Document:

EX-4.1

 

EXHIBIT 4.1

PROMISSORY NOTE

			
	$79,539,998.81
	 	New York, New York

November 24, 2004   

          FOR VALUE RECEIVED, the undersigned, COINMACH CORPORATION (the “Maker”), a Delaware
corporation, promises to pay to COINMACH SERVICE CORP., a Delaware corporation (“Holdco”),
on December 1, 2024 (the “Maturity Date”) the aggregate unpaid principal amount of all
Intercompany Advances (as defined below) (whether or not shown on Schedule A attached hereto (and
any continuation thereof)) made by Holdco to the Maker under this promissory note (this
“Incompany Note”) (including, without limitation, the initial Intercompany Advance made
hereunder in the principal amount of $79,539,998.81).

     1. Principal Payment Date. Any unpaid principal of this Intercompany Note
shall be paid on the Maturity Date.

     2. Interest Payment Dates. The unpaid principal amount of this Intercompany
Note from time to time outstanding shall bear interest at a rate of interest equal to 10.95% per
annum, which interest shall be paid quarterly in arrears on March 1, June 1, September 1 and
December 1 of each year, commencing on March 1, 2005 as well as on any date that any principal of
this Intercompany Note is due hereunder. Interest shall be computed on the basis of a 360-day year
comprised of twelve 30-day months.

     3. Prepayments.

     (a) Optional Prepayments. No optional prepayments of all or a part of
the principal amount of this Intercompany Note may be made by the Maker except in accordance
with the terms of this clause (a):

     (i) Make-Whole Prepayments. At any time prior to December 1,
2009, the Maker may, at its option, prepay all or part of the principal amount of
this Intercompany Note upon not less than 30 nor more than 60 days’ notice to the
holder of this Intercompany Note (the “Holder”), at a prepayment price equal
to the sum of the present value of the prepayment price of such principal amount to
be prepaid at the first optional prepayment date described in Section 3(b)
below and all required interest payments, excluding accrued but unpaid interest, due
on such principal amount through such first optional prepayment date, discounted to
the date of such prepayment on a quarterly basis, assuming 360-day years consisting
of twelve 30-day months, at the Treasury Rate plus 50 basis points, plus accrued and
unpaid interest to the prepayment date, subject to the right of the Holder to
receive interest due on the relevant interest payment date.

     (ii) Prepayment at Scheduled Prices. On or after December 1,
2009, the Maker may, at its option, prepay all or a part of the principal amount of
this Intercompany Note upon not less than 30 nor more than 60 days’ notice to the
Holder, at the prepayment prices, expressed as percentages of such principal amount
to be prepaid set forth below, plus accrued and unpaid interest on such principal
amount to be prepaid, to the applicable prepayment date, if prepaid during the
twelve-month period beginning on December 1 of the years indicated below:

 

 

	 	 	 	 	 
	 	 	Prepayment	 
	Year	 	Price	 
	2009
	 	 	105.475	%
	2010
	 	 	103.650	%
	2011
	 	 	101.825	%
	2012 and thereafter
	 	 	100.000	%

     (b) Change of Control Prepayment. Within 30 days following the date
upon which a Change of Control (as defined in the Indenture (as defined below)) shall have
occurred, the Maker shall notify the Holder of such Change of Control, and at the request of
the Holder, the Maker shall prepay all or such part of the principal amount of this
Intercompany Note as demanded by the Holder no earlier than 30 nor later than 60 days’
following the giving of such notice, at a prepayment price of 101% of such principal amount
to be prepaid plus accrued and unpaid interest on such principal amount to be prepaid.

     (c) Tax Prepayment. Upon demand by the Holder, the Maker shall prepay
all outstanding Intercompany Advances on the date specified in such demand at a prepayment
price equal to 100% of the aggregate outstanding principal amount of the Intercompany
Advances plus accrued and unpaid interest to the prepayment date; provided,
however, that Holder may only make such demand if, for U.S. federal income tax
purposes, Holdco is not, or would not be, permitted to deduct the interest payable on the
Notes (as defined in the Indenture) from its income.

     4. Payments Generally. All payments of principal of, and interest and
premium, if any, on, this Intercompany Note shall be payable in lawful currency of the United
States of America no later than 11:00 a.m. on the dates specified herein to the account designated
by the Holder; provided that if any such payment is due on a Saturday, a Sunday or a day on
which banking institutions in New York, New York are not required to be open (each, a “Legal
Holiday”), then such payment shall be made on the next succeeding day that is not a Legal
Holiday, and no interest shall accrue thereon for the intervening period.

     5. Intercompany Advances. From time to time, the Maker may request from
Holdco, and Holdco in its sole discretion may (but shall not be obligated to) make to the Maker,
advances (“Intercompany Advances”); provided that no Intercompany Advance may be made
hereunder unless each Subsidiary of the Maker that is a party to the Incorporated Agreement as a
guarantor shall have duly authorized, executed and delivered the Guaranty to the Maker. Such
Intercompany Advances, if made, shall constitute principal evidenced by this Intercompany Note and
shall be subject to the terms hereof. The date and amount of each Intercompany Advance made by
Holdco to the Maker shall be recorded by Holdco (or the Pledgee (as defined below)) on Schedule A
attached hereto or any continuation thereof; provided that the failure of Holdco (or the
Pledgee) to make any such recordation or endorsement shall not affect the obligations of the Maker
to make a payment when due of any amount owing hereunder in respect of the Intercompany Advances
made by Holdco.

     6. Enforceability. This Intercompany Note has been duly authorized, executed
and delivered by the Maker and constitutes its legal, valid and binding obligation, enforceable
against it in accordance with its terms, except to the extent the enforceability hereof may be
limited by (i) the effect of bankruptcy, insolvency, reorganization, moratorium or other similar
laws now or hereafter in effect relating to or affecting the rights and remedies of creditors
generally and (ii) the effect of general principles of equity, whether enforcement is considered in
a proceeding in equity or at law.

 

 

     7. Covenants. The Maker agrees that, from and after the date hereof and so
long as any amounts remain outstanding and unpaid under this Intercompany Note, and for the benefit
of Holdco and the Pledgee:

     (a) the Maker shall, and (where and to the extent contemplated by the terms
of the Incorporated Agreement) shall cause each of its Subsidiaries to, comply with the
affirmative covenants set forth in the following sections of the Incorporated Agreement:

     (i) 4.03 (“Corporate Existence”); provided that the reference
in such section to “Article Five” shall be deemed to refer to clause (b)(x)
below;

     (ii) 4.04 (“Payment of Taxes and Other Claims”);

     (iii) 4.05 (“Maintenance of Properties and Insurance”);
provided that the references in such section to “Section 4.05” shall be
deemed to refer to this clause (iii);

     (iv) 4.06(a) and (c)(i) (“Compliance Certificate; Notice of
Default”); provided that the reference in such section to “Section 11.02”
shall be deemed to refer to Section 10 hereof;

     (v) 4.07 (“Compliance with Laws”); and

     (vi) 4.14 (“Additional Subsidiary Guarantees”); provided that
(A) the reference in such section to the “Trustee” shall be deemed to refer to
Holdco and the Pledgee and (B) clause (1) of such section shall be deemed to have
been amended and restated in its entirety to read as follows: “(1) execute and
deliver to Holdco and the Pledgee a supplement to the Guaranty, substantially in
the form of Exhibit A to the Guaranty, pursuant to which such Restricted Subsidiary
shall unconditionally guarantee all of the Maker’s obligations under this
Intercompany Note; and”; and

     (b) the Maker shall not, nor shall it permit (where and to the extent
contemplated by the terms of the Incorporated Agreement) any of its Subsidiaries to, violate
any of the negative covenants set forth in the following sections of the Incorporated
Agreement:

     (i) 4.09 (“Waiver of Stay, Extension or Usury Laws”);

     (ii) 4.10 (“Limitation on Restricted Payments”); provided that
the references in such section to “Section 4.12” shall be deemed to refer to
clause (iv) below;

     (iii) 4.11 (“Limitation on Transactions with Affiliates”);
provided that the reference in such section to “Section 4.10” shall be deemed
to refer to clause (ii) above;

     (iv) 4.12 (“Limitation on Incurrence of Additional Indebtedness”);
provided that notwithstanding anything to the contrary in Section 4.12 of the
Incorporated Agreement, the incurrence by the Maker of any Indebtedness evidenced
hereby or by any Guarantor of any Indebtedness under the Guaranty in respect of the
Indebtedness evidenced hereby shall not be deemed to result in a default by the
Maker of its obligations under this clause (iv);

 

 

     (v) 4.13 (“Limitation on Dividend and Other Payment Restrictions
Affecting Restricted Subsidiaries”);

     (vi) 4.16 (“Limitation on Asset Sales”); provided that the
references in such section to “Section 4.16” and “Section 5.01” shall be deemed to
refer to this clause (vi) and clause (x) below, respectively;

     (vii) 4.17 (“Limitation on Preferred Stock of Non-Guarantor
Subsidiaries”);

     (viii) 4.18 (“Limitation on Liens”); provided that the
references in such section to “Section 4.12” and “Section 4.18” shall be deemed to
refer, respectively, to clause (iv) above and this clause (viii),
respectively;

     (ix) 4.19 (“Conduct of Business”); and

     (x) 5.01 (“Merger, Consolidation and Sale of Assets”);
provided that (i) the references in such section to “Section 4.12” and
“Section 5.01” shall be deemed to refer to clause (iv) above and this clause,
respectively, and (ii) upon any consolidation, combination or merger or any transfer
of all or substantially all of the assets of the Maker in accordance with such
Section 5.01 of the Incorporated Agreement (as incorporated by reference herein) in
which the Maker is not the continuing corporation, the successor Person formed by
such consolidation or into which the Maker is merged or to which such conveyance,
lease or transfer is made shall succeed to, and be substituted for, and may exercise
every right and power of, the Maker under this Intercompany Note with the same
effect as if such surviving entity had been named as such, and the Maker shall be
released from the obligations under this Intercompany Note except in the case of a
lease of the Maker’s assets and except with respect to any obligations under this
Intercompany Note that arise from, or relate to, such transaction.

     8. Events of Default.

     (a) Events of Default. An “Event of Default” shall occur if:

     (i) the Maker fails to pay interest on this Intercompany Note when the same
becomes due and payable and the default continues for a period of 30 consecutive days;

     (ii) the Maker fails to pay the principal of, or premium, if any, on, this
Intercompany Note, when such principal or premium, if any, becomes due and payable (whether
at maturity, upon redemption or otherwise);

     (iii) the Maker defaults in the observance or performance of any of the
covenants described in clauses (b)(vi) and (ix) of Section 7 and the
default continues for a period of 60 days after the Maker receives written notice specifying
the default (and demanding that such default be remedied) from the Holder;

     (iv) a default in the observance or performance of any other covenant or
agreement contained in this Intercompany Note and the default continues for a period of 30
days after the Maker receives written notice specifying the default (and demanding that such
default be remedied) from the Holder (except in the case of a default with respect to
clause (b)(x) of Section

 

 

7, which will constitute an Event of Default with such notice requirement but
without such passage of time requirement);

     (v) the failure to pay at final maturity (giving effect to any applicable
grace periods and any extensions thereof) the principal amount of any Indebtedness of the
Maker or any Restricted Subsidiary of the Maker, or the acceleration of the final maturity
of any such Indebtedness (which acceleration is not rescinded, annulled or otherwise cured
within 20 days of receipt by the Maker or such Restricted Subsidiary of notice of any such
acceleration) if the aggregate principal amount of such Indebtedness, together with the
principal amount of any other such Indebtedness in default for failure to pay principal at
final maturity or which has been accelerated (in each case with respect to which the 20-day
period described above has elapsed), aggregates $10,000,000 or more at any time;

     (vi) one or more judgments in an aggregate amount in excess of $10,000,000
(which are not covered by insurance as to which the insurer has not disclaimed coverage)
shall have been rendered against the Maker or any of its Restricted Subsidiaries and such
judgments remain undischarged, unpaid or unstayed for a period of 60 days after such
judgment or judgments become final and non-appealable;

     (vii) the Maker or any Significant Subsidiary (A) commences a voluntary case
or proceeding under any Bankruptcy Law with respect to itself, (B) consents to the entry of
a judgment, decree or order for relief against it in an involuntary case or proceeding under
any Bankruptcy Law, (C) consents to the appointment of a Custodian of it or for
substantially all of its property, (D) consents to or acquiesces in the institution of a
bankruptcy or an insolvency proceeding against it, (E) makes a general assignment for the
benefit of its creditors, or (F) takes any corporate action to authorize or effect any of
the foregoing;

     (viii) a court of competent jurisdiction enters a judgment, decree or order
for relief in respect of the Maker or any Significant Subsidiary in an involuntary case or
proceeding under any Bankruptcy Law, which shall (A) approve as properly filed a petition
seeking reorganization, arrangement, adjustment or composition in respect of the Maker or
any Significant Subsidiary, (B) appoint a Custodian of the Maker or any Significant
Subsidiary or for substantially all of its property or (C) order the winding-up or
liquidation of its affairs; and such judgment, decree or order shall remain unstayed and in
effect for a period of 60 consecutive days; or

     (ix) the Guaranty of a Significant Subsidiary ceases to be in full force and
effect or the Guaranty of a Significant Subsidiary is declared to be null and void and
unenforceable or the Guaranty of a Significant Subsidiary is found to be invalid or any
Guarantor that is a Significant Subsidiary denies its liability under the Guaranty (other
than by reason of release of a Guarantor in accordance with the terms of this Intercompany
Note);

provided, however, that if an Event of Default shall be deemed to have occurred under
clause (iii), (iv), (v), (vi) or (ix) and the correlative “Event of Default” as defined in the
Incorporated Agreement shall have been waived in accordance with the terms of the Incorporated
Agreement, then such Event of Default shall be deemed not to have occurred at all and any
acceleration effected under Section 8(b) below solely as a result of such Event of Default
shall be deemed to have been rescinded automatically without further action or notice on the part
of the Holder.

