Document:

<PAGE>
                                                                    Exhibit 10.2

                             [Portions herein identified by ** have been omitted
                            pursuant to a request for confidential treatment and
                                  have been filed separately with the Commission
                               pursuant to Rule 24b-2 of the Securities Exchange
                                                        Act of 1934, as amended]

As of August 18, 2004

WPT Enterprises, Inc.
Attn:  Steve Lipscomb
1041 North Formosa Avenue
Suite 99
West Hollywood, CA  90047

        RE:    "WORLD POKER TOUR" - AMENDMENT NUMBER 5 TO SEASON 2 AGREEMENT
               (CID#1002911)
               (CONTRACT #: WPT003/ACQ/TRV/PL/SC/CG)

Dear Ladies and Gentlemen:

        Reference is made to (i) that certain master agreement (the "Master
Agreement") dated as of August 22, 2003 between WPT ENTERPRISES, INC. f/k/a
WORLD POKER TOUR, L.L.C. ("Producer") and THE TRAVEL CHANNEL, L.L.C. ("TRV");
(ii) that certain agreement attached to the Master Agreement (the "Attachment"),
dated as of August 22, 2003 between Producer and TRV in connection with the
second season of the television production currently known as the "World Poker
Tour" (the "Program"); (iii) that certain fully executed Amendment to Season 2
Agreement (the "First Amendment"), dated as of April 22, 2004; (iv) that certain
fully executed Amendment Number 2 to Season 2 Agreement (the "Second
Amendment"), dated as of May 10, 2004; (v) that certain fully executed Amendment
Number 3 to Season 2 Agreement dated as of July 23, 2004 (the "Third Amendment")
and (vi) that certain fully executed Amendment Number 4 to Season 2 Agreement
(the "Fourth Amendment"), dated as of June 25, 2004. The Master Agreement and
the Attachment, as amended by the First Amendment, the Second Amendment, the
Third Amendment and the Fourth Amendment, are collectively hereinafter referred
to as the "Agreement."

        Except as otherwise defined herein, capitalized terms used but not
defined herein shall have the meanings set forth in the Agreement. The parties
hereby agree that the Agreement shall be supplemented and amended as follows:

1.      Producer hereby agrees to produce, in addition to the previously ordered
        First Additional Special - Season 3 program, a one (1) hour Additional
        Special tentatively entitled "Poker Corner" to be produced in connection
        with Season 3 of the Program and such Additional Special shall
        hereinafter be referred to as the "Second Additional Special - Season 3"
        (i.e., "Poker Corner").

<PAGE>

2.      In consideration for the performance by Producer of its obligations
        hereunder and under the Agreement in connection with the Second
        Additional Special - Season 3 (i.e., the "Poker Corner" Additional
        Special), TRV agrees to pay Producer, and Producer agrees to accept, a
        License Fee in the amount of ** Dollars ($ ** ) for the Second
        Additional Special - Season 3. The License Fee will be paid by TRV to
        Producer in accordance with the terms of the Agreement, including,
        without limitation, a payment of $ ** (i.e., ** % of $ ** within
        fourteen (14) days of the receipt of insurance policies required to be
        delivered as Program Materials for the Second Additional Special -
        Season 3.

3.     The production and exploitation of the Second Additional Special - Season
       3 is in all respects subject to the terms of the Agreement as applicable
       to Additional Specials, as the same may be amended from time to time,
       except as amended hereby, provided that TRV hereby approves the
       Production Schedule for the Second Additional Special - Season 3 attached
       hereto as Exhibit A, the Payment Schedule for the Second Additional
       Special - Season 3 attached hereby as Exhibit B, and the Production
       Budget for the Second Additional Special - Season 3 attached hereto as
       Exhibit C.

        Except as otherwise herein expressly amended and supplemented, the
Agreement is in all other aspects hereby ratified and confirmed. Please
acknowledge your acceptance of the foregoing by signing in the space provided
below.

                                       Very truly yours,

                                       THE TRAVEL CHANNEL, L.L.C.

                                       By:  /s/ Daniel W. Russell
                                            ------------------------------------
                                       Printed Name: Daniel W. Russell
                                       Title:  V.P. Programming
                                       Date:  August 20, 2004

WPT ENTERPRISES, INC.

By:  /s/ Steven Lipscomb
    ---------------------------
Printed Name:  Steven Lipscomb
Title:  President
Date:  August 19, 2004

<PAGE>
                                    Exhibit A

                               Production Schedule
                      Second Additional Special - Season 3

                             One (1) Page To Follow

<PAGE>
                                World Poker Tour
                              Season III 2004/2005
                                    ADDENDUM
                              Production Schedule
                             WPT Poker Corner Pilot

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                              PRE-                                    ROUGH      FINE
EP. #  EP TITLE               LOCATION        PROD.     PRODUCTION     POST PROD.      CUT       CUT      PROMO    DEL. MASTERS
--------------------------------------------------------------------------------------------------------------------------------
<S>    <C>                 <C>              <C>         <C>            <C>           <C>        <C>       <C>      <C>
325    WPT Poker Corner    Hollywood, CA     July 5 -    Aug. 16 -      Aug. 24 -     2-Sep     8-Sep     13-Sep     14-Sep
                                             Aug. 13     Aug. 23        Sept. 14
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>
                                    Exhibit B

                                Payment Schedule
                      Second Additional Special - Season 3

                             One (1) Page To Follow

<PAGE>
                                WORLD POKER TOUR
                                PAYMENT SCHEDULE

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                              C
                                                                              **%
                                                                         PAYMENT WITHIN                   D
                                                                           14 DAYS OF                     **%
                                                                         DELIVERY TO AND               PAYMENT
                                           B               %             APPROVAL BY DCI            WITHIN 14 DAYS
                                           PAYMENT WITHIN 30              OF THE ALL                OF DELIVERY TO
                                            DAYS PRIOR TO                  PROGRAM                   AND APPROVAL
                              A         %    COMMENCEMENT                 PRODUCTION         C       BY DCI OF ALL       D
                     LICENSE  UPON MUTUAL  OF SCHEDULET WPT  B DELIVERY   MILESTONE       DELIVERY   FINAL PROGRAM    DELIVERY
EPISODE                FEE    EXECUTION        EVENTS            DATE     MATERIALS        DATE       MATERIALS        DATE
------------------------------------------------------------------------------------------------------------------------------------
<S>                  <C>      <C>          <C>               <C>         <C>             <C>        <C>               <C>
325 WPT Poker Corner             $**            $**           21-Jul-04     $**          14-Sep-04       $**          28-Sep-04  $**

TOTALS               $**         $**            $**                         $**                          $**                     $**

BALANCE DUE-PENDING ON TIME DELIVERY OF ELEMENTS:
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>
                                    Exhibit C

                                Production Budget
                      Second Additional Special - Season 3

                            Five (5) Pages To Follow

<PAGE>
                                WORLD POKER TOUR
                             WPT POKER CORNER PILOT
               SET UP: Sunday, August 22 / VTR: Monday, August 23

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
   ACCT #                   DESCRIPTION                  QTY     UNIT     X      UNIT COST       SUBTOTAL
---------------------------------------------------------------------------------------------------------------
<S>          <C>                                         <C>     <C>      <C>   <C>           <C>
    1200     PRODUCER'S UNIT
---------------------------------------------------------------------------------------------------------------
    1202     Executive Producer                           **     week     1     **            **
---------------------------------------------------------------------------------------------------------------
    1203     Supervising Producer                                week     1                                  -
---------------------------------------------------------------------------------------------------------------
    1203     Senior Producer                                     weeks    1                                  -
---------------------------------------------------------------------------------------------------------------
    1203     Producer                                            weeks    1                                  -
---------------------------------------------------------------------------------------------------------------
    1204     Associate Producer                                  weeks    1                                  -
---------------------------------------------------------------------------------------------------------------
    1299     Fringes                                             allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    1300     DIRECTION
---------------------------------------------------------------------------------------------------------------
    1301     Director                                            allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    1400     CAST
---------------------------------------------------------------------------------------------------------------
    1401     Commentator - Mike Sexton                           allow    1                                  -
---------------------------------------------------------------------------------------------------------------
    1402     Poker Pro - Annie Duke                              allow    1                                  -
---------------------------------------------------------------------------------------------------------------
    1402     Poker Pro - Daniel Negrano                          allow    1                                  -
---------------------------------------------------------------------------------------------------------------
    1402     Poker Pro - Phil Helmuth                            allow    1                                  -
---------------------------------------------------------------------------------------------------------------
    1499     Fringes                                             allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    1500     TRAVEL AND LIVING
---------------------------------------------------------------------------------------------------------------
    1523     Airfare                                              tix     1                                  -
---------------------------------------------------------------------------------------------------------------
    1524     Lodging                                             nite     4                                  -
---------------------------------------------------------------------------------------------------------------
    1525     Per Diem                                            days     4                                  -
---------------------------------------------------------------------------------------------------------------
    1527     Transportation                                      allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
===============================================================================================================
             TOTAL ABOVE-THE-LINE                                                                            -
===============================================================================================================
    2000     PRODUCTION STAFF
---------------------------------------------------------------------------------------------------------------
    2001     Line Producer                                       weeks    1                                  -
---------------------------------------------------------------------------------------------------------------
    2002     Production Manager                                  weeks    1                                  -
---------------------------------------------------------------------------------------------------------------
    2007     Production Accountant                               weeks    1                                  -
---------------------------------------------------------------------------------------------------------------
    2009     Production Coordinator                              weeks    1                                  -
---------------------------------------------------------------------------------------------------------------
    2013     Production Assistants                               weeks    1                                  -
---------------------------------------------------------------------------------------------------------------
    2013     Set PAs                                             days     4                                  -
---------------------------------------------------------------------------------------------------------------
    2099     Fringes                                             allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    3900     STAGE FACILITIES
---------------------------------------------------------------------------------------------------------------
    3931      Stage /Set Up/Shoot/Strike                         days     1                                  -
---------------------------------------------------------------------------------------------------------------
    3931      Production Control Rooms - Included                days     1                -                 -
---------------------------------------------------------------------------------------------------------------
    3931      News Set - Included                                days     1                                  -
---------------------------------------------------------------------------------------------------------------
    3931      Power - Lighting/AC                                days     1                                  -
---------------------------------------------------------------------------------------------------------------
    3933      Dressing Rooms (1 office, 1 grn room)              days     1                -                 -
---------------------------------------------------------------------------------------------------------------
    3933      Make Up Room                                       days     1                -                 -
---------------------------------------------------------------------------------------------------------------
    3933      Wardrobe Room (extra dressing room)                days     1                -                 -
---------------------------------------------------------------------------------------------------------------
    3933      Lunch Room, Pkng, Trash PU, Shower                 days     1                -                 -
---------------------------------------------------------------------------------------------------------------
    3933      Phone Lines (Dressing Rooms)                       days     1                -                 -
---------------------------------------------------------------------------------------------------------------
    3903     Facilities Assistant                                days    1.5                                 -
---------------------------------------------------------------------------------------------------------------
    3981     Processing Fee (10% of personnel)                   allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    2200     SET DESIGN
---------------------------------------------------------------------------------------------------------------
    2201     Production Designer                                 allow    1                                  -
---------------------------------------------------------------------------------------------------------------
    2202     Art Director                                        week     1                                  -
---------------------------------------------------------------------------------------------------------------
    2204     Stagehands                                          days     5                                  -
---------------------------------------------------------------------------------------------------------------
    2299     Fringes                                             allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    2300     SET CONSTRUCTION
---------------------------------------------------------------------------------------------------------------
    2321     Purchases                                           allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    2500     SET SHIPPING
---------------------------------------------------------------------------------------------------------------
    2521     Trucking                                            allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    2700     SET DRESSING
---------------------------------------------------------------------------------------------------------------
    2721     Graphics                                            allow    1                                  -
---------------------------------------------------------------------------------------------------------------
    2721     Plasma Screen Rentals                        **     days     4           **              **
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
   ACCT #                   DESCRIPTION                  QTY     UNIT     X      UNIT COST       SUBTOTAL
---------------------------------------------------------------------------------------------------------------
<S>          <C>                                         <C>     <C>      <C>   <C>           <C>
    2500     SET OPERATIONS
---------------------------------------------------------------------------------------------------------------
    2531      Scissor Lift/Man Lift (no charge)           **     days     1          **               **
---------------------------------------------------------------------------------------------------------------
    2506     Utility                                             days     1                                  -
---------------------------------------------------------------------------------------------------------------
    2509     Fringes                                             allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    3200     LIGHTING
---------------------------------------------------------------------------------------------------------------
    3201     Lighting Director                                   days     1                                  -
---------------------------------------------------------------------------------------------------------------
    3202     WPT Gaffer                                          days     1                                  -
---------------------------------------------------------------------------------------------------------------
    3204     House Electric/Board Op                             days     1                                  -
---------------------------------------------------------------------------------------------------------------
    3204     Electric (estimated time for refocus)               days     1                                  -
---------------------------------------------------------------------------------------------------------------
    3231      Grip/Electric Package                              days     1                                  -
---------------------------------------------------------------------------------------------------------------
    3223      Expendables                                        allow    1                                  -
---------------------------------------------------------------------------------------------------------------
    3299     Fringes                                             allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    3300     CAMERA
---------------------------------------------------------------------------------------------------------------
    3302     Jib Operator                                         day     1                                  -
---------------------------------------------------------------------------------------------------------------
    3302     Ped Operators                                        day     3                                  -
---------------------------------------------------------------------------------------------------------------
    3331      Ped Cameras                                         day     3                                  -
---------------------------------------------------------------------------------------------------------------
    3331      1 Jib Camera                                        day     1                                  -
---------------------------------------------------------------------------------------------------------------
    3331      Jimmy Jib                                           day     1                                  -
---------------------------------------------------------------------------------------------------------------
             Fringes                                             allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    3400     AUDIO
---------------------------------------------------------------------------------------------------------------
    3401     Audio Mixer                                         days     1                                  -
---------------------------------------------------------------------------------------------------------------
    3402     A2 - Sean Mc Niel                                    day     1                                  -
---------------------------------------------------------------------------------------------------------------
    3431      Hard Line Mics                                      day     4                                  -
---------------------------------------------------------------------------------------------------------------
    3299     Fringes                                             allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    3800     VIDEO
---------------------------------------------------------------------------------------------------------------
    3801     Engineer in Charge                                  days     1                                  -
---------------------------------------------------------------------------------------------------------------
    3805     Technical Director                                  days     1                                  -
---------------------------------------------------------------------------------------------------------------
    3806     Video Tape Operator                                 days     1                                  -
---------------------------------------------------------------------------------------------------------------
    3807     Video Control                                       days     1                                  -
---------------------------------------------------------------------------------------------------------------
    3831      Floor Monitors                                     days     2                                  -
---------------------------------------------------------------------------------------------------------------
    3831      Digi Beta Decks Iso's                               day     5                                  -
---------------------------------------------------------------------------------------------------------------
    3831      MAV Playback Server                                 day     1                                  -
---------------------------------------------------------------------------------------------------------------
    3299     Fringes                                             allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    3000     HAIR AND MAKE UP
---------------------------------------------------------------------------------------------------------------
    3001     Makeup Artist                                        day     1                                  -
---------------------------------------------------------------------------------------------------------------
    3039     Kit Rental                                          flat     1                                  -
---------------------------------------------------------------------------------------------------------------
    3099     Fringes                                             allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    3500     TRANSPORTATION
---------------------------------------------------------------------------------------------------------------
    3524     Mileage                                             allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    3600     LOCATION
---------------------------------------------------------------------------------------------------------------
    3625     Crew meals                                          meal     2                                  -
---------------------------------------------------------------------------------------------------------------
    3626     Craft service                                        day     2                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    3700     PRODUCTION FILM AND LAB
---------------------------------------------------------------------------------------------------------------
    3702     Digi Beta x 94 minutes                              tape     20                                 -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
===============================================================================================================
             TOTAL PRODUCTION                                                                                -
===============================================================================================================

    4500     EDITORIAL
---------------------------------------------------------------------------------------------------------------
    4525     Post Supervisor                                     weeks    1                                  -
---------------------------------------------------------------------------------------------------------------
    4526     Post Coordinator                                    weeks    1                                  -
---------------------------------------------------------------------------------------------------------------
    4501     Editor                                              weeks    1                                  -
---------------------------------------------------------------------------------------------------------------
    4501     Online Editor                                       week     1                                  -
---------------------------------------------------------------------------------------------------------------
    4502     Assistant Editor                                    weeks    1                                  -
---------------------------------------------------------------------------------------------------------------
    4527     Logger                                              week     1                                  -
---------------------------------------------------------------------------------------------------------------
    4528     Transcription Service                               allow    1                                  -
---------------------------------------------------------------------------------------------------------------
    4532     Avid Rental                                         weeks    1                                  -
---------------------------------------------------------------------------------------------------------------
    4532     Unity Storage                                       week     1                                  -
---------------------------------------------------------------------------------------------------------------
    4532     Online/Adrenaline                                   week     1                                  -
---------------------------------------------------------------------------------------------------------------
    4532     Misc. Deck Rental                            **     allow    1          **               **
---------------------------------------------------------------------------------------------------------------
    4599     Fringes                                             allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
   ACCT #                   DESCRIPTION                  QTY     UNIT     X      UNIT COST       SUBTOTAL
---------------------------------------------------------------------------------------------------------------
<S>          <C>                                         <C>     <C>      <C>   <C>           <C>
    4900     POST VIDEO
---------------------------------------------------------------------------------------------------------------
    4902     Dubs                                         **     allow    1           **              **
---------------------------------------------------------------------------------------------------------------
    4901     Tape Stock                                          allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    4700     POST AUDIO
---------------------------------------------------------------------------------------------------------------
    4705     Mix                                                 allow    1                                  -
---------------------------------------------------------------------------------------------------------------
    4708     VO Talent                                           allow    1                                  -
---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    4600     MUSIC
---------------------------------------------------------------------------------------------------------------
    4602     Music Package                                       allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    5000     TITLES & OPTICALS
---------------------------------------------------------------------------------------------------------------
    5001     Graphics Package                                    allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
===============================================================================================================
             TOTAL POST PRODUCTION                                                                           -
===============================================================================================================

    6700     INSURANCE
---------------------------------------------------------------------------------------------------------------
    6507     Liability/Entertainment Package/E&O                 allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
    6800     OVERHEAD
---------------------------------------------------------------------------------------------------------------
    6821     Phone, Fax, DSL                                     allow    1                                  -
---------------------------------------------------------------------------------------------------------------
    6823     Shipping and Postage                                allow    1                                  -
---------------------------------------------------------------------------------------------------------------
    6834     Supplies                                            allow    1                                  -
---------------------------------------------------------------------------------------------------------------
    6837     Office Equipment (computers, copier)                allow    1                                  -
---------------------------------------------------------------------------------------------------------------
    6833     Office Rental/Parking                               month    1                                  -
---------------------------------------------------------------------------------------------------------------
    6840     Legal Fees/Patent Settlement                        allow    1                                  -
---------------------------------------------------------------------------------------------------------------
    6840     Legal Fees                                          allow    1                                  -
---------------------------------------------------------------------------------------------------------------
                                                                                                             -
                                                                                             ------------------
===============================================================================================================
             TOTAL OTHER                                                                                     -
===============================================================================================================

---------------------------------------------------------------------------------------------------------------
             Contingency                                         allow    1                -                 -
---------------------------------------------------------------------------------------------------------------
             Producer Fee                                        allow    1                -                 -
---------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------
             GRAND TOTAL                                                                                     -
---------------------------------------------------------------------------------------------------------------
</TABLE>exv10w1

 

Exhibit 10.1

$140,000,000

CREDIT AGREEMENT

dated as of November 16, 2004,

among

METROCALL, INC.

and

ARCH WIRELESS OPERATING COMPANY, INC.,

as Borrowers,

and

USA MOBILITY, INC.,

as Holdings,

and

THE OTHER GUARANTORS PARTY HERETO,

as Guarantors,

THE LENDERS PARTY HERETO

and

UBS SECURITIES LLC,

as Arranger, Bookmanager, Documentation Agent and Syndication Agent,

and

UBS AG, STAMFORD BRANCH,

as Administrative Agent and Collateral Agent

Cahill Gordon & Reindel llp

80 Pine Street

New York, NY 10005

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	Section
	 	Page

	ARTICLE I

	 	 	 	 
	
DEFINITIONS
	 	 	 	 
	SECTION 1.01 Defined Terms
	 	 	1	 
	SECTION 1.02 Classification of Loans and Borrowings
	 	 	29	 
	SECTION 1.03 Terms Generally
	 	 	29	 
	SECTION 1.04 Accounting Terms; GAAP
	 	 	29	 
	SECTION 1.05 Resolution of Drafting Ambiguities
	 	 	29	 
	ARTICLE II

	 	 	 	 
	
THE CREDITS
	 	 	 	 
	SECTION 2.01 Commitments
	 	 	29	 
	SECTION 2.02 Loans
	 	 	29	 
	SECTION 2.03 Borrowing Procedure
	 	 	30	 
	SECTION 2.04 Evidence of Debt; Repayment of Loans
	 	 	31	 
	SECTION 2.05 Fees
	 	 	31	 
	SECTION 2.06 Interest on Loans
	 	 	32	 
	SECTION 2.07 Termination of Commitments
	 	 	32	 
	SECTION 2.08 Interest Elections
	 	 	32	 
	SECTION 2.09 Amortization of Borrowings
	 	 	33	 
	SECTION 2.10 Optional and Mandatory Prepayments of Loans
	 	 	34	 
	SECTION 2.11 Alternate Rate of Interest
	 	 	36	 
	SECTION 2.12 Yield Protection
	 	 	36	 
	SECTION 2.13 Breakage Payments
	 	 	37	 
	SECTION 2.14 Payments Generally; Pro Rata Treatment; Sharing of Setoffs
	 	 	38	 
	SECTION 2.15 Taxes
	 	 	39	 
	SECTION 2.16 Mitigation Obligations; Replacement of Lenders
	 	 	41	 
	ARTICLE III
	 	 	 	 
	
REPRESENTATIONS AND WARRANTIES
	 	 	 	 
	SECTION 3.01 Organization; Powers
	 	 	42	 
	SECTION 3.02 Authorization; Enforceability
	 	 	43	 
	SECTION 3.03 No Conflicts
	 	 	43	 
	SECTION 3.04 Financial Statements; Projections
	 	 	43	 
	SECTION 3.05 Properties
	 	 	44	 
	SECTION 3.06 Intellectual Property
	 	 	45	 
	SECTION 3.07 Equity Interests and Subsidiaries
	 	 	45	 
	SECTION 3.08 Litigation; Compliance with Laws
	 	 	46	 
	SECTION 3.09 Agreements
	 	 	46	 
	SECTION 3.10 Federal Reserve Regulations
	 	 	46	 
	SECTION 3.11 Investment Company Act; Public Utility Holding Company Act
	 	 	47	 
	SECTION 3.12 Use of Proceeds
	 	 	47	 

-i-

 

	 	 	 	 	 
	Section
	 	Page

	SECTION 3.13 Taxes
	 	 	47	 
	SECTION 3.14 No Material Misstatements
	 	 	47	 
	SECTION 3.15 Labor Matters
	 	 	47	 
	SECTION 3.16 Solvency
	 	 	48	 
	SECTION 3.17 Employee Benefit Plans
	 	 	48	 
	SECTION 3.18 Environmental Matters
	 	 	48	 
	SECTION 3.19 Insurance
	 	 	49	 
	SECTION 3.20 Security Documents
	 	 	50	 
	SECTION 3.21 Merger Documents; Representations and Warranties in Merger Agreement
	 	 	50	 
	SECTION 3.22 Anti-Terrorism Law
	 	 	51	 
	SECTION 3.23 FCC Licenses
	 	 	51	 
	ARTICLE IV

	 	 	 	 
	
CONDITIONS PRECEDENT
	 	 	 	 
	SECTION 4.01 Conditions to the Making of the Loans
	 	 	52	 
	ARTICLE V
	 	 	 	 
	
AFFIRMATIVE COVENANTS
	 	 	 	 
	SECTION 5.01 Financial Statements, Reports, etc.
	 	 	56	 
	SECTION 5.02 Litigation and Other Notices
	 	 	58	 
	SECTION 5.03 Existence; Businesses and Properties
	 	 	58	 
	SECTION 5.04 Insurance
	 	 	59	 
	SECTION 5.05 Obligations and Taxes
	 	 	60	 
	SECTION 5.06 Employee Benefits
	 	 	61	 
	SECTION 5.07 Maintaining Records; Access to Properties and Inspections; Annual Meetings
	 	 	61	 
	SECTION 5.08 Use of Proceeds
	 	 	61	 
	SECTION 5.09 Compliance with Environmental Laws; Environmental Reports
	 	 	62	 
	SECTION 5.10 [Reserved]
	 	 	62	 
	SECTION 5.11 Additional Collateral; Additional Guarantors
	 	 	62	 
	SECTION 5.12 Security Interests; Further Assurances
	 	 	64	 
	SECTION 5.13 Information Regarding Collateral
	 	 	64	 
	SECTION 5.14 Maintenance of Minimum Balance in Concentration Account
	 	 	65	 
	SECTION 5.15 Certain Obligations Relating to Owned Real Properties
	 	 	65	 
	SECTION 5.16 Certain Obligations relating to Leases
	 	 	66	 
	SECTION 5.17 Post-Closing Matters
	 	 	67	 
	ARTICLE VI

	 	 	 	 
	
NEGATIVE COVENANTS
	 	 	 	 
	SECTION 6.01 Indebtedness
	 	 	67	 
	SECTION 6.02 Liens
	 	 	69	 
	SECTION 6.03 Sale and Leaseback Transactions
	 	 	71	 
	SECTION 6.04 Investment, Loan and Advances
	 	 	71	 
	SECTION 6.05 Mergers and Consolidations
	 	 	72	 
	SECTION 6.06 Asset Sales
	 	 	73	 

-ii-

 

	 	 	 	 	 
	Section
	 	Page

	SECTION 6.07 Acquisitions
	 	 	73	 
	SECTION 6.08 Dividends
	 	 	74	 
	SECTION 6.09 Transactions with Affiliates
	 	 	75	 
	SECTION 6.10 Financial Covenants
	 	 	75	 
	SECTION 6.11 Prepayments of Other Indebtedness; Modifications of
Organizational Documents and Other Documents, etc.
	 	 	76	 
	SECTION 6.12 Limitation on Certain Restrictions on Subsidiaries
	 	 	77	 
	SECTION 6.13 Limitation on Issuance of Capital Stock
	 	 	78	 
	SECTION 6.14 Limitation on Creation of Subsidiaries
	 	 	78	 
	SECTION 6.15 Limitation on Business Activities
	 	 	78	 
	SECTION 6.16 Limitation on Accounting Changes
	 	 	79	 
	SECTION 6.17 Fiscal Year
	 	 	79	 
	SECTION 6.18 Lease Obligations
	 	 	79	 
	SECTION 6.19 No Further Negative Pledge
	 	 	79	 
	SECTION 6.20 Anti-Terrorism Law; Anti-Money Laundering
	 	 	80	 
	SECTION 6.21 Embargoed Person
	 	 	80	 
	SECTION 6.22 Implementation of Integration Plan
	 	 	80	 
	SECTION 6.23 Deposit of Funds
	 	 	81	 
	ARTICLE VII
	 	 	 	 
	GUARANTEE
	 	 	 	 
	SECTION 7.01 The Guarantee
	 	 	81	 
	SECTION 7.02 Obligations Unconditional
	 	 	81	 
	SECTION 7.03 Reinstatement
	 	 	82	 
	SECTION 7.04 Subrogation; Subordination
	 	 	82	 
	SECTION 7.05 Remedies
	 	 	83	 
	SECTION 7.06 Instrument for the Payment of Money
	 	 	83	 
	SECTION 7.07 Continuing Guarantee
	 	 	83	 
	SECTION 7.08 General Limitation on Guarantee Obligations
	 	 	83	 
	SECTION 7.09 Release of Guarantors
	 	 	83	 
	ARTICLE VIII
	 	 	 	 
