Document:

Exhibit 4(b)

Exhibit 4(b)

[EXECUTION COPY]

GUARANTY AGREEMENT

This GUARANTY AGREEMENT, dated as of March 26, 2009 (this “Guaranty”), is made by UNISOURCE
ENERGY CORPORATION, an Arizona corporation (the “Guarantor”), in favor of (i) UNION BANK, N.A., as
Agent (in such capacity, together with its successors and assigns in such capacity, the “Agent”)
for each of the Secured Parties (as defined in the UED Credit Agreement referred to below), and
(ii) the other Secured Parties.

PRELIMINARY STATEMENTS

1. Pursuant to that certain Credit Agreement, dated as of March 26, 2009 (as amended, amended
and restated, supplemented or otherwise modified from time to time, the “UED Credit Agreement”; the
capitalized terms defined therein not otherwise defined herein being used herein as therein
defined), among Unisource Energy Development Company, an Arizona corporation (the “Company”), the
Banks named therein and from time to time party thereto, and Union Bank, N.A., as Agent, the Banks
have agreed to make certain Loans available to the Company on the terms and conditions set forth
therein.

2. The obligation of the Banks to make Loans to the Company pursuant to the UED Credit
Agreement is conditioned upon, among other things, the execution and delivery of this Guaranty by
the Guarantor.

3. The Guarantor owns 100% of the issued and outstanding shares of capital stock of the
Company, and will derive substantial direct and indirect benefits from the transactions
contemplated by the UED Credit Agreement. The Guarantor is willing to guarantee the Obligations of
the Company under the UED Credit Agreement and the other Financing Documents as hereinafter
provided to obtain such benefits.

NOW, THEREFORE, in consideration of the premises and in order to induce the Banks to make
Loans under the UED Credit Agreement and to induce the Secured Parties to otherwise satisfy their
obligations under the UED Credit Agreement and the other Financing Documents, the Guarantor hereby
agrees as follows:

SECTION 1. Guaranty.

The Guarantor hereby absolutely, unconditionally and irrevocably guarantees the punctual
payment when due, whether at scheduled maturity or on any date of a required prepayment or by
acceleration, demand or otherwise, of all Obligations of the Company now or hereafter existing
under or in respect of the UED Credit Agreement and the other Financing Documents (including,
without limitation, any extensions, modifications, substitutions, amendments or renewals of any or
all of the foregoing Obligations), whether direct or indirect,
absolute or contingent, and whether for principal, interest, reimbursement obligations,
premiums, fees, indemnities, contract causes of action, costs, expenses or otherwise, including,
without limitation, the obligation of the Company to pay principal, interest, charges, expenses,
fees, attorneys’ fees and disbursements, indemnities and other amounts payable by the Company under
any Financing Document (such Obligations, the “Guaranteed Obligations”), and agrees to pay any and
all costs and expenses (including, without limitation, reasonable fees and expenses of counsel)
incurred by any Secured Party in enforcing any rights under this Guaranty. Without limiting the
generality of the foregoing, the Guarantor’s liability shall extend to all amounts that constitute
part of the Guaranteed Obligations and would be owed by the Company to any Secured Party under or
in respect of the Financing Documents but for the fact that they are unenforceable or not allowable
due to the existence of a bankruptcy, reorganization or similar proceeding involving the Company.

 

 

 

SECTION 2. Guaranty Absolute.

The Guarantor guarantees that the Guaranteed Obligations will be paid strictly in accordance
with the terms of the Financing Documents, regardless of any law, regulation or order now or
hereafter in effect in any jurisdiction affecting any of such terms or the rights of any Secured
Party with respect thereto. The obligations of the Guarantor under or in respect of this Guaranty
are independent of the Guaranteed Obligations or any other obligations of the Company under or in
respect of the Financing Documents, and a separate action or actions may be brought and prosecuted
against the Guarantor to enforce this Guaranty, irrespective of whether any action is brought
against the Company or whether the Company is joined in any such action or actions. The liability
of the Guarantor under this Guaranty shall be irrevocable, absolute and unconditional irrespective
of, and the Guarantor hereby irrevocably waives any defenses it may now have or hereafter acquire
in any way relating to, any or all of the following:

