Document:

Exhibit 10.1

 

POI ACQUISITION, L.L.C.

 

QUADRANGLE MASTER FUNDING LTD

 

July 26, 2004

 

Protection One Alarm Monitoring, Inc.

Protection One, Inc.

Network Multi-Family Security Corporation

c/o Protection One, Inc.

818 South Kansas Avenue

Topeka, Kansas  66612

 

Ladies and Gentlemen:

 

1.                                       We
refer to the:  (a) Credit Facility
Standstill Agreement, dated as of February 17, 2004 (the “Agreement”),
among Protection One Alarm Monitoring, Inc. (“POAM”), Protection One, Inc.,
(“POI”), Network Multi-Family Security Corporation (“Network”) and POI
Acquisition, L.L.C. (“POI Acquisition”); (b) letter from Quadrangle Master
Funding Ltd (“Quadrangle”) to POAM, dated February 27, 2004, (i) advising
POAM of Quadrangle’s assumption from POI Acquisition of one-third of the obligations
under the Credit Facility; and (ii) confirming Quadrangle’s agreement to be
bound by the obligations of POI Acquisition set forth in the Agreement; (c)
letter from POI Acquisition and Quadrangle to POAM, POI and Network, dated May
17, 2004, amending the term of the Agreement (except as otherwise provided
therein); (d) letter from POI Acquisition and Quadrangle to POAM, POI and
Network, dated May 24, 2004, further amending the term of the Agreement (except
as otherwise provided therein); (e) letter from POI Acquisition and Quadrangle
to POAM, POI and Network, dated May 28, 2004, further amending the term of the
Agreement (except as otherwise provided therein); and (f) letter from POI
Acquisition and Quadrangle to POAM, POI and Network, dated June 28, 2004,
further amending the terms of the Agreement (except as otherwise provided
therein) (the “Fourth Letter Agreement”). 
Capitalized terms used but not defined herein shall have the meanings
ascribed to such terms in the Agreement.

 

2.                                       Pursuant
to section 3 of the Agreement, the Agreement shall terminate and be of no
further force and effect on the Debt Specified Date (which currently, under
clause (i) of section 3 of the Agreement, as amended by the Fourth Letter
Agreement, is 11:59 p.m. prevailing Eastern Time on July 26, 2004).  By this letter agreement and at your
request, we hereby agree to further amend the definition of the Outside Date to
mean 11:59 p.m. prevailing Eastern time on the date that is 168  days
after the Effective Time (the period beginning with the Effective Time and
continuing through and including the Outside Date, the “Outside Standstill
Period”).  We also hereby agree that the
Outside Standstill

 

 

Period shall be automatically extended three (3) consecutive times by
seven (7) day periods (and the definition of Outside Date shall be further
amended accordingly), without any further action required to be taken by any
party hereto, unless POI Acquisition and Quadrangle deliver written notice of
non-extension to POI pursuant to Paragraph 4 of this letter agreement on
July 30, 2004, August 6, 2004 or August 13, 2004.  Under no circumstance shall the Outside
Standstill Period exceed 189 days pursuant to the terms of this letter agreement.  This letter agreement shall not apply to
section 5 of the Agreement.  Except
as otherwise provided herein, the Agreement shall remain in full force and
effect subject to the terms and provisions thereof.

 

3.                                       Notwithstanding
anything to the contrary contained herein, (a) in the event that POI
Acquisition and Quadrangle deliver written notice of termination to POI
pursuant to Paragraph 4 of this letter agreement, this letter agreement and the
Outside Standstill Period shall terminate effective as of two business days
following the date of receipt of such written notice by POI; and (b) nothing
herein shall constitute an amendment or waiver of the termination provisions of
clause (ii) of section 3 of the Agreement.

 

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

 

Protection One, Inc.

