Credit and Guaranty Agreement [Amended and Restated] (2001)Full Document 

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                              AMENDED AND RESTATED

                          CREDIT AND GUARANTY AGREEMENT

                         dated as of September 30, 2001

                                      among

                           EQUINIX OPERATING CO., INC.
                                   as Borrower

                                       and

                 EQUINIX, INC. AND CERTAIN OF ITS SUBSIDIARIES,
                                 as Guarantors,

                                VARIOUS LENDERS,

                       GOLDMAN SACHS CREDIT PARTNERS L.P.,
        as Joint Lead Arranger, Joint Book Runner and Syndication Agent,

                           SALOMON SMITH BARNEY INC.,
                  as Joint Lead Arranger and Joint Book Runner,

                               CITICORP USA, INC.,
                            as Administrative Agent,

                                       and

                        CIT LENDING SERVICES CORPORATION

                              as Collateral Agent,

            --------------------------------------------------------

                  $125,000,000 SENIOR SECURED CREDIT FACILITIES

            --------------------------------------------------------



                                TABLE OF CONTENTS



                                                                            Page

                                                                         
SECTION 1. DEFINITIONS AND INTERPRETATION ...............................      2

   1.1   Definitions ....................................................      2
   1.2   Accounting Terms ...............................................     32
   1.3   Interpretation, etc ............................................     33

SECTION 2. LOANS ........................................................     33

   2.1   Confirmation and Redesignation of Existing Loans as
         Tranche A Term Loans ...........................................     33
   2.2   Tranche B Term Loans ...........................................     34
   2.3   Pro Rata Shares ................................................     35
   2.4   Use of Proceeds ................................................     35
   2.5   Evidence of Debt; Register; Lenders' Books and Records;
         Notes ..........................................................     36

   2.6   Interest on Loans ..............................................     36
   2.7   Conversion/Continuation ........................................     38
   2.8   Default Interest ...............................................     38
   2.9   Fees ...........................................................     39
   2.10  Scheduled Payments .............................................     39
   2.11  Voluntary Prepayments/Commitment Reductions ....................     40
   2.12  Mandatory Prepayments/Commitment Reductions ....................     41
   2.13  Application of Prepayments/Reductions ..........................     42
   2.14  Allocation of Certain Payments and Proceeds ....................     42
   2.15  General Provisions Regarding Payments ..........................     42
   2.16  Ratable Sharing ................................................     43
   2.17  Making or Maintaining Eurodollar Rate Loans ....................     44
   2.18  Increased Costs; Capital Adequacy ..............................     46
   2.19  Taxes; Withholding, etc ........................................     47
   2.20  Obligation to Mitigate .........................................     49
   2.21  Defaulting Lenders .............................................     50
   2.22  Removal or Replacement of a Lender .............................     50

SECTION 3. CONDITIONS PRECEDENT .........................................     51

   3.1   Conditions to Effectiveness ....................................     51
   3.2   Conditions to Each Credit Extension ............................     56

SECTION 4. REPRESENTATIONS AND WARRANTIES ...............................     56

   4.1   Organization; Requisite Power and Authority; Qualification .....     57
   4.2   Capital Stock and Ownership ....................................     57
   4.3   Due Authorization ..............................................     57
   4.4   No Conflict ....................................................     57
   4.5   Governmental Consents ..........................................     57
   4.6   Binding Obligation .............................................     58
   4.7   Effective Date Financial Statements ............................     58
   4.8   Projections ....................................................     58






                                                                           
   4.9   No Material Adverse Change .....................................     58
   4.10  No Restricted Junior Payments ..................................     58
   4.11  Adverse Proceedings, etc .......................................     58
   4.12  Payment of Taxes ...............................................     59
   4.13  Properties .....................................................     59
   4.14  Collateral .....................................................     60
   4.15  Environmental Matters ..........................................     60
   4.16  No Defaults ....................................................     61
   4.17  Material Contracts .............................................     61
   4.18  Governmental Regulation ........................................     61
   4.19  Margin Stock ...................................................     61
   4.20  Employee Matters ...............................................     62
   4.21  Employee Benefit Plans .........................................     62
   4.22  Solvency .......................................................     62
   4.23  Compliance with Statutes, etc ..................................     63
   4.24  Disclosure .....................................................     63

SECTION 5AFFIRMATIVE COVENANTS ..........................................     63

   5.1   Financial Statements and Other Reports .........................     63
   5.2   Existence ......................................................     68
   5.3   Payment of Taxes and Claims ....................................     68
   5.4   Maintenance of Properties ......................................     68
   5.5   Insurance ......................................................     68
   5.6   Books and Records; Inspections; Lenders Meetings ...............     69
   5.7   Compliance with Laws ...........................................     70
   5.8   Environmental ..................................................     70
   5.9   Subsidiaries ...................................................     71
   5.10  Post Closing Covenants With Respect to Real Estate Assets ......     72
   5.11  Interest Rate Protection .......................................     72
   5.12  Post Closing Covenants With Respect to Permitted Equipment
         Financing Collateral ...........................................     73
   5.13  Further Assurances .............................................     73
   5.14  Notice of Default Under Lease ..................................     73
   5.15  Certain Post Effective Date Obligations ........................     73