(a) any lack of validity or enforceability of any Financing Document or any agreement
or instrument relating thereto;

(b) any change in the time, manner or place of payment of, or in any other term of, all
or any of the Guaranteed Obligations or any other obligations of the Company under or in
respect of the Financing Documents, or any other amendment or waiver of or any consent to
departure from any Financing Document, including, without limitation, any increase in the
Guaranteed Obligations resulting from the extension of additional credit to the Company or
any of its Subsidiaries or otherwise;

(c) any taking, exchange, release or non-perfection of any collateral, or any taking,
release or amendment or waiver of, or consent to departure from, any other guaranty, for all
or any of the Guaranteed Obligations;

(d) any manner of application of any collateral, or proceeds thereof, to all or any of
the Guaranteed Obligations, or any manner of sale or other disposition of any collateral for
all or any of the Guaranteed Obligations or any other assets of the Company or any of its
Subsidiaries;

(e) any change, restructuring or termination of the corporate structure or existence of
the Company or any of its Subsidiaries;

 

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(f) any failure of any Secured Party to disclose to the Guarantor any information
relating to the business, condition (financial or otherwise), operations, performance,
properties or prospects of the Company now or hereafter known to such Secured Party (the
Guarantor waiving any duty on the part of the Secured Parties to disclose such information);

(g) the failure of any other Person to execute or deliver this Guaranty or any other
guaranty or agreement or the release or reduction of liability of the Guarantor or any other
guarantor or surety with respect to the Guaranteed Obligations; or

(h) any other circumstance (including, without limitation, any statute of limitations)
or any existence of or reliance on any representation by any Secured Party that might
otherwise constitute a defense available to, or a discharge of, the Guarantor or any other
guarantor or surety.

This Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time
any payment of any of the Guaranteed Obligations is rescinded or must otherwise be returned by any
Secured Party or any other Person upon the insolvency, bankruptcy or reorganization of the
Guarantor, the Company or otherwise, all as though such payment had not been made.

SECTION 3. Waivers and Acknowledgments.

(a) The Guarantor hereby unconditionally and irrevocably waives promptness, diligence, notice
of acceptance, presentment, demand for performance, notice of nonperformance, default,
acceleration, protest or dishonor and any other notice with respect to any of the Guaranteed
Obligations and this Guaranty and any requirement that any Secured Party protect, secure, perfect
or insure any Lien or any property subject thereto or exhaust any right or take any action against
the Company or any other Person or any collateral.

(b) The Guarantor hereby unconditionally and irrevocably waives any right to revoke this
Guaranty and acknowledges that this Guaranty is continuing in nature and applies to all Guaranteed
Obligations, whether existing now or in the future.

(c) The Guarantor hereby unconditionally and irrevocably waives (i) any defense arising by
reason of any claim or defense based upon an election of remedies by any Secured Party that in any
manner impairs, reduces, releases or otherwise adversely affects the subrogation, reimbursement,
exoneration, contribution or indemnification rights of the Guarantor or other rights of the
Guarantor to proceed against the Company or any other Person or any collateral and (ii) any defense
based on any right of set-off or counterclaim against or in respect of the Guaranteed Obligations.

(d) The Guarantor hereby unconditionally and irrevocably waives any duty on the part of any
Secured Party to disclose to the Guarantor any matter, fact or thing relating to the business,
condition (financial or otherwise), operations, performance, properties or prospects of the Company
or any of its Subsidiaries now or hereafter known by such Secured Party.

(e) The Guarantor acknowledges that it will receive substantial direct and indirect benefits
from the financing arrangements contemplated by the Financing Documents and that the waivers set
forth in Section 2 and this Section 3 are knowingly made in contemplation of such benefits.

 

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SECTION 4. Subrogation.

