Document:

exv4w1

 

OMNIBUS INSTRUMENT

     WHEREAS, the parties named herein desire to enter into certain Program Documents contained
herein, each such document dated as of this 7th day of October, 2005, relating to the
issuance by Principal Life Income Fundings Trust 2005-104 (the “Trust”) of Notes to investors under
Principal Life’s secured notes program;

     WHEREAS, the Trust is a trust and will be organized under and its activities will be governed
by the provisions of the Trust Agreement (set forth in Section A of this Omnibus Instrument), dated
as of the date of the Pricing Supplement (attached to this Omnibus Instrument as Exhibit D)
(the “Pricing Supplement”), by and between the parties thereto indicated in Section F herein;

     WHEREAS, certain expense and indemnification arrangements between Principal Life and the
Trustee, on behalf of itself and on behalf of the Trust, are governed pursuant to the provisions of
the Expense and Indemnity Agreement dated as of March 5, 2004, by and between Principal Life and
the Trustee;

     WHEREAS, certain licensing arrangements between the Trust and Principal Financial Services,
Inc. will be governed pursuant to the provisions of the License Agreement (set forth in Section B
of this Omnibus Instrument), dated as of the date of the Pricing Supplement, by and between the
parties thereto indicated in Section F herein;

     WHEREAS, certain custodial arrangements of the Funding Agreement and the Guarantee will be
governed pursuant to the provisions of the Custodial Agreement (the “Custodial Agreement”) dated as
of March 5, 2004 by and among Bankers Trust Company, N.A., acting as custodian (the “Custodian”),
the Indenture Trustee and the Trustee, on behalf of the Trust;

     WHEREAS, the Notes will be issued pursuant to the Indenture (set forth in Section C of this
Omnibus Instrument), dated as of the Original Issue Date, by and between the parties thereto
indicated in Section F herein;

     WHEREAS, the sale of the Notes will be governed by the Terms Agreement (set forth in Section D
of this Omnibus Instrument), dated the date of the Pricing Supplement, by and among the parties
thereto indicated in Section F herein; and

     WHEREAS, certain agreements relating to the Notes, the Funding Agreement and the Guarantee are
set forth in the Coordination Agreement (set forth in Section E of this Omnibus Instrument), dated
as of the date of the Pricing Supplement, by and among the parties thereto indicated in Section F
herein.

     All capitalized terms used herein and not otherwise defined will have the meanings set forth
in the Indenture.

[Remainder of Page Intentionally Left Blank.]

 

 

SECTION A

TRUST AGREEMENT

     This TRUST AGREEMENT (this “Trust Agreement”), dated as of the date of the
Pricing Supplement, is entered into by and between GSS Holdings II, Inc., a
Delaware corporation, as trust beneficial owner (the “Trust Beneficial Owner”),
and U.S. Bank Trust National Association, a national banking association, as
Trustee (the “Trustee”).

W I T N E S S E T H:

     WHEREAS, the Trust Beneficial Owner and the Trustee desire to authorize
the issuance of a Trust Beneficial Interest and a series of Notes in connection
with the entry into this Trust Agreement;

     WHEREAS, all things necessary to make this Trust Agreement a valid and
legally binding agreement of the Trustee and the Trust Beneficial Owner,
enforceable in accordance with its terms, have been done;

     WHEREAS, the parties intend to provide for, among other things, (i) the
issuance and sale of the Notes (pursuant to the Indenture, the Distribution
Agreement and the related Terms Agreement) and the Trust Beneficial Interest,
(ii) the use of the proceeds of the sale of the Notes and Trust Beneficial
Interest to acquire the Funding Agreement, the payment obligations of which
will be fully and unconditionally guaranteed by the Guarantee, and (iii) all
other actions deemed necessary or desirable in connection with the transactions
contemplated by this Trust Agreement; and

     WHEREAS, the parties hereto desire to incorporate by reference those
certain Standard Trust Terms, dated as of March 5, 2004, and attached to the
Omnibus Instrument as Exhibit A (the “Standard Trust Terms”) and all
capitalized terms not otherwise defined herein (including the recitals hereof)
shall have the meanings set forth in the Standard Trust Terms (the Standard
Trust Terms and this Trust Agreement, collectively, the “Trust Agreement”).

     NOW, THEREFORE, in consideration of the agreements and obligations set
forth herein and for other good and valuable consideration, the sufficiency of
which are hereby acknowledged, each party hereby agrees as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. All terms, provisions and
agreements set forth in the Standard Trust Terms (except to the extent
expressly modified herein) are hereby incorporated herein by reference with the
same force and effect as though fully set forth herein. To the extent that the
terms set forth in Article 2 of this Trust Agreement are inconsistent with the
terms of the Standard Trust Terms, the terms set forth in Article 2 herein
shall apply.

A-1

 

ARTICLE 2

     Section 2.01 Name. The Trust created and governed by the Trust Agreement
shall be the trust specified in the Omnibus Instrument. The name of the Trust
shall be the name specified in the first paragraph of the Omnibus Instrument,
as such name may be modified from time to time by the Trustee following written
notice to the Trust Beneficial Owner.

     Section 2.02 Jurisdiction. The Trust is hereby organized in, and formed
under and pursuant to, the laws of the State of New York.

     Section 2.03 Initial Capital Contribution and Ownership. The Trust
Beneficial Owner has paid or has caused to be paid to, or to an account at the
direction of, the Trustee, on the date hereof, the sum of $15 (or, in the case
of Notes issued with original issue discount, such amount multiplied by the
issue price of the Notes). The Trustee hereby acknowledges receipt in trust
from the Trust Beneficial Owner, as of the date hereof, of the foregoing
contribution, which shall be used along with the proceeds from the sale of the
series of Notes to purchase the Funding Agreement. Upon the creation of the
Trust and the registration of the Trust Beneficial Interest in the Securities
Register (as defined in the Trust Agreement) by the Registrar in the name of
the Trust Beneficial Owner, the Trust Beneficial Owner shall be the sole
beneficial owner of the Trust.

     Section 2.04 Acknowledgment. The Trustee, on behalf of the Trust,
expressly acknowledges its duties and obligations set forth in the Standard
Trust Terms incorporated herein.

     Section 2.05 Additional Terms.

     None

     Section 2.06 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to the Trust Agreement will enter into the Trust Agreement by
executing the Omnibus Instrument.

     By executing the Omnibus Instrument, the Trustee and the Trust Beneficial
Owner hereby agree that the Trust Agreement will constitute a legal, valid and
binding agreement between the Trustee and the Trust Beneficial Owner.

     All terms relating to the Trust or the series of Notes not otherwise
included in the Trust Agreement will be as specified in the Omnibus Instrument
or Pricing Supplement, as indicated herein.

A-2

 

     Section 2.07 Governing Law. The Trust Agreement will be governed by, and
construed in accordance with, the laws of the State of New York.

     Section 2.08 Counterparts. The Trust Agreement, through the Omnibus
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

[Remainder of Page Intentionally Left Blank.]

A-3

 

SECTION B

LICENSE AGREEMENT

     This LICENSE AGREEMENT (this “License Agreement”), dated as of the date of
the Pricing Supplement, is entered into by and between Principal Financial
Services, Inc., an Iowa corporation with its principal place of business at 711
High Street, Des Moines, Iowa 50392 (the “Licensor”), and the Principal Life
Income Fundings Trust specified in the Omnibus Instrument (the “Licensee”).

W I T N E S S E T H:

     WHEREAS, the Licensor is the owner of certain trademarks and service marks
and registrations and pending applications therefor, and may acquire additional
trademarks and service marks in the future, all as described more fully below;

     WHEREAS, the Licensee desires to use certain of the Licensor’s trademarks
and service marks in connection with the Licensee’s activities, as described
more fully below;

     WHEREAS, the Licensor and the Licensee wish to formalize the agreement
between them regarding the Licensee’s use of the Licensor’s marks; and

     WHEREAS, the parties hereto desire to incorporate by reference those
certain Standard License Agreement Terms, dated March 5, 2004, and attached to
the Omnibus Instrument as Exhibit B (the “Standard License Agreement Terms”)
and all capitalized terms not otherwise defined herein (including the recitals
hereof) shall have the meanings set forth in the Standard License Agreement
Terms (the Standard License Agreement Terms and this License Agreement,
collectively, the “License Agreement”).

     NOW, THEREFORE, in consideration of the mutual promises set forth herein
and for other good and valuable consideration, the sufficiency and receipt of
which are hereby acknowledged, each party hereby agrees as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. All terms, provisions and
agreements set forth in the Standard License Agreement Terms (except to the
extent expressly modified herein) are hereby incorporated herein by reference
with the same force and effect as though fully set forth herein. To the extent
that the terms set forth in Article 2 of this License Agreement are
inconsistent with the terms of the Standard License Agreement Terms, the terms
set forth in Article 2 herein shall apply.

ARTICLE 2

     Section 2.01 Additional Terms.

     None

B-1

 

     Section 2.02 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to the License Agreement will enter into the License Agreement
by executing the Omnibus Instrument.

     By executing the Omnibus Instrument, the Licensor and the Licensee hereby
agree that the License Agreement will constitute a legal, valid and binding
agreement between the Licensor and the Licensee.

     All terms relating to the Trust or the Notes not otherwise included in the
License Agreement will be as specified in the Omnibus Instrument or Pricing
Supplement, as indicated herein.

     Section 2.03 Counterparts. The License Agreement, through the Omnibus
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

[Remainder of Page Intentionally Left Blank.]

B-2

 

SECTION C

INDENTURE

     This INDENTURE (this “Indenture”) is entered into as of the Original Issue
Date by and between the Principal Life Income Fundings Trust specified in the
Omnibus Instrument (the “Trust”) and Citibank, N.A., as indenture trustee (the
“Indenture Trustee”).

     Citibank, N.A., in its capacity as indenture trustee, hereby accepts its
role as Registrar, Paying Agent, Transfer Agent and Calculation Agent
hereunder.

     References herein to “Indenture Trustee,” “Registrar,” “Transfer Agent,”
“Paying Agent” or “Calculation Agent” shall include the permitted successors
and assigns of any such entity from time to time.

