Document:

Amendment No. 1 to Management Services Agreement

 

Exhibit 10.20

AMENDMENT NO. 1

TO

MANAGEMENT SERVICES AGREEMENT

     This AMENDMENT NO. 1 TO MANAGEMENT SERVICES AGREEMENT (this “Amendment”) is entered
into as of March 31, 2006, by and between Sunair Services Corporation, a Florida corporation (the
“Company”) and RPC Financial Advisors, LLC, a Florida limited liability company (the
“Manager”).

     WHEREAS, the Company and the Manager entered into that certain Management Services Agreement,
dated February 8, 2005 (the “Management Services Agreement”); and

     WHEREAS, the Company and the Manager desire to modify certain provisions of the Management
Services Agreement in accordance with the terms hereof.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto hereby agree as follows:

     1. Incorporation of Recitals. The above recitals are true and correct and
are incorporated herein as if set forth in full.

     2. General Provisions. All defined terms used in this Amendment shall have
the same meaning as in the Management Services Agreement, except as otherwise noted. Except as
amended and modified by this Amendment, all of the terms, covenants, conditions, and agreements of
the Management Services Agreement shall remain in full force and effect. In the event of any
conflict between the provisions of the Management Services Agreement and the provisions of this
Amendment, this Amendment shall control.

     3. Management Fee. The Management Services Agreement is hereby amended by
deleting Section 3(a) in its entirety and substituting the following in lieu thereof:

“Management Fee. During the term of this Agreement, the Company
shall pay the Manager an annual management fee in the aggregate amount of
$1,562,500 per year (the “Annual Management Fee”), which shall be
payable in equal monthly installments (the “Monthly Management
Fee”). Subject to review and approval by the Company’s Board of
Directors, the Company shall pay the Monthly Management Fee within twenty
(20) business days following each monthly period during the term of the
Agreement.”

     4. Term. The Management Services Agreement is hereby amended by deleting
Section 5(a) in its entirety and substituting the following in lieu thereof:

“Term. This Agreement shall commence as of the Effective Date and
shall continue for an initial term of three (3) years (the “Initial
Management Term”). At the end of the Initial Management Term, this
Agreement shall be automatically renewed for successive one (1) year terms,
unless terminated by either party upon thirty (30) days notice.”

 

 

     5. Governing Law. This Amendment shall be governed by and construed in
accordance with the laws of the State of Florida.

     6. Counterparts. This Amendment may be executed in any number of
counterparts, each of which shall be an original but all of which taken together shall constitute
one and the same instrument.

     IN WITNESS WHEREOF, the parties to this Amendment have set their hands and seals as of the day
and year first above written.

	 	 	 	 	 
	 	SUNAIR SERVICES CORPORATION

 	 
	 	By:  	/s/ John J. Hayes
 	 
	 	 	Name:  	John J. Hayes 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	RPC FINANCIAL ADVISORS, LLC

 	 
	 	By:  	/s/ Richard C. Rochon
 	 
	 	 	Name:  	Richard C. Rochon 	 
	 	 	Title:  	ManagerEX-10.1

 

Exhibit 10.1

SETTLEMENT AGREEMENT AND GENERAL RELEASE

     This Settlement Agreement and General Release (the “Agreement”) is entered into as of this
16th day of February, 2006 (the “Effective Date”), between Sprint
Communications Company L.P., a Delaware limited partnership, having offices at 6500 Sprint Parkway,
Overland Park, Kansas 66251, on behalf of itself and all parent, subsidiary and affiliated
corporations (“Sprint”), excluding the business of the Sprint local telecommunications division
operations as generally described in the Form 10 filed January 23, 2006, with the United States
Securities and Exchange Commission by LTD Holding Company, which includes, but is not limited to
the companies listed in the attached Exhibit “A,” each a corporation with its principal place of
business located at 5454 W. 110th Street, Overland Park, Kansas 66211 and operating as an ILEC (as
defined in 47 CFR § 6l.26(a)(2)) (“LTD Local”) and US LEC Corp., and all of its
affiliates or subsidiaries, including, but not limited to US LEC of Alabama Inc., US LEC of Florida
Inc., US LEC of Georgia Inc., US LEC of North Carolina Inc., US LEC of Tennessee Inc., US LEC of
Virginia L.L.C., US LEC of Maryland Inc., US LEC of Pennsylvania Inc., US LEC of South Carolina
Inc., and US LEC Communications Inc. (collectively “US LEC”) (Sprint and US LEC together, the
“Parties”).

