Document:

Waiver and Third Amendment to Credit Agreement

 Exhibit 10.3 
 WAIVER AND THIRD AMENDMENT TO CREDIT AGREEMENT 
 This WAIVER AND THIRD AMENDMENT TO CREDIT
AGREEMENT (this “Amendment”) is made as of December 29, 2006, among DEVCON SECURITY HOLDINGS, INC., a Florida corporation (“Holdings”), DEVCON SECURITY SERVICES CORP., a Delaware Corporation
(“Services”), MUTUAL CENTRAL ALARM SERVICES INC., a New York corporation (“Mutual”), STAT-LAND BURGLAR ALARM SYSTEMS & DEVICES INC., a New York corporation (“Stat-Land”, together with Holdings,
Services, and Mutual, are hereinafter referred to individually as a “Borrower” and collectively as “Borrowers”), and CAPITALSOURCE FINANCE LLC, as Agent (in such capacity, the “Agent”), for the Lenders parties
thereto and as a Lender. All capitalized terms used but not defined herein shall have the respective meanings ascribed to such terms in the Credit Agreement described below. 
 W I T N E S S E T H: 
 A. Borrowers, Agent and Lenders have entered into that certain
Credit Agreement dated as of November 10, 2005, as modified by that certain First Amendment to Credit Agreement, Master Reaffirmation and Joinder to Loan Documents, dated March 6, 2006 and that certain Second Amendment to Credit Agreement
dated as of April 11, 2006 (as amended hereby and as may from time to time be further amended, restated, supplemented or otherwise modified, the “Credit Agreement”), pursuant to which Agent and Lenders made Loans and other financial
accommodations to Borrowers, subject to the terms and conditions set forth in the Credit Agreement, and have entered into the other Loan Documents. 
 B. Borrowers are not in compliance with the provisions of the Credit Agreement as a result of (i) their failure to maintain a Qualified Retail RMR Leverage Ratio of not greater than 26.0 to 1.00 for the periods ended October 31,
2006 and November 30, 2006, (ii) their failure to maintain an Attrition Ratio of not greater than 11.0% for the period ended October 31, 2006, (iii) their failure to maintain a Fixed Charge Coverage Ratio of not less than 1.25 to
1.0 for the period ended October 31, 2006, and (iv) their failure to maintain Capital Expenditures for the Fiscal Year ended December 31, 2006 of not more than $1,500,000, all as required by Sections 9.1, 9.2, 9.3 and 9.4 of the
Credit Agreement (collectively, the “Noncompliance Matters”). 
 C. Borrowers have requested that Agent and Lenders waive the
Noncompliance Matters and amend the Credit Agreement as set forth herein, and Agent and the Lenders are, subject to the terms hereof, willing to so waive such Noncompliance Matters and amend the Credit Agreement. 
 NOW, THEREFORE, in consideration of the premises set forth herein and for other good and valuable consideration, the receipt and sufficiency of which
hereby are acknowledged, each of the undersigned hereby agrees as follows: 
  

	1.	Amendments to Credit Agreement. The Credit Agreement hereby is amended as follows: 

	 	(a)	Section 9.1 of the Credit Agreement is hereby deleted in its entirety and the following is inserted in substitution thereof: 

 9.1 Maximum Leverage Ratio. 
 Holdings and its Subsidiaries shall maintain at all times, to be measured on a consolidated basis at the end of each Fiscal Month, a Qualifying Retail RMR Leverage Ratio of not greater than the ratio set forth below
for the corresponding Fiscal Month: 
  

			
	 Fiscal Month Ended
	  	Maximum Leverage Ratio
	 December 31, 2006
	  	26.6 to 1.0
	 January 31, 2007
	  	26.4 to 1.0
	 February 28, 2007
	  	26.2 to 1.0
	 March 31, 2007 and each Fiscal Month thereafter
	  	26.0 to 1.0

  

	 	(b)	The first full sentence of Section 9.2 of the Credit Agreement is hereby deleted in its entirety and the following is inserted in substitution therefore:

 9.2 Minimum Fixed Charge Coverage Ratio. Holdings and its Subsidiaries shall maintain at all times, to
be measured on a consolidated basis at the end of each Fiscal Month, a Fixed Charge Coverage Ratio for the six month period then ended of not less than the ratio set forth below for the corresponding Fiscal Month: 
  