W I T N E S S E T H:

     WHEREAS, the Trust has duly authorized the execution and delivery of this
Indenture to provide for the issuance of Notes;

     WHEREAS, all things necessary to make this Indenture a valid and legally
binding agreement of the Trust and the other parties to this Indenture,
enforceable in accordance with its terms, have been done, and the Trust
proposes to do all things necessary to make the Notes, when executed by the
Trust and authenticated and delivered pursuant hereto, valid and legally
binding obligations of the Trust as hereinafter provided; and

     WHEREAS, the parties hereto desire to incorporate by reference those
certain Standard Indenture Terms, dated as of March 5, 2004, and attached to
the Omnibus Instrument as Exhibit C (the “Standard Indenture Terms”) and all
capitalized terms not otherwise defined herein (including the recitals hereof)
shall have the meanings set forth in the Standard Indenture Terms (the Standard
Indenture Terms and this Indenture, collectively, the “Indenture”).

     NOW, THEREFORE, for and in consideration of the premises and the purchase
of the Notes by the Holders thereof, it is mutually covenanted and agreed by
each of the parties hereto as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. All terms, provisions and
agreements set forth in the Standard Indenture Terms (except to the extent
expressly modified herein) are hereby incorporated herein by reference (with
the same force and effect as though fully set forth herein). To the extent
that the terms set forth in Article 2 of this Indenture are inconsistent with
the terms of the Standard Indenture Terms, the terms set forth in Article 2
herein shall apply.

C-1

 

ARTICLE 2

     Section 2.01 Agreement to be Bound. Each of the Trust, the Indenture
Trustee, the Registrar, the Transfer Agent, the Paying Agent and the
Calculation Agent hereby agrees to be bound by all of the terms, provisions and
agreements set forth in the Indenture, with respect to all matters contemplated
in the Indenture, including, without limitation, those relating to the issuance
of the below-referenced Notes.

     Section 2.02 Designation of the Trust, the Notes, the Funding Agreement
and the Guarantee. The Trust created by the Trust Agreement and referred to in
the Indenture is the Principal Life Income Fundings Trust specified in the
Omnibus Instrument. The Notes issued by the Trust and governed by the
Indenture shall be the Notes specified in the Pricing Supplement. The Funding
Agreement designated hereby is the Funding Agreement designated in the Pricing
Supplement dated as of the Original Issue Date between the Trust and Principal
Life. The Guarantee designated hereby is the Guarantee dated as of the Original
Issue Date of PFG.

     Section 2.03 Additional Terms.

     None

     Section 2.04 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to the Indenture will enter into the Indenture by executing
the Omnibus Instrument.

     By executing the Omnibus Instrument, the Indenture Trustee, the Registrar,
the Transfer Agent, the Paying Agent, the Calculation Agent and the Trust
hereby agree that the Indenture will constitute a legal, valid and binding
agreement between the Indenture Trustee, the Registrar, the Transfer Agent, the
Paying Agent, the Calculation Agent and the Trust.

     All terms relating to the Trust or the Notes not otherwise included in the
Indenture will be as specified in the Omnibus Instrument or Pricing Supplement,
as indicated herein.

     Section 2.05 Counterparts. The Indenture, through the Omnibus Instrument,
may be executed in any number of counterparts, each of which counterparts shall
be deemed to be an original, and all of which counterparts shall constitute one
and the same instrument.

[Remainder of Page Intentionally Left Blank.]

C-2

 

SECTION D

TERMS AGREEMENT

     This TERMS AGREEMENT (this “Terms Agreement”) is entered into as of the
Original Issue Date by and among Principal Life Insurance Company (“Principal
Life”), Principal Financial Group, Inc. (“PFG”), the Principal Life Income
Fundings Trust specified in the Omnibus Instrument (the “Trust”) and the
Purchasing Agent specified in the Pricing Supplement (the “Purchasing Agent”).

W I T N E S S E T H:

     WHEREAS, Principal Life, PFG and the agents named therein, including the
Purchasing Agent have entered into that certain Distribution Agreement dated
March 5, 2004 (the “Distribution Agreement”).

     NOW, THEREFORE, in consideration of the mutual promises set forth herein
and other good and valuable consideration, the sufficiency and receipt of which
are hereby acknowledged, each of the parties hereby agrees as follows:

ARTICLE 1

     Section 1.01 Incorporation by Reference. The provisions of the
Distribution Agreement and the related definitions (unless otherwise specified
herein) are incorporated by reference herein and shall be deemed to have the
same force and effect as if set forth in full herein.

ARTICLE 2

     Section 2.01 Addition of Trust as Party to Distribution Agreement.

     Pursuant to Section 1 of the Distribution Agreement, each of the
undersigned parties hereby acknowledges and agrees that the Trust, upon
execution hereof by the Trust and the other parties to the Distribution
Agreement (other than any other trusts organized in connection with the
Registration Statement that are party thereto as of the date hereof), shall
become a Trust for purposes of the Distribution Agreement in accordance with
the terms thereof, in respect of the Notes, with all the authority, rights,
powers, duties and obligations of a Trust under the Distribution Agreement.
The Trust confirms that any agreement, covenant, acknowledgment, representation
or warranty under the Distribution Agreement applicable to the Trust is made by
the Trust at the date hereof, unless another time or times are specified in the
Distribution Agreement, in which case such agreement, covenant, acknowledgment,
representation or warranty shall be deemed to be confirmed by the Trust at such
specified time or times.

     Section 2.02 Purchase of Notes as Principal.

     (a) Subject in all respects to the terms and conditions of the
Distribution Agreement, the Trust hereby agrees to sell to the Purchasing Agent
and the Purchasing Agent hereby agrees to purchase the Notes having the terms
specified in the Pricing Supplement relating to such Notes.

D-1

 

     (b) In connection with any purchase of Notes from the Trust by the
Purchasing Agent as principal, the parties agrees that the items specified on
Schedule I of the Omnibus Instrument will be delivered as of the Settlement
Date.

     Section 2.03 Termination. Upon the termination of this Terms Agreement
pursuant to Section 13(b) of the Distribution Agreement the undersigned parties
hereby agree to that the expenses reasonably incurred prior to or in connection
with such termination will be borne by Principal Life and PFG.

     Section 2.04 Governing Law. This Terms Agreement shall be governed by and
construed in accordance with the laws of the State of New York without regard
to the principles of conflicts of laws thereof.

     Section 2.05 Notices. For purposes of Section 14 of the Distribution
Agreement, the Trust’s communications details are as set forth in Section E of
the Omnibus Instrument.

     Section 2.06 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to this Terms Agreement will enter into this Terms Agreement
by executing the Omnibus Instrument.

     By executing the Omnibus Instrument, each party hereto agrees that this
Terms Agreement will constitute a legal, valid and binding agreement by and
among such parties.

     All terms relating to the Trust or the Notes not otherwise included in
this Terms Agreement will be as specified in the Omnibus Instrument or Pricing
Supplement, as indicated herein.

     Section 2.07 Counterparts. This Terms Agreement, through the Omnibus
Instrument, may be executed in any number of counterparts, each of which
counterparts shall be deemed to be an original, and all of which counterparts
shall constitute but one and the same instrument.

[Remainder of Page Intentionally Left Blank.]

D-2

 

SECTION E

COORDINATION AGREEMENT

     This COORDINATION AGREEMENT (this “Coordination Agreement”), dated as of
the date of the Pricing Supplement, is entered into by and among Principal Life
Insurance Company (“Principal Life”), Principal Financial Group, Inc. (“PFG”),
the Principal Life Income Fundings Trust specified in the Omnibus Instrument
(the “Trust”), Principal Financial Services, Inc. (“PFSI”), Bankers Trust
Company, N.A. and Citibank, N.A., as indenture trustee (the “Indenture
Trustee”).

W I T N E S S E T H

     WHEREAS, the Trust will enter into the Funding Agreement with Principal
Life dated as of the Original Issue Date specified in the Pricing Supplement;

     WHEREAS, PFG will issue a Guarantee to the Trust as of the Original Issue
Date specified in the Pricing Supplement, which will fully and unconditionally
guarantee the payment obligations of Principal Life under the Funding
Agreement;

     WHEREAS, the Purchasing Agent (as defined in the Distribution Agreement)
have agreed to sell the Notes in accordance with the Registration Statement;

     WHEREAS, the Trust intends to issue the Notes in accordance with the
Indenture, to collaterally assign to, and grant a security interest in, the
Funding Agreement and the Guarantee to and in favor of the Indenture Trustee in
accordance with the Indenture to secure payment of the Notes;

     WHEREAS, the Custodian will hold the Funding Agreement and the Guarantee
on behalf of the Indenture Trustee pursuant to the terms of the Custodial
Agreement; and

     WHEREAS, certain licensing arrangements between the Trust and PFSI will be
governed pursuant to the provisions of the License Agreement.

     NOW, THEREFORE, to give effect to the agreements and arrangements
established under the Terms Agreement included in the Omnibus Instrument, as
applicable, the Trust Agreement, the Indenture and the Notes, and in
consideration of the agreements and obligations set forth herein and for other
good and valuable consideration, the sufficiency of which are hereby
acknowledged, each party hereby agrees as follows:

ARTICLE 1

     Section 1.01 Delivery of the Funding Agreement and the Guarantee. The
Trust hereby authorizes the Custodian, on behalf of the Indenture Trustee, to
receive the Funding Agreement from Principal Life and the Guarantee from PFG
pursuant to the assignment of the Funding Agreement and Guarantee (the
“Assignment”), to be entered into on the Original Issue Date, included in the
closing instrument dated as of the Original Issue Date (the “Closing
Instrument”).

E-1

 

     Section 1.02 Issuance and Purchase of the Notes.

     (a) Delivery of the Funding Agreement and the Guarantee to the Custodian,
on behalf of the Indenture Trustee, pursuant to the Assignment or execution of
the cross receipt contained in the Closing Instrument shall be confirmation of
payment by the Trust for the Funding Agreement.