 

 

     (b) Acceleration.

     (i) If an Event of Default (other than an Event of Default specified in
Section 8(a)(vii) or (viii) with respect to the Maker or any of its
Significant Subsidiaries) occurs and is continuing and has not been waived by the Holder
(provided that no such waiver shall be effective unless consented to by the Pledgee),
then the Holder may declare the principal of and premium, if any, and accrued and unpaid
interest on this Intercompany Note to be due and payable by notice in writing to the Maker
specifying the respective Event of Default and that it is a “notice of acceleration” (the
“Acceleration Notice”), and the same shall become immediately due and payable.

     (ii) If an Event of Default specified in Section 8(a)(vii) or
(viii) with respect to the Maker or any of its Significant Subsidiaries occurs and is
continuing, then all unpaid principal of, and premium, if any, and accrued and unpaid
interest on this Intercompany Note shall ipso facto become and be immediately
due and payable without any declaration or other act on the part of the Holder.

     (c) Other Remedies. If an Event of Default occurs and is continuing, the
Holder may pursue any available remedy by proceeding at law or in equity to collect the payment of
principal of, principal on or interest on this Intercompany Note or to enforce the performance of
any provision of this Intercompany Note. A delay or omission by the Holder in exercising any right
or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a
waiver of or acquiescence in the Event of Default. No remedy is exclusive of any other remedy. All
available remedies are cumulative to the extent permitted by law.

     9. Amendments. No amendment, modification or waiver of, or consent with
respect to, any provision of this Intercompany Note shall in any event be effective unless (a) the
same shall be in writing and signed and delivered by the Maker and Holdco, and (b) consented to in
writing by the Pledgee; provided, however, that the consent of the Pledgee shall not
be required:

     (a) to cure any ambiguity, omission, defect or inconsistency (including any
ambiguity, omission, defect or inconsistency arising as a result of the operation of the
proviso to the definition of the term “Incorporated Agreement”);

     (b) to provide for the assumption of the obligations of the Maker under this
Intercompany Note in the case of a merger or consolidation of the Maker or sale of all or
substantially all of the Maker’s assets in accordance with the terms of Section
7(b)(x);

     (c) to make any change that would provide any additional rights or benefits
to the Holder or, indirectly, to the holders of the Notes (as defined in the Indenture), or
that does not adversely affect the legal rights of the Holder hereunder; and

     (d) to conform the text of the terms of this Intercompany Note to any
provision of the prospectus dated November 19, 2004 that relates to the Initial Notes (as
defined in and issued under the Indenture) to the extent that such provision in such
prospectus was intended to be a verbatim recitation of a provision of this Intercompany
Note.

When a Default or Event of Default is so waived, it is cured and ceases.

 

 

     10. Notices. Any notices or other communications required or permitted
hereunder shall be in writing, and shall be sufficiently given if made by hand delivery, by
telecopier or registered or certified mail, postage prepaid, return receipt requested, addressed as
follows:

if to the Maker:

Coinmach Corporation

303 Sunnyside Boulevard, Suite 70

Plainview, New York 11803

Attn: Chief Executive Officer

Facsimile Number: (516) 349-9125

if to Holdco:

Coinmach Service Corp.

303 Sunnyside Boulevard, Suite 70

Plainview, New York 11803

Attn: Chief Executive Officer

Facsimile Number: (516) 349-9125

if to Pledgee:

The Bank of New York, as Collateral Agent

101 Barclay Street, Fl. 8W

New York, New York 10286

Attn: Corporate Trust Administration

Facsimile Number: 212-815-5707

Each of the foregoing Persons by written notice to each other such Person may designate additional
or different addresses for notices to such Person. Any notice or communication shall be deemed to
have been given or made as of the date so delivered if personally delivered; when answered back, if
telexed; when receipt is acknowledged, if faxed; and five (5) calendar days after mailing if sent
by registered or certified mail, postage prepaid (except that a notice of change of address shall
not be deemed to have been given until actually received by the addressee).

     11. Successors and Assigns. This Intercompany Note shall be binding upon and
shall inure to the benefit of the parties hereto and their respective successors and assigns.

     12. Intercompany Note. This Intercompany Note is the intercompany note
referred to in that certain Indenture dated as of November 24, 2004 (as the same may be amended,
supplemented, amended and restated or otherwise modified from time to time, the
“Indenture”), among Holdco, as issuer, Coinmach Laundry Corporation, a Delaware corporation,
as guarantor, and The Bank of New York, as trustee and collateral agent (in such capacity, the
“Pledgee”) and has been pledged by Holdco to Pledgee under the Security Agreement (as
defined in the Indenture). Upon the occurrence and during the continuance of any Event of Default
under and as defined in the Indenture, and following the giving of notice thereof by the Pledgee to
the Maker and Holdco, (i) the Pledgee shall have all rights of the Holder of and under this
Intercompany Note and (ii) the Maker shall make every payment due under this Intercompany Note, in
same day funds, to such account as the Pledgee shall direct in such notice (it being understood and
agreed that Holdco shall be the Holder of this Intercompany Note prior to the giving of any such
notice).

 

 

     13. Waiver; Expense Reimbursement. The Maker hereby waives grace, demand,
presentment for payment, protest, notice of any kind (including, but not limited to, notice of
dishonor, notice of protest, notice or intention to accelerate or notice of acceleration) and
diligence in collecting and bringing suit against any party hereto. In addition to, but not in
limitation of, the foregoing, the Maker further agrees to pay all expenses, including reasonable
attorneys’ fees and legal expenses, incurred by the Holder endeavoring to collect any amounts
payable hereunder which are not paid when due, whether by acceleration or otherwise.

     14. Definitions.

     (a) Definitions. The following terms, as used herein (including as used in
any provision of the Incorporated Agreement that has been incorporated by reference herein), have
the following meanings:

     “Comparable Treasury Issue” means the United States Treasury security or securities
selected by an Independent Investment Banker as having an actual or interpolated maturity
comparable to the remaining term of this Intercompany Note that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new issues of corporate
debt securities of a comparable maturity to the remaining term of such notes.

     “Comparable Treasury Price” means, with respect to any prepayment date, (i) the average
of the Reference Treasury Dealer Quotations for such prepayment date, after excluding the highest
and lowest such Reference Treasury Dealer Quotations, or (ii) if the Pledgee obtains fewer than
four such Reference Treasury Dealer Quotations, the average of all such quotations.

     “Default” means an event or condition the occurrence of which is, or with the lapse
of time or the giving of notice or both would be, an Event of Default.

     “Guarantor” means each Subsidiary of the Maker that is a party to the Guaranty.

     “Guaranty” means the Guaranty, dated as of November 24, 2004, made by the Subsidiaries
of the Maker party thereto of the obligations of the Maker of its obligations under this
Intercompany Note.

     “Incorporated Agreement” means the Indenture, dated as of January 25, 2002, between the
Maker, as issuer, each Subsidiary of the Maker party thereto from time to time as a guarantor, and
U.S. Bank, N.A., as trustee, as the same may be amended, supplemented, amended and restated or
otherwise modified from time to time; provided that upon the redemption or refinancing in
full of all of the outstanding principal amount of the notes issued under the Incorporated
Agreement with the proceeds of extensions of credit under another agreement, the reference herein
to the “Incorporated Agreement” shall refer to such refinancing agreement and the terms of this
Intercompany Note that relate to definitions and sections contained in the refinanced Incorporated
Agreement shall be interpreted to refer to the correlative definitions and sections of such
refinancing agreement in a manner consistent with the terms hereof (it being understood and agreed
that (a) if any covenant of the refinanced Incorporated Agreement that is incorporated by reference
herein does not have a correlative covenant in such refinancing agreement, such covenant shall no
longer be binding on the Maker or any of its Subsidiaries thereafter and (b) if such refinancing
agreement contains a covenant that does not have a correlative covenant that is incorporated by
reference herein, such covenant of such refinancing agreement will not be binding on the Maker or
any of its Subsidiaries). Each reference herein to the Incorporated Agreement shall by such
reference incorporate the provisions of the Incorporated Agreement to which such reference is made
as though fully set forth herein, together with related definitions and ancillary provisions,
except as the context may otherwise require:

 

 

     (i) references therein to “this Indenture”, the “Notes” and a “Note” shall, in each
instance, be deemed to refer to and include this Intercompany Note;

     (ii) references therein to the “Trustee”, the “Holders” and a “Holder” shall, in each
instance, be deemed to refer to the Holder;

     (iii) references therein to a “Default” and an “Event of Default” shall be deemed to
refer to a Default and an Event of Default, respectively;

     (iv) references therein to a “Guarantor”, the “Guarantors”, a “Guarantee” and the
“Guarantees” shall be deemed to refer to a Guarantor, the Guarantors, the Guaranty and the
Guaranty, respectively; and

     (v) references therein to the “Company” shall be deemed to refer to the Maker.

     “Independent Investment Banker” means one of the Reference Treasury Dealers appointed
by the Pledgee after consultation with the Maker.

     “Reference Treasury Dealer” means one of five independent investment banking firms of
national reputation, or their respective affiliates, selected by the Maker, which are primary U.S.
Government securities dealers in The City of New York (a “Primary Treasury Dealer”).

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any prepayment date, the average, as determined by the Pledgee, of the bid and ask
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal
amount) quoted in writing to the trustee by such Reference Treasury Dealer at 3:30 p.m., New York
time, on the third business day preceding such prepayment date.

     “Treasury Rate” means, with respect to any prepayment date, the rate per annum equal to
the quarterly equivalent yield to maturity or interpolated, on a day count basis, of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue, expressed as a percentage of
its principal amount, equal to the Comparable Treasury Price for such prepayment date.

     (b) Incorporated Definitions. Unless the context otherwise requires,
capitalized terms defined in the Incorporated Agreement and not otherwise defined herein shall have
the meanings assigned thereto in the Incorporated Agreement.

     15. Governing Law. THIS INTERCOMPANY NOTE HAS BEEN DELIVERED IN NEW YORK,
NEW YORK AND SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

     16. Captions. Captions used in this Intercompany Note are provided for
convenience of reference only and shall not affect the meaning or interpretation of any provision
of this Intercompany Note.

     17. Treatment as Indebtedness. The Maker and Holdco agree to treat all
Intercompany Advances as, and this Intercompany Note as evidence of, Indebtedness of the Maker for
all purposes, including for U.S. federal, state, local and non-U.S. tax purposes.

 

 

     IN WITNESS WHEREOF, the Maker has caused this Intercompany Note to be duly executed and
delivered by its duly authorized officer.

	 	 	 	 	 	 	 
	 	 	COINMACH CORPORATION
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Robert M. Doyle
	 	 	 	 	 
	

	 	 	 	Name:
	 	Robert M. Doyle
	

	 	 	 	Title:
	 	Chief Financial Officer, Senior Vice President,

Secretary and Treasurer

Accepted and Agreed:

COINMACH SERVICE CORP.

	 	 	 	 	 
	By:	 	/s/ Robert M. Doyle
	 	 	 
	

	 	Name:
	 	Robert M. Doyle
	

	 	Title:
	 	Chief Financial Officer, Senior Vice President,

Secretary and Treasurer

PAY TO THE ORDER OF THE BANK OF NEW YORK,
   AS
COLLATERAL AGENT

COINMACH SERVICE CORP.

	 	 	 	 	 
	By:	 	/s/ Robert M. Doyle
	 	 	 
	

	 	Name:
	 	Robert M. Doyle
	

	 	Title:
	 	Chief Financial Officer, Senior Vice President,

Secretary and Treasurer

 

 

Schedule A

PAYMENT GRID

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Amount of	 	 	Amount of	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	Principal	 	 	Intercompany	 	 	Outstanding	 	 	Notation Made	 
	 	Date	 	 	Principal Amount	 	 	Payment	 	 	Advance	 	 	Principal Balance	 	 	By	 
	 	12/21/04

	 	 	$	79,539,998.81	 	 	 	-----
	 	 	$	2,130,085.12	 	 	 	$	81,670,083.93	 	 	 	MBR&M, as atty for CSCEX-10.1

 

Exhibit 10.1

     LIMITED WAIVER AND AMENDMENT NO. 1 AND AGREEMENT dated as of November 15, 2004 (this
“Waiver & Amendment”), with respect to the Credit Agreement dated as of January 25, 2002
(the “Credit Agreement”), among Coinmach Laundry Corporation (“Holdings”), Coinmach
Corporation (the “Borrower”), the Subsidiary Guarantors listed on the signature pages
thereto or that otherwise became party to the Credit Agreement by joinder, the lending institutions
from time to time party thereto (each, a “Bank” and, collectively, the “Banks”),
Deutsche Bank Trust Company Americas (f/k/a Bankers Trust Company), as Administrative Agent and
Collateral Agent, Deutsche Bank Securities Inc. (f/k/a Deutsche Banc Alex. Brown Inc.), as Lead
Arranger and Book Manager, J.P. Morgan Securities Inc. and Wachovia Capital Markets, LLC (f/k/a
First Union Securities, Inc.), as Syndication Agents, and Credit Lyonnais New York Branch, as
Documentation Agent.

