
`5.15
`5.16
`5.17
`SECTION
`6.
`6.1
`6.2
`6.3
`6.4
`6.5
`6.6
`6.7
`6.8
`6.9
`6.10
`
`
`
`
`
` Binding
`Obligation
`
` Historical
`Financial
`Statements
`
` Projections
`
` No
`Material
`Adverse
`Effect
`
` Adverse
`Proceedings
`
` Payment
`of
`Taxes
`
` Ownership
`of
`Material
`Property
`
` Environmental
`Matters
`
` Governmental
`Regulation
`
` Margin
`Stock
`
` Employee
`Matters
`
` Employee
`Benefit
`Plans
`
` Solvency
`
` Compliance
`with
`Laws
`
` Disclosure
`
` Perfection
`of
`Security
`Interests
`in
`the
`Collateral
`
` Use
`of
`Proceeds
`
` No
`Default
`
` Insurance
`
` AFFIRMATIVE
`COVENANTS
`
` Financial
`Statements;
`Notices
`and
`Other
`Reports
`
` Existence
`
` Payment
`of
`Taxes
`and
`Claims
`
` Maintenance
`of
`Properties
`
` Insurance
`
` Books
`and
`Records;
`Inspections
`
` Compliance
`with
`Laws
`
` Anti-Terrorism
`Laws
`and
`Anti-Corruption
`Laws
`
` [Reserved]
`
` Additional
`Subsidiaries
`
` Material
`Owned
`Real
`Estate
`Assets
`
` Further
`Assurances
`
` Designation
`of
`Subsidiaries
`and
`Unrestricted
`Subsidiaries
`
` Quarterly
`Lender
`Calls
`
` Maintenance
`of
`Ratings
`
` Use
`of
`Proceeds
`
` Post-Closing
`Matters
`
` NEGATIVE
`COVENANTS
`
` Indebtedness
`
` Liens
`
` No
`Further
`Negative
`Pledges
`
` Restricted
`Junior
`Payments
`
` Restrictions
`on
`Subsidiary
`Distributions
`
` Investments
`
` [Reserved]
`
` Fundamental
`Changes;
`Disposition
`of
`Assets
`
` Transactions
`with
`Affiliates
`
` Conduct
`of
`Business
`
`ii
`
`
`
`
` 92
`
`
`
`
` 93
`
`
`
`
` 93
`
`
`
`
` 93
`
`
`
`
` 93
`
`
`
`
` 93
`
`
`
`
` 94
`
`
`
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` 94
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` 95
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` 95
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` 95
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`
`
` 95
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` 96
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` 96
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` 97
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` 97
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` 97
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` 97
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` 97
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` 98
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`101
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`101
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`
`101
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`101
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`102
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`102
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`103
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`104
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`105
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`105
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`105
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`105
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`110
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`114
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`115
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`118
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`119
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`123
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`123
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`124
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`IPR2017-01881
`
`PETITIONER EXHIBIT 1044
`Page 9 of 318
`
`

