Document:

EXHIBIT 10.2

 

MONACO COACH CORPORATION

 

1993 DIRECTOR OPTION PLAN

 

(as amended May 16, 2002)

 

1.             Purposes of

the Plan.  The purposes of

this 1993 Director Option Plan are to attract and retain the best available

personnel for service as Outside Directors (as defined herein) of the Company,

to provide additional incentive to the Outside Directors of the Company to

serve as Directors, and to encourage their continued service on the Board.

 

All options granted hereunder shall be “non-statutory stock options.”

 

2.             Applicability of May 2002 Amendments.  Options granted on or prior May 16, 2002

shall not be subject to Section 9(f) of the Plan.  Options granted subsequent to May 16, 2002 shall be subject to

Section 9(f) of the Plan.

 

3.             Definitions.  As used herein, the following definitions

shall apply:

 

(a)           “Board”

means the Board of Directors of the Company.

 

(b)           “Code”

means the Internal Revenue Code of 1986, as amended.

 

(c)           “Common

Stock”

means the Common Stock of the Company.

 

(d)           “Company”

means Monaco Coach Corporation, a Delaware corporation.

 

(e)           “Continuous

Status as

a Director” means the absence of any interruption or termination of

service as a Director.

 

(f)            “Director”

means a member of the Board.

 

(g)           “Employee”

means any person, including officers and Directors, employed by the Company or

any Parent or Subsidiary of the Company. 

The payment of a Director’s fee by the Company shall not be sufficient

in and of itself to constitute “employment” by the Company.

 

(h)           “Exchange Act”

means the Securities Exchange Act of 1934, as amended.

 

(i)            “Fair Market

Value” means, as of any date, the value of Common Stock determined

as follows:

 

(i)    If the Common Stock is listed on any

established stock exchange or a national market system, including without

limitation the National Market System of the National Association of Securities

Dealers, Inc. Automated Quotation (“NASDAQ”) System, the Fair Market Value of a

Share of Common Stock shall be the closing sales price for such stock (or the

closing bid, if no sales were reported) as quoted on such system or exchange

(or the exchange with the greatest volume of trading in Common Stock) on the

date of grant, as reported in The Wall Street Journal or such other source as

the Board deems reliable;

 

 

(ii)   If the Common Stock is quoted on the NASDAQ

System (but not on the National Market System thereof) or regularly quoted by a

recognized securities dealer but selling prices are not reported, the Fair

Market Value of a Share of Common Stock shall be the mean between the bid and

asked prices for the Common Stock on the day of determination, as reported in

The Wall Street Journal or such other source as the Board deems reliable, or;

 

(iii)  In the absence of an established market for

the Common Stock, the Fair Market Value thereof shall be determined in good

faith by the Board.

 

(j)            “Option”

means a stock option granted pursuant to the Plan.

 

(k)           “Optioned

Stock” means the Common Stock subject to an Option.

 

(l)            “Optionee”

means an Outside Director who receives an Option.

 

(m)          “Outside

Director” means a Director who is not an Employee.

 

(n)           “Parent”

means a “parent corporation”, whether now or hereafter existing, as defined in

Section 424(e) of the Code.

 

(o)           “Plan”

means this 1993 Director Option Plan, as amended.

 

(p)           “Share”

means a share of the Common Stock, as adjusted in accordance with Section 11 of

the Plan.

 

(q)           “Retirement” means a Director who

voluntarily resigns from the Board on or after age sixty-two (62) and such

Director has at least five (5) years of service on the Company’s Board of

Directors at the date of retirement; provided, that, the Administrator,

notwithstanding the foregoing, has the discretion to determine when a Director

retires so long as such determination is not less favorable than provided for

in the foregoing definition.

 

(r)            “Subsidiary”

means a “subsidiary corporation”, whether now or hereafter existing, as defined

in Section 424(f) of the Internal Revenue Code of 1986.