SECTION 6NEGATIVE COVENANTS .............................................     73

   6.1   Indebtedness ...................................................     74
   6.2   Liens ..........................................................     75
   6.3   No Further Negative Pledges ....................................     77
   6.4   Restricted Junior Payments; Restrictions on Investments in
         Unrestricted Subsidiaries; Restricted Rental and Upkeep
         Payments .......................................................     77
   6.5   Investments ....................................................     78
   6.6   Stage 1 Financial Covenants ....................................     79
   6.7   Stage 2 Financial Covenants ....................................     80
   6.8   Maximum Consolidated Capital Expenditures ......................     81
   6.9   Fundamental Changes; Disposition of Assets; Acquisitions .......     81
   6.10  Disposal of Subsidiary Interests ...............................     82


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    6.11  Sales and Lease-Backs ........................................      82
    6.12  Sale and Discount of Receivables .............................      83
    6.13  Transactions with Shareholders and Affiliates ................      83
    6.14  Conduct of Business ..........................................      83
    6.15  Permitted IBX Facilities .....................................      83
    6.16  Amendments or Waivers of Certain Documents ...................      83
    6.17  Fiscal Year ..................................................      84
    6.18  Unrestricted Subsidiaries ....................................      84
    6.19  Acquisition and Ownership of Assets by Company ...............      84
    6.20  Company Subsidiaries .........................................      84

SECTION 7. GUARANTY ....................................................      84

    7.1   Guaranty of the Obligations ..................................      84
    7.2   Contribution by Guarantors ...................................      85
    7.3   Payment by Guarantors ........................................      85
    7.4   Liability of Guarantors Absolute .............................      86
    7.5   Waivers by Guarantors ........................................      88
    7.6   Guarantors' Rights of Subrogation, Contribution, etc .........      88
    7.7   Subordination of Other Obligations ...........................      89
    7.8   Continuing Guaranty ..........................................      89
    7.9   Authority of Guarantors or Borrower ..........................      89
    7.10  Financial Condition of Borrower ..............................      89
    7.11  Bankruptcy, etc ..............................................      90
    7.12  Notice of Events .............................................      90
    7.13  Discharge of Guaranty Upon Sale of Guarantor .................      91

SECTION 8. EVENTS OF DEFAULT ...........................................      91

    8.1   Events of Default ............................................      91

SECTION 9. AGENTS ......................................................      94

    9.1   Appointment of Agents ........................................      94
    9.2   Powers and Duties ............................................      94
    9.3   General Immunity .............................................      95
    9.4   Agents Entitled to Act as Lender .............................      95
    9.5   Lenders' Representations, Warranties and Acknowledgment ......      96
    9.6   Right to Indemnity ...........................................      96
    9.7   Successor Administrative Agent and Collateral Agent ..........      96
    9.8   Collateral Documents and Guaranty ............................      97

SECTION 10. MISCELLANEOUS ..............................................      98

   10.1   Notices ......................................................      98
   10.2   Expenses .....................................................      98
   10.3   Indemnity ....................................................      99
   10.4   Set-Off ......................................................      99
   10.5   Amendments and Waivers .......................................     100
   10.6   Successors and Assigns; Participations .......................     102
   10.7   Independence of Covenants ....................................     105


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   10.8  Survival of Representations, Warranties and Agreements .........    105
   10.9  No Waiver; Remedies Cumulative .................................    105
   10.10 Marshalling; Payments Set Aside ................................    105
   10.11 Severability ...................................................    106
   10.12 Entire Agreement ...............................................    106
   10.3  Obligations Several; Independent Nature of Lenders' Rights .....    106
   10.14 Headings .......................................................    106
   10.15 APPLICABLE LAW .................................................    106
   10.16 CONSENT TO JURISDICTION ........................................    106
   10.17 WAIVER OF JURY TRIAL ...........................................    107
   10.18 Confidentiality ................................................    107
   10.19 Usury Savings Clause ...........................................    108
   10.20 Counterparts ...................................................    108
   10.21 Effectiveness ..................................................    108
         10.22 General Release ..........................................    109
   10.23 Amendment and Restatement ......................................    109



APPENDICES:     A-1        Outstanding under Existing Credit Agreement
                A-2        Tranche A Term Loans; Pro Rata Shares
                A-3        Tranche B Term Loan Commitments; Pro Rata Shares
                B          Notice Addresses