     A. Pursuant to the Credit Agreement, the Banks have agreed to extend credit to the Borrower
pursuant to the terms and conditions set forth therein.

     B. The Credit Parties have indicated to the Administrative Agent and the Banks that a newly
formed affiliate of Holdings that will become the parent of Holdings (“CSC”) intends to
enter into a series of transactions, along with certain of the Credit Parties, whereby the
following will occur: (i) CSC will issue (x) between $250.0 million and $380.0 million in
aggregate gross proceeds of Income Deposit Securities (“IDS”) that consist of an aggregate
of a number of shares to be determined of CSC class A common stock (gross proceeds equal to
approximately 55% of the aggregate gross proceeds of the IDS) and senior secured notes due 2024 in
an initial aggregate principal amount equal to approximately 45% of the aggregate gross proceeds of
the IDS (the “IDS Debt”) and (y) an additional $20.0 million in aggregate principal amount
senior secured notes due 2024 separate and apart from the IDS (such additional senior secured notes
due 2024, the “Third Party Notes”); (ii) CSC will use a portion of the net proceeds from
the IDS offering to make an intercompany loan to the Borrower equal to not less than 60% of the sum
of (x) the aggregate principal amount of the IDS Debt and (y) the aggregate principal amount of the
Third Party Notes (such intercompany loan amount to be in the aggregate between $79.5 million and
$114.6 million depending on the size of the IDS offering) (the “Intercompany Loan”); (iii)
CSC will use an amount equal to (x) the proceeds, net of the fees and expenses referred to in
clause (viii) below, from (a) the IDS offering plus (b) the Third Party Notes offering, minus (y)
the sum of (c) the aggregate principal amount of the Intercompany Loan plus (d) any amount of net
proceeds from the IDS offering received as a result of the underwriters’ exercise of their
overalottment option which shall be retained by Holdings to redeem a like amount of its preferred
equity interests, to make a capital contribution to Holdings, and Holdings will, in turn, make a
capital contribution in the same amount to the Borrower (between $ 165.3 million and $252.4 million
depending on the size of the IDS offering) (the “Capital Contribution”); (iv) the Borrower
will use between approximately $133.2 million, plus up to approximately $5.5 million depending on
the redemption date, and $171.7 million, plus up to approximately $7.1 million depending on the
redemption date, of the proceeds it receives from the Capital Contribution to redeem between
approximately 27.2% and 35% of the Borrower’s 9% Senior Notes due 2010 (the “Senior Notes”)
and to pay redemption premium and accrued and unpaid interest on the Senior Notes; (v) the Borrower
will use between $14.6 million and $21.8 million, depending on the timing and size of the IDS
offering, of the proceeds it receives from the Intercompany Loan and the Capital Contribution to
repay the full remaining aggregate principal amount of Tranche

 

 

A Term Loans ($15.5 million before December 31, 2004 and $14.6 million on and after December 31,
2004 after giving effect to a scheduled amortization payment) and to repay up to approximately $6.3
million aggregate principal amount of Tranche B Term Loans (collectively, the “Optional
Prepayment”); (vi) the Borrower will use between approximately $89.7 million and approximately
$167.3 million, depending on the size and timing of the IDS offering, of the proceeds it receives
from the Intercompany Note and the Capital Contribution plus up to approximately $9.5 million of
cash on hand to pay a dividend to Holdings to enable Holdings to redeem a like amount of its
outstanding preferred equity interests, (vii) the common stock of Appliance Warehouse of America,
Inc. will become owned by CSC, (viii) CSC will pay fees and expenses related to the foregoing of
between $25.2 million and $33.0 million, depending on the size of the IDS offering and (ix)
Borrower may, at its option use approximately $0.9 (as of September 30, 2004) million to terminate
existing interest rate swap agreements (the transactions described in clauses (i) through (ix),
collectively, the “IDS Financing”). The actual specific amounts within the ranges
described above will be based upon the actual size of the IDS offering and determined in accordance
with Section 25 of this Waiver & Amendment.

     C. The Credit Parties have requested that the Supermajority Banks of each Tranche agree to
waive the application of Sections 4.02(e) and (j) as they relate to the IDS Financing and amend
certain provisions of Section 4.02 of the Credit Agreement. The Credit Parties have requested that
the Supermajority Banks and/or Required Banks agree to amend certain other provisions of the Credit
Agreement, in connection with and conditioned upon the closing of the IDS Financing, in each case
as set forth herein.

     D. The Credit Parties have additionally requested that the Required Banks agree to amend
certain other provisions of the Credit Agreement, which amendments would not be conditioned on the
closing of the IDS Financing.

     E. The Supermajority Banks and Required Banks, as the case may be, are willing to so agree
and to waive and/or amend, as the case may be, the Credit Agreement pursuant to the terms and
subject to the conditions set forth herein.

     F. Capitalized terms used and not otherwise defined herein shall have the meanings ascribed
to them in the Credit Agreement, as amended by this Waiver & Amendment.

     In consideration of the premises and the agreements, provisions and covenants contained
herein, the parties hereto hereby agree, on the terms and subject to the conditions set forth
herein, as follows:

     SECTION 1. Limited Waiver. (i) The Supermajority Banks holding Tranche B Term Loans
hereby waive the Borrower’s obligation to make the Optional Prepayment on a pro
rata basis among the Term Loans and hereby agree that the Optional Prepayment shall first
be applied to repay in full the currently outstanding amount of all Tranche A Term Loans and any
remainder of the Optional Prepayment shall be applied to the Tranche B Term Loans as otherwise
provided in Section 4.01(a); (ii) the Supermajority Banks of each Tranche hereby waive the
Borrower’s obligation, pursuant to Section 4.02(e), to apply any proceeds from the incurrence by
the Borrower of the Intercompany Loan as a mandatory repayment of principal of

2

 

outstanding Term Loans; (iii) the Supermajority Banks of each Tranche hereby waive the Borrower’s
obligation, pursuant to Section 4.02(j), to apply any net proceeds from the Capital Contribution as
a mandatory repayment of principal of outstanding Term Loans; and (iv) the Supermajority Banks of
each Tranche hereby waive any Default or Event of Default arising from the failure of the Borrower
to comply with the requirements of Sections 4.01, 4.02(e) and 4.02(j) in respect of the aspects of
the IDS Financing described in clauses (i) through (iii) of this Section 1.

     SECTION 2. Amendments to Section 2.01(a) of the Credit Agreement. Section 2.01(a) of
the Credit Agreement is hereby amended by deleting, in the sixth line thereof, the phrase “(other
than the Spinoff Guarantor).”

     SECTION 3. Amendments to Section 4.02 of the Credit Agreement.

          (i) Section 4.02(e) of the Credit Agreement is hereby amended by deleting, in each of the
second and third/fourth lines thereof, the phrase “the Spinoff Guarantor,”.

          (ii) Section 4.02(f) of the Credit Agreement is hereby amended (for the sole purpose of
removing references to the “Release Payments,” “Spinoff Guarantor,” “Spinoff Guarantor Release
Event” and directly related provisions) by deleting it in its entirety and replacing it with:

     “In addition to any other mandatory repayments or commitment reductions pursuant to this
Section 4.02, on each date after the Effective Date upon which the Borrower or any of its
Subsidiaries receives proceeds from any sale of assets (including capital stock and securities held
thereby, but excluding (i) sales or transfers of inventory or equipment in the ordinary course of
business (including, without limitation, sales or transfers of inventory or equipment to
Subsidiaries), (ii) the sale or other disposition of obsolete equipment or inventory, (iii) the
sale of overdue receivables or liquidation or sale of Cash Equivalents in the ordinary course of
business, (iv) sales of assets between the Borrower and Subsidiary Guarantors and/or sales of
assets between Subsidiary Guarantors and (v) sales or transfers of assets up to an aggregate amount
of $1,000,000 in any fiscal year, in each case to the extent permitted by Section 9.02) an amount
equal to 100% of the Net Sale Proceeds therefrom shall be applied as a mandatory repayment of
principal of outstanding Term Loans in accordance with the requirements of Sections 4.02(k), (l)
and (m); provided that, in addition to the exceptions set forth above, so long as no
Default or Event of Default then exists, up to an aggregate of $15,000,000 of Net Sale Proceeds in
any fiscal year shall not be required to be so applied on the date of receipt thereof to the extent
that the Borrower has delivered a certificate to the Administrative Agent within 15 days following
such date stating that such Net Sale Proceeds shall be reinvested or shall be committed to be
reinvested in the Business within 180 days following such date (and to the extent the asset sold
constituted Collateral, the assets in which such Net Sales Proceeds are reinvested shall be pledged
as Collateral pursuant to the appropriate Security Documents); and provided,
further, that if all or any portion of such Net Sale Proceeds not required to be applied to
the repayment of Term Loans pursuant to the preceding proviso are either (a) not so used or
committed to be so used within 180 days after the date of receipt of such Net Sale Proceeds or (b)
if committed to be so used within 180 days after the date of receipt of such Net Sale Proceeds and
not so used

3

 

within 270 days after the date of receipt of such Net Sale Proceeds, then, in either such
case, such remaining portion not used or committed to be used in the case of the preceding clause
(a) and not used in the case of the preceding clause (b) shall be applied on the date which is 180
days after the date of receipt of such Net Sale Proceeds in the case of clause (a) above or the
date occurring 270 days after the date of receipt of such Net Sale Proceeds in the case of clause
(b) above as a mandatory repayment of principal of outstanding Term Loans in accordance with the
requirements of Sections 4.02(k), (l) and (m).”.

          (iii) Section 4.02(g) of the Credit Agreement is hereby amended by deleting, in the second
line thereof, the phrase “the Spinoff Guarantor,”.

          (iv) Section 4.02(j) of the Credit Agreement is hereby amended by (A) deleting, in the third
line thereof, the phrase “(other than any Release Payments)” and (B) deleting clause (x) in the
second parenthetical thereof and replacing it in its entirety with “(x) Holdings to the extent such
proceeds are from a capital contribution from the sale or issuance of equity by any direct or
indirect parent of the Borrower to GTCR or”.

     SECTION 4. Amendments to Section 7.09 of the Credit Agreement. Section 7.09 of the
Credit Agreement is hereby amended by deleting it in its entirety and replacing it with:

     “Parent, Holdings, the Borrower and each of their respective Subsidiaries are members of an
affiliated group of corporations filing consolidated returns for federal income tax purposes, of
which Parent is the “common parent” (within the meaning of Section 1504 of the Code) of such group.
Each of Parent, Holdings, the Borrower and each of their respective Subsidiaries have timely filed
or caused to be timely filed, on the due dates thereof or within applicable grace periods, with the
appropriate taxing authority, all federal Tax Returns and all material state or other Tax Returns
required to be filed by Parent, Holdings, the Borrower and/or any of their respective Subsidiaries
and each such Tax Return is complete and correct in all material respects. Each of Parent,
Holdings, the Borrower and each of their respective Subsidiaries have paid all material Taxes due
and payable by them other than those which are not delinquent or which are contested in good faith
and for which adequate reserves have been established in accordance with GAAP. Except as disclosed
in the financial statements referred to in Section 7.05(a), there is no material action, suit,
proceeding, investigation, audit, or claim now pending or, to the best knowledge of the Borrower,
threatened by any authority regarding any Taxes relating to Parent, Holdings, the Borrower or any
of their respective Subsidiaries. The charges, accruals and reserves on the books of Parent and
its Subsidiaries in respect of Taxes and other governmental charges are, in the opinion of the
Borrower, in material conformity with GAAP. As of the Effective Date, none of Parent, Holdings,
the Borrower or any of their respective Subsidiaries has entered into an agreement or waiver or
been requested to enter into an agreement or waiver extending any statute of limitations relating
to the payment or collection of Taxes of Parent, Holdings, the Borrower or any of their respective
Subsidiaries, and the Borrower is not aware of any circumstances that would cause the taxable years
or other taxable periods of Parent, Holdings, the Borrower or any of their respective Subsidiaries
not to be subject to the normally applicable statute of limitations.”

4

 

     SECTION 5. Amendments to Section 7.11(b) of the Credit Agreement. Section 7.11(b) of
the Credit Agreement is hereby amended by adding to the end of the first sentence thereof, the
phrase “other than the Second Priority Lien of the IDS Collateral Agent in respect of the common
stock of the Borrower.”.

     SECTION 6. Amendments to Section 9.01 of the Credit Agreement.

          (i) Section 9.01(t) of the Credit Agreement is hereby amended by deleting the word “and” at
the end thereof.

          (ii) Section 9.01(u) shall become Section 9.01(v) and is otherwise hereby amended by deleting
the phrase “(t)” therein and replacing it with the phrase “(u)”.