 

4.             Stock

Subject to the Plan.  Subject

to the provisions of Section 11 of the Plan, the maximum aggregate number of

Shares which may be optioned and sold under the Plan is 352,500 Shares (the

“Pool”) of Common Stock.  The Shares may

be authorized but unissued, or reacquired Common Stock.

 

If an Option should expire or become unexercisable for any reason

without having been exercised in full, the unpurchased Shares which were

subject thereto shall, unless the Plan shall have been terminated, become

available for future grant under the Plan.

 

5.             Administration

of and Grants of Options under the Plan.

 

(a)           Administrator.  Except as otherwise required herein, the

Plan shall be administered by the Board.

 

(b)           Procedure

for Grants.  All grants of

Options to Outside Directors under this Plan shall be automatic and

non-discretionary and shall be made strictly in accordance with the following

provisions:

 

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(i)            No

person shall have any discretion to select which Outside Directors shall be

granted Options or to determine the number of Shares to be covered by Options

granted to Outside Directors.

 

(ii)           Each

Outside Director shall be automatically granted an Initial Option to purchase

eight thousand (8,000) Shares (the “First Option”) on the date on which the

later of the following events occurs: (A) the effective date of the Company’s

initial underwritten public offering of its Common Stock pursuant to a

registration statement filed under the Securities Act of 1933, as amended, or

(B) the date on which such person first becomes a Director, whether through

election by the stockholders of the Company or appointment by the Board to fill

a vacancy.

 

(iii)          Commencing

on September 30, 1994, each Outside Director shall be automatically granted a

subsequent Option to purchase thirty five hundred (3,500) Shares (a “Subsequent

Option”) on September 30 of each year after the date of the First Option grant,

provided such Outside Director shall have served on the Board for at least six

months prior to the date of the Subsequent Option grant and remains an Outside

Director on such date.

 

(iv)          Notwithstanding

the provisions of subsections (ii) and (iii) hereof, any exercise of an Option

made before the Company has obtained stockholder approval of the Plan in

accordance with Section 17 hereof shall be conditioned upon obtaining such

stockholder approval of the Plan in accordance with Section 17 hereof.

 

(v)           The

terms of a First Option granted hereunder shall be as follows:

 

(A)  the term of

the First Option shall be ten (10) years.

 

(B)   the First Option shall be exercisable only

while the Outside Director remains a Director of the Company, except as set

forth in Section 9 hereof.

 

(C)   the exercise price per Share shall be 100% of

the fair market value per Share on the date of grant of the First Option.

 

(D)  the First Option shall become exercisable in

installments cumulatively as to twenty percent (20%) of the Shares subject to

the First Option one (1) year from its date of grant and as to twenty percent

(20%) each year thereafter if, on each such date, the Optionee has maintained

his Continuous Status as a Director.

 

(vi)          The

terms of a Subsequent Option granted hereunder shall be as follows:

 

(A)  the term of the Subsequent Option shall be ten

(10) years.

 

(B)   the Subsequent Option shall be exercisable

only while the Outside Director remains a Director of the Company, except as

set forth in Section 9 hereof.

 

(C)   the exercise price per Share shall be 100% of

the fair market value per Share on the date of grant of the Subsequent Option.

 

(D)  the Subsequent Option shall become exercisable

as to one hundred percent (100%) of the Shares subject to the Subsequent Option

five (5) years from its date of grant if, on such date, the Optionee has

maintained his Continuous Status as a Director.

 

3

 

(vii)         In

the event that any Option granted under the Plan would cause the number of

Shares subject to outstanding Options plus the number of Shares previously

purchased under Options to exceed the Pool, then the remaining Shares available

for Option grant shall be granted under Options to the Outside Directors on a

pro rata basis.  No further grants shall

be made until such time, if any, as additional Shares become available for

grant under the Plan through action of the stockholders to increase the number

of Shares which may be issued under the Plan or through cancellation or

expiration of Options previously granted hereunder.