SCHEDULES:      1.1(a)     Permitted IBX Facilities
                1.1(b)     Unrestricted Subsidiaries
                1.1(c)     Certain EBITDA Adjustments
                3.1(e)(A)  Existing Mortgaged Properties
                3.1(e)(B)  Effective Date Mortgaged Properties

                4.1        Jurisdictions of Organization and Qualification
                4.2        Capital Stock and Ownership
                4.5        Governmental Approvals
                4.13       Real Estate Assets
                4.17(a)    Material Contracts
                4.17(b)    Intellectual Property
                4.24       Disclosure
                5.1        Additional Reporting Requirements
                5.5        Insurance
                5.15       Certain Post Effective Date Obligations
                6.1        Certain Indebtedness
                6.2        Certain Liens
                6.4(b)(i)  Restricted Foreign Lease Payments
                6.5(i)     Employee Loans
                6.6(a)     Stage 1 Minimum Annualized/Monthly Consolidated
                           Revenues

                6.6(b)     Stage 1 Maximum Consolidated EBITDA Losses

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                6.6(e)     Stage 1 Minimum Cash and Cash Equivalents
                6.7(a)     Stage 2 Senior Secured Debt to Annualized

                           Consolidated EBITDA
                6.7(b)     Stage 2 Total Debt to Annualized Consolidated EBITDA
                6.7(c)     Stage 2  Minimum Annualized Consolidated
                           EBITDA/Interest Expense Ratio

                6.7(d)     Stage 2 Pro Forma Debt Service Coverage Ratio
                6.7(e)     Stage 2 Minimum Cash and Cash Equivalents
                6.8        Stage 1 and 2 Maximum Consolidated Capital

                           Expenditures
                6.13       Certain Affiliate Transactions

EXHIBITS:       A-1        Funding Notice
                A-2        Conversion/Continuation Notice
                B-1        Tranche A Term Loan Note
                B-2        Tranche B Term Loan Note
                C          Compliance Certificate
                D          Opinions of Counsel
                E          Assignment Agreement
                F          Certificate Re Non-bank Status
                G          Effective Date Certificate
                H          Counterpart Agreement
                I          Master Pledge and Security Agreement
                J          Mortgage
                K          Landlord Agreement
                L          Borrowing Base Certificate
                M          Form of Confirmation of Grant
                N          Form of Release
                O          Form of EBITDA Certificate

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               AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT

            This AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT, dated as of
September 30, 2001, is entered into by and among EQUINIX OPERATING CO., INC., a
Delaware corporation, as the Borrower ("OpCo"), EQUINIX, INC., a Delaware
corporation, as a Guarantor ("Company"), and CERTAIN SUBSIDIARIES OF THE
COMPANY, as Guarantors, the Lenders party hereto from time to time, GOLDMAN
SACHS CREDIT PARTNERS L.P. ("GSCP"), as Joint Lead Arranger, Joint Book Runner
and Syndication Agent (in such capacity, "Syndication Agent"), SALOMON SMITH
BARNEY INC., as Joint Lead Arranger (in such capacity, together with GSCP, the
"Joint Lead Arrangers"), and Joint Book Runner (in such capacity, together with
GSCP, the "Joint Book Runners"), CITICORP USA, INC., as Administrative Agent
(together with its permitted successors and assigns in such capacity,
"Administrative Agent") and CIT LENDING SERVICES CORPORATION, as Collateral
Agent (together with its permitted successors and assigns in such capacity,
"Collateral Agent").

                                    RECITALS:

            WHEREAS, capitalized terms used in these Recitals shall have the
respective meanings set forth for such terms in Section 1.1 hereof;

            WHEREAS, pursuant to the Existing Credit Agreement, Lenders agreed
to extend certain credit facilities to Borrowers, in an aggregate amount not to
exceed $150,000,000, consisting of $50,000,000 aggregate principal amount of
Term Loans drawn on January 2, 2001, $75,000,000 aggregate principal amount of
Delayed Draw Term Loans drawn on March 5, 2001, and $25,000,000 aggregate
principal amount of Revolving Loans drawn on June 27, 2001, the proceeds of
which were used to (i) to pay Transaction Costs, (ii) to provide financing for
the cost of design, development, acquisition, construction, installation,
improvement, transportation, and/or integration of equipment, inventory or
facility assets and of leasing and acquiring of real property and/or (iii) for
the working capital and other general corporate purposes of Company and its
Restricted Subsidiaries, as well as for certain limited purposes of its
Unrestricted Subsidiaries;

            WHEREAS, pursuant to the Existing Credit Agreement and the other
documents entered into in connection therewith Company secured all of its
obligations under the Existing Credit Agreement by granting to Collateral Agent,
for the benefit of Secured Parties, a First Priority Lien on substantially all

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