Document:

exv10w5

 

Exhibit 10.5

SUBORDINATION AGREEMENT

     This Subordination Agreement (this “Agreement”) is made as of December 30, 2005 by and
among the undersigned noteholders (each, a “Noteholder”), IdleAire Technologies Corporation
(“IdleAire”), the Administrative Agent and the Collateral Agent (each, as hereinafter
defined).

RECITALS

     A. The Noteholders acquired certain senior secured convertible notes from IdleAire pursuant to
those certain Note Purchase Agreements, dated as of various dates in June, July and August, 2003
(the “Junior Note Agreements”), between IdleAire and each of the respective Noteholders,
pursuant to which the Noteholders appointed Dan H. Felton III as the administrative agent (the
“Administrative Agent”) under the Junior Security Agreement (as defined below).

     B. The obligations of IdleAire under the Junior Note Agreements are secured by certain assets
of IdleAire (the “Collateral”), as more fully described in that certain Security Agreement,
dated as of June 1, 2003, by and between IdleAire and the Administrative Agent (the “Junior
Security Agreement”).

     C. Pursuant to an indenture (the “Indenture”) by and among IdleAire, the Guarantors
(as defined therein) and Wells Fargo Bank, National Association, as trustee and collateral agent
(in such capacity, the “Collateral Agent”), IdleAire intends to issue $325,000,000
aggregate principal amount of senior secured notes (the “Senior Secured Notes”) and a
warrant to purchase shares of IdleAire’s common stock.

     D. In connection with the execution and delivery of the Indenture, IdleAire will enter into a
security agreement (the “Security Agreement”) with the Collateral Agent for the benefit of
the holders of the Senior Secured Notes (the “Senior Holders”), pursuant to which IdleAire
will grant to the Collateral Agent a security interest in and lien on the Collateral.

     E. IdleAire also intends to enter into a revolving credit facility of up to $35,000,000 (the
“Senior Credit Facility”) with one or more banks or other financial institutions (the
“Lenders”), to be administered by an administrative and collateral agent (the “Credit
Agreement Collateral Agent”) to obtain working capital for general corporate purposes, in
connection with which IdleAire will grant to the Credit Agreement Collateral Agent a lien on and
security interest in the Collateral.

     F. The issuance of the Senior Secured Notes and the entry into the Senior Credit Facility will
benefit the Noteholders by providing additional financing to IdleAire for the development and
implementation of its business plan.

     G. As a condition to the financing accommodations under the Senior Note Documents and the
Credit Facility Documents, the parties hereto have agreed to enter into this Agreement.

     H. The Noteholders are willing to subordinate all contractual and any other liens they hold on
and to the Collateral to the liens of the Collateral Agent and the Credit Agreement Collateral
Agent in order to induce IdleAire, the Collateral Agent and the Credit Agreement Collateral Agent
to enter into the Indenture and the Senior Credit Facility, respectively.

     NOW, THEREFORE, THE PARTIES HERETO HEREBY AGREE AS FOLLOWS:

     1. As used in this Agreement, the following terms shall have the respective meanings
set forth in this Section:

     “Borrower’s Property” means all assets, property and property rights, of any kind or
nature, tangible or intangible, now or hereafter existing, in which IdleAire owns, asserts or
maintains an interest.

 

 

     “Credit Facility Documents” shall mean any and all future agreements, documents and/or
instruments evidencing, documenting, securing, governing or otherwise relating to any or all of the
Senior Credit Facility, all as the same may from time to time be amended, modified, renewed,
refinanced, extended or restated.

     “Foreclosure Action” means, with respect to any creditor, any action to foreclose upon
or enforce a Lien against particular property, including commencing judicial or non-judicial
foreclosure proceedings, exercising any other remedy with respect to any item of real or personal
property included in the Collateral, exercising any rights afforded to secured creditors in a case
under the Bankruptcy Code (including those under Section 361, 362 or 363 thereof), or taking any
action under the Bankruptcy Code that directly relates to or directly affects any Collateral, other
than any such action that relates to or affects all or substantially all the property of the
bankruptcy estate.

     “Finally Paid” or “Final Payment,” when used in connection with the Senior
Debt Obligations shall mean the full, final and indefeasible payment in cash and satisfaction of
all of the Senior Debt Obligations and the irrevocable termination of the Collateral Agent’s and
the Credit Agreement Collateral Agent’s obligation to make loans, accommodations or other advances
under the Senior Note Documents or the Credit Facility Documents.

     “Junior Note Documents” shall mean any and all present and future agreements,
documents and/or instruments evidencing, documenting, securing, governing or otherwise relating to
any or all of the Junior Note Agreements and the Junior Security Agreement, all as the same may
from time to time be amended, modified, renewed, refinanced, extended or restated in compliance
with this Agreement.

     “Liens” shall mean, with respect to any asset, any mortgage, deed of trust, lien
(statutory or other), pledge, lease, easement, restriction, covenant, charge, security interest or
other encumbrance of any kind or nature in respect of such asset, whether or not filed, recorded or
otherwise perfected under applicable law, including any conditional sale or other title retention
agreement, and any lease in the nature thereof, any option or other agreement to sell, and any
filing of, or agreement to give, any financing statement under the Uniform Commercial Code (or
equivalent statutes) of any jurisdiction (other than cautionary filings in respect of operating
leases).

     “Realization” means any Foreclosure Action or other realization upon the Collateral,
including any payment or distribution of assets of the Borrower or any Subsidiary that is
attributable to the Collateral (or the proceeds thereof).

     “Senior Debt Obligations” shall mean all obligations of IdleAire under the Senior Note
Documents and the Credit Facility Documents. “Senior Debt Obligations” shall include, without
limitation, interest which accrues on the principal amount of the Senior Debt Obligations
subsequent to the commencement of a case under Chapter 11 of the United States Bankruptcy Code.

     “Senior Note Documents” shall mean any and all agreements, documents and/or
instruments evidencing, documenting, securing, governing or otherwise relating to any or all of the
Indenture and the Security Agreement, all as the same may from time to time be amended, modified,
renewed, extended or restated.

     “Subordinated Indebtedness” means all indebtedness of IdleAire to the Noteholders
pursuant to the Junior Note Documents and all present and future loans, advances, debts,
liabilities, indebtedness obligations, claims and causes of action, otherwise owing to or arising
in favor of any Noteholder or the Administrative Agent in respect of IdleAire, whether evidenced by
any note, or other instrument or document, whether absolute or contingent, due or to become due,
including, without limitation, all interest, charges, expenses, fees, attorneys’ fees and any other
sums chargeable to IdleAire. “Subordinated Indebtedness” shall include, without limitation,
interest which accrues on the principal amount of the Subordinated Indebtedness subsequent to the
commencement of a case under Chapter 11 of the United States Bankruptcy Code.

     “Subordinated Lender Remedies” means any action taken by the Administrative Agent or
the Noteholders that results in (a) the sale, foreclosure, realization on or liquidation of any
Borrower’s Property, (b) the execution on any judgment obtained against IdleAire, (c) the
acceleration of the Subordinated Indebtedness, (d) the filing of any petition or lien under any
bankruptcy, insolvency or creditors’ rights laws with respect to IdleAire, or (e) the institution
or exercise against IdleAire of any suit, legal action, arbitration or other enforcement remedy.

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     “UCC” shall mean Article 9 of the Uniform Commercial Code, as in effect in the State
of Delaware from time to time.

     2. Each Noteholder hereby:

     (a) subordinates any and all rights and claims it has or may have in or to the Collateral
under the Junior Note Documents, or otherwise, to the rights of the Collateral Agent, the Senior
Holders, the Credit Agreement Collateral Agent and the Lenders in the Collateral; and

     (b) agrees that any Liens that such Noteholder or the Administrative Agent may hereafter
acquire against IdleAire and Borrower’s Property shall be subordinate and subject to the Liens of
the Collateral Agent, the Senior Holders, the Credit Agreement Collateral Agent and the Lenders
arising from or out of the Senior Debt Obligations;

     in each case, regardless of the order or time as of which any Liens attach to any of the Borrower’s
Property, the order or time of UCC filings or any other filings or recordings, the order or time of
granting of any such Liens, or the physical possession of any of the Borrower’s Property until this
Agreement is terminated in accordance with Section 11 hereof.

     3. (a) IdleAire, each of the Noteholders and the Administrative Agent each hereby severally
represents and warrants to the Collateral Agent and the Credit Agreement Collateral Agent that the
Collateral Agent has been, and the Credit Agreement Collateral Agent will be, furnished with a true
and correct copy of all instruments and securities evidencing or pertaining to the Subordinated
Indebtedness.

     (b) IdleAire hereby represents and warrants to the Collateral Agent and the Credit Agreement
Collateral Agent that this Agreement has been duly executed and delivered by IdleAire and
constitutes a legal, valid and binding obligation of IdleAire enforceable in accordance with its
terms except to the extent that the enforceability thereof may be limited by any applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws from time to time in effect
affecting generally the enforcement of creditors’ rights and remedies and general principles of
equity.

     (c) Each Noteholder and the Administrative Agent hereby severally represents and warrants to
the Collateral Agent and the Credit Agreement Collateral Agent that: (i) this Agreement has been
duly executed and delivered by such Noteholder and the Administrative Agent, respectively, and
constitutes a legal, valid and binding obligation of such Noteholder and the Administrative Agent,
respectively, enforceable against such parties in accordance with its terms, except to the extent
that the enforceability thereof may be limited by any applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws from time to time in effect affecting generally the
enforcement of creditors’ rights and remedies and general principles of equity; (ii) such
Noteholder and the Administrative Agent is an individual having his principal residence and
domicile at the address set forth below his name on the signature page hereto; (iii) such
Noteholder acquired the Subordinated Indebtedness for his own account and not with a view to the
distribution thereof and has no present intention of distributing the Subordinated Indebtedness;
and (iv) such Noteholder and the Administrative Agent has not relied and shall not rely on any
representation or information of any nature made by or received from the Collateral Agent or the
Credit Agreement Collateral Agent relative to IdleAire in deciding to execute this Agreement or to
permit it to continue in effect.