The Guarantor hereby unconditionally and irrevocably agrees not to exercise any rights that it
may now have or hereafter acquire against the Company that arise from the existence, payment,
performance or enforcement of the Guaranteed Obligations under or in respect of this Guaranty,
including, without limitation, any right of subrogation, reimbursement, exoneration, contribution
or indemnification and any right to participate in any claim or remedy of any Secured Party against
the Company, whether or not such claim, remedy or right arises in equity or under contract, statute
or common law, including, without limitation, the right to take or receive from the Company,
directly or indirectly, in cash or other property or by set-off or in any other manner, payment or
security on account of such claim, remedy or right, unless and until all of the Guaranteed
Obligations and all other amounts payable under this Guaranty shall have been paid in full in cash.
If any amount shall be paid to the Guarantor in violation of the immediately preceding sentence at
any time prior to the later of (a) the payment in full in cash of the Guaranteed Obligations and
all other amounts payable under this Guaranty, and (b) the termination or expiration of all
Interest Rate Protection Agreements to which any Secured Party is a party, such amount shall be
received and held in trust for the benefit of the Secured Parties, shall be segregated from other
property and funds of the Guarantor and shall forthwith be paid or delivered to the Agent in the
same form as so received (with any necessary endorsement or assignment) to be credited and applied
to the Guaranteed Obligations and all other amounts payable under this Guaranty, whether matured or
unmatured, in accordance with the terms of the Financing Documents, or to be held as collateral for
any Guaranteed Obligations or other amounts payable under this Guaranty thereafter arising. If
(i) the Guarantor shall make payment to any Secured Party of all or any part of the Guaranteed
Obligations, (ii) all of the Guaranteed Obligations and all other amounts payable under this
Guaranty shall have been paid in full in cash, and (iii) all Interest Rate Protection Agreements to
which any Secured Party is a party shall have terminated or expired, the Secured Parties will, at
the Guarantor’s request and expense, execute and deliver to the Guarantor appropriate documents,
without recourse and without representation or warranty, necessary to evidence the transfer by
subrogation to the Guarantor of an interest in the Guaranteed Obligations resulting from such
payment made by the Guarantor pursuant to this Guaranty.

SECTION 5. Payments Free and Clear of Taxes, Etc.

(a) Section 5.04 of the UED Credit Agreement is incorporated herein by reference as if set
forth at length in this Guaranty, mutatis mutandis; provided that each reference to the term
“Company” shall be deemed to be a reference to the Guarantor, and each reference to the term “this
Agreement”, “hereunder” or words of like import referring to the UED Credit Agreement shall be
deemed to be a reference to this Guaranty and each other Financing Document to which the Guarantor
is a party, if any.

(b) Without prejudice to the survival of any other agreement of the Guarantor hereunder, the
agreements and obligations of the Guarantor contained in this Section 5 shall survive the payment
in full or termination of the Guaranteed Obligations.

 

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SECTION 6. Representations and Warranties.

(a) The Guarantor hereby makes for the benefit of the Secured Parties all of the
representations and warranties of the Guarantor contained in Article III (other than Sections 3.08
and 3.12 thereof) of the UniSource Credit Agreement (in the form of such representations and
warranties as they exist on the date of this Guaranty and as they may hereafter be amended from
time to time, but only to the extent that the incorporation of any such amendments into this
Guaranty has been consented to in accordance with Section 8 hereof), which representations and
warranties are incorporated herein by reference as if set forth at length in this Guaranty, mutatis
mutandis; provided that each reference to the term “this Agreement”, “hereunder” or words of like
import referring to the UniSource Credit Agreement shall be deemed to be a reference to this
Guaranty; each reference to the term “Loan Documents” shall be deemed to be a reference to this
Guaranty and each other Financing Document to which the Guarantor is a party, if any; each
reference to the term “Transactions” shall be deemed to be a reference to the execution, delivery
and performance by the Guarantor of this Guaranty and the other Financing Documents to which the
Guarantor is a party, if any; each reference to the term “Borrower” shall be deemed to be a
reference to the Guarantor; each reference to the term “Administrative Agent” or “Lender” shall be
deemed to be a reference to the Secured Parties; each reference to the date “December 31, 2005”
shall be deemed to refer to the date “December 31, 2008”; and each reference to the term
“Disclosure Documents” shall be deemed to refer to the Annual Report on Form 10-K of the Guarantor
for the year ended December 31, 2008, as filed with the Securities and Exchange Commission.