	EVENTS OF DEFAULT
	 	 	 	 
	SECTION 8.01 Events of Default
	 	 	84	 
	SECTION 8.02 Rescission
	 	 	86	 
	SECTION 8.03 Application of Proceeds
	 	 	86	 
	ARTICLE IX
	 	 	 	 
	THE ADMINISTRATIVE AGENT AND THE COLLATERAL AGENT
	 	 	 	 
	SECTION 9.01 Appointment and Authority
	 	 	87	 
	SECTION 9.02 Rights as a Lender
	 	 	87	 
	SECTION 9.03 Exculpatory Provisions
	 	 	88	 
	SECTION 9.04 Reliance by Agent
	 	 	88	 
	SECTION 9.05 Delegation of Duties
	 	 	89	 
	SECTION 9.06 Resignation of Agent
	 	 	89	 

-iii-

 

	 	 	 	 	 
	Section
	 	Page

	SECTION 9.07 Non-Reliance on Agent and Other Lenders
	 	 	89	 
	SECTION 9.08
No Other Duties, etc.
	 	 	90	 
	ARTICLE X

	 	 	 	 
	
MISCELLANEOUS
	 	 	 	 
	SECTION 10.01 Notices
	 	 	90	 
	SECTION 10.02 Waivers; Amendment
	 	 	92	 
	SECTION 10.03 Expenses; Indemnity; Damage Waiver
	 	 	94	 
	SECTION 10.04 Successors and Assigns
	 	 	95	 
	SECTION 10.05 Survival of Agreement
	 	 	97	 
	SECTION 10.06 Counterparts; Integration; Effectiveness; Electronic Execution
	 	 	98	 
	SECTION 10.07 Severability
	 	 	98	 
	SECTION 10.08 Right of Setoff
	 	 	98	 
	SECTION 10.09 Governing Law; Jurisdiction; Consent to Service of Process
	 	 	99	 
	SECTION 10.10 Waiver of Jury Trial
	 	 	99	 
	SECTION 10.11 Headings
	 	 	99	 
	SECTION 10.12 Treatment of Certain Information; Confidentiality
	 	 	99	 
	SECTION 10.13 USA PATRIOT Act Notice
	 	 	100	 
	SECTION 10.14 Interest Rate Limitation
	 	 	100	 
	SECTION 10.15 Lender Addendum
	 	 	101	 
	SECTION 10.16 Obligations Absolute
	 	 	101	 
	SECTION 10.17 Joint and Several Liability of Borrowers
	 	 	101	 

ANNEXES

    	 	 	 
	Annex
            I 
	 	Amortization Table
	 
	 	 
	SCHEDULES
	 	 
	 
	 	 
	Schedule 1.01(b)
          
	 	Guarantors
	Schedule 3.03
          
	 	Governmental Approvals; Compliance with
          Laws
	Schedule 3.05(b)	 	Fixture Filings Not to be Made
	Schedule 3.05(c)
          
	 	Casualty Events
	Schedule 3.06(c)
          
	 	Violations or Proceedings
	Schedule 3.07(c)
          
	 	Corporate Organizational Chart
	Schedule 3.09
          
	 	Material Agreements
	Schedule 3.18
          
	 	Environmental Matters
	Schedule 3.19
          
	 	Insurance
	Schedule 5.17(a)
          
	 	Jurisdictions to be Searched
	Schedule 5.17(b)	 	Fixture Filings to be Made
	Schedule 6.01(b)
          
	 	Existing Indebtedness
	Schedule 6.02(c)
          
	 	Existing Liens
	Schedule 6.04(b)
          
	 	Existing Investments
	 
	 	 
	EXHIBITS
	 	 
	 
	 	 
	Exhibit A
          
	 	Form of Administrative Questionnaire
	Exhibit B
          
	 	Form of Assignment and Assumption
	Exhibit C
          
	 	Form of Borrowing Request
	Exhibit D
          
	 	Form of Compliance Certificate
	Exhibit E
          
	 	Form of Interest Election Request

-iv-

 

	 	 	 
	Exhibit F

	 	Form of Joinder Agreement
	Exhibit G

	 	Form of Landlord’s Lien Waiver, Access Agreement and Consent
	Exhibit H

	 	Form of Lender Addendum
	Exhibit I

	 	Form of Note
	Exhibit J-1

	 	Form of Perfection Certificate
	Exhibit J-2

	 	Form of Perfection Certificate Supplement
	Exhibit K

	 	Form of Security Agreement
	Exhibit L

	 	Form of Opinion of Company Counsel
	Exhibit M

	 	Form of Solvency Certificate
	Exhibit N

	 	Form of Intercompany Note
	Exhibit O

	 	Form of Non-Bank Certificate

-v-

 

CREDIT AGREEMENT

          This CREDIT AGREEMENT (this “Agreement”) dated as of November 16, 2004,
among METROCALL, INC., a Delaware corporation (“Metrocall”), and ARCH WIRELESS
OPERATING COMPANY, INC., a Delaware corporation (“Arch” and, together with
Metrocall, “Borrowers”), USA MOBILITY, INC., a Delaware corporation
(“Holdings”), the other Guarantors (such term and each other capitalized term
used but not defined herein having the meaning given to it in Article
I), the Lenders, UBS SECURITIES LLC, as lead arranger (in such capacity,
“Arranger”), as documentation agent (in such capacity, “Documentation Agent”)
and as syndication agent (in such capacity, “Syndication Agent”), and UBS AG,
STAMFORD BRANCH, as administrative agent (in such capacity, “Administrative
Agent”) for the Lenders and as collateral agent (in such capacity, “Collateral
Agent”) for the Secured Parties.

WITNESSETH:

          WHEREAS, Arch Wireless, Inc., a Delaware corporation (“Arch Public”), and
Metrocall Holdings, Inc., a Delaware corporation (“Metrocall Public” and,
together with Arch Public, the “Public Companies”), have entered into a merger
agreement, dated as of March 29, 2004 (as amended, supplemented or otherwise
modified from time to time in accordance with the provisions hereof and
thereof, the “Merger Agreement”), pursuant to which Metrocall Public will merge
(the “Metrocall Merger”) with and into a newly formed Wholly Owned Subsidiary
of Holdings and Arch Public will merge with and into a newly formed Wholly
Owned Subsidiary of Holdings (the “Arch Merger” and, together with the
Metrocall Merger, the “Mergers”). As a result of the Mergers, both of Arch
Public and Metrocall Public shall become Wholly Owned Subsidiaries of Holdings.

          WHEREAS, Borrowers have requested the Lenders to extend credit in the form
of Loans on the Closing Date in an aggregate principal amount not in excess of
$140.0 million.

          WHEREAS, the proceeds of the Loans are to be used in accordance with
Section 3.12.

          NOW, THEREFORE, the Lenders are willing to extend such credit to Borrowers
on the terms and subject to the conditions set forth herein. Accordingly, the
parties hereto agree as follows:

ARTICLE I

DEFINITIONS

          SECTION 1.01 Defined Terms. As used in this Agreement, the following
terms shall have the meanings specified below:

          “ABR”, when used in reference to any Loan or Borrowing, is used when such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate
determined by reference to the Alternate Base Rate.

          “ABR Borrowing” shall mean a Borrowing comprised of ABR Loans.

          “ABR Loan” shall mean any Loan bearing interest at a rate determined by
reference to the Alternate Base Rate in accordance with the provisions of
Article II.

 

 

          “Acquisition Consideration” shall mean the purchase consideration for any
Permitted Acquisition and all other payments by Holdings or any of its
Subsidiaries in exchange for, or as part of, or in connection with, any
Permitted Acquisition, whether paid in cash or by exchange of Equity Interests
or of properties or otherwise and whether payable at or prior to the
consummation of such Permitted Acquisition or deferred for payment at any
future time, whether or not any such future payment is subject to the
occurrence of any contingency, and includes any and all payments representing
the purchase price and any assumptions of Indebtedness, “earn-outs” and other
agreements to make any payment the amount of which is, or the terms of payment
of which are, in any respect subject to or contingent upon the revenues,
income, cash flow or profits (or the like) of any person or business; provided
that any such future payment that is subject to a contingency shall be
considered Acquisition Consideration only to the extent of the reserve, if any,
required under GAAP at the time of such sale to be established in respect
thereof by Holdings or any of its Subsidiaries.

          “Adjusted LIBOR Rate” shall mean, with respect to any Eurodollar Borrowing
for any Interest Period, (a) an interest rate per annum (rounded upward, if
necessary, to the nearest 1/100th of 1%) determined by the Administrative Agent
to be equal to the LIBOR Rate for such Eurodollar Borrowing in effect for such
Interest Period divided by (b) 1 minus the Statutory Reserves (if any) for such
Eurodollar Borrowing for such Interest Period.

          “Administrative Agent” shall have the meaning assigned to such term in the
preamble hereto and includes each other person appointed as the successor
pursuant to Section 9.06.

          “Administrative Agent Fees” shall have the meaning assigned to such term
in Section 2.05(a).

          “Administrative Questionnaire” shall mean an Administrative Questionnaire
substantially in the form of Exhibit A.

          “Affiliate” shall mean, when used with respect to a specified person,
another person that directly, or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the person
specified; provided, however, that, for purposes of Section 6.09, the
term “Affiliate” shall also include (i) any person that directly or indirectly
owns more than 10% of any class of Equity Interests of the person specified or
(ii) any person that is an executive officer or director of the person
specified.

          “Agents” shall mean the Administrative Agent and the Collateral Agent; and
“Agent” shall mean any of them.

          “Agreement” shall have the meaning assigned to such term in the preamble
hereto.

          “Alternate Base Rate” shall mean, for any day, a rate per annum (rounded
upward, if necessary, to the nearest 1/100th of 1%) equal to the greater of (a)
the Base Rate in effect on such day and (b) the Federal Funds Effective Rate in
effect on such day plus 0.50%. If the Administrative Agent shall have
determined (which determination shall be conclusive absent manifest error) that
it is unable to ascertain the Federal Funds Effective Rate for any reason,
including the inability of the Administrative Agent to obtain sufficient
quotations in accordance with the terms of the definition thereof, the
Alternate Base Rate shall be determined without regard to clause (b) of the preceding
sentence until the circumstances giving rise to such inability no longer exist.
Any change in the Alternate Base Rate due to a change in the

-2-

 

Base Rate or the
Federal Funds Effective Rate shall be effective on the effective date of such
change in the Base Rate or the Federal Funds Effective Rate, respectively.

          “Annualization Factor” shall mean (i) four, in the case of the Test Period
ending December 31, 2004, (ii) two, in the case of the Test Period ending March
31, 2005 and (iii) 4/3, in the case of the Test Period ending June 30, 2005.

          “Anti-Terrorism Laws” shall have the meaning assigned to such term in
Section 3.22.

          “Applicable Margin” shall mean, in the case of ABR Loans, 1.50% per annum,
and in the case of Eurodollar Loans, 2.50% per annum.

          “Applicable Percentage” shall mean, with respect to any Lender, the
percentage of the total Loans and Commitments represented by such Lender’s
Loans and Commitments.

          “Approved Fund” shall mean any Fund that is administered or managed by (a)
a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an
entity that administers or manages a Lender.

          “Arch” shall have the meaning assigned to such term in the preamble
hereto.

          “Arch Merger” shall have the meaning assigned to such term in the first
recital hereto.

          “Arch Public” shall have the meaning assigned to such term in the first
recital hereto.

          “Arranger” shall have the meaning assigned to such term in the preamble
hereto.

          “Asset Sale” shall mean (a) any conveyance, sale, lease, sublease,
assignment, transfer or other disposition (including by way of merger or
consolidation and including any Sale and Leaseback Transaction) of any property
excluding sales of inventory and dispositions of cash equivalents, in each
case, in the ordinary course of business, by Holdings or any of its
Subsidiaries and (b) any issuance or sale of any Equity Interests of any
Subsidiary of Holdings, in each case, to any person other than (i) a Borrower,
(ii) any Subsidiary Guarantor or (iii) other than for purposes of Section
6.06, any other Company.

          “Assignment and Assumption” shall mean an assignment and assumption
entered into by a Lender and an Eligible Assignee (with the consent of any
party whose consent is required by Section 10.04(b)), and accepted by the
Administrative Agent, in substantially the form of Exhibit B, or any
other form approved by the Administrative Agent.

          “Attributable Indebtedness” shall mean, when used with respect to any Sale
and Leaseback Transaction, as at the time of determination, the present value
(discounted at a rate equivalent to Borrowers’ then-current weighted average
cost of funds for borrowed money as at the time of determination, compounded on
a semi-annual basis) of the total obligations of the lessee for rental payments
during the remaining term of the lease included in any such Sale and Leaseback
Transaction.

          “Bailee Letter” shall have the meaning assigned thereto in the Security
Agreement.

          “Base Rate” shall mean, for any day, a rate per annum that is equal to the
corporate base rate of interest established by the Administrative Agent from
time to time; each change in the Base Rate

-3-

 

shall be effective on the date such
change is effective. The corporate base rate is not necessarily the lowest
rate charged by the Administrative Agent to its customers.

          “Board” shall mean the Board of Governors of the Federal Reserve System of
the United States.

          “Board of Directors” shall mean, with respect to any person, (i) in the
case of any corporation, the board of directors of such person, (ii) in the
case of any limited liability company, the board of managers of such person,
(iii) in the case of any partnership, the Board of Directors of the general
partner of such person and (iv) in any other case, the functional equivalent of
the foregoing.

          “Borrower” shall have the meaning assigned to such term in the preamble
hereto.

          “Borrower Businesses” shall have the meaning assigned to such term in
Section 6.15(c).

          “Borrowing” shall mean Loans of the same Type, made, converted or
continued on the same date and, in the case of Eurodollar Loans, as to which a
single Interest Period is in effect.

          “Borrowing Request” shall mean a request by Borrowers in accordance with
the terms of Section 2.03 and substantially in the form of Exhibit
C, or such other form as shall be approved by the Administrative Agent.

          “Business Day” shall mean any day other than a Saturday, Sunday or other
day on which banks in New York City are authorized or required by law to close;
provided, however, that when used in connection with a Eurodollar Loan, the
term “Business Day” shall also exclude any day on which banks are not open for
dealings in dollar deposits in the London interbank market.

          “Capital Expenditures” shall mean, for any period, all cash expenditures
made by Holdings and its Subsidiaries which, in accordance with GAAP, are or
should be included in “property, plant and equipment” or similar items in the
consolidated balance sheet of Holdings and its Subsidiaries plus all Capital
Lease Obligations incurred by Holdings or one of its Subsidiaries during such
period, but excluding (i) expenditures constituting reinvestments made in
accordance with Section 2.10(c) or (f) and (ii) any portion of
such expenditures attributable solely to acquisitions of property, plant and
equipment in Permitted Acquisitions.

          “Capital Lease Obligations” of any person shall mean the obligations of
such person to pay rent or other amounts under any lease of (or other
arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.

          “Cash Equivalents” shall mean, as to any person, (a) securities issued, or
directly, unconditionally and fully guaranteed or insured, by the United States
or any agency or instrumentality thereof (provided that the full faith and
credit of the United States is pledged in support thereof) having maturities of
not more than one year from the date of acquisition by such person; (b) time
deposits and certificates of deposit of any Lender or any commercial bank
having, or which is the principal banking subsidiary of a bank holding company
organized under the laws of the United States, any state thereof or
the District of Columbia having, capital and surplus aggregating in excess
of $500.0 million and a rating of “A” (or such other similar equivalent rating)
or higher by at least one nationally recognized statistical rating organization
(as defined in Rule 436 under the Securities Act) with maturities of not more
than one

-4-

 

year from the date of acquisition by such person; (c) repurchase
obligations with a term of not more than 30 days for underlying securities of
the types described in clause (a) above entered into with any bank meeting the
qualifications specified in clause (b) above, which repurchase obligations are
secured by a valid perfected security interest in the underlying securities;
(d) commercial paper issued by any other person incorporated in the United
States rated at least A-1 or the equivalent thereof by Standard & Poor’s Rating
Service or at least P-1 or the equivalent thereof by Moody’s Investors Service,
Inc., and in each case maturing not more than one year after the date of
acquisition thereof; (e) marketable direct obligations issued by any State of
the United States of America or any political subdivision or public
instrumentality thereof maturing within one year of the acquisition thereof and
having one of the two highest ratings obtainable from either S&P or Moody’s (it
being understood that for short auction securities, the maturity shall be
deemed to be the auction or put date of such securities, so long as such
auction or put date for such securities is within one year of the acquisition
thereof); (f) investments in money market funds substantially all of whose
assets are comprised of securities of the types described in clauses (a)
through (e) above; and (g) demand deposit accounts maintained in the ordinary
course of business.

          “Casualty Event” shall mean any loss of title or any loss of or damage to
or destruction of, or any condemnation or other taking (including by any
Governmental Authority) of, any property of Holdings or any of its
Subsidiaries. “Casualty Event” shall include but not be limited to any taking
of all or any part of any Real Property of any person or any part thereof, in
or by condemnation or other eminent domain proceedings pursuant to any
Requirement of Law, or by reason of the temporary requisition of the use or
occupancy of all or any part of any Real Property of any person or any part
thereof by any Governmental Authority, civil or military, or any settlement in
lieu thereof.

          “CERCLA” shall mean the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended, 42 U.S.C. § 9601 et seq.

          A “Change in Control” shall be deemed to have occurred if:

     (a) Holdings at any time ceases to own 100% of the Equity Interests,
directly or indirectly, of either Borrower;

     (b) any “person” or “group” (as such terms are used in Sections
13(d) and 14(d) of the Exchange Act) is or becomes the beneficial owner
(as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that
for purposes of this clause such person or group shall be deemed to have
“beneficial ownership” of all securities that such person or group has
the right to acquire, whether such right is exercisable immediately or
only after the passage of time), directly or indirectly, of Voting Stock
of Holdings representing more than 35% of the voting power of the total
outstanding Voting Stock of Holdings; or

     (c) during any period of two consecutive years, individuals who at
the beginning of such period constituted the Board of Directors of
Holdings, together with any new directors whose election to such Board of
Directors or whose nomination for election was approved by a vote of a
majority of the members of the Board of Directors of Holdings, which
members comprising such majority are then still in office and were either
directors at the beginning of such period or whose election or nomination
for election was previously so approved, cease for any reason to
constitute a majority of the Board of Directors of Holdings.

-5-

 

          For purposes of this definition, a person shall not be deemed to have
beneficial ownership of Equity Interests subject to a stock purchase agreement,
merger agreement or similar agreement until the consummation of the
transactions contemplated by such agreement.

          “Change in Law” shall mean the occurrence, after the date of this
Agreement, of any of the following: (a) the adoption or taking into effect of
any law, treaty, order, policy, rule or regulation, (b) any change in any law,
treaty, order, policy, rule or regulation or in the administration,
interpretation or application thereof by any Governmental Authority or (c) the
making or issuance of any request, guideline or directive (whether or not
having the force of law) by any Governmental Authority.

          “Charges” shall have the meaning assigned to such term in Section
10.14.

          “Closing Date” shall mean the date of the making of the Loans hereunder.

          “Code” shall mean the Internal Revenue Code of 1986, as amended from time
to time.

          “Collateral” shall mean, collectively, all of the Security Agreement
Collateral, the Mortgaged Property and all other property of whatever kind and
nature subject or purported to be subject from time to time to a Lien under any
Security Document.

          “Collateral Agent” shall have the meaning assigned to such term in the
preamble hereto.

          “Commitment” shall mean, with respect to each Lender, the commitment, if
any, of such Lender to make a Loan hereunder on the Closing Date in the amount
set forth on Schedule I to the Lender Addendum executed and delivered by such
Lender. The aggregate amount of the Lenders’ Commitments is $140.0 million.

          “Communications Act” means the Communications Act of 1934, as amended.

          “Companies” shall mean Holdings and its Subsidiaries; and “Company” shall
mean any one of them.

          “Compliance Certificate” shall mean a certificate of a Financial Officer
substantially in the form of Exhibit D.

          “Concentration Account” shall have the meaning assigned to such term in
Section 4.01(p).

          “Confidential Information Memorandum” shall mean that certain confidential
information memorandum dated as of October 12, 2004.

          “Consolidated Amortization Expense” shall mean, for any period, the
amortization expense of Holdings and its Subsidiaries for such period,
determined on a consolidated basis in accordance with GAAP.

          “Consolidated Current Assets” shall mean, as at any date of determination,
the total assets (other than cash and cash equivalents) of Holdings and its
Subsidiaries which may properly be classified as current assets on a
consolidated balance sheet of Holdings and its Subsidiaries in accordance with
GAAP.

-6-

 

          “Consolidated Current Liabilities” shall mean, as at any date of
determination, the total liabilities of Holdings and its Subsidiaries which may
properly be classified as current liabilities (other than the current portion
of any Loans) on a consolidated balance sheet of Holdings and its Subsidiaries
in accordance with GAAP.

          “Consolidated Depreciation Expense” shall mean, for any period, the
depreciation expense of Holdings and its Subsidiaries for such period,
determined on a consolidated basis in accordance with GAAP.

          “Consolidated EBITDA” shall mean, for any period, Consolidated Net Income
for such period, adjusted by (x) adding thereto, in each case only to the
extent (and in the same proportion) deducted in determining such Consolidated
Net Income, pursuant to the terms of its Organizational Documents and all
agreements, instruments and Requirements of Law applicable to such Subsidiary
or its equityholders):

     (a) Consolidated Interest Expense for such period,

     (b) Consolidated Amortization Expense for such period,

     (c) Consolidated Depreciation Expense for such period,

     (d) Consolidated Tax Expense for such period,

     (e) expenses directly incurred in connection with the Transactions
(not to exceed $31.0 million), and

     (f) the aggregate amount of all other non-cash charges, including
non-cash stock-based compensation expenses, reducing Consolidated Net
Income (excluding any non-cash charge that results in an accrual of a
reserve for cash charges in any future period) for such period, and

(y) subtracting therefrom the aggregate amount of all non-cash items increasing
Consolidated Net Income (other than the accrual of revenue or recording of
receivables in the ordinary course of business) for such period.

          Other than for purposes of calculating Excess Cash Flow, Consolidated
EBITDA shall be calculated on a Pro Forma Basis to give effect to any Permitted
Acquisition in excess of $500,000 and any Asset Sale in excess of $500,000
consummated at any time on or after the first day of the Test Period thereof as
if each such Permitted Acquisition had been effected on the first day of such
period and as if each such Asset Sale had been consummated on the day prior to
the first day of such period. Notwithstanding anything else contained in this
definition, calculated on a Pro Forma Basis to give effect to the Mergers,
Consolidated EBITDA for the first, second and third quarters of 2004 shall be
deemed to be $71.1 million, $67.8 million and $58.5, respectively.

          “Consolidated Indebtedness” shall mean, as at any date of determination,
the aggregate amount of all Indebtedness of Holdings and its Subsidiaries,
determined on a consolidated basis in accordance with GAAP.

          “Consolidated Interest Coverage Ratio” shall mean, for any Test Period,
the ratio of (x) Consolidated EBITDA for such Test Period to (y) Consolidated
Interest Expense for such Test Period,

-7-

 

to the extent paid or payable in cash; provided that for any Test Period
ending on or before June 30, 2005, such Consolidated Interest Expense shall be
equal to (i) Consolidated Interest Expense for the period from and after
October 1, 2004 times (ii) the Annualization Factor for such Test Period;
provided, further, that for the fiscal quarter ending December 31, 2004, such
Consolidated Interest Expense shall be equal to (x) Consolidated Interest
Expense for the period from and after the Closing Date to and including
December 31, 2004 times (y) the Full Quarter Factor. For the purposes of this
definition of “Consolidated Interest Coverage Ratio” only, Consolidated
Interest Expense (including in calculating Consolidated EBITDA for purposes of
calculating the Consolidated Interest Coverage Ratio) shall only be deemed to
be Consolidated Interest Expense that is paid or payable in cash.

          “Consolidated Interest Expense” shall mean, for any period, the total
consolidated interest expense of Holdings and its Subsidiaries for such period
determined on a consolidated basis in accordance with GAAP plus, without
duplication:

     (a) imputed interest on Capital Lease Obligations and Attributable
Indebtedness of Holdings and its Subsidiaries for such period;

     (b) commissions, discounts and other fees and charges owed by
Holdings or any of its Subsidiaries with respect to letters of credit
securing financial obligations, bankers’ acceptance financing and
receivables financings for such period;

     (c) amortization of debt issuance costs, debt discount or premium
and other financing fees and expenses incurred by Holdings or any of its
Subsidiaries for such period;

     (d) cash contributions to any employee stock ownership plan or
similar trust made by Holdings or any of its Subsidiaries to the extent
such contributions are used by such plan or trust to pay interest or fees
to any person (other than Holdings or a Wholly Owned Subsidiary) in
connection with Indebtedness incurred by such plan or trust for such
period;

     (e) all interest paid or payable with respect to discontinued
operations of Holdings or any of its Subsidiaries for such period;

     (f) the interest portion of any deferred payment obligations of
Holdings or any of its Subsidiaries for such period;

     (g) all interest on any Indebtedness of Holdings or any of its
Subsidiaries of the type described in clause (f) or (k) of the definition
of “Indebtedness” for such period;

provided that (a) to the extent directly related to the Transactions, debt
issuance costs, debt discount or premium and other financing fees and expenses
shall be excluded from the calculation of Consolidated Interest Expense and (b)
Consolidated Interest Expense shall be calculated after giving effect to
Hedging Agreements (including associated costs), but excluding unrealized gains
and losses with respect to Hedging Agreements.

          Other than for purposes of calculating Excess Cash Flow, Consolidated
Interest Expense shall be calculated on a Pro Forma Basis to give effect to any
Indebtedness incurred, assumed or permanently repaid or extinguished during the
relevant Test Period in connection with any Permitted Acquisitions in excess of
$250,000 and Asset Sales in excess of $250,000 as if such incurrence,
assumption, repayment or extinguishing had been effected on the first day of
such period.

-8-

 

          “Consolidated Net Income” shall mean, for any period, the consolidated net
income (or loss) of Holdings and its Subsidiaries determined on a consolidated
basis in accordance with GAAP; provided that there shall be excluded from such
net income (to the extent otherwise included therein), without duplication:

     (a) the net income (or loss) of any person (other than a Subsidiary
of Holdings) in which any person other than Holdings or any of its
Subsidiaries has an ownership interest, except to the extent that cash in
an amount equal to any such income has actually been received by Holdings
or (subject to clause (b) below) any of its Subsidiaries during such
period;

     (b) the net income of any Subsidiary of Holdings during such period
to the extent that the declaration or payment of dividends or similar
distributions by such Subsidiary of that income is not permitted by
operation of the terms of its Organizational Documents or any agreement,
instrument or Requirement of Law applicable to that Subsidiary during
such period, except that Holdings’ equity in net loss of any such
Subsidiary for such period shall be included in determining Consolidated
Net Income;

     (c) any gain (or loss), together with any related provisions for
taxes on any such gain (or the tax effect of any such loss), realized
during such period by Holdings or any of its Subsidiaries upon any Asset
Sale (other than any dispositions in the ordinary course of business) by
Holdings or any of its Subsidiaries;

     (d) gains and losses due solely to fluctuations in currency values
and the related tax effects determined in accordance with GAAP for such
period;

     (e) earnings resulting from any reappraisal, revaluation or write-up
of assets;

     (f) unrealized gains and losses with respect to Hedging Obligations
for such period; and

     (g) any extraordinary or nonrecurring gain (or extraordinary or
nonrecurring loss), together with any related provision for taxes on any
such gain (or the tax effect of any such loss), recorded or recognized by
Holdings or any of its Subsidiaries during such period.