`

`6.11
`6.12
`6.13
`SECTION
`7.
`7.1
`7.2
`7.3
`7.4
`7.5
`7.6
`7.7
`7.8
`7.9
`7.10
`7.11
`7.12
`7.13
`7.14
`SECTION
`8.
`8.1
`8.2
`8.3
`SECTION
`9.
`9.1
`9.2
`9.3
`9.4
`9.5
`9.6
`9.7
`9.8
`9.9
`9.10
`9.11
`9.12
`9.13
`9.14
`SECTION
`10.
`10.1
`10.2
`10.3
`10.4
`10.5
`
`
`
`
`
` Rate
`Contracts
`
` Certain
`Amendments
`or
`Waivers
`
` Fiscal
`Year
`
` GUARANTY
`
` Guaranty
`of
`the
`Obligations
`
` Contribution
`by
`Guarantors
`
` Liability
`of
`Guarantors
`Absolute
`
` Waivers
`by
`Guarantors
`
` Guarantors’
`Rights
`of
`Subrogation,
`Contribution,
`etc.
`
` Subordination
`of
`Other
`Obligations
`
` Continuing
`Guaranty
`
` Authority
`of
`Guarantors
`or
`the
`Borrower
`
` Financial
`Condition
`of
`the
`Borrower
`
` Bankruptcy,
`etc.
`
` Discharge
`of
`Guaranty
`upon
`Sale
`of
`Guarantor
`
` Instrument
`for
`Payment
`of
`Money
`
` General
`Limitation
`on
`Guarantee
`Obligations
`
` Keepwell
`
` EVENTS
`OF
`DEFAULT
`
` Events
`of
`Default
`
` Remedies
`upon
`an
`Event
`of
`Default
`
` Application
`of
`Proceeds
`
` AGENTS
`
` Appointment
`and
`Duties
`
` Binding
`Effect
`
` Use
`of
`Discretion
`
` Delegation
`of
`Rights
`and
`Duties
`
` Reliance
`and
`Liability
`
` Agent
`Individually
`
` Lender
`Credit
`Decision
`
` Expenses;
`Indemnities;
`Withholding
`
` Resignation
`of
`Administrative
`Agent
`or
`Collateral
`Agent
`
` Release
`of
`Collateral
`or
`Guarantors
`
` [Reserved]
`
` Lead
`Arranger
`and
`Lead
`Bookrunner
`
` Administrative
`Agent
`May
`File
`Bankruptcy
`Disclosure
`and
`Proofs
`of
`Claim
`
` Certain
`ERISA
`Matters
`
` MISCELLANEOUS
`
` Notices
`
` Expenses
`
` Indemnity;
`Certain
`Waivers
`
` Set-Off
`
` Amendments
`and
`Waivers
`
`iii
`
`
`
`
`125
`
`
`
`
`126
`
`
`
`
`126
`
`
`
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`126
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`
`126
`
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`126
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`127
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`
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`128
`
`
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`129
`
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`130
`
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`130
`
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`130
`
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`130
`
`
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`130
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`131
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`131
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`
`131
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`
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`
`132
`
`
`
`
`132
`
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`
`132
`
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`
`
`134
`
`
`
`
`135
`
`
`
`
`136
`
`
`
`
`136
`
`
`
`
`137
`
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`
`
`137
`
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`
`138
`
`
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`
`138
`
`
`
`
`140
`
`
`
`
`140
`
`
`
`
`141
`
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`
`
`142
`
`
`
`
`143
`
`
`
`
`145
`
`
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`
`145
`
`
`
`
`145
`
`
`
`
`146
`
`
`
`
`147
`
`
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`
`147
`
`
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`
`149
`
`
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`150
`
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`
`151
`
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`
`
`152
`
`
`IPR2017-01881
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`PETITIONER EXHIBIT 1044
`Page 10 of 318
`
`

`

`10.6
`10.7
`10.8
`10.9
`10.10
`10.11
`10.12
`10.13
`10.14
`10.15
`10.16
`10.17
`10.18
`10.19
`10.20
`10.21
`10.22
`10.23
`10.24
`10.25
`
`
` Successors
`and
`Assigns;
`Participations
`
` Independence
`of
`Covenants;
`Interpretation
`
` Survival
`of
`Representations,
`Warranties
`and
`Agreements
`
` No
`Waiver;
`Remedies
`Cumulative
`
` Marshalling;
`Payments
`Set
`Aside
`
` Severability
`
` Obligations
`Several;
`Independent
`Nature
`of
`the
`Lenders’
`Rights
`
` Headings
`
` Applicable
`Law
`
` Consent
`to
`Jurisdiction
`
` WAIVER
`OF
`JURY
`TRIAL
`
` Confidentiality;
`Tombstones;
`Etc.
`
` Usury
`Savings
`Clause
`
` Counterparts
`
` No
`Strict
`Construction
`
` Effectiveness;
`Entire
`Agreement
`
` No
`Fiduciary
`Duty
`
` No
`Third
`Parties
`Benefit
`
` PATRIOT
`Act
`
` Acknowledgement
`and
`Consent
`to
`Bail-In
`of
`EEA
`Financial
`Institutions
`
`iv
`
`
`
`
`
`
`
`158
`
`
`
`
`163
`
`
`
`
`163
`
`
`
`
`163
`
`
`
`
`163
`
`
`
`
`164
`
`
`
`
`164
`
`
`
`
`164
`
`
`
`
`164
`
`
`
`
`164
`
`
`
`
`165
`
`
`
`
`165
`
`
`
`
`166
`
`
`
`
`166
`
`
`
`
`166
`
`
`
`
`166
`
`
`
`
`167
`
`
`
`
`167
`
`
`
`
`167
`
`
`
`
`168
`
`
`IPR2017-01881
`
`PETITIONER EXHIBIT 1044
`Page 11 of 318
`
`