          (iii) Section 9.01 is hereby amended by adding a new clause (u) that shall read in its
entirety:

     “(u) Liens in favor of the IDS Collateral Agent representing a Second Priority Lien on the
common stock of the Borrower;”.

          (iv) The proviso at the end of Section 9.01 is hereby amended by deleting the phrase “(u)”
and replacing it with the phrase “(v)” in the first line thereof and by deleting the phrase “(other
than the Liens described in clauses (e) and (l) of this Section 9.01)” and replacing it with
“(other than the Liens described in clauses (e), (l) and (u) of this Section 9.01)”.

     SECTION 7. Amendments to Section 9.02 of the Credit Agreement.

          (i) Section 9.02(g) of the Credit Agreement is hereby amended by deleting it in its entirety
and replacing it with:

     “the Borrower or any Subsidiary of the Borrower may transfer assets to (i) the Borrower or any
other Subsidiary Guarantor so long as (x) the transferee is a Credit Party and (y) the security
interests granted to the Collateral Agent for the benefit of the Secured Creditors pursuant to the
Security Documents in the assets so transferred shall remain in full force and effect and perfected
(to at least the same extent as in effect immediately prior to such transfer) and (ii) the Foreign
Subsidiaries in an amount, together with the amount permitted in accordance with Section
9.05(g)(iii), not to exceed $2,500,000 in the aggregate;”

          (ii) Section 9.02(h) of the Credit Agreement is hereby amended by deleting it in its entirety
and replacing it with “[Reserved].”.

          (iii) Section 9.02(k) of the Credit Agreement is hereby amended by deleting it in its
entirety and replacing it with:

          “the Borrower or any of its Wholly Owned Subsidiaries may consummate a Permitted
Acquisition;”.

5

 

          (iv) Section 9.02(m) of the Credit Agreement is hereby amended by deleting, in clause (i) of
the second proviso thereto, the phrase “(other than the Spinoff Guarantor)”.

          (v) Section 9.02(p) of the Credit Agreement is hereby amended by deleting it in its entirety
and replacing it with “[Reserved].”

     SECTION 8. Amendments to Section 9.03 of the Credit Agreement.

          (i) Section 9.03(b) of the Credit Agreement is hereby amended by adding at the end thereof:
“provided, further, the amount of Dividends declared and paid in any four
consecutive quarter period pursuant to this clause (b) shall not exceed $10.0 million;”.

          (ii) Section 9.03(c) of the Credit Agreement is hereby amended (for the sole purposes of
deleting all references to the Spinoff Guarantor and to allow Parent to make tax payments) by
deleting it in its entirety and replacing it with:

     “the Borrower or any Subsidiary of the Borrower may make payments to Holdings so that Holdings
may make payments to Parent in an amount not in excess of the federal and state (in such states
that permit consolidated or combined tax returns) income tax liability that the Borrower or the
Borrower’s Subsidiaries would have been liable for if Parent, Holdings, the Borrower and its
Subsidiaries had filed their taxes on a stand-alone basis; provided that such payments
shall be made to Holdings no earlier than five days prior to the date on which Parent is required
to make its payments to the Internal Revenue Service or the applicable taxing authority, as
applicable;”.

          (iii) Section 9.03(d) of the Credit Agreement is hereby amended by deleting it in its
entirety and replacing it with:

     “if no Default or Event of Default shall have occurred and be continuing, the Borrower may
declare and pay Dividends to Holdings so that Holdings may declare and pay dividends or make
distributions to Parent so that Parent may repurchase Parent Common Stock (or rights to acquire
Parent Common Stock) from members of Holdings’, Parent’s or the Borrower’s management in connection
with certain executive employment agreements in an aggregate amount not to exceed $1,000,000 in any
fiscal year; provided that any amounts not used in any fiscal year can be carried forward
and used in the immediately succeeding fiscal year;”.

          (iv) Section 9.03(e) of the Credit Agreement is hereby amended by deleting it in its entirety
and replacing it with:

     “if no Default or Event of Default shall have occurred and be continuing, the Borrower may
declare and pay Dividends to Holdings so that Holdings may declare and pay dividends or make
distributions to Parent so that Parent may pay reasonable tax, legal and accounting fees and other
support services provided to or for the benefit of the Borrower and/or any of its Subsidiaries and
to pay Holdings’ and Parent’s operating and administrative expenses, in an aggregate amount not to
exceed $2,000,000 in any fiscal year;”.

6

 

          (v) Section 9.03(f) of the Credit Agreement is hereby amended by deleting it in its entirety
and replacing it with:

     “the Borrower may declare and pay Dividends to Holdings so that Holdings may declare and pay
dividends and distributions to Parent (i) in connection with any payment obligations (including
administration costs and expenses) under Parent’s stock or other equity participation purchase
program or similar equity based benefits plans offered to employees of Parent and/or Subsidiaries
of Parent, including, without limitation, any employee stock option plan or options to purchase
Parent Common Stock, in an aggregate amount not to exceed $1,000,000 in any fiscal year or (ii) so
that Parent may make loans and advances to employees of Parent and its Subsidiaries in the ordinary
course of business and consistent with past practice, in an aggregate principal amount which, when
taken together with the aggregate principal amount of loans and advances (exclusive of loans and
advances for moving and travel expenses or relocation expenses incurred in connection with a
permitted acquisition) made by the Borrower and its Subsidiaries after the Effective Date in
accordance with Section 9.05(e) do not exceed $1,500,000 at any one time outstanding;”.

          (vi) Section 9.03(g) of the Credit Agreement is hereby amended by deleting it in its entirety
and replacing with:

     “(x) if no Event of Default shall have occurred and be continuing, any IDS Distribution and
(y) if no Default or Event of Default shall have occurred and be continuing, Dividends to Holdings
in respect of Section 9.06(g), shall be permitted;”.

          (vii) Section 9.03(h) of the Credit Agreement is hereby amended by deleting it in its
entirety and replacing it with:

     “(h) the Permitted IDS Dividend shall be permitted;”.

     SECTION 9. Amendments to Section 9.04 of the Credit Agreement. Section 9.04 of the
Credit Agreement is hereby amended by deleting the word “and” at the end of clause (l) thereof,
deleting the period at the end of clause (m) thereof and replacing it with the phrase “; and” and
adding a new clause (n) which shall read in its entirety:

     “(n) Indebtedness incurred pursuant to the IDS Intercompany Note.”

     SECTION 10. Amendments to Section 9.05 of the Credit Agreement.

          (i) Section 9.05 (e) of the Credit Agreement is hereby amended deleting the words “Holdings”
and “Borrower” in each instance where they appear therein and replacing such words, in each case,
with the word “Parent”.

          (ii) Section 9.05(g) of the Credit Agreement is hereby amended by deleting clauses (iv) and
(v) thereof in their entirety.

7

 

          (iii) Section 9.05(j) of the Credit Agreement is hereby amended by deleting the phrase
“(other than the Spinoff Guarantor)” at the end thereof.

          (iv) Sections 9.05(k) and (l) of the Credit Agreement are hereby amended by deleting each of
them in their entirety and replacing each of them with “[Reserved];”.

          (v) Section 9.05(m) of the Credit Agreement is hereby amended by deleting, in the first line
thereof, the phrase “(other than the Spinoff Guarantor)”.

          (vi) Section 9.05 (n) of the Credit Agreement is hereby amended by deleting it in its
entirety and replacing it with: “the Borrower may invest in or redeem up to (x) $157.5 million
aggregate principal amount of the Senior Notes upon consummation of and in connection with the IDS
Transactions and (y) $30,000,000 plus that portion of the Retained Amount since the date hereof not
paid as a Dividend pursuant to Section 9.03(b) and otherwise permitted pursuant to Section 9.11 of
Senior Notes from time to time.”

     SECTION 11. Amendments to Section 9.06 of the Credit Agreement.

          (i) Section 9.06(c) of the Credit Agreement is hereby amended by inserting the phrase “and
Parent” at the end thereof.

          (ii) Section 9.06(d) of the Credit Agreement is hereby amended by deleting the word
“Holdings” and inserting the word “Parent” in its place.

          (iii) Section 9.06(f) of the Credit Agreement is hereby amended by deleting the word
“Holdings” and inserting the word “Parent” in its place and by deleting the word “and” at the end
thereof.

          (iv) Section 9.06(g) of the Credit Agreement is hereby amended by deleting the word
“Holdings” and inserting the word “Parent” in its place and by deleting the period at the end
thereof and replacing it with the phrase “; and”.

          (v) Section 9.06 of the Credit Agreement is hereby amended by adding thereto a new clause (h)
which shall read in its entirety:

     “(h) Holdings and its Subsidiaries may enter into the IDS Transactions.”.

          (vi) Section 9.06 of the Credit Agreement is hereby amended by deleting the last two words
thereof and replacing them with “GTCR”.

     SECTION 12. Amendments to Section 9.07(c) of the Credit Agreement. Section 9.07(c)
of the Credit Agreement is hereby amended by deleting it in its entirety and replacing it with
“[Reserved].”

     SECTION 13. Amendments to Section 9.09 of the Credit Agreement. Section 9.09 of the
Credit Agreement is hereby amended by deleting the second proviso thereof in its entirety.

8

 

     SECTION 14. Amendments to Section 9.11 of the Credit Agreement.

     (i) Section 9.11(a) of the Credit Agreement is hereby amended by deleting it in its entirety
and replacing it with the following:

     “make (or give any notice in respect of) any voluntary or optional payment or prepayment on or
redemption or acquisition for value of (including, without limitation, by way of depositing with
the trustee with respect thereto or any other Person money or securities before due for the purpose
of paying when due) Senior Notes other than (x) an amount up to $171.7 million (including
redemption premium) plus up to $7.1 million of accrued and unpaid interest thereon upon
consummation of and in connection with the IDS Transactions and (y) as long as no Default or Event
of Default exists, an amount up to $30,000,000 plus that portion of the Retained Amount from the
date hereof not paid as a Dividend pursuant to Section 9.03(b);”

     (ii) Section 9.11(b) of the Credit Agreement is hereby amended by inserting the words “or the
IDS Intercompany Note” before the phrase “; and” therein.

     SECTION 15. Amendment to Section 9.16 of the Credit Agreement. Section 9.16 of the
Credit Agreement is hereby amended by inserting the phrase “Parent,” between the words “than” and
“Holdings” on the third line thereof.

     SECTION 16. Amendment to Section 10.04 of the Credit Agreement. Section 10.04 of the
Credit Agreement is hereby amended by deleting it in its entirety and replacing it with:

     “(i) Parent or any of its Subsidiaries shall default in any payment of any Indebtedness
(other than the Obligations) beyond the period of grace, if any, provided in the instrument or
agreement under which such Indebtedness was created or (ii) Parent or any of its Subsidiaries shall
default in the observance or performance of any covenant relating to any Indebtedness (other than
the Obligations) or contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event shall occur or condition exist, the effect of which default or other
event or condition is to cause, or in the case of the Borrower and its Subsidiaries permit the
holder or holders of such Indebtedness (or a trustee or agent on behalf of such holder or holders)
to cause (determined without regard to whether any notice is required), any such Indebtedness to
become due prior to its stated maturity, or (iii) any Indebtedness (other than the Obligations) of
Holdings or its Subsidiaries shall be declared to be due and payable, or required to be prepaid
other than by regularly scheduled required payments, prior to the stated maturity thereof,
provided that (x) it shall not be a Default or Event of Default under this Section 10.04
unless the aggregate principal amount of all Indebtedness as described in the preceding clauses (i)
through (iii), inclusive, is at least $2,500,000; or”

     SECTION 17. Amendments to Section 11 of the Credit Agreement.

     (i) Section 11 of the Credit Agreement is hereby amended by deleting the following terms in
their entirety: “Additional Spinoff Guarantor Note,” “Appliance Warehouse Assets,” “Appliance
Warehouse Investment,” “Appliance Warehouse Note,” “Initial Appliance Warehouse

9

 

Investment,” “Permitted Distribution,” “Permitted Tax Distribution,” “Release Payment,”
“Spinoff Guarantor,” “Spinoff Guarantor Note” and “Spinoff Guarantor Release Event.”

     (ii) The definition of “Applicable Base Rate Margin” is hereby amended by adding to the end
thereof, the following:

     “provided further, that in the case of clauses (i) (before giving effect to
the first proviso hereof when the Pro Forma Leverage Ratio is less than 4.0:1.0) and (ii) hereof,
the Applicable Base Rate Margin will be adjusted to 2.00% on each day where the Loans are not rated
at least B1 or better by Moody’s Investors Service, Inc. and B+ or better by Standard & Poor’s
Rating Services.”

     (iii) The definition of “Applicable Eurodollar Margin” is hereby amended by adding to the end
thereof, the following:

     “provided further, that in the case of clauses (i) (before giving effect to
the first proviso hereof when the Pro Forma Leverage Ratio is less than 4.0:1.0) and (ii) hereof,
the Applicable Eurodollar Margin will be adjusted to 3.00% on each day where the Loans are not
rated at least B1 or better by Moody’s Investors Service, Inc. and B+ or better by Standard &
Poor’s Rating Services.”