(b) The Guarantor hereby makes for the benefit of the Secured Parties each of the following
additional representations and warranties:

(i) There are no conditions precedent to the effectiveness of this Guaranty that have
not been satisfied or waived.

(ii) The Guarantor has, independently and without reliance upon any Secured Party and
based on such documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Guaranty and each other Financing Document to which
it is or is to be a party, and the Guarantor has established adequate means of obtaining
from the Company on a continuing basis information pertaining to, and is now and on a
continuing basis will be completely familiar with, the business, condition (financial or
otherwise), operations, performance, properties and prospects of the Company.

SECTION 7. Covenants.

So long as any Loan or any other Guaranteed Obligations shall remain unpaid or any Bank shall
have any Commitment, the Guarantor shall observe and perform all of the covenants of the Guarantor
contained in Articles V and VI of the UniSource Credit Agreement (in the form
of such covenants as they exist as of the date of this Guaranty and as they may hereafter be
amended from time to time, but only to the extent that the incorporation of any such amendments
into this Guaranty has been consented to in accordance with Section 8), and all such covenants are
hereby incorporated and made applicable by reference as if set forth at length in this Guaranty,
mutatis mutandis; provided that any notices, financial statements, certificates or other documents
required to be delivered to the “Administrative Agent” or any “Lender” thereunder shall be
delivered simultaneously to the Agent (who shall promptly furnish a copy thereof to each Bank).

 

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SECTION 8. Amendments, Etc.

No amendment or waiver of any provision of this Guaranty and no consent to any departure by
the Guarantor therefrom shall in any event be effective unless the same shall be in writing and
signed by the Agent and the Majority Banks, and then such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given; provided, however, that no
amendment, waiver or consent shall, unless in writing and signed by all of the Banks, (a) reduce or
limit the obligations of the Guarantor hereunder, release the Guarantor hereunder or otherwise
limit the Guarantor’s liability with respect to the Obligations owing to the Secured Parties under
or in respect of the Financing Documents, (b) postpone any date fixed for payment hereunder or (c)
change the number of Banks or the percentage of the aggregate unpaid principal amount of the Loans
that, in each case, shall be required for the Banks or any of them to take any action hereunder;
and provided, further, that no amendment, waiver or consent shall, unless in writing and signed by
the Agent in addition to the Banks required above to take such action, affect the rights or duties
of the Agent under this Guaranty.

SECTION 9. Notices, Etc.

All notices and other communications provided for hereunder shall be in writing (including
telegraphic, telecopy or cable communication) and mailed, telegraphed, telecopied, cabled or
delivered to it, if to the Guarantor, addressed to it at the address listed below the Guarantor’s
name on the signature pages hereto, if to the Agent or any other Secured Party, at its address
specified in Section 15.02 of the UED Credit Agreement, or, as to each party, at such other address
as shall be designated by such party in a written notice to each other party. All such notices and
other communications shall, when mailed, telegraphed, telecopied or cabled, be effective when
deposited in the mails, delivered to the telegraph company, telecopied or delivered to the cable
company, respectively. Delivery by telecopier of an executed counterpart of a signature page to
any amendment or waiver of any provision of this Guaranty shall be effective as delivery of an
original executed counterpart thereof.

SECTION 10. No Waiver, Remedies.

No failure on the part of any Secured Party to exercise, and no delay in exercising, any right
hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right
hereunder preclude any other or further exercise thereof or the exercise of any other right. The
remedies herein provided are cumulative and not exclusive of any remedies provided by law.

SECTION 11. Right of Set-off.

Upon the occurrence and during the continuance of any Event of Default, each Secured Party is
hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set
off and apply any and all deposits (general or special, time or demand, provisional or final) at
any time held and other indebtedness at any time owing by such Secured Party to or for the credit
or the account of the Guarantor against any and all of the obligations of the Guarantor now or
hereafter existing under this Guaranty, irrespective of whether such Secured Party shall have made
any demand under this Guaranty or any other Financing Document and although such obligations may be
unmatured. Each Secured Party agrees promptly to notify the Guarantor after any such set-off and
application; provided, however, that the failure to give such notice shall not affect the validity
of such set-off and application. The rights of each Secured Party under this Section are in
addition to other rights and remedies (including, without limitation, other rights of set-off) that
such Secured Party may have.