     (b) The Trust hereby directs the Indenture Trustee, upon receipt by the
Custodian, on behalf of the Indenture Trustee, of the Funding Agreement
pursuant to the Assignment and upon receipt by the Custodian, on behalf of the
Indenture Trustee, of the Guarantee, (i) to authenticate the certificates
representing the Notes (the “Notes Certificates”) in accordance with the
Indenture and (ii) to (A) deliver each relevant Notes Certificate to the
clearing system or systems identified in each such Notes Certificate, or to the
nominee of such clearing system, or the custodian thereof, for credit to such
accounts as the Purchasing Agent may direct, or (B) deliver each relevant Notes
Certificate to the purchasers thereof as identified by the Purchasing Agent.

ARTICLE 2

     Section 2.01 Directions Regarding Periodic Payments. As registered owner
of the Funding Agreement and the Guarantee as collateral securing payments on
the Notes, the Indenture Trustee will receive payments on the Funding Agreement
and the Guarantee on behalf of the Trust. The Trust hereby directs the
Indenture Trustee to use such funds to make payments on behalf of the Trust
pursuant to the Trust Agreement and the Indenture.

     Section 2.02 Maturity of the Funding Agreement. Upon the maturity of the
Funding Agreement and the return of funds thereunder, the Trust hereby directs
the Indenture Trustee to set aside from such funds an amount sufficient for the
repayment of the outstanding principal on the Notes and Trust Beneficial
Interest when due.

ARTICLE 3

     Section 3.01 Certificates. Principal Life hereby agrees to deliver an
Officer’s Certificate, a copy of which is attached hereto as Exhibit E, on a
quarterly basis to any rating agency currently rating the Program. The Trust
hereby agrees to deliver an Officer’s Certificate, a copy of which is attached
hereto as Exhibit F, on a quarterly basis to any rating agency currently rating
the Program.

     Section 3.02 Filings. Principal Life hereby covenants to file, or cause
to be filed, in a timely manner on behalf of the Trust all reports,
certifications or similar filings required under the Securities Exchange Act of
1934, as amended.

ARTICLE 4

     Section 4.01 No Additional Liability. Nothing in this Coordination
Agreement shall impose any liability or obligation on the part of any party to
this Coordination Agreement to make any payment or disbursement in addition to
any liability or obligation such party has under the Program Documents, except
to the extent that a party has actually received funds which it is obligated to
disburse pursuant to this Coordination Agreement.

E-2

 

     Section 4.02 No Conflict. This Coordination Agreement is intended to be
in furtherance of the agreements reflected in the documents related to the
Program Documents, and not in conflict. To the extent that a provision of this
Coordination Agreement conflicts with the provisions of one or more Program
Documents, the provisions of such Program Documents shall govern.

     Section 4.03 Governing Law. This Coordination Agreement shall be governed
by and construed in accordance with the laws of the State of New York without
regard to the principles of conflicts of laws thereof.

     Section 4.04 Severability. If any provision in this Coordination
Agreement shall be invalid, illegal or unenforceable, such provision shall be
deemed severable from the remaining provisions of this Coordination Agreement
and shall in no way affect the validity or enforceability of such other
provisions of this Coordination Agreement.

     Section 4.05 Severability. If any provision in this Coordination
Agreement shall be invalid, illegal or unenforceable, such provision shall be
deemed severable from the remaining provisions of this Coordination Agreement
and shall in no way affect the validity or enforceability of such other
provisions of this Coordination Agreement.

     Section 4.06 Notices. All demands, notices and communications under this
Coordination Agreement shall be in writing and shall be deemed to have been
duly given upon receipt at the addresses set forth below:

	 	 	 
	To the Trust:
	 	 
	 
	

	 	Principal Life Income Fundings
Trust (followed by the number set forth in the Omnibus Instrument)
	

	 	c/o U.S. Bank Trust National Association
	

	 	100 Wall Street, 16th Floor
	

	 	New York, New York 10005
	

	 	Attention: Corporate Trust Administration
	

	 	Telephone: (212) 361-2458
	

	 	Facsimile: (212) 809-5459 and (212) 509-3384
	 
	To the Indenture Trustee:
	 	 
	 
	

	 	Citibank, N.A.
	

	 	Citibank Agency & Trust
	

	 	388 Greenwich Street, 14th Floor
	

	 	New York, New York 10013
	

	 	Attention: Nancy Forte
	

	 	Telephone: (212) 816-5685
	

	 	Facsimile: (212) 816-5527

E-3

 

	 	 	 
	To Principal Life:

	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: General Counsel
	

	 	Telephone: (515) 247-5111
	

	 	Facsimile: (515) 248-3011
	 
	 	 	With a copy to:

	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: Jim Fifield
	

	 	Telephone: (515) 248-9196
	

	 	Facsimile: (515) 235-9353
	 
	To PFG:

	 
	

	 	Principal Financial Group, Inc.
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: General Counsel
	

	 	Telephone: (515) 247-5111
	

	 	Facsimile: (515) 248-3011
	 
	 	 	With a copy to:
	 	 
	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: Jim Fifield
	

	 	Telephone: (515) 248-9196
	

	 	Facsimile: (515) 235-9353
	 
	To Principal Financial
Services, Inc.:
	 	 
	 
	

	 	Principal Financial Services, Inc.
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: General Counsel
	

	 	Telephone: (515) 247-5111
	

	 	Facsimile: (515) 248-3011

E-4

 

	 	 	 
	 	 	With a copy to:
	 	 
	 
	

	 	Principal Life Insurance Company
	

	 	711 High Street
	

	 	Des Moines, Iowa 50392
	

	 	Attention: Jim Fifield
	

	 	Telephone: (515) 248-9196
	

	 	Facsimile: (515) 235-9353
	 
	To Bankers Trust Company, N.A:
	 	 
	 
	

	 	Bankers Trust Company, N.A.
	

	 	665 Locust Street
	

	 	Des Moines, Iowa 50309-3702
	

	 	Attention: Angela C. Brick
	

	 	Telephone: (515) 245-2820
	

	 	Facsimile: (515) 247-2101

or at such other address as shall be designated by any such party in a written
notice to the other parties.

ARTICLE 5

     Section 5.01 Omnibus Instrument; Execution and Incorporation of Terms.

     The parties to this Coordination Agreement will enter into this
Coordination Agreement by executing the Omnibus Instrument.

     By executing the Omnibus Instrument, each party hereto agrees that this
Coordination Agreement will constitute a legal, valid and binding agreement by
and among the Trust, Principal Life, PFG, PFSI, the Custodian and the Indenture
Trustee.

     All terms relating to the Trust or the Notes not otherwise included in
this Coordination Agreement will be as specified in the Omnibus Instrument or
Pricing Supplement, as indicated herein.

     Section 5.02 Acknowledgment. Principal Life hereby acknowledges Section
2.10 of the Indenture and Section 6.1 of the Custodial Agreement. The Trust
hereby acknowledges and agrees to the terms of the Custodial Agreement.

     Section 5.03 Counterparts. This Coordination Agreement, through the
Omnibus Instrument, may be executed in any number of counterparts, each of
which counterparts shall be deemed to be an original, and all of which
counterparts shall constitute but one and the same instrument.

     Section 5.04 Capitalized Terms. All capitalized terms used herein and not
otherwise defined in this Coordination Agreement will have the meanings set
forth in the Indenture.

[Remainder of Page Intentionally Left Blank.]

E-5

 

SECTION F

MISCELLANEOUS AND EXECUTION PAGES

     This Omnibus Instrument may be executed by each of the parties hereto in any number of
counterparts, and by each of the parties hereto on separate counterparts, each of which
counterparts, when so executed and delivered, shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

     Each signatory, by its execution hereof, does hereby become a party to each of the agreements
or indenture identified for such party as of the date specified in such agreements or indenture.

     IN WITNESS WHEREOF, the undersigned have executed this Omnibus Instrument with respect to the
Notes as of the date first written above.

	 	 	 	 	 	 	 
	 	 	PRINCIPAL LIFE INSURANCE COMPANY (in executing below
agrees and becomes a party to (i) the Terms Agreement
set forth in Section D herein and (ii) the Coordination
Agreement set forth in Section E herein)
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Christopher P. Freese
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Christopher P. Freese
	 

	 	 	 	Title:
	 	Officer
	 
	 	 	 	 	 	 
	 	 	PRINCIPAL FINANCIAL GROUP, INC. (in executing below
agrees and becomes a party to (i) the Terms Agreement
set forth in Section D herein and (ii) the Coordination
Agreement set forth in Section E herein)
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Elizabeth D. Swanson
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Elizabeth D. Swanson
	 

	 	 	 	Title:
	 	Counsel
	 
	 	 	 	 	 	 
	 	 	PRINCIPAL FINANCIAL SERVICES, INC. (in executing below
agrees and becomes a party to (i) the License Agreement
set forth in Section B herein and (ii) the Coordination
Agreement set forth in Section E herein)
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Elizabeth D. Swanson
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Elizabeth D. Swanson
	 

	 	 	 	Title:
	 	Counsel

[Execution Page 1 of 3]

 

 

	 	 	 	 	 	 	 
	 	 	THE PRINCIPAL LIFE INCOME FUNDINGS TRUST DESIGNATED IN
THIS OMNIBUS INSTRUMENT (in executing below agrees and
becomes a party to (i) the License Agreement set forth
in Section B herein, (ii) the Indenture set forth in
Section C herein, (iii) the Terms Agreement set forth
in Section D herein and (iv) the Coordination Agreement
set forth in Section E herein)
	 
	 	 	 	 	 	 
	 	 	By: U.S. Bank Trust National Association, not in its
individual capacity but solely in its capacity as
trustee of the Trust
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Thomas E. Tabor
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Thomas E. Tabor
	 

	 	 	 	Title:
	 	Vice President
	 
	 	 	 	 	 	 
	 	 	U.S. BANK TRUST NATIONAL ASSOCIATION (in executing
below agrees and becomes a party to the Trust Agreement
set forth in Section A herein), as Trustee
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Thomas E. Tabor
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Thomas E. Tabor
	 