 

(c)           Powers of

the Board.  Subject to the

provisions and restrictions of the Plan, the Board shall have the authority, in

its discretion: (i) to determine, upon review of relevant information and in

accordance with Section 3(i) of the Plan, the Fair Market Value of the Common

Stock; (ii) to interpret the Plan; (iii) to prescribe, amend and rescind rules

and regulations relating to the Plan; (iv) to authorize any person to execute

on behalf of the Company any instrument required to effectuate the grant of an

Option previously granted hereunder; and (v) to make all other determinations

deemed necessary or advisable for the administration of the Plan.

 

(d)           Effect of

Board’s Decision.  All

decisions, determinations and interpretations of the Board shall be final.

 

6.             Eligibility.  Options may be granted only to Outside

Directors.  All Options shall be

automatically granted in accordance with the terms set forth in Section 5(b)

hereof.  An Outside Director who has

been granted an Option may, if he is otherwise eligible, be granted an

additional Option or Options in accordance with such provisions.

 

The Plan shall not confer upon any Optionee any right with respect to

continuation of service as a Director or nomination to serve as a Director, nor

shall it interfere in any way with any rights which the Director or the Company

may have to terminate his or her directorship at any time.

 

7.             Term of Plan.  The Plan shall become effective upon the

earlier to occur of its adoption by the Board or its approval by the

stockholders of the Company as described in Section 17 of the Plan.  It shall continue in effect for a term of

ten (10) years unless sooner terminated under Section 12 of the Plan.

 

8.             Form of

Consideration.  The

consideration to be paid for the Shares to be issued upon exercise of an

Option, including the method of payment, shall be determined by the Board and

may consist entirely of (i) cash, (ii) check, (iii) promissory note, (iv) other

shares which (x) in the case of Shares acquired upon exercise of an Option,

have been owned by the Optionee for more than six (6) months on the date of

surrender, and (y) have a Fair Market Value on the date of surrender equal to

the aggregate exercise price of the Shares as to which said Option shall be

exercised, (v) delivery of a properly executed exercise notice together with

such other documentation as the Board and the broker, if applicable, shall

require to effect an exercise of the Option and delivery to the Company of the

sale or loan proceeds required to pay the exercise price, (vi) any combination

of the foregoing methods of payment, or (vii) such other consideration and

method of payment for the issuance of Shares to the extent permitted under

applicable law.

 

4

 

9.             Exercise of

Option.

 

(a)           Procedure

for Exercise; Rights as a Stockholder.  Any Option granted hereunder shall be exercisable at such times

as are set forth in Section 5(b) hereof; provided, however, that no Options

shall be exercisable until stockholder approval of the Plan in accordance with

Section 17 hereof has been obtained.

 

An Option may not be exercised for a fraction of a Share.

 

An Option shall be deemed to be exercised when written notice of such

exercise has been given to the Company in accordance with the terms of the

Option by the person entitled to exercise the Option and full payment for the

Shares with respect to which the Option is exercised has been received by the

Company.  Full payment may consist of

any consideration and method of payment allowable under Section 8 of the

Plan.  Until the issuance (as evidenced

by the appropriate entry on the books of the Company or of a duly authorized

transfer agent of the Company) of the stock certificate evidencing such Shares,

no right to vote or receive dividends or any other rights as a stockholder

shall exist with respect to the Optioned Stock, notwithstanding the exercise of

the Option.  A share certificate for the

number of Shares so acquired shall be issued to the Optionee as soon as

practicable after exercise of the Option. 

No adjustment will be made for a dividend or other right for which the

record date is prior to the date the stock certificate is issued, except as

provided in Section 11 of the Plan.

 

Exercise of an Option in any manner shall result in a decrease in the

number of Shares which thereafter may be available, both for purposes of the

Plan and for sale under the Option, by the number of Shares as to which the

Option is exercised.

 

(b)           Rule 16b-3.  Options granted to Outside Directors must

comply with the applicable provisions of Rule 16b-3 promulgated under the

Exchange Act or any successor thereto and shall contain such additional

conditions or restrictions as may be required thereunder to qualify for the

maximum exemption from Section 16 of the Exchange Act with respect to Plan

transactions.