          For purposes of this definition of “Consolidated Net Income,”
“nonrecurring” means any gain or loss as of any date that is not reasonably
likely to recur within the two years following such date; provided that if
there was a gain or loss (other than a gain or loss relating to any Shareholder
Proceeding) similar to such gain or loss within the two years preceding such
date, such gain or loss shall not be deemed nonrecurring.

          “Consolidated Tax Expense” shall mean, for any period, the tax expense of
Holdings and its Subsidiaries, for such period, determined on a consolidated
basis in accordance with GAAP.

          “Contested Collateral Lien Conditions” shall mean, with respect to any
Permitted Lien of the type described in clauses (a), (b), (e) and (f) of
Section 6.02, the following conditions:

     (a) Holdings shall cause any proceeding instituted contesting such
Lien to stay the sale or forfeiture of any portion of the Collateral on
account of such Lien; and

-9-

 

     (b) such Lien shall in all respects be subject and subordinate in
priority to the Lien and security interest created and evidenced by the
Security Documents, except if and to the extent that the Requirement of
Law creating, permitting or authorizing such Lien provides that such Lien
is or must be superior to the Lien and security interest created and
evidenced by the Security Documents.

          “Contingent Obligation” shall mean, as to any person, any obligation,
agreement, understanding or arrangement of such person guaranteeing or intended
to guarantee any Indebtedness, leases, dividends or other obligations (“primary
obligations”) of any other person (the “primary obligor”) in any manner,
whether directly or indirectly, including any obligation of such person,
whether or not contingent, (a) to purchase any such primary obligation or any
property constituting direct or indirect security therefor; (b) to advance or
supply funds (i) for the purchase or payment of any such primary obligation or
(ii) to maintain working capital or equity capital of the primary obligor or
otherwise to maintain the net worth or solvency of the primary obligor; (c) to
purchase property, securities or services primarily for the purpose of assuring
the owner of any such primary obligation of the ability of the primary obligor
to make payment of such primary obligation; (d) with respect to bankers’
acceptances, letters of credit and similar credit arrangements, until a
reimbursement obligation arises (which reimbursement obligation shall
constitute Indebtedness); or (e) otherwise to assure or hold harmless the
holder of such primary obligation against loss in respect thereof; provided,
however, that the term “Contingent Obligation” shall not include endorsements
of instruments for deposit or collection in the ordinary course of business or
any product warranties. The amount of any Contingent Obligation shall be
deemed to be an amount equal to the stated or determinable amount of the
primary obligation in respect of which such Contingent Obligation is made (or,
if less, the maximum amount of such primary obligation for which such person
may be liable, whether singly or jointly, pursuant to the terms of the
instrument evidencing such Contingent Obligation) or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof
(assuming such person is required to perform thereunder) as determined by such
person in good faith.

          “Control” shall mean the possession, directly or indirectly, of the power
to direct or cause the direction of the management or policies of a person,
whether through the ownership of voting securities, by contract or otherwise,
and the terms “Controlling” and “Controlled” shall have meanings correlative
thereto.

          “Control Agreement” shall have the meaning assigned to such term in the
Security Agreement.

          “Debt Issuance” shall mean the incurrence by Holdings or any of its
Subsidiaries of any Indebtedness or any issuance of Disqualified Capital Stock
after the Closing Date (other than as permitted by Section 6.01).

          “Debt Service” shall mean, for any period, Consolidated Interest Expense
for such period, less the sum of (a) interest on any debt paid by the increase
in the principal amount of such debt including by issuance of additional debt
of such kind and (b) items described in clause (c) or, other than to the extent
paid in cash, clause (g) of the definition of “Consolidated Interest Expense”
for such period, plus scheduled principal amortization of all Indebtedness for
such period.

          “Default” shall mean any event, occurrence or condition which is, or upon
notice, lapse of time or both would, unless cured or waived, constitute, an
Event of Default.

          “Default Rate” shall have the meaning assigned to such term in Section
2.06(c).

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          “Disqualified Capital Stock” shall mean any Equity Interest which, by its
terms (or by the terms of any security into which it is convertible or for
which it is exchangeable), or upon the happening of any event, (a) matures
(excluding any maturity as the result of an optional redemption by the issuer
thereof) or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise, or is redeemable at the option of the holder thereof, in whole or in
part, on or prior to the 91st day after the Maturity Date, (b) is convertible
into or exchangeable (unless at the sole option of the issuer thereof) for (i)
debt securities or (ii) any Equity Interests referred to in (a) above, in each
case at any time on or prior to the 91st day after the Maturity Date, or (c)
contains any repurchase obligation which may come into effect prior to payment
in full of all Obligations; provided, however, that any Equity Interests that
would not constitute Disqualified Capital Stock but for provisions thereof
giving holders thereof (or the holders of any security into or for which such
Equity Interests is convertible, exchangeable or exercisable) the right to
require the issuer thereof to redeem such Equity Interests upon the occurrence
of a change in control or an asset sale occurring prior to the 91st day after
the Maturity Date shall not constitute Disqualified Capital Stock if such
Equity Interests provide that the issuer thereof will not redeem any such
Equity Interests pursuant to such provisions prior to the repayment in full of
the Obligations.

          “Dividend” with respect to any person shall mean that such person has
declared or paid a dividend or returned any equity capital to the holders of
its Equity Interests or authorized or made any other distribution, payment or
delivery of property (other than Qualified Capital Stock of such person) or
cash to the holders of its Equity Interests as such, or redeemed, retired,
purchased or otherwise acquired, directly or indirectly, for consideration any
of its Equity Interests outstanding (or any options or warrants issued by such
person with respect to its Equity Interests), or set aside any funds for any of
the foregoing purposes, or shall have permitted any of its Subsidiaries to
purchase or otherwise acquire for consideration any of the Equity Interests of
such person outstanding (or any options or warrants issued by such person with
respect to its Equity Interests). Without limiting the foregoing, “Dividends”
with respect to any person shall also include all payments made or required to
be made by such person with respect to any stock appreciation rights, plans,
equity incentive or achievement plans or any similar plans or setting aside of
any funds for the foregoing purposes.

          “Documentation Agent” shall have the meaning assigned to such term in the
preamble hereto.

          “dollars” or “$” shall mean lawful money of the United States.

          “Domestic Subsidiary” shall mean any Subsidiary that is organized or
existing under the laws of the United States, any state thereof or the District
of Columbia.

          “Eligible Assignee” shall mean (a) any Lender, (b) an Affiliate of any
Lender, (c) an Approved Fund and (d) any other person approved by the
Administrative Agent (such approval not to be unreasonably withheld or
delayed); provided that “Eligible Assignee” shall not include Borrowers or any
of their Affiliates or Subsidiaries or any natural person.

          “Embargoed Person” shall have the meaning assigned to such term in
Section 6.21.

          “Environment” shall mean ambient air, surface water and groundwater
(including potable water, navigable water and wetlands), the land surface or
subsurface strata, natural resources, the workplace or as otherwise defined in
any Environmental Law.

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          “Environmental Claim” shall mean any claim, notice, demand, order, action,
suit, proceeding or other communication alleging liability for investigation,
remediation, removal, cleanup, response, corrective action, damages to natural
resources, personal injury, property damage, fines, penalties or other costs
resulting from, related to or arising out of (i) the presence, Release or
threatened Release in or into the Environment of Hazardous Material at any
location or (ii) any violation of Environmental Law, and shall include any
claim seeking damages, contribution, indemnification, cost recovery,
compensation or injunctive relief resulting from, related to or arising out of
the presence, Release or threatened Release of Hazardous Material or alleged
injury or threat of injury to health, safety or the Environment.

          “Environmental Law” shall mean any and all applicable present and future
treaties, laws, statutes, ordinances, regulations, rules, decrees, orders,
judgments, consent orders, consent decrees, code or other binding requirements,
and the common law, relating to protection of public health or the Environment,
the Release or threatened Release of Hazardous Material, natural resources or
natural resource damages, or occupational safety or health.

          “Environmental Permit” shall mean any permit, license, approval, consent
or other authorization required by or from a Governmental Authority under
Environmental Law.

          “Equipment” shall have the meaning assigned to such term in the Security
Agreement.

          “Equity Interest” shall mean, with respect to any person, any and all
shares, interests, participations or other equivalents, including membership
interests (however designated, whether voting or nonvoting), of equity of such
person, including, if such person is a partnership, partnership interests
(whether general or limited) and any other interest or participation that
confers on a person the right to receive a share of the profits and losses of,
or distributions of property of, such partnership, whether outstanding on the
date hereof or issued after the Closing Date, but excluding debt securities
convertible or exchangeable into such equity.

          “Equity Issuance” shall mean, without duplication, (i) any issuance or
sale by Holdings after the Closing Date of any Equity Interests in Holdings
(including any Equity Interests issued upon exercise of any warrant or option)
or any warrants or options to purchase Equity Interests or (ii) any
contribution to the capital of Holdings; provided, however, that an Equity
Issuance shall not include (x) any Debt Issuance or (y) any such sale or
issuance by Holdings of not more than an aggregate amount of 7.0% of its Equity
Interests (including its Equity Interests issued upon exercise of any warrant
or option or warrants or options to purchase its Equity Interests but excluding
Disqualified Capital Stock), in each case, to directors, officers or employees
of any Company.

          “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as
the same may be amended from time to time.

          “ERISA Affiliate” shall mean, with respect to any person, any trade or
business (whether or not incorporated) that, together with such person, is
treated as a single employer under Section 414 of the Code.

          “ERISA Event” shall mean (a) any “reportable event,” as defined in Section
4043 of ERISA or the regulations issued thereunder, with respect to a Plan
(other than an event for which the 30-day notice period is waived by
regulation); (b) the existence with respect to any Plan of an “accumulated
funding deficiency” (as defined in Section 412 of the Code or Section 302 of
ERISA), whether or not waived; (c) the failure to make by its due date a
required installment under Section 412(m) of the Code

-12-

 

with respect to any Plan or the failure to make any required contribution
to a Multiemployer Plan; (d) the filing pursuant to Section 412(d) of the Code
or Section 303(d) of ERISA of an application for a waiver of the minimum
funding standard with respect to any Plan; (e) the incurrence by any Company or
any of its ERISA Affiliates of any liability under Title IV of ERISA with
respect to the termination of any Plan; (f) the receipt by any Company or any
of its ERISA Affiliates from the PBGC or a plan administrator of any notice
relating to the intention to terminate any Plan or Plans or to appoint a
trustee to administer any Plan, or the occurrence of any event or condition
which could reasonably be expected to constitute grounds under ERISA for the
termination of, or the appointment of a trustee to administer, any Plan; (g)
the incurrence by any Company or any of its ERISA Affiliates of any liability
with respect to the withdrawal from any Plan or Multiemployer Plan; (h) the
receipt by any Company or its ERISA Affiliates of any notice, concerning the
imposition of Withdrawal Liability or a determination that a Multiemployer Plan
is, or is expected to be, insolvent or in reorganization, within the meaning of
Title IV of ERISA; (i) the “substantial cessation of operations” within the
meaning of Section 4062(e) of ERISA with respect to a Plan; and (j) the making
of any amendment to any Plan which could result in the imposition of a lien or
the posting of a bond or other security.

          “Eurodollar Borrowing” shall mean a Borrowing comprised of Eurodollar
Loans.

          “Eurodollar Loan” shall mean any Loan bearing interest at a rate
determined by reference to the Adjusted LIBOR Rate in accordance with the
provisions of Article II.

          “Event of Default” shall have the meaning assigned to such term in
Section 8.01.

          “Excess Amount” shall have the meaning assigned to such term in Section
2.10(h).

          “Excess Cash Flow” shall mean Consolidated EBITDA for the Excess Cash Flow
Period, minus, without duplication:

     (a) Debt Service for the Excess Cash Flow Period;

     (b) any voluntary prepayments of Loans, so long as such amounts are
not already reflected in Debt Service, during the Excess Cash Flow
Period;

     (c) Capital Expenditures during the Excess Cash Flow Period that are
paid in cash;

     (d) taxes of Holdings and its Subsidiaries that were paid in cash
during the Excess Cash Flow Period or will be paid within six months
after the end of the Excess Cash Flow Period and for which reserves have
been established;

     (e) the absolute value of the difference, if negative, of the amount
of Net Working Capital at the beginning of the Excess Cash Flow Period
over the amount of Net Working Capital at the end of the Excess Cash Flow
Period;

     (f) losses excluded from the calculation of Consolidated Net Income
by operation of clause (c) or (g) of the definition thereof that are paid
in cash during the Excess Cash Flow Period;

     (g) to the extent added to Consolidated Net Income to determine
Consolidated EBITDA, all items that did not result from a cash payment to
Holdings or any of its Subsidiaries on a consolidated basis during the
Excess Cash Flow Period; and

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     (h) the proceeds of any business interruption insurance to the
extent not constituting Net Cash Proceeds of a Casualty Event,

plus, without duplication:

     (i) the difference, if positive, of the amount of Net Working
Capital at the beginning of the Excess Cash Flow Period over the amount
of Net Working Capital at the end of the Excess Cash Flow Period;

     (ii) all proceeds received during the Excess Cash Flow Period of any
Indebtedness to the extent used to finance any Capital Expenditure;

     (iii) income or gain excluded from the calculation of Consolidated
Net Income by operation of clause (c) or (g) of the definition thereof
that is realized in cash during the Excess Cash Flow Period (except to
the extent such gain is subject to Section 2.10(c), (d),
(e), or (f)); and

     (iv) to the extent subtracted in determining Consolidated EBITDA,
all items that did not result from a cash payment by Holdings or any of
its Subsidiaries on a consolidated basis during the Excess Cash Flow
Period.

          “Excess Cash Flow Period” shall mean the fiscal year of Holdings ending
December 31, 2005.

          “Excluded Account” shall mean any deposit account of any Company that is
(i) a payroll, 401(k) or insurance disbursement account for such Company, (ii)
an account such Company maintains solely to fund chargebacks payable to credit
card processors, (iii) an account listed on Schedule 6.01(a) that
collateralizes letters of credit, so long as the amount in such account does
not increase from the amount set forth in such Schedule and (iv) an account as
to which the instruction referred to in Section 6.23 shall have been
given.

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

          “Excluded Taxes” shall mean, with respect to the Administrative Agent, any
Lender or any other recipient of any payment to be made by or on account of any
obligation of Borrowers hereunder, (a) taxes imposed on or measured by its
overall net income (however denominated), and franchise taxes imposed on it (in
lieu of net income taxes) and branch profits taxes imposed on it, by the
jurisdiction (or any political subdivision thereof) under the laws of which
such recipient is organized or in which its principal office is located or, in
the case of any Lender, in which its applicable lending office is located and
(b) in the case of a Foreign Lender (other than an assignee pursuant to a
request by Borrowers under Section 2.16), any U.S. federal withholding
tax that is imposed on amounts payable to such Foreign Lender at the time such
Foreign Lender becomes a party hereto (or designates a new lending office) or
is attributable to such Foreign Lender’s failure to comply with Section
2.15(e), except to the extent that such Foreign Lender (or its assignor, if
any) was entitled, at the time of designation of a new lending office (or
assignment), to receive additional amounts from Borrowers with respect to such
withholding tax pursuant to Section 2.15(a); provided that this clause
(b) shall not apply to any Tax
imposed on a Lender in connection with an interest or participation in any
Loan or other obligation that such Lender was required to acquire pursuant to
Section 2.14(c).

          “Executive Order” shall have the meaning assigned to such term in
Section 3.22.

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          “Existing Lien” shall have the meaning assigned to such term in Section
6.02(c).

          “FCC” means the U.S. Federal Communications Commission, or any successor
thereto.

          “FCC Licenses” has the meaning assigned to such term in Section
3.23.

          “FCC Rules” means the published rules, policies and regulations of the
FCC.

          “Federal Funds Effective Rate” shall mean, for any day, the weighted
average of the rates on overnight federal funds transactions with members of
the Federal Reserve System of the United States arranged by federal funds
brokers, as published on the next succeeding Business Day by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day that
is a Business Day, the average of the quotations for the day for such
transactions received by the Administrative Agent from three federal funds
brokers of recognized standing selected by it.

          “Fee Letter” shall mean the confidential Fee Letter, dated October 11,
2004, among the Public Companies, UBS Loan Finance LLC and UBS Securities LLC.

          “Financial Officer” of any person shall mean the chief executive officer,
chief financial officer, principal accounting officer, treasurer or controller
of such person.

          “FIRREA” shall mean the Federal Institutions Reform, Recovery and
Enforcement Act of 1989, as amended.

          “Foreign Lender” shall mean any Lender that is not, for United States
federal income tax purposes, (i) an individual who is a citizen or resident of
the United States, (ii) a corporation, partnership or other entity treated as a
corporation or partnership created or organized in or under the laws of the
United States, or any political subdivision thereof, (iii) an estate whose
income is subject to U.S. federal income taxation regardless of its source or
(iv) a trust if a court within the United States is able to exercise primary
supervision over the administration of such trust and one or more United States
persons have the authority to control all substantial decisions of such trust.

          “Foreign Plan” shall mean any employee benefit plan, program, policy,
arrangement or agreement maintained or contributed to by any Company with
respect to employees employed outside the United States.

          “Foreign Subsidiary” shall mean a Subsidiary that is organized under the
laws of a jurisdiction other than the United States or any state thereof or the
District of Columbia.

          “Full Quarter Factor” means the quotient obtained by dividing (a) the
number of days in the fourth quarter of 2004 (i.e., 92) by (b) the number of
days in the period from and including the Closing Date to and including the
last day of the fourth fiscal quarter of 2004 (i.e., 46).

          “Fund” shall mean any person that is (or will be) engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar
extensions of credit in the ordinary course of its business.

          “GAAP” shall mean generally accepted accounting principles in the United
States applied on a consistent basis.

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          “Governmental Authority” shall mean the government of the United States of
America or any other nation, or of any political subdivision thereof, whether
state, provincial or local, and any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government (including any supra-national bodies such as the
European Union or the European Central Bank).

          “Governmental Real Property Disclosure Requirements” shall mean any
Requirement of Law of any Governmental Authority requiring notification of the
buyer, lessee, mortgagee, assignee or other transferee of any Real Property,
facility, establishment or business, or notification, registration or filing to
or with any Governmental Authority, in connection with the sale, lease,
mortgage, assignment or other transfer (including any transfer of control) of
any Real Property, facility, establishment or business, of the actual or
threatened presence or Release in or into the Environment, or the use, disposal
or handling of Hazardous Material on, at, under or near the Real Property,
facility, establishment or business to be sold, leased, mortgaged, assigned or
transferred.

          “GTES” shall mean GTES, LLC, a Delaware limited liability company.

          “Guaranteed Obligations” shall have the meaning assigned to such term in
Section 7.01.

          “Guarantees” shall mean the guarantees issued pursuant to Article
VII by the Guarantors.

          “Guarantor” shall mean Holdings and each Subsidiary listed on Schedule
1.01(b) and each other Subsidiary that is or becomes a party to this
Agreement pursuant to Section 5.11.

          “Hazardous Materials” shall mean the following: hazardous substances;
hazardous wastes; polychlorinated biphenyls (“PCBs”) or any substance or
compound containing PCBs; asbestos or any asbestos-containing materials in any
form or condition; radon or any other radioactive materials including any
source, special nuclear or by-product material; petroleum, crude oil or any
fraction thereof; and any other pollutant or contaminant or chemicals, wastes,
materials, compounds, constituents or substances, subject to regulation or
which can give rise to liability under any Environmental Laws.

          “Hedging Agreement” shall mean any swap, cap, collar, forward purchase or
similar agreements or arrangements dealing with interest rates, currency
exchange rates or commodity prices, either generally or under specific
contingencies (including any option with respect to any of the foregoing and
any combination of the foregoing agreements or arrangements).

          “Hedging Obligations” shall mean obligations under or with respect to
Hedging Agreements.

          “Holding Company” shall mean Holdings and each Subsidiary of Holdings
other than Borrowers and each Subsidiary of a Borrower.

          “Indebtedness” of any person shall mean, without duplication, (a) all
obligations of such person for borrowed money or advances; (b) all obligations
of such person evidenced by bonds, debentures, notes or similar instruments; (c) all obligations of such person
under conditional sale or other title retention agreements relating to property
purchased by such person; (d) all obligations of such person issued or assumed
as the deferred purchase price of property or services (excluding trade
accounts payable and accrued obligations incurred in the ordinary course of
business; (e) all Indebtedness of others secured

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by any Lien on property owned
or acquired by such person, whether or not the obligations secured thereby have
been assumed, but limited to the lower of (x) the principal amount of such
Indebtedness and (y) the fair market value of such property determined in good
faith by a Financial Officer of such Person; (f) all Capital Lease Obligations,
Purchase Money Obligations and synthetic lease obligations of such person; (g)
all Hedging Obligations to the extent required to be reflected on a balance
sheet of such person; (h) all Attributable Indebtedness of such person; (i) all
obligations of such person for the reimbursement of any obligor in respect of
letters of credit, letters of guaranty, bankers’ acceptances and similar credit
transactions; and (j) all Contingent Obligations of such person in respect of
Indebtedness or obligations of others of the kinds referred to in clauses (a)
through (i) above. The Indebtedness of any person shall include the
Indebtedness of any other entity (including any partnership in which such
person is a general partner) to the extent such person is liable therefor as a
result of such person’s ownership interest in or other relationship with such
entity, except (other than in the case of general partner liability) to the
extent that terms of such Indebtedness expressly provide that such person is
not liable therefor.

          “Indemnified Taxes” shall mean all Taxes other than Excluded Taxes.

          “Indemnitee” shall have the meaning assigned to such term in Section
10.03(b).

          “Independent Public Accountants” shall mean (a) with respect to Arch
Public, (i) Arthur Andersen LLP as of and for the fiscal year ended 2001, and
(ii) PricewaterhouseCoopers LLC as of and for the fiscal years ended 2002 and
2003, and (b) with respect to Metrocall Public, (i) Arthur Andersen LLP as of
and for the fiscal year ended 2001, and (ii) Ernst & Young LLP as of and for
the fiscal years ended 2002 and 2003.

          “Information” shall have the meaning assigned to such term in Section
10.12.

          “Insurance Policies” shall mean the insurance policies and coverages
required to be maintained by each Loan Party which is an owner of Mortgaged
Property with respect to the applicable Mortgaged Property pursuant to
Section 5.04 and all renewals and extensions thereof.

          “Insurance Requirements” shall mean, collectively, all provisions of the
Insurance Policies, all requirements of the issuer of any of the Insurance
Policies and all orders, rules, regulations and any other requirements of the
National Board of Fire Underwriters (or any other body exercising similar
functions) binding upon each Loan Party which is an owner of Mortgaged Property
and applicable to the Mortgaged Property or any use or condition thereof.

          “Intellectual Property” shall have the meaning assigned to such term in
Section 3.06(a).

          “Intercompany Note” shall mean a promissory note substantially in the form
of Exhibit N.

          “Interest Election Request” shall mean a request by Borrowers to convert
or continue a Borrowing in accordance with Section 2.08(b),
substantially in the form of Exhibit E.

          “Interest Payment Date” shall mean (a) with respect to any ABR Loan, the
last Business Day of each March, June, September and December to occur during
any period in which such Loan is outstanding, (b) with respect to any
Eurodollar Loan, the last day of the Interest Period applicable to the
Borrowing of which such Loan is a part and, in the case of a Eurodollar Loan
with an Interest Period of more than three months’ duration, each day prior to
the last day of such Interest Period that occurs at

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intervals of three months’
duration after the first day of such Interest Period, and (c) with respect to
any Loan, the Maturity Date.

          “Interest Period” shall mean, with respect to any Eurodollar Borrowing,
the period commencing on the date of such Borrowing and ending on the
numerically corresponding day in the calendar month that is one, two, three or
six months (or, if each affected Lender so agrees, nine months) thereafter, as
Borrowers may elect; provided that (a) if any Interest Period would end on a
day other than a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless such next succeeding Business Day would
fall in the next calendar month, in which case such Interest Period shall end
on the next preceding Business Day, and (b) any Interest Period that commences
on the last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the last calendar month of such Interest
Period) shall end on the last Business Day of the last calendar month of such
Interest Period. For purposes hereof, the date of a Borrowing initially shall
be the date on which such Borrowing is made and thereafter shall be the
effective date of the most recent conversion or continuation of such Borrowing.

          “Investments” shall have the meaning assigned to such term in Section
6.04.

          “Joinder Agreement” shall mean a joinder agreement substantially in the
form of Exhibit F.

          “Landlord’s Lien Waiver, Access Agreement and Consent” shall mean a
Landlord Lien Waiver, Access Agreement and Consent substantially in the form of
Exhibit G, or such other form as may reasonably be acceptable to the
Administrative Agent.

          “Leases” shall mean any and all leases, subleases, master leases, ground
leases, tenancies, options, concession agreements, rental agreements, occupancy
agreements, franchise agreements, access agreements and any other agreements
(including all amendments, extensions, replacements, renewals, modifications
and/or guarantees thereof), whether or not of record and whether now in
existence or hereafter entered into, affecting the use or occupancy of all or
any portion of any Real Property, to which any Loan Party is a party as lessor
or lessee.

          “Lender Addendum” shall mean with respect to any Lender on the Closing
Date, a lender addendum in the form of Exhibit H, to be executed and
delivered by such Lender on the Closing Date as provided in Section
10.15.

          “Lenders” shall mean (a) the financial institutions that have become a
party hereto pursuant to a Lender Addendum and (b) any financial institution
that has become a party hereto pursuant to an Assignment and Assumption, other
than, in each case, any such financial institution that has ceased to be a
party hereto pursuant to an Assignment and Assumption.

          “LIBOR Rate” shall mean, with respect to any Eurodollar Borrowing for any
Interest Period, the rate per annum determined by the Administrative Agent to
be the arithmetic mean (rounded upward, if necessary, to the nearest 1/100th of
1%) of the offered rates for deposits in dollars with a term
comparable to such Interest Period that appears on the Telerate British
Bankers Assoc. Interest Settlement Rates Page (as defined below) at
approximately 11:00 a.m., London, England time, on the second full Business Day
preceding the first day of such Interest Period; provided, however, that (i) if
no comparable term for an Interest Period is available, the LIBOR Rate shall be
determined using the weighted average of the offered rates for the two terms
most nearly corresponding to such Interest Period and (ii) if there

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shall at
any time no longer exist a Telerate British Bankers Assoc. Interest Settlement
Rates Page, “LIBOR Rate” shall mean, with respect to each day during each
Interest Period pertaining to Eurodollar Borrowings comprising part of the same
Borrowing, the rate per annum equal to the rate at which the Administrative
Agent is offered deposits in dollars at approximately 11:00 a.m., London,
England time, two Business Days prior to the first day of such Interest Period
in the London interbank market for delivery on the first day of such Interest
Period for the number of days comprised therein and in an amount comparable to
its portion of the amount of such Eurodollar Borrowing to be outstanding during
such Interest Period. “Telerate British Bankers Assoc. Interest Settlement
Rates Page” shall mean the display designated as Page 3750 on the Telerate
System Incorporated Service (or such other page as may replace such page on
such service for the purpose of displaying the rates at which dollar deposits
are offered by leading banks in the London interbank deposit market).

          “License Subsidiary” means (i) each of Metrocall USA, Inc. and Arch
Wireless License Co., LLC and (ii) any other Subsidiary (whether existing on
the Closing Date or subsequently formed or acquired) designated as a License
Subsidiary by written notice to the Administrative Agent.