			
	 Fiscal Month Ended
	  	 Minimum Fixed Charge
 Coverage Ratio

	 December 31, 2006
	  	1.15 to 1.0
	 January 31, 2007
	  	1.15 to 1.0
	 February 28, 2007
	  	1.15 to 1.0
	 March 31, 2007 and each Fiscal Month thereafter
	  	1.25 to 1.0

 Waiver and Third Amendment to Credit Agreement 
  

 2 

	 	(c)	Section 9.3 of the Credit Agreement is hereby deleted in its entirety and the following is inserted in substitution therefore: 

 9.3 Maximum Capital Expenditures. Holdings and its Subsidiaries shall not incur Capital Expenditures in the aggregate (other than
Capital Expenditures for Inventory installed pursuant to Alarm Contracts) in excess of (i) $1,750,000 in the Fiscal Year ended December 31, 2006, and (ii) $1,500,000 in each Fiscal Year thereafter. 
  

	2.	Waiver. Effective as of the date hereof, upon satisfaction of the conditions set forth in Section 3 of this Agreement, the Agent and the Lenders waive the
Noncompliance Matters to the extent such Noncompliance Matters constitute a Default or an Event of Default under the Credit Agreement or the other Loan Documents. Provided that each of the Borrowers complies with all of the requirements contained in
this Amendment and the Loan Documents, the Agent and Lenders shall forbear from enforcing their respective remedies with respect to any Default or Event of Default deemed to have occurred as a result of the Noncompliance Matters. If at any time any
of the Borrowers fails to comply with any of the requirements set forth herein or if any additional Default or Event of Default occurs under this Amendment, the Credit Agreement or the other Loan Documents, Agent and Lenders may immediately
commence, proceed or otherwise continue with any or all rights and remedies available under the Loan Documents, under applicable law or otherwise (collectively, “Lenders’ Remedies”) without demand or notice to any Borrower, but
as among Agent and Lenders, subject to the provisions of the Credit Agreement with respect to exercising remedies. Lenders and Agent are entering into this Amendment as an accommodation to the Borrowers and the Borrowers remain bound to perform
their respective obligations under the Loan Documents. 

  

	3.	Conditions. The effectiveness of this Amendment is subject to the following conditions precedent: 

  

	 	(a)	Delivery of Documents. This Amendment shall have been delivered to Agent, duly authorized and executed and in form and substance reasonably satisfactory to Agent.

  

	 	(b)	Waiver Fee and Expenses. Agent shall have received $20,000 as a waiver and amendment fee and shall have received payment of any other fees and expenses payable to it by
Borrowers or any other Person in connection herewith, including, without limitation, Agent’s attorneys’ fees and expenses in connection with the negotiation, documentation and execution of this Amendment. 

 Waiver and Third Amendment to Credit Agreement 
  

 3 

	 	(c)	No Default or Event of Default. Except as waived hereby, no Default or Event of Default under the Credit Agreement, as amended hereby, shall have occurred and be continuing.

  

	4.	Representations and Warranties. 

  

	 	(a)	Each Borrower hereby confirms to the Agent and Lenders that the representations and warranties set forth in the Credit Agreement and each of the other Loan Documents, as amended by
this Amendment, made by such Borrower are true and correct in all material respects as of the date hereof and shall be deemed to be remade as of the date hereof (except to the extent such representations and warranties (x) expressly refer to an
earlier date, in which case they shall be true and correct as of such earlier date, or (y) is qualified by materiality or has a Material Adverse Effect qualifier (in which case such representation or warranty shall be true and correct in all
respects)). 

  

	 	(b)	Each Borrower hereby represents and warrants to the Agent and Lenders that: (i) it has full power and authority to execute and deliver this Amendment and to perform its
obligations hereunder; (ii) upon the execution and delivery hereof, this Amendment shall be valid, binding and enforceable upon it in accordance with its terms (except as limited by applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights and laws relating to the availability of equitable remedies); (iii) the execution and delivery of this Amendment do not and shall not contravene, conflict
with, violate or constitute a default under (A) the articles or certificate of incorporation, by-laws or other constituent documents of Borrower, if applicable, or (B) any applicable law, rule, regulation, judgment, decree or order or any
material agreement, indenture or instrument to which it is a party or is bound or which is binding upon or applicable to all or any portion of it property; and (iv) no Default or Event of Default exists. 