 

(c)           Termination

of Continuous Status as a Director. 

In the event an Optionee’s Continuous Status as a Director terminates

(other than upon the Optionee’s death, total and permanent disability (as

defined in Section 22(e)(3) of the Code) or Retirement), the Optionee may

exercise his or her Option, but only within three (3) months from the date of

such termination, and only to the extent that the Optionee was entitled to

exercise it at the date of such termination (but in no event later than the

expiration of its ten (10) year term). 

To the extent that the Optionee was not entitled to exercise an Option

at the date of such termination, and to the extent that the Optionee does not

exercise such Option (to the extent otherwise so entitled) within the time

specified herein, the Option shall terminate.

 

(d)           Disability of

Optionee.  In the event

Optionee’s Continuous Status as a Director terminates as a result of total and

permanent disability (as defined in Section 22(e)(3) of the Code), the Option

granted hereunder to such Optionee shall become vested and exercisable for the

full number of Shares covered by the Option. 

The Optionee may exercise his or her Option, at any time within twelve

(12) months from the date of such termination (but in no event later than the

expiration of the term of such Option as set forth in the Notice of

Grant).  If, after termination, the

Optionee does not exercise his or her Option within the time specified herein,

the Option shall terminate, and the Shares covered by such Option shall revert

to the Plan.

 

(e)           Death of

Optionee.  In the event of

the death of an Optionee, the Option shall become vested and exercisable for

the full number of Shares covered by the Option.  The Option held by the Optionee

 

5

 

at the

time of death may be exercised at any time within twelve (12) months following

the date of death by the Optionee’s estate or by a person who acquired the

right to exercise the Option by bequest or inheritance.  In no event shall an Option be exercised

later than the expiration of the term of the Option, as set forth in the Option

agreement.  If, after death, the

Optionee’s estate or a person who acquired the right to exercise the Option by

bequest or inheritance does not exercise the Option within the time specified

herein, the Option shall terminate, and the Shares covered by such Option shall

revert to the Plan.

 

(f)            Retirement of Optionee.  In the event of an Optionee’s Retirement

while a Director, the Option shall become vested and exercisable for the full

number of Shares covered by the Option. 

The Option held by the Optionee at the time of Retirement may be

exercised at any time within twelve (12) months following the date of

Retirement.  In no event shall an Option

be exercised later than the expiration of the term of the Option, as set forth

in the Option Agreement; provided, however, that (i) this subsection (f) shall

not apply to grants made on or before May 16, 2002, and (ii) this subsection

(f) shall apply to grants made on or after May 17, 2002.  If the Option is not so exercised within the

time specified herein, the Option shall terminate, and the Shares covered by

such Option shall revert to the Plan.

 

10.           Non-Transferability

of Options.  The Option may

not be sold, pledged, assigned, hypothecated, transferred, or disposed of in

any manner other than by will or by the laws of descent or distribution and may

be exercised, during the lifetime of the Optionee, only by the Optionee.

 

11.           Adjustments

Upon Changes in Capitalization, Dissolution, Merger, Asset Sale or Change of

Control.

 