          “Lien” shall mean, with respect to any property, (a) any mortgage, deed of
trust, lien, pledge, encumbrance, claim, charge, assignment, hypothecation,
security interest or encumbrance of any kind or any arrangement to provide
priority or preference or any filing of any financing statement under the UCC
or any other similar notice of lien under any similar notice or recording
statute of any Governmental Authority, including any easement, right-of-way or
other encumbrance on title to Real Property, in each of the foregoing cases
whether voluntary or imposed by law, and any agreement to give any of the
foregoing; and (b) the interest of a vendor or a lessor under any conditional
sale agreement, capital lease or title retention agreement relating to such
property.

          “Loan Documents” shall mean this Agreement, the Notes (if any), the
Security Documents, and, solely for purposes of paragraph (e) of Section
8.01, the Fee Letter.

          “Loan Parties” shall mean Borrowers and the Guarantors.

          “Loans” shall have the meaning assigned in Section 2.02.

          “Margin Stock” shall have the meaning assigned to such term in Regulation
U.

          “Material Adverse Effect” shall mean (a) a material adverse effect on the
business, results of operations, condition (financial or otherwise), assets or
liabilities of Holdings and its Subsidiaries, taken as a whole; (b) material
impairment of the ability of the Loan Parties to fully and timely perform any
of their obligations under any Loan Document; (c) material impairment of the
rights of or benefits or remedies available to the Lenders or the Collateral
Agent under any Loan Document; or (d) a material adverse effect on the
Collateral or the Liens in favor of the Collateral Agent (for its benefit and
for the benefit of the other Secured Parties) on the Collateral or the priority
of such Liens.

          “Material Lease” shall mean any Lease (or group of Leases affecting the
same or adjacent property), if such Lease (or Leases) (i) provides for
aggregate rental payments (including base rent,
additional rent, escalations and other payments) that will or are likely
to exceed $250,000 per year or (ii) is a master lease relating to tower site
leases.

          “Maturity Date” shall mean November 16, 2006.

          “Maximum Rate” shall have the meaning assigned to such term in Section
10.14.

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          “Merger Agreement” shall have the meaning assigned to such term in the
first recital hereto.

          “Merger Documents” shall mean the collective reference to the Merger
Agreement and the other documents related thereto.

          “Mergers” shall have the meaning assigned to such term in the first
recital hereto.

          “Metrocall” shall have the meaning assigned to such term in the preamble
hereto.

          “Metrocall Merger” shall have the meaning assigned to such term in the
first recital hereto.

          “Metrocall Public” shall have the meaning assigned to such term in the
first recital hereto.

          “Minimum Balance” shall mean $35.0 million or such lesser amount as is (x)
equal to the aggregate principal amount of outstanding Loans or (y) agreed to
by (i) prior to the Closing Date, the Administrative Agent and (ii) on or after
the Closing Date, the Required Lenders.

          “Mortgage” shall mean an agreement, including, but not limited to, a
mortgage, deed of trust or any other document, creating and evidencing a Lien
on a Mortgaged Property, which shall be in a form reasonably satisfactory to
the Collateral Agent, with such schedules and including such provisions as
shall be necessary to conform such document to applicable local or foreign law
or as shall be customary under applicable local or foreign law.

          “Mortgaged Property” shall mean each Real Property, if any, which shall be
subject to a Mortgage delivered after the Closing Date pursuant to Section
5.11(c).

          “Multiemployer Plan” shall mean a multiemployer plan within the meaning of
Section 4001(a)(3) or Section 3(37) of ERISA (a) to which any Company or any
ERISA Affiliate is then making or accruing an obligation to make contributions;
(b) to which any Company or any ERISA Affiliate has within the preceding five
plan years made contributions; or (c) with respect to which any Company could
incur liability.

          “Net Cash Proceeds” shall mean:

     (a) with respect to any Asset Sale (other than any issuance or sale
of Equity Interests), the cash proceeds received by Holdings or any of
its Subsidiaries (including cash proceeds subsequently received (as and
when received by Holdings or any of its Subsidiaries) in respect of
non-cash consideration initially received) in respect of such Asset Sale
net of (i) out-of-pocket expenses (including reasonable brokers’ fees or
commissions, legal, accounting and other professional and transactional fees, transfer and similar taxes and
Holdings’ good faith estimate of income taxes paid or payable in
connection with such sale); (ii) amounts provided as a reserve, in
accordance with GAAP, against (x) any liabilities under any
indemnification obligations (whether fixed or contingent) associated with
such Asset Sale or (y) any other liabilities retained by Holdings or any
of its Subsidiaries associated with the properties sold in such Asset
Sale (provided that, to the extent and at the time any such amounts are
released from such reserve, such amounts shall constitute Net Cash
Proceeds); (iii) Holdings’ good faith estimate of payments required to be
made with respect to unassumed liabilities relating to the properties
sold within 360 days of

-20-

 

such Asset Sale (provided that, to the extent
such cash proceeds are not used to make payments in respect of such
unassumed liabilities within 360 days of such Asset Sale, such cash
proceeds shall constitute Net Cash Proceeds); and (iv) the principal
amount, premium or penalty, if any, interest and other amounts on any
Indebtedness for borrowed money which is secured by a Lien on the
properties sold in such Asset Sale (so long as such Lien was permitted to
encumber such properties under the Loan Documents at the time of such
sale) and which is repaid with such proceeds (other than any such
Indebtedness assumed by the purchaser of such properties);

     (b) with respect to any Debt Issuance, any Equity Issuance or any
other issuance or sale of Equity Interests by Holdings or any of its
Subsidiaries, the cash proceeds thereof, net of customary fees,
commissions, costs, taxes and other expenses incurred in connection
therewith (it being understood that cash proceeds shall not be deemed to
have been received in any “cashless exercise” of options or warrants);
and

     (c) with respect to any Casualty Event, the cash insurance proceeds,
condemnation awards and other compensation received in respect thereof,
net of all reasonable costs and expenses (including reasonable brokers’
fees or commissions, legal, accounting and other professional and
transactional fees, transfer and similar taxes and Holdings’ good faith
estimate of income taxes paid or payable in connection with such event)
incurred in connection with the collection of such proceeds, awards or
other compensation in respect of such Casualty Event and excluding the
proceeds of business interruption insurance to the extent payable solely
in respect of lost income and not in respect of any property.

          “Net Working Capital” shall mean, at any time, Consolidated Current Assets
at such time minus Consolidated Current Liabilities at such time.

          “Non-Excluded Account” means a deposit account that is not an Excluded
Account.

          “Non-Guarantor Subsidiary” shall mean each Subsidiary (other than
Borrowers) that is not a Guarantor.

          “Notes” shall mean any notes evidencing the Loans issued pursuant to this
Agreement, if any, substantially in the form of Exhibit I.

          “Obligations” shall mean (a) obligations of Borrowers and the other Loan
Parties from time to time arising under or in respect of the due and punctual
payment of (i) the principal of and premium, if any, and interest (including
interest accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding) on the Loans, when and as due, whether at
maturity, by acceleration, upon one or more dates set for prepayment or
otherwise, and (ii) all other monetary obligations, including fees, costs,
expenses and indemnities, whether primary, secondary, direct, contingent, fixed
or otherwise (including monetary obligations
incurred during the pendency of any bankruptcy, insolvency, receivership
or other similar proceeding, regardless of whether allowed or allowable in such
proceeding), of Borrowers and the other Loan Parties under this Agreement and
the other Loan Documents and (b) the due and punctual performance of all
covenants, agreements, obligations and liabilities of Borrowers and the other
Loan Parties under or pursuant to this Agreement and the other Loan Documents.

          “OFAC” shall have the meaning assigned to such term in Section
3.22.

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          “Officers’ Certificate” shall mean a certificate executed by the chairman
of the Board of Directors (if an officer), the chief executive officer or the
president (or, for the purposes of Section 2.10 only, a vice president)
and one of the Financial Officers, each in his or her official (and not
individual) capacity.

          “Organizational Documents” shall mean, with respect to any person, (i) in
the case of any corporation, the certificate of incorporation and by-laws (or
similar documents) of such person, (ii) in the case of any limited liability
company, the certificate of formation and operating agreement (or similar
documents) of such person, (iii) in the case of any limited partnership, the
certificate of formation and limited partnership agreement (or similar
documents) of such person, (iv) in the case of any general partnership, the
partnership agreement (or similar document) of such person and (v) in any other
case, the functional equivalent of the foregoing.

          “Other Taxes” shall mean all present or future stamp or documentary taxes
or any other excise or property taxes, charges or similar levies arising from
any payment made hereunder or under any other Loan Document or from the
execution, delivery or enforcement of, or otherwise with respect to, this
Agreement or any other Loan Document.

          “Participant” shall have the meaning assigned to such term in Section
10.04(d).

          “PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and
defined in ERISA.

          “Perfection Certificate” shall mean a certificate in the form of
Exhibit J-1 or any other form approved by the Collateral Agent, as the
same shall be supplemented from time to time by a Perfection Certificate
Supplement or otherwise.

          “Perfection Certificate Supplement” shall mean a certificate supplement in
the form of Exhibit J-2 or any other form approved by the Collateral
Agent.

          “Permitted Acquisition” shall mean any transaction or series of related
transactions for the direct or indirect (a) acquisition of all or substantially
all of the property of any person, or of any business or division of any
person; (b) acquisition of in excess of 50% of the Equity Interests of any
person, and otherwise causing such person to become a Subsidiary of such
person; or (c) merger, amalgamation or consolidation or any other combination
with any person, if each of the following conditions is met:

     (i) no Default then exists or would result therefrom;

     (ii) after giving effect to such transaction on a Pro Forma Basis,
(A) Holdings shall be in compliance with all covenants set forth in
Section 6.10 as of the most recent Test Period (assuming, for
purposes of Section 6.10, that such transaction, and all other
Permitted Acquisitions consummated since the first day of the relevant
Test Period for each of the financial covenants set forth in Section 6.10 ending on or
prior to the date of such transaction, had occurred on the first day of
such relevant Test Period), and (B) unless expressly approved by the
Administrative Agent, the person or business to be acquired shall not
have generated more than $2.0 million in negative cash flow for the Test
Period most recently ended prior to the date of consummation of such
acquisition;

     (iii) no Company shall, in connection with any such transaction,
assume or remain liable with respect to any Indebtedness or other
liability (including any material tax or ERISA liability)

-22-

 

of the related
seller or the business, person or properties acquired, except (A) to the
extent permitted under Section 6.01 and (B) obligations not
constituting Indebtedness incurred in the ordinary course of business and
necessary or desirable to the continued operation of the underlying
properties, and any other such liabilities or obligations not permitted
to be assumed or otherwise supported by any Company hereunder shall be
paid in full or released as to the business, persons or properties being
so acquired on or before the consummation of such acquisition;

     (iv) the person or business to be acquired shall be, or shall be
engaged in, a business of the type that Holdings and the Subsidiaries are
permitted to be engaged in under Section 6.15 and the property
acquired in connection with any such transaction shall be made subject to
the Lien of the Security Documents and shall be free and clear of any
Liens, other than Permitted Liens;

     (v) the Board of Directors of the person to be acquired shall not
have indicated publicly its opposition to the consummation of such
acquisition (which opposition has not been publicly withdrawn);

     (vi) all transactions in connection therewith shall be consummated
in accordance with all applicable Requirements of Law;

     (vii) (A) a reasonably detailed description of all material
information relating to such transaction and copies of all material
documentation pertaining thereto and (B) all such other information and
data relating to such transaction or the person or business to be
acquired as may be reasonably requested by the Administrative Agent or
the Required Lenders;

     (viii) at least 5 Business Days prior to the proposed date of
consummation of the transaction, Holdings shall have delivered to the
Agents and the Lenders an Officers’ Certificate certifying that (A) such
transaction complies with this definition (which shall have attached
thereto reasonably detailed backup data and calculations showing such
compliance), and (B) such transaction could not reasonably be expected to
result in a Material Adverse Effect; and

     (ix) the aggregate amount of the Acquisition Consideration for all
Permitted Acquisitions since the Closing Date shall not exceed $5.0
million; provided that any Equity Interests constituting all or a portion
of such Acquisition Consideration shall not have a cash dividend
requirement on or prior to the Maturity Date.

          “Permitted Liens” shall have the meaning assigned to such term in
Section 6.02.

          “Permitted Tax Distributions” shall mean payments, dividends or
distributions by the Subsidiaries to Holdings or any Holding Company in order
to pay consolidated or combined federal, state
or local taxes not payable directly by the Subsidiaries which payments by
the Subsidiaries (taken as a whole) are not in excess of the tax liabilities
that would have been payable by the Subsidiaries (taken as a whole) on a
stand-alone basis.

          “person” shall mean any natural person, corporation, limited liability
company, trust, joint venture, association, company, partnership, Governmental
Authority or other entity.

          “Plan” shall mean any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA which

-23-

 

is maintained or contributed to
by any Company or its ERISA Affiliate or with respect to which any Company
could incur liability (including under Section 4069 of ERISA).

          “Premises” shall have the meaning assigned thereto in the applicable
Mortgage.

          “Pro Forma Basis” shall mean on a basis in accordance with GAAP and
Regulation S-X and otherwise reasonably satisfactory to the Administrative
Agent.

          “property” shall mean any right, title or interest in or to property or
assets of any kind whatsoever, whether real, personal or mixed and whether
tangible or intangible and including Equity Interests or other ownership
interests of any person and whether now in existence or owned or hereafter
entered into or acquired, including all Real Property.

          “Property Material Adverse Effect” shall have the meaning assigned thereto
in the Mortgage.

          “Public Companies” shall have the meaning assigned to such term in the
first recital hereto.

          “Purchase Money Obligation” shall mean, for any person, the obligations of
such person in respect of Indebtedness (including Capital Lease Obligations)
incurred for the purpose of financing all or any part of the purchase price of
any property (including Equity Interests of any person) or the cost of
installation, construction or improvement of any property and any refinancing
thereof; provided, however, that (i) such Indebtedness is incurred within one
year after such acquisition of such property by such person and (ii) the amount
of such Indebtedness does not exceed 100% of the cost of such acquisition,
installation, construction or improvement, as the case may be, plus the
reasonable costs and expenses related thereto.

          “Qualified Capital Stock” of any person shall mean any Equity Interests of
such person that are not Disqualified Capital Stock.

          “Real Property” shall mean, collectively, all right, title and interest
(including any leasehold, mineral or other estate) in and to any and all
parcels of or interests in real property owned, leased or operated by any
person, whether by lease, license or other means, together with, in each case,
all easements, hereditaments and appurtenances relating thereto, all
improvements and appurtenant fixtures and equipment, all general intangibles
and contract rights and other property and rights incidental to the ownership,
lease or operation thereof.

          “Register” shall have the meaning assigned to such term in Section
10.04(c).

          “Regulation D” shall mean Regulation D of the Board as from time to time
in effect and all official rulings and interpretations thereunder or thereof.

          “Regulation S-X” shall mean Regulation S-X promulgated under the
Securities Act.

          “Regulation T” shall mean Regulation T of the Board as from time to time
in effect and all official rulings and interpretations thereunder or thereof.

          “Regulation U” shall mean Regulation U of the Board as from time to time
in effect and all official rulings and interpretations thereunder or thereof.

-24-

 

          “Regulation X” shall mean Regulation X of the Board as from time to time
in effect and all official rulings and interpretations thereunder or thereof.

          “Related Parties” shall mean, with respect to any person, such person’s
Affiliates and the partners, directors, officers, employees, agents and
advisors of such person and of such person’s Affiliates.

          “Release” shall mean any spilling, leaking, seepage, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, dumping,
disposing, depositing, dispersing, emanating or migrating of any Hazardous
Material in, into, onto or through the Environment.

          “Required Lenders” shall mean Lenders having, on or after the Closing
Date, more than 50% of the sum of all Loans outstanding.

          “Requirements of Law” shall mean, collectively, any and all requirements
of any Governmental Authority including any and all laws, judgments, orders,
decrees, ordinances, rules, regulations, statutes or case law.

          “Response” shall mean (a) “response” as such term is defined in CERCLA, 42
U.S.C. § 9601(24), and (b) all other actions required by any Governmental
Authority or voluntarily undertaken to (i) clean up, remove, treat, abate or in
any other way address any Hazardous Material in the environment; (ii) prevent
the Release or threat of Release, or minimize the further Release, of any
Hazardous Material; or (iii) perform studies and investigations in connection
with, or as a precondition to, clause (i) or (ii) above.

          “Responsible Officer” of any person shall mean any executive officer or
Financial Officer of such person and any other officer or similar official
thereof with responsibility for the administration of the obligations of such
person in respect of this Agreement.

          “Sale and Leaseback Transaction” has the meaning assigned to such term in
Section 6.03.

          “Secured Obligations” shall mean (i) the Obligations, (ii) the due and
punctual payment and performance of all obligations of the Loan Parties under
each Hedging Agreement entered into with any counterparty that is a Secured
Party and (iii) the due and punctual payment and performance of all obligations
in respect of overdrafts and related liabilities owed to any Lender, any
Affiliate of a Lender, the Administrative Agent or the Collateral Agent arising
from treasury, depositary and cash management services or in connection with
any automated clearinghouse transfer of funds.

          “Secured Parties” shall mean, collectively, the Administrative Agent, the
Collateral Agent, each other Agent, the Lenders and each party to a Hedging
Agreement relating to the Loans if at the date of entering into such Hedging
Agreement such person was a Lender or an Affiliate of a Lender and such person
executes and delivers to the Administrative Agent a letter agreement in form
and substance acceptable to the Administrative Agent pursuant to which such
person (i) appoints the Collateral Agent as its agent under the applicable Loan
Documents and (ii) agrees to be bound by the provisions of Sections
10.03 and 10.09.

          “Securities Act” shall mean the Securities Act of 1933, as amended.

-25-

 

          “Securities Collateral” shall have the meaning assigned to such term in
the Security Agreement.

          “Security Agreement” shall mean a Security Agreement substantially in the
form of Exhibit K among the Loan Parties and Collateral Agent for the
benefit of the Secured Parties.

          “Security Agreement Collateral” shall mean all property pledged or granted
as collateral pursuant to the Security Agreement delivered (a) on the Closing
Date or (b) thereafter pursuant to Section 5.11.

          “Security Documents” shall mean the Security Agreement, the Mortgages and
each other security document or pledge agreement delivered in accordance with
applicable local or foreign law to grant a valid, perfected security interest
in any property as collateral for the Secured Obligations, and all UCC or other
financing statements or instruments of perfection required by this Agreement,
the Security Agreement, any Mortgage or any other such security document or
pledge agreement to be filed with respect to the security interests in property
and fixtures created pursuant to the Security Agreement or any Mortgage and any
other document or instrument utilized to pledge or grant or purport to pledge
or grant a security interest or Lien on any property as collateral for the
Secured Obligations.

          “Shareholder Proceedings” shall mean (a) the two shareholder lawsuits
described in the registration statement on Form S-4 filed by Holdings with the
Securities and Exchange Commission on October 6, 2004 naming Holdings and the
Public Companies as defendants (as either or both of such shareholder lawsuits
shall have been or may be amended prior to the date hereof), (b) any suits,
actions, claims or proceedings relating to claims made by stockholders of
either of the Public Companies, so long as such suits, actions, claims and
proceedings, taken together, do not seek relief or other damages of a magnitude
substantially greater or materially different than the actions referred to in
the preceding clause (a), and (c) any demand for appraisal rights in respect of
Metrocall Public shares in an amount not exceeding the threshold set forth in
Section 7.1(h) of the Merger Agreement.

          “Specified Asset Sale” shall mean any Asset Sale that does not yield
aggregate Net Cash Proceeds in excess of $50,000.

          “Specified Asset Sale Amount” shall mean, at any time, the amount of Net
Cash Proceeds from Specified Asset Sales as of such time that have not yet been
applied to reinvestment pursuant to Section 2.10(c) or prepayment of the
Loans.

          “State PUC” shall mean any state public utility commission or any other
state commission, agency, department, board or authority with responsibility
for regulating intrastate and local telecommunications services.

          “State PUC Rules” shall mean the published rules, policies and regulations
of any State PUC.

          “Statutory Reserves” shall mean for any Interest Period for any Eurodollar
Borrowing, the average maximum rate at which reserves (including any marginal,
supplemental or emergency reserves) are required to be maintained during such
Interest Period under Regulation D by member banks of the United States Federal
Reserve System in New York City with deposits exceeding one billion dollars
against “Eurocurrency liabilities” (as such term is used in Regulation D).
Eurodollar Borrowings shall be deemed to constitute Eurodollar liabilities and
to be subject to such reserve requirements without benefit

-26-

 

of or credit for
proration, exceptions or offsets which may be available from time to time to
any Lender under Regulation D.

          “Subordinated Indebtedness” shall mean Indebtedness of a Borrower or any
Guarantor that is by its terms subordinated in right of payment to the
Obligations of such Borrower and such Guarantor, as applicable.

          “Subsidiary” shall mean, with respect to any person (the “parent”) at any
date, (i) any person the accounts of which would be consolidated with those of
the parent in the parent’s consolidated financial statements if such financial
statements were prepared in accordance with GAAP as of such date, (ii) any
other corporation, limited liability company, association or other business
entity of which securities or other ownership interests representing more than
50% of the voting power of all Equity Interests entitled (without regard to the
occurrence of any contingency) to vote in the election of the Board of
Directors thereof are, as of such date, owned, controlled or held by the parent
and/or one or more subsidiaries of the parent, (iii) any partnership (a) the
sole general partner or the managing general partner of which is the parent
and/or one or more subsidiaries of the parent or (b) the only general partners
of which are the parent and/or one or more subsidiaries of the parent and (iv)
any other person that is otherwise Controlled by the parent and/or one or more
subsidiaries of the parent. Unless the context requires otherwise,
“Subsidiary” refers to a Subsidiary of Holdings.

          “Subsidiary Guarantor” shall mean a Subsidiary of a Borrower that is
listed on Schedule 1.01(b) and each other Guarantor that is or becomes a
Subsidiary of a Borrower.

          “Survey” shall mean a survey of any Mortgaged Property (and all
improvements thereon) which is (a) (i) prepared by a surveyor or engineer
licensed to perform surveys in the jurisdiction where such Mortgaged Property
is located, (ii) dated (or redated) not earlier than six months prior to the
date of delivery thereof unless there shall have occurred within six months
prior to such date of delivery any exterior construction on the site of such
Mortgaged Property or any easement, right of way or other interest in the
Mortgaged Property has been granted or become effective through operation of
law or otherwise with respect to such Mortgaged Property which, in either case,
can be depicted on a survey, in which events, as applicable, such survey shall
be dated (or redated) after the completion of such construction or if such
construction shall not have been completed as of such date of delivery, not
earlier than 20 days prior to such date of delivery, or after the grant or
effectiveness of any such easement, right of way or other interest in the
Mortgaged Property, (iii) certified by the surveyor (in a manner reasonably
acceptable to the Administrative Agent) to the Administrative Agent, the
Collateral Agent and the Title Company, (iv) complying in all respects with the
minimum detail requirements of the American Land Title Association as such
requirements are in effect on the date of preparation of such survey and (v)
sufficient for the Title Company to remove all standard survey exceptions from
the title insurance policy (or commitment) relating to such Mortgaged Property
and issue the endorsements of the type required by Section 5.15(a)(iii)
or (b) otherwise acceptable to the Collateral Agent.

          “Syndication Agent” shall have the meaning assigned to such term in the
preamble hereto.

          “Tax Return” shall mean all returns, statements, filings, attachments and
other documents or certifications required to be filed in respect of Taxes.

-27-

 

          “Taxes” shall mean all present or future taxes, levies, imposts, duties,
deductions, withholdings, assessments, fees or other charges imposed by any
Governmental Authority, including any interest, additions to tax or penalties
applicable thereto.

          “Test Period” shall mean, at any time, the four consecutive fiscal
quarters of Holdings then last ended (in each case taken as one accounting
period) for which financial statements have been or are required to be
delivered pursuant to Section 5.01(a) or (b).

          “Title Company” shall mean any title insurance company as shall be
retained by Holdings and reasonably acceptable to the Administrative Agent.

          “Title Policy” shall have the meaning assigned to such term in Section
5.15(a)(iii).

          “Total Leverage Ratio” shall mean, at any date of determination, the ratio
of Consolidated Indebtedness on such date to Consolidated EBITDA for the Test
Period then most recently ended.

          “Transaction Documents” shall mean the Merger Documents and the Loan
Documents.

          “Transactions” shall mean, collectively, the transactions to occur on or
prior to the Closing Date pursuant to the Transaction Documents, including (a)
the consummation of the Mergers; (b) the execution, delivery and performance of
the Loan Documents and the borrowings hereunder; and (c) the payment of all
fees and expenses to be paid on or prior to the Closing Date and owing in
connection with the foregoing.

          “Transferred Guarantor” shall have the meaning assigned to such term in
Section 7.09.

          “Type,” when used in reference to any Loan or Borrowing, refers to whether
the rate of interest on such Loan, or on the Loans comprising such Borrowing,
is determined by reference to the Adjusted LIBOR Rate or the Alternate Base
Rate.

          “UCC” shall mean the Uniform Commercial Code as in effect from time to
time (except as otherwise specified) in any applicable state or jurisdiction.

          “United States” shall mean the United States of America.

          “Voting Stock” shall mean, with respect to any person, any class or
classes of Equity Interests pursuant to which the holders thereof have the
general voting power under ordinary circumstances to elect at least a majority
of the Board of Directors of such person.

          “Wholly Owned Subsidiary” shall mean, as to any person, (a) any
corporation 100% of whose capital stock (other than directors’ qualifying
shares) is at the time owned by such person and/or one or more Wholly Owned
Subsidiaries of such person and (b) any partnership, association, joint
venture, limited liability company or other entity in which such person
and/or one or more Wholly Owned Subsidiaries of such person have a 100% equity
interest at such time.

          “Withdrawal Liability” shall mean liability to a Multiemployer Plan as a
result of a complete or partial withdrawal from such Multiemployer Plan, as
such terms are defined in Part I of Subtitle E of Title IV of ERISA.

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          SECTION 1.02 Classification of Loans and Borrowings. For purposes
of this Agreement, Loans and Borrowings may be classified and referred to by
Type (e.g., a “Eurodollar Loan” or “Eurodollar Borrowing”).

          SECTION 1.03 Terms Generally. The definitions of terms herein
shall apply equally to the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include,” “includes” and
“including” shall be deemed to be followed by the phrase “without limitation.”
The word “will” shall be construed to have the same meaning and effect as the
word “shall.” Unless the context requires otherwise (a) any definition of or
reference to any Loan Document, agreement, instrument or other document herein
shall be construed as referring to such agreement, instrument or other document
as from time to time amended, supplemented or otherwise modified (subject to
any restrictions on such amendments, supplements or modifications set forth
herein), (b) any reference herein to any person shall be construed to include
such person’s successors and assigns, (c) the words “herein,” “hereof” and
“hereunder,” and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all
references herein to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
this Agreement, (e) any reference to any law or regulation herein shall refer
to such law or regulation as amended, modified or supplemented from time to
time, (f) the words “asset” and “property” shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets
and properties, including cash, securities, accounts and contract rights and
(g) “on,” when used with respect to the Mortgaged Property or any property

adjacent to the Mortgaged Property, means “on, in, under, above or about.”

          SECTION 1.04 Accounting Terms; GAAP. Except as otherwise expressly
provided herein, all financial statements to be delivered pursuant to this
Agreement shall be prepared in accordance with GAAP as in effect from time to
time and all terms of an accounting or financial nature shall be construed and
interpreted in accordance with GAAP, as in effect on the date hereof unless
otherwise agreed to by Borrowers and the Required Lenders.