`

`Appendices
`
`
`Appendix
`A
`Appendix
`B
`
`Schedules
`
`
`Schedule
`5.17
`
`Exhibits
`
`
`Exhibit
`A-1
`Exhibit
`A-2
`Exhibit
`B
`Exhibit
`C
`Exhibit
`D
`Exhibit
`E
`Exhibit
`F-1
`Exhibit
`F-2
`Exhibit
`F-3
`Exhibit
`F-4
`Exhibit
`G
`Exhibit
`H
`Exhibit
`I
`Exhibit
`J
`Exhibit
`K
`
`
`
`
` Initial
`Term
`Loan
`Commitments
`
` Notice
`Addresses
`
`
` Post-Closing
`Matters
`
`
` Form
`of
`Funding
`Notice
`
` Form
`of
`Conversion/Continuation
`Notice
`
` Form
`of
`Term
`Loan
`Note
`
` Form
`of
`Compliance
`Certificate
`
` Form
`of
`Solvency
`Certificate
`
` Form
`of
`Assignment
`and
`Assumption
`
` Form
`of
`U.S.
`Tax
`Compliance
`Certificate
`(Non-U.S.
`Lenders;
`not
`partnerships)
`
` Form
`of
`U.S.
`Tax
`Compliance
`Certificate
`(Non-U.S.
`participants;
`not
`partnerships)
`
` Form
`of
`U.S.
`Tax
`Compliance
`Certificate
`(Non-U.S.
`participants;
`partnerships)
`
` Form
`of
`U.S.
`Tax
`Compliance
`Certificate
`(Non-U.S.
`Lenders;
`partnerships)
`
` Form
`of
`Closing
`Date
`Certificate
`
` Form
`of
`Counterpart
`Agreement
`
` Form
`of
`Pledge
`and
`Security
`Agreement
`
` Form
`of
`Intercompany
`Subordination
`Agreement
`
` Form
`of
`Perfection
`Certificate
`
`v
`
`IPR2017-01881
`
`PETITIONER EXHIBIT 1044
`Page 12 of 318
`
`