     4. Until all of the Senior Debt Obligations have been Finally Paid: (a) the Administrative
Agent shall not directly or indirectly demand or accept, and IdleAire shall not, directly or
indirectly, grant any further security interest in, mortgage, pledge, assign or transfer any
properties, to secure or satisfy all or any part of the Subordinated Indebtedness; (b) each
Noteholder agrees that he or she shall not transfer or assign any of the Subordinated Indebtedness
of such Noteholder to any person, unless such transferee or assignee shall have expressly
acknowledged in writing that such Subordinated Indebtedness is subject to the terms of this
Agreement; and (c) IdleAire, each Noteholder and the Administrative Agent each agree that he, she
or it shall not otherwise take any action contrary to the Collateral Agent’s and the Credit
Agreement Collateral Agent’s priority position that is created by this Agreement. Without limiting
the foregoing, the Administrative Agent and each Noteholder severally agree not to assert, collect,
enforce or seek to enforce any right or remedy with respect to the Collateral or any part

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thereof or take any action to foreclose or realize upon the Collateral or any part thereof for
so long as the Senior Debt Obligations are outstanding.

     5. (a) In the event of IdleAire’s insolvency, reorganization or any case or proceeding under
any bankruptcy or insolvency law or laws relating to the relief of debtors (each, an
“Insolvency Proceeding”), the provisions of this Agreement shall remain in full force and
effect.

     (b) Until the Senior Debt Obligations have been Finally Paid, in the event an Insolvency
Proceeding shall occur and be continuing, the Noteholders and the Administrative Agent:

     (i) expressly consent to the granting by IdleAire to the Collateral Agent and the
Credit Agreement Collateral Agent of senior Liens and priorities in connection with any
post-petition financing of IdleAire by the Collateral Agent or the Credit Agreement
Collateral Agent; and

     (ii) agree that adequate notice of such financing to the Noteholders and the
Administrative Agent shall have been provided if the Administrative Agent received notice
thereof five (5) business days prior to the entry of any order approving such cash
collateral usage or financing.

     (c) In the event that the Noteholders or the Administrative Agent has or at any time acquires
any security for the Subordinated Indebtedness, the Noteholders and the Administrative Agent agree
not to assert any right they may have to “adequate protection” of their respective interests in
such security in any Insolvency Proceeding and agree that they will not seek to have the automatic
stay lifted with respect to such security, in each case without the prior written consent of the
Collateral Agent and the Credit Agreement Collateral Agent. The Noteholders and the Administrative
Agent hereby waive any claim or defense they may now or hereafter have arising out of the election
by the Collateral Agent or the Credit Agreement Collateral Agent in any Insolvency Proceeding
instituted under Chapter 11 of the United States Bankruptcy Code, of the application of Section
1111(b)(2) of the United States Bankruptcy Code, and/or any use of cash collateral, any borrowing
or any grant of a security interest under Sections 363 and/or 364 of the United States Bankruptcy
Code by Borrower, as debtor-in-possession.

     (d) IdleAire shall give prompt written notice to the Collateral Agent, the Credit Agreement
Collateral Agent and the Administrative Agent of any dissolution, winding up, liquidation or
reorganization of IdleAire (whether in bankruptcy, insolvency or receivership proceedings or upon
an assignment for the benefit of creditors or otherwise).

     6. (a) Notwithstanding anything herein to the contrary, the Administrative Agent and each
Noteholder hereby agrees that until all of the Senior Debt Obligations have been Finally Paid,
neither the Administrative Agent nor any Noteholder shall exercise any Subordinated Lender Remedies
or other remedies it may have for a default under the Junior Note Documents, nor will it hinder,
delay, interfere with or in any way obstruct the exercise by the Collateral Agent, the Senior
Holders or the Credit Agreement Collateral Agent of their respective remedies pursuant to the
Senior Note Documents, the Credit Facility Documents or applicable law. Further, neither the
Administrative Agent nor any Noteholder shall have the right to cause the Collateral Agent, the
Senior Holders or the Credit Agreement Collateral Agent to take any action, or consent to any
action or inaction on the part of any other person or entity, with respect to the Senior Debt
Obligations or any collateral held in connection therewith, and the Collateral Agent, the Senior
Holders or the Credit Agreement Collateral Agent may, in each of their sole discretion, take or
refrain from taking any action in connection with the Senior Note Documents or the Credit Facility
Documents, respectively.

     (b) Until Final Payment of the Senior Debt Obligations, the Administrative Agent and each
Noteholder shall pay over or deliver to the Credit Agreement Collateral Agent, if any, or the
Collateral Agent, and segregate and hold in trust for the benefit of the holders or Senior Debt
Obligations until paid or delivered, any payment or distribution of any character, direct or
indirect, whether in cash, securities or other property, received by the Administrative Agent or
each Noteholder as a result of any Realization with respect to any Lien securing the Subordinated
Indebtedness or any Collateral, or any other payment or distribution of or on account of any such
Lien or Collateral or any proceeds thereof (including proceeds of any sale or other disposition of
Collateral).

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     7. IdleAire, the Noteholders and the Administrative Agent each hereby waives, to the fullest
extent permitted by law, any defense based on the adequacy of a remedy at law which might be
asserted as a bar to the remedy of specific performance of this Agreement in any action brought
therefor by the Collateral Agent and the Credit Agreement Collateral Agent. To the fullest extent
permitted by law and except as to any notices specified in this Agreement, notices regarding the
intended sale or disposition of any portion of the Collateral by the Collateral Agent or the Credit
Agreement Collateral Agent, or any notice which may not be waived in accordance with the UCC,
IdleAire, the Noteholders and the Administrative Agent each hereby further waives: presentment,
demand, protest, notice of protest, notice of default or dishonor, notice of payment or nonpayment
and any and all other notices and demands of any kind in connection with all negotiable instruments
evidencing all or any portion of the Senior Debt Obligations or the Subordinated Indebtedness to
which IdleAire, the Noteholders or the Administrative Agent may be a party; prior notice of and
consent to any loans made, extensions granted or other action taken in reliance thereon; and all
other demands and notices of every kind in connection with this Agreement, the Senior Debt
Obligations or the Subordinated Indebtedness. The Noteholders and the Administrative Agent hereby
consent to any release, renewal, extension, compromise or postponement of the time of payment of
the Senior Debt Obligations, to any substitution, exchange or release of collateral therefor, and
to the addition or release of any person primarily or secondarily liable thereon.

     8. Neither the failure nor any delay on the part of the Collateral Agent or the Credit
Agreement Collateral Agent to exercise any right, remedy, power or privilege hereunder shall
operate as a waiver thereof or give rise to an estoppel, nor be construed as an agreement to modify
the terms of this Agreement, nor shall any single or partial exercise of any right, remedy, power
or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power
or privilege with respect to any other occurrence. No waiver by a party hereunder shall be
effective unless it is in writing and signed by the party making such waiver, and then only to the
extent specifically stated in such writing.

     9. If any material representation or warranty of IdleAire, the Noteholders or the
Administrative Agent in this Agreement or in any instrument evidencing, securing or relating to the
Senior Debt Obligations proves to have been materially false when made, or, in the event of a
material breach by IdleAire, the Noteholders or the Administrative Agent in the performance of any
of the material terms of this Agreement, or any instrument or agreement evidencing, securing or
relating to the Senior Debt Obligations, all of the Senior Debt Obligations shall, at the option of
the Collateral Agent or the Credit Agreement Collateral Agent, become immediately due and payable
without presentment, demand, protest, or notices of any kind, notwithstanding any time or credit
otherwise allowed. At any time the Noteholders or the Administrative Agent fail to comply with any
provision of this Agreement that is applicable to the Noteholders or the Administrative Agent, the
Collateral Agent and the Credit Agreement Collateral Agent may demand specific performance of this
Agreement, whether or not IdleAire has complied with this Agreement, and each may exercise any
other remedy available at law or equity.

     10. The Junior Note Documents shall not be amended without the prior written consent of the
Credit Agreement Collateral Agent. In the event that any provision of the Junior Note Documents,
is inconsistent or conflicts with the provisions of this Agreement, the provisions of this
Agreement shall govern and prevail.

     11. This Agreement shall continue in full force and effect, and the obligations of the
Noteholders, the Administrative Agent and IdleAire shall continue in full force and effect, until
the Final Payment of all outstanding Senior Debt Obligations. To the extent that IdleAire makes
any payment on the Senior Debt Obligations that is subsequently invalidated, declared to be
fraudulent or preferential or set aside or is required to be repaid to a trustee, receiver or any
other party under any bankruptcy, insolvency or reorganization act, state or federal law, common
law or equitable cause (such payment being hereinafter referred to as a “Voided Payment”),
then, to the extent of such Voided Payment, that portion of the Senior Debt Obligations that had
been previously satisfied by such Voided Payment shall be revived and continue in full force and
effect as if such Voided Payment had not been made. Upon the Final Payment of the Senior Debt
Obligations, this Agreement shall automatically terminate without further action by any party
hereto.

     12. Nothing contained herein or in the Senior Note Documents or the Credit Facility Documents
is intended to or shall impair, as between IdleAire, on the one hand, and the Noteholders and the
Administrative Agent, on the other hand, the obligations of IdleAire, which are absolute and
unconditional, to pay to the holders of the Subordinated Indebtedness the Subordinated Indebtedness
as and when the same shall become due and payable

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in accordance with their terms, or to affect the relative rights of the Noteholders, the
Administrative Agent and other creditors of IdleAire, other than the Collateral Agent and the
Credit Agreement Collateral Agent.