          SECTION 1.05 Resolution of Drafting Ambiguities. Each Loan Party
acknowledges and agrees that it was represented by counsel in connection with
the execution and delivery of the Loan Documents to which it is a party, that
it and its counsel reviewed and participated in the preparation and negotiation
hereof and thereof and that any rule of construction to the effect that
ambiguities are to be resolved against the drafting party shall not be employed
in the interpretation hereof or thereof.

ARTICLE II

THE CREDITS

          SECTION 2.01 Commitments. Subject to the terms and conditions
and relying upon the representations and warranties herein set forth, each
Lender agrees, severally and not jointly, to make a loan to Borrowers (a
“Loan”) on the Closing Date in an aggregate principal amount equal to its
Commitment. Amounts paid or prepaid in respect of Loans may not be reborrowed.

          SECTION 2.02 Loans.

          (a) The Loans shall be made as part of a Borrowing consisting of Loans
made by the Lenders ratably in accordance with their applicable Commitments;
provided that the failure of any Lender

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to make its Loan shall not in itself
relieve any other Lender of its obligation to lend hereunder (it being
understood, however, that no Lender shall be responsible for the failure of any
other Lender to make any Loan required to be made by such other Lender).

          (b) The Borrowing on the Closing Date shall be comprised entirely of ABR
Loans. Each Lender may at its option make any Eurodollar Loan by causing any
domestic or foreign branch or Affiliate of such Lender to make such Loan;
provided that any exercise of such option shall not affect the obligation of
Borrowers to repay such Loan in accordance with the terms of this Agreement.
Borrowings of more than one Type may be outstanding at the same time; provided
that Borrowers shall not be entitled to request any Borrowing that, if made,
would result in more than seven Eurodollar Borrowings outstanding hereunder at
any one time. For purposes of the foregoing, Borrowings having different
Interest Periods, regardless of whether they commence on the same date, shall
be considered separate Borrowings.

          (c) Each Lender shall make each Loan to be made by it hereunder on the
Closing Date by wire transfer of immediately available funds to such account in
New York City as the Administrative Agent may designate not later than 11:00
a.m., New York City time, and the Administrative Agent shall promptly credit
the amounts so received to an account as directed by Borrowers in the Borrowing
Request maintained with the Administrative Agent or, if a Borrowing shall not
occur on such date because any condition precedent herein specified shall not
have been met, return the amounts so received to the respective Lenders.

          (d) Unless the Administrative Agent shall have received notice from a
Lender prior to the Closing Date that such Lender will not make available to
the Administrative Agent such Lender’s portion of such Borrowing, the
Administrative Agent may assume that such Lender has made such portion
available to the Administrative Agent on the Closing Date in accordance with
paragraph (c) above, and the Administrative Agent may, in reliance upon such
assumption, make available to Borrowers on such date a corresponding amount.
If the Administrative Agent shall have so made funds available, then, to the
extent that such Lender shall not have made such portion available to the
Administrative Agent, each of such Lender and each Borrower severally agrees to
repay to the Administrative Agent forthwith on demand such corresponding amount
together with interest thereon, for each day from the date such amount is made
available to Borrowers until the date such amount is repaid to the
Administrative Agent at (i) in the case of Borrowers, the interest rate
applicable at the time to the Loans comprising such Bor
rowing, provided that if Borrowers pay such corresponding amount to the
Administrative Agent in accordance with this clause (i), such payment shall not
release such Lender from any obligations it may have to the Borrowers hereunder
and (ii) in the case of such Lender, the greater of the Federal Funds Effective
Rate and a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation. If such Lender shall repay
to the Administrative Agent such corresponding amount, such amount shall
constitute such Lender’s Loan as part of such Borrowing for purposes of this
Agreement, and Borrowers’ obligation to repay the Administrative Agent such
corresponding amount pursuant to this Section 2.02(d) shall cease.

          (e) Notwithstanding any other provision of this Agreement, Borrowers shall
not be entitled to request, or to elect to convert or continue, any Borrowing
if the Interest Period requested with respect thereto would end after the
Maturity Date.

          SECTION 2.03 Borrowing Procedure. Borrowers shall deliver, by hand
delivery or telecopier, a duly completed and executed Borrowing Request to the
Administrative Agent not later than 9:00 a.m., New York City time, on the
Business Day prior to the Closing Date. The Borrowing Request shall be
irrevocable and shall specify the following information in compliance with
Section 2.02:

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     (a) the aggregate amount of such Borrowing;

     (b) the proposed Closing Date, which shall be a Business Day;

     (c) that such Borrowing is to be an ABR Borrowing;

     (d) the location and number of Borrowers’ account to which funds are
to be disbursed, which shall comply with the requirements of Section
2.02(c); and

     (e) that the conditions set forth in Section 4.01 have been
satisfied as of the date of the notice or will be satisfied as of the
Closing Date.

          Promptly following receipt of the Borrowing Request in accordance with
this Section, the Administrative Agent shall advise each Lender of the details
thereof and of the amount of such Lender’s Loan to be made as part of the
requested Borrowing.

          SECTION 2.04 Evidence of Debt; Repayment of Loans.

          (a) Promise to Repay. Borrowers, jointly and severally, hereby
unconditionally promise to pay to the Administrative Agent for the account of
each Lender the principal amount of each Loan of such Lender as provided in
Section 2.09.

          (b) Lender and Administrative Agent Records. Each Lender shall
maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of Borrowers to such Lender resulting from each
Loan made by such Lender from time to time, including the amounts of principal
and interest payable and paid to such Lender from time to time under this
Agreement. The Administrative Agent shall maintain accounts in which it will
record (i) the amount of each Loan made hereunder, the Type thereof and the
Interest Period applicable thereto; (ii) the amount of any principal or
interest due and payable or to become due and payable from Borrowers to each
Lender hereunder; and (iii) the amount of any sum received by the
Administrative Agent hereunder for the account of the Lenders and each Lender’s
share thereof. The entries made in the accounts maintained pursuant to this
paragraph shall, absent manifest error, be prima facie evidence of the
existence and amounts of the obligations therein recorded; provided that the
failure of any Lender or the Administrative Agent to maintain such accounts or
any error therein shall not in any manner affect the obligations of Borrowers
to repay the Loans in accordance with their terms.

          (c) Promissory Notes. Any Lender by written notice to Borrowers
(with a copy to the Administrative Agent) may request that Loans made by it be
evidenced by a promissory note. In such event, Borrowers shall prepare,
execute and deliver to such Lender a promissory note payable to such Lender
(or, if requested by such Lender, to such Lender and its registered assigns) in
the form of Exhibit I. Thereafter, the Loans evidenced by such
promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 10.04) be represented by one or more
promissory notes in such form payable to the order of the payee named therein
(or, if such promissory note is a registered note, to such payee and its
registered assigns).

          SECTION 2.05 Fees.

          (a) Administrative Agent Fees. Borrowers agree to pay to the
Administrative Agent, for its own account, the administrative fees set forth in
the Fee Letter or such other fees payable in the

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amounts and at the times
separately agreed upon among Borrowers and the Administrative Agent (the
“Administrative Agent Fees”).

          (b) All Administrative Agent Fees shall be paid on the dates due, in
immediately available funds in dollars, to the Administrative Agent in
accordance with the Fee Letter.

          SECTION 2.06 Interest on Loans.

          (a) ABR Loans. Subject to the provisions of Section
2.06(c), the Loans comprising each ABR Borrowing shall bear interest at a
rate per annum equal to the Alternate Base Rate then in effect plus the
Applicable Margin.

          (b) Eurodollar Loans. Subject to the provisions of Section
2.06(c), the Loans comprising each Eurodollar Borrowing shall bear interest
at a rate per annum equal to the Adjusted LIBOR Rate for the Interest Period in
effect for such Borrowing plus the Applicable Margin.

          (c) Default Rate. Notwithstanding the foregoing, during a Default
under Section 8.01(a), (b), (g) or (h), all
Obligations shall, to the extent permitted by applicable law, bear interest,
after as well as before judgment, at a per annum rate equal to (i) in the case
of principal of or interest on any Loan, 2% plus the rate otherwise applicable
to such Loan as provided in the preceding paragraphs of this Section
2.06 or (ii) in the case of any other amount, 2% plus the rate applicable
to ABR Loans as provided in Section 2.06(a) (in either case, the
“Default Rate”).

          (d) Interest Payment Dates. Accrued interest on each Loan shall be
payable in arrears on each Interest Payment Date for such Loan; provided that
(i) interest accrued pursuant to Section 2.06(c) shall be payable on
demand, (ii) in the event of any repayment or prepayment of any Loan, accrued
interest on the principal amount repaid or prepaid shall be payable on the date
of such repayment or prepayment and (iii) in the event of any conversion of any
Eurodollar Loan prior to the end of the current Interest Period therefor,
accrued interest on such Loan shall be payable on the effective date of such
conversion.

          (e) Interest Calculation. All interest hereunder shall be computed
on the basis of a year of 360 days, except that interest computed by reference
to the Alternate Base Rate shall be computed on the basis of a year of 365 days
(or 366 days in a leap year), and in each case shall be payable for the actual
number of days elapsed (including the first day but excluding the last day).
The applicable Alternate Base Rate or Adjusted LIBOR Rate shall be determined
by the Administrative Agent in accordance with the provisions of this Agreement
and such determination shall be conclusive absent manifest error.

          SECTION 2.07 Termination of Commitments. The Commitments shall
automatically terminate upon funding on the Closing Date.

          SECTION 2.08 Interest Elections.

          (a) Generally. The Borrowing initially shall be an ABR Borrowing,
as set forth in the Borrowing Request delivered pursuant to Section
2.03. Thereafter, or at the same time the Borrowing Request is delivered
pursuant to Section 2.03, Borrowers may elect to convert such Borrowing
to a different Type or to continue such Borrowing, all as provided in this
Section. Borrowers may elect different options with respect to different
portions of the affected Borrowing, in which case each such portion shall be
allocated ratably among the Lenders holding the Loans comprising such
Borrowing, and the Loans comprising each such portion shall be considered a
separate Borrowing. Notwithstanding anything to the

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contrary, Borrowers shall
not be entitled to request any conversion or continuation that, if made, would
result in more than seven Eurodollar Borrowings outstanding hereunder at any
one time.

          (b) Interest Election Notice. To make an election pursuant to this
Section, Borrowers shall deliver, by hand delivery or telecopier, a duly
completed and executed Interest Election Request to the Administrative Agent
(i) in the case of an election for conversion to a Eurodollar Borrowing, not
later than 11:00 a.m., New York City time, three Business Days before the
proposed effective date of such election and (ii) in the case of an election
for conversion to an ABR Borrowing, not later than 9:00 a.m., New York City
time, on the Business Day prior to the proposed effective date of such
election. Each Interest Election Request shall be irrevocable. Each Interest
Election Request shall specify the following information in compliance with
Section 2.02:

     (i) the Borrowing to which such Interest Election Request applies
and, if different options are being elected with respect to different
portions thereof, or if outstanding Borrowings are being combined,
allocation to each resulting Borrowing (in which case the information to
be specified pursuant to clauses (iii) and (iv) below shall be specified
for each resulting Borrowing);

     (ii) the effective date of the election made pursuant to such
Interest Election Request, which shall be a Business Day;

     (iii) whether the resulting Borrowing is to be an ABR Borrowing or a
Eurodollar Borrowing; and

     (iv) if the resulting Borrowing is a Eurodollar Borrowing, the
Interest Period to be applicable thereto after giving effect to such
election, which shall be a period contemplated by the definition of the
term “Interest Period.”

          If any such Interest Election Request requests a Eurodollar Borrowing but
does not specify an Interest Period, then Borrowers shall be deemed to have
selected an Interest Period of one month’s duration.

          Promptly following receipt of an Interest Election Request, the
Administrative Agent shall advise each Lender of the details thereof and of
such Lender’s portion of each resulting Borrowing.

          (c) Automatic Conversion to ABR Borrowing. If an Interest Election
Request with respect to a Eurodollar Borrowing is not timely delivered prior to
the end of the Interest Period applicable thereto, then, unless such Borrowing
is repaid as provided herein, at the end of such Interest Period such Borrowing
shall be converted to an ABR Borrowing. Notwithstanding any contrary provision
hereof, if an Event of Default has occurred and is continuing, the
Administrative Agent or the Required Lenders may require, by notice to
Borrowers, that (i) no outstanding Borrowing may be converted to or continued
as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing
shall be converted to an ABR Borrowing at the end of the Interest Period
applicable thereto.

          SECTION 2.09 Amortization of Borrowings. Borrowers shall pay to
the Administrative Agent, for the account of the Lenders, on the dates set
forth on Annex I, or if any such date is not a Business Day, on the
immediately preceding Business Day (each such date, a “Loan Repayment Date”), a
principal amount of the Loans equal to the amount set forth on Annex I
for such date (as adjusted from time to time pursuant to Section
2.10(h)), together in each case with accrued and unpaid interest on the

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principal amount to be paid to but excluding the date of such payment. To the
extent not previously paid, all Loans shall be due and payable on the Maturity
Date.

     SECTION 2.10 Optional and Mandatory Prepayments of Loans.

     (a) Optional Prepayments. Borrowers shall have the right at any
time and from time to time to prepay any Borrowing, in whole or in part,
subject to the requirements of this Section 2.10; provided that each
partial prepayment shall be in an amount that is an integral multiple of
$250,000 and not less than $1.0 million.

     (b) [Reserved]

     (c) Asset Sales. Not later than the third Business Day following
the receipt of any Net Cash Proceeds of any Asset Sale by Holdings or any of
its Subsidiaries, Borrowers shall make prepayments in accordance with
Sections 2.10(h) and (i) in an aggregate amount equal to 100% of
such Net Cash Proceeds; provided that:

     (i) no such prepayment or reinvestment shall be required under this
Section 2.10(c) with respect to the disposition of property which
constitutes a Casualty Event;

     (ii) so long as no Event of Default shall then exist or be
continuing or would arise therefrom and the aggregate of such Net Cash
Proceeds of Asset Sales shall not exceed $1.0 million in any fiscal year
of Holdings, such proceeds shall not be required to be so applied on such
date to the extent that Holdings shall have delivered an Officers’
Certificate to the Administrative Agent on or prior to such date stating
that such Net Cash Proceeds are expected to be reinvested in assets used
or useful in the business of Borrowers and their respective Subsidiaries
within 365 days following the date of such Asset Sale (which Officers’
Certificate shall set forth the estimates of the proceeds to be so
expended); provided that if all or any portion of such Net Cash Proceeds
is not so reinvested within such 365-day period, such unused portion
shall be applied on the last day of such period as a mandatory prepayment
as provided in this Section 2.10(c); provided, further, that if
the property subject to such Asset Sale constituted Collateral, then all
property purchased with the Net Cash Proceeds thereof pursuant to this
subsection shall be made subject to the Lien of the applicable Security
Documents in favor of the Collateral Agent, for its benefit and for the
benefit of the other Secured Parties in accordance with Sections
5.11 and 5.12; and

     (iii) so long as the Specified Asset Sale Amount shall not exceed
$250,000, no prepayment or reinvestment shall be required under the
provisions of this Section 2.10(c) from the Net Cash Proceeds of
Specified Asset Sales.

          (d) Debt Issuances. Not later than three Business Days following
the receipt of any Net Cash Proceeds of any Debt Issuance by Holdings or any of
its Subsidiaries, Borrowers shall make prepayments in accordance with
Sections 2.10(h) and (i) in an aggregate amount equal to 100% of
such Net Cash Proceeds.

          (e) Equity Issuances. Not later than three Business Days following
the receipt of any Net Cash Proceeds of any Equity Issuance, Borrowers shall
make prepayments in accordance with Sections 2.10(h) and (i) in
an aggregate amount equal to 50% of such Net Cash Proceeds.

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          (f) Casualty Events. Not later than three Business Days following
the receipt of any Net Cash Proceeds from a Casualty Event by Holdings or any
of its Subsidiaries, Borrowers shall make prepayments in accordance with
Sections 2.10(h) and (i) in an aggregate amount equal to 100% of
such Net Cash Proceeds; provided that:

     (i) so long as no Event of Default shall then exist and be
continuing or arise therefrom, such proceeds shall not be required to be
so applied on such date to the extent that in the event such Net Cash
Proceeds shall not exceed $5.0 million, Holdings shall have delivered an
Officers’ Certificate to the Administrative Agent on or prior to such
date stating that such proceeds are expected to be used to repair,
replace or restore any property in respect of which such Net Cash
Proceeds were paid or to reinvest in other assets used or useful in the
business of Borrowers and their respective Subsidiaries, no later than
365 days following the date of receipt of such proceeds; provided that
(x) if all or any portion of such Net Cash Proceeds is not so reinvested
within such 365-day period, such unused portion shall be applied on the
last day of such period as a mandatory prepayment as provided in this
Section 2.10(f), (y) if the property subject to
such Casualty Event constituted Collateral under the Security
Documents, then all property purchased with the Net Cash Proceeds thereof
pursuant to this subsection shall be made subject to the Lien of the
applicable Security Documents in favor of the Collateral Agent, for its
benefit and for the benefit of the other Secured Parties in accordance
with Sections 5.11 and 5.12 and (z) if Holdings and its
Subsidiaries shall, prior to the receipt of Net Cash Proceeds from any
Casualty Event, expend funds to repair, replace or restore any property
affected by such Casualty Event (and shall have delivered to the
Administrative Agent an Officers’ Certificate to that effect), to the
extent not in excess of the funds so expended, any Net Cash Proceeds
received in respect of such Casualty Event shall not be required to be
applied to prepayment or reinvestment pursuant to this Section
2.10(f) (but such funds so expended shall count toward the $5.0
million limitation set forth in this paragraph); and

     (ii) if any portion of such Net Cash Proceeds shall not be so
applied within such 365-day period, such unused portion shall be applied
on the last day of such period as a mandatory prepayment as provided in
this Section 2.10(f).

          (g) Excess Cash Flow. No later than three Business Days after the
earlier of (i) 90 days after the end of the Excess Cash Flow Period and (ii)
the date on which the financial statements with respect to such fiscal year in
which such Excess Cash Flow Period occurs are delivered pursuant to Section
5.01(a), Borrowers shall make prepayments in accordance with Sections
2.10(h) and (i) in an aggregate amount equal to 50% of Excess Cash
Flow for the Excess Cash Flow Period then ended.

          (h) Application of Prepayments. Prior to any optional or mandatory
prepayment hereunder, Borrowers shall select the Borrowing or Borrowings to be
prepaid and shall specify such selection in the notice of such prepayment
pursuant to Section 2.10(i), subject to the provisions of this
Section 2.10(h). All prepayments of Loans shall be applied to reduce
scheduled prepayments required under Section 2.09(a) on a pro rata basis
among the prepayments remaining to be made on each Loan Repayment Date.

          Amounts to be applied pursuant to this Section 2.10 to the
prepayment of Loans shall be applied, as applicable, first to reduce
outstanding ABR Loans. Any amounts remaining after each such application shall
be applied to prepay Eurodollar Loans. Notwithstanding the foregoing if the
amount of any prepayment of Loans required under this Section 2.10 shall
be in excess of the amount of the ABR Loans at the time outstanding (an “Excess
Amount”), only the portion of the amount of such prepayment

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as is equal to the
amount of such outstanding ABR Loans shall be immediately prepaid and, at the
election of Borrowers, the Excess Amount shall be either (A) deposited in an
escrow account on terms reasonably satisfactory to the Collateral Agent and
applied to the prepayment of Eurodollar Loans on the last day of the then next
expiring Interest Period for Eurodollar Loans; provided that (i) interest in
respect of such Excess Amount shall continue to accrue thereon at the rate
provided hereunder for the Loans which such Excess Amount is intended to repay
until such Excess Amount shall have been used in full to repay such Loans and
(ii) at any time while a Default has occurred and is continuing, the
Administrative Agent may, and upon written direction from the Required Lenders
shall, apply any or all proceeds then on deposit to the payment of such Loans
in an amount equal to such Excess Amount or (B) prepaid immediately, together
with any amounts owing to the Lenders under Section 2.13.

          (i) Notice of Prepayment. Borrowers shall notify the
Administrative Agent by written notice of any prepayment hereunder (i) in the
case of prepayment of a Eurodollar Borrowing, not later than 11:00 a.m., New
York City time, three Business Days before the date of prepayment and (ii) in
the case of prepayment of an ABR Borrowing, not later than 11:00 a.m., New York
City time, one Business Day before the date of prepayment. Each such notice
shall be irrevocable. Each such notice shall specify the prepayment date, the
principal amount of each Borrowing or portion thereof to be prepaid and, in the
case of a mandatory prepayment, a reasonably detailed calculation of the amount
of such prepayment. Promptly following receipt of any such notice, the
Administrative Agent shall advise the Lenders of the contents thereof. Each
partial prepayment of any Borrowing shall be in an aggregate principal amount
that is an integral multiple of $250,000 and not less than $1.0 million, except
as necessary to apply fully the required amount of a mandatory prepayment or to
repay the total amount of all outstanding Loans. Each prepayment of a
Borrowing shall be applied ratably to the Loans included in the prepaid
Borrowing and otherwise in accordance with this Section 2.10.
Prepayments shall include accrued interest to the extent required by Section
2.06.

          SECTION 2.11 Alternate Rate of Interest. If prior to the
commencement of any Interest Period for a Eurodollar Borrowing:

     (a) the Administrative Agent determines (which determination shall
be final and conclusive absent manifest error) that adequate and
reasonable means do not exist for ascertaining the Adjusted LIBOR Rate
for such Interest Period; or

     (b) the Administrative Agent is advised in writing by the Required
Lenders that the Adjusted LIBOR Rate for such Interest Period will not
adequately and fairly reflect the cost to such Lenders of making or
maintaining their Loans included in such Borrowing for such Interest
Period;

then the Administrative Agent shall give written notice thereof to Borrowers
and the Lenders as promptly as practicable thereafter and, until the
Administrative Agent notifies Borrowers and the Lenders that the circumstances
giving rise to such notice no longer exist, any Interest Election Request that
requests the conversion of any Borrowing to, or continuation of any Borrowing
as, a Eurodollar Borrowing shall be ineffective.

          SECTION 2.12 Yield Protection.

     (a) Increased Costs Generally. If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit,
compulsory loan, insurance charge or similar requirement against assets
of, deposits with or for the account

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of, or credit extended or
participated in, by any Lender (except any reserve requirement reflected
in the Adjusted LIBOR Rate);

     (ii) subject any Lender to any tax of any kind whatsoever with
respect to this Agreement, or any Eurodollar Loan made by it, or change
the basis of taxation of payments to such Lender in respect thereof
(except for Indemnified Taxes or Other Taxes covered by Section
2.15 and the imposition of, or any change in the rate of, any
Excluded Tax payable by such Lender); or

     (iii) impose on any Lender or the London interbank market any other
condition, cost or expense affecting this Agreement or Eurodollar Loans
made by such Lender;

and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Eurodollar Loan (or of maintaining its
obligation to make any such Loan), or to increase the cost to such Lender or
such Lender’s holding company, if any, or to reduce the amount of any sum
received or receivable by such Lender hereunder (whether of principal, interest
or any other amount), then, upon request of such Lender, Borrowers will pay to
such Lender such additional amount or amounts as will compensate such Lender
for such additional costs incurred or reduction suffered.

          (b) Capital Requirements. If any Lender reasonably determines in
good faith that any Change in Law affecting such Lender or any lending office
of such Lender or such Lender’s holding company, if any, regarding capital
requirements has or would have the effect of reducing the rate of return on
such Lender’s capital or on the capital of such Lender’s holding company, if
any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made
by such Lender, to a level below that which such Lender or such Lender’s
holding company could have achieved but for such Change in Law (taking into
consideration such Lender’s policies and the policies of such Lender’s holding
company with respect to capital adequacy), then from time to time Borrowers
will pay to such Lender such additional amount or amounts as will compensate
such Lender or such Lender’s holding company for any such reduction suffered.

          (c) Certificates for Reimbursement. A certificate of a Lender
setting forth in reasonable detail the matters giving rise to a claim under
this Section 2.12 and the calculation of the amount or amounts necessary
to compensate such Lender or its holding company, as the case may be, as
specified in paragraph (a) or (b) of this Section 2.12 and delivered to
Borrowers shall be conclusive absent manifest error. Borrowers shall pay such
Lender the amount shown as due on any such certificate within 10 days after
receipt thereof.

          (d) Delay in Requests. Failure or delay on the part of any Lender
to demand compensation pursuant to this Section 2.12 shall not
constitute a waiver of such Lender’s right to demand such compensation;
provided that Borrowers shall not be required to compensate a Lender pursuant
to this Section for any increased costs incurred or reductions suffered more
than 180 days prior to the date that such Lender notifies Borrowers of the
Change in Law giving rise to such increased costs or reductions and of such
Lender’s intention to claim compensation therefor (except that, if the Change
in Law giving rise to such increased costs or reductions is retroactive, then
the 180-day period referred to above shall be extended to include the period of
retroactive effect thereof).

          SECTION 2.13 Breakage Payments. In the event of (a) the payment or
prepayment, whether optional or mandatory, of any principal of any Eurodollar
Loan earlier than the last day of an Interest Period applicable thereto
(including as a result of an Event of Default), (b) the conversion of any
Eurodollar Loan earlier than the last day of the Interest Period applicable
thereto, (c) the failure to borrow,

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convert, continue or prepay any Loan on the
date specified in any notice delivered pursuant hereto or (d) the assignment of
any Eurodollar Loan earlier than the last day of the Interest Period applicable
thereto as a result of a request by Borrowers pursuant to Section 2.16,
then, in any such event, Borrowers shall compensate each Lender for the loss,
cost and expense attributable to such event. In the case of a Eurodollar Loan,
such loss, cost or expense to any Lender shall be deemed to include an amount
determined by such Lender to be the excess, if any, of (i) the amount of
interest which would have accrued on the principal amount of such Loan had such
event not occurred, at the Adjusted LIBOR Rate that would have been applicable
to such Loan, for the period from the date of such event to the last day of the
then current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period
for such Loan), over (ii) the amount of interest which would accrue on such
principal amount for the period from the occurrence of such event to and
including the last day of the then current Interest Period at the interest rate
which such Lender would bid were it to bid, at the commencement of such period,
for dollar deposits of a comparable amount and period from other banks in the
Eurodollar market. A certificate of any Lender setting forth in reasonable
detail any amount or amounts that such Lender is entitled to receive pursuant
to this Section 2.13 shall be delivered to Borrowers (with a copy to the
Administrative Agent) and shall be conclusive and binding absent manifest
error. Borrowers shall pay such Lender the amount shown as due on any such
certificate within 5 days after receipt thereof.

          SECTION 2.14 Payments Generally; Pro Rata Treatment; Sharing of
Setoffs.

          (a) Payments Generally. Borrowers shall make each payment required
to be made by them hereunder or under any other Loan Document (whether of
principal, interest, fees or of amounts payable under Section 2.12,
2.13, 2.15 or 10.03, or otherwise) on or before the time
expressly required hereunder or under such other Loan Document for such payment
(or, if no such time is expressly required, prior to 2:00 p.m., New York City
time), on the date when due, in immediately available funds, without setoff,
deduction or counterclaim. Any amounts received after such time on any date
may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating
interest thereon. All such payments shall be made to the Administrative Agent
at its offices at 677 Washington Boulevard, Stamford, Connecticut, except that
payments pursuant to Sections 2.12, 2.13, 2.15 and
10.03 shall be made directly to the persons entitled thereto and
payments pursuant to other Loan Documents shall be made to the persons
specified therein. The Administrative Agent shall distribute any such payments
received by it for the account of any other person to the appropriate recipient
promptly following receipt thereof. If any payment under any Loan Document
shall be due on a day that is not a Business Day, unless specified otherwise,
the date for payment shall be extended to the next succeeding Business Day,
and, in the case of any payment accruing interest, interest thereon shall be
payable for the period of such extension. All payments under each Loan
Document shall be made in dollars, except as expressly specified otherwise.