     (iv) The definition of “Capital Expenditure” is hereby amended by deleting the period at the
end thereof and inserting “; provided that, for the purposes of Section 9.07 and the
definitions of “Consolidated Fixed Charge Coverage Ratio” and “Excess Cash Flow,” Capital
Expenditures will not include, to the extent used before June 30, 2006 to make Capital Expenditures
in respect of the management and information systems of the Borrower and its Subsidiaries or in
property, plant and equipment used in the ordinary business of Appliance Warehouse of America,
Inc., the lesser of (x) $15.0 million and (y) the amount by which cash on hand exceeds $25.0
million upon consummation of and after giving effect to the IDS Transactions.”

     (v) The definition of “Consolidated EBIT” is hereby amended by:

     (a) inserting the phrase “IDS” before the word “Transactions” in clause (v) therein; and

     (b) deleting the phrase “and” of the ninth line of such definition and inserting a new clause
(vii) that shall read in its entirety “(vii) up to $1,000,000 of legal, tax and accounting costs
and expenses and other administrative or operating costs and expenses of Parent or Holdings or
relating to Parent’s or Holdings’ ownership of the Borrower, in each case, to the extent deducted
in the calculation of Consolidated Net Income.”.

     (vi) The definition of “Consolidated Fixed Charges” is hereby amended by deleting the word
“and” before “(iv),” inserting a comma in its place, deleting the period at the end thereof and
inserting “and (v) IDS Distributions for such period to the extent made”.

10

 

     (vii) The definition of “Excess Cash Flow” is hereby amended by deleting the period at the
end thereof and adding “minus, the amount of any IDS Distribution for such period (to the
extent paid).”.

     (viii) The definition of “L/C Supportable Indebtedness” is hereby amended by deleting, in
each of the second/third and fifth/sixth lines, the phrase “(subsequent to the Permitted
Distribution, other than the Spinoff Guarantor)”.

     (ix) The definition of “Net Sale Proceeds” is hereby amended by deleting the phrase “Holdings
consolidated group” on the 13th line thereof and replacing it with “Parent’s consolidated group”.

     (x) The definition of “Permitted Acquisition” is hereby amended by:

     (a) deleting the phrase “equity interests of Holdings” on the last line of clause (B)
thereof and replacing it with “equity interests of Parent”,

     (b) deleting clause (D)(v) thereof in its entirety and replacing it with “in the case
of Parent’s common stock issued as consideration to the seller in connection with a
Permitted Acquisition, a description of the Parent common stock to be issued in connection
with the consummation of such Permitted Acquisition and the estimated fair market value (as
determined in good faith by the Board of Directors of Parent or Holdings, as the case may
be) thereof;”, and

     (c) inserting the word “and” at the end of clause (D), deleting the phrase “; and” at
the end of clause (E) and inserting a period in its place and deleting clause (F) in its
entirety.

     (xi) The definition of “Subsidiary” is hereby amended by deleting in its entirety the proviso
thereto.

     (xii) The definition of “Tax Sharing Agreement” is hereby amended by deleting the word
“Holdings” wherever it appears therein and replacing it, in each case with the word “Parent”.

     (xiii) Section 11 of the Credit Agreement is hereby amended by adding the following defined
terms thereto in alphabetical order:

          (a) “IDS” shall mean the income deposit securities issued by Parent composed of one share of
Parent class A common stock and an IDS Note in an initial principal amount as described in the
final prospectus covering the IDS as filed with the Securities and Exchange Commission.

          (b) “IDS Collateral Agent” shall mean the collateral agent under the indenture governing the
IDS Notes.

11

 

          (c) “IDS Distribution” shall mean a Required IDS Distribution or an Optional IDS
Distribution.

          (d) “IDS Intercompany Note” shall mean a note of the Borrower due 2024 issued to Parent in an
aggregate principal amount not to exceed $114.6 million.

          (e) “IDS Notes” shall mean the up to approximately $191.0 million aggregate principal amount
of Parent’s senior secured notes due 2024, whether issued as part of an IDS, or separately to third
parties.

          (f) “IDS Transactions” shall mean, collectively, (i) the issuance of the IDS and the Third
Party Notes by Parent, (ii) the incurrence of the Indebtedness pursuant to the IDS Intercompany
Note and the receipt by Borrower of proceeds therefrom and (iii) a capital contribution by Holdings
in the Borrower with proceeds from the issuance of the IDS and the Third Party Notes.

          (g) “Intercreditor Agreement” shall mean an Intercreditor Agreement among the Collateral
Agent, the IDS Collateral Agent and Holdings in form and substance reasonably satisfactory to the
Administrative Agent and the Collateral Agent.

          (h) “Optional IDS Distribution” shall mean dividends that are permitted to be paid on Parent
Common Stock under the indenture governing the IDS Notes as in effect on the date the first date
IDS Notes were issued.

          (i) “Parent” shall mean Coinmach Service Corp., a Delaware corporation.

          (j) “Parent Common Stock” shall mean Parent’s class A common stock and/or Parent’s class B
common stock.

          (k) “Permitted IDS Dividend” shall mean a Dividend from the Borrower to Holdings of up to
$175.9 million made in connection with the IDS Transactions and funded out of the proceeds of a
capital contribution by Holdings to the Borrower, the IDS Intercompany Note and up to $9.5 million
of cash on hand.

          (l) “Required IDS Distribution” shall mean, in any fiscal quarter, interest payments in
respect of the IDS Notes not to exceed the aggregate amount of interest required to be paid to
holders of IDS Notes (either as part of an IDS or separately) in such fiscal quarter pursuant to
the terms of the indenture governing the IDS Notes as in effect on the date the original IDS Notes
were issued minus the aggregate amount of interest required to be paid to Parent pursuant
to the IDS Intercompany Note as in effect on the date the original IDS Notes were issued.

          (m) “Second Priority Lien” shall mean a perfected Lien prior to all Liens other than Liens
granted pursuant to this Agreement and the other Credit Documents and otherwise in accordance with
the priorities terms of the Intercreditor Agreement.

12

 

     SECTION 18. Amendments to Section 13.07(a) of the Credit Agreement. Section 13.07(a)
of the Credit Agreement is hereby amended by deleting the second proviso thereof in its entirety.

SECTION 19. Amendments to Section 13.16 of the Credit Agreement.

     (i) Section 13.16(a) of the Credit Agreement is hereby amended by deleting the phrase “any
information with respect to Holdings or any of its Subsidiaries” on the eighth line thereof and
replacing it with the phrase “any information with respect to Parent or any of its Subsidiaries”.

     (ii) Section 13.16(b) of the Credit Agreement is hereby amended by deleting it in its
entirety and replacing it with:

     “(b) Each of Holdings and the Borrower hereby acknowledge and agrees that each Bank may share
with any of its affiliates any information related to Parent or any of its Subsidiaries (including,
without limitation, any nonpublic customer information regarding the creditworthiness of Parent and
its Subsidiaries, provided such Persons shall be subject to the provisions of this Section 13.16 to
the same extent as such Bank.

     SECTION 20. Amendment to Exhibit M to the Credit Agreement. Exhibit M shall be
deleted in its entirety and replaced with the Form of Intercreditor Agreement that shall be
reasonably acceptable to the Administrative Agent and the Collateral Agent.

     SECTION 21. Amendment to Section 9.08. Section 9.08 of the Credit Agreement is
hereby amended by deleting it in its entirety and replacing it with:

     “The Borrower and its Subsidiaries will not permit the Pro Forma Leverage Ratio for any Test
Period (taken as one accounting period) ending on the last day of any fiscal quarter described
below to be greater than the ratio set forth opposite such fiscal quarter below:

	 	 	 	 	 
	Fiscal Quarter Ended	 	Ratio	 
	March 31, 2002
	 	 	5.00 to 1.00	 
	June 30, 2002
	 	 	5.00 to 1.00	 
	September 30, 2002
	 	 	5.00 to 1.00	 
	December 31, 2002
	 	 	4.90 to 1.00	 
	March 31, 2003
	 	 	4.80 to 1.00	 
	June 30, 2003
	 	 	4.80 to 1.00	 
	September 30, 2003
	 	 	4.80 to 1.00	 
	December 31, 2003
	 	 	4.80 to 1.00	 
	March 31, 2004
	 	 	4.60 to 1.00	 
	June 30, 2004
	 	 	4.60 to 1.00	 
	September 30, 2004
	 	 	4.60 to 1.00	 
	December 31, 2004
	 	 	4.60 to 1.00	 
	March 31, 2005
	 	 	4.60 to 1.00	 
	June 30, 2005
	 	 	4.60 to 1.00	 

13

 

	 	 	 	 	 
	Fiscal Quarter Ended	 	Ratio	 
	September 30, 2005
	 	 	4.60 to 1.00	 
	December 31, 2005
	 	 	4.60 to 1.00	 
	March 31, 2006
	 	 	4.20 to 1.00	 
	June 30, 2006
	 	 	4.20 to 1.00	 
	September 30, 2006
	 	 	4.20 to 1.00	 
	December 31, 2006
	 	 	4.20 to 1.00	 
	March 31, 2007
	 	 	4.00 to 1.00	 
	June 30, 2007
	 	 	4.00 to 1.00	 
	September 30, 2007
	 	 	4.00 to 1.00	 
	December 31, 2007
	 	 	4.00 to 1.00	 
	March 31, 2008
	 	 	4.00 to 1.00	 
	June 30, 2008 and each fiscal
quarter thereafter
	 	 	4.00 to 1.00”.	 

     SECTION 22. Amendment to Section 9.09. Section 9.09 of the Credit Agreement is
hereby amended by deleting it in its entirety and replacing it with:

     “The Borrower and its Subsidiaries will not permit Consolidated EBITDA for any Test Period, in
each case taken as one accounting period, ended on the last day of a fiscal quarter of the Borrower
described below to be less than the amount set forth opposite such fiscal quarter below;
provided, however, that for purposes of this Section 9.09, Consolidated EBITDA for
any Test Period may give pro forma effect to a Permitted Acquisition (or other
acquisition or transaction with respect to which the requisite consents of the Banks have been
obtained) as if such Permitted Acquisition (or acquisition or other transaction) had occurred on
the first day of such Test Period; provided, further, that subsequent to the Spinoff
Guarantor Release Event, the amount listed below for each Test Period shall be reduced by an amount
equal to the Spinoff Guarantor’s EBITDA for the Test Period immediately preceding the Spinoff
Guarantor Release Event and subtracting from the Borrower and its Subsidiaries’ Consolidated EBITDA
for such Test Period the amount attributable to the Spinoff Guarantor’s EBITDA for such Test
Period:

	 	 	 	 	 
	 	 	Amount	 
	Fiscal Quarter Ended	 	(in millions)	 
	March 31, 2002
	 	$	145.0	 
	June 30, 2002
	 	 	145.0	 
	September 30, 2002
	 	 	145.0	 
	December 31, 2002
	 	 	145.0	 
	March 31, 2003
	 	 	150.0	 
	June 30, 2003
	 	 	150.0	 
	 
	 	 	 	 
	September 30, 2003
	 	 	150.0	 
	December 31, 2003
	 	 	150.0	 
	March 31, 2004
	 	 	150.0	 
	June 30, 2004
	 	 	155.0	 

14

 

	 	 	 	 	 
	 	 	Amount	 
	Fiscal Quarter Ended	 	(in millions)	 
	September 30, 2004
	 	 	155.0	 
	December 31, 2004
	 	 	155.0	 
	March 31, 2005
	 	 	155.0	 
	June 30, 2005
	 	 	155.0	 
	 
	 	 	 	 
	September 30, 2005
	 	 	155.0	 
	December 31, 2005
	 	 	155.0	 
	March 31, 2006
	 	 	155.0	 
	June 30, 2006
	 	 	160.0	 
	 
	 	 	 	 
	September 30, 2006
	 	 	160.0	 
	December 31, 2006
	 	 	160.0	 
	March 31, 2007
	 	 	160.0	 
	June 30, 2007
	 	 	160.0	 
	September 30, 2007
	 	 	160.0	 
	December 31, 2007
	 	 	160.0	 
	March 31, 2008
	 	 	160.0	 
	June 30, 2008 and each fiscal quarter thereafter
	 	 	165.0”.	 

          For the avoidance of doubt, Section 9.09 of the Credit Agreement shall be amended as provided
in this Section 22 upon the Initial Amendment Effective Date and Section 9.09 of the Credit
Agreement shall be further amended as provided in Section 13 hereof upon the IDS Waiver & Amendment
Effective Date.

     SECTION 23. Conditions Precedent. (a) The effectiveness of Sections 1 through 20 of
this Waiver & Amendment (the “IDS Waiver & Amendment Effective Date”) is subject to the
satisfaction of the following conditions:

     On or before the IDS Waiver & Amendment Effective Date this Waiver & Amendment shall
have been executed and delivered by the Supermajority Banks of each Tranche and each Credit
Party.

     On or before the IDS Waiver & Amendment Effective Date, the Waiver & Amendment Fee and
all costs, fees and expenses required to be, and not previously, paid or reimbursed by the
Borrower pursuant hereto or to the Credit Agreement or otherwise, including all invoiced
fees and expenses of counsel to the Administrative Agent shall have been paid or reimbursed,
as applicable.