`

`CREDIT
`AND
`GUARANTY
`AGREEMENT
`
`This
`CREDIT
`AND
`GUARANTY
`AGREEMENT
`,
`dated
`as
`of
`December
`10,
`2018
`(this
`“
`Agreement
`”),
`is
`entered
`into
`by
`and
`among
`LUMENTUM
`HOLDINGS
`INC.
`,
`a
`Delaware
`corporation
`(the
`“
`Borrower
`”),
`certain
`Subsidiaries
`of
`the
`Borrower
`from
`time
`to
`time
`party
`hereto,
`as
`Guarantor
`Subsidiaries,
`the
`Lenders
`from
`time
`to
`time
`party
`hereto,
`and
`DEUTSCHE
`BANK
`AG
`NEW
`YORK
`BRANCH
`,
`as
`administrative
`agent
`(together
`with
`its
`permitted
`successors
`in
`such
`capacity,
`the
`“
`Administrative
`Agent
`”)
`and
`as
`collateral
`agent
`(together
`with
`its
`permitted
`successors
`in
`such
`capacity,
`the
`“
`Collateral
`Agent
`”).
`
`RECITALS:
`
`WHEREAS,
`capitalized
`terms
`used
`in
`these
`recitals
`will
`have
`the
`respective
`meanings
`set
`forth
`for
`such
`terms
`in
`Section
`1.1;
`
`WHEREAS,
`pursuant
`to
`the
`transactions
`undertaken
`in
`connection
`with
`that
`certain
`Agreement
`and
`Plan
`of
`Merger,
`dated
`as
`of
`March
`11,
`2018,
`by
`and
`among
`the
`Borrower,
`Prota
`Merger
`Sub,
`Inc.
`a
`Delaware
`corporation
`(“
`Merger
`Sub
`”),
`Prota
`Merger,
`LLC,
`a
`Delaware
`limited
`liability
`company
`and
`Oclaro,
`Inc.,
`a
`Delaware
`corporation
`(the
`“
`Closing
`Date
`Target
`”
`and,
`together
`with
`its
`subsidiaries,
`the
`“
`Acquired
`Business
`”)
`(such
`agreement,
`including
`all
`exhibits,
`schedules
`and
`disclosure
`schedules
`thereto,
`as
`amended,
`restated,
`supplemented
`or
`otherwise
`modified
`prior
`to
`the
`Closing
`Date,
`the
`“
`Merger
`Agreement
`”),
`pursuant
`to
`which
`the
`Borrower
`will
`acquire
`100%
`of
`the
`Capital
`Stock
`of
`the
`Closing
`Date
`Target
`by
`way
`of
`a
`merger
`of
`the
`Merger
`Sub
`with
`and
`into
`the
`Closing
`Date
`Target,
`with
`the
`Closing
`Date
`Target
`continuing
`as
`the
`surviving
`entity
`of
`such
`merger
`and
`a
`wholly-owned
`subsidiary
`of
`the
`Borrower
`(the
`“
`Merger
`”)
`(the
`transactions
`described
`in
`this
`paragraph,
`collectively,
`the
`“
`Acquisition
`”);
`
`WHEREAS,
`the
`Lenders
`have
`agreed
`to
`fund
`the
`Initial
`Term
`Loans
`to
`the
`Borrower
`in
`an
`aggregate
`principal
`amount
`of
`$500,000,000;
`
`WHEREAS,
`the
`proceeds
`of
`the
`Initial
`Term
`Loans
`will
`be
`used
`on
`the
`Closing
`Date,
`together
`with
`the
`issuance
`of
`common
`stock
`of
`the
`Borrower
`and
`unrestricted
`cash
`on
`hand
`of
`the
`Borrower
`and
`the
`Acquired
`Business,
`to
`(A)
`consummate
`the
`Acquisition
`and
`the
`other
`Transactions,
`and
`(B)
`pay
`the
`Transaction
`Costs;
`
`WHEREAS,
`the
`Borrower
`has
`agreed
`to
`secure
`all
`of
`its
`Obligations
`by
`granting
`to
`the
`Collateral
`Agent,
`for
`the
`benefit
`of
`the
`Secured
`Parties,
`a
`Lien
`on
`substantially
`all
`of
`its
`assets
`subject
`to
`certain
`exceptions
`set
`forth
`herein
`and
`in
`the
`Pledge
`and
`Security
`Agreement;
`and
`
`WHEREAS,
`the
`Guarantor
`Subsidiaries
`have
`agreed
`to
`guarantee
`the
`obligations
`of
`the
`Borrower
`hereunder
`and
`to
`secure
`their
`respective
`Obligations
`by
`granting
`to
`the
`Collateral
`Agent,
`for
`the
`benefit
`of
`the
`Secured
`Parties,
`a
`Lien
`on
`substantially
`all
`of
`their
`respective
`assets
`subject
`to
`certain
`exceptions
`as
`set
`forth
`herein
`and
`in
`the
`Pledge
`and
`Security
`Agreement;
`
`NOW,
`THEREFORE,
`in
`consideration
`of
`the
`premises
`and
`the
`agreements,
`provisions
`and
`covenants
`herein
`contained,
`the
`parties
`hereto
`agree
`as
`follows:
`
`IPR2017-01881
`
`PETITIONER EXHIBIT 1044
`Page 13 of 318
`
`

