| The Mezzanine Loan amendment (the "Amendment") (i) terminates the Company's obligation to make certain mandatory principal prepayments with net proceeds from asset dispositions or other capital transactions on or prior to October 31, 2002 and November 1, 2002, respectively, (ii) requires on or prior to December 31, 2002 mandatory principal prepayments with net proceeds from asset dispositions or other capital transactions in an aggregate amount of not less than $12,000,000, and (iii) increases the required monthly principal amortization payment payable on January 1, 2003 from $0.8 million to $2.333 million. Additionally, the Amendment (i) increased the interest rate from the current floating rate of 14.75% (the greater of (a) LIBOR plus 9.50% or (b) 14.75%) to a fixed rate of 19.75% and (ii) required an amendment fee equal to 2% of the outstanding principal balance of the Mezzanine Loan as of November 1, 2002, half of which was paid at the time of the modification and half of which will be payable on December 31, 2002 provided the Mezzanine Loan has not been repaid in full. If the Mezzanine Loan is repaid in full by December 31, 2002, the payment of the second half of the amendment fee will be waived. |