 

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SECTION 12. Indemnification.

(a) Without limitation of any other Guaranteed Obligations of the Guarantor or remedies of the
Secured Parties under this Guaranty, the Guarantor shall, to the fullest extent permitted by law,
indemnify, defend and save and hold harmless each Secured Party and each of its Affiliates and
their respective officers, directors, employees, agents and advisors (each, an “Indemnified Party”)
from and against, and shall pay on demand, any and all claims, damages, losses, liabilities and
expenses (including, without limitation, reasonable fees and expenses of counsel) that may be
incurred by or asserted or awarded against any Indemnified Party in connection with or as a result
of any failure of any Guaranteed Obligations to be the legal, valid and binding obligations of the
Company enforceable against the Company in accordance with their terms.

(b) The Guarantor hereby also agrees that none of the Indemnified Parties shall have any
liability (whether direct or indirect, in contract, tort or otherwise) to the Guarantor or any of
its Affiliates or any of their respective officers, directors, employees, agents and advisors, and
the Guarantor hereby agrees not to assert any claim against any Indemnified Party on any theory of
liability, for special, indirect, consequential or punitive damages in connection with, arising out
of, or otherwise relating to this Guaranty, any of the transactions contemplated herein or the
actual or proposed use of the proceeds of the Loans constituting Guaranteed Obligations.

(c) Without prejudice to the survival of any of the other agreements of the Guarantor under
this Guaranty or any of the other Financing Documents, the agreements and obligations of the
Guarantor contained in Section 1(a) (with respect to enforcement expenses), the last sentence of
Section 2, Section 5 and this Section 12 shall survive the payment in full of the Guaranteed
Obligations and all of the other amounts payable under this Guaranty.

SECTION 13. Continuing Guaranty; Assignments under the UED Credit Agreement.

This Guaranty is a continuing guaranty and shall (a) remain in full force and effect until the
later of (i) the payment in full in cash of the Guaranteed Obligations and all other amounts
payable under this Guaranty, and (ii) the date of the termination or expiration of all Interest
Rate
Protection Agreements to which any Secured Party is a party, (b) be binding upon the
Guarantor, its successors and assigns and (c) inure to the benefit of and be enforceable by the
Secured Parties and their successors, transferees and assigns. Without limiting the generality of
clause (c) of the immediately preceding sentence, any Bank may assign or otherwise transfer all or
any portion of its rights and obligations under the UED Credit Agreement (including, without
limitation, all or any portion of its Commitment, the Loans owing to it and the Note or Notes held
by it) to any other Person, and such other Person shall thereupon become vested with all the
benefits in respect thereof granted to such Bank herein or otherwise, in each case as and to the
extent provided in Section 14.01 of the UED Credit Agreement. The Guarantor shall not have the
right to assign its rights hereunder or any interest herein without the prior written consent of
the Secured Parties.

 

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SECTION 14. Execution in Counterparts.

This Guaranty and each amendment, waiver and consent with respect hereto may be executed in
any number of counterparts and by different parties thereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken together shall constitute
one and the same agreement. Delivery of an executed counterpart of a signature page to this
Guaranty by telecopier or other electronic transmission shall be effective as delivery of an
original executed counterpart of this Guaranty.

SECTION 15. Governing Law; Jurisdiction; Waiver of Jury Trial, Etc.

(a) THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK.

(b) To the fullest extent permitted by law, the Guarantor hereby irrevocably and
unconditionally (i) submits, for itself and its property, to the nonexclusive jurisdiction of any
New York State court or Federal court of the United States of America sitting in New York City, and
any appellate court from any thereof, in any action or proceeding arising out of or relating to
this Guaranty or any of the other Financing Documents to which it is or is to be a party, and (ii)
agrees that all claims in respect of any such action or proceeding may be heard and determined in
such New York State court or in such Federal court. The Guarantor agrees, to the fullest extent
permitted by law, that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by
law.