     13. (a) No right of any present or future holder of any Senior Debt Obligations to enforce the
subordination provided herein shall at any time in any way be prejudiced or impaired by any act or
failure to act on the part of IdleAire; by any act or failure to act, which act or failure is in
good faith, by any such holder; by any act or failure to act by any other holder of the Senior Debt
Obligations; or by any noncompliance by IdleAire with the terms hereof, regardless of any knowledge
thereof which any such holder may have or be otherwise charged with. Neither the Noteholders nor
the Administrative Agent shall be released, nor shall their respective obligations hereunder be in
anyway diminished, by any of the following: (i) the exercise or the failure to exercise by the
Collateral Agent or the Credit Agreement Collateral Agent of any rights or remedies conferred on it
or them under the Senior Note Documents, the Credit Facility Documents or hereunder, or existing at
law or otherwise, or against any of Borrower’s Property; (ii) the commencement of an action at law
or the recovery of a judgment at law against IdleAire or any obligor (each, an “Obligor”)
for the performance of the Senior Debt Obligations and the enforcement thereof through levy or
execution or otherwise; (iii) the taking or institution or any other action or proceeding against
IdleAire or any Obligor; or (iv) any delay in taking, pursuing, or exercising any of the foregoing
actions, rights, powers, or remedies (even though requested by the Noteholders or the
Administrative Agent) by the Collateral Agent or the Credit Agreement Collateral Agent or anyone
acting on their behalf.

     (b) Without limiting the generality of the foregoing, and anything else contained herein to
the contrary notwithstanding, the Collateral Agent and the Credit Agreement Collateral Agent, from
time to time, without prior notice to or the consent of the Noteholders or the Administrative
Agent, may take all or any of the following actions without in any manner affecting or impairing
the obligation or liability of the Noteholders or the Administrative Agent hereunder: (i) obtain a
lien or a security interest in any property to secure any of the Senior Debt Obligations; (ii)
obtain the primary and secondary liability of any party or parties with respect to any of the
Senior Debt Obligations; (iii) renew, extend or otherwise change the time for payment of the Senior
Debt Obligations or any installment thereof for any period; (iv) release or compromise any
liability of any nature of any person or entity with respect to the Senior Debt Obligations; (v)
exchange, enforce, waive, release, and apply any of Borrower’s Property and direct the order or
manner of sale thereof as the Collateral Agent or the Credit Agreement Collateral Agent may in its
discretion determine; (vi) enforce their rights hereunder, whether or not the Collateral Agent or
the Credit Agreement Collateral Agent shall proceed against any other person or entity; (vii)
exercise its rights to consent to any action or non-action of IdleAire which may violate the
covenants and agreements contained in the Senior Note Documents or the Credit Facility Documents,
with or without consideration, on such terms and conditions as may be acceptable to such party; or
(viii) exercise any of its rights conferred by the Senior Note Documents, the Credit Facility
Documents or by law.

     14. The Noteholders and the Administrative Agent hereby agree to enter into any additional
agreements and execute any further instruments as may be required by the Collateral Agent or the
Credit Agreement Collateral Agent to give effect to the intent of this Agreement. Without limiting
the foregoing, if in connection with any enforcement action, the Collateral Agent or the Credit
Agreement Collateral Agent releases any of its security for any of the Senior Debt Obligations
which constitutes part or all of the security for the Subordinated Indebtedness, the Administrative
Agent shall thereupon execute and deliver to the Collateral Agent and the Credit Agreement
Collateral Agent such termination statements and releases as the Collateral Agent and the Credit
Agreement Collateral Agent shall reasonably request to release the Administrative Agent’s security
interest in or lien against such property of IdleAire. The Noteholders and the Administrative
Agent agree (a) that, to the extent this Agreement constitutes an amendment of any of the Junior
Note Documents, the same shall be amended hereby; and (b) not to take any action under the Junior
Note Documents that would be prohibited under this Agreement.

     15. The Credit Agreement Collateral Agent is intended to be, and shall be, a third-party
beneficiary of this Agreement.

     16. This Agreement may be executed in two or more counterparts, each of which shall be deemed
an original and all of which together shall constitute one instrument. The provisions of this
Agreement are independent of and separable from each other. If any provision hereof shall for any
reason be held invalid or unenforceable, it is the intent of the parties that such invalidity or
unenforceability shall not affect the validity or enforceability of any

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other provision hereof, and that this Agreement shall be construed as if such invalid or
unenforceable provision had never been contained herein.

     17. This Agreement shall inure to the benefit of the Collateral Agent, the Credit Agreement
Collateral Agent, and their respective successors and assigns, and shall be binding upon IdleAire
and its successors and assigns, and each Noteholder and the Administrative Agent, and their
respective heirs, legatees, distributees, transferees, executors, administrators and personal
representatives and assigns, including without limitation, any subsequent holders of the
Subordinated Indebtedness. The Collateral Agent and the Credit Agreement Collateral Agent, without
prior notice or consent of any kind, may sell, assign or transfer the Senior Debt Obligations, and
in such event each and every immediate and successive assignee or transferee thereof may be given
the right by the Collateral Agent or the Credit Agreement Collateral Agent, as applicable, to
enforce this Agreement in full against IdleAire, the Noteholders and the Administrative Agent, by
suit or otherwise, for its own benefit, provided that such successor, assignee or transferee agrees
to be bound by the terms of this Agreement.

     18. This Agreement has been negotiated by the parties with the expectation and in reliance
upon the assumption that the instruments and documents evidencing the Senior Debt Obligations are
valid and enforceable. In determining whether to enter into this Agreement, the Noteholders and
the Administrative Agent have assumed such validity and enforceability, and have agreed to the
provisions contained herein, without relying upon any reservation of a right to challenge or call
into question such validity or enforceability. As between the Collateral Agent and the Credit
Agreement Collateral Agent, on the one hand, and the Noteholders and the Administrative Agent, on
the other hand, the Noteholders and the Administrative Agent each hereby covenant and agree, to the
fullest extent permitted by law, that they shall not initiate in any proceeding a challenge to the
validity or enforceability of the documents and instruments evidencing the Senior Debt Obligations,
nor shall the Noteholders or the Administrative Agent instigate other parties to raise any such
challenges, nor shall the Noteholders or the Administrative Agent participate in or otherwise
assert any such challenges which are raised by other parties.

     19. This Agreement shall be governed by and construed in accordance with the laws of the State
of New York, without giving effect to conflicts of laws principles.

     20. The Noteholders are not relying on any representations by IdleAire in entering into this
Agreement, and the Noteholders have kept and will continue to keep themselves fully apprised of the
financial and other condition of IdleAire. This Agreement may be amended only by written
instrument executed by each of the parties hereto.

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     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above
written.

	 	 	 	 	 	 	 
	 	 	Noteholders:	 	 
	 
	 	 	 	 	 	 
	 	 	DAMON L. CRABTREE	 	 
	 	 	ROBBIE C. CRABTREE	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
     /s/ Damon L. Crabtree	 	 
	 

	 	
 
	 	 
	 	 	Name: Damon L. Crabtree	 	 
	 

	 	Address:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:     
/s/ Robbie C. Crabtree	 	 
	 

	 	
 
	 	 
	 	 	Name: Robbie C. Crabtree	 	 
	 

	 	Address:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	H. WAYNE ENGLAND	 	 
	 
	 	 	 	 	 	 
	 

	 	By:      /s/ H. Wayne England	 	 
	 

	 	
 
	 	 
	 	 	Name: H. Wayne England	 	 
	 

	 	Address:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	JOHN J. FARIS	 	 
	 
	 	 	 	 	 	 
	 

	 	By:      /s/ John J. Faris	 	 
	 

	 	
 
	 	 
	 	 	Name: John J. Faris	 	 
	 

	 	Address:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	STEWART FRAZIER	 	 
	 
	 	 	 	 	 	 
	 

	 	By:      /s/ Stewart Frazier	 	 
	 

	 	
 
	 	 
	 	 	Name: Stewart Frazier	 	 
	 

	 	Address:
	 	1998 Delps Beach Lane	 	 
	 

	 	 	 	Fries, Virginia 24330	 	 
	 
	 	 	 	 	 	 
	 	 	IDLEAIRE NOTE PARTNERSHIP ONE	 	 
	 
	 	 	 	 	 	 
	 

	 	By:     
/s/ R. Neal Culver	 	 
	 

	 	 
	 	 
	 	 	Name: R. Neal Culver, as General Partner	 	 
	 

	 	Address:
	 	P.O. Box 51585	 	 
	 

	 	 	 	Knoxville, Tennessee 37950	 	 

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	 	 	BRIAN P. ROBBIE	 	 
	 
	 	 	 	 	 	 
	 

	 	By:     /s/ Brian P. Robbie	 	 
	 

	 	
 
	 	 
	 	 	Name: Brian P. Robbie	 	 
	 

	 	Address:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	JEFFREY ROBERTS	 	 
	 
	 	 	 	 	 	 
	 

	 	By:      /s/ Jeffrey Roberts	 	 
	 

	 	
 
	 	 
	 	 	Name: Jeffrey Roberts	 	 
	 

	 	Address:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	JEAN C. SMITH QUALIFIED PERSONAL
RESIDENCE TRUST	 	 
	 
	 	 	 	 	 	 
	 

	 	By:      /s/ Patricia Smith Thompson	 	 
	 

	 	
 
	 	 
	 	 	Name: Patricia Smith Thompson, as Trustee	 	 
	 

	 	Address:
	 	5223 Kaydee Way	 	 
	 

	 	 	 	Knoxville, Tennessee 37918	 	 
	 
	 	 	 	 	 	 
	 	 	TURNER P. WILLIAMS	 	 
	 
	 	 	 	 	 	 
	 