          (b) Insufficient Funds. If at any time insufficient funds are
received by and available to the Administrative Agent to pay fully all amounts
of principal, interest and fees then due hereunder, such funds shall be applied
(i) first, toward payment of interest and fees then due hereunder, ratably
among the parties entitled thereto in accordance with the amounts of interest
and fees then due to such parties, and (ii) second, toward payment of principal
then due hereunder, ratably among the parties entitled thereto in accordance
with the amounts of principal then due to such parties.

          (c) Sharing of Setoff. If any Lender shall, by exercising any
right of setoff or counterclaim or otherwise, obtain payment in respect of any
principal of or interest on any of its Loans or other Obligations resulting in
such Lender’s receiving payment of a proportion of the aggregate amount of its

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Loans and accrued interest thereon or other Obligations greater than its pro
rata share thereof as provided herein, then the Lender receiving such greater
proportion shall (a) notify the Administrative Agent of such fact, and (b)
purchase (for cash at face value) participations in the Loans and such other
obligations of the other Lenders, or make such other adjustments as shall be
equitable, so that the benefit of all such payments shall be shared by the
Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Loans and other amounts owing them,
provided that:

     (i) if any such participations are purchased and all or any portion
of the payment giving rise thereto is recovered, such participations
shall be rescinded and the purchase price restored to the extent of such
recovery, without interest; and

     (ii) the provisions of this paragraph shall not be construed to
apply to (x) any payment made by Borrowers pursuant to and in accordance
with the express terms of this Agreement or (y) any payment obtained by a
Lender as consideration for the assignment of or sale of a participation
in any of its Loans to any assignee or participant, other than to
Borrowers or any Subsidiary thereof (as to which the provisions of this
paragraph shall apply).

Each Loan Party consents to the foregoing and agrees, to the extent it may
effectively do so under applicable Requirements of Law, that any Lender
acquiring a participation pursuant to the foregoing arrangements may exercise
against such Loan Party rights of setoff and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of such Loan
Party in the amount of such participation. If under applicable bankruptcy,
insolvency or any similar law any Secured Party receives a secured claim in
lieu of a setoff or counterclaim to which this Section 2.14(c) applies,
such Secured Party shall to the extent practicable, exercise its rights in
respect of such secured claim in a manner consistent with the rights to which
the Secured Party is entitled under this Section 2.14(c) to share in the
benefits of the recovery of such secured claim.

          (d) Default by Borrowers. Unless the Administrative Agent shall
have received notice from Borrowers prior to the date on which any payment is
due to the Administrative Agent for the account of the Lenders hereunder that
Borrowers will not make such payment, the Administrative Agent may assume that
Borrowers have made such payment on such date in accordance herewith and may,
in reliance upon such assumption, distribute to the Lenders the amount due. In
such event, if Borrowers have not in fact made such payment, then each of the
Lenders severally agrees to repay to the Administrative Agent forthwith on
demand the amount so distributed to such Lender with interest thereon, for each
day from and including the date such amount is distributed to it to but
excluding the date of payment to the Administrative Agent, at the greater of
the Federal Funds Effective Rate and a rate determined by the Administrative
Agent in accordance with banking industry rules on interbank compensation.

          (e) Lender Default. If any Lender shall fail to make any payment
required to be made by it pursuant to Section 2.02(c), 2.14(d) or
10.03, then the Administrative Agent may, in its discretion
(notwithstanding any contrary provision hereof), apply any amounts thereafter
received by the Administrative Agent for the account of such Lender to satisfy
such Lender’s obligations under such Sections until all such unsatisfied
obligations are fully paid.

          SECTION 2.15 Taxes.

          (a) Payments Free of Taxes. Any and all payments by or on account
of any obligation of Borrowers hereunder or under any other Loan Document shall
be made free and clear of and without reduction or withholding for any
Indemnified Taxes or Other Taxes; provided that if Borrowers shall

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be
required by applicable Requirements of Law to deduct any Indemnified Taxes
(including any Other Taxes) from such payments, then (i) the sum payable shall
be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section)
the Administrative Agent or Lender, as the case may be, receives an amount
equal to the sum it would have received had no such deductions been made, (ii)
Borrowers shall make such deductions and (iii) Borrowers shall timely pay the
full amount deducted to the relevant Governmental Authority in accordance with
applicable Requirements of Law.

          (b) Payment of Other Taxes by Borrowers. Without limiting the
provisions of paragraph (a) above, Borrowers shall timely pay any Other Taxes
to the relevant Governmental Authority in accordance with applicable
Requirements of Law.

          (c) Indemnification by Borrowers. Borrowers shall indemnify the
Administrative Agent and each Lender, within 10 days after demand therefor, for
the full amount of any Indemnified Taxes or Other Taxes (including Indemnified
Taxes or Other Taxes imposed or asserted on or attributable to amounts payable
under this Section) paid by the Administrative Agent or such Lender and any
penalties, interest and reasonable expenses arising therefrom or with
respect thereto, whether or not such Indemnified Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or liability
delivered to Borrowers by a Lender (with a copy to the Administrative Agent),
or by the Administrative Agent on its own behalf or on behalf of a Lender,
shall be conclusive absent manifest error.

          (d) Evidence of Payments. As soon as practicable after any payment
of Indemnified Taxes or Other Taxes by Borrowers to a Governmental Authority,
Borrowers shall deliver to the Administrative Agent the original or a certified
copy of a receipt issued by such Governmental Authority evidencing such
payment, a copy of the return reporting such payment or other evidence of such
payment reasonably satisfactory to the Administrative Agent.

          (e) Status of Lenders. Any Foreign Lender that is entitled to an
exemption from or reduction of withholding tax under the law of the
jurisdiction in which a Borrower is resident for tax purposes, or any treaty to
which such jurisdiction is a party, with respect to payments hereunder or under
any other Loan Document shall, to the extent it may lawfully do so, deliver to
Borrowers (with a copy to the Administrative Agent), at the time or times
prescribed by applicable Requirements of Law or reasonably requested by
Borrowers or the Administrative Agent, such properly completed and executed
documentation prescribed by applicable Requirements of Law as will permit such
payments to be made without withholding or at a reduced rate of withholding.
In addition, any Lender, if requested by Borrowers or the Administrative Agent,
shall deliver such other documentation prescribed by applicable Requirements of
Law or reasonably requested by Borrowers or the Administrative Agent as will
enable Borrowers or the Administrative Agent to determine whether or not such
Lender is subject to backup withholding or information reporting requirements.
Notwithstanding anything to the contrary in the above two sentences, in the
case of non-U.S. withholding taxes the completion, execution and submission of
non-U.S. forms shall not be required if in the Lender’s judgment such
completion, execution or submission would subject such Lender to any material
unreimbursed cost or expense or would be otherwise disadvantageous to such
Lender in any material respect.

          Without limiting the generality of the foregoing, in the event that a
Borrower is resident for tax purposes in the United States of America, any
Foreign Lender shall, to the extent it may lawfully do so, deliver to Borrowers
and the Administrative Agent (in such number of copies as shall be requested by
the recipient) on or prior to the date on which such Foreign Lender becomes a
Lender under this

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Agreement (and from time to time thereafter upon the request
of Borrowers or the Administrative Agent, but only if such Foreign Lender is
legally entitled to do so), whichever of the following is applicable:

     (i) duly completed copies of Internal Revenue Service Form W-8BEN
claiming eligibility for benefits of an income tax treaty to which the
United States of America is a party,

     (ii) duly completed copies of Internal Revenue Service Form W-8ECI,

     (iii) in the case of a Foreign Lender claiming the benefits of the
exemption for portfolio interest under Section 881(c) of the Code, (x) a
certificate, in substantially the form of Exhibit O, or any other
form approved by the Administrative Agent, to the effect that such
Foreign Lender is not (A) a “bank” within the meaning of Section
881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of a Borrower
within the meaning of Section 881(c)(3)(B) of the Code, or (C) a
“controlled foreign corporation” described in Section 881(c)(3)(C) of the
Code and (y) duly completed copies of Internal Revenue Service Form
W-8BEN, or

     (iv) any other form prescribed by applicable Requirements of Law as
a basis for claiming exemption from or a reduction in United States
Federal withholding tax duly completed together with such supplementary
documentation as may be prescribed by applicable Requirements of Law to
permit Borrowers to determine the withholding or deduction required to be
made.

          (f) Treatment of Certain Refunds. If the Administrative Agent or a
Lender determines, in its sole discretion, that it has received a refund of any
Indemnified Taxes or Other Taxes as to which it has been indemnified by
Borrowers or with respect to which Borrowers have paid additional amounts
pursuant to this Section, it shall pay to Borrowers an amount equal to such
refund (but only to the extent of indemnity payments made, or additional
amounts paid, by Borrowers under this Section with respect to the Indemnified
Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket
expenses of the Administrative Agent or such Lender and without interest (other
than any interest paid by the relevant Governmental Authority with respect to
such refund); provided that Borrowers, upon the request of the Administrative
Agent or such Lender, agree to repay the amount paid over to Borrowers (plus
any penalties, interest or other charges imposed by the relevant Governmental
Authority) to the Administrative Agent or such Lender in the event the
Administrative Agent or such Lender is required to repay such refund to such
Governmental Authority. This paragraph shall not be construed to require the
Administrative Agent or any Lender to make available its tax returns (or any
other information relating to its taxes that it deems confidential) to
Borrowers or any other person. Notwithstanding anything to the contrary, in no
event will any Lender be required to pay any amount to Borrowers the payment of
which would place such Lender in a less favorable net after-tax position than
such Lender would have been in if the additional amounts giving rise to such
refund of any Indemnified Taxes or Other Taxes had never been paid.

          SECTION 2.16 Mitigation Obligations; Replacement of Lenders.

          (a) Designation of a Different Lending Office. If any Lender
requests compensation under Section 2.12, or requires Borrowers to pay
any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 2.15, then such Lender shall
use reasonable efforts to designate a different lending office for funding or
booking its Loans hereunder or to assign its rights and obligations hereunder
to another of its offices, branches or affiliates, if, in the judgment of such
Lender, such designation or assignment (i) would eliminate or reduce amounts
payable pursuant

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to Section 2.12 or 2.15, as the case may be, in
the future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender. Borrowers
hereby agree to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment. A certificate setting
forth such costs and expenses submitted by such Lender to Borrowers shall be
conclusive absent manifest error.

          (b) Replacement of Lenders. If any Lender requests compensation
under Section 2.12, or if Borrowers are required to pay any additional
amount to any Lender or any Governmental Authority for the account of any
Lender pursuant to Section 2.15, or if any Lender defaults in its
obligation to fund Loans hereunder, or if Borrowers exercise their replacement
rights under Section 10.02(d), then Borrowers may, at their sole expense
and effort, upon notice to such Lender and the Administrative Agent, require
such Lender to assign and delegate, without recourse (in accordance with and
subject to the restrictions contained in, and consents required by, Section
10.04), all of its interests, rights and obligations under this Agreement
and the other
Loan Documents to an assignee that shall assume such obligations (which
assignee may be another Lender, if a Lender accepts such assignment); provided
that:

     (i) Borrowers shall have paid to the Administrative Agent the
assignment fee specified in Section 10.04(b);

     (ii) such Lender shall have received payment of an amount equal to
the outstanding principal of its Loans, accrued interest thereon, accrued
fees and all other amounts payable to it hereunder and under the other
Loan Documents (including any amounts under Section 2.13) from the
assignee (to the extent of such outstanding principal and accrued
interest and fees) or Borrowers (in the case of all other amounts);

     (iii) in the case of any such assignment resulting from a claim for
compensation under Section 2.12 or payments required to be made
pursuant to Section 2.15, such assignment will result in a
reduction in such compensation or payments thereafter; and

     (iv) such assignment does not conflict with applicable Requirements
of Law.

A Lender shall not be required to make any such assignment or delegation if,
prior thereto, as a result of a waiver by such Lender or otherwise, the
circumstances entitling Holdings to require such assignment and delegation
cease to apply.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

          Each Loan Party represents and warrants to the Administrative Agent, the
Collateral Agent and each of the Lenders (with references to the Companies
being references thereto after giving effect to the Transactions unless
otherwise expressly stated) that:

          SECTION 3.01 Organization; Powers. Each Company (a) is duly
organized and validly existing under the laws of the jurisdiction of its
organization, (b) has all requisite power and authority to carry on its
business as now conducted and to own and lease its property and (c) is
qualified and in good standing (to the extent such concept is applicable in the
applicable jurisdiction) to do business in every jurisdiction where such
qualification is required, except in such jurisdictions where the failure to so
qualify or be in good standing, individually or in the aggregate, could not
reasonably be expected to result

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in a Material Adverse Effect. There is no
existing default under any Organizational Document of any Company or any event
which, with the giving of notice or passage of time or both, would constitute a
default by any party thereunder.

          SECTION 3.02 Authorization; Enforceability. The Transactions to be
entered into by each Loan Party are within such Loan Party’s powers and have
been duly authorized by all necessary action on the part of such Loan Party.
This Agreement has been duly executed and delivered by each Loan Party and
constitutes, and each other Loan Document to which any Loan Party is to be a
party, when executed and delivered by such Loan Party, will constitute, a
legal, valid and binding obligation of such Loan Party, enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors’ rights generally
and subject to general principles of equity, regardless of whether considered
in a proceeding in equity or at law; provided that it is understood and agreed
that any foreclosure and/or transfer pursuant to the Security Agreement of
any Equity Interests in any License Subsidiary that would result in a
change of control of such License Subsidiary may require the consent of the
FCC.

          SECTION 3.03 No Conflicts. Except as set forth on Schedule
3.03, the Transactions (a) do not require any consent or approval of,
registration or filing with, or any other action by, any Governmental Authority
and will not violate any Requirement of Law, except (i) such as have been
obtained or made and are in full force and effect, (ii) filings necessary to
perfect Liens created by the Loan Documents and (iii) consents, approvals,
registrations, filings, permits or actions the failure to obtain or perform
which could not reasonably be expected to result in a Material Adverse Effect,
(b) will not violate the Organizational Documents of any Company, (c) will not
violate or result in a default or require any consent or approval under any
indenture, agreement or other instrument binding upon any Company or its
property, or give rise to a right thereunder to require any payment to be made
by any Company, except for violations, defaults or the creation of such rights
that could not reasonably be expected to result in a Material Adverse Effect
and (d) will not result in the creation or imposition of any Lien on any
property of any Company, except Liens created by the Loan Documents and
Permitted Liens.

          SECTION 3.04 Financial Statements; Projections.

          (a) Historical Financial Statements. Each Public Company has
heretofore delivered to the Lenders the consolidated balance sheets and related
statements of income and stockholders’ equity and cash flows of such Public
Company (i) as of and for the fiscal years ended 2001, 2002 and 2003, audited
by and accompanied by the opinions of the Independent Public Accountants, and
(ii) as of and for the nine-month period ended September 30, 2004 and for the
comparable period of the preceding fiscal year, in each case, certified by the
chief financial officer of such Public Company. Such financial statements and
all financial statements delivered pursuant to Sections 5.01(a) and
(b) have been prepared in accordance with GAAP and present fairly and
accurately in all material respects the financial condition and results of
operations and cash flows of each of Metrocall and Arch as of the dates and for
the periods to which they relate.

          (b) No Liabilities. Except as set forth in the financial
statements referred to in Section 3.04(a), there are no liabilities of
any Company of any kind, whether accrued, contingent, absolute, determined,
determinable or otherwise, which could reasonably be expected to result in a
Material Adverse Effect, and there is no existing condition, situation or set
of circumstances which could reasonably be expected to result in such a
liability, other than liabilities under the Loan Documents. Since December 31,
2003, there has been no event, change, circumstance or occurrence that,
individually or in the aggregate, has had or could reasonably be expected to
result in a Material Adverse Effect.

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          (c) Pro Forma Financial Statements. Holdings has heretofore
delivered to the Lenders Holdings’ unaudited pro forma consolidated balance
sheet and statements of income and cash flows and pro forma Consolidated EBITDA
for the four-quarter period ended December 31, 2003, and as of and for the
nine-month period ended September 30, 2004, in each case after giving effect to
the Transactions as if they had occurred on such date in the case of the
balance sheet and as of the beginning of all periods presented in the case of
the statements of income. Such pro forma financial statements (other than with
respect to pro forma Consolidated EBITDA) have been prepared in good faith by
the Loan Parties, based on the assumptions stated therein (which assumptions
are believed by the Loan Parties as of the Closing Date to be reasonable),
accurately reflect in all material respects all adjustments required to be made
to give effect to the Transactions, and in accordance with Regulation S-X, and
present fairly in all material respects the pro forma consolidated financial
position and results of operations of Holdings as of such date and for such
periods, assuming that the Transactions had occurred at such dates. The pro
forma Consolidated EBITDA included in such financial statements has been
calculated using the line items set forth on the pro forma financial statements
referred to in the previous sentence.

          (d) Forecasts. The forecasts of financial performance of Holdings
and its Subsidiaries furnished to the Lenders have been prepared in good faith
by Holdings and its Subsidiaries and based on assumptions believed by Holdings
and its Subsidiaries to be reasonable at the time made.

          SECTION 3.05 Properties.

          (a) Generally. Each Company has good title to, or valid leasehold
interests in or licenses of all its property material to its business, free and
clear of all Liens except for Permitted Liens and minor irregularities or
deficiencies in title that, individually or in the aggregate, do not interfere
with its ability to conduct its business as currently conducted or to utilize
such property for its intended purpose. The property of the Companies, taken
as a whole, is in good operating order, condition and repair (ordinary wear and
tear excepted).

          (b) Real Property. Schedules 8(a) and 8(b) to the
Perfection Certificate dated the Closing Date contain in all material respects
a true and complete list of each interest in Real Property (i) owned by any
Company as of the date hereof and describes the type of interest therein held
by such Company and whether such owned Real Property is leased and (ii) leased
or subleased by any Company, as lessee, sublessee, franchisee or licensee, as
of the date hereof and describes the type of interest therein held by such
Company and in each of the cases described in clauses (i) and (ii) of this
Section 3.05(b), whether any Material Lease requires the consent of the
landlord thereunder, or other party thereto, to the Transactions. The
information set forth on Schedule 3.05(b) is true, complete and correct
in all material respects.

          (c) No Casualty Event. Except as set forth on Schedule
3.05(c), as of the Closing Date, no Company has received any notice of, nor
has any actual knowledge of, the occurrence or pendency or contemplation of any
Casualty Event affecting all or any portion of its property. No Mortgage
encumbers improved Real Property that is located in an area that has been
identified by the Secretary of Housing and Urban Development as an area having
special flood hazards within the meaning of the National Flood Insurance Act of
1968 unless flood insurance available under such Act has been obtained in
accordance with Section 5.04.

          (d) Collateral. Each Company owns or has rights to use all of the
Collateral and all rights with respect to any of the foregoing used in,
necessary for or material to each Company’s business as currently conducted.
The use by each Company of such Collateral and all such rights with respect to

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the foregoing do not infringe on the rights of any person other than such
infringement which could not, individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect. No claim has been made and
remains outstanding that any Company’s use of any Collateral does or may
violate the rights of any third party that could, individually or in the
aggregate, reasonably be expected to result in a Material Adverse Effect.

          SECTION 3.06 Intellectual Property.

          (a) Ownership/No Claims. To the best knowledge of the Loan
Parties, each Loan Party owns, or is licensed to use, all patents, patent
applications, trademarks, trade names, servicemarks, copyrights, technology,
trade secrets, proprietary information, domain names, know-how and processes
necessary and material for the conduct of its business as currently conducted
(the “Intellectual Property”), except for those the failure to own or license which,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect. To the best knowledge of the Loan Parties, no claim
has been asserted and is pending by any person challenging or questioning the
use of any such Intellectual Property or the validity or effectiveness of any
such Intellectual Property, nor does any Loan Party know of any valid basis for
any such claim. The use of such Intellectual Property by each Loan Party does
not infringe the rights of any person, except for such claims and infringements
that, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect.

          (b) Registrations. Except pursuant to licenses and other user
agreements entered into by each Loan Party in the ordinary course of business
that are listed in Schedule 12(a) or 12(b) to the Perfection
Certificate, on and as of the date hereof, except to the extent that could not
be reasonably expected to result, individually or in the aggregate, in a
Material Adverse Effect, (i) each Loan Party owns and possesses the right to
use, and has done nothing to authorize or enable any other person to use, any
copyright, patent or trademark (as such terms are defined in the Security
Agreement) listed in Schedule 12(a) or 12(b) to the Perfection
Certificate and (ii) all registrations listed in Schedule 12(a) or
12(b) to the Perfection Certificate are valid and in full force and
effect.

          (c) No Violations or Proceedings. To each Loan Party’s knowledge,
on and as of the date hereof, there is no material violation by others of any
right of such Loan Party with respect to any copyright, patent or trademark
listed in Schedule 12(a) or 12(b) to the Perfection Certificate,
pledged by it under the name of such Loan Party except as may be set forth on
Schedule 3.06(c) and except where such violations would not reasonably
be expected to have a Material Adverse Effect.

          SECTION 3.07 Equity Interests and Subsidiaries.

          (a) Equity Interests. Schedules 1(a) and 10 to the
Perfection Certificate dated the Closing Date set forth a list of (i) all the
Subsidiaries of Holdings (other than Borrowers) and their jurisdictions of
organization as of the Closing Date and (ii) the number of each class of its
Equity Interests authorized, and the number outstanding, on the Closing Date
and the number of shares covered by all outstanding options, warrants, rights
of conversion or purchase and similar rights at the Closing Date. All capital
stock of each Company is duly and validly issued and is fully paid and
non-assessable and, other than the Equity Interests of Holdings, all Equity
Interests of each Company are owned by Holdings, directly or indirectly through
Wholly Owned Subsidiaries. All Equity Interests of Borrowers are owned
directly by Holdings or another Guarantor. Each Loan Party is the record and
beneficial owner of, and has good and marketable title to, the Equity Interests
pledged by it under the Security Agreement, free of any and all Liens, rights
or claims of other persons, except the security interest created by the
Security Agreement, and, except as set forth in Schedule 1(a) and 10 to the
Perfection Certificate, there are no outstanding

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warrants, options or other
rights to purchase, or shareholder, voting trust or similar agreements
outstanding with respect to, or property that is convertible into, or that
requires the issuance or sale of, any such Equity Interests.

          (b) No Consent of Third Parties Required. No consent of any person
including any other general or limited partner, any other member of a limited
liability company, any other shareholder or any other trust beneficiary is
necessary in connection with the creation, perfection or first priority status
of the security interest of the Collateral Agent in any Equity Interests
pledged to the Collateral Agent for the benefit of the Secured Parties under
the Security Agreement or the exercise by the Collateral Agent of the voting or other rights provided for in the Security
Agreement or the exercise of remedies in respect thereof.

          (c) Organizational Chart. An accurate organizational chart,
showing the ownership structure of Holdings, each Borrower and each Subsidiary
on the Closing Date, and after giving effect to the Transactions, is set forth
on Schedule 3.07(c).

          SECTION 3.08 Litigation; Compliance with Laws. There are no
actions, suits or proceedings at law or in equity by or before any Governmental
Authority now pending or, to the knowledge of any Company, threatened in
writing against any Company or any business, property or rights of any Company
(i) that involve any Loan Document or any of the Transactions, other than the
Shareholder Proceedings, or (ii) as to which there is a reasonable possibility
of an adverse determination and that, if adversely determined, could reasonably
be expected, individually or in the aggregate, to result in a Material Adverse
Effect. Except for matters covered by Section 3.18, no Company or any
of its property is in violation of, nor will the continued operation of its
property as currently conducted violate, any Requirements of Law (including any
zoning or building ordinance, code or approval or any building permits) or any
restrictions of record or agreements affecting any Company’s Real Property or
is in default with respect to any Requirement of Law, where such violation or
default, individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect.

          SECTION 3.09 Agreements. No Company is a party to any agreement or
instrument or subject to any corporate or other constitutional restriction that
has resulted or could reasonably be expected to result in a Material Adverse
Effect. No Company is in default in any manner under any provision of any
indenture or other agreement or instrument evidencing Indebtedness, or any
other agreement or instrument to which it is a party or by which it or any of
its property is or may be bound, where such default could reasonably be
expected to result in a Material Adverse Effect, and no condition exists which,
with the giving of notice or the lapse of time or both, would constitute such a
default. Schedule 3.09 accurately and completely lists all such
material agreements (other than leases of Real Property set forth on
Schedule 8(a) or 8(b) to the Perfection Certificate dated the
Closing Date) to which any Company is a party which are in effect on the date
hereof in connection with the operation of the business conducted thereby and
Holdings has, to the extent requested by the Administrative Agent, delivered to
the Administrative Agent complete and correct copies of all such material
agreements, including any amendments, supplements or modifications with respect
thereto, and, except as could not reasonably be expected to result in a
Material Adverse Effect, all such agreements are in full force and effect.

          SECTION 3.10 Federal Reserve Regulations. No Company is engaged
principally, or as one of its important activities, in the business of
extending credit for the purpose of buying or carrying Margin Stock. No part
of the proceeds of any Loan will be used, whether directly or indirectly, for
any purpose that entails a violation of, or that is inconsistent with, the
provisions of the regulations of the

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Board, including Regulation T, U or X.
The pledge of the Securities Collateral pursuant to the Security Agreement does
not violate such regulations.

          SECTION 3.11 Investment Company Act; Public Utility Holding Company
Act. No Company is (a) an “investment company” or a company “controlled”
by an “investment company,” as defined in, or subject to regulation under, the
Investment Company Act of 1940, as amended, or (b) a “holding company,” an
“affiliate” of a “holding company” or a “subsidiary company” of a “holding
company,” as defined in, or subject to regulation under, the Public Utility
Holding Company Act of 1935, as amended.

          SECTION 3.12 Use of Proceeds. Borrowers will use the proceeds of
the Loans (or cause such proceeds to be used) to pay a portion of the cash
component of the consideration for the Mergers and pay related fees, costs and
expenses.

          SECTION 3.13 Taxes. Each Company has (a) timely filed or caused to
be timely filed all federal Tax Returns and all material state, local and
foreign Tax Returns or materials required to have been filed by it and all such
Tax Returns are true and correct in all material respects and (b) duly and
timely paid, collected or remitted or caused to be duly and timely paid,
collected or remitted all Taxes (whether or not shown on any Tax Return) due
and payable, collectible or remittable by it and all assessments received by
it, except Taxes (i) that are being contested in good faith by appropriate
proceedings and for which such Company has set aside on its books adequate
reserves in accordance with GAAP and (ii) which could not, individually or in
the aggregate, have a Material Adverse Effect. Each Company has made adequate
provision in accordance with GAAP for all Taxes not yet due and payable. Each
Company is unaware of any proposed or pending tax assessments, deficiencies or
audits that could be reasonably expected to, individually or in the aggregate,
result in a Material Adverse Effect. No Company has ever been a party to any
understanding or arrangement constituting a “tax shelter” within the meaning of
Section 6111(c), Section 6111(d) or Section 6662(d)(2)(C)(iii) of the Code, or
has ever “participated” in a “reportable transaction” within the meaning of
Treasury Regulation Section 1.6011-4, except as could not be reasonably
expected to, individually or in the aggregate, result in a Material Adverse
Effect.