(c) The Guarantor hereby irrevocably and unconditionally waives, to the fullest extent
permitted by law, any objection that it may now or hereafter have to the laying of venue of any
suit, action or proceeding arising out of or relating to this Guaranty or any of the other
Financing Documents to which it is or is to be a party in any New York State or federal court. The
Guarantor hereby irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such suit, action or proceeding in any such court. The
Guarantor also irrevocably consents, to the fullest extent permitted by law, to the service of any
and all process in any such suit, action or proceeding by the mailing through certified mail of
copies of such process to the Guarantor at its address set forth below its signature below.

(d) THE GUARANTOR AND EACH SECURED PARTY HEREBY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS GUARANTY, ANY OTHER FINANCING
DOCUMENT, OR ANY OTHER INSTRUMENT OR DOCUMENT DELIVERED HEREUNDER OR THEREUNDER.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

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IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be duly executed and delivered
by its officer thereunto duly authorized as of the date first above written.

	 	 	 	 	 	 	 	 
	 	 	GUARANTOR
	 
	 	 	 	 	 	 	 
	 	 	UNISOURCE ENERGY CORPORATION
	 
	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kevin P. Larson
	 	 	 	 	 
	 	 	 	 	Name:	Kevin P. Larson
	 	 	 	 	Title:	SVP, CFO and Treasurer
	 
	 	 	 	 	 	 	 
	 	 	Address:	One South Church, Suite 100

Tucson, Arizona 85701

Attention: Chief Financial Officer

Facsimile No.: (520) 884-3612

Signature Page to UniSource Energy Guaranty

 

S-1

 

	 	 	 	 	 	 
	AGREED AND ACCEPTED:	 	 
	 
	 	 	 	 	 
	UNION BANK, N.A., as Agent	 	 
	 
	 	 	 	 	 
	By:
	 	/s/ Jeffrey P. Fesenmaier	 	 
	 

	 	 	 	 
	 
	 	Name:	Jeffrey P. Fesenmaier	 	 
	 
	 	Title:	Vice President	 	 

Signature Page to UniSource Energy Guaranty

 

S-2creditam_9.htm

    EXHIBIT
10.1

    

      NINTH
AMENDMENT TO CREDIT AGREEMENT

      

      THIS NINTH AMENDMENT TO CREDIT
AGREEMENT (this “Amendment”), dated as
of March 27, 2009, is by and among ENTERTAINMENT DISTRIBUTION COMPANY,
LLC, a Delaware limited liability company (the “Borrower”), those
Domestic Subsidiaries of the Borrower identified as a “Guarantor” on the
signature pages hereto (individually a “Guarantor” and
collectively the “Guarantors”), the
financial institutions party hereto as lenders (the “Lenders”) and WACHOVIA BANK, NATIONAL
ASSOCIATION, as administrative agent under the Credit Agreement (defined
below) (in such capacity, the “Administrative
Agent”).

       

      W
I T N E S S E T H

      

      WHEREAS, the Borrower, the
Guarantors, Glenayre Electronics, Inc., a Colorado corporation, the Lenders and
the Administrative Agent are parties to that certain Credit Agreement dated as
of May 31, 2005 (as previously amended, modified or supplemented and as further
amended, modified, supplemented, restated or amended and restated from time to
time, the “Credit
Agreement”; capitalized terms used herein shall have the meanings
ascribed thereto in the Credit Agreement as amended hereby); and

      

      WHEREAS, the Borrower and the
Lenders have agreed to amend the Credit Agreement on the terms and conditions
set forth herein;

      

      NOW, THEREFORE, in
consideration of the agreements hereinafter set forth, and for other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as follows:

      

      ARTICLE
I

      AMENDMENTS
TO CREDIT AGREEMENT

      

      1.1           Amendment
to Section 1.1.  Section 1.1 of
the Credit Agreement is hereby amended as follows:

      

      (a)           Each
of the following terms is hereby amended and restated in its entirety as
follows:

      