4221 W. John Carpenter Freeway

Irving, Texas, 75063

Attn: J. Eric Griffin, General Counsel

Facsimile: (972) 916-6195

 

with a copy to:

 

Kirkland & Ellis LLP

200 E. Randolph Drive

Chicago, Illinois 60601

Attn: Anup Sathy

Facsimile: (312) 861-2200

 

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

 

*       *       *       *

 

 

	
  Very truly yours,

  
	
   

  
	
  POI ACQUISITION, L.L.C.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ David A. Tanner

  	
   

  
	
  Name: David A. Tanner

  
	
  Title:

  
	
   

  
	
  QUADRANGLE MASTER

  FUNDING LTD

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Michael Weinstock

  	
   

  
	
  Name: Michael Weinstock

  
	
  Title:

  
				

 

 

	
  Agreed as of the date first written above:

  
	
   

  
	
  PROTECTION ONE ALARM

  MONITORING, INC.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Darius G. Nevin

  	
   

  
	
  Name: Darius G. Nevin

  
	
  Title: Executive Vice President and Chief Financial Officer

  
	
   

  
	
   

  
	
  PROTECTION ONE, INC.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Darius G. Nevin

  	
   

  
	
  Name: Darius G. Nevin

  
	
  Title: Executive Vice President and Chief Financial Officer

  
	
   

  
	
   

  
	
  NETWORK MULTI-FAMILY

  SECURITY CORPORATION

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Steve Williams

  	
   

  
	
  Name: Steve Williams

  
	
  Title: PresidentExhibit 10.2

 

POI ACQUISITION I, INC.

 

July 26, 2004

 

Protection One, Inc.

818 South Kansas Avenue

Topeka, Kansas  66612

Attn:                    Darius G.
Nevin

Executive Vice President and Chief Financial Officer

 

Dear Mr. Nevin:

 

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

 

2.                                       Pursuant
to section 2.02 of the Agreement, the Agreement shall terminate and be of
no further force and effect on the Specified Date (which currently, under
clause (i) of section 2.02 of the Agreement, as amended by the Fourth
Letter Agreement, is 11:59 p.m. prevailing Eastern Time on July 26, 2004).  By this letter agreement and at your
request, we hereby agree to further amend the definition of the Specified Date
to mean the earlier of:  (i) 11:59 p.m.
prevailing Eastern time on the date that is 168  days after the
Effective Time (the “Outside Date”) (the period beginning with the Effective
Time and continuing through and including the Outside Date, the “Outside
Standstill Period”); or (ii) the occurrence of any Equity Standstill
Termination Event.  We also hereby agree
that the Outside Standstill Period shall be automatically extended three (3)
consecutive times by seven (7) day periods (and the definition of Outside Date
shall be further amended accordingly), without any further action required to
be taken by either party hereto, unless POI Acquisition delivers written notice
of non-extension to POI pursuant to Paragraph 4 of this letter agreement on
July 30, 2004, August 6, 2004 or August 13, 2004.  Under no circumstance shall the Outside
Standstill Period exceed 189 days pursuant to the terms of this letter
agreement.  Except as otherwise provided
herein, the Agreement shall remain in full force and effect subject to the
terms and provisions thereof.

 

3.                                       Notwithstanding
anything to the contrary contained herein, in the event that POI Acquisition
delivers written notice of termination to POI pursuant to

 

 

Paragraph 4 of this letter agreement, this letter agreement and the
Outside Standstill Period shall terminate effective as of two business days
following the date of receipt of such written notice by POI.

 

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

 

Protection One, Inc.

4221 W. John Carpenter Freeway

Irving, Texas, 75063

Attn: J. Eric Griffin, General Counsel

Facsimile: (972) 916-6195

 

with a copy to:

 

Kirkland & Ellis LLP

200 E. Randolph Drive

Chicago, Illinois 60601

Attn: Anup Sathy

Facsimile: (312) 861-2200

 

*        *        *        *

 

 

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

 

	
  Very truly yours,

  
	
   

  
	
  POI ACQUISITION I, INC.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ David A. Tanner

  	
   

  
	
  Name:

  
	
  Title:

  

 

 

	
  Agreed as of the date first written above:

  
	
   

  
	
  PROTECTION ONE, INC.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Darius G. Nevin

  	
   

  
	
  Name: Darius G. Nevin

  
	
  Title: Executive Vice President and Chief Financial Officer

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