`

`SECTION
`1.
`DEFINITIONS
`AND
`INTERPRETATION
`1.1
`Definitions
`.
`The
`following
`terms
`used
`herein,
`including
`in
`the
`preamble,
`recitals,
`exhibits
`and
`schedules
`hereto,
`will
`have
`the
`following
`meanings:
`“
`Acceptable
`Discount
`Price
`”
`as
`defined
`in
`Section
`2.25(b).
`
`“
`Acquired
`Business
`”
`as
`defined
`in
`the
`recitals
`hereto.
`
`“
`Acquisition
`”
`as
`defined
`in
`the
`recitals
`hereto.
`
`“
`Additional
`Lender
`”
`means,
`at
`any
`time,
`any
`bank,
`other
`financial
`institution
`or
`institutional
`investor
`that,
`in
`any
`case,
`is
`not
`an
`existing
`Lender
`and
`that
`agrees
`to
`provide
`any
`portion
`of
`any
`(a)
`Incremental
`Term
`Loan
`in
`accordance
`with
`Section
`2.24
`or
`(b)
`Credit
`Agreement
`Refinancing
`Indebtedness
`pursuant
`to
`a
`Refinancing
`Amendment
`in
`accordance
`with
`Section
`2.26;
`provided
`that
`each
`Additional
`Lender
`(other
`than
`any
`Person
`that
`is
`a
`Lender,
`an
`Affiliate
`of
`a
`Lender
`or
`an
`Approved
`Fund
`of
`a
`Lender
`at
`such
`time)
`will
`be
`subject
`to
`the
`approval
`of
`the
`Administrative
`Agent
`(such
`approval
`not
`to
`be
`unreasonably
`withheld,
`conditioned
`or
`delayed),
`in
`each
`case
`to
`the
`extent
`any
`such
`consent
`would
`be
`required
`from
`the
`Administrative
`Agent
`under
`Section
`10.6(c)
`for
`an
`assignment
`of
`Term
`Loans
`to
`such
`Additional
`Lender.
`
`“
`Administrative
`Agent
`”
`as
`defined
`in
`the
`preamble
`hereto.
`
`“
`Adverse
`Proceeding
`”
`means
`any
`action,
`suit,
`proceeding
`(whether
`administrative,
`judicial
`or
`otherwise),
`governmental
`investigation
`or
`arbitration
`(whether
`or
`not
`purportedly
`on
`behalf
`of
`the
`Borrower
`or
`any
`Subsidiary)
`at
`law
`or
`in
`equity,
`or
`before
`or
`by
`any
`Governmental
`Authority,
`domestic
`or
`foreign
`(including
`any
`Environmental
`Claims),
`whether
`pending
`or,
`to
`the
`knowledge
`of
`any
`Executive
`Officer
`of
`the
`Borrower,
`threatened
`against
`or
`affecting
`the
`Borrower
`or
`any
`Subsidiary
`or
`any
`property
`of
`the
`Borrower
`or
`any
`Subsidiary.
`
`“
`Affected
`Lender
`”
`as
`defined
`in
`Section
`2.18(c).
`
`“
`Affected
`Loans
`”
`as
`defined
`in
`Section
`2.18(c).
`
`“
`Affiliate
`”
`means,
`as
`applied
`to
`any
`Person,
`any
`other
`Person
`directly
`or
`indirectly
`controlling,
`controlled
`by,
`or
`under
`common
`control
`with,
`that
`Person.
`For
`the
`purposes
`of
`this
`definition,
`“control”
`(including,
`with
`correlative
`meanings,
`the
`terms
`“controlling,”
`“controlled
`by”
`and
`“under
`common
`control
`with”),
`as
`applied
`to
`any
`Person,
`means
`the
`possession,
`directly
`or
`indirectly,
`of
`the
`power
`to
`direct
`or
`cause
`the
`direction
`of
`the
`management
`and
`policies
`of
`that
`Person,
`whether
`through
`the
`ownership
`of
`voting
`securities
`or
`by
`contract
`or
`otherwise.
`For
`the
`avoidance
`of
`doubt,
`none
`of
`the
`Agents
`or
`their
`respective
`lender
`affiliates
`shall
`be
`deemed
`to
`be
`an
`Affiliate
`of
`the
`Borrower,
`any
`Subsidiary
`or
`any
`Unrestricted
`Subsidiary.
`
`“
`Agency
`Fee
`Letter
`”
`means
`that
`certain
`Fee
`Letter,
`dated
`March
`11,
`2018,
`by
`and
`among
`the
`Borrower,
`DBNY
`and
`DBSI.
`
`“
`Agents
`”
`means,
`collectively,
`the
`Administrative
`Agent,
`the
`Collateral
`Agent,
`the
`Lead
`Bookrunner
`and
`the
`Lead
`Arranger.
`
`“
`Aggregate
`Amounts
`Due
`”
`as
`defined
`in
`Section
`2.17.
`
`“
`Aggregate
`Payments
`”
`as
`defined
`in
`Section
`7.2.
`
`“
`Agreement
`”
`as
`defined
`in
`the
`preamble
`hereto.
`
`
`
`
`2
`
`IPR2017-01881
`
`PETITIONER EXHIBIT 1044
`Page 14 of 318
`
`