      “Consolidated EBITDA”
shall mean, for any period, the sum of (a) Consolidated Net Income for such
period, plus
(b) an amount which, in the determination of Consolidated Net Income for such
period, has been deducted for (i) Consolidated Interest Expense, (ii) total
federal, state, local and foreign income taxes and (iii) depreciation and
amortization expense, all as determined in accordance with GAAP (except for the
exclusion of Rebate Payments).  Notwithstanding the foregoing, for the
fiscal quarter ended December 31, 2008, and each fiscal quarter thereafter,
Consolidated EBITDA shall be calculated by adding to the number determined
pursuant to the foregoing sentence impairment charges, non-cash charges and
one-time charges for the Sony Sale and any charges related to U.S. operations or
discontinued operations (but not including any ongoing overhead from U.S.
operations), and impairment charges pertaining to the write-down of intangibles
of the German operations, which charges to be added back shall not exceed, in
the aggregate, $30,000,000, to the extent such charges were deducted in the
determination of Consolidated Net Income for the applicable period.

      

      (b)           The
following defined terms are hereby added to the Credit Agreement in the
appropriate alphabetical order:

      

      “Ninth Amendment”
shall mean that certain Ninth Amendment to Credit Agreement dated as of March
27, 2009, by and among the Borrower, the Guarantors, the Parent, the
Administrative Agent and the Lenders.

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      “Ninth Amendment Effective
Date” shall mean the date upon which each of the conditions set forth in
Article II hereof have been satisfied.

      

      ARTICLE
II

      CONDITIONS
TO EFFECTIVENESS

      

      2.1           Closing
Conditions.  This Amendment
shall become effective as of the date hereof (the “Ninth Amendment Effective
Date”) upon satisfaction of the 

           following conditions (in form and
substance reasonably satisfactory to the Administrative Agent):

      

      (a)           Executed
Amendment.  The Administrative Agent shall have received a copy
of this Amendment duly executed by each of the Credit Parties, the Lenders and
the Administrative Agent.

      

      (b)           Amendment
Fee.  The Borrower shall have paid or caused to be paid an
additional amendment fee to the Administrative Agent in connection with this
Amendment for the account of each lender that shall have returned executed
signature pages to this Amendment no later than 5:00 p.m. on March 27, 2009, as
directed by the Administrative Agent, in an aggregate amount equal to $36,250 to
be allocated among the Lenders pro rata according to their Commitment
Percentage.

      

      (c)           Other.  The
Administrative Agent shall have received such other documents, agreements or
information which it may reasonably request relating to the Credit Parties and
the transactions contemplated by this Amendment and any other matters relevant
hereto or thereto, all in form and substance satisfactory to the Administrative
Agent in its sole good faith discretion.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      ARTICLE
III

      MISCELLANEOUS

      

      3.1           Amended
Terms.

      

      (a)           Amended
Terms.  All references to the Credit Agreement in each of the
Credit Documents shall hereafter mean the Credit Agreement as amended by this
Amendment.  Except as specifically amended hereby or otherwise agreed,
the Credit Agreement is hereby ratified and confirmed and shall remain in full
force and effect according to its terms.

      

      3.2           Representations
and Warranties of Credit Parties.  Each of the Credit
Parties represents and warrants as follows as of the date hereof:

      

      (a)           It
has taken all necessary action to authorize the execution, delivery and
performance of this Amendment.

      

      (b)           This
Amendment has been duly executed and delivered by such Person and constitutes
such Person’s valid and legally binding obligations, enforceable in accordance
with its terms, except as such enforceability may be subject to (i) bankruptcy,
insolvency, reorganization, fraudulent conveyance or transfer, moratorium or
similar laws affecting creditors’ rights generally and (ii) general principles
of equity (regardless of whether such enforceability is considered in a
proceeding at law or in equity).

      

      (c)           No
consent, approval, authorization or order of, or filing, registration or
qualification with, any Governmental Authority or third party is required in
connection with the execution, delivery or performance by such Person of this
Amendment or the transaction contemplated herein.

      

      (d)           The
representations and warranties set forth in Article III of the Credit Agreement
are true and correct in all material respects as of the date hereof (except for
those which expressly relate to an earlier date).