	 	By:      /s/ Turner P. Williams	 	 
	 

	 	
 
	 	 
	 	 	Name: Turner P. Williams	 	 
	 

	 	Address:	 	 	 	 

9

 

	 	 	 	 	 	 	 
	 	 	IdleAire Technologies Corporation, a

Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By: /s/ Michael C. Crabtree	 	 
	 

	 	
 
	 	 
	 

	 	Name: Michael C. Crabtree	 	 
	 

	 	Title: President & CEO	 	 
	 
	 	 	 	 	 	 
	 	 	Administrative Agent:	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Dan H. Felton III	 	 
	 	 	 	 	 
	 	 	Dan H. Felton, III, an Arkansas resident	 	 
	 

	 	Address:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Wells Fargo Bank, National Association,

as collateral Agent:	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Lynn M. Steiner	 	 
	 	 	 	 	 
	 

	 	Name: Lynn M. Steiner	 	 
	 

	 	Title: Vice President	 	 

10exv10w6

 

Exhibit 10.6

DISBURSEMENT AGREEMENT

among

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as the Disbursement Agent,

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as the Trustee,

and

IDLEAIRE TECHNOLOGIES CORPORATION,

as the Issuer

Dated as of December 30, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	1. Definitions.
	 	 	2	 
	1.1 Defined Terms
	 	 	2	 
	1.2 Additional Defined Terms
	 	 	4	 
	1.3 Rules of Interpretation
	 	 	5	 
	 
	 	 	 	 
	2. Establishment of the Disbursement Account
	 	 	5	 
	2.1 Appointment of Disbursement Agent
	 	 	5	 
	2.2 Establishment of the Disbursement Account
	 	 	6	 
	2.3 Security Agreement
	 	 	6	 
	2.4 Investment of Funds in the Disbursement Account
	 	 	6	 
	2.5 Agency
	 	 	7	 
	2.6 Waiver of Set-off Rights
	 	 	7	 
	2.7 Transfer of Funds to the Trustee
	 	 	7	 
	 
	 	 	 	 
	3. Disbursement Agent’s Compensation
	 	 	8	 
	 
	 	 	 	 
	4. Disbursement Requests and Disbursements
	 	 	8	 
	 
	 	 	 	 
	5. Representations and Warranties
	 	 	9	 
	5.1 Officer’s Certificate as Representation and Warranty
	 	 	10	 
	 
	 	 	 	 
	6. Disbursement Account
	 	 	10	 
	6.1 Conditions to Disbursements
	 	 	10	 
	6.2 Advance Disbursements
	 	 	11	 
	6.3 Disbursements after an Event of Default
	 	 	11	 
	 
	 	 	 	 
	7. Events of Default
	 	 	12	 
	7.1 Indenture
	 	 	12	 
	7.2 Performance of Certain Obligations
	 	 	12	 
	7.3 Abandonment of Facilities Rollout or Business
	 	 	12	 
	 
	 	 	 	 
	8. Disbursed Funds Account.
	 	 	12	 
	8.1 Rights of the Issuer to Disbursed Funds Account
	 	 	12	 
	8.2 Right to Substitute Disbursed Funds Account
	 	 	12	 
	 
	 	 	 	 
	9. Limitation of Liability
	 	 	12	 
	 
	 	 	 	 
	10. Indemnity
	 	 	13	 
	 
	 	 	 	 
	11. Termination
	 	 	13	 
	 
	 	 	 	 
	12. Substitution or Resignation
	 	 	13	 
	12.1 Disbursement Agent
	 	 	13	 

i

 

	 	 	 	 	 
	13. Account Statement
	 	 	14	 
	 
	 	 	 	 
	14. Notice of Balance Reduction
	 	 	15	 
	 
	 	 	 	 
	15. Miscellaneous
	 	 	15	 
	15.1 Waiver
	 	 	15	 
	15.2 Invalidity; Separability
	 	 	15	 
	15.3 No Authority
	 	 	15	 
	15.4 Assignment
	 	 	15	 
	15.5 Benefit
	 	 	15	 
	15.6 Time
	 	 	15	 
	15.7 Governing Law; Waiver of Jury Trial
	 	 	15	 
	15.8 Entire Agreement; Amendments
	 	 	15	 
	15.9 Notices
	 	 	16	 
	15.10 Counterparts
	 	 	16	 
	15.11 Captions
	 	 	16	 
	15.12 Right to Consult Counsel
	 	 	16	 
	15.13 Force Majeure
	 	 	17	 

	 	 	 
	EXHIBITS	 	 
	 
	Exhibit A
	 	Form of Disbursement Agent’s Closing Certificate
	Exhibit B-1
	 	Form of Facilities Disbursement Request
	Exhibit B-2
	 	Form of Advance Disbursement Request

ii

 

DISBURSEMENT AGREEMENT

     THIS DISBURSEMENT AGREEMENT (as amended, supplemented or otherwise modified from time to time,
this “Agreement”), dated as of December 30, 2005, is made by and among Wells Fargo Bank,
National Association, as trustee (together with its successors and assigns, in such capacity, the
“Trustee”) under the Indenture (as defined below), Wells Fargo Bank, National Association,
as disbursement agent (together with its successors and assigns, in such capacity, the
“Disbursement Agent”), and IdleAire Technologies Corporation, a Delaware corporation (the
“Issuer”).

R
E C I T A L S

     A. Units. The Issuer has issued 320,000 units (the “Units”), consisting of
$320,000,000 aggregate principal amount of 13% Senior Secured Discount Notes due 2012 (the
“Discount Notes”) and 320,000 warrants to purchase shares of common stock, par value $0.001
per share of the Issuer. The Discount Notes have been issued pursuant to the provisions of an
indenture (as amended, supplemented or otherwise modified from time to time, the
“Indenture”), dated as of the date hereof, among the Issuer and the Trustee, on behalf of
itself and the holders of the Discount Notes, and Wells Fargo Bank, National Association, as
collateral agent (in such capacity, the “Collateral Agent”). An amount equal to TWO
HUNDRED ONE MILLION FIVE HUNDRED EIGHTY-THREE THOUSAND DOLLARS ($201,583.00) (the “Disbursement
Amount”) of the net proceeds from the issuance of Units will be deposited contemporaneously
with the execution of this Agreement into Account No. 0001038377 held by the Disbursement Agent
(said account, or any substitute account selected in accordance with the terms of this Agreement,
is referred to herein as the “Disbursement Account”), to be maintained by the Disbursement
Agent pursuant to Section 2 of this Agreement.

     B. Collateral and Collateral Assignment. As security for its obligations under the
Discount Notes and the Indenture, the Issuer has granted a Lien (as defined below) on and security
interest in certain assets of the Issuer to the Collateral Agent under a security agreement, dated
as of the date hereof (the “Security Agreement”), for the benefit of the Trustee and the
holders of Discount Notes. The Lien granted to the Collateral Agent under the Security Agreement
includes a security interest in the Disbursement Account, the Disbursed Funds Account (as defined
below), amounts and other assets or investments credited thereto or deposited therein, and proceeds
therefrom.

     C. Purpose. The parties intend that portions of the Disbursement Amount and the other
amounts on deposit from time to time in the Disbursement Account shall be used for the development,
construction, maintenance and operation of the Facilities (as defined below) (the “Facilities
Rollout”), general corporate and other operating expenses, all in accordance with this
Agreement and the Indenture. The parties have entered into this Agreement to set forth the
conditions upon which, and the manner in which, funds will be disbursed from the Disbursement
Account.

 

 

A G R E E M E N T

     NOW, THEREFORE, the parties hereto agree as follows:

1. Definitions.

     1.1 Defined Terms. In this Agreement the terms defined in this Section 1
shall have the meanings herein specified:

     “Advance Disbursement” means a disbursement from the Disbursement Account to the
Issuer pursuant to and Advance Disbursement Request.

     “Advance Disbursement Request” means an Officer’s Certificate from the Issuer in the
form of Exhibit B-2 attached hereto.

     “Business” means the businesses engaged in by the Issuer on the Issue Date as
described in the Memorandum and businesses that are reasonably related thereto or reasonable
extensions thereof.

     “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not
a day on which banking institutions in New York, New York are authorized or obligated by law or
executive order to close.

     “Construction Documents” means any Contract entered into by the Issuer on, prior to or
after the Issue Date with respect to construction of all or any portion of the Facilities to be
included in the Facilities Rollout (other than the Financing Agreements and the documents
evidencing or securing the Credit Agreement), as the same may be amended from time to time.

     “Contract” means a contract to which the Issuer is a party pertaining to the
Facilities Rollout, including any contract, license and performance and payment bond or guarantee,
if any; provided, that such term shall not include the Financing Agreements or any of the
documents evidencing or securing the Credit Agreement.

     “Cost Schedule” means an itemized schedule in the form of Schedule 1 to a
Facilities Disbursement Request, a form of which is attached hereto as Schedule 1 to
Exhibit B-1.

     “Default” means any event, omission or failure of a condition that is, or with the
passage of time or the giving of notice or both could be, an Event of Default.

     “Disbursed Funds Account” means an account to be designated by the Issuer from time to
time, in the name of the Issuer, or any substitute account selected in accordance with this
Agreement, which account shall be funded by disbursements from the Disbursement Account pursuant to
this Agreement, shall be pledged as collateral to the Collateral Agent pursuant to the Security
Agreement and subject to an account control agreement, in form sufficient to perfect the Collateral
Agent’s Lien on such account and from which the Issuer shall have general check writing authority
to pay amounts identified in the Disbursement Request to which the funds then on deposit in such
account relate.

 

 

     “Disbursement Agent’s Closing Certificate” is an Officer’s Certificate from the
Disbursement Agent in the form of Exhibit A attached hereto.

     “Disbursement Request” means any Facilities Disbursement Request or Advance
Disbursement Request.