	 	 	 	Title:
	 	Vice President
	 
	 	 	 	 	 	 
	 	 	GSS HOLDINGS II, INC. (in executing below agrees and
becomes a party to the Trust Agreement set forth in
Section A herein), as Trust Beneficial Owner
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Andrew L. Stidd
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Andrew L. Stidd
	 

	 	 	 	Title:
	 	President
	 
	 	 	 	 	 	 
	 	 	CITIBANK, N.A. (in executing below agrees and becomes a
party to (i) the Indenture set forth in Section C
herein, as Indenture Trustee, Registrar, Transfer
Agent, Paying Agent and Calculation Agent and (ii) the
Coordination Agreement set forth in Section E herein),
as Indenture Trustee, Registrar, Transfer Agent, Paying
Agent and Calculation Agent
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Nancy Forte
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Nancy Forte
	 

	 	 	 	Title:
	 	Assistant Vice President

[Execution Page 2 of 3]

 

 

	 	 	 	 	 	 	 
	 	 	BANKERS TRUST COMPANY, N.A. (in executing below agrees
and becomes a party to the Coordination Agreement set
forth in Section E herein)
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Rick Greene
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Rick Greene
	 

	 	 	 	Title:
	 	AVP-Officer
	 
	 	 	 	 	 	 
	 	 	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (in
executing below agrees and becomes a party to the Terms
Agreement set forth in Section D herein)
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Diane Kenna
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Diane Kenna
	 

	 	 	 	Title:
	 	Authorized Signatory

[Execution Page 3 of 3]

 

 

INDEX OF EXHIBITS AND SCHEDULES TO THE OMNIBUS INSTRUMENT

	 	 	 
	Exhibit A

	 	Standard Trust Terms – Incorporated herein by reference to
Exhibit 4.6 to Principal Life Insurance Company’s and Principal
Financial Group, Inc.’s Registration Statement on Form S-3
(Registration Nos. 333-110499 and 333-110499-01).
	 
	 	 
	Exhibit B

	 	Standard License Agreement Terms – Incorporated herein by
reference to Exhibit 99.1 to Principal Life Insurance Company’s
Current Report on Form 8-K, filed on March 29, 2004.
	 
	 	 
	Exhibit C

	 	Standard Indenture Terms – Incorporated herein by reference to
Exhibit 4.1 to Principal Life Insurance Company’s and Principal
Financial Group, Inc.’s Registration Statement on Form S-3
(Registration Nos. 333-110499 and 333-110499-01).
	 
	 	 
	Exhibit D

	 	Pricing Supplement – Incorporated herein by reference to the
Pricing Supplement with respect to Principal Life Income Fundings
Trust 2005-104, filed on October 13, 2005, with the Securities and
Exchange Commission pursuant to Rule 424(b)(5) under the
Securities Act of 1933, as amended.
	 
	 	 
	Exhibit E

	 	Principal Life Insurance Company Officer’s Certificate
	 
	 	 
	Exhibit F

	 	Principal Life Income Fundings Trusts Trustee Officer’s Certificate
	 
	 	 
	Schedule I

	 	Terms Agreement Specifications

 

 

EXHIBIT E

Principal Life Insurance Company

Officer’s Certificate

     The undersigned, an officer of Principal Life Insurance Company, an Iowa
stock life insurance company (“Principal Life”), does hereby certify to
Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
Inc., in such capacity and on behalf of Principal Life, to the knowledge of the
undersigned and after reasonable inquiry, that:

	 	 	 
	1.

	 	each of the representations and warranties of Principal Life
contained in each Expense and Indemnity Agreement entered into in
connection with the Registration Statement (defined below), and each
Funding Agreement issued in connection with the Program (the
“Specified Agreements”) (other than any representation or warranty
expressly made as of a date prior to the date hereof) are true and
correct on and as of the date hereof, with the same effect as though
such representation or warranty had been made on and as of the date
hereof;
	 
	2.

	 	no default under any of the Specified Agreements and no event
or any condition which, with notice or lapse of time or both, would
become a default, has occurred and is continuing as of the date
hereof;
	 
	3.

	 	Principal Life has performed and complied with, respectively,
in all material respects, all of the agreements, covenants,
obligations and conditions applicable to Principal Life required by
the Specified Agreements to be performed or complied with by
Principal Life on or before the date hereof;
	 
	4.

	 	the Registration Statement filed on Form S-3 (File Nos.
333-110499 and 333-110499-01) (the “Registration Statement”) by
Principal Life and Principal Financial Group, Inc. has been declared
effective by the Securities and Exchange Commission (the
“Commission”) under the Securities Act of 1933, as amended (the
“Act”) and no stop order suspending the effectiveness of the
Registration Statement has been issued and no proceedings for that
purpose have been commenced by or are pending before or contemplated
by the Commission;
	 
	5.

	 	all filings, if any, required by Rule 424 and Rule 430A under
the Act have been made in a timely manner;
	 
	6.

	 	since
     , the Trusts organized in connection with the
program contemplated by the Registration Statement have issued the
following series of Notes:
	 
	

	 	[List each series of Notes.] [(collectively, the “Designated Notes”)]; and
	 
	7.

	 	the Funding Agreements issued in connection with the Designated
Notes have been executed and delivered by Principal Life in accordance
with the terms and conditions of the Program Documents.

E-1

 

          Capitalized terms used herein and not otherwise defined herein shall have the meanings set
forth in the Standard Indenture Terms attached as Exhibit 4.1 to the
Registration Statement.

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
the • day of •, 200•.

	 	 	 
	

	[Name], [in his/her] capacity as an
authorized officer of Principal Life
	 
	 	By:
	 
	 	 	

	

	 	Name:
	

	 	Title:

	 	 	 	 	 

E-2

 

EXHIBIT F

Principal Life Income Fundings Trusts

Trustee Officer’s Certificate

     U.S. Bank Trust National Association, not in its individual capacity but
solely in its capacity as trustee acting on behalf of each common law trust
organized under the laws of the State of New York (in such capacity, the
“Trustee,” and each such common law trust being referred to herein as, a
“Trust”) in connection with the program contemplated by Registration Statement
Nos. 333-110499 and 333-110499-01 filed on Form S-3 (the “Registration
Statement”) by Principal Life Insurance Company and Principal Financial Group,
Inc. with the Securities and Exchange Commission, does hereby certify to
Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
Inc., in such capacity and on behalf of each Trust, to the knowledge of the
Trustee, that:

	 	 	 
	1.

	 	each of the representations and warranties of each Trust
contained in the Notes issued in connection with the Program, each
Indenture entered into in connection with the Registration Statement
and the Expense and Indemnity Agreement concerning the Trusts (the
“Specified Agreements”) (other than any representation or warranty
expressly made as of a date prior to the date hereof) are true and
correct on and as of the date hereof, with the same effect as though
such representation or warranty had been made on and as of the date
hereof;
	 
	2.

	 	no default under any of the Specified Agreements and no event
or any condition which, with notice or lapse of time or both, would
become a default, has occurred and is continuing as of the date
hereof;
	 
	3.

	 	each Trust has performed and complied with, respectively, in
all material respects, all of the agreements, covenants, obligations
and conditions applicable to such Trust required by the Specified
Agreements to be performed or complied with by such Trust on or
before the date hereof;
	 
	4.

	 	the Notes issued in connection with the Program, have been
issued, in all material respects, in accordance with the terms and
conditions of the Program Documents; and
	 
	5.

	 	each Funding Agreement has been executed and delivered by the
related Trust in accordance with the terms and conditions of the
Program Documents.

     Capitalized terms used herein and not otherwise defined herein shall have
the meanings set forth in the Standard Indenture Terms attached as Exhibit 4.1
to the Registration Statement. In no event shall U.S. Bank Trust National
Association in its personal corporate capacity have any liability for any of
the certifications or statements contained in this Trustee Officer’s
Certificate, such liability being solely that of each Trust.

F-1

 

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
the • day of •, 200•.

	 	 	 
	

	 	U.S. Bank Trust National Association, not
in its capacity but solely in its capacity
as Trustee acting on behalf of each Trust
	 
	 	By:
	 
	 	 	

	

	 	Name:
	

	 	Title:

F-2

 

SCHEDULE I

Terms Agreement Specifications

      In connection with Section 3(a)(iv) of the Distribution Agreement, the Program under which the
Notes are issued is rated Aa2 by Moody’s Investors Service, Inc. (“Moody’s”) and AA by Standard &
Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc. (“S&P”). Principal Life and
PFG expect that the Notes will be rated Aa2 by Moody’s. The Company’s financial strength rating is
Aa2 by Moody’s and AA by S&P. All capitalized terms used herein and not otherwise defined herein
will have the meanings set forth in the Distribution Agreement.FIRST AMENDMENT TO CREDIT AGREEMENT

 

EXHIBIT 10.1

FIRST AMENDMENT TO CREDIT AGREEMENT

     THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is made and entered into
as of October 12, 2005 by and among SECURUS TECHNOLOGIES, INC., a Delaware corporation (the
“Borrower”), the Lenders (as defined below) signatory hereto, ING CAPITAL LLC, in its
capacity as Syndicated Issuing Lender (the “Syndicated Issuing Lender”), ING CAPITAL LLC,
in its capacity as Alternative Issuing Lender (the “Alternative Issuing Lender”), and ING
CAPITAL LLC, in its capacity as Administrative Agent (the “Administrative Agent”).