     WHEREAS, disputes have arisen among the Parties regarding US LEC’s charges to Sprint for
certain Switched Access Services in connection with 8YY Traffic sent by US LEC to Sprint for
delivery to Sprint’s 8YY customers; and

     WHEREAS, the Parties desire to enter into this Agreement to resolve all disputes between
Sprint and US LEC relating to US LEC’s Switched Access Services billed for 8YY Traffic sent by US
LEC to Sprint, without any admission of wrongdoing or liability on the part of either Party; and

 

 

     WHEREAS, the Parties desire to avoid future billing disputes and for that purpose an agreement
governing the conduct of fixture business regarding access services (“Access Services Agreement”)
is being executed contemporaneously with this Agreement.

     NOW, THEREFORE, in consideration of the mutual benefit of the exchanges detailed below, the
Parties agree as follows:

     1. Payments

     a. Within ten (10) business days of the execution of this Agreement, Sprint shall pay to US
LEC the total sum of [***] by wire transfer which shall be deemed full payment in settlement of all
invoices sent by US LEC to Sprint for Switched Access Service for CIC 333 for all billed 8YY usage,
and for all other outstanding balances arising from US LEC invoices disputed by Sprint, [***].
Payment will be made by wire transfer to:

     [***]

     b. For all US LEC invoices for Switched Access Service [***], Sprint shall make payment to US
LEC by a mutually agreed electronic means for all amounts not subject to a good faith dispute under
the terms of the Access Services Agreement referenced in the recitals to this Agreement and as
required by [***]. In each instance of a dispute, and in accordance with the terms of [***] Sprint
shall deliver to US LEC a written statement of the amount in dispute, all reasons for the dispute,
and provide to US LEC any documentation in Sprint’s possession supporting Sprint’s basis to dispute
the invoice.

     2. Releases

     a. Except as set forth in this Agreement, Sprint releases US LEC, and its and their directors,
officers, shareholders, trustees, employees, representatives, agents, independent

 

[***]
  These portions of this exhibit have been omitted and filed separately with the Commission
pursuant to a request for confidential treatment.

2

 

contractors, and attorneys from any and all claims arising from the billing and payment for
Switched Access Services by US LEC to Sprint, including but not limited to the billing of Switched
Access Service for 8YY Traffic, at any time up to and including [***], whether such claim is known
or unknown, accrued or inchoate.

     b. Except as set forth in this Agreement, upon receipt of the payment required by Paragraph
1.a hereof, US LEC releases Sprint and its and their directors, officers, shareholders, trustees,
employees, representatives, agents, independent contractors, and attorneys from any and all claims
arising out of the non-payment or dispute of invoices that have been issued by US LEC to Sprint for
Switched Access Services, including 8YY Traffic, at any time up to and including [***], whether
such claim is known or unknown, accrued or inchoate.

     3. Definitions

     For purposes of this Agreement the following definitions shall control:

     a. “Switched Access Service” means a service providing access to the switched
- network of a telecommunications carrier for the purpose of originating or terminating
inter-exchange interstate and intrastate telecommunications. Switched Access Service does not
include local switched service, but does include 8YY Traffic sent by US LEC to Sprint.

     b. “ILEC” means an incumbent local exchange carrier (as that term is defined in 47 CFR §
61.26(a)(2)).

     c. “Proprietary Information” means information that is marked or otherwise specifically
identified in writing as proprietary, confidential or trade secret. Proprietary Information
includes, but is not limited to, the terms of this Agreement, and the discussions, correspondence
and negotiations that led to the Agreement,

 

[***]
 These portions of this exhibit have been omitted and filed separately with the Commission
pursuant to a request for confidential treatment.

3

 

     d. “8YY Traffic” and “8YY Calls” means interstate and intrastate calls, including Wireless 8YY
Calls, intended to terminate to a telephone number for which there is no charge to the calling
party by an interexchange carrier for making and completing the calls.

     e. “Wireless 8YY Traffic” or “Wireless 8YY Calls” means interstate and intrastate 8YY calls
from CMRS Providers’ subscribers.

     f. “Government Agency” means a federal or state board, agency, authority, commission, or other
entity with jurisdiction over the traffic which is the subject of this Agreement, including but not
limited to the Federal Communications Commission (“FCC”).

     g. “Act” means the Communications Act of 1934, as amended by the Telecommunications Act of
1996.

     h. “CMRS Provider” means an entity that provides mobile service, as defined in Section 153(27)
of the Act, for profit (i.e. with the intent of receiving compensation or monetary gain), is an
interconnected service; and is available to the public, or to such classes of eligible users as to
be effectively available to a substantial portion of the public.