     “Expenses” means expenses incurred in connection with the design, development,
engineering, construction, installation, equipping and commencement of the Facilities Rollout or
general corporate and other operating expenses of the Issuer.

     “Facilities” means the ATETM system network to be built at approximately 160 travel
center sites and at approximately 50 fleet terminal sites with the proceeds of the sale of the
Units, as described in the Memorandum.

     “Facilities Disbursement” means a disbursement from the Disbursement Account to the
Issuer pursuant to a Facilities Disbursement Request.

     “Facilities Disbursement Request” means an Officer’s Certificate from the Issuer in
the form of Exhibit B-1 attached hereto.

     “Financing Agreements” means, collectively, this Agreement, the Indenture, the
Collateral Agreements, the Registration Rights Agreement, the Warrant Agreement, the Discount
Notes, the Warrants and any other loan or security agreement entered into on, prior to or after the
Issue Date with or for the benefit of the Trustee to finance the Facilities Rollout or any portion
thereof, as each of the same may be amended from time to time as permitted thereunder and in
accordance with the terms and conditions of this Agreement.

     “Governmental Authority” means any federal, state, local and other governmental
authority, governmental or regulatory agency or body, court, arbitrator or self-regulatory
organization, domestic or foreign.

     “Moody’s” means Moody’s Investors Service, Inc., and its successors; provided,
that any reference to a particular rating by Moody’s shall be construed to apply to the
corresponding rating of any successor.

     “Officer’s Certificate” means a certificate signed by one of the following officers of
the Person on whose behalf or for whose benefit the certificate is being executed or delivered: the
Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, Chief Information
Officer, Senior Vice President or Executive Vice President.

     “Other Eligible Investments” means short-term, U.S. dollar-denominated, fixed-income
securities (or other non-equity securities with debt-like characteristics, which pay on a fixed or
floating rate basis) comprised of any of the following:

     (1) direct non-callable obligations of states or municipalities of the United States of
America rated in the highest rating category of S&P or Moody’s;

 

 

     (2) auction rate notes and structured notes rated in the highest rating category of S&P
or Moody’s; and

     (3) bonds and notes maturing no more than 180 days from the date of creation thereof
issued by a corporation that is not the Issuer or an Affiliate of the Issuer, and is
organized under the laws of any State of the United States of America or the District of
Columbia and rated in the highest rating category of S&P or Moody’s.

     “Responsible Officer” when used with respect to the Disbursement Agent, means an
officer or assistant officer assigned to the corporate trust department of the Disbursement Agent
(or any successor group of the Disbursement Agent) with direct responsibility for the
administration of this Disbursement Agreement and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred because of his knowledge
of and familiarity with the particular subject.

     “Retainage Amounts” means, at any given time, amounts which have accrued and are owing
under the terms of a Contract for work or services to the Issuer already provided but which at such
time (and in accordance with the terms of the Contract) are being withheld from payment to the
respective Contractor until certain subsequent events (e.g., completion benchmarks or required to
release to a subcontractor) have been achieved under the Contract.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., and its successors; provided, that any reference to a particular rating by
S&P shall be construed to apply to the corresponding rating of any successor.

     “Supporting Documentation” means, with respect to any Disbursement Request, the
information and documentation required to be provided pursuant to Sections 4.5 and
4.6.

     “Undocumented Advance Disbursements” shall mean all Advance Disbursements for which
Supporting Documentation is required, in accordance with Sections 4.5 and 4.6, but
for which Supporting Documentation has not yet been received and verified by the Disbursement
Agent.

     1.2 Additional Defined Terms. In addition, the terms listed below in the left column
below shall have the respective meanings assigned to such terms in the Section of this Agreement
listed opposite such terms in the right column below. All other capitalized terms not defined
herein, but defined in the Indenture, shall have the meanings ascribed to them in the Indenture.

	 	 	 
	Defined Terms	 	Section
	Agreement
	 	Preamble
	Collateral Agent
	 	Recital B
	Disbursement Account
	 	Recital A
	Disbursement Agent
	 	Preamble
	Disbursement Amount
	 	Recital A
	Discount Notes
	 	Recital A

 

 

	 	 	 
	Defined Terms	 	Section
	Event of Default
	 	7
	Excess Disbursement Amount
	 	4.4
	Facilities Rollout
	 	Recital C
	Indenture
	 	Recital A
	Issuer
	 	Preamble
	Security Agreement
	 	Recital B
	Trustee
	 	Preamble
	Units
	 	Recital A

     1.3 Rules of Interpretation. The following rules of interpretation shall apply
herein.

               1.3.1 Definitions in the singular includes the plural, and definitions in the plural includes
the singular.

               1.3.2 The word “or” is not exclusive.

               1.3.3 A reference to a Person includes its permitted successors and permitted assigns.

               1.3.4 Accounting terms have the meanings assigned to them by GAAP, as applied by the
accounting entity to which they refer.

               1.3.5 The words “include,” “includes” and “including” are not limiting.

               1.3.6 A reference in a document to an Article, Section, Exhibit, Schedule is to the Article,
Section, Exhibit, Schedule, Annex or Appendix of such document unless otherwise indicated.
Exhibits, Schedules, Annexes or Appendices to any document shall be deemed incorporated by
reference in such document.

               1.3.7 References to any document, instrument or agreement (a) shall include all exhibits,
schedules and other attachments thereto, (b) shall include all documents, instruments or agreements
issued or executed in replacement thereof and (c) shall mean such document, instrument or
agreement, or replacement or predecessor thereto, as amended, modified and supplemented from time
to time and in effect at any given time.

               1.3.8 The words “hereof,” “herein” and “hereunder” and words of similar import when used in
any document shall refer to such document as a whole and not to any particular provision of such
document.

               1.3.9 References to “days” shall mean calendar days, unless the term “Business Days” shall be
used.

2. Establishment of the Disbursement Account.

     2.1 Appointment of Disbursement Agent. The Trustee and the Issuer hereby appoint
Wells Fargo Bank, National Association as the Disbursement Agent hereunder, and Wells Fargo Bank,
National Association hereby accepts such appointment, upon the terms and conditions set forth in
this Agreement. The Disbursement Agent agrees to act in good faith at all times herein.

 

 

     2.2 Establishment of the Disbursement Account. Concurrently with the execution and
delivery hereof, the Disbursement Agent shall (a) establish the Disbursement Account and confirm
the establishment of the Disbursed Funds Account with the Company, which Disbursed Funds Account
shall be subject to an account control agreement pursuant to the Security Agreement and (b) credit
thereto, in accordance with the provisions of Recital A hereof, the Disbursement Amount;
provided, that if the Disbursement Account or the Disbursed Funds Account are maintained at
an Affiliate, an account control agreement sufficient to perfect the Collateral Agent’s Lien on
such account(s) shall be established contemporaneously with the creation and funding of such
account(s). All funds in the Disbursement Account and the Disbursed Funds Account shall be held in
trust and not commingled with any deposit or commercial bank account. All funds accepted by the
Disbursement Agent pursuant to this Agreement shall be held in the Disbursement Account or
Disbursed Funds Account for the account of the Issuer, subject to the terms and conditions of this
Agreement and the Collateral Agreements. The Disbursement Agent may, upon the written request of
the Issuer, establish sub-accounts for accounting purposes within the Disbursement Account and the
Disbursed Funds Account, it being understood and agreed that the creation of such sub-accounts
shall in no way affect the pledge in favor of the Collateral Agent in the Disbursement Account and
the Disbursed Funds Account under the Security Agreement and that the Lien of the Collateral Agent
over such sub-accounts shall be perfected at all times.

     2.3 Security Agreement. The Disbursement Agent or its Affiliate, if applicable, shall
note in its records that all funds and other assets in the Disbursement Account and the Disbursed
Funds Account have been pledged to the Collateral Agent and that the Disbursement Agent or its
Affiliate, if applicable, is holding such items as agent for the Collateral Agent, as secured
party. The Disbursement Agent or its Affiliate, if applicable, shall maintain dominion and control
over the Disbursement Account and the Disbursed Funds Account and the funds and assets therein
solely for the benefit of the Collateral Agent, as secured party, and for no other parties or
Persons; provided, that the Issuer shall be able to obtain disbursements from the
Disbursement Account and the Disbursed Funds Account in accordance with the terms hereof, and upon
application thereof by the Issuer as provided in the relevant Disbursement Request, such pledge and
security interest shall be extinguished and released automatically and without further action with
respect to the amount so applied. Accordingly, it is the intention of the parties that all such
funds and assets shall not be within the bankruptcy “estate” (as such term is used in 11 U.S.C. §
541, as amended) of the Disbursement Agent. All such funds and all earnings accruing from time to
time thereon shall be held in the Disbursement Account and the Disbursed Funds Account until
disbursed or transferred in accordance with the terms hereof or until transferred to such other
account as the Trustee and the Issuer may jointly direct the Disbursement Agent to establish.

     2.4 Investment of Funds in the Disbursement Account. All amounts from time to time on
deposit in or credited to the Disbursement Account shall be invested only in cash, Cash
Equivalents, U.S. Government Obligations or Other Eligible Investments from time to time by written
instructions given by an Officer of the Issuer, or a Person authorized in writing by an Officer of
the Issuer to give such instructions, delivered to the Disbursement Agent, pending disbursement of
such funds pursuant to this Agreement. From time to time, if investment instructions are not
received by the Disbursement Agent (i) within two (2) days of the date hereof, (ii) one day prior
to the maturity of an investment in the Disbursement Account or (iii)

 

 

after the occurrence and during a continuance of a Default or Event of Default, as the case
may be, such funds shall not be reinvested by the Disbursement Agent unless the Disbursement Agent
shall have received prior written instructions from the Company for the reinvestment of such funds
in such circumstances or is otherwise directed by the Collateral Agent pursuant to the Security
Agreement. The Disbursement Agent shall not be liable for any investment, reinvestment or similar
losses, fees, taxes or charges or for the availability or liquidity of funds in the Disbursement
Account as a result of any investments made or reduced to cash in accordance with this Agreement,
and the Disbursement Agent is hereby authorized to direct the relevant financial institution in
writing (i) to purchase Cash Equivalents, U.S. Government Obligations or Other Eligible Investments
in accordance herewith and (ii) to reduce to cash any Cash Equivalents, U.S. Government Obligations
or Other Eligible Investments (without regard to maturity) in the Disbursement Account in order to
make any application or disbursement required hereunder.