     On the IDS Waiver & Amendment Effective Date, the Administrative Agent shall have
received from Mayer, Brown, Rowe & Maw, LLP, special counsel to Holdings, the Borrower and
the Subsidiary Guarantors, an opinion addressed to the Administrative Agent, the Collateral
Agent and each of the Banks and dated the IDS Waiver &

15

 

     Amendment Effective Date in form and substance reasonably acceptable to the
Administrative Agent.

     The following transactions shall have been consummated, in each case on terms and
conditions reasonably satisfactory to the Administrative Agent:

     The IDS Financing with CSC having issued IDSs and Third Party Notes resulting
in gross proceeds of up to $400.0 million and not less than $270.0 million;

     The Intercreditor Agreement shall have been executed and delivered by each
party thereto;

     Amendment No. 1 to the Holdings Pledge Agreement shall have been executed and
delivered by each party thereto in form and substance reasonably satisfactory to the
Administrative Agent and the Collateral Agent;

     The Appliance Warehouse Note shall have been amended and restated in the form
of an Intercompany Note under the Credit Agreement; and

     At least $122.2 million in aggregate principal amount of the Senior Notes shall
have been properly called for redemption and such amount shall have been placed on
deposit as required under the Indenture governing the Senior Notes.

          On the IDS Waiver & Amendment Effective Date, the Administrative Agent shall have received a
certificate dated such date and signed by an appropriate officer of the Borrower, stating that the
applicable conditions set forth in this Section 23(a) exist as of such date and confirming
compliance with the conditions precedent set forth in Section 6.01 of the Credit Agreement.

          The Administrative Agent shall have received written notice of the Optional Prepayment in
accordance with Section 4.01 (a) after giving effect to the waiver in Section 1 of this Waiver &
Amendment.

     (b) The effectiveness of all provisions of this Waiver & Amendment other than Sections 1
through 20 (the “Initial Amendment Effective Date”) are subject to the satisfaction of the
following conditions:

     (1) On or before the Initial Amendment Effective Date, this Waiver & Amendment shall have been
executed and delivered by the Required Banks and each Credit Party.

     (2) On or before the Initial Amendment Effective Date, the Initial Amendment Fee and all
costs, fees and expenses required to be paid or reimbursed by the Borrower pursuant hereto or to
the Credit Agreement or otherwise, including all invoiced fees and expenses of counsel to the
Administrative Agent shall have been paid or reimbursed, as applicable.

     (3) On the Initial Amendment Effective Date, the Administrative Agent shall have received a
certificate dated such date and signed by an appropriate officer of the Borrower,

16

 

stating that the applicable conditions set forth in this Section 23(b) exist as of such date and
confirming compliance with the conditions precedent set forth in Section 6.01 of the Credit
Agreement.

SECTION 24. Representations and Warranties. Each of the Credit Parties represent
and warrant to the Administrative Agent and each of the Banks that:

     This Waiver & Amendment has been duly authorized, executed and delivered by it and
constitutes a legal, valid and binding obligation of such Credit Party, enforceable against
such Credit Party in accordance with its terms except to the extent that the enforceability
thereof may be limited by (a) bankruptcy, insolvency, fraudulent conveyance, preferential
transfer, reorganization, moratorium or other similar laws now or hereafter in effect
relating to or affecting creditors’ rights and remedies generally, (b) general principles of
equity (whether such enforceability is considered in a proceeding in equity or at law), and
by the discretion of the court before which any proceeding therefor may be brought, or (c)
public policy considerations or court administrative, regulatory or other governmental
decisions that may limit rights to indemnification or contribution or limit or affect any
covenants or agreements relating to competition or future employment.

     After giving effect to this Waiver & Amendment, the representations and warranties set
forth in Section 7 of the Credit Agreement are true and correct in all material respects (it
being understood and agreed that any representation or warranty which by its terms is made
as of a specified date shall be required to be true and correct in all material respects as
of a specified date).

     After giving effect to the IDS Financing and this Waiver & Amendment, no Default or
Event of Default has occurred or is continuing.

     The sources and uses of proceeds related to the IDS Financing shall be in the form and
in such amounts as provided in Section 25 hereof.

SECTION 25. Sources and Uses of Proceeds.

(a) The sources of proceeds relating to the IDS Financing shall be as follows:

     (i) The Intercompany Loan shall be an amount between $79.5 million and $114.6 million,
and in any event equal to 60% of the sum of (x) the aggregate principal amount of IDS Bonds
plus (y) $20.0 million;

     (ii) The Capital Contribution shall be an amount between $165.3 million and $252.4
million, and in any event equal to (x) the aggregate proceeds of the IDS and the Third Party
Note, net of fees and expenses related thereto, minus (y) the principal amount of the
Intercompany Loan; and

     (iii) Up to $9.5 million of cash on hand.

17

 

     The uses of the proceeds from the Intercompany Loan, the Capital Contribution and the cash on
hand shall be as follows:

     (i) First, (w) to redeem approximately $122.2 million in aggregate principal amount of
Senior Notes and to pay an approximately $11.0 million premium in connection with such
redemption and to pay up to approximately $5.5 million in accrued and unpaid interest on the
Senior Notes to be redeemed, (x) to prepay the full remaining aggregate principal amount of
Tranche A Term Loans upon consummation of the IDS offering ($15.5 million if prior to
December 31, 2004 and $14.6 million on or after December 31, 2004 after giving effect to a
scheduled amortization payment), (y) to pay up to $0.9 million in breakage costs to
terminate existing interest swap agreements and (z) to pay a dividend to Holdings of up to
$94.3 million (plus up to $5.5 million not used to pay accrued and unpaid interest on the
Senior Notes to be redeemed and up to $0.9 million not used to pay breakage costs to
terminate existing interest swap agreements) to enable Holdings to redeem certain of its
outstanding preferred equity interests;

     (ii) Second, to (x) redeem up to an additional $7.6 million in aggregate principal
amount of Senior Notes and to pay an additional approximately $0.7 million premium in
connection with such redemption and to pay up to approximately $0.3 million in accrued and
unpaid interest on such Senior Notes to be redeemed and/or (y) pay an additional dividend to
Holdings of up to approximately $19.4 million (plus up to $0.3 million not used to pay
accrued and unpaid interest on the Senior Notes to be redeemed) to enable Holdings to redeem
certain additional amounts of its outstanding preferred equity interests; provided that if
the total proceeds from the Intercompany Loan, Capital Contribution and cash on hand are
$311.7 million or less, then Borrower shall have the option to use the entire amount
provided for in this clause (ii) to redeem additional Senior Notes and to pay related
premium and accrued and unpaid interest in connection therewith;

     (iii) Third, to pay an additional dividend to Holdings of up to approximately $38.8
million to enable Holdings to redeem certain additional amounts of its outstanding preferred
equity interests;

     (iv) Fourth, to (x) pay an additional dividend to Holdings of up to approximately
$26.2 million (plus up to $0.9 million to the extent the aggregate principal amount of
Tranche A Term Loans outstanding upon the consummation of the IDS offering is $14.6 million)
to enable Holdings to redeem certain additional of its outstanding preferred equity
interests and (y) make an optional repayment of Tranche B Term Loans of up to approximately
$6.3 million; provided that proceeds used pursuant to this clause (iv) shall be applied
across subclauses (x) and (y) in a ratio not exceeding 4.0:1.0; provided further that the
actual amount of Trance B Term Loan prepayment may be adjusted pursuant to the applicable
minimum repayment and integral repayment amount provisions of Section 4 of the Credit
Agreement; and

     (v) Fifth, redeem up to an additional approximately $27.7 million in aggregate
principal amount of Senior Notes and to pay an additional approximately $2.5 million premium
in connection with such redemption and to pay up to approximately $1.3

18

 

million in accrued and unpaid interest on such Senior Notes to be redeemed; provided
that the aggregate principal amount of all Senior Notes redeemed under clauses (b)(i), (ii)
and (v) of this Section shall not exceed $157.5 million.

     Notwithstanding anything to the contrary, Section 25(b) does not require a specific temporal
sequence of the application of proceeds. Notwithstanding anything to the contrary, to the extent
the underwriters for the IDS offering exercise their overallotment option, Holdings shall be
entitled retain the net proceeds obtained therefrom and use such net proceeds to redeem a like
amount of its outstanding preferred equity interests and the sources of proceeds in Section 25(a)
and the uses of proceeds in Sections 25(b)(iii) and (iv)(x) shall be deemed to include such net
proceeds.

     SECTION 26. Waiver & Amendment Fees. (a) In consideration of the agreements of the
Supermajority Banks of each Tranche and/or the Required Banks, as the case may be, contained in
Sections 1 though 20 of this Waiver & Amendment, the Borrower agrees to pay to the Administrative
Agent, for the account of each Bank that delivers an executed counterpart of this Waiver &
Amendment prior to 6:30pm, New York City time, on November 15, 2004, a waiver and amendment fee (
the “Waiver & Amendment Fee”) equal to 12.5 basis points on the aggregate amount of the
Commitments and outstanding Term Loans of such Bank immediately before giving effect to the
Optional Prepayment.

     (b) In consideration of the agreements of the Required Banks contained in Sections 21 and 22
of this Waiver & Amendment, the Borrower agrees to pay to the Administrative Agent, for the account
of each Bank that delivers an executed counterpart of this Waiver & Amendment prior to 6:30pm, New
York City time, on November 15, 2004, an amendment fee (the “Initial Amendment Fee”) equal
to 12.5 basis points on the aggregate amount of the Commitments and outstanding Term Loans of such
Bank immediately before the Initial Amendment Effective Date.

The Waiver & Amendment Fee and the Initial Amendment Fee are separate fees. The Initial Amendment
Fee is not conditioned on the consummation of the IDS Financing and will not be credited towards
any Waiver & Amendment Fee. Once paid, all fees are non-refundable.

     SECTION 27. Credit Agreement. Except as specifically provided hereby, the Credit
Agreement shall continue in full force and effect in accordance with the provisions thereof as in
existence on the date hereof. After the date hereof, any reference to the Credit Agreement in any
Credit Document shall mean the Credit Agreement as modified hereby. This Waiver & Amendment shall
be a Credit Document for all purposes.

     SECTION 28. Applicable Law. This Waiver & Amendment shall be governed by, and be
construed in accordance with, the laws of the State of New York.

     SECTION 29. Counterparts. This Waiver & Amendment may be executed in two or more
counterparts, each of which shall constitute an original but all of which when taken together shall
constitute one contract. Delivery of an executed signature page of this Waiver & Amendment by
facsimile transmission shall be effective as delivery of a manually executed counterpart hereof.

19

 

     SECTION 30. Expenses. The Borrower agrees to reimburse the Administrative Agent for
its out-of-pocket expenses incurred by it in connection with this Waiver & Amendment, including the
fees, charges and disbursements of Cahill Gordon & Reindel llp, counsel for the
Administrative Agent.

     SECTION 31. Headings. The Section headings used herein are for convenience of
reference only, are not part of this Waiver & Amendment and are not to affect the construction of,
or to be taken into consideration in interpreting, this Waiver & Amendment.

20

 

          IN WITNESS WHEREOF, the parties hereto have caused this Waiver & Amendment to be duly executed
by their respective authorized officers as of the day and year first written above.

	 	 	 	 	 
	 	COINMACH LAUNDRY CORPORATION

 	 
	 	By:  	/s/ Robert M. Doyle
 	 
	 	 	Name:  	Robert M. Doyle 	 
	 	 	Title:  Chief Financial Officer	 

21

 

	 	 	 	 	 

	 	 	 	 	 
	 	COINMACH CORPORATION

 	 
	 	By:  	/s/ Robert M. Doyle
 	 
	 	 	Name:  	Robert M. Doyle 	 
	 	 	Title:  Chief Financial Officer	 

22

 

	 	 	 	 	 

	 	 	 	 	 
	 	SUPER LAUNDRY EQUIPMENT CORP.

 	 
	 	By:  	/s/ Robert M. Doyle
 	 
	 	 	Name:  	Robert M. Doyle 	 
	 	 	Title:  Chief Financial Officer	 

23

 

	 	 	 	 	 

	 	 	 	 	 
	 	GRAND WASH & DRY LAUNDERETTE. INC.

 	 
	 	By:  	/s/ Robert M. Doyle
 	 
	 	 	Name:  	Robert M. Doyle     	 
	 	 	Title:  Chief Financial Officer	 

24

 

	 	 	 	 	 

	 	 	 	 	 
	 	APPLIANCE WAREHOUSE OF AMERICA, INC.

 	 
	 	By:  	/s/ Robert M. Doyle
 	 
	 	 	Name:  	Robert M. Doyle 	 
	 	 	Title:  Treasurer	 

25

 

	 	 	 	 	 

	 	 	 	 	 
	 	AMERICAN LAUNDRY FRANCHISING CORP.