     4. Fees and Expenses

     Each Party will pay its own attorneys’ fees and expenses.

     5. Successors and Assigns

     This Agreement shall be binding upon the Parties’ successors and assigns.

     6. Confidential Nature of Settlement

     a. The Parties agree to hold in the strictest confidence the substance of any and all
settlement negotiations, documents exchanged during settlement discussions, or information learned
or acquired during settlement discussions, as well as the terms of any final agreements that may be
reached as a result of settlement discussions (collectively, “Settlement Information”), and not to
reveal any such Settlement Information to any person except as

4

 

provided herein.

     b. Each party will hold in confidence Proprietary Information disclosed by the other party
except if it (a) was previously known by the receiving party free from any obligation to keep it
confidential, (b) is independently developed by the receiving party, (c) becomes publicly
available, and/or (d) is disclosed to the receiving party by a third party without breach of any
confidentiality obligation. Proprietary Information may be disclosed to an entity or person that
controls a party (including such controlling party’s directors, officers and shareholders), and to
a party’s legal counsel, auditors and investment advisers, provided that such representatives are
bound by appropriate confidentiality obligations that by their terms include the information
considered Proprietary Information hereunder. Proprietary Information may also be used in any
proceeding between the Parties to establish rights and obligations under this Agreement.

     c. If either Party is required to disclose Proprietary Information in judicial or
administrative proceedings, such Party will, unless prohibited by applicable law or the terms of
the applicable order, (i) give the other Party prompt written notice and the opportunity, in
advance of such disclosure, to seek protective arrangements and will cooperate with the other Party
(at such other Party’s expense) in that regard, and (ii) disclose only that Proprietary Information
required to be disclosed.

     d. US LEC and Sprint may each issue a press release regarding the settlement and this
Agreement, which may include statements as to financial impact but not the specific financial
terms, or as may be required by the securities laws as their respective securities counsel may
advise.

5

 

     7. Authority.

     a. US LEC Corp. has full corporate and other authority to execute and deliver this Agreement,
including but not limited to the release, to perform its obligations hereunder, and to consummate
the transactions contemplated hereby on behalf of US LEC.

     b. US LEC has duly executed and delivered this Agreement, and this Agreement constitutes (when
executed and delivered) the legal, valid and binding obligation of US LEC, and is enforceable
against it in accordance with its terms, except that such enforcement (i) may be limited by
bankruptcy, insolvency, moratorium or similar laws affecting creditors’ rights generally, and (ii)
is subject to the availability of equitable remedies, as determined in the discretion of the court
before which such a proceeding may be brought.

     c. Sprint has full corporate and other authority to execute and deliver this Agreement,
including but not limited to the releases, to perform its obligations hereunder, and to consummate
the transactions contemplated hereby.

     d. Sprint has duly executed and delivered this Agreement, and this Agreement constitutes (when
executed and delivered) the legal, valid and binding obligation of Sprint, and is enforceable
against it in accordance with its terms, except that such enforcement (i) may be limited by
bankruptcy, insolvency, moratorium or similar laws affecting creditors’ rights generally, and (ii)
is subject to the availability of equitable remedies, as determined in the discretion of the court
before which such a proceeding may be brought.

     8. No Third Party Beneficiaries

     This Agreement does not provide and is not intended to provide third parties with any remedy,
claim, liability, reimbursement, cause of action, or other privilege.

6

 

     9. Entire Agreement

     This Agreement and the Access Services Agreement referenced in the recitals to this Agreement
contains the entire understanding between Sprint and US LEC with respect to the resolution of the
matters addressed in this Agreement. Nothing contained in this Agreement shall have the effect of
impairing US LEC’s rights or Sprint’s rights under the US LEC tariffs or under applicable law,
except as specifically set forth in this Agreement or in the Access Services Agreement.

     10. Preparation of Document and Effectiveness

     Each Party has participated in the creation of this Agreement. No legal principle
interpreting the Agreement against the drafter will apply. Each Party in entering into this
Agreement has completely read and fully understood the terms and conditions of the Agreement. This
Agreement shall not become effective unless and until the Access Services Agreement referenced in
the recitals to this Agreement is fully executed. If the Access Services Agreement is not executed
within five (5) business days of the date of execution of this Agreement, or if the payment
contemplated by paragraph 1.a. of this Agreement is not received, then this Agreement shall become
void.