      

      3.3           Acknowledgment
of Guarantors and Parent.  The Guarantors and Parent
acknowledge and consent to all of the terms and conditions of this Amendment and
agree that this Amendment and all documents executed in connection herewith do
not operate to reduce or discharge the Guarantors’ and Parent’s obligations
under the Credit Documents.

      

      3.4           Credit
Document.  This Amendment
shall constitute a Credit Document under the terms of the Credit
Agreement.

      

      3.5           Entirety.  This
Amendment and the other Credit Documents embody the entire agreement between the
parties hereto and supersede all prior agreements and understandings, oral or
written, if any, relating to the subject matter hereof.

      

      3.6           Counterparts;
Telecopy.  This Amendment may be executed in any number of
counterparts, each of which when so executed and delivered shall be an original,
but all of which shall constitute one and the same
instrument.  Delivery of an executed counterpart to this Amendment by
telecopy shall be effective as an original and shall constitute a representation
that an original will be delivered.

      

      3.7           GOVERNING
LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

      

      3.8           Consent
to Jurisdiction; Service of Process; Waiver of Jury Trial.  The jurisdiction,
services of process and waiver of jury trial provisions set forth in Sections
9.14 and 9.17 of the Credit Agreement are hereby incorporated by reference,
mutatis
mutandis.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

            3.9           Fees.  The Borrower
agrees to pay all fees and expenses of the Administrative Agent and the Lenders
in connection with the preparation, execution and delivery of this Amendment,
including, without limitation, the fees and expenses of Reed Smith
LLP.

      

      3.10           Release.  The Credit
Parties hereby release and forever discharge Administrative Agent, the Lenders
and their agents, employees, attorneys, professionals, and representatives from
any and all claims, counterclaims, liabilities, and causes of action existing on
the date of execution of this Amendment and effective as of the Ninth Amendment
Effective Date (collectively, the “Claims”) of every
nature and description, whether known or unknown, suspected or unsuspected,
foreseen or unforeseen, actual or potential, and whether arising at law or in
equity, under the common law, state law, federal law, or any other law, in
connection with the Credit Agreement or any other Credit Document, or arising
out of or relating to Administrative Agent’s or any Lender’s administration of
or conduct in connection with the Credit Agreement or another Credit Document,
or otherwise, it being the Credit Parties’ intention to effect a general release
of all such Claims.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF the Borrower, the Guarantors, the Parent, the Lenders, and the
Administrative Agent have caused this Amendment to be duly executed on the date
first above written.

      

      

      
        	
                BORROWER:

              	
                ENTERTAINMENT
      DISTRIBUTION COMPANY,

              

      

      
        	
                 
      

              	
                LLC, a Delaware limited
      liability company

              

      

      

      By:  /s/ Michael
Klinger                           

      Name:  Michael
Klinger                                      

      Title: EVP and Chief Financial
Officer    

      

      

      
        	
                GUARANTORS:

              	
                ENTERTAINMENT DISTRIBUTION
      COMPANY (USA), LLC, a Delaware limited liability
      company

              

      

      

      

      By:  /s/ Clarke H.
Bailey                            

      Name: Clarke H.
Bailey                                           

      Title:  Chairman and Interim
CEO              

      

      

      
        	
                PARENT:

              	
                GLENAYRE ELECTRONICS,
      INC., a Colorado corporation

              

      

      

      

      By: /s/ Matthew K.
Behrent                     
Name: Matthew K.
Behrent                                     

      Title: EVP, Corporate
Development         

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      ADMINISTRATIVE
AGENT

      AND
LENDERS:                                                      WACHOVIA
BANK,

      NATIONAL
ASSOCIATION,

      as Administrative Agent and as a
Lender

      

      

      By: /s/ Elaine
Eaton                                              

      Name: Elaine
Eaton                                                          

      Title:  Senior Vice
President                                  

      

      

      

      ING CAPITAL LLC, as a
Lender

      

      By: /s/ Andrew C.
Sepe                                  

      Name: Andrew C.
Sepe                                            

      Title: Vice
President                                         

       

6

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