(a)           Changes in

Capitalization.  Subject to

any required action by the stockholders of the Company, the number of Shares

covered by each outstanding Option and the number of Shares which have been

authorized for issuance under the Plan but as to which no Options have yet been

granted or which have been returned to the Plan upon cancellation or expiration

of an Option, as well as the price per Share covered by each such outstanding

Option, shall be proportionately adjusted for any increase or decrease in the

number of issued Shares resulting from a stock split, reverse stock split,

stock dividend, combination or reclassification of the Common Stock, or any

other increase or decrease in the number of issued Shares effected without

receipt of consideration by the Company; provided, however, that conversion of

any convertible securities of the Company shall not be deemed to have been

“effected without receipt of consideration.” Such adjustment shall be made by

the Board, whose determination in that respect shall be final, binding and

conclusive.  Except as expressly

provided herein, no issuance by the Company of shares of stock of any class, or

securities convertible into shares of stock of any class, shall affect, and no

adjustment by reason thereof shall be made with respect to, the number or price

of Shares subject to an Option.  In

addition, a stock split, reverse stock split, stock dividend, combination or

reclassification of the Common Stock, or any other increase or decrease in the

number of issued Shares effected without receipt of consideration by the

Company shall not result in an adjustment to the number of shares granted to

Outside Directors pursuant to Section 5(b)(ii) and Section 5(b)(iii) of the

Plan subsequent to such stock split, reverse stock split, stock dividend,

combination or reclassification of the Common Stock, or other increase or

decrease in the number of issued Shares effected without receipt of

consideration by the Company.

 

(b)           Dissolution

or Liquidation.  In the event

of the proposed dissolution or liquidation of the Company, to the extent that

an Option has not been previously exercised, it will terminate immediately

prior to the consummation of such proposed action.  The Board may, in the exercise of its sole discretion in such

instances, declare that any Option shall terminate as of a date fixed by the

Board and give each Optionee the right to exercise his or her Option as to all

or any part of the Optioned Stock, including Shares as to which the Option

would not otherwise be exercisable.

 

6

 

(c)           Merger or

Asset Sale.  In the event of

a merger of the Company with or into another corporation, or the sale of

substantially all of the assets of the Company, each outstanding Option shall

be assumed or an equivalent option shall be substituted by the successor

corporation or a Parent or Subsidiary of the successor corporation.  In the event that the successor corporation

does not agree to assume the Option or to substitute an equivalent option, the

Board shall, in lieu of such assumption or substitution, provide for the

Optionee to have the right to exercise the Option as to all of the Optioned

Stock, including Shares as to which it would not otherwise be exercisable.  If the Board makes an Option fully

exercisable in lieu of assumption or substitution in the event of a merger or

sale of assets, the Board shall notify the Optionee that the Option shall be

fully exercisable for a period of thirty (30) days from the date of such

notice, and the Option will terminate upon the expiration of such period.  For the purposes of this paragraph, the

Option shall be considered assumed if, following the merger or sale of assets,

the option or right confers the right to purchase, for each Share of Optioned

Stock subject to the Option immediately prior to the merger or sale of assets,

the consideration (whether stock, cash, or other securities or property)

received in the merger or sale of assets by holders of Common Stock for each

Share held on the effective date of the transaction (and if holders were

offered a choice of consideration, the type of consideration chosen by the

holders of a majority of the outstanding Shares); provided, however, that if

such consideration received in the merger or sale of assets was not solely

common stock of the successor corporation or its Parent, the Board may, with

the consent of the successor corporation and the participant, provide for the

consideration to be received upon the exercise of the Option, for each Share of

Optioned Stock subject to the Option, to be solely common stock of the

successor corporation or its Parent equal in Fair Market Value to the per share

consideration received by holders of Common Stock in the merger or sale of

assets.

 

12.           Amendment

and Termination of the Plan.

 

(a)           Amendment

and Termination.  Except as

set forth in Section 5, the Board may at any time amend, alter, suspend, or

discontinue the Plan, but no amendment, alteration, suspension, or

discontinuation shall be made which would impair the rights of any Optionee

under any grant theretofore made, without his or her consent.  In addition, to the extent necessary and

desirable to comply with Rule 16b-3 under the Exchange Act (or any other

applicable law or regulation), the Company shall obtain stockholder approval of

any Plan amendment in such a manner and to such a degree as required.

 

(b)           Effect of

Amendment or Termination. 

Any such amendment or termination of the Plan shall not affect Options

already granted and such Options shall remain in full force and effect as if

this Plan had not been amended or terminated.

 

13.           Time of

Granting Options.  The date

of grant of an Option shall, for all purposes, be the date determined in

accordance with Section 5(b) hereof. 