W I T N E S S E T H:

     WHEREAS, the Borrower, the financial institutions party thereto as lenders (the
“Lenders”), the Syndicated Issuing Lender and the Administrative Agent are parties to a
certain Credit Agreement, dated as of September 9, 2004 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”; capitalized terms used herein
and not otherwise defined shall have the meanings assigned to such terms in the Credit Agreement),
pursuant to which the Lenders have made certain financial accommodations available to the Borrower;

     WHEREAS, the Borrower has requested that the Lenders, the Syndicated Issuing Lender, the
Alternative Issuing Lender and the Administrative Agent amend certain provisions of the Credit
Agreement, including, without limitation, the addition of an alternative $10,000,000 letter of
credit facility, and subject to the terms and conditions hereof, the Lenders, the Syndicated
Issuing Lender, the Alternative Issuing Lender and the Administrative Agent are willing to do so;

     NOW, THEREFORE, for good and valuable consideration, the sufficiency and receipt of all of
which are hereby acknowledged, the Borrower, the Lenders, the Syndicated Issuing Lender, the
Alternative Issuing Lender and the Administrative Agent agree as follows:

     1. Amendments.

     (a) Amendment to Section 1.1. Section 1.1 of the Credit Agreement is hereby amended
and modified by replacing the definitions of “Commitment Ratio”, “Commitments”, Date of Issue”,
“Interest Rate Margin”, “Issuing Lender”, “Lender Group”, “Letter of Credit”, “Letter of Credit
Commitment”, “Letter of Credit Obligations” and “Reimbursement Obligations” in their entirety with
the following definitions:

     “Commitment Ratio” shall mean, with respect to any Lender, the ratio,
expressed as a percentage, of (a) the Commitment of such Lender, divided by (b) the
Commitment of all Lenders, which, as of the Agreement Date, are set forth (together
with Dollar amounts thereof) on Schedule 1(a).

 

 

     “Commitments” shall mean (i) the several obligations of the Lenders to
advance the aggregate amount of up to $30,000,000 to the Borrower on or after the
Agreement Date, in accordance with their respective Commitment Ratios, pursuant to
the terms of this Agreement and (ii) the several obligations of the Lenders, in
accordance with their respective Commitment Ratios, to participate in Letters of
Credit issued by the Alternative Issuing Lender in an aggregate amount of up to
$10,000,000, pursuant to the terms of this Agreement, in each case as such amounts
may be reduced from time to time pursuant to the terms of this Agreement.

     “Date of Issue” shall mean the date on which the Syndicated Issuing
Lender or the Alternative Issuing Lender, as the case may be, issues a Letter of
Credit pursuant to Section 2.15 or Section 2.17, respectively.

     “Interest Rate Margin” shall mean 2.00% per annum.

     “Issuing Lender” shall mean, individually or collectively, as the
context may require, the Syndicated Issuing Lender and/or the Alternative Issuing
Lender.

     “Lender Group” shall mean, collectively, the Administrative Agent, the
Syndicated Issuing Lender, the Alternative Issuing Lender and the Lenders. In
addition, if ING Capital LLC ceases to be the Administrative Agent, then for any
Hedge Agreement entered into by any Borrower Party with ING Capital LLC while it was
the Administrative Agent, ING Capital LLC or its Affiliate party to any Hedge
Agreements shall be deemed to be a member of the Lender Group for purposes of
determining the secured parties under any Security Documents.

     “Letter of Credit” shall mean, individually or collectively, as the
context may require, an Alternative Letter of Credit and/or a Syndicated Letter of
Credit.

     “Letter of Credit Commitment” shall mean, individually or collectively,
as the context may require, the Syndicated Letter of Credit Commitment and/or the
Alternative Letter of Credit Commitment.

     “Letter of Credit Obligations” shall mean, individually or
collectively, as the context may require, the Syndicated Letter of Credit
Obligations and/or the Alternative Letter of Credit Obligations.

     “Reimbursement Obligations” shall mean the payment obligations of the
Borrower under Section 2.15(d) and Section 2.17(d).

     (b) Amendment to Section 1.1. Section 1.1 of the Credit Agreement is hereby further
amended and modified by inserting the following definitions in appropriate alphabetical order
therein.

     “Alternative Issuing Lender” shall mean ING Capital LLC, or any other
Person who hereafter may be designated as the Alternative Issuing Lender pursuant to
an Assignment and Acceptance or otherwise.

2

 

     “Alternative Letters of Credit” shall mean either Standby Letters of
Credit or Commercial Letters of Credit issued by the Alternative Issuing Lender on
behalf of the Borrower from time to time in accordance with Section 2.17.

     “Alternative Letter of Credit Commitment” shall mean the obligation of
the Alternative Issuing Lender to issue Alternative Letters of Credit in an
aggregate face amount from time to time not to exceed $10,000,000 pursuant to the
terms of this Agreement.

     “Alternative Letter of Credit Obligations” shall mean, at any time,
without duplication, the sum of (a) an amount equal to one hundred percent (100%) of
the aggregate undrawn and unexpired stated amount (including the amount to which any
such Alternative Letter of Credit can be reinstated pursuant to its terms) of the
then outstanding Alternative Letters of Credit, plus (b) an amount equal to one
hundred percent (100%) of the aggregate drawn, but unreimbursed drawings of any
Alternative Letters of Credit.

     “Syndicated Issuing Lender” shall mean ING Capital LLC, or any other
Person who hereafter may be designated as the Syndicated Issuing Lender pursuant to
an Assignment and Acceptance or otherwise.

     “Syndicated Letters of Credit” shall mean either Standby Letters of
Credit or Commercial Letters of Credit issued by the Syndicated Issuing Lender on
behalf of the Borrower from time to time in accordance with Section 2.15.

     “Syndicated Letter of Credit Commitment” shall mean the obligation of
the Syndicated Issuing Lender to issue Syndicated Letters of Credit in an aggregate
face amount from time to time not to exceed $12,500,000 pursuant to the terms of
this Agreement.

     “Syndicated Letter of Credit Obligations” shall mean, at any time,
without duplication, the sum of (a) an amount equal to one hundred percent (100%) of
the aggregate undrawn and unexpired stated amount (including the amount to which any
such Syndicated Letter of Credit can be reinstated pursuant to its terms) of the
then outstanding Syndicated Letters of Credit, plus (b) an amount equal to one
hundred percent (100%) of the aggregate drawn, but unreimbursed drawings of any
Syndicated Letters of Credit.

     (c) Amendment to Section 2.1. Section 2.1 of the Credit Agreement, Extensions of
Credit, is hereby amended and modified by deleting subsection 2.1(b) in its entirety and by
substituting the following in lieu thereof:

     (b) The Letters of Credit. Subject to the terms and conditions of this
Agreement, (i) the Syndicated Issuing Lender agrees to issue Syndicated Letters of
Credit for the account of the Borrower, from time to time on any Business Day prior
to the date thirty (30) days prior to the Maturity Date, pursuant to Section 2.15
and (ii) the Alternative Issuing Lender agrees to issue Alternative Letters of
Credit for the account of the Borrower, from time to time on any Business Day

3

 

prior to the date thirty (30) days prior to the Maturity Date, pursuant to Section
2.17, in each case in an outstanding face amount not to exceed, with respect to the
issuance of any individual Letter of Credit as of any Business Day, the Available
Letter of Credit Amount as of such Business Day.

     (c) Amendment to Section 2.4. Section 2.4 of the Credit Agreement, Fees, is
hereby amended and modified by deleting subsections 2.4(b) and (c) in their entirety and by
substituting the following in lieu thereof:

     (b) Unused Line Fee. The Borrower agrees to pay to the Administrative
Agent, for the account of the Lenders in accordance with their respective Commitment
Ratios, an unused line fee on the aggregate amount by which the Commitments
(excluding the reimbursement obligations with respect to the Alternative Letter of
Credit Commitment) exceeded the sum of the average daily amount of Aggregate
Revolving Credit Obligations (other than with respect to any Agent Advances or
Alternative Letter of Credit Obligations) for each day from the Agreement Date
through the Maturity Date (or the date of any earlier prepayment in full of the
Obligations), at a rate of three-eights of one percent (.375%) per annum. In
addition, the Borrower agrees to pay to the Administrative Agent, for the account of
the Lenders in accordance with their respective Commitment Ratios, an unused line
fee on the aggregate amount by which the Alternative Letter of Credit Commitment
exceeded the sum of the average daily amount of Alternative Letter of Credit
Obligations for each day from the date of this First Amendment through the Maturity
Date (or the date of any earlier prepayment in full of the Obligations), at a rate
of three-eights of one percent (.375%) per annum. Such unused line fees shall be
computed on the annual basis of a hypothetical year of three hundred sixty (360)
days for the actual number of days elapsed, shall be payable quarterly in arrears on
the fifth day of each calendar quarter thereafter for the immediately preceding
calendar quarter, and if then unpaid, on the Maturity Date (or the date of any
earlier prepayment in full of the Obligations), and shall be fully earned when due
and non-refundable when paid.

     (c) Letter of Credit Fees.

     (i) The Borrower shall pay to the Administrative Agent for the account of the
Lenders, in accordance with their respective Commitment Ratios, a fee on the stated
amount of any outstanding Syndicated Letters of Credit for each day from the Date of
Issue through the Maturity Date (or the date of any earlier prepayment in full of
the Obligations) at a rate per annum on the amount of the Syndicated Letter of
Credit Obligations equal to two percent (2.00%). In addition, the Borrower shall
pay to the Alternative Issuing Lender a fee on the stated amount of any outstanding
Alternative Letter of Credit for each day from the Date of Issue through the
Maturity Date (or the date of any earlier prepayment in full of the Obligations) at
a rate per annum on the amount of the Alternative Letter of Credit Obligations equal
to two (2.00%). Such Letter of Credit fees shall be computed on the basis of a
hypothetical year of three hundred sixty (360)

4

 

days for the actual number of days elapsed, shall be payable quarterly in arrears
for each calendar quarter on the fifth day of the immediately succeeding calendar
quarter, commencing on October 5, 2004, and if then unpaid, on the Maturity Date (or
the date of any earlier prepayment in full of the Obligations), and shall be fully
earned when due and non-refundable when paid.

     (ii) The Borrower shall also pay to the Administrative Agent, for the account
of the applicable Issuing Lender, (A) a fee on the stated amount of each Letter of
Credit for each day from the Date of Issue through the expiration date of each such
Letter of Credit (or any earlier prepayment in full of the Obligations) at a rate of
one-eighth of one-percent (0.125%) per annum which fee shall be computed on the
basis of a hypothetical year of three hundred sixty (360) days for the actual number
of days elapsed, shall be payable quarterly in arrears on the fifth day of each
calendar quarter for the immediately preceding calendar quarter, commencing on
October 5, 2004, and, if unpaid on the Maturity Date (or any earlier prepayment in
full of the Obligations) and (B) any reasonable and customary fees charged by such
Issuing Lender for issuance and administration of such Letters of Credit. The
foregoing fees shall be fully earned when due, and non-refundable when paid.