`

`“
`All-In
`Yield
`”
`means,
`as
`to
`any
`Indebtedness
`or
`Term
`Loans
`of
`any
`Class,
`the
`yield
`thereof,
`whether
`in
`the
`form
`of
`interest
`rate,
`margin,
`original
`issue
`discount,
`upfront
`fees,
`a
`Eurodollar
`Rate
`floor
`or
`Base
`Rate
`floor
`to
`the
`extent
`greater
`than
`0.00%
`per
`annum
`or
`0.00%
`per
`annum,
`respectively
`(with
`such
`increased
`amount
`being
`equated
`to
`interest
`margins
`for
`purposes
`of
`determining
`any
`increase
`to
`the
`Applicable
`Margin);
`provided
`that
`(i)
`original
`issue
`discount
`and
`upfront
`fees
`will
`be
`equated
`to
`interest
`rate
`assuming
`a
`4-year
`life
`to
`maturity
`(or,
`if
`less,
`the
`stated
`life
`to
`maturity
`at
`the
`time
`of
`its
`incurrence
`of
`the
`applicable
`Indebtedness);
`(ii)
`that
`“All-In
`Yield”
`will
`not
`include
`arrangement
`fees,
`structuring
`fees,
`underwriting
`fees,
`commitment
`fees,
`ticking
`fees,
`consent
`or
`amendment
`fees,
`advisory
`fees,
`closing
`fees
`or
`any
`other
`similar
`fees
`payable
`to
`the
`Lead
`Arranger
`in
`connection
`with
`the
`Initial
`Term
`Loans
`or
`to
`one
`or
`more
`arrangers
`or
`lenders
`(or
`their
`respective
`affiliates)
`in
`connection
`with
`any
`other
`applicable
`Indebtedness
`or
`commitments
`in
`respect
`thereof
`(regardless
`of
`how
`such
`fees
`are
`computed);
`and
`(iii)
`if
`a
`Eurodollar
`Rate
`floor
`or
`Base
`Rate
`floor
`for
`the
`applicable
`Indebtedness
`or
`commitments
`in
`respect
`thereof
`being
`incurred
`is
`greater
`than
`t