  

	5.	Miscellaneous. 

  

	 	(a)	No Further Amendments; Ratification of Liability; Effect. Each of the Loan Documents shall remain in full force and effect in accordance with their respective terms. Each
Borrower hereby ratifies and confirms its liabilities, obligations and agreements under the Loan Documents, as amended hereunder, and acknowledges that (i) it has no defenses, claims or set-offs to the enforcement by Agent or any Lender of such
liabilities, obligations and agreements, (ii) Agent and each Lender have fully performed all of their respective obligations to such Persons which Agent or such Lender may have had or has on and as of the date hereof and (iii) by
Agent’s execution hereof, neither Agent nor any Lender waives, diminishes or limits any term, condition or covenant contained in any of the Loan Documents. 

 Waiver and Third Amendment to Credit Agreement 
  

 4 

 Except as expressly set forth herein, nothing contained in this Amendment shall be deemed to be an
amendment or modification of any provision of any Loan Documents or any right, power or remedy of Agent or Lenders, nor constitute a waiver of any provision of any Loan Document, or any other document, instrument and/or agreement executed or
delivered in connection therewith or of any Default or Event of Default under any of the foregoing, in each case whether arising before or after the date hereof or as a result of performance thereunder. This Amendment shall not preclude the future
exercise of any right, remedy, power or privilege available to the Agent or Lenders, whether under the Loan Documents, at law or otherwise. 
  

	 	(b)	Successors and Assigns. This Amendment shall be binding upon each Borrower and its respective successors and assigns and shall inure to the benefit of Agent and each Lender
and their respective successors and assigns. 

  

	 	(c)	Release. Notwithstanding any other provision of any Loan Document, each Borrower voluntarily, knowingly, unconditionally and irrevocably, with specific and express intent,
for and on behalf of itself (the “Releasing Party”), hereby fully and completely releases and forever discharges each Indemnified Person and any other Person or insurer which may be responsible or liable for the acts or omissions of
any of the Indemnified Persons, or who may be liable for the injury or damage resulting therefrom (collectively, with the Indemnified Persons, the “Released Parties”), of and from any and all actions, causes of action, damages,
claims, obligations, liabilities, costs, expenses and demands of any kind whatsoever, at law or in equity, matured or unmatured, vested or contingent, that the Releasing Party has against any of the Released Parties as of the date of this Amendment
(“Losses”), other than Losses resulting from the gross negligence or willful misconduct of the Released Party. Each Borrower acknowledges that the foregoing release is a material inducement to (a) Lender’s decision to
enter into this Amendment, (b) Lender’s decision to extend to Borrowers the financial accommodations hereunder and has been relied upon by each Lender in agreeing to make the Advances and (c) CapitalSource Finance LLC’s decision
to serve as Agent. 

  

	 	(d)	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
CHOICE OF LAW PROVISIONS SET FORTH IN THE CREDIT AGREEMENT AND SHALL BE SUBJECT TO THE WAIVER OF JURY TRIAL AND NOTICE PROVISIONS OF THE CREDIT AGREEMENT. 

 Waiver and Third Amendment to Credit Agreement 
  

 5 

	 	(e)	Severability. Wherever possible, each provision of this Amendment shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Amendment shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this
Amendment. 

  

	 	(f)	Merger. This Amendment represents the final agreement of each Borrower with respect to the matters contained herein and may not be contradicted by evidence of prior or
contemporaneous agreements, or prior or subsequent oral agreements, between any of Borrowers on the one hand and Agent and the Lenders on the other hand. 

  

	 	(g)	Execution in Counterparts. This Amendment may be executed in any number of counterparts, including by facsimile transmission, and by different parties hereto 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. 

 [Signature Page Follows] 
 Waiver and Third Amendment to Credit Agreement 
  

 6 

 IN WITNESS WHEREOF, this Amendment has been duly executed by each of the undersigned as of the day
and year first set forth above. 
  

			
	 DEVCON SECURITY HOLDINGS, INC.,
 a
Florida corporation

		
	By:	 	 /s/ Stephen J. Ruzika

	Name:	 	Stephen J. Ruzika
	Title:	 	President
	
	 DEVCON SECURITY SERVICES CORP.,
 a
Delaware corporation

		
	By:	 	 /s/ Stephen J. Ruzika

	Name:	 	Stephen J. Ruzika
	Title:	 	CEO
	
	 MUTUAL CENTRAL ALARM SERVICES INC.,
 a
New York corporation

		
	By:	 	 /s/ Stephen J. Ruzika

	Name:	 	Stephen J. Ruzika
	Title:	 	Executive Vice President
	
	 STAT-LAND BURGLAR ALARM SYSTEMS
 & DEVICES INC., a New York corporation

		
	By:	 	 /s/ Stephen J. Ruzika

	Name:	 	Stephen J. Ruzika
	Title:	 	Executive Vice President
	
	 CAPITALSOURCE FINANCE LLC,
 as Agent
for the Lenders

		
	By:	 	 /s/ William L. Polk

	Name:	 	William L. Polk
	Title:	 	Managing Director

 Waiver and Third Amendment to Credit Agreement 
  

 7Form of Warrant to Purchase Common Stock of Global Signal Inc.