     (d) Amendment to Section 2.11. Section 2.11 of the Credit Agreement, Application
of Payments, is hereby amended and modified by deleting subsection 2.11(b) in its entirety and
by substituting the following in lieu thereof:

     (b) Payments Subsequent to Event of Default. Notwithstanding anything
in this Agreement or any other Loan Documents which may be construed to the
contrary, subsequent to the occurrence and during the continuance of an Event of
Default, payments and prepayments with respect to the Obligations made to the Lender
Group, or any of them, or otherwise received by any member of the Lender Group (from
realization on Collateral or otherwise) shall be distributed in the following order
of priority (subject, as applicable, to Section 2.10): FIRST, to the costs and
expenses (including attorneys’ fees and expenses), if any, incurred by any member of
the Lender Group in the collection of such amounts under this Agreement or of the
Loan Documents, including, without limitation, any costs incurred in connection with
the sale or disposition of any Collateral; SECOND, to any fees then due and payable
to the Administrative Agent under this Agreement or any other Loan Document; THIRD,
pro rata, to any fees then due and payable to the Lenders and the Issuing Lender
under this Agreement or any other Loan Document; FOURTH, pro rata, to the payment of
interest then due and payable on the Agent Advances and the Revolving Loans; FIFTH,
pro rata, to (i) the payment of the principal of the Agent Advances then
outstanding, (ii) the payment of principal on the Revolving Loans then outstanding,
(iii) the Letter of Credit Reserve Account to the extent of one hundred five percent
(105%) of any Syndicated Letter of Credit Obligations then outstanding for the sole
purpose of Reimbursement Obligations for Syndicated Letters of Credit, (iv) the
Letter of Credit Reserve Account to the extent of one hundred five percent (105%) of
any Alternative Letter of Credit Obligations then outstanding for the sole purpose
of

5

 

Reimbursement Obligations for Alternative Letters of Credit, and (v) the payment of
any Obligation arising in respect of the Hedge Agreements; SIXTH, to any other
Obligations not otherwise referred to in this Section 2.11(b); SEVENTH, to damages
incurred by the Administrative Agent or any Lender by reason of any breach hereof or
of any other Loan Document; and EIGHTH, upon satisfaction in full of all
Obligations, to the Borrower or as otherwise required by law.

     (e) Amendment to Section 2.15. Section 2.15 of the Credit Agreement, Letters of
Credit, is hereby amended and modified by deleting the heading thereof in its entirety and
replacing it with “Syndicated Letters of Credit, and by inserting the word “Syndicated”
before each occurrence of the words “Issuing Lender”, “Letters of Credit”, and “Letter of Credit
Commitment”.

     (f) Amendment to Article 2. Article 2, THE LOANS AND LETTERS OF CREDIT, is hereby
amended and modified by inserting the following Section 2.17, Alternative Letters of Credit,
immediately following Section 2.16:

     Section 2.17. Alternative Letters of Credit.

     (a) Subject to the terms and conditions of this Agreement, the Alternative
Issuing Lender hereby agrees to issue one or more Alternative Letters of Credit up
to an aggregate face amount equal to the Alternative Letter of Credit Commitment;
provided, however, that, except as described in the last sentence of
Section 4.3, the Alternative Issuing Lender shall not issue any Alternative Letter
of Credit unless the conditions precedent to the issuance thereof set forth in
Section 4.3 have been satisfied. Each Alternative Letter of Credit shall (1) be
denominated in Dollars, and (2) expire no later than the earlier to occur of (A) the
date thirty (30) days prior to the Maturity Date, and (B) three hundred sixty (360)
days after its date of issuance (but may contain provisions for automatic renewal
provided that no Default exists on the renewal date or would be caused by such
renewal and provided no such renewal shall extend beyond the date thirty (30) days
prior to the Maturity Date). Each Alternative Letter of Credit shall be subject to
the Uniform Customs and, to the extent not inconsistent therewith, the laws of the
State of New York. The Alternative Issuing Lender shall not at any time be
obligated to issue, or cause to be issued, any Alternative Letter of Credit if such
issuance would conflict with, or cause the Alternative Issuing Lender to exceed any
limits imposed by, any Applicable Law.

     (b) The Borrower may from time to time request that the Alternative Issuing
Lender issue an Alternative Letter of Credit. The Borrower shall execute and
deliver to the Administrative Agent and the Alternative Issuing Lender a Request for
Issuance of Letter of Credit for each Alternative Letter of Credit to be issued by
the Alternative Issuing Lender, not later than 1:00 p.m. (Atlanta, Georgia time) on
the third (3rd) Business Day preceding the date on which the requested Alternative
Letter of Credit is to be issued, or such shorter notice as may be acceptable to the
Alternative Issuing Lender and the Administrative Agent. Upon receipt of any such
Request for Issuance of Letter of Credit, subject

6

 

to satisfaction of all conditions precedent thereto as set forth in Section 4.3 or
waiver of such conditions pursuant to the last sentence of Section 4.3, the
Alternative Issuing Lender shall process such Request for Issuance of Letter of
Credit and the certificates, documents and other papers and information delivered to
it in connection therewith in accordance with its customary procedures and shall
promptly issue the Alternative Letter of Credit requested thereby. The Alternative
Issuing Lender shall furnish a copy of such Alternative Letter of Credit to the
Borrower and the Administrative Agent following the issuance thereof. In addition
to the fees payable pursuant to Section 2.4(c)(ii), the Borrower shall pay or
reimburse the Alternative Issuing Lender for normal and customary costs and expenses
incurred by the Alternative Issuing Lender in issuing, effecting payment under,
amending or otherwise administering the Alternative Letters of Credit.

     (c) Immediately upon the issuance by the Alternative Issuing Lender of an
Alternative Letter of Credit and in accordance with the terms and conditions of this
Agreement, the Alternative Issuing Lender shall be deemed to have sold and
transferred to each Lender, and each Lender shall be deemed irrevocably and
unconditionally to have purchased and received from the Alternative Issuing Lender,
without recourse or warranty, an undivided interest and participation, to the extent
of such Lender’s Commitment Ratio, in such Alternative Letter of Credit and the
obligations of the Borrower with respect thereto (including, without limitation, all
Alternative Letter of Credit Obligations with respect thereto). The Alternative
Issuing Lender shall promptly notify the Administrative Agent of any draw under an
Alternative Letter of Credit. At such time as the Administrative Agent shall be
notified by the Alternative Issuing Lender that the beneficiary under any
Alternative Letter of Credit has drawn on the same, the Administrative Agent shall
promptly notify the Borrower, by telephone or telecopy, of the amount of the draw.

     (d) The Borrower hereby agrees to immediately reimburse the Alternative Issuing
Lender for amounts paid by the Alternative Issuing Lender in respect of draws under
each Alternative Letter of Credit and, if such reimbursement is not immediate, in
any event not later than the tenth (10th) Business Day following payment under such
Alternative Letter of Credit. In order to facilitate such repayment, the Borrower
hereby irrevocably requests the Lenders, and the Lenders hereby severally agree, on
the terms and conditions of this Agreement (other than as provided in Article 2 with
respect to the amounts of, the timing of requests for, and the repayment of Advances
hereunder), with respect to any drawing under an Alternative Letter of Credit, to
make a Prime Rate Advance on each day on which a draw is made under any Alternative
Letter of Credit and in the amount of such draw, and to pay the proceeds of such
Advance directly to the Alternative Issuing Lender to reimburse the Alternative
Issuing Lender for the amount paid by it upon such draw, not later than the tenth
(10th) Business Day thereafter. Each Lender shall pay its share of such Prime Rate
Advance by paying its portion of such Advance to the Administrative Agent in
accordance with Section 2.2(e) and its Commitment Ratio, without reduction

7

 

for any set-off or counterclaim of any nature whatsoever. The disbursement of funds
in connection with a draw under an Alternative Letter of Credit pursuant to this
Section hereunder shall be subject to the terms and conditions of Section 2.2(e).
The obligation of each Lender to make payments to the Administrative Agent, for the
account of the Alternative Issuing Lender, in accordance with this Section 2.17
shall be absolute and unconditional and no Lender shall be relieved of its
obligations to make such payments by reason of noncompliance by any other Person
with the terms of the Alternative Letter of Credit or for any other reason (other
than the gross negligence or willful misconduct of the Alternative Issuing Lender in
paying such Alternative Letter of Credit, as determined by a final non-appealable
judgment of a court of competent jurisdiction). The Administrative Agent shall
promptly remit to the Alternative Issuing Lender the amounts so received from the
other Lenders. Any overdue amounts payable by the Lenders to the Alternative
Issuing Lender in respect of a draw under any Alternative Letter of Credit shall
bear interest, payable on demand, (x) for the first two (2) Business Days, at the
Federal Funds Rate, and (y) thereafter, at the Prime Rate.

     (e) The Borrower agrees that each Advance by the Lenders to reimburse the
Alternative Issuing Lender for draws under any Alternative Letter of Credit, shall,
for all purposes hereunder, unless and until converted into a Eurodollar Advance
pursuant to Section 2.2(b)(ii), be deemed to be a Prime Rate Advance under the
Commitment and shall be payable and bear interest in accordance with all other Prime
Rate Advances of Revolving Loans.