Notice of the determination shall be given to each Outside Director to

whom an Option is so granted within a reasonable time after the date of such

grant.

 

14.           Conditions

Upon Issuance of Shares. 

Shares shall not be issued pursuant to the exercise of an Option unless

the exercise of such Option and the issuance and delivery of such Shares

pursuant thereto shall comply with all relevant provisions of law, including,

without limitation, the Securities Act of 1933, as amended, the Exchange Act,

the rules and regulations promulgated thereunder, state securities laws, and

the requirements of any stock exchange upon which the Shares may then be

listed, and shall be further subject to the approval of counsel for the Company

with respect to such compliance.

 

As a condition to the exercise of an Option, the Company may require

the person exercising such Option to represent and warrant at the time of any

such exercise that the Shares are being purchased only for investment and

without any present intention to sell or distribute such Shares, if, in the

opinion of counsel for the Company, such a representation is required by any of

the aforementioned relevant provisions of law.

 

7

 

Inability of the Company to obtain authority from any regulatory body

having jurisdiction, which authority is deemed by the Company’s counsel to be

necessary to the lawful issuance and sale of any Shares hereunder, shall

relieve the Company of any liability in respect of the failure to issue or sell

such Shares as to which such requisite authority shall not have been obtained.

 

15.           Reservation

of Shares.  The Company,

during the term of this Plan, will at all times reserve and keep available such

number of Shares as shall be sufficient to satisfy the requirements of the

Plan.

 

16.           Option

Agreement.  Options shall be

evidenced by written option agreements in such form as the Board shall approve.

 

17.           Stockholder

Approval.  Continuance of the

Plan shall be subject to approval by the stockholders of the Company at or

prior to the first annual meeting of stockholders held subsequent to the

granting of an Option hereunder.  Such

stockholder approval shall be obtained in the degree and manner required under

applicable state and federal law.

 

8Local: A:\angfo.doc

Exhibit 10.1

 

SEVENTH

AMENDMENT OF CREDIT AGREEMENT

 

THIS SEVENTH AMENDMENT OF CREDIT AGREEMENT (this “Amendment”) is entered into, effective as of

March 25, 2002, between PROTECTION ONE ALARM MONITORING, INC., a Delaware

corporation (“Borrower”),

each of the Persons which is a signatory to this Amendment (collectively, “Lenders”),  and WESTAR

INDUSTRIES, INC., as Administrative Agent for the Lenders (in such capacity,

together with its successors in such capacity, “Administrative Agent”).

 

R E C I

T A L S

 

A.            Borrower, Lenders

and Administrative Agent entered into the Credit Agreement dated as of December

21, 1998 (as renewed, extended, modified, and amended from time to time, the “Credit Agreement”;

capitalized terms used herein shall, unless otherwise indicated, have the

respective meanings set forth in the Credit Agreement), providing for a

revolving credit facility in the original maximum principal amount of

$500,000,000.

 

B.            Pursuant to a letter

agreement dated as of September 30, 1999, Borrower reduced the Total Commitment

to $250,000,000.

 

C.            The Lenders and the

Administrative Agent entered into that certain Assignment and Acceptance dated

December 17, 1999 wherein the Administrative Agent and the Lenders assigned all

of their rights and obligations under the Credit Agreement to Westar

Industries, Inc. (f/k/a Westar Capital, Inc.).

 

D.            Borrower, Lender and

Administrative Agent entered into a Second Amendment of Credit Agreement

effective as of February 29, 2000, a Third Amendment of Credit Agreement effective

as of January 2, 2001, a Fourth Amendment of Credit Agreement effective as of

March 2, 2001, a Fifth Amendment to Credit Agreement effective as of June 30,

2001, and a Sixth Amendment of Credit Agreement effective as of November 1,

2001, pursuant to which certain provisions of the Credit Agreement were

amended.