 Exhibit 4.6 
  

			
	Warrant No.	 	NUMBER OF WARRANT(S) ______________

 EXERCISABLE DURING THE PERIOD COMMENCING NOVEMBER 2, 2002 
 AND TERMINATING AT 5:00 P.M. NOVEMBER 2, 2007 
 EXCEPT AS PROVIDED BELOW 
 CUSIP 37944Q111 
 WARRANT TO PURCHASE COMMON STOCK OF 
 GLOBAL SIGNAL INC. 
 This Certifies that 
  

			
	or registered assigns, is the owner of the number of WARRANTS set forth above, each of which represents the right, at any time after November 2, 2002 and on or before 5:00 p.m., New York City
time, on November 2, 2007, to purchase from Global Signal Inc., a Delaware corporation (the “Company”), at the price of $17.06 (the “Exercise Price”), two shares of Common Stock, $.01 par value, of the Company as such stock was
constituted as of November 1, 2002, subject to adjustment as provided in the Warrant Agreement hereinafter referred to, upon surrender hereof, with the subscription form on the reverse hereof duly executed, by hand or by mail to American Stock
Transfer & Trust Company, 59 Maiden Lane, New York, New York 10038, or to any successor thereto, as the warrant agent under the Warrant Agreement, at the office of such successor maintained for such purpose (any such warrant agent being herein
called the “Warrant Agent”) (or, if such exercise shall be in connection with an underwritten Public Offering of shares of such Common Stock (as such term and other capitalized terms used herein are defined in the Warrant Agreement)
subject to the Warrant Agreement, at the location at which the Company shall have agreed to deliver such securities), and simultaneous payment in full (by certified or official bank or bank cashier’s check payable to the order of the Company)
of the Exercise Price in respect of each	  	 Warrant represented by this Warrant Certificate that is so exercised, all subject to the terms and conditions hereof and of the Warrant Agreement.
Upon any partial exercise of the Warrants represented by this Warrant Certificate, there shall be issued to the holder hereof a new Warrant Certificate representing the Warrants that were not exercised. No fractional shares may be issued upon the
exercise of rights to purchase hereunder, and as to any fraction of a share otherwise issuable, the Company will make a cash adjustment in lieu of such issuance, as provided in the Warrant Agreement.
  
 This Warrant Certificate is issued under and in accordance with a Warrant Agreement, dated as of
February 13, 2006 (the “Warrant Agreement”), between the Company and American Stock Transfer & Trust Company, as Warrant Agent, and is subject to the terms and provisions contained therein, all of which terms and provisions the holder
of this Warrant Certificate consents to by acceptance hereof. Copies of the Warrant Agreement are on file at the above mentioned office of the Warrant Agent and may be obtained by writing to the Warrant Agent.

 REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS WARRANT SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER
PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. 
 Dated: 
  

					
			
	

	 		 	

	President	 		 	Secretary

  

									
	COUNTERSIGNED AND REGISTERED:	 		 	
	AMERICAN STOCK TRANSFER & TRUST COMPANY	 		 	
	(New York, N.Y.)	 		 	 TRANSFER AGENT
 AND
REGISTRAR

					
	By:	 	