     (f) The Borrower agrees that any action taken or omitted to be taken by the
Alternative Issuing Lender in connection with any Alternative Letter of Credit,
except for such actions or omissions as shall constitute gross negligence or willful
misconduct on the part of such Alternative Issuing Lender as determined by a final
non-appealable judgment of a court of competent jurisdiction, shall be binding on
the Borrower as between the Borrower and the Alternative Issuing Lender, and shall
not result in any liability of the Alternative Issuing Lender to the Borrower. The
obligation of the Borrower to reimburse the Alternative Issuing Lender for a drawing
under any Alternative Letter of Credit or the Lenders for Advances made by them to
the Alternative Issuing Lender on account of draws made under the Alternative
Letters of Credit shall be absolute, unconditional and irrevocable, and shall be
paid strictly in accordance with the terms of this Agreement under all circumstances
whatsoever, including, without limitation, the following circumstances:

          (i) Any lack of validity or enforceability of any Loan Document;

          (ii) Any amendment or waiver of or consent to any departure from any or all of
the Loan Documents;

8

 

          (iii) Any improper use which may be made of any Alternative Letter of Credit or
any improper acts or omissions of any beneficiary or transferee of any Alternative
Letter of Credit in connection therewith;

          (iv) The existence of any claim, set-off, defense or any right which the
Borrower may have at any time against any beneficiary or any transferee of any
Alternative Letter of Credit (or Persons for whom any such beneficiary or any such
transferee may be acting), any Lender or any other Person, whether in connection
with any Alternative Letter of Credit, any transaction contemplated by any
Alternative Letter of Credit, this Agreement, or any other Loan Document, or any
unrelated transaction;

          (v) Any statement or any other documents presented under any Alternative Letter
of Credit proving to be insufficient, forged, fraudulent or invalid in any respect
or any statement therein being untrue or inaccurate in any respect whatsoever;

          (vi) The insolvency of any Person issuing any documents in connection with any
Alternative Letter of Credit;

          (vii) Any breach of any agreement between the Borrower and any beneficiary or
transferee of any Alternative Letter of Credit;

          (viii) Any irregularity in the transaction with respect to which any
Alternative Letter of Credit is issued, including any fraud by the beneficiary or
any transferee of such Alternative Letter of Credit;

          (ix) Any errors, omissions, interruptions or delays in transmission or delivery
of any messages, by mail, cable, telegraph, wireless or otherwise, whether or not
they are in code;

          (x) Any act, error, neglect or default, omission, insolvency or failure of
business of any of the correspondents of the Alternative Issuing Lender;

          (xi) Any other circumstances arising from causes beyond the control of the
Alternative Issuing Lender;

          (xii) Payment by the Alternative Issuing Lender under any Alternative Letter of
Credit against presentation of a sight draft or a certificate which does not comply
with the terms of such Alternative Letter of Credit, provided that such payment
shall not have constituted gross negligence or willful misconduct of the Alternative
Issuing Lender as determined by a final non-appealable judgment of a court of
competent jurisdiction; and

          (xiii) Any other circumstance or happening whatsoever, whether or not similar
to any of the foregoing.

9

 

     (g) The Borrower will indemnify and hold harmless each Indemnified Person from
and against any and all claims, liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any kind
or nature whatsoever (including reasonable attorneys’ fees) which may be imposed on,
incurred by or asserted against such Indemnified Person in any way relating to or
arising out of the issuance of a Alternative Letter of Credit, except that the
Borrower shall not be liable to an Indemnified Person for any portion of such
claims, liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from the gross negligence or
willful misconduct of such Indemnified Person as determined by a final
non-appealable judgment of a court of competent jurisdiction. This Section 2.17(g)
shall survive termination of this Agreement.

     (h) The Administrative Agent shall notify the Alternative Issuing Lender upon
Administrative Agent’s receipt of any Request for Issuance of Letter of Credit.
Subject to the terms and conditions hereof, the Alternative Issuing Lender may, in
its sole discretion, determine whether to issue such requested Letter of Credit
pursuant to this Section 2.17 or require that such requested Letter of Credit be
issued pursuant to Section 2.15; provided, however, if the Letter of
Credit Availability is sufficient to issue the requested Letter of Credit but
insufficient to issue either a Syndicated Letter of Credit or an Alternative Letter
of Credit, then (x) the Syndicated Issuing Lender and the Alternative Issuing Lender
shall immediately transfer or assign Letters of Credit between the Alternative
Letter of Credit Commitment and the Syndicated Letter of Credit Commitment so that
availability for the requested Letter of Credit exists within a single facility, and
(y) such requested Letter of Credit shall be issued by the Issuing Lender with such
then sufficient Letter of Credit Availability, subject to the satisfaction of the
conditions contained in Section 4.3. Notwithstanding anything to the contrary
contained herein, and subject to satisfaction of the conditions contained in
paragraphs (c) and (d) of Section 4.3, the Syndicated Issuing Lender and the
Alternative Issuing Lender may from time to time, in their sole discretion, transfer
or assign Letters of Credit between the Alternative Letter of Credit Commitment and
the Syndicated Letter of Credit Commitment, as the case may be, without the consent
of the Borrower or the Lenders.

     (i) So long as the conditions precedent in Section 4.2 have been satisfied with
respect to a requested Advance, the Syndicated Issuing Lender and the Alternative
Issuing Lender shall be required to transfer or assign Letters of Credit from the
Syndicated Letter of Credit Commitment to the Alternative Letter of Credit
Commitment at the time any such Advance is requested if such transfer and/or
assignment is needed to provide sufficient Availability for such Advance.

     (j) Each Lender shall be responsible (to the extent the Alternative Issuing
Lender is not reimbursed by the Borrower) for its pro rata share (based on such
Lender’s Commitment Ratio) of any and all reasonable out-of-pocket costs, expenses
(including reasonable legal fees) and disbursements which may be incurred or made by
the Alternative Issuing Lender in connection with the

10

 

collection of any amounts due under, the administration of, or the presentation or
enforcement of any rights conferred by any Alternative Letter of Credit, the
Borrower’s or any guarantor’s obligations to reimburse draws thereunder or
otherwise. In the event the Borrower shall fail to pay such expenses of the
Alternative Issuing Lender within fifteen (15) days of demand for payment by the
Alternative Issuing Lender, each Lender shall thereupon pay to the Alternative
Issuing Lender its pro rata share (based on such Lender’s Commitment Ratio) of such
expenses within ten (10) days from the date of the Alternative Issuing Lender’s
notice to the Lenders of the Borrower’s failure to pay; provided,
however, that if the Borrower shall thereafter pay such expenses, the
Alternative Issuing Lender will repay to each Lender the amounts received from such
Lender hereunder.

     (g) Amendment to Section 7.2. Section 7.2 of the Credit Agreement, Annual Financial
Statements and Information; Certificate of No Default, is hereby amended and modified by deleting
Section 7.2 in its entirety and by substituting the following in lieu thereof:

Section 7.2 Annual Financial Statements and Information; Certificate of No
Default. Within ninety (90) days after the end of each fiscal year of the
Borrower, the audited balance sheet of the Borrower as at the end of such year and
the related audited statements of income and retained earnings and related audited
statements of cash flows for such year, all of which shall be on a consolidated
basis with the other Borrower Parties, which financial statements shall set forth in
comparative form such figures as at the end of and for the previous year, and shall
be accompanied by an opinion of independent certified public accountants of
recognized standing satisfactory to the Administrative Agent, stating that such
financial statements are unqualified and prepared in all material respects in
accordance with GAAP, without any explanatory paragraphs, together with a statement
of such accountants of the Borrower certifying that no Default, including, without
limitation, any Default under the Financial Covenants, was detected during the
examination of the Borrower Parties. With respect to the statement of the
accountants and their certification that no Default was detected during the
examination of the Borrower Parties, this requirement will begin with the Company’s
financial statements for the year ended December 31, 2005.

11

 

     (h) Amendment to Section 8.9. Section 8.9 of the Credit Agreement, Capital
Expenditures, is hereby amended and modified by deleting Section 8.9 in its entirety and by
substituting the following in lieu thereof:

Section 8.9 Capital Expenditures. The Borrower Parties and their
Subsidiaries shall not make or incur in the aggregate any Capital Expenditures in
excess of the amounts set forth in the table below for the applicable periods set
forth in such table:

	 	 	 	 	 	 	 	 
	 	Period

	 	 	Capital Expenditures shall not exceed:
	 
	 	Agreement Date through December 31, 2004:

	 	 	$	9,000,000	 	 
	 	Calendar years 2005 and 2006

	 	 	$30,000,000 plus the Capital

Expenditure Carry Forward Amount
	 
	 	Calendar year 2007 and each calendar
year thereafter:

	 	 	$22,000,000 plus the Capital

Expenditure Carry Forward Amount
	 
	 

     (i) Amendment to Schedules to Credit Agreement. The Credit Agreement is hereby
amended by deleting Schedule 1(a), Commitment Ratios, in its entirety and replacing it with
Schedule 1(a) attached hereto.

     2. Conditions to Effectiveness of this Amendment. Notwithstanding any other provision
of this Amendment and without affecting in any manner the rights of the Lenders hereunder, it is
understood and agreed that this Amendment shall not become effective, and the Borrower shall have
no rights under this Amendment, until the Administrative Agent shall have received (i) a commitment
fee in the amount of $75,000 for the sole benefit of the Alternative Issuing Lender, (ii) such
other fees as the Borrower has previously agreed to pay the Administrative Agent or any of its
affiliates in connection with this Amendment, (iii) reimbursement or payment of its costs and
expenses incurred in connection with this Amendment (including reasonable fees, charges and
disbursements of Paul, Hastings, Janofsky & Walker LLP, counsel to the Administrative Agent), and
(iv) each of the following documents:

     (a) executed counterparts to this Amendment from the Borrower, each of the Guarantors, the
Lenders and the Issuing Lenders;

     (b) The legal opinion of White & Case LLP, counsel to the Borrower Parties, addressed to the
Administrative Agent;

     (c) The Administrative Agent shall have received evidence satisfactory to it that all
Necessary Authorizations are in full force and effect and are not subject to any pending or
threatened reversal or cancellation, and that no Default exists, and the Administrative Bank shall
have received a certificate of an Authorized Signatory of the Company so stating;

12

 

     (d) The Administrative Agent shall have received evidence satisfactory to it that no change
in the business, assets, management, operations, financial condition or prospects of the Borrower
Parties shall have occurred since June 30, 2005, which change has had or is reasonably likely to
have a Materially Adverse Effect, and the Administrative Agent shall have received a certificate of
an Authorized Signatory of the Borrower so stating; and

     (e) All such other documents as the Administrative Agent may reasonably request, certified by
an appropriate governmental official or an Authorized Signatory if so requested.