          SECTION 3.14 No Material Misstatements. No information, report,
financial statement, certificate, Borrowing Request, exhibit or schedule
furnished by or on behalf of any Company to the Administrative Agent or any
Lender in connection with the negotiation of any Loan Document or included
therein or delivered pursuant thereto, taken as a whole, or the Confidential
Information Memorandum, together with the registration statement on Form S-4
filed by Holdings on October 6, 2004, the current report on Form 8-K filed by
Metrocall Public on October 21, 2004 and the current report on Form 8-K filed
by Metrocall Public on November 1, 2004, taken as a whole, contained or
contains any material misstatement of fact or omitted or omits to state any
material fact necessary to make the statements therein, in the light of the
circumstances under which they were or are made, not misleading as of the date
such information is dated or certified; provided that to the extent any such
information, report, financial statement, exhibit or schedule was based upon or
constitutes a forecast or projection, each Company represents only that it
acted in good faith and utilized assumptions believed by it to be reasonable at
the time made in the preparation of such information, report, financial
statement, exhibit or schedule.

          SECTION 3.15 Labor Matters. There are no strikes, lockouts or
slowdowns against any Company pending or, to the knowledge of any Company,
threatened. The hours worked by and payments made to employees of any Company
have not been in violation of the Fair Labor Standards Act of 1938, as amended,
or any other applicable federal, state, local or foreign law dealing with such
matters in any manner which could reasonably be expected to result in a
Material Adverse Effect. All payments due

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from any Company, or for which any
claim may be made against any Company, on account of wages and employee health
and welfare insurance and other benefits, have been paid or accrued as a
liability on the books of such Company except where the failure to do so could
not reasonably be expected to result in a Material Adverse Effect. The
consummation of the Transactions will not give rise to any right of termination
or right of renegotiation on the part of any union under any collective
bargaining agreement to which any Company is bound.

          SECTION 3.16 Solvency. Immediately after the consummation of the
Transactions to occur on the Closing Date, (a) the fair value of the properties
of (i) each Borrower and
(ii) Holdings and its Subsidiaries on a consolidated basis will exceed its
debts and liabilities, subordinated, contingent or otherwise; (b) the present
fair saleable value of the property of (i) each Borrower and (ii) Holdings and
its Subsidiaries on a consolidated basis will be greater than the amount that
will be required to pay the probable liability of its debts and other
liabilities, subordinated, contingent or otherwise, as such debts and other
liabilities become absolute and matured; (c)(i) each Borrower and (ii) Holdings
and its Subsidiaries on a consolidated basis will be able to pay its debts and
liabilities, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and matured; and (d)(i) each Borrower and (ii)
Holdings and its Subsidiaries on a consolidated basis will not have
unreasonably small capital with which to conduct its business in which it is
engaged as such business is now conducted and is proposed to be conducted
following the Closing Date.

          SECTION 3.17 Employee Benefit Plans. Each Company and its ERISA
Affiliates is in compliance in all material respects with the applicable
provisions of ERISA and the Code and the regulations and published
interpretations thereunder. No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events,
could reasonably be expected to result in material liability of any Company or
any of its ERISA Affiliates or the imposition of a Lien on any of the property
of any Company. The present value of all accumulated benefit obligations of
all underfunded Plans (based on the assumptions used for purposes of Statement
of Financial Accounting Standards No. 87) did not, as of the date of the most
recent financial statements reflecting such amounts, exceed by more than
$250,000 the fair market value of the property of all such underfunded Plans.
Using actuarial assumptions and computation methods consistent with subpart I
of subtitle E of Title IV of ERISA, the aggregate liabilities of each Company
or its ERISA Affiliates to all Multiemployer Plans in the event of a complete
withdrawal therefrom, as of the close of the most recent fiscal year of each
such Multiemployer Plan, could not reasonably be expected to result in a
Material Adverse Effect.

          SECTION 3.18 Environmental Matters.

          (a) Except as set forth in Schedule 3.18 and except as,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect:

     (i) The Companies and their businesses, operations and Real Property
are and in the last six years have been in compliance with, and the
Companies have no liability under, Environmental Law;

     (ii) The Companies have obtained all Environmental Permits required
for the conduct of their businesses and operations, and the ownership,
operation and use of their property, under Environmental Law, all such
Environmental Permits are valid and in good standing and, under the
currently effective business plan of the Companies, no expenditures or
operational adjustments will be required in order to renew or modify such
Environmental Permits during the next five years;

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     (iii) There has been no Release or threatened Release of Hazardous
Material on, at, under or from any Real Property or facility presently or
formerly owned, leased or operated by the Companies or their predecessors
in interest that could result in liability by the Companies under
Environmental Law;

     (iv) There is no Environmental Claim pending or, to the knowledge of
the Companies, threatened against the Companies, or relating to the Real
Property currently or formerly owned, leased or operated by the Companies
or relating to the operations of the Companies, and
there are no actions, activities, circumstances, conditions, events
or incidents that could form the basis of such an Environmental Claim;
and

     (v) No person with an indemnity or contribution obligation to the
Companies relating to compliance with or liability under Environmental
Law is in default with respect to such obligation.

          (b) Except as set forth in Schedule 3.18 or as could not,
individually or in the aggregate, reasonably be expected to result in a
Material Adverse Effect:

     (i) No Company is obligated to perform any action or otherwise incur
any expense under Environmental Law pursuant to any order, decree,
judgment or agreement by which it is bound or has assumed by contract or
agreement, and no Company is conducting or financing any Response
pursuant to any Environmental Law with respect to any Real Property or
any other location;

     (ii) No Real Property or facility owned, operated or leased by the
Companies and, to the knowledge of the Companies, no Real Property or
facility formerly owned, operated or leased by the Companies or any of
their predecessors in interest is (i) listed or proposed for listing on
the National Priorities List promulgated pursuant to CERCLA or (ii)
listed on the Comprehensive Environmental Response, Compensation and
Liability Information System promulgated pursuant to CERCLA or (iii)
included on any similar list maintained by any Governmental Authority
including any such list relating to petroleum;

     (iii) No Lien has been recorded or, to the knowledge of any Company,
threatened under any Environmental Law with respect to any Real Property
or property of the Companies;

     (iv) The execution, delivery and performance of this Agreement and
the consummation of the transactions contemplated hereby will not require
any notification, registration, filing, reporting, disclosure,
investigation, remediation or cleanup pursuant to any Governmental Real
Property Disclosure Requirements or any other Environmental Law; and

     (v) The Companies have made available to the Lenders all material
records and files in the possession, custody or control of, or otherwise
reasonably available to, the Companies concerning compliance with or
liability under Environmental Law, including those concerning the
existence of Hazardous Material at Real Property or facilities currently
or formerly owned, operated, leased or used by the Companies.

          SECTION 3.19 Insurance. Schedule 3.19 sets forth a true,
complete and correct description of all insurance maintained by each Company as
of the Closing Date. All insurance maintained by the Companies is in full
force and effect, all premiums have been duly paid, no Company has received

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notice of violation or cancellation thereof, the Premises, and the use,
occupancy and operation thereof, comply in all material respects with all
Insurance Requirements, and, except as could not reasonably be expected to
result in a Material Adverse Effect, there exists no default under any
Insurance Requirement. Each Company has insurance in such amounts and covering
such risks and liabilities as are customary for companies of a similar size
engaged in similar businesses in similar locations.

          SECTION 3.20 Security Documents.

          (a) Security Agreement. The Security Agreement is effective to
create in favor of the Collateral Agent for the benefit of the Secured Parties,
legal, valid and enforceable Liens on, and security interests in, the Security
Agreement Collateral and, when (i) financing statements and other filings in
appropriate form are filed in the offices specified on Schedule 7 to the
Perfection Certificate and (ii) upon the taking of possession or control by the
Collateral Agent of the Security Agreement Collateral with respect to which a
security interest may be perfected only by possession or control (which
possession or control shall be given to the Collateral Agent to the extent
possession or control by the Collateral Agent is required by each Security
Agreement), the Liens created by the Security Agreement shall constitute fully
perfected Liens on, and security interests in, all right, title and interest of
the grantors thereunder in the Security Agreement Collateral (other than such
Security Agreement Collateral in which a security interest cannot be perfected
under the UCC as in effect at the relevant time in the relevant jurisdiction),
in each case subject to no Liens other than Permitted Liens; provided that it
is understood and agreed that any foreclosure and/or transfer pursuant to the
Security Agreement of any Equity Interests in any License Subsidiary that would
result in a change of control of such License Subsidiary may require the
consent of the FCC.

          (b) Copyright Office Filing. When the Security Agreement or a
short form thereof is filed in the United States Copyright Office, the Liens
created by such Security Agreement shall constitute fully perfected Liens on,
and security interests in, all right, title and interest of the grantors
thereunder in the Registered Copyrights and Registered Copyright Licenses (each
as defined in such Security Agreement), in each case subject to no Liens other
than Permitted Liens.

          (c) Valid Liens. Each Security Document delivered pursuant to
Sections 5.11 and 5.12 will, upon execution and delivery thereof,
be effective to create in favor of the Collateral Agent, for the benefit of the
Secured Parties, legal, valid and enforceable Liens on, and security interests
in, all of the Loan Parties’ right, title and interest in and to the Collateral
thereunder, and when all appropriate filings or recordings are made in the
appropriate offices as may be required under applicable law, such Security
Document will constitute fully perfected Liens on, and security interests in,
all right, title and interest of the Loan Parties in such Collateral, in each
case subject to no Liens other than the applicable Permitted Liens.

          SECTION 3.21 Merger Documents; Representations and Warranties in Merger
Agreement. The Lenders have been furnished true and complete copies of
each Merger Document to the extent executed and delivered on or prior to the
Closing Date. All representations and warranties of each Company set forth in
the Merger Agreement were true and correct in all material respects as of the
time such representations and warranties were made and shall be true and
correct in all material respects as of the Closing Date as if such
representations and warranties were made on and as of such date, unless stated
to relate to a specific earlier date, in which case such representations and
warranties shall be true and correct in all material respects as of such
earlier date.

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          SECTION 3.22 Anti-Terrorism Law. No Loan Party and, to the
knowledge of the Loan Parties, none of its Affiliates is in violation of any
Requirements of Law relating to terrorism or money laundering (“Anti-Terrorism
Laws”), including Executive Order No. 13224 on Terrorist Financing, effective
September 24, 2001 (the “Executive Order”), and the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001, Public Law 107-56.

          No Loan Party and to the knowledge of the Loan Parties, no Affiliate or
broker or other agent of any Loan Party acting or benefiting in any capacity in
connection with the Loans is any of the following:

        (i) a person that is listed in the annex to, or is otherwise subject
to the provisions of, the Executive Order;

        (ii) a person owned or controlled by, or acting for or on behalf of,
any person that is listed in the annex to, or is otherwise subject to the
provisions of, the Executive Order;

        (iii) a person with which any Lender is prohibited from dealing or
otherwise engaging in any transaction by any Anti-Terrorism Law;

        (iv) a person that commits, threatens or conspires to commit or
supports “terrorism” as defined in the Executive Order; or

        (v) a person that is named as a “specially designated national and
blocked person” on the most current list published by the U.S. Treasury
Department Office of Foreign Assets Control (“OFAC”) at its official
website or any replacement website or other replacement official
publication of such list.

          No Loan Party and, to the knowledge of the Loan Parties, no broker or
other agent of any Loan Party acting in any capacity in connection with the
Loans (i) conducts any business or engages in making or receiving any
contribution of funds, goods or services to or for the benefit of any person
described in paragraph (b) above, (ii) deals in, or otherwise engages in any
transaction relating to, any property or interests in property blocked pursuant
to the Executive Order, or (iii) engages in or conspires to engage in any
transaction that evades or avoids, or has the purpose of evading or avoiding,
or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism
Law.

          SECTION 3.23 FCC Licenses. The License Subsidiaries hold all
licenses, permits and other authorizations issued by the FCC or any State PUC
that are necessary and material to operation of the business of Borrowers and
their Subsidiaries (collectively, the “FCC Licenses”). Each FCC License has
been validly issued and is in full force and effect, except as would not,
individually or in the aggregate, result in a Material Adverse Effect.
Borrowers have no knowledge of any condition imposed by the FCC or any State
PUC as part of any FCC License which is neither set forth on the face thereof
as issued by the FCC or any State PUC nor contained in the FCC Rules or any
State PUC Rules applicable generally to businesses of Borrowers and their
Subsidiaries. Borrowers and their Subsidiaries are in compliance with all of
the terms and conditions of the FCC Licenses and with the FCC Rules, State PUC
Rules and the Communications Act, except as would not, individually or in the
aggregate, result in a Material Adverse Effect. No proceedings are pending or
are threatened which may reasonably be expected to result in (i) the
revocation, rescission, adverse modification, non-renewal or suspension of any
of the FCC Licenses, (ii) the denial of any pending application for an FCC
License, (iii) the issuance of any cease and desist order or (iv) the
imposition of any fine, forfeiture or other administrative action by the

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FCC or
any State PUC with respect to Borrowers or any of their Subsidiaries that, in
the case of any of clause (i), (ii), (iii) or (iv) above, would reasonably be
expected to result in a Material Adverse Effect. All fees (other than fees
disputed in good faith by a Loan Party) due and payable to the FCC or any State
PUC by Borrowers or any of their Subsidiaries have been paid and no event has
occurred which, with or without the giving of notice or lapse of time or both,
would constitute grounds for revocation or modification of any FCC License,
except as would not, individually or in the aggregate, result in a Material
Adverse Effect. All reports, applications and other documents required to be
filed by Borrowers or any of
their Subsidiaries with the FCC or any State PUC have been timely filed
and all such reports, applications and documents are true, complete and correct
in all material respects and neither Borrowers nor any or their Subsidiaries
have any knowledge of any matter (a) which could reasonably be expected to
result in the adverse modification, suspension or revocation of or the refusal
to renew any FCC License or the imposition on Borrowers or any of their
Subsidiaries of any fines or forfeitures by the FCC or any State PUC or (b)
which could reasonably be expected to result in the revocation, rescission,
reversal or adverse modification of any of Borrowers’ or any of their
Subsidiaries’ authorizations to operate as currently authorized under the
Communications Act, the FCC Rules and the PUC Rules, except as would not,
individually or in the aggregate, result in a Material Adverse Effect. There
are no unsatisfied or otherwise outstanding citations issued by the FCC or any
State PUC with respect to Borrowers or any of their Subsidiaries or any of
their respective operations, except as would not, individually or in the
aggregate, result in a Material Adverse Effect.

ARTICLE IV

CONDITIONS PRECEDENT

          SECTION 4.01 Conditions to the Making of the Loans. The obligation
of each Lender to fund the Loans requested to be made by it on the Closing Date
shall be subject to the prior or concurrent satisfaction of each of the
conditions precedent set forth in this Section 4.01.

          (a) Loan Documents. There shall have been delivered to the
Administrative Agent an executed counterpart of each of the Loan Documents and
the Perfection Certificate.

          (b) Corporate Documents. The Administrative Agent shall have
received:

     (i) a certificate of the secretary or assistant secretary of each
Loan Party dated the Closing Date, certifying (A) that attached thereto
is a true and complete copy of each Organizational Document of such Loan
Party certified (to the extent applicable) as of a recent date by the
Secretary of State of the state of its organization, (B) that attached
thereto is a true and complete copy of resolutions duly adopted by the
Board of Directors of such Loan Party authorizing the execution, delivery
and performance of the Loan Documents to which such person is a party
and, in the case of Borrowers, the borrowings hereunder, and that such
resolutions have not been modified, rescinded or amended and are in full
force and effect and (C) as to the incumbency and specimen signature of
each officer executing any Loan Document or any other document delivered
in connection herewith on behalf of such Loan Party (together with a
certificate of another officer as to the incumbency and specimen
signature of the secretary or assistant secretary executing the
certificate in this clause (i));

     (ii) a certificate as to the good standing of each Loan Party (in
so-called “long-form” if available) as of a recent date, from such
Secretary of State (or other applicable Governmental Authority); and

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     (iii) such other documents as the Administrative Agent may
reasonably request.

          (c) Officers’ Certificate. The Administrative Agent shall have
received a certificate, dated the Closing Date and signed by (i) the chief
executive officer and (ii) the chief financial officer or the treasurer of
Holdings, confirming compliance with the conditions precedent set forth in this
Section 4.01.

          (d) Transactions. The Transactions shall have been consummated or
shall be consummated simultaneously on the Closing Date, in each case in
accordance with the terms hereof and the terms of the Transaction Documents,
without the waiver or amendment of any such terms not approved by the
Administrative Agent and the Arranger.

          (e) Financial Statements; Pro Forma Balance Sheet; Projections.
The Lenders shall have received and shall be reasonably satisfied with the form
and substance of the financial statements described in Section 3.04 and
with the forecasts of the financial performance of Holdings and its
Subsidiaries.

          (f) Indebtedness and Minority Interests. After giving effect to
the Transactions and the other transactions contemplated hereby, no Company
shall have outstanding any Indebtedness or preferred stock other than (i) the
Loans hereunder, (ii) the Indebtedness listed on Schedule 6.01(b) and
(iii) Indebtedness owed to any Loan Party.

          (g) Opinions of Counsel. The Administrative Agent shall have
received, on behalf of itself, the other Agents, the Arranger and the Lenders,
a favorable written opinion of (i) each of Latham & Watkins LLP and Schulte
Roth & Zabel, LLP, special counsel for the Loan Parties, substantially to the
effect set forth in Exhibit L, in each case (A) dated the Closing Date,
(B) addressed to the Agents and the Lenders and (C) covering such other matters
relating to the Loan Documents and the Transactions as the Administrative Agent
shall reasonably request, and (ii) a copy of each legal opinion delivered under
the other Transaction Documents, accompanied by reliance letters from the party
delivering such opinion authorizing the Agents and Lenders to rely thereon as
if such opinion were addressed to them.

          (h) Solvency Certificate. The Administrative Agent shall have
received a solvency certificate in the form of Exhibit M, dated the
Closing Date.

          (i) Requirements of Law. The Administrative Agent shall be
reasonably satisfied that Holdings, its Subsidiaries and the Transactions shall
be in full compliance with all material Requirements of Law, including
Regulations T, U and X of the Board.

          (j) Consents. The Administrative Agent shall be satisfied that all
requisite Governmental Authorities and third parties shall have approved or
consented to the Transactions, and there shall be no governmental or judicial
action, actual or threatened, that has or would have, singly or in the
aggregate, a reasonable likelihood of restraining, preventing or imposing
burdensome conditions on the Transactions or the other transactions
contemplated hereby.

          (k) Litigation. There shall be no actions, suits or proceedings at
law or in equity by or before any Governmental Authority now pending or, to the
knowledge of any Company, threatened in writing against any Company or any
business, property or rights of any Company (i) that involve any Loan Document
or any of the Transactions, other than the Shareholder Proceedings, or (ii) as
to which

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there is a reasonable possibility of an adverse determination and
that, if adversely determined, could reasonably be expected, individually or in
the aggregate, to result in a Material Adverse Effect.

          (l) Sources and Uses. The sources and uses of the Loans shall be
as set forth in Section 3.12.

          (m) Fees. The Arranger and Administrative Agent shall have
received all Fees and other amounts due and payable on or prior to the Closing
Date, including, to the extent invoiced, reimbursement or payment of all
out-of-pocket expenses (including the reasonable legal fees and expenses of
Cahill Gordon & Reindel llp, special counsel to the Agents, and the reasonable
fees and expenses of any local counsel, foreign counsel, appraisers,
consultants and other advisors) required to be reimbursed or paid by Borrowers
hereunder or under any other Loan Document.

          (n) Personal Property Requirements. The Collateral Agent shall
have received:

     (i) all certificates, agreements or instruments representing or
evidencing the Securities Collateral accompanied by instruments of
transfer and stock powers undated and endorsed in blank, it being
understood the Equity Interests in GTES, LLC shall not be required to be
pledged if consent shall not have been obtained under the operating
agreement of GTES, LLC after Holdings and the Subsidiaries shall have
used reasonable best efforts to obtain such consent;

     (ii) the Intercompany Note executed by and among Holdings and each
of its Subsidiaries, accompanied by instruments of transfer undated and
endorsed in blank;

     (iii) all other certificates, agreements, including control
agreements, or instruments necessary to perfect the Collateral Agent’s
security interest in all Chattel Paper, all Instruments, all Deposit
Accounts (other than Excluded Accounts) and all Investment Property of
each Loan Party (as each such term is defined in the Security Agreement
and to the extent required by the Security Agreement);

     (iv) UCC financing statements and fixture filings in appropriate
form for filing under the UCC, filings with the United States Patent and
Trademark Office and United States Copyright Office and such other
documents under applicable Requirements of Law in each jurisdiction as
may be necessary or appropriate or, in the opinion of the Collateral
Agent, desirable to perfect the Liens created, or purported to be
created, by the Security Documents;

     (v) certified copies of UCC, United States Patent and Trademark
Office and United States Copyright Office, tax and judgment lien
searches, bankruptcy and pending lawsuit searches or equivalent reports
or searches, each of a recent date listing all effective financing
statements, lien notices or comparable documents that name any Loan Party
as debtor and that are filed in those state and county jurisdictions in
which any property of any Loan Party is located and the state and county
jurisdictions in which any Loan Party is organized or maintains its
principal place of business and such other searches that the Collateral
Agent deems necessary or appropriate, none of which encumber the
Collateral covered or intended to be covered by the Security Documents
(other than Permitted Liens or any other Liens acceptable to the
Collateral Agent); and

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     (vi) evidence acceptable to the Collateral Agent of payment or
arrangements for payment by the Loan Parties of all applicable recording
taxes, fees, charges, costs and expenses required for the recording of
the Security Documents.

          (o) Insurance. The Administrative Agent shall have received a copy
of, or a certificate as to coverage under, the insurance policies required by
Section 5.04 and the applicable provisions of the Security Documents,
each of which shall be endorsed or otherwise amended to include a “standard” or “New York” lender’s loss payable or mortgagee
endorsement (as applicable) and shall name the Collateral Agent, on behalf of
the Secured Parties, as additional insured, in form and substance reasonably
satisfactory to the Administrative Agent.

          (p) Establishment of Concentration Account; Minimum Cash on Hand.
Holdings shall have established a deposit account (the “Concentration Account”)
at the Collateral Agent which shall contain an amount of cash that is not less
than the Minimum Balance. The Collateral Agent and Borrowers shall have
entered into an account agreement with respect to the Concentration Account in
form and substance reasonably satisfactory to the Administrative Agent pursuant
to which, among other things, Borrowers shall be prohibited from making any
withdrawals from the Concentration Account that would result in an amount of
cash less than the Minimum Balance being contained therein. The Administrative
Agent shall be satisfied that Holdings and its Subsidiaries shall have no less
than an aggregate of $60.0 million in cash (and/or in Cash Equivalents) on hand
as of the Closing Date; provided that the cash in the Concentration Account
shall be included in determining such $60.0 million amount.

          (q) Account Instructions. Borrowers and each other Loan Party
shall have instructed each of the institutions at which it maintains a deposit
account to transfer any funds in such deposit account at the end of each
Business Day to a concentration account over which the Collateral Agent has a
Control Agreement.

          (r) Notice. The Administrative Agent shall have received a
Borrowing Request as required by Section 2.03.

          (s) No Default. Each Loan Party shall be in compliance in all
material respects with all the terms and provisions set forth herein and in
each other Loan Document on its part to be observed or performed, and, at the
time of and immediately after giving effect to the making of the Loans and the
application of the proceeds thereof, no Default shall have occurred and be
continuing on such date.

          (t) Representations and Warranties. Each of the representations
and warranties made by any Loan Party set forth in Article III hereof or
in any other Loan Document shall be true and correct.

          (u) No Legal Bar. No order, judgment or decree of any Governmental
Authority shall purport to restrain any Lender from making any Loans to be made
by it. No injunction or other restraining order shall have been issued, shall
be pending or noticed with respect to any action, suit or proceeding seeking to
enjoin or otherwise prevent the consummation of, or to recover any damages or
obtain relief as a result of, the transactions contemplated by this Agreement
or the making of Loans hereunder.

          (v) Minimum EBITDA. With respect to the twelve-month period
referred to in Section 3.04(c), (i) Arch Public’s Consolidated EBITDA
shall not be less than $157.0 million, and (ii) Metrocall Public’s Consolidated
EBITDA shall not be less than $103.0 million; provided, however, that for
purposes of this Section 4.01(v) only, Consolidated EBITDA shall be
calculated in a manner consistent

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with that contained in the forecasts provided
to the Arranger prior to October 11, 2004 and otherwise satisfactory to the
Arranger.