	 		 		 	
		 		 		 	AUTHORIZED SIGNATURE

 GLOBAL SIGNAL, INC. 
 The transfer of this Warrant Certificate and all rights hereunder is registrable by the registered holder hereof, in whole or part, on the register of the Company upon surrender of this Warrant Certificate at the
office or agency of the Company or the office of the Warrant Agent maintained for such purpose at American Stock Transfer & Trust Company, 59 Maiden Lane, New York, New York 10038, duly endorsed or accompanied by a written instrument of
transfer duly executed and in form satisfactory to the Company and the Warrant Agent, by the registered holder hereof or his attorney duly authorized in writing and upon payment of any necessary transfer tax or other governmental charge imposed upon
such transfer or registration thereof. Upon any partial transfer the Company will cause to be delivered to such holder a new Warrant Certificate or Certificates with respect to any portion not so transferred. 
 This Warrant Certificate may be exchanged at the office or agency of the Company or the office of the Warrant Agent maintained for such purpose at American Stock
Transfer & Trust Company, 59 Maiden Lane, New York, New York 10038, for Warrant Certificates representing the same aggregate number of Warrants, each new Warrant Certificate to represent such number of Warrants as the holder hereof shall
designate at the time of such exchange. 
 Prior to the exercise of the Warrants represented hereby, the holder of this Warrant Certificate, as such, shall
not be entitled to any rights of a stockholder of the Company, including, but not limited to, the right to vote, to receive dividends or other distributions, to exercise any preemptive right or, except as provided in the Warrant Agreement, to
receive any notice of meetings of stockholders, and shall not be entitled to receive notice of any proceedings of the Company except as provided in the Warrant Agreement. Nothing contained herein shall be construed as imposing any liabilities upon
the holder of this Warrant Certificate to purchase any securities or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors or stockholders of the Company or otherwise. 
 This Warrant Certificate shall be void and all rights represented hereby shall cease unless exercised on or before the close of business on November 2, 2007. This
Warrant Certificate shall not be valid for any purpose until it shall have been manually countersigned by an authorized signatory of the Warrant Agent. Witness the facsimile seal of the Company and the signature of its duly authorized officer.

  

													
	SUBSCRIPTION FORM	  		  	FORM OF ASSIGNMENT
	(to be executed only upon exercise of warrant)	  		  	
	 TO GLOBAL SIGNAL, INC.
 American Stock
Transfer & Trust Company., as Warrant Agent
  
	  		  	FOR VALUE RECEIVED, the undersigned registered holder of the within Warrant Certificate hereby sells, assigns, and transfers unto the Assignee named below all of the
rights of the undersigned under the within Warrant Certificate, with respect to the number of warrants set forth below:
	The undersigned (a) irrevocably exercises the Warrants represented by the within Warrant Certificate, (b) purchases two shares of Common Stock of Global Signal
Inc. (before giving effect to the adjustments provided in the Warrant Agreement referred to in the within Warrant Certificate) for each Warrant so exercised and herewith makes payment in full of the purchase price of $17.06 in respect of each
Warrant so exercised as provided in the Warrant Agreement (such payment being by certified or official bank or bank cashier’s check payable to the order of Global Signal Inc.), all on the terms and conditions specified in the within Warrant
Certificate and the Warrant Agreement, (iii) surrenders this Warrant Certificate and all right, title, and interest therein to Global Signal Inc., and (iv) directs that the securities or other property deliverable upon the exercise of such
Warrants be registered or placed in the name and at the address specified below and delivered thereto.	  		  
	  		  		  		  	
	  		  	Name Of Assignee	  	Address	  	No. Of Warrants
	  		  		  		  	
	  		  		  		  	
	  		  		  		  	
	  		  	 Please insert social security or other
 identifying number of Assignee
	  	
	  		  	  	  		  	
	  		  	and does hereby irrevocably constitute and appoint  __________________ attorney to make such transfer on the books of Global Signal Inc. maintained for that purpose, with full
power of substitution in the premises.
							
		 		  	  	  		  	Dated: _______________, ____	  		  	
	Dated:	 		  	(Owner)*	  		  		  		  	  
							
		 		  	  	  		  		  		  	
		 		  	(Signature Of Authorized Representative)	  		  	Signature Of Authorized Representative 	  	  
							
		 		  	  	  		  		  		  	  
		 		  	(Street Address)	  		  		  		  	(Street Address)
		 		  		  		  		  		  	  
		 		  	  	  		  		  		  	(City) (State) (Zip Code)
		 		  	(City) (State) (Zip Code)	  		  	Signature Guaranteed _______________**
	Securities or property to be issued and delivered to	  	  	  		  	  
 *         The signature must correspond with the name as written upon the face of the within Warrant Certificate in every particular, without alteration or enlargement or any change
whatsoever.
  
 **       The signature must be guaranteed by a securities transfer agents medallion program (“stamp”) participant or an institution receiving prior approval from the Warrant
Agent.

		 		  	Signature Guaranteed**	  		  
	 Please insert social security
 or other
identifying number:                                 
	  		  
	  
 Name                                      
                               
	  		  
	  
 Street
Address                                       
                  
	  		  
	  
 City, State, and Zip Code

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]