     3. Representations and Warranties. To induce the Lenders, the Issuing Lenders and the
Administrative Agent to enter into this Amendment, each Borrower Party hereby represents and
warrants to the Lender Group that:

     (a) The execution, delivery and performance by such Borrower Party of this Amendment (i) are
within such Borrower Party’s power and authority; (ii) have been duly authorized by all necessary
corporate and shareholder action; (iii) are not in contravention of any provision of such Borrower
Party’s certificate of incorporation or bylaws or other organizational documents; (iv) do not
violate any law or regulation, or any order or decree of any Governmental Authority; (v) do not
conflict with or result in the breach or termination of, constitute a default under or accelerate
any performance required by, any indenture, mortgage, deed of trust, lease, agreement or other
instrument to which such Borrower Party or any of its Subsidiaries is a party or by which such
Borrower Party or any such Subsidiary or any of their respective property is bound; (vi) do not
result in the creation or imposition of any Lien upon any of the property of such Borrower Party or
any of its Subsidiaries; and (vii) do not require the consent or approval of any Governmental
Authority or any other Person;

     (b) This Amendment has been duly executed and delivered for the benefit of or on behalf of
each Borrower Party and constitutes a legal, valid and binding obligation of each Borrower Party,
enforceable in accordance with its terms, except to the extent that the enforceability thereof may
be limited by applicable bankruptcy, insolvency, reorganization or similar laws affecting the
enforcement of creditor’s rights generally or by general principles of equity (regardless of
whether such enforcement is considered in a proceeding in equity or at law); and

     (c) After giving effect to this Amendment, the representations and warranties contained in the
Credit Agreement and the other Loan Documents are true and correct in all material respects, and no
Default or Event of Default has occurred and is continuing as of the date hereof.

4. Reaffirmations and Acknowledgments.

     (a) Reaffirmation of Guaranty. Each Guarantor consents to the execution and delivery
by the Borrower of this Amendment and jointly and severally ratify and confirm the terms of the
Credit Agreement (including, without limitation, Article 3 thereof) with respect to the
indebtedness now or hereafter outstanding under the Credit Agreement as amended hereby

13

 

and all promissory notes issued thereunder. Each Guarantor acknowledges that, notwithstanding
anything to the contrary contained herein or in any other document evidencing any indebtedness of
the Borrower to the Lender Group or any other obligation of the Borrower, or any actions now or
hereafter taken by the members of the Lender Group with respect to any obligation of the Borrower,
Article 3 of the Credit Agreement (i) is and shall continue to be a primary obligation of the
Guarantors, (ii) is and shall continue to be an absolute, unconditional, joint and several,
continuing and irrevocable guaranty of payment, and (iii) is and shall continue to be in full force
and effect in accordance with its terms. Nothing contained herein to the contrary shall release,
discharge, modify, change or affect the original liability of the Guarantors under the Guaranty
Agreement.

     (b) Acknowledgment of Perfection of Security Interest. Each Borrower Party hereby
acknowledges that, as of the date hereof, the security interests and liens granted to the
Administrative Agent and the other members of the Lender Group under the Credit Agreement and the
other Loan Documents are in full force and effect, are properly perfected and are enforceable in
accordance with the terms of the Credit Agreement and the other Loan Documents.

     5. Effect of Amendment. Except as set forth expressly herein, all terms of the Credit
Agreement, as amended hereby, and the other Loan Documents shall be and remain in full force and
effect and shall constitute the legal, valid, binding and enforceable obligations of the Borrower
to the Administrative Agent and the other members of the Lender Group. The execution, delivery and
effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver
of any right, power or remedy of the members of the Lender Group under the Credit Agreement, nor
constitute a waiver of any provision of the Credit Agreement. This Amendment shall constitute a
Loan Document for all purposes of the Credit Agreement. Reference to the Credit Agreement herein
or in any other Loan Document shall be deemed to refer to the Credit Agreement as amended hereby.

     6. Governing Law. This Amendment shall be governed by, and construed in accordance
with, the internal laws of the State of New York and all applicable federal laws of the United
States of America.

     7. No Novation. This Amendment is not intended by the parties to be, and shall not be
construed to be, a novation of the Credit Agreement or an accord and satisfaction in regard
thereto.

     8. Costs and Expenses. The Borrower agrees to pay on demand all costs and expenses of
the Administrative Agent in connection with the preparation, execution and delivery of this
Amendment, including, without limitation, the reasonable fees and out-of-pocket expenses of outside
counsel for the Administrative Agent with respect thereto.

     9. Counterparts. This Amendment may be executed by one or more of the parties hereto
in any number of separate counterparts, each of which shall be deemed an original and all of which,
taken together, shall be deemed to constitute one and the same instrument. Delivery of

14

 

an executed counterpart of this Amendment by facsimile transmission or by electronic mail in
pdf form shall be as effective as delivery of a manually executed counterpart hereof.

     10. Binding Nature. This Amendment shall be binding upon and inure to the benefit of
the parties hereto, their respective successors, successors-in-titles, and assigns.

     11. Entire Understanding. This Amendment sets forth the entire understanding of the
parties with respect to the matters set forth herein, and shall supersede any prior negotiations or
agreements, whether written or oral, with respect thereto.

[Signature Pages To Follow]

15

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed, under
seal in the case of the Borrower and the Guarantors, by their respective authorized officers as of
the day and year first above written.

	 	 	 	 	 
	BORROWER:                                	SECURUS TECHNOLOGIES, INC., a Delaware corporation, as the Company

 	 
	 	By:  	
/s/ Keith Kelson 	 
	 	 	Name:  	Keith Kelson 	 
	 	 	Title:  	CFO 	 
	 
	 	 	 
	 	Attest:	
/s/ Richard Falcone	 
	 	Name:  	Richard Falcone 	 
	 	Title:  	Chairman and CEO 	 
	 
	GUARANTORS:                                  	T-NETIX, INC., a Delaware corporation, as a Guarantor

 	 
	 	By:  	
/s/ Keith Kelson 	 
	 	 	Name:  	Keith Kelson 	 
	 	 	Title:  	CFO 	 
	 
	 	TELEQUIP LABS, INC., a Nevada corporation, as a Guarantor

 	 
	 	By:  	
/s/ Keith Kelson 	 
	 	 	Name:  	Keith Kelson 	 
	 	 	Title:  	CFO 	 
	 
	 	T-NETIX TELECOMMUNICATIONS SERVICES, INC., a Texas corporation, as a Guarantor

 	 
	 	By:  	
/s/ Keith Kelson 	 
	 	 	Name:  	Keith Kelson 	 
	 	 	Title:  	CFO 	 

 

	 	 	 	 	 

	 	 	 	 	 
	 	SPEAKEZ, INC., a Colorado corporation, as a Guarantor

 	 
	 	By: 	
/s/ Keith Kelson 	 
	 	 	Name:  	Keith Kelson 	 
	 	 	Title:  	CFO 	 
	 
	 	T-NETIX MONITORING CORPORATION, a Colorado corporation, as a Guarantor

 	 
	 	By:  	
/s/ Keith Kelson 	 
	 	 	Name:  	Keith Kelson 	 
	 	 	Title:  	CFO 	 
	 
	 	EVERCOM HOLDINGS, INC., a Delaware corporation, as a Guarantor

 	 
	 	By:  	
/s/ Keith Kelson 	 
	 	 	Name:  	Keith Kelson 	 
	 	 	Title:  	CFO	 
	 
	 	EVERCOM, INC., a Delaware corporation, as a Guarantor

 	 
	 	By:  	
/s/ Keith Kelson 	 
	 	 	Name:  	Keith Kelson 	 
	 	 	Title:  	CFO 	 

 

	 	 	 	 	 

	 	 	 	 	 
	 	EVERCOM SYSTEMS, INC., a Delaware corporation, as a Guarantor

 	 
	 	By:  	
/s/ Keith Kelson 	 
	 	 	Name:  	Keith Kelson 	 
	 	 	Title:  	CFO 	 
	 
	SYNDICATED ISSUING LENDER:                          	ING CAPITAL LLC, as the Syndicated Issuing Lender

 	 
	 	By:  	
/s/ John N. Lanier 	 
	 	 	Name:  	John N. Lanier 	 
	 	 	Title:  	Director	 
	 
	ALTERNATIVE ISSUING LENDER:                         	ING CAPITAL LLC, as the Alternative Issuing Lender

 	 
	 	By:  	
/s/ John N. Lanier 	 
	 	 	Name:  	John N. Lanier 	 
	 	 	Title:  	Director	 

 

	 	 	 	 	 

	 	 	 	 	 
	LENDERS:                                              	ING CAPITAL LLC, as a Lender

 	 
	 	By:  	
/s/ John N. Lanier 	 
	 	 	Name:  	John N. Lanier 	 
	 	 	Title:  	Director	 
	 
	 	NORTH FORK BUSINESS CAPITAL CORPORATION, as a Lender

 	 
	 	By:  	
/s/ Robert R. Wallace 	 
	 	 	Name:  	Robert R. Wallace 	 
	 	 	Title:  	Vice President	 

 

	 	 	 	 	 

Schedule 1(a)

Commitment Ratios

	 	 	 	 	 	 	 	 	 
	Lender	 	Commitment	 	 	Commitment Ratio	 
	ING Capital LLC
	 	 	 	 	 	 	 	 
	Revolving Credit Commitment
Alternative Letter of
	 	$	22,500,000	 	 	 	 	 
	Credit Commitment
	 	$	7,500,000	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Total
	 	$	30,000,000	 	 	 	75.00	%
	 
	 	 	 	 	 	 	 	 
	North Fork Business Capital Corporation
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Revolving Credit Commitment
Alternative Letter of
	 	$	7,500,000	 	 	 	 	 
	Credit Commitment
	 	$	2,500,000	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Total
	 	$	10,000,000	 	 	 	25.00	%
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Total
	 	$	40,000,000	 	 	 	100	%

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