     2.5 Agency. The Disbursement Agent shall act solely as the Trustee’s agent in
connection with its duties under this Agreement, notwithstanding any other provision contained
herein, without any authority to obligate the Trustee outside of the scope of the authority set
forth in this Agreement or to compromise or pledge the Collateral Agent’s security interest in the
Disbursement Account, the Disbursed Funds Account, amounts and other assets or investments credited
thereto or deposited therein, and proceeds therefrom; provided, that the Disbursement Agent
is authorized to make disbursements from the Disbursement Account on behalf of the Trustee pursuant
to the terms of this Agreement. The Issuer acknowledges and agrees that in no event shall the
Trustee or the holders of the Discount Notes be liable for, nor shall the obligations of the Issuer
under the Indenture, the Discount Notes or the other Collateral Agreements be affected or
diminished as a consequence of, any action or inaction of the Disbursement Agent with respect to
the Disbursement Account, the Disbursed Funds Account, amounts and other assets or investments
credited thereto or deposited therein, and proceeds therefrom.

     2.6 Waiver of Set-off Rights. The Disbursement Agent hereby acknowledges the
Collateral Agent’s security interest as set forth in this Agreement and the Collateral Agreements.
The Disbursement Agent hereby waives any and all Liens, claims, encumbrances and rights of set off
which it may have in the Disbursement Account, the Disbursed Funds Account, amounts and other
assets or investments credited thereto or deposited therein, and proceeds therefrom, including all
rights of set-off, deductions and Liens, whether statutory or otherwise afforded by law, agreement
or otherwise set forth herein against said accounts, amounts, assets or investments now or in the
future against any indebtedness of the Issuer to the Disbursement Agent. The waivers set forth in
this Section 2.6 are of rights which may exist now or hereafter in favor of the
Disbursement Agent in its individual capacity, and not of any such rights which may exist now or
hereafter in favor of the Disbursement Agent in its capacity as agent for the Trustee. Nothing in
this Section 2.6 shall be construed as waiving, limiting or diminishing any rights of the
Trustee or the Issuer against the Disbursement Agent or one another.

     2.7 Transfer of Funds to the Trustee. Upon the receipt of written notice executed by
the Trustee, stating that (a) an Event of Default hereunder has occurred and is continuing and (b)
the Trustee is entitled to all amounts and other assets or investments credited to or deposited in
the Disbursement Account and the Disbursed Funds Account, and proceeds therefrom (a copy of which
notice shall be sent to the Issuer concurrently therewith), the Disbursement Agent shall,

 

 

without need for further authorization or notice to the Issuer, deliver to the Trustee all
amounts and other assets or investments credited to or deposited in the Disbursement Account and
the Disbursed Funds Account, and proceeds therefrom, other than amounts the Trustee has directed
the Disbursement Agent to disburse under clauses (i) and (ii) of Section
6.3 hereof.

3. Disbursement Agent’s Compensation. All fees and expenses of the Disbursement Agent
incurred in the ordinary course of performing its responsibilities hereunder (including the
reasonable fees or expenses of Disbursement Agent’s outside counsel attributable to the negotiation
of this Agreement) shall be paid by the Company under a separate fee letter agreement. The Company
shall pay the Disbursement Agent’s customary fees and expenses in connection with investments made
by Disbursement Agent pursuant to Section 2.4. Any extraordinary fees and expenses,
including any fees or expenses (including the fees or expenses of outside counsel to the
Disbursement Agent) incurred by the Disbursement Agent in connection with a dispute over the
disbursement of amounts on deposit in the Disbursement Account or the Disbursed Funds Account or
otherwise shall be paid promptly by the Company upon receipt of a written invoice from the
Disbursement Agent. The provisions of this Section 3.3 shall survive the termination of
this Agreement.

4. Disbursement Requests and Disbursements.

     4.1 The Issuer shall have the right from time to time during the course of this Agreement (but
no more frequently than once per calendar month) to submit to the Disbursement Agent, with a copy
to the Trustee, a Facilities Disbursement Request or an Advance Disbursement Request. The
Disbursement Agent shall disburse funds from the Disbursement Account only upon (i) in the case of
a Facilities Disbursement, receipt of a fully complete and executed Facilities Disbursement
Request, substantially in the form attached hereto as Exhibit B-1 together with all
schedules and/or exhibits thereto, and confirmation that the amount of the Facilities Disbursement
Request is consistent with the total amount of the Supporting Documentation, and (ii) in the case
of an Advance Disbursement, receipt of a fully complete and executed Advance Disbursement Request,
substantially in the form attached hereto as Exhibit B-2 together with all schedules and/or
exhibits thereto.

     4.2 Upon receipt of each Disbursement Request submitted pursuant to Section 4.1, the
Disbursement Agent shall determine whether such Disbursement Request meets the requirements set
forth in Sections 4.1 and 4.5. The Disbursement Agent shall notify the Issuer and
the Trustee as soon as reasonably practicable (and in any event within one (1) Business Day after
the Disbursement Agent receives the required documents, if received before 12:00 p.m. (Minneapolis
time) on such day, and otherwise, within two (2) Business Days after such receipt) if any
Disbursement Request, or any portion thereof, is disapproved and the reason(s) therefor.

     4.3 (a) Provided that a Disbursement Request is received by the Disbursement Agent by 12:00
p.m. (Minneapolis time) and is approved by the Disbursement Agent in accordance with this
Agreement, then, within one (1) Business Day following receipt of such Disbursement Request, the
Disbursement Agent shall disburse to the Disbursed Funds Account the funds requested in such
Disbursement Request, or such portion thereof as is approved by the Disbursement Agent, in either
case subject to adjustment in accordance with Section 4.4 below.

 

 

          (b) If such Disbursement Request is received after 12:00 p.m. (Minneapolis time) and is
approved by the Disbursement Agent in accordance with this Agreement, then, within two (2) Business
Days following receipt of such Disbursement Request, the Disbursement Agent shall disburse to the
Disbursed Funds Account the funds requested in such Disbursement Request, or such portion thereof
as is approved by the Disbursement Agent, in either case subject to adjustment in accordance with
Section 4.4 below

          (c) The Issuer shall withdraw funds from and write checks on the Disbursed Funds Account
solely for the purpose of paying Expenses identified on such Disbursement Request.

     4.4 (a) Concurrently with each Facilities Disbursement Request, the Issuer shall provide all
Supporting Documentation to the Disbursement Agent. Within thirty (30 days) following the receipt
of such Supporting Documentation from the Issuer, the Disbursement Agent shall review such
Supporting Documentation and compare it to the Disbursement Request to which such Supporting
Documentation relates. If the Disbursement Agent determines that the amount disbursed pursuant to
such Disbursement Request exceeds by the lesser of (x) $1.0 million or (y) 10% the amount which
should have been disbursed pursuant to such Disbursement Request based upon such Supporting
Documentation provided by the Issuer (such excess, the “Excess Disbursement Amount”), then
(i) the Disbursement Agent shall notify the Trustee and the Issuer of such determination in writing
and (ii) the Issuer shall promptly return such Excess Disbursement Amount to the Disbursement Agent
for deposit in the Disbursement Account, and the Disbursement Agent shall not make any further
disbursements hereunder until receipt of amounts representing such Excess Disbursement Amount from
the Issuer.

          (b) Within thirty (30) days following each Advance Disbursement Request (or, if earlier,
promptly following the occurrence of a Default or an Event of Default), the Issuer shall provide
all Supporting Documentation to the Disbursement Agent. Within thirty (30 days) following the
receipt of such Supporting Documentation from the Issuer, the Disbursement Agent shall review such
Supporting Documentation and compare it to the Disbursement Request to which such Supporting
Documentation relates. If the Disbursement Agent determines that the amount disbursed pursuant to
such Disbursement Request exceeds by the lesser of (x) $1.0 million or (y) 10% the amount which
should have been disbursed pursuant to such Disbursement Request based upon such Supporting
Documentation provided by the Issuer, then (i) the Disbursement Agent shall notify the Trustee and
the Issuer of such determination in writing and (ii) the Disbursement Agent shall deduct the Excess
Disbursement Amount from the amount of funds disbursed pursuant to the next Disbursement Request
received by the Disbursement Agent. In no event shall the outstanding balance of Undocumented
Advance Disbursements from the Disbursement Account at any time exceed $10,000,000.

     4.5 Concurrently with each Facilities Disbursement Request and within thirty (30) days after
each Advance Disbursement Request, the Issuer shall deliver or cause to be delivered to the
Disbursement Agent true and complete copies of invoices or purchase orders that have been tendered
for all costs, that, individually, exceed $10,000, for which disbursement is or was requested under
such Disbursement Request (provided, that the aggregate amount of invoices, purchase orders
or Contracts omitted from being provided to the Disbursement Agent by virtue of this Section
4.5 shall not exceed $250,000 in any one Disbursement Request).