 	 
	 	By:  	/s/ Charles A. Prato
 	 
	 	 	Name:  	Charles A. Prato     	 
	 	 	Title:  President	 

26

 

	 	 	 	 	 

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, As Administrative Agent

 	 
	 	By:  	/s/ Carin M. Keegan
 	 
	 	 	Name:  	Carin M. Keegan     	 
	 	 	Title:  Vice President	 

27

 

	 	 	 	 	 

	 	 	 	 	 
	 	ALLSTATE LIFE INSURANCE COMPANY

 	 
	 	By:  	Illegible
 	 
	 	 	Name 	 
	 	 	Title:  	Authorized Signatory 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	     Illegible
 	 
	 	 	Name:  	 	 
	 	 	Title:  	Authorized Signatory 	 

28

 

	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	Ares V CLO Ltd.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Ares CLO Management V, L.P., Investment
Manager	 	 
	 
	 	 	 	 	 	 
	 	 	By: Ares CLO GP V, LLC, Its Managing Member	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Seth J. Brufsky	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Seth J. Brufsky	 	 
	

	 	 	 	Title: Vice President	 	 

29

 

	 	 	 	 	 	 	 
	 	 	Ares IV CLO Ltd.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Ares CLO Management IV, L.P., Investment
Manager	 	 
	 
	 	 	 	 	 	 
	 	 	By: Ares CLO GP IV, LLC, Its Managing Member	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Seth J. Brufsky	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Seth J. Brufsky	 	 
	

	 	 	 	Title: Vice President	 	 

30

 

	 	 	 	 	 	 	 
	 	 	Gallatin Funding I Ltd.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Bear Stearns Asset Management Inc. as its
Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	Illegible	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	Title: Vice President	 	 

31

 

	 	 	 	 	 	 	 
	 	 	Grayston CLO 2001-01 Ltd.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Bear Stearns Asset Management Inc. as its
Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	Illegible	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	Title: Vice President	 	 

32

 

	 	 	 	 	 	 	 
	 	 	BLACKROCK GLOBAL FLOATING RATE INCOME TRUST	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	Illegible	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	Title: Authorized Signatory	 	 

33

 

	 	 	 	 	 	 	 
	 	 	By: Callidus Debt Partners CLO Fund II, Ltd.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Its Collateral Manager Callidus Capital

Management, LLC	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Gary H. Neems	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Gary H. Neems	 	 
	

	 	 	 	Title: Senior Managing Director	 	 

34

 

	 	 	 	 	 	 	 
	 	 	JUPITER LOAN FUNDING LLC	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Diana M. Hines	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Diana M. Hines	 	 
	

	 	 	 	Title: Assistant Vice President	 	 

35

 

	 	 	 	 	 	 	 
	 	 	WINGED FOOT FUNDING TRUST	 	 
	 
	 	 	 	 	 	 
	 	 	By: Bear Stearns Asset Management Inc. as its
Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Diana M. Hines	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Diana M. Hines	 	 
	

	 	 	 	Title: Authorized Agent	 	 

36

 

	 	 	 	 	 	 	 
	 	 	LYON CAPITAL MANAGEMENT LLC	 	 
	 
	 	 	 	 	 	 
	 	 	By: Lyon Capital Management LLC	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Alexander B. Kenna	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Alexander B. Kenna	 	 
	

	 	 	 	Title: Portfolio Manager	 	 

37

 

	 	 	 	 	 	 	 
	 	 	BRYN MAWR CLO, Ltd.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Deerfield Capital Management LLC as its

Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Scott Morrison	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Scott Morrison	 	 
	

	 	 	 	Title: Vice President	 	 

38

 

	 	 	 	 	 	 	 
	 	 	FOREST CREEK CLO, Ltd.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Deerfield Capital Management LLC as its

Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Scott Morrison	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Scott Morrison	 	 
	

	 	 	 	Title: Vice President	 	 

39

 

	 	 	 	 	 	 	 
	 	 	LONG GROVE CLO, LIMITED	 	 
	 
	 	 	 	 	 	 
	 	 	By: Deerfield Capital Management LLC as its

Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Scott Morrison	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Scott Morrison	 	 
	

	 	 	 	Title: Vice President	 	 

40

 

	 	 	 	 	 	 	 
	 	 	ROSEMONT CLO, Ltd/	 	 
	 
	 	 	 	 	 	 
	 	 	By: Deerfield Capital Management LLC as its

Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Scott Morrison	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Scott Morrison	 	 
	

	 	 	 	Title: Vice President	 	 

41

 

	 	 	 	 	 	 	 
	 	 	MUIRFIELD TRADING LLC	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Diana M. Hines	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Diana M. Hines	 	 
	

	 	 	 	Title: AssistantVice President	 	 

42

 

	 	 	 	 	 	 	 
	 	 	SEQUILS-Cumberland I, Ltd.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Deerfield Capital Management LLC as its

Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Scott Morrison	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Scott Morrison	 	 
	

	 	 	 	Title: Vice President	 	 

43

 

	 	 	 	 	 	 	 
	 	 	BIG SKY SENIOR LOAN FUND, LTD.	 	 
	 
	 	 	 	 	 	 
	 	 	By: EATON VANCE MANAGEMENT AS INVESTMENT

ADVISOR	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Michael B. Botthof	 	 
	

	 	 	 	Title: Vice President	 	 

44

 

	 	 	 	 	 	 	 
	 	 	EATON VANCE SENIOR FLOATING-RATE TRUST	 	 
	 
	 	 	 	 	 	 
	 	 	By: EATON VANCE MANAGEMENT AS INVESTMENT

ADVISOR	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Michael B. Botthof	 	 
	

	 	 	 	Title: Vice President	 	 

45

 

	 	 	 	 	 	 	 
	 	 	TOLLI & CO.	 	 
	 
	 	 	 	 	 	 
	 	 	By: EATON VANCE MANAGEMENT AS INVESTMENT

ADVISOR	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Michael B. Botthof	 	 
	

	 	 	 	Title: Vice President	 	 

46

 

	 	 	 	 	 	 	 
	 	 	EATON VANCE CDO III, LTD.	 	 
	 
	 	 	 	 	 	 
	 	 	By: EATON VANCE MANAGEMENT AS INVESTMENT

ADVISOR	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Michael B. Botthof	 	 
	

	 	 	 	Title: Vice President	 	 

47

 

	 	 	 	 	 	 	 
	 	 	CONSTANTINUS EATON VANCE CDO V, LTD.	 	 
	 
	 	 	 	 	 	 
	 	 	By: EATON VANCE MANAGEMENT AS INVESTMENT

ADVISOR	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Michael B. Botthof	 	 
	

	 	 	 	Title: Vice President	 	 

48

 

	 	 	 	 	 	 	 
	 	 	EATON VANCE CDO VI LTD.	 	 
	 
	 	 	 	 	 	 
	 	 	By: EATON VANCE MANAGEMENT AS INVESTMENT

ADVISOR	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Michael B. Botthof	 	 
	

	 	 	 	Title: Vice President	 	 

49

 

	 	 	 	 	 	 	 
	 	 	GRAYSON & CO.	 	 
	 
	 	 	 	 	 	 
	 	 	By: BOSTON MANAGEMENT AND RESEARCH AS

INVESTMENT ADVISOR	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Michael B. Botthof	 	 
	

	 	 	 	Title: Vice President	 	 

50

 

	 	 	 	 	 	 	 
	 	 	EATON VANCE INSTITUTIONAL SENIOR LOAN FUND	 	 
	 
	 	 	 	 	 	 
	 	 	By: EATON VANCE MANAGEMENT AS INVESTMENT

ADVISOR	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Michael B. Botthof	 	 
	

	 	 	 	Title: Vice President	 	 

51

 

	 	 	 	 	 	 	 
	 	 	EATON VANCE LIMITED DURATION INCOME FUND	 	 
	 
	 	 	 	 	 	 
	 	 	By: EATON VANCE MANAGEMENT AS INVESTMENT

ADVISOR	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Michael B. Botthof	 	 
	

	 	 	 	Title: Vice President	 	 

52

 

	 	 	 	 	 	 	 
	 	 	OXFORD STRATEGIC INCOME FUND	 	 
	 
	 	 	 	 	 	 
	 	 	By: EATON VANCE MANAGEMENT AS INVESTMENT

ADVISOR	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Michael B. Botthof	 	 
	

	 	 	 	Title: Vice President	 	 

53

 

	 	 	 	 	 	 	 
	 	 	EATON VANCE SENIOR INCOME TRUST	 	 
	 
	 	 	 	 	 	 
	 	 	By: EATON VANCE MANAGEMENT AS INVESTMENT

ADVISOR	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Michael B. Botthof	 	 
	

	 	 	 	Title: Vice President	 	 

54

 

	 	 	 	 	 	 	 
	 	 	EATON VANCE VT FLOATING-RATE INCOME FUND	 	 
	 
	 	 	 	 	 	 
	 	 	By: EATON VANCE MANAGEMENT AS INVESTMENT

ADVISOR	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Michael B. Botthof	 	 
	

	 	 	 	Title: Vice President	 	 

55

 

	 	 	 	 	 	 	 
	 	 	SENIOR DEBT PORTFOLIO	 	 
	 
	 	 	 	 	 	 
	 	 	By: Boston Management and Research as
Investment Advisor	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michael B. Botthof	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Michael B. Botthof	 	 
	

	 	 	 	Title: Vice President	 	 

56

 

	 	 	 	 	 	 	 
	 	 	BALLYROCK CLO II Limited	 	 
	 
	 	 	 	 	 	 
	 	 	By: BALLYROCK Investment Advisors LLC, as

Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Lisa Rymut	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Lisa Rymut	 	 
	

	 	 	 	Title: Assistant Treasurer	 	 

57

 

	 	 	 	 	 	 	 
	 	 	Fidelity Advisor Series II: Fidelity Advisor
Floating Rate High Income Fund	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ John H. Costello	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: John H. Costello	 	 
	

	 	 	 	Title: Assistant Treasurer	 	 

58

 

	 	 	 	 	 	 	 
	 	 	First SunAmerica Life Insurance Company	 	 
	 
	 	 	 	 	 	 
	 	 	By: AIG Global Investment Corp. Investment
Advisor	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ W. Jeffrey Baxter	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: W. Jeffrey Baxter	 	 
	

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	Galaxy CLO 1999-1, Ltd.	 	 
	 
	 	 	 	 	 	 
	 	 	By: AIG Global Investment Corp.
Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ W. Jeffrey Baxter	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: W. Jeffrey Baxter	 	 
	

	 	 	 	Title: Vice President	 	 

59

 

	 	 	 	 	 	 	 
	 	 	General Electric Capital Corporation	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Robert M. Kadlick	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Robert M. Kadlick	 	 
	

	 	 	 	Title: Duly Authorized Signatory	 	 

60

 

	 	 	 	 	 	 	 
	 	 	Dryden III – Leveraged Loan CDO 2002	 	 
	 
	 	 	 	 	 	 
	 	 	By: Prudential Investment Management Inc., as
Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	Illegible	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	Title:	 	 

61

 

	 	 	 	 	 	 	 
	 	 	The Prudential Insurance Company of America	 	 
	 
	 	 	 	 	 	 
	 	 	By: Prudential Investment Management Inc., as
Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	Illegible	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	Title:	 	 

62

 

	 	 	 	 	 	 	 
	 	 	State Street Bank & trust Company as Trustee
for GMAM Group Pension Trust I	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Russell Ricciardi	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Russell Ricciardi	 	 
	

	 	 	 	Title: CSO	 	 

63

 

	 	 	 	 	 	 	 
	 	 	GULF STREAM-COMPASS CLO 2002-1 LTD	 	 
	 
	 	 	 	 	 	 
	 	 	By: Gulf Stream Asset Management LLC As

Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Barry K. Bove	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Barry K. Bove	 	 
	

	 	 	 	Title: Chief Credit Officer	 	 

64

 

	 	 	 	 	 	 	 
	 	 	PILGTIM CLO 1999-1 LTD.	 	 
	 
	 	 	 	 	 	 
	 	 	By: ING Investments, LLC, as its Investment

manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Theodore M. Haag	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Theodore M. Haag	 	 
	

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	SEQUILS-PILGTIM I, LTD.	 	 
	 
	 	 	 	 	 	 
	 	 	By: ING Investments, LLC, as its Investment

manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Theodore M. Haag	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Theodore M. Haag	 	 
	

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	MML CLO XV PILGTIM AMERICA (CAYMAN) LTD.	 	 
	 
	 	 	 	 	 	 
	 	 	By: ING Investments, LLC, as its Investment

manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Theodore M. Haag	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Theodore M. Haag	 	 
	

	 	 	 	Title: Vice President	 	 

65

 

	 	 	 	 	 	 	 
	 	 	ING PRIME RATE TRUST	 	 
	 
	 	 	 	 	 	 
	 	 	By: ING Investment Management, Co., as its
Investment manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Theodore M. Haag	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Theodore M. Haag	 	 
	

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	ING SENIOR INCOME FUND	 	 
	 
	 	 	 	 	 	 
	 	 	By: ING Investment Management, Co., as its
Investment manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Theodore M. Haag	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Theodore M. Haag	 	 
	

	 	 	 	Title: Vice President	 	 

66

 

	 	 	 	 	 	 	 
	 	 	AIM FLOATING RATE FUND	 	 
	 
	 	 	 	 	 	 
	 	 	By: INVESCO Senior Secured Management, Inc. As
Sub-Adviser	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Thomas H. B. Ewald	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Thomas H. B. Ewald	 	 
	

	 	 	 	Title: Authorized Signatory	 	 

67

 

	 	 	 	 	 	 	 
	 	 	AVALON CAPITAL LTD.	 	 
	 
