Exhibit 10.2

 

POI ACQUISITION I, INC.

 

August 23, 2004

 

Protection One, Inc.

818 South Kansas Avenue

Topeka, Kansas  66612

Attn:       Darius G. Nevin

Executive Vice President and Chief Financial Officer

 

Dear Mr. Nevin:

 

1.             We refer to the:  (a) Equity Standstill Agreement, dated as of
February 17, 2004 (the “Agreement”), by and between Protection One, Inc. (“POI”)
and POI Acquisition I, Inc. (“POI Acquisition”); (b) letter from POI Acquisition
to POI, dated May 17, 2004, amending the term of the Agreement; (c) letter from
POI Acquisition to POI, dated May 24, 2004, further amending the term of the
Agreement; (d) letter from POI Acquisition to POI, dated May 28, 2004, further
amending the term of the Agreement; (e) letter from POI Acquisition to POI,
dated June 28, 2004, further amending the term of the Agreement; and (f) letter
from POI Acquisition to POI, dated July 26, 2004, further amending the term of
the Agreement (the “Fifth Letter Agreement”).  Capitalized terms used but not
defined herein shall have the meanings ascribed to such terms in the Agreement.

 

2.             Pursuant to section 2.02 of the Agreement, the Agreement shall
terminate and be of no further force and effect on the Specified Date (which
currently, under clause (i) of section 2.02 of the Agreement, as amended by the
Fifth Letter Agreement, is 11:59 p.m. prevailing Eastern Time on August 23,
2004).  By this letter agreement and at your request, we hereby agree to further
amend the definition of the Specified Date to mean the earlier of:  (i) 11:59
p.m. prevailing Eastern time on the date that is 196 days after the Effective
Time (the “Outside Date”) (the period beginning with the Effective Time and
continuing through and including the Outside Date, the “Outside Standstill
Period”); or (ii) the occurrence of any Equity Standstill Termination Event.  We
also hereby agree that the Outside Standstill Period shall be automatically
extended three (3) consecutive times by seven (7) day periods (and the
definition of Outside Date shall be further amended accordingly), without any
further action required to be taken by either party hereto, unless POI
Acquisition delivers written notice of non-extension to POI pursuant to
Paragraph 4 of this letter agreement on August 27, 2004, September 3, 2004 or
September 10, 2004.  Under no circumstance shall the Outside Standstill Period
exceed 217 days pursuant to the terms of this letter agreement.  Except as
otherwise provided herein, the Agreement shall remain in full force and effect
subject to the terms and provisions thereof.

 

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3.             Notwithstanding anything to the contrary contained herein, in the
event that POI Acquisition delivers written notice of termination to POI
pursuant to Paragraph 4 of this letter agreement, this letter agreement and the
Outside Standstill Period shall terminate effective as of two business days
following the date of receipt of such written notice by POI.

 

4.             Any written notice to be given pursuant to this letter agreement
by POI Acquisition shall be sufficiently given if sent by overnight delivery
service or by facsimile transmission, with receipt confirmed, as follows:

 

Protection One, Inc.
4221 W. John Carpenter Freeway
Irving, Texas, 75063
Attn: J. Eric Griffin, General Counsel
Facsimile: (972) 916-6195

 

with a copy to:

 

Kirkland & Ellis LLP
200 E. Randolph Drive
Chicago, Illinois 60601
Attn: Anup Sathy
Facsimile: (312) 861-2200

 

*              *              *              *

 

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This letter agreement may be executed in counterparts.  Please confirm your
agreement with the foregoing by signing and returning to the undersigned the
duplicate copy of this letter agreement enclosed herewith.

 

Very truly yours,

 

POI ACQUISITION I, INC.

 

 

By:

/s/ David A. Tanner

 

Name:

Title:

 

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Agreed as of the date first written above:

 

PROTECTION ONE, INC.

 

 

By:

/s/ Darius G. Nevin

 

Name: Darius G. Nevin

Title: Executive Vice President and Chief Financial Officer

 

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