 

 

     4.6 (a) With respect to the Supporting Documentation of each Disbursement Request, the Issuer
shall submit a schedule that accurately lists each party for whom payment is requested and the
following, as applicable: (i) the name of the payee to be paid; (ii) the current payment requested;
(iii) the increase or decrease in accrued but unpaid Retainage Amount, if any, for such payee since
the last Disbursement Request (after giving effect to the payment contemplated by such Disbursement
Request); (iv) the total amount contemplated to be payable to such payee under the terms of its
applicable Contract or other agreement through completion of all work and delivery of all materials
contemplated by the Contract or other agreement (i.e., the total contract amount); (v) the
aggregate accrued Retainage Amounts which shall continue to be owed with respect to such Contract
or other agreement (after giving effect to the payment contemplated by such Disbursement Request);
or, if payment is to be made based on invoice or purchase order, confirmation that a copy of the
applicable invoice or purchase order is attached, and a description of the purpose of such payment;
and (vi) the total amount of the Disbursement Request represented by invoices or purchase orders
that do not, individually, exceed $10,000, or in the aggregate, exceed $250,000. The information
set forth in such schedules shall be true, accurate and complete.

          (b) Any schedule contemplated under this Section 4.6 or elsewhere under this Agreement
shall be submitted to the Disbursement Agent in the form of a Microsoft Excel spreadsheet (or
similar schedule in a form agreed by the parties hereto) and shall be made available
electronically.

5. Representations and Warranties.

     5.1 Officer’s Certificate as Representation and Warranty. Each Officer’s Certificate
signed on behalf of the Issuer and delivered to the Disbursement Agent and/or the Trustee pursuant
to, or in connection with, this Agreement, shall be deemed to be a representation and warranty by
the Issuer to the Disbursement Agent and/or the Trustee, as the case may be, as to the matters
covered by such certificates.

6. Disbursement Account.

     6.1 Conditions to Disbursements. Upon satisfaction of the conditions described in
this Section 6.1 and in Section 4.1, the Disbursement Agent shall make the
disbursements described in the corresponding Disbursement Request from the Disbursement Account to
the Disbursed Funds Account:

               (a) The Disbursement Agent shall have received the Disbursement Amount;

               (b) The Disbursement Agent shall have delivered the Disbursement Agent’s Closing Certificate
to the Trustee and the Issuer, and each such document shall have been executed and completed as to
the information required therein, and the required exhibits and attachments, if any, shall be
attached thereto;

               (c) The Disbursement Agent shall have received confirmation from the Issuer that the Disbursed
Funds Account has been established and a control agreement entered into with respect thereto;

 

 

               (d) The Issuer shall have submitted to the Disbursement Agent and the Trustee a Disbursement
Request, pursuant to the requirements of Section 4, that shall have been executed and
completed as to the information required therein, and the required schedules, exhibits and
attachments, if any, shall be attached;

               (e) The Disbursement Agent shall not have notice that a Default or Event of Default has
occurred and remains continuing; and

               (f) The Issuer shall have certified that any amounts deposited into the Disbursed Funds
Account pursuant to any previous Disbursement Requests (other than Advance Disbursements permitted
to be outstanding under this Agreement) shall have been paid to the respective parties (i)
identified on Schedule 1 of each such previous Facilities Disbursement Request or (ii) subsequently
identified by the Issuer to the Disbursement Agent in a schedule or schedules included in the
Supporting Documentation submitted in accordance with Section 6.2 below, except for such
limited payments relating to amounts deposited in the Disbursed Funds Account pursuant to any and
all previous Disbursement Requests withheld by the Issuer for good cause and set forth on Schedule
2 to a Facilities Disbursement Request or Schedule 1 to an Advance Disbursement Request, as
applicable (together with a brief explanation as to why such payment has been withheld).

     6.2 Advance Disbursements. Advance Disbursement Requests shall not be required to
include any Supporting Documentation; provided, that (i) within thirty (30) days after any
Advance Disbursement is made (or, if earlier, promptly following the occurrence of a Default or an
Event of Default), the Issuer shall, with respect to such Advance Disbursement, provide the
Supporting Documentation. In no event shall the outstanding balance of Undocumented Advance
Disbursements from the Disbursement Account at any time exceed $10,000,000. Concurrently with all
Disbursement Requests, the Issuer shall provide a Microsoft Excel spreadsheet (or similar schedule
in a form agreed by the parties hereto) setting forth all Undocumented Advance Disbursements.

     6.3 Disbursements after an Event of Default. In the event that a Default or Event of
Default exists and is continuing, the Disbursement Agent shall not approve any disbursement of
funds pursuant to a Disbursement Request; provided, that the following payments can be made
(and provided further, that nothing in this Section 6.3 shall limit the Trustee’s
right to the disbursement of funds from the Disbursement Account pursuant to Section 2.7):

	 	(i)	 	if all other conditions in Section 6.1 are met, funds from the
Disbursement Account may be disbursed for work completed or materials purchased on
or prior to the date that such Default or Event of Default first occurred; and
	 
	 	(ii)	 	if such condition continues for a period of three (3) consecutive months
or more, at the written request of the Issuer, funds from the Disbursement Account
may be disbursed to pay Retainage Amounts for work completed; provided, that
the Issuer certifies to the Disbursement Agent and the Trustee in writing the amount
required to be paid for such Retainage Amounts and that the conditions for paying
such amounts are met.

 

 

7. Events of Default. The occurrence of any of the following specified events shall be an
“Event of Default” hereunder:

     7.1 Indenture. A Default or an Event of Default under the Indenture (as such terms
are defined therein) has occurred and is continuing, in either case beyond the expiration of
applicable notice, grace and cure periods.

     7.2 Performance of Certain Obligations. The failure of Issuer to perform, observe or
comply in all material respects with any of its obligations under this Agreement and such failure
continues for a period of thirty (30) days after notice thereof without being cured.

     7.3 Abandonment of Facilities Rollout or Business. The Issuer shall cease (i) to use
the amounts on deposit from time to time in the Disbursement Account for the Facilities Rollout,
general corporate and other operating expenses, in accordance with the terms of this Agreement and
the Indenture or (ii) to operate the Business or shall sell or otherwise dispose of any material
interest in the Business.

8. Disbursed Funds Account.

     8.1 Rights of the Issuer to Disbursed Funds Account. All amounts disbursed from the
Disbursement Account shall be paid directly to the Disbursed Funds Account. The Disbursed Funds
Account shall be designated by the Issuer from time to time and maintained in the name of the
Issuer and all funds deposited or held in such account shall belong to the Issuer, subject to the
Lien of the Collateral Agent, against which the Issuer may draw for expenditures permitted by this
Agreement from time to time. All funds deposited and held in the Disbursed Funds Account shall,
pending disbursement in accordance with this Agreement, be invested in cash or Cash Equivalents as
directed by the Issuer, except as otherwise provided herein or in the Security Agreement. Funds in
the Disbursed Funds Account shall be disbursed solely in accordance with the terms and conditions
of, and solely for the purposes permitted under, this Agreement (including the Disbursement Request
to which such funds originally relate) and the Indenture.

     8.2 Right to Substitute Disbursed Funds Account. The Issuer from time to time shall
have the right to designate a substitute account to serve as the Disbursed Funds Account;
provided, that no such substitute account shall become the “Disbursed Funds Account” until
(a) the depository financial institution at which the substitute account is located shall have
acknowledged in a manner satisfactory to the Trustee that such institution has waived its right of
set off in such account or any Liens thereto, statutory or otherwise, and will have entered into an
account control agreement sufficient to perfect the Collateral Agent’s Lien on and security
interest in such account, and (b) the Trustee shall have received written notice of the location
and account number of such new substitute account.

9. Limitation of Liability. The Disbursement Agent’s responsibility and liability under
this Agreement shall be limited as follows: (a) the Disbursement Agent does not represent, warrant
or guaranty to the Trustee or the holders of the Discount Notes the performance by the Issuer, any
contractor or provider of materials or services in connection with the Facilities Rollout; (b) the
Disbursement Agent shall have no responsibility to the Issuer, the Trustee or the holders of the
Discount Notes as a consequence of performance by the Disbursement Agent hereunder, except

 

 

as a result of gross negligence or willful misconduct by the Disbursement Agent; (c) the Issuer
shall remain solely responsible for all aspects of the Business and the implementation and
completion of the Facilities Rollout, the accuracy of all applications for payment, and the proper
application of all disbursements; (d) the Disbursement Agent is not obligated to supervise, inspect
or inform the Issuer, the Trustee or any third party of any aspect of the Facilities Rollout; and
(e) except as set forth herein, the Disbursement Agent owes no duty of care to the Issuer, to
protect against, or to inform the Issuer of, any negligent, faulty, inadequate or defective design
or construction of the Facilities or otherwise. The Disbursement Agent shall have no duties or
obligations hereunder, except as expressly set forth herein, shall be responsible only for the
performance of such duties and obligations, shall not be required to take any action otherwise than
in accordance with the terms hereof and shall not be in any manner liable or responsible for any
loss or damage arising by reason of any act or omission to act by it hereunder or in connection
with any of the transactions contemplated hereby, including, but not limited to, any loss that may
occur by reason of forgery, false representations, the exercise of its discretion, or any other
reason, except as a result of its gross negligence or willful misconduct.

10. Indemnity. The Issuer hereby indemnifies, protects, holds harmless and agrees to
defend the Disbursement Agent and each of its officers, directors, agents and employees, from and
against any and all claims, actions, obligations, liabilities and expenses, including defense
costs, investigative fees and costs, legal fees, and claims for damages, arising from the
disbursement of funds pursuant to a Disbursement Request, the performance by the Disbursement Agent
under this Agreement, arising from the Disbursement Agent’s reliance on any Officer’s Certificate
delivered by the Issuer under this Agreement or arising from any material error, inaccuracy,
misstatement or omission of fact therein, except to the extent that such liability, expense or
claim is attributable to the gross negligence or willful misconduct of the Disbursement Agent. The
provisions of this Section 10 shall survive the termination of this Agreement or the
removal or resignation of the Disbursement Agent.