 

E.             Borrower, Lender,

and Administrative Agent desire to further modify certain provisions contained

in the Credit Agreement to increase the amount of the Committed Sum (as defined

herein), subject to the terms and conditions set forth herein.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and

sufficiency of which are hereby acknowledged, Borrower, Lender, and

Administrative Agent agree as follows:

 

1.             Amendments

to the Credit Agreement. 

Schedule 2.1

is hereby deleted and replaced with Schedule 2.1 attached hereto.

 

2.             Amendment of Credit Agreement and Other

Loan Documents. All references in the Loan Documents to the Credit

Agreement shall henceforth include references to the Credit Agreement as

modified and amended by this Amendment, and as 

 

 

may, from time to time,

be further modified, amended, restated, extended, renewed, and/or increased.

 

3.             Ratifications.

Borrower (a) ratifies and confirms all provisions of the Loan

Documents as amended by this Amendment, (b) ratifies and confirms that all

guaranties, assurances, and Liens, if any, granted, conveyed, or assigned to

the Credit Parties under the Loan Documents are not released, reduced, or

otherwise adversely affected by this Amendment and continue to guarantee,

assure, and secure full payment and performance of the present and future

Obligation, and (c) agrees to perform such acts and duly authorize, execute,

acknowledge, deliver, file, and record such additional documents, and

certificates as the Credit Parties may reasonably request in order to create,

perfect, preserve, and protect those guaranties, assurances, and Liens.

 

4.             Representations.

Borrower represents and warrants to the Credit Parties that

as of the date of this Amendment: (a) this Amendment has been duly authorized,

executed, and delivered by Borrower and each of the other Obligors that are

parties to this Amendment; (b) no action of, or filing with, any Governmental

Authority is required to authorize, or is otherwise required in connection

with, the execution, delivery, and performance by Borrower or any other Obligor

of this Amendment; (c) the Loan Documents, as amended by this Amendment, are

valid and binding upon Borrower and the other Obligors and are enforceable

against Borrower and the other Obligors in accordance with their respective

terms, except as limited by Debtor Relief Laws and general principles of

equity; (d) the execution, delivery, and performance by Borrower and the other

Obligors of this Amendment do not require the consent of any other Person and

do not and will not constitute a violation of any Governmental Requirement,

order of any Governmental Authority, or material agreements to which Borrower

or any other Obligor is a party thereto or by which Borrower or any other

Obligor is bound; (e) all representations and warranties in the Loan Documents

are true and correct in all material respects on and as of the date of this

Amendment, except to the extent that (i) any of them speak to a different

specific date, or (ii) the facts on which any of them were based have been

changed by transactions contemplated or permitted by the Credit Agreement; and

(f) both before and after giving effect to this Amendment, no Potential

Default or Default exists.

 

5.             Conditions.

This Amendment shall not be effective unless and until:

 

(a)           this Amendment has been executed by

Borrower, the other Obligors, Administrative Agent, and the Required Lenders;

 

(b)           Borrower shall have delivered to

Administrative Agent such documents satisfactory to Administrative Agent as it

may request evidencing the authorization and execution of this Agreement, and

any other documents executed and delivered in connection herewith

(collectively, the “Amendment Documents”; and

 

(c)           Borrower shall have paid to the

Administrative Agent, for the account of the Credit Parties as Administrative

Agent shall determine, an amendment fee in an

 

2

 

amount equal to 1% of the increase in the Total Commitment

made effective on the effective date of this Amendment ($250,000).

 

6.             Continued

Effect. Except to the extent amended hereby or by any

documents executed in connection herewith, all terms, provisions, and

conditions of the Credit Agreement and the other Loan Documents, and all

documents executed in connection therewith, shall continue in full force and

effect and shall remain enforceable and binding in accordance with their

respective terms.

 

7.             Miscellaneous.

Unless stated otherwise (a) the singular number includes the

plural and vice versa and words of any gender include each other gender, in

each case, as appropriate, (b) headings and captions may not be construed in

interpreting provisions, (c) this Amendment shall be construed and its performance

enforced, under Texas law, (d) if any part of this Amendment is for any reason

found to be unenforceable, all other portions of it nevertheless remain

enforceable, and (e) this Amendment may be executed in any number of

counterparts with the same effect as if all signatories had signed the same

document, and all of those counterparts must be construed together to

constitute the same document.

