FairPoint Communications 2004 Annual Report Download - page 305

“Permitted Letters of Credit” shall mean (i) each standby letter of credit issued by a financial institution acceptable to the Administrative
Agent for the account of the Borrower or any of its Subsidiaries in support of obligations arising in the ordinary course of business of the Borrower or such
Subsidiary and (ii) each trade letter of credit issued by a financial institution acceptable to the Administrative Agent for the account of the Borrower or any of
its Subsidiaries and for the benefit of sellers of goods to the Borrower or such Subsidiary in support of commercial transactions of the Borrower or such
Subsidiary in the ordinary course of business.
“Permitted Liens” shall mean Liens described in clauses (a) through (o), inclusive, of Section 7.03.
“Permitted MJD Capital Debt” shall mean Indebtedness of MJD Capital under Capital Leases and purchase money mortgages in respect of
equipment acquired by MJD Capital to lease or sublease to subsidiaries of the Borrower, provided that the maximum amount of such Indebtedness incurred in
any fiscal year shall not exceed $2.5 million.
“Permitted Refinancing Indebtedness” shall mean any Indebtedness of the Borrower and/or any Subsidiary of the Borrower issued or given
in exchange for, or the proceeds of which are used to, extend, refinance, renew, replace, substitute or refund any Indebtedness of such Person permitted
pursuant to Sections 7.04(g), (i), (j) or (n) (other than the Existing Seller/Opco Notes not refinanced on the Initial Borrowing Date) or any Indebtedness of such
Person issued to so extend, refinance, renew, replace, substitute or refund any such Indebtedness, so long as (a) such Indebtedness has a weighted average life
to maturity greater than or equal to the weighted average life to maturity of the Indebtedness being refinanced, (b) such refinancing or renewal does not (i)
increase the amount of such Indebtedness outstanding immediately prior to such refinancing or renewal or (ii) add guarantors, obligors or security from that
which applied to such Indebtedness being refinanced or renewed, (c) such refinancing or renewal Indebtedness has substantially the same (or, from the
perspective of the Lenders, more favorable) subordination provisions, if any, as applied to the Indebtedness being renewed or refinanced, and (d) all other
terms of such refinancing or renewal (including, without limitation, with respect to the amortization schedules, redemption provisions, maturities, covenants,
defaults and remedies), taken as a whole, are not less favorable to the respective borrower than those previously existing with respect to the Indebtedness being
refinancing or renewed.
“Permitted Senior Subordinated Notes” shall mean any Indebtedness of the Borrower evidenced by subordinated notes and incurred
pursuant to one or more issuances of such subordinated notes, all of terms and conditions (including, without limitation, with respect to interest rate,
amortization, redemption provisions, maturities, covenants, defaults, remedies, guaranties and subordination provisions) which are on market terms for a
public offering of subordinated notes or for a private placement of subordinated notes under Rule 144A of the Securities Act and are otherwise reasonably
satisfactory to the Agents, as such Indebtedness may be amended, modified and/or supplemented from time to time in accordance with the terms hereof and
thereof; provided, that in any event, unless the Required Lenders otherwise expressly consent in writing prior to the issuance thereof, (i) no such Indebtedness
shall be secured by any asset of the Borrower or any of its Subsidiaries, (ii) no such Indebtedness shall be guaranteed by any Person other than a Subsidiary
Guarantor, (iii) no such Indebtedness shall be subject to scheduled amortization or have a final maturity, in either case prior to the date occurring one
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