11. Termination. This Agreement shall terminate automatically thirty (30) days following
such time as all amounts in the Disbursement Account and the Disbursed Funds Account have been
distributed pursuant to and in accordance with the terms hereof; provided, that the
obligations of the Issuer under Sections 3.3 and 10 of this Agreement shall survive
termination of this Agreement.

12. Substitution or Resignation.

     12.1 Disbursement Agent. The Disbursement Agent may be removed by the Issuer or may
resign hereunder with the prior approval of the Issuer and the Trustee. A resignation or removal
of the Disbursement Agent and appointment of a successor Disbursement Agent shall become effective
only upon the successor Disbursement Agent’s acceptance of appointment as provided in this
Section 12.1.

          12.1.1 After obtaining the consent of the Issuer, the Disbursement Agent may resign in writing
at any time and be discharged from all duties hereunder upon 30 days’ written notice to all parties
hereto. The Trustee (if a different Person than the Disbursement Agent), at the request of a
majority in principal amount of the then outstanding Discount Notes, or the holders of a majority
in principal amount of the then outstanding Discount Notes, may remove

 

 

the Disbursement Agent upon 30 days written notice by so notifying the Disbursement Agent, the
Trustee and the Issuer.

          12.1.2 If the Disbursement Agent resigns or is removed or if a vacancy exists in the office of
Disbursement Agent for any reason, the Disbursement Agent shall notify the Trustee of such within
five (5) Business Days and the Trustee shall notify the holders of the Discount Notes within five
(5) Business Days of its receipt of notice from the Disbursement Agent and the Trustee (if a
different Person than the Disbursement Agent) at the request of a majority in principal amount of
the then outstanding Discount Notes, shall, and the holders of a majority in principal amount of
the then outstanding Discount Notes (if such holders provided a notice pursuant to Section
12.1.1 or if there is no Trustee capable of acting at such time) may, promptly appoint a
successor Disbursement Agent reasonably acceptable to the Issuer. Within one year after any
successor Disbursement Agent appointed by the Trustee takes office, the holders of a majority in
principal amount of the then outstanding Discount Notes may appoint a successor Disbursement Agent
reasonably acceptable to the Issuer to replace the Disbursement Agent appointed by the Trustee.

          12.1.3 If a successor Disbursement Agent does not take office within 60 days after the
retiring Disbursement Agent resigns or is removed, the retiring Disbursement Agent, the Trustee,
the Issuer or the holders of at least 25% in principal amount of the then outstanding Discount
Notes may petition, at the expense of the Issuer, any court of competent jurisdiction for the
appointment of a successor Disbursement Agent.

          12.1.4 A successor Disbursement Agent shall deliver a written acceptance of its appointment to
the retiring Disbursement Agent, the Issuer and the Trustee. Thereupon, the resignation or removal
of the retiring Disbursement Agent shall become effective, and the successor Disbursement Agent
shall have all the rights, powers and duties of the Disbursement Agent under this Agreement. The
retiring Disbursement Agent shall promptly transfer all property held by it as Disbursement Agent
to the successor Disbursement Agent.

          12.1.5 If the Disbursement Agent consolidates, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation or association, the
successor corporation without any further act shall be the successor Disbursement Agent.

          12.1.6 The Disbursement Agent shall at all times be a bank chartered under the laws of the
United States of America or of any state thereof that is authorized under such laws to exercise
corporate trust power, that is subject to supervision or examination by federal or state
authorities and that has a combined capital and surplus of at least $100 million as set forth in
its most recent published annual report of condition and a Thomson’s BankWatch rating of “B” or
better.

13. Account Statement. On the first business day of each and every calendar month, the
Disbursement Agent shall make available to the Issuer and the Trustee a statement prepared by the
Disbursement Agent in a form reasonably satisfactory to the Trustee and the Issuer, setting forth
with reasonable particularity the balance of funds then in each of the Disbursement Account and the
manner in which such funds are invested.

 

 

14. Notice of Balance Reduction. The parties hereto irrevocably instruct the Disbursement
Agent that on the first date upon which the balance of the Disbursement Account is reduced to zero,
the Disbursement Agent shall deliver to the Trustee and the Issuer a notice that the balance in
such account has been reduced to zero.

15. Miscellaneous.

     15.1 Waiver. Any party hereto may specifically waive any breach of this Agreement by
any other party, but no such waiver shall be deemed to have been given unless such waiver is in
writing, signed by the waiving party and specifically designates the breach waived, nor shall any
such waiver constitute a continuing waiver of similar or other breaches.

     15.2 Invalidity; Separability. If, for any reason whatsoever, any one or more of the
provisions of this Agreement shall be held or deemed to be inoperative, unenforceable or invalid in
a particular case or in all cases, such circumstances shall not have the effect of rendering any of
the other provisions of this Agreement inoperative, unenforceable or invalid, and the inoperative,
unenforceable or invalid provision shall be construed as if it were written so as to effectuate, to
the maximum extent possible, the parties’ intent.

     15.3 No Authority. Except as set forth herein, the Disbursement Agent shall have no
authority to, and shall not, make any warranty or representation or incur any obligation on behalf
of, or in the name of, the Trustee.

     15.4 Assignment. This Agreement is personal to the parties hereto, and the rights and
duties of any party hereunder shall not be assignable except with the prior written consent of the
other parties hereto. In any event, this Agreement shall inure to and be binding upon the parties
and their successors and permitted assigns.

     15.5 Benefit. The parties hereto, the holders from time to time of the Discount
Notes, and their respective successors and assigns, but no others, shall be bound hereby and
entitled to the benefits hereof.

     15.6 Time. Time is of the essence of each provision of this Agreement.

     15.7 Governing Law; Waiver of Jury Trial. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York applicable to contracts made and to
be performed in the State of New York, including Sections 5-1401 and 5-1402 of the New York General
Obligations Law and New York Civil Practice Laws and Rules 327(b), but without regard to principles
of conflicts of laws.

Each of the Issuer, the Disbursement Agent and the Trustee hereby irrevocably waives, to the
fullest extent permitted by applicable law, any and all right to trial by jury in any legal
proceeding arising out of or relating to this Agreement or the transaction contemplated hereby.

     15.8 Entire Agreement; Amendments. This Agreement (together with the Indenture and
the Collateral Agreements) contains the entire agreement among the parties with respect to the
subject matter hereof and supersedes any and all prior agreements, understandings and

 

 

commitments, whether oral or written. This Agreement may be amended only by a writing signed
by duly authorized representatives of all parties.

     15.9 Notices. All notices and other communications required or permitted to be given
or made under this Agreement shall be in writing and shall be deemed to have been duly given and
received, regardless of when and whether received, either (a) on the day of hand delivery; (b) on
the date of confirmation of receipt of facsimile transmission; or (c) on the third day after sent,
when sent by United States certified mail, postage and certification fee prepaid, return receipt
requested, addressed as follows:

     If to the Issuer:

IDLEAIRE TECHNOLOGIES CORPORATION

410 North Cedar Bluff Road, Suite 200

Knoxville, Tennessee 37923

Attention: Chief Financial Officer

Fax Number: (865) 342-3650

     If to the Disbursement Agent or the Trustee:

WELLS FARGO BANK, NATIONAL ASSOCIATION

Sixth Street and Marquette Avenue

Minneapolis, Minnesota 55479

Attention: Corporate Trust Department

                  MAC N9303-120

Fax Number: (612) 667-9825

or at such other address as the specified entity most recently may have designated in writing in
accordance with this paragraph to the other parties hereto. Any notice to the Disbursement Agent
or the Trustee under this Agreement shall be deemed effective only upon receipt.

     15.10 Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed an original but all of which together shall constitute one and the same
instrument.

     15.11 Captions. Captions in this Agreement are for convenience only and shall not be
considered, construed or given meaning in resolving questions of interpretation of this Agreement.

     15.12 Right to Consult Counsel. Each of the Disbursement Agent and the Trustee may,
if any of them deems necessary or appropriate, consult with and be advised by counsel in respect of
their duties hereunder. Each of the Disbursement Agent or the Trustee shall be entitled to
conclusively rely upon the advice of its counsel in any action taken in its capacity as the
Disbursement Agent or the Trustee, as the case may be, hereunder and shall be protected from any
liability of any kind for actions taken in reasonable reliance upon such opinion of its counsel.
The Issuer agrees to pay all such reasonable counsel fees and expenses.

 

 

     15.13 Force Majeure. In no event shall the Disbursement Agent be responsible or
liable for any failure or delay in the performance of its obligations hereunder arising out of or
caused by, directly or indirectly, forces beyond its control, including strikes, work stoppages,
accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software and hardware) services; it being understood that the Disbursement Agent shall
use reasonable efforts which are consistent with accepted practices in the banking industry to
resume performance as soon as practicable under the circumstances.

 

 

     IN WITNESS WHEREOF, the parties hereto have executed and delivered this Disbursement Agreement
as of the date first above written.

	 	 	 	 	 
	 	Very truly yours,

IDLEAIRE TECHNOLOGIES CORPORATION

 	 
	 	By:  	/s/ Michael C. Crabtree
 	 
	 	 	Name:  	Michael C. Crabtree 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

	 	 	 	 	 
	AGREED AND ACCEPTED:	 	 
	 
	 	 	 	 
	WELLS FARGO BANK,
NATIONAL ASSOCIATION,
   
as Disbursement Agent	 	 
	 
	 	 	 	 
	By:

	 	/s/ Lynn M. Steiner
 

Name: Lynn M. Steiner
	 	 
	 

	 	Title: Vice President	 	 
	 
	 	 	 	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION,
   
as Trustee
	 
	 	 	 	 
	By:

	 	/s/ Lynn M. Steiner
 

Name: Lynn M. Steiner
	 	 
	 

	 	Title: Vice President

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