 

8.             Parties. This Amendment binds

and inures to Borrower and the Credit Parties and their respective successors and

permitted assigns.

 

9.             Entireties. The Credit Agreement and the other loan documents, as

amended by this amendment and the other amendment documents, represent the

final agreement between the parties about the subject matter of the credit

agreement and may not be contradicted by evidence of prior, contemporaneous, or

subsequent oral agreements of the parties. 

there are no unwritten oral agreements between the parties.

 

[THE

REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

3

 

SIGNATURE

PAGE TO SEVENTH AMENDMENT OF

CREDIT

AGREEMENT AMONG

PROTECTION

ONE ALARM MONITORING, INC., AS BORROWER,

WESTAR

INDUSTRIES, INC., AS ADMINISTRATIVE AGENT

AND

THE

LENDERS NAMED HEREIN

 

EXECUTED on and effective as of the date first above

written.

 

	

   

  	

  PROTECTION ONE ALARM MONITORING, INC., a

  Delaware corporation, as Borrower

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Darius Nevin

  	

   

  
	

   

  	

   

  	

  Name: Darius Nevin

  
	

   

  	

   

  	

  Title:

  Executive Vice President and

  Chief Financial Officer

  

 

4

 

SIGNATURE

PAGE TO SEVENTH AMENDMENT OF

CREDIT

AGREEMENT AMONG

PROTECTION

ONE ALARM MONITORING, INC., AS BORROWER,

WESTAR

INDUSTRIES, INC., AS ADMINISTRATIVE AGENT,

AND

THE

LENDERS NAMED HEREIN

 

EXECUTED on and effective as of the date first above

written.

 

	

   

  	

  WESTAR INDUSTRIES, INC., as

  Administrative Agent and a Lender

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Paul R. Geist

  	

   

  
	

   

  	

   

  	

  Name: Paul R. Geist

  
	

   

  	

   

  	

  Title:

  President

  

 

5

 

To induce the Credit Parties to enter into this Amendment, each of the

undersigned (a) consents and agrees to the Amendment Documents’ execution and

delivery, (b) ratifies and confirms that all guaranties, assurances, and Liens,

if any, granted, conveyed, or assigned to the Credit Parties under the Loan

Documents are not released, diminished, impaired, reduced, or otherwise

adversely affected by the Amendment Documents and continue to guarantee,

assure, and secure the full payment and performance of all present and future

Obligations (except to the extent specifically limited by the terms of such

guaranties, assurances, or Liens), (c) agrees to perform such acts and duly

authorize, execute, acknowledge, deliver, file, and record such additional

guaranties, assignments, security agreements, deeds of trust, mortgages, and

other agreements, documents, instruments, and certificates as the Credit

Parties may reasonably deem necessary or appropriate in order to create,

perfect, preserve, and protect those guaranties, assurances, and Liens, and (d)

waives notice of acceptance of this consent and agreement, which consent and

agreement binds the undersigned and its successors and permitted assigns and

inures to the Credit Parties and their respective successors and permitted

assigns.

 

EXECUTED on and effective as of the date first above

written.

 

	

   

  	

  PROTECTION ONE, INC., a Delaware

  corporation

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Darius Nevin

  	

   

  
	

   

  	

   

  	

  Name: Darius Nevin

  
	

   

  	

   

  	

  Title:

  Executive Vice President and

  Chief Financial Officer

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  NETWORK MULTI-FAMILY SECURITY CORPORATION, a

  Delaware corporation

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Anthony D. Somma

  	

   

  
	

   

  	

   

  	

  Name: Anthony D. Somma

  
	

   

  	

   

  	

  Title:

  Assistant Treasurer

  
					

 

6

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