     11. No Admission

     Neither any provision of this Agreement taken individually nor the Agreement taken as a whole
is to be construed as an admission of liability by any of US LEC, Sprint, or their past and current
directors, stockholders, officers, employees, representatives, agents, assignors or assignees.

7

 

     12. Counterparts

     The parties agree that this Agreement may be executed in a number of counterparts, each of
which shall be considered an original instrument, but all of which together shall be considered but
one and the same instrument. This Agreement shall be binding on all signatories hereto, even if
executed in any number of counterparts,

     13. Notices

     All notices required or permitted under this Agreement and all requests for approvals,
consents, and waivers must be in writing and must be delivered by a method providing for proof of
delivery (including express courier if receipt is acknowledged by the recipient) and will be deemed
delivered when actually received. Fax and e-mail delivery methods do not constitute written
notice. Any notice or request will be delivered to the addresses specified below.

     If to US LEC:

Thomas Gooley

Vice President-Treasurer

US LEC Corp.

6801 Morrison Boulevard

Morrocroft III

Charlotte, NC 28211

Fax number: 704-602-1133

e-mail: tgooley@uslec.com

     with a copy to

General Counsel

US LEC Corp.

6801 Morrison Boulevard

Morrocroft III

Charlotte, NC 28211

Fax number: 704-319-3007

If to Sprint:

Director, Access Verification

6500 Sprint Parkway

KSOPHL0402-4A153

Overland Park, KS 66251

8

 

     with a copy to:

David Nall

Director, Government Affairs — Wireline

401 9th Street N.W.

Suite 400

DCWAS0101-462

Washington, DC 20004-2133

     and

Joseph P. Cowin

Senior Counsel

6450 Sprint Parkway

KSOPHN02I4 — 2A62l

Overland Park, KS 66251

9

 

     14. Governing Law

     a. This Settlement Agreement will be governed by the Federal Communications Act, 47 USC § 151
et seq., rulings of the FCC and by the laws of the state of North Carolina, without regard to its
choice of law provisions.

	 	 	 	 	 
	Executed on behalf of	 	US LEC CORP., US LEC OF NORTH CAROLINA INC., US
LEC OF GEORGIA INC., US LEC OF ALABAMA INC., US
LEC OF TENNESSEE INC., US LEC OF SOUTH CAROLINA
INC., US LEC OF PENNSYLVANIA INC., US LEC OF
VIRGINIA L.L.C., US LEC OF MARYLAND INC., US LEC
OF FLORIDA INC., and US LEC COMMUNICATIONS INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ J.L. Patrick
	 

	 	 	 	 
	 

	 	Print Name	 	J.L. Patrick
	 

	 	 	 	 
	 

	 	Title:	 	EVP/CFO
	 

	 	 	 	 
	 

	 	Date:	 	2/16/06
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	SPRINT COMMUNICATIONS COMPANY, L.P.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kathryn B. Lawler
	 

	 	 	 	 
	 

	 	Print Name:	 	Kathryn B. Lawler
	 

	 	 	 	 
	 

	 	Title:	 	Director, Access Verification
	 

	 	 	 	 
	 

	 	Date:	 	2/16/06
	 

	 	 	 	 

10

 

EXHIBIT A

Sprint Local Telephone Operating Companies

Sprint – Florida, Incorporated

Carolina Telephone and Telegraph Company

United Telephone — Southeast, Inc. (Operates in Tennessee and Virginia)

United Telephone Company of the Carolinas

Central Telephone Company

Central Telephone Company of Virginia

The United Telephone Company of Pennsylvania

United Telephone Company of New Jersey, Inc.

United Telephone Company of Ohio

United Telephone Company of Indiana, Inc.

United Telephone Company of Texas, Inc.

Central Telephone Company of Texas

Sprint Missouri, Inc.

United Telephone Company of Kansas

United Telephone Company of South central Kansas

United Telephone Company of Eastern Kansas

United Telephone Company of Southeastern Kansas

Sprint Minnesota, Inc.

United Telephone Company of the West

United Telephone Company of the Northwest

Sprint Local CICs billed by US LEC

[***]

 

[***]
 These portions of this exhibit have been omitted and filed separately with the Commission
pursuant to a request for confidential treatment.

11

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