	 	 	 	 	 	 
	 	 	By: INVESCO Senior Secured Management, Inc. As
Portfolio Adviser	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Thomas H. B. Ewald	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Thomas H. B. Ewald	 	 
	

	 	 	 	Title: Authorized Signatory	 	 

68

 

	 	 	 	 	 	 	 
	 	 	AVALON CAPITAL LTD. 2	 	 
	 
	 	 	 	 	 	 
	 	 	By: INVESCO Senior Secured Management, Inc. As
Portfolio Adviser	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Thomas H. B. Ewald	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Thomas H. B. Ewald	 	 
	

	 	 	 	Title: Authorized Signatory	 	 

69

 

	 	 	 	 	 	 	 
	 	 	INVESCO CBO 2000-1 LTD.	 	 
	 
	 	 	 	 	 	 
	 	 	By: INVESCO Senior Secured Management, Inc. As
Portfolio Adviser	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Thomas H. B. Ewald	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Thomas H. B. Ewald	 	 
	

	 	 	 	Title: Authorized Signatory	 	 

70

 

	 	 	 	 	 	 	 
	 	 	CHARTER VIEW PORTFOLIO	 	 
	 
	 	 	 	 	 	 
	 	 	By: INVESCO Senior Secured Management, Inc. As
Investment Advisor	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Thomas H. B. Ewald	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Thomas H. B. Ewald	 	 
	

	 	 	 	Title: Authorized Signatory	 	 

71

 

	 	 	 	 	 	 	 
	 	 	DIVERSIFIED CREDIT PORTFOLIO LTD.	 	 
	 
	 	 	 	 	 	 
	 	 	By: INVESCO Senior Secured Management, Inc. As
Investment adviser	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Thomas H. B. Ewald	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Thomas H. B. Ewald	 	 
	

	 	 	 	Title: Authorized Signatory	 	 

72

 

	 	 	 	 	 	 	 
	 	 	INVESCO EUROPEAN CDO I S.A.	 	 
	 
	 	 	 	 	 	 
	 	 	By: INVESCO Senior Secured Management, Inc. As
Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Thomas H. B. Ewald	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Thomas H. B. Ewald	 	 
	

	 	 	 	Title: Authorized Signatory	 	 

73

 

	 	 	 	 	 	 	 
	 	 	SAGAMORE CLO LTD.	 	 
	 
	 	 	 	 	 	 
	 	 	By: INVESCO Senior Secured Management, Inc. As
Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Thomas H. B. Ewald	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Thomas H. B. Ewald	 	 
	

	 	 	 	Title: Authorized Signatory	 	 

74

 

	 	 	 	 	 	 	 
	 	 	SARATOGA CLO I, LIMITED	 	 
	 
	 	 	 	 	 	 
	 	 	By: INVESCO Senior Secured Management, Inc. As
Asset Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Thomas H. B. Ewald	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Thomas H. B. Ewald	 	 
	

	 	 	 	Title: Authorized Signatory	 	 

75

 

	 	 	 	 	 	 	 
	 	 	SEQUILS-LIBERTY, LTD.	 	 
	 
	 	 	 	 	 	 
	 	 	By: INVESCO Senior Secured Management, Inc. As
Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Thomas H. B. Ewald	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Thomas H. B. Ewald	 	 
	

	 	 	 	Title: Authorized Signatory	 	 

76

 

	 	 	 	 	 	 	 
	 	 	J.P. Morgan Chase Bank	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Michael J. Lister	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Michael J. Lister	 	 
	

	 	 	 	Title: Vice President	 	 

77

 

	 	 	 	 	 	 	 
	 	 	ELF Funding Trust III	 	 
	 
	 	 	 	 	 	 
	 	 	By: New York Life Insurance Management LLC, as

Attorney-in-Fact	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	Illegible	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 	 	Mainstay Floating Rate Fund, a Series of
Eclipse Funds Inc.	 	 
	 
	 	 	 	 	 	 
	 	 	By: New York Life Investment Management LLC	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	Illegible	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 	 	New York Life Insurance and Annuity
Corporation	 	 
	 
	 	 	 	 	 	 
	 	 	By: New York Life Investment Management LLC,

its Investment Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	Illegible	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	Title: Director	 	 

78

 

	 	 	 	 	 	 	 
	 	 	NYCIM Flatiron CLO 2003-1 Ltd.	 	 
	 
	 	 	 	 	 	 
	 	 	By: New York Life Investment Management LLC,
as Collateral Manager and Attorney-in-Fact	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	Illegible	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	Title: Director	 	 

79

 

	 	 	 	 	 	 	 
	 	 	Aeries Finance-II Ltd.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Patriarch Partners X, LLC, its Managing

Agent	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Lynn Tilton	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Lynn Tilton	 	 
	

	 	 	 	Title: Manager	 	 

80

 

	 	 	 	 	 	 	 
	 	 	PPM SHADOW CREEK FUNDING LLC	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Diana M. Hines	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Diana M. Hines	 	 
	

	 	 	 	Title: Assistant Vice President	 	 

81

 

	 	 	 	 	 	 	 
	 	 	PPM SPYGLASS FUNDING TRUST	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Diana M. Hines	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Diana M. Hines	 	 
	

	 	 	 	Title: Assistant Vice President	 	 

82

 

	 	 	 	 	 	 	 
	 	 	PUTNAM FLOATING RATE INCOME FUND	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Beth Mazor	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Beth Mazor	 	 
	

	 	 	 	Title: Vice President	 	 

83

 

	 	 	 	 	 	 	 
	 	 	PUTNAM DIVERSIFIED INCOME TRUST	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Beth Mazor	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Beth Mazor	 	 
	

	 	 	 	Title: Vice President	 	 

84

 

	 	 	 	 	 	 	 
	 	 	PUTNAM MASTER INTERMEDIATE INCOME TRUST	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Beth Mazor	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Beth Mazor	 	 
	

	 	 	 	Title: Vice President	 	 

85

 

	 	 	 	 	 	 	 
	 	 	PUTNAM MASTER INCOME TRUST	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Beth Mazor	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Beth Mazor	 	 
	

	 	 	 	Title: Vice President	 	 

86

 

	 	 	 	 	 	 	 
	 	 	PUTNAM PREMIER INCOME TRUST	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Beth Mazor	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Beth Mazor	 	 
	

	 	 	 	Title: Vice President	 	 

87

 

	 	 	 	 	 	 	 
	 	 	PUTNAM VARIABLE TRUST – PVT DIVERSIFIED INCOME FUND	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Beth Mazor	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Beth Mazor	 	 
	

	 	 	 	Title: Vice President	 	 

88

 

	 	 	 	 	 	 	 
	 	 	NORSE CBO, LTD.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	Regiment Capital Management, LLC as its

Investment Advisor	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	Regiment Capital Advisors, LLC its Manager
and pursuant to delegated authority	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Timothy S. Peterson	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Timothy S. Peterson	 	 
	

	 	 	 	Title: President	 	 

89

 

	 	 	 	 	 	 	 
	 	 	KZH SOLEIL-2 LLC	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Dorian Herrera	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Dorian Herrera	 	 
	

	 	 	 	Title: Authorized Agent	 	 

90

 

	 	 	 	 	 	 	 
	 	 	SANKATY ADVISORS, LLC AS COLLATERAL MANAGER FOR CASTLE HILL I – INGOTS,
LTD., AS TERM LENDER	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Timothy Barns	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Timothy Barns	 	 
	

	 	 	 	Title: Senior Vice President	 	 

91

 

	 	 	 	 	 	 	 
	 	 	SANKATY ADVISORS, LLC AS COLLATERAL MANAGER FOR CASTLE HILL II – INGOTS,
LTD., AS TERM LENDER	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Timothy Barns	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Timothy Barns	 	 
	

	 	 	 	Title: Senior Vice President	 	 

92

 

	 	 	 	 	 	 	 
	 	 	SANKATY ADVISORS, LLC AS COLLATERAL MANAGER FOR CASTLE HILL III CLO,

LIMITED, AS TERM LENDER	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Timothy Barns	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Timothy Barns	 	 
	

	 	 	 	Title: Senior Vice President	 	 

93

 

	 	 	 	 	 	 	 
	 	 	SANKATY ADVISORS, LLC AS COLLATERAL MANAGER FOR RACE POINT CLO,

LIMITED, AS TERM LENDER	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Timothy Barns	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Timothy Barns	 	 
	

	 	 	 	Title: Senior Vice President	 	 

94

 

	 	 	 	 	 	 	 
	 	 	SANKATY ADVISORS, LLC AS COLLATERAL MANAGER FOR RACE POINT II CLO,

LIMITED, AS TERM LENDER	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Timothy Barns	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Timothy Barns	 	 
	

	 	 	 	Title: Senior Vice President	 	 

95

 

	 	 	 	 	 	 	 
	 	 	HARBOUR TOWN FUNDING LLC	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Diana M. Hines	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Diana M. Hines	 	 
	

	 	 	 	Title: Assistant Vice President	 	 

96

 

	 	 	 	 	 	 	 
	 	 	STANFIELD ARBITRAGE CDO, LTD.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	Stanfield Capital Partners LLC as its

Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Christopher E. Jansen	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Christopher E. Jansen	 	 
	

	 	 	 	Title: Managing Partner	 	 

97

 

	 	 	 	 	 	 	 
	 	 	STANFIELD CARRERA CLO, LTD.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	Stanfield Capital Partners LLC as its

Asset Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Christopher E. Jansen	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Christopher E. Jansen	 	 
	

	 	 	 	Title: Managing Partner	 	 

98

 

	 	 	 	 	 	 	 
	 	 	STANFIELD QUATTRO CLO, LTD.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	Stanfield Capital Partners LLC as its

Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Christopher E. Jansen	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Christopher E. Jansen	 	 
	

	 	 	 	Title: Managing Partner	 	 

99

 

	 	 	 	 	 	 	 
	 	 	HAMILTON CDO, LTD.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	Stanfield Capital Partners LLC as its

Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Christopher E. Jansen	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Christopher E. Jansen	 	 
	

	 	 	 	Title: Managing Partner	 	 

100

 

	 	 	 	 	 	 	 
	 	 	THE SUMITOMO TRUST & BANKING CO., LTD.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Elizabeth A. Quirk	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Elizabeth A. Quirk	 	 
	

	 	 	 	Title: Vice President	 	 

101

 

	 	 	 	 	 	 	 
	 	 	C-SQUARED CDO LTD.	 	 
	 
	 	 	 	 	 	 
	 	 	By: TCW Advisors, Inc., as its Portfolio Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Richard F. Kurth	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Richard F. Kurth	 	 
	

	 	 	 	Title: Senior Vice President	 	 

102

 

	 	 	 	 	 	 	 
	 	 	FIRST 2004-II CLO, LTD.	 	 
	 
	 	 	 	 	 	 
	 	 	By: TCW Advisors, Inc., its Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Richard F. Kurth	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Richard F. Kurth	 	 
	

	 	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Jonathan R. Insull	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Jonathan R. Insull	 	 
	

	 	 	 	Title: Managing Director	 	 

103

 

	 	 	 	 	 	 	 
	 	 	FIRST 2004-I CLO, LTD.	 	 
	 
	 	 	 	 	 	 
	 	 	By: TCW Advisors, Inc., its Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Richard F. Kurth	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Richard F. Kurth	 	 
	

	 	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Jonathan R. Insull	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Jonathan R. Insull	 	 
	

	 	 	 	Title: Managing Director	 	 

104

 

	 	 	 	 	 	 	 
	 	 	LOAN FUNDING I LLC, a wholly owned subsidiary of
Citibank, N.A.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	TCW Advisors, Inc., as portfolio manager of
Loan Funding I LLC	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Richard F. Kurth	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Richard F. Kurth	 	 
	

	 	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Jonathan R. Insull	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Jonathan R. Insull	 	 
	

	 	 	 	Title: Managing Director	 	 

105

 

	 	 	 	 	 	 	 
	 	 	VELOCITY CLO, LTD.	 	 
	 
	 	 	 	 	 	 
	 	 	By: TCW Advisors, Inc., its Collateral Manager	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Richard F. Kurth	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Richard F. Kurth	 	 
	

	 	 	 	Title: Senior Vice President	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Jonathan R. Insull	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Jonathan R. Insull	 	 
	

	 	 	 	Title: Managing Director	 	 

106

 

	 	 	 	 	 	 	 
	 	 	TORONTO DOMINION (NEW YORK), INC.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	Illegible	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	Title: Authorized Agent	 	 

107

 

	 	 	 	 	 	 	 
	 	 	VAN KAMPEN SENIOR LOAN FUND	 	 
	 
	 	 	 	 	 	 
	 	 	By: Van Kampen Investment Advisory Corp.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Brad Langs	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Brad Langs	 	 
	

	 	 	 	Title: Executive Director	 	 

108

 

	 	 	 	 	 	 	 
	 	 	VAN KAMPEN SENIOR INCOME TRUST	 	 
	 
	 	 	 	 	 	 
	 	 	By: Van Kampen Investment Advisory Corp.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Brad Langs	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name: Brad Langs\	 	 
	

	 	 	 	Title: Executive Director	 	 

109

 

	 	 	 	 	 	 	 
	 	 	WACHOVIA BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	Illegible	 	 
	

	 	 	 	 	 	 
	

	 	 	 	Name:	 	 
	

	 	 	 	Title: Vice President	 	 

110

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