ARTICLE V

AFFIRMATIVE COVENANTS

          Each Loan Party warrants, covenants and agrees with each Lender that so
long as this Agreement shall remain in effect and until the Commitments have
been terminated and the principal of and interest on each Loan, all fees and
all other expenses or amounts payable under any Loan Document shall have been
paid in full, unless the Required Lenders shall otherwise consent in writing,
each Loan Party will, and will cause each of its Subsidiaries to:

          SECTION 5.01 Financial Statements, Reports, etc. Furnish to the
Administrative Agent and each Lender:

     (a) Annual Reports. As soon as available and in any event
within 90 days (or such earlier date on which Holdings is required to
file a Form 10-K under the Exchange Act) after the end of each fiscal
year, beginning with the fiscal year ending December 31, 2004, (i) the
consolidated balance sheet of Holdings as of the end of such fiscal year
and related consolidated statements of income, cash flows and
stockholders’ equity for such fiscal year, in comparative form with such
financial statements as of the end of, and for, the preceding fiscal
year, and notes thereto, all prepared in accordance with Regulation S-X
and accompanied by an opinion of Ernst & Young LLP,
PricewaterhouseCoopers LLC or other independent public accountants of
recognized national standing satisfactory to the Administrative Agent
(which opinion shall not be qualified as to scope or contain any going
concern or other qualification), stating that such financial statements
fairly present, in all material respects, the consolidated financial
condition, results of operations and cash flows of Holdings as of the
dates and for the periods specified in accordance with GAAP, (ii) a
management report in a form reasonably satisfactory to the Administrative
Agent setting forth (A) statement of income items and Consolidated EBITDA
of Holdings for such fiscal year, showing variance, by dollar amount and
percentage, from amounts for the previous fiscal year and budgeted
amounts, and (B) key operational information and statistics for such
fiscal year consistent with internal and industry-wide reporting
standards, and (iii) a narrative report and management’s discussion and
analysis, in a form reasonably satisfactory to the Administrative Agent,
of the financial condition and results of operations of Holdings for
such fiscal year, as compared to amounts for the previous fiscal year and
budgeted amounts (it being understood that the information required by
clause (i) may be furnished in the form of a Form 10-K);

     (b) Quarterly Reports. As soon as available and in any event
within 45 days (or such earlier date on which Holdings is required to
file a Form 10-Q under the Exchange Act) after the end of each of the
first three fiscal quarters of each fiscal year, beginning with the
fiscal quarter ending March 31, 2005, (i) the unaudited consolidated
balance sheet of Holdings as of the end of such fiscal quarter and
related consolidated statements of income and cash flows for such fiscal
quarter and for the then elapsed portion of the fiscal year, in
comparative form with the consolidated statements of income and cash
flows for the comparable periods in the previous fiscal year, and notes
thereto, all prepared in accordance with Regulation S-X under the
Securities Act and accompanied by a certificate of a Financial Officer
stating that such financial statements fairly present, in all material
respects, the consolidated financial condition, results of operations and
cash flows of Holdings as of the date and for the periods specified in
accordance with GAAP

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consistently applied, and on a basis consistent with
audited financial statements referred to in clause (a) of this Section,
subject to normal year-end audit adjustments, (ii) a management report in
a form reasonably satisfactory to the Administrative Agent setting forth
(A) statement of income items and Consolidated EBITDA of Holdings
for such fiscal quarter and for the then elapsed portion of the fiscal
year, showing variance, by dollar amount and percentage, from amounts for
the comparable periods in the previous fiscal year and budgeted amounts
and (B) key operational information and statistics for such fiscal
quarter and for the then elapsed portion of the fiscal year consistent
with internal and industry-wide reporting standards, and (iii) a
narrative report and management’s discussion and analysis, in a form
reasonably satisfactory to the Administrative Agent, of the financial
condition and results of operations for such fiscal quarter and the then
elapsed portion of the fiscal year, as compared to the comparable periods
in the previous fiscal year and budgeted amounts (it being understood
that the information required by clause (i) may be furnished in the form
of a Form 10-Q);

     (c) Financial Officer’s Certificate. (i) Concurrently with
any delivery of financial statements under Section 5.01(a) or
(b), a Compliance Certificate (A) certifying that no Default has
occurred or, if such a Default has occurred, specifying the nature and
extent thereof and any corrective action taken or proposed to be taken
with respect thereto, (B) beginning with the fiscal year ending December
31, 2004, setting forth computations in reasonable detail reasonably
satisfactory to the Administrative Agent demonstrating compliance with
the covenants contained in Sections 6.07(f) and 6.10 and,
concurrently with any delivery of financial statements under Section
5.01(a) above, setting forth Holdings’ calculation of Excess Cash
Flow and (C) showing a reconciliation of Consolidated EBITDA to the net
income set forth on the statement of income; and (ii) concurrently with
any delivery of financial statements under Section 5.01(a) above,
beginning with the fiscal year ending December 31, 2004, a report of the
accounting firm opining on or certifying such financial statements
stating that in the course of its regular audit of the financial
statements of Holdings and its Subsidiaries, which audit was conducted in
accordance with generally accepted auditing standards, such accounting
firm obtained no knowledge that any Default insofar as it relates to
financial or accounting matters (which certificates may be limited to the
extent required by accounting rules, guidelines or practice) has occurred
or, if in the opinion of such accounting firm such a Default has
occurred, specifying the nature and extent thereof;

     (d) Financial Officer’s Certificate Regarding Collateral.
Concurrently with any delivery of financial statements under Section
5.01(a), a certificate of a Financial Officer setting forth the
information required pursuant to the Perfection Certificate Supplement or
confirming that there has been no change in such information since the
date of the Perfection Certificate or latest Perfection Certificate
Supplement;

     (e) Public Reports. Promptly after the same become publicly
available, copies (or notice) of all periodic and other reports, proxy
statements and other materials filed by any Company with the Securities
and Exchange Commission, or any Governmental Authority succeeding to any
or all of the functions of said Commission, or with any national
securities exchange, or distributed to holders of its Indebtedness
pursuant to the terms of the documentation governing such Indebtedness
(or any trustee, agent or other representative therefor), as the case may
be;

     (f) Management Letters. Promptly after the receipt thereof
by any Company, a copy of any “management letter” received by any such
person from its certified public accountants and the management’s
responses thereto;

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          (g) Budgets. Within 30 days after the beginning of each
fiscal year, a budget for Holdings in form reasonably satisfactory to the
Administrative Agent, but to include balance sheets, statements of income
and sources and uses of cash, for (i) each fiscal quarter of such fiscal
year prepared in detail and (ii) each fiscal year thereafter, through and
including the fiscal year in which the Maturity Date occurs, prepared in
summary form, in each case, with appropriate presentation and discussion
of the principal assumptions upon which such budgets are based,
accompanied by the statement of a Financial Officer of Holdings to the
effect that the budget of Holdings is a reasonable estimate for the
periods covered thereby and, promptly when available, any significant
revisions of such budget;

          (h) Organization. Concurrently with any delivery of
financial statements under Section 5.01(a), an accurate
organizational chart as required by Section 3.07(c), or
confirmation that there are no changes to Schedule 10 to the
Perfection Certificate;

          (i) Organizational Documents. Promptly provide copies of any
Organizational Documents that have been amended or modified in accordance
with the terms hereof and deliver a copy of any notice of default given
or received by any Company under any Organizational Document within 15
days after such Company gives or receives such notice; and

          (j) Other Information. Promptly, from time to time, such
other information regarding the operations, business affairs and
financial condition of any Company, or compliance with the terms of any
Loan Document, as the Administrative Agent or any Lender may reasonably
request.

          SECTION 5.02 Litigation and Other Notices. Furnish to the
Administrative Agent written notice of the following promptly (and, in any
event, within five Business Days after obtaining knowledge thereof):

     (a) any Default, specifying the nature and extent thereof and the
corrective action (if any) taken or proposed to be taken with respect
thereto;

     (b) the filing or commencement of, or any threat or notice of
intention of any person to file or commence, any action, suit, litigation
or proceeding, whether at law or in equity by or before any Governmental
Authority, (i) against any Company or any Affiliate thereof that could
reasonably be expected to result in a Material Adverse Effect or (ii)
with respect to any Loan Document;

     (c) any development that has resulted in, or could reasonably be
expected to result in a Material Adverse Effect; and

     (d) the occurrence of a Casualty Event.

          SECTION 5.03 Existence; Businesses and Properties.

          (a) Do or cause to be done all things reasonably necessary to preserve,
renew and maintain in full force and effect its legal existence, except as
otherwise expressly permitted under Section 6.05 or Section 6.06
or, in the case of any Subsidiary, where the failure to perform such
obligations, individually or in the aggregate, could not reasonably be expected
to result in a Material Adverse Effect.

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          (b) Do or cause to be done all things reasonably necessary to obtain,
preserve, renew, extend and keep in full force and effect the rights, licenses,
permits, privileges, franchises, authorizations, patents, copyrights,
trademarks and trade names material to the conduct of its business; maintain
and operate such business in substantially the manner in which it is presently
conducted and operated; comply with all applicable Requirements of Law
(including any and all zoning, building, Environmental Law, ordinance, code or
approval or any building permits or any restrictions of record or agreements
affecting the Real Property) and decrees and orders of any Governmental
Authority, whether now in effect or hereafter enacted, except where the failure
to comply, individually or in the aggregate, could not reasonably be expected
to result in a Material Adverse Effect; pay and perform its obligations under
all Leases and Transaction Documents; and at all times maintain, preserve and
protect all property material to the conduct of such business and keep such
property in good repair, working order and condition (other than wear and tear
occurring in the ordinary course of business) and from time to time make, or
cause to be made, all needful and proper repairs, renewals, additions,
improvements and replacements thereto necessary in order that the business
carried on in connection therewith may be properly conducted at all times in
its reasonable business judgment; provided that nothing in this Section
5.03(b) shall prevent (i) sales of property, consolidations or mergers by
or involving any Company in accordance with Section 6.05 or Section
6.06; (ii) the withdrawal by any Company of its qualification as a foreign
corporation in any jurisdiction where such withdrawal, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect; or (iii) the abandonment by any Company of any rights, franchises,
licenses, trademarks, trade names, copyrights or patents that such person
reasonably determines are not useful to its business or no longer commercially
desirable.

          SECTION 5.04 Insurance.

          (a) Generally. Keep its insurable property adequately insured at
all times by financially sound and reputable insurers; maintain such other
insurance, to such extent and against such risks as is customary with companies
in the same or similar businesses operating in the same or similar locations in
accordance with its reasonable business judgment, including insurance with
respect to Mortgaged Properties and other properties material to the business
of the Companies against such casualties and contingencies and of such types
and in such amounts with such deductibles as is customary in the case of
similar businesses operating in the same or similar locations in accordance
with its reasonable business judgment, including (i) physical hazard insurance
on an “all risk” basis, (ii) commercial general liability against claims for
bodily injury, death or property damage covering any and all insurable claims,
(iii) explosion insurance in respect of any boilers, machinery or similar
apparatus constituting Collateral, (iv) business interruption insurance and (v)
worker’s compensation insurance and such other insurance as may be required by
any Requirement of Law (such policies to be in such form and amounts and having
such coverage as may be reasonably satisfactory to the Administrative Agent and
the Collateral Agent); provided that with respect to physical hazard insurance,
neither the Collateral Agent nor the applicable Company shall agree to the
adjustment of any claim thereunder without the consent of the other (such
consent not to be unreasonably withheld or delayed); provided, further, that no
consent of any Company shall be required during an Event of Default.

          (b) Requirements of Insurance. All such insurance shall (i)
provide that no cancellation, material reduction in amount or material change
in coverage thereof shall be effective until at least 30 days after receipt by
the Collateral Agent of written notice thereof, (ii) name the Collateral Agent
as mortgagee (in the case of property insurance) or additional insured on
behalf of the Secured Parties (in the case of liability insurance) or loss
payee (in the case of property insurance), as applicable and (iii) be
reasonably satisfactory in all other respects to the Collateral Agent.

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          (c) Notice to Agents. Notify the Administrative Agent and the
Collateral Agent promptly whenever any separate insurance concurrent in form or
contributing in the event of loss with that required to be maintained under
this Section 5.04 is taken out by any Company; and promptly deliver to
the Administrative Agent and the Collateral Agent a duplicate original copy of
such policy or policies.

          (d) Flood Insurance. With respect to each Mortgaged Property,
obtain flood insurance in such total amount as the Administrative Agent may
from time to time reasonably require, if at any time the area in which any
improvements located on any Mortgaged Property is designated a “flood hazard
area” in any Flood Insurance Rate Map published by the Federal Emergency
Management Agency (or any successor agency), and otherwise comply with the
National Flood Insurance Program as set forth in the Flood Disaster Protection
Act of 1973, as amended from time to time.

          (e) Broker’s Report. Deliver to the Administrative Agent a report
of a reputable insurance broker with respect to such insurance and such
supplemental reports with respect thereto as the Administrative Agent or the
Collateral Agent may from time to time reasonably request.

          (f) Mortgaged Properties. No Loan Party that is an owner of
Mortgaged Property shall take any action that is reasonably likely to be the
basis for termination, revocation or denial of any insurance coverage required
to be maintained under such Loan Party’s respective Mortgage or that could be
the basis for a defense to any claim under any Insurance Policy maintained in
respect of the Premises, and each Loan Party shall otherwise comply in all
material respects with all Insurance Requirements in respect of the Premises;
provided, however, that each Loan Party may, at its own expense and after
written notice to the Administrative Agent, (i) contest the applicability or
enforceability of any such Insurance Requirements by appropriate legal
proceedings, the prosecution of which does not constitute a basis for
cancellation or revocation of any insurance coverage required under this
Section 5.04 or (ii) cause the Insurance Policy containing any such
Insurance Requirement to be replaced by a new policy complying with the
provisions of this Section 5.04.

          SECTION 5.05 Obligations and Taxes.

          (a) Payment of Obligations. Pay its Indebtedness and other
obligations promptly and in accordance with their terms and pay and discharge
promptly when due all Taxes, assessments and governmental charges or levies
imposed upon it or upon its income or profits or in respect of its property,
before the same shall become delinquent or in default, as well as all lawful
claims for labor, services, materials and supplies or otherwise that, if
unpaid, might give rise to a Lien other than a Permitted Lien upon such
properties or any part thereof; provided that such payment and discharge shall
not be required with respect to any such Tax, assessment, charge, levy or claim
so long as (x)(i) the validity or amount thereof shall be contested in good
faith by appropriate proceedings timely instituted and diligently conducted and
the applicable Company shall have set aside on its books adequate reserves or
other appropriate provisions with respect thereto in accordance with GAAP, (ii)
such contest operates to suspend collection of the contested obligation, Tax,
assessment or charge and enforcement of a Lien other than a Permitted Lien and
(iii) in the case of Collateral, the applicable Company shall have otherwise
complied with the Contested Collateral Lien Conditions and (y) the failure to
pay could not reasonably be expected to result in a Material Adverse Effect.

          (b) Filing of Returns. Timely and correctly file all material Tax
Returns required to be filed by it. Withhold, collect and remit all Taxes that
it is required to collect, withhold or remit.

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          (c) Tax Shelter Reporting. Borrowers do not intend to treat the
Loans as being a “reportable transaction” within the meaning of Treasury
Regulation Section 1.6011-4. In the event Borrowers determine to take any
action inconsistent with such intention, it will promptly notify the
Administrative Agent thereof.

          SECTION 5.06 Employee Benefits. Comply in all material respects
with the applicable provisions of ERISA and the Code and furnish to the
Administrative Agent (x) as soon as possible after, and in any event within 15
days after any Responsible Officer of any Company or any ERISA Affiliates of
any Company knows or has reason to know that, any ERISA Event has occurred
that, alone or together with any other ERISA Event, could reasonably be
expected to result in liability of the Companies or any of their ERISA
Affiliates in an aggregate amount exceeding $500,000 or the imposition of a
Lien, a statement of a Financial Officer of Borrowers setting forth details as
to such ERISA Event and the action, if any, that the Companies propose to take
with respect thereto, and (y) upon request by the Administrative Agent, copies
of (i) each Schedule B (Actuarial Information) to the annual report (Form 5500
Series) filed by any Company or any ERISA Affiliate with the Internal Revenue
Service with respect to each Plan; (ii) the most recent actuarial valuation
report for each Plan; (iii) all notices received by any Company or any ERISA
Affiliate from a Multiemployer Plan sponsor or any governmental agency
concerning an ERISA Event; and (iv) such other documents or governmental
reports or filings relating to any Plan (or employee benefit plan sponsored or
contributed to by any Company) as the Administrative Agent shall reasonably
request.

          SECTION 5.07 Maintaining Records; Access to Properties and Inspections;
Annual Meetings.

          (a) Keep proper books of record and account in which full, true and
correct entries in conformity with GAAP and all Requirements of Law are made of
all dealings and transactions in relation to its business and activities. Each
Company will permit any representatives designated by the Administrative Agent
or any Lender (in the case of a Lender, unless reimbursed pursuant to
Section 10.03(a)(ii), at the expense of such Lender) to visit and
inspect the financial records and, subject to the right of any tenants, the
property of such Company at reasonable times and upon reasonable prior written
notice and to make extracts from and copies of such financial records, and
permit any representatives designated by the Administrative Agent or any Lender
(it being understood that the Loan Parties and their Subsidiaries shall have
the right to have one or more of their employees or other agents accompany such
representatives) to discuss the affairs, finances, accounts and condition of
any Company with the officers and employees thereof and advisors therefor
(including independent accountants), in each case, other than (i) materials and
affairs protected by attorney-client privilege and (ii) unless the
Administrative Agent or such Lender agrees to be bound by such confidentiality
obligations, materials which such Company may not disclose without violation of
confidentiality obligations binding upon it.

          (b) Within 150 days after the end of each fiscal year of the Companies, at
the request of the Administrative Agent or Required Lenders, hold a meeting (at
a mutually agreeable location, venue and time or, at the option of the
Administrative Agent, by conference call, the costs of such venue or call to be
paid by Borrowers) with all Lenders who choose to attend such meeting, at which
meeting shall be reviewed the financial results of the previous fiscal year and
the financial condition of the Companies and the budgets presented for the
current fiscal year of the Companies.

          SECTION 5.08 Use of Proceeds. Use the proceeds of the Loans only
for the purposes set forth in Section 3.12.

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          SECTION 5.09 Compliance with Environmental Laws; Environmental
Reports.

          (a) Comply in all material respects with all Environmental Laws and
Environmental Permits applicable to its operations and Real Property and cause
all lessees of Real Property of any Company to comply with all provisions of
the applicable lease, except where the failure to so comply would not
reasonably be expected to cause a Material Adverse Effect; obtain and renew all
material Environmental Permits applicable to its operations and Real Property;
and conduct all Responses required by, and in accordance with, Environmental
Laws; provided that no Company shall be required to undertake any Response to
the extent that its obligation to do so is being contested in good faith and by
proper proceedings and appropriate reserves are being maintained with respect
to such circumstances in accordance with GAAP.

          (b) If a Default caused by reason of a breach of Section 3.18 or
Section 5.09(a) shall have occurred and be continuing for more than 20
days without the Companies commencing activities reasonably likely to cure such
Default, at the written request of the Administrative Agent or the Required
Lenders through the Administrative Agent, provide to the Lenders within 45 days
after such request, at the expense of Borrowers, an environmental assessment
report regarding the matters which are the subject of such Default, including,
where appropriate, any soil and/or groundwater sampling, prepared by an
environmental consulting firm and, in the form and substance, reasonably
acceptable to the Administrative Agent and indicating the presence or absence
of Hazardous Materials and the estimated cost of any compliance or Response to
address them.

          (c) Each Loan Party that is an owner of Mortgaged Property shall not
install nor permit to be installed in the Mortgaged Property any Hazardous
Materials, other than in compliance with applicable Environmental Laws.

          SECTION 5.10 [Reserved].

          SECTION 5.11 Additional Collateral; Additional Guarantors.

          (a) Subject to this Section 5.11, with respect to any property
acquired after the Closing Date by any Loan Party that is intended to be
subject to the Lien created by any of the Security Documents but is not so
subject, promptly (and in any event within 30 days after the acquisition
thereof) (i) execute and deliver to the Administrative Agent and the Collateral
Agent such amendments or supplements to the relevant Security Documents or such
other documents as the Administrative Agent or the Collateral Agent shall deem
reasonably necessary or advisable to grant to the Collateral Agent, for its
benefit and for the benefit of the other Secured Parties, a Lien on such
property subject to no Liens other than Permitted Liens, and (ii) take all
actions reasonably necessary to cause such Lien to be duly perfected to the
extent required by such Security Document in accordance with all applicable
Requirements of Law, including the filing of financing statements in such
jurisdictions as may be reasonably requested by the Administrative Agent.
Borrowers shall otherwise take such actions and execute and/or deliver to the
Collateral Agent such documents as the Administrative Agent or the Collateral
Agent shall require to confirm the validity, perfection and priority of the
Lien of the Security Documents against such after-acquired properties.

          (b) With respect to any person that is or becomes a Subsidiary after the
Closing Date, promptly (and in any event within 30 days after such person
becomes a Subsidiary) (i) deliver to the Collateral Agent the certificates, if
any, representing all of the Equity Interests of such Subsidiary owned
by a Loan Party, together with undated stock powers or other appropriate
instruments of transfer executed

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and delivered in blank by a duly authorized
officer of the holder(s) of such Equity Interests, and all intercompany notes
owing from such Subsidiary to any Loan Party together with instruments of
transfer executed and delivered in blank by a duly authorized officer of such
Loan Party and (ii) cause such new Subsidiary (A) to execute a Joinder
Agreement or such comparable documentation to become a Guarantor and a joinder
agreement to the Security Agreement, substantially in the form annexed thereto
or, in the case of a Foreign Subsidiary with a book value in excess of
$500,000, execute a security agreement compatible with the laws of such Foreign
Subsidiary’s jurisdiction in form and substance reasonably satisfactory to the
Administrative Agent, and (B) to take all actions reasonably necessary or
advisable in the opinion of the Administrative Agent or the Collateral Agent to
cause the Lien created by the applicable Security Agreement to be duly
perfected to the extent required by such agreement in accordance with all
applicable Requirements of Law, including the filing of financing statements in
such jurisdictions as may be reasonably requested by the Administrative Agent
or the Collateral Agent. Notwithstanding the foregoing, (1) the Equity
Interests required to be delivered to the Collateral Agent pursuant to clause
(i) of this Section 5.11(b) shall not include any Equity Interests of a
Foreign Subsidiary created or acquired after the Closing Date and (2) no
Foreign Subsidiary shall be required to take the actions specified in clause
(ii) of this Section 5.11(b), if, in the case of either clause (1) or
(2), doing so would constitute an investment of earnings in United States
property under Section 956 (or a successor provision) of the Code, which
investment would or could reasonably be expected to trigger a material increase
in the net income of a United States shareholder of such Subsidiary pursuant to
Section 951 (or a successor provision) of the Code, as reasonably determined by
the Administrative Agent; provided that this exception shall not apply to (A)
Voting Stock of any Subsidiary which is a first-tier controlled foreign
corporation (as defined in Section 957(a) of the Code) representing 66% of the
total voting power of all outstanding Voting Stock of such Subsidiary and (B)
100% of the Equity Interests not constituting Voting Stock of any such
Subsidiary, except that any such Equity Interests constituting “stock entitled
to vote” within the meaning of Treasury Regulation Section 1.956-2(c)(2) shall
be treated as Voting Stock for purposes of this Section 5.11(b).

          (c) Promptly grant to the Collateral Agent, within 60 days after the
acquisition thereof, a security interest in and Mortgage on each Real Property
owned in fee by such Loan Party as is acquired by such Loan Party after the
Closing Date and that, together with any improvements thereon, individually has
a fair market value of at least $500,000, as additional security for the
Secured Obligations; provided that, upon the request of the Required Lenders,
each Loan Party shall, within 60 days after such request, grant a security
interest in and Mortgage on any other Real Property owned in fee by such Loan
Party that, together with any improvements thereon, individually has a fair
market value of at least $100,000, as additional security for the Secured
Obligations. Each such Mortgage shall be granted pursuant to documentation
reasonably satisfactory in form and substance to Borrowers and the
Administrative Agent and the Collateral Agent and shall constitute valid and
enforceable perfected Liens subject only to Permitted Liens or other Liens
acceptable to the Collateral Agent. The Mortgages or instruments related
thereto shall be duly recorded or filed in such manner and in such places as
are required by law to establish, perfect, preserve and protect the Liens in
favor of the Collateral Agent required to be granted pursuant to the Mortgages
and all taxes, fees and other charges payable in connection therewith shall be
paid in full. Such Loan Party shall otherwise take such actions and execute
and/or deliver to the Collateral Agent such documents as the Administrative
Agent or the Collateral Agent shall reasonably require to confirm the validity,
perfection and priority of the Lien of any existing Mortgage or new Mortgage
against such after-acquired Real Property (including a Title Policy, a Survey
and local counsel opinion (in form and substance reasonably satisfactory to the
Administrative Agent and the Collateral Agent) in respect of such Mortgage).

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          SECTION 5.12 Security Interests; Further Assurances. Promptly,
upon the reasonable request of the Administrative Agent or the Collateral
Agent, at Borrowers’ expense, execute, acknowledge and deliver, or cause the
execution, acknowledgment and delivery of, and thereafter register, file or
record, or cause to be registered, filed or recorded, in an appropriate
governmental office, any document or instrument supplemental to or confirmatory
of the Security Documents or otherwise deemed by the Administrative Agent or
the Collateral Agent reasonably necessary or desirable for the continued
validity, perfection and priority of the Liens on the Collateral covered
thereby subject to no other Liens except as permitted by the applicable
Security Document, or obtain any consents or waivers as may be necessary or
appropriate in connection therewith. Deliver or cause to be delivered to the
Administrative Agent and the Collateral Agent from time to time such other
documentation, consents, authorizations, approvals and orders in form and
substance reasonably satisfactory to the Administrative Agent and the
Collateral Agent as the Administrative Agent and the Collateral Agent shall
reasonably deem necessary to perfect or maintain the Liens on the Collateral
pursuant to the Security Documents. Upon the exercise by the Administrative
Agent, the Collateral Agent or any Lender of any power, right, privilege or
remedy pursuant to any Loan Document which requires any consent, approval,
registration, qualification or authorization of any Governmental Authority
execute and deliver all applications, certifications, instruments and other
documents and papers that the Administrative Agent, the Collateral Agent or
such Lender may reasonably require. If the Administrative Agent, the
Collateral Agent or the Required Lenders determine that they are required by a
Requirement of Law to have appraisals prepared in respect of the Real Property
of any Loan Party constituting Collateral, Borrowers shall provide to the
Administrative Agent appraisals that satisfy the applicable requirements of the
Real Estate Appraisal Reform Amendments of FIRREA and are otherwise in form and
substance reasonably satisfactory to the Administrative Agent and the
Collateral Agent.

          SECTION 5.13 Information Regarding Collateral.

          (a) Not effect any change (i) in any Loan Party’s legal name, (ii) in the
location of any Loan Party’s chief executive office, (iii) in any Loan Party’s
identity or organizational structure, (iv) in any Loan Party’s Federal Taxpayer
Identification Number or organizational identification number, if any, or (v)
in any Loan Party’s jurisdiction of organization (in each case, including by
merging with or into any other entity, reorganizing, dissolving, liquidating,
reorganizing or organizing in any other jurisdiction), until (A) it shall have
given the Collateral Agent and the Administrative Agent not less than 15 days’
prior written notice (in the form of an Officers’ Certificate), or such lesser
notice period agreed to by the Collateral Agent, of its intention so to do,
describing such change and providing such other information in connection
therewith as the Collateral Agent or the Administrative Agent may reasonably
request and (B) it shall have taken all action reasonably satisfactory to the
Collateral Agent to maintain the perfection and priority of the security
interest of the Collateral Agent for the benefit of the Secured Parties in the
Collateral, if applicable. Each Loan Party agrees to promptly provide the
Collateral Agent with certified Organizational Documents reflecting any of the
changes described in the preceding sentence. Each Loan Party also agrees to
promptly notify the Collateral Agent of any change in the location of any
office in which it maintains books or records relating to Collateral owned by
it or any office or facility at which Collateral is located (including the
establishment of any such new office or facility), other than changes in
location to a Mortgaged Property or a leased property subject to a Landlord’s
Lien Waiver, Access Agreement and Consent.

          (b) Concurrently with the delivery of financial statements pursuant to
Section 5.01(a), deliver to the Administrative Agent and the Collateral
Agent a Perfection Certificate Supplement and a certificate of a Financial
Officer and the chief legal officer of Holdings certifying that all UCC
financing statements (including fixture filings, as applicable) or other
appropriate filings,
recordings

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or registrations, including all refilings, rerecordings and
reregistrations, containing a description of the Collateral have been filed of
record in each governmental, municipal or other appropriate office in each
jurisdiction necessary to protect and perfect the security interests and Liens
under the Security Documents for a period of not less than 18 months after the
date of such certificate (except as noted therein with respect to any
continuation statements to be filed within such period).

          SECTION 5.14 Maintenance of Minimum Balance in Concentration
Account. Maintain no less than the Minimum Balance in the Concentration
Account at all times, and ensure that the security interest of the Collateral
Agent in the Concentration Account is perfected at all times.

          SECTION 5.15 Certain Obligations Relating to Owned Real Properties.

          (a) With respect to each Mortgaged Property, on or before the date a
Mortgage is to be delivered with respect to such Mortgaged Property under
Section 5.11(c), to deliver to the Administrative Agent the following:

     (i) a Mortgage encumbering such Mortgaged Property in favor of the
Collateral Agent, for the benefit of the Secured Parties, duly executed
and acknowledged by each Loan Party that is the owner of or holder of any
interest in such Mortgaged Property, and otherwise in form for recording
in the recording office of each applicable political subdivision where
such Mortgaged Property is situated, together with such certificates,
affidavits, questionnaires or returns as shall be required in connection
with the recording or filing thereof to create a lien under applicable
Requirements of Law, and such financing statements and any other
instruments necessary to grant a mortgage lien under the laws of any
applicable jurisdiction, all of which shall be in form and substance
reasonably satisfactory to Borrower and the Collateral Agent;

     (ii) with respect to such Mortgaged Property, such consents,
approvals, amendments, supplements, estoppels, tenant subordination
agreements or other instruments as shall reasonably be deemed necessary
by the Collateral Agent in order for the applicable Loan Party to grant
the Lien contemplated by the Mortgage with respect to such Mortgaged
Property;

     (iii) with respect to such Mortgage, a policy of title insurance (or
marked up title insurance commitment having the effect of a policy of
title insurance) insuring the Lien of such Mortgage as a valid first
mortgage Lien on the Mortgaged Property and fixtures described therein in
the amount equal to not less than 110% of the fair market value of such
Mortgaged Property and fixtures, which policy (or such marked-up
commitment) (each, a “Title Policy”) shall (A) be issued by the Title
Company, (B) to the extent necessary, include such reinsurance
arrangements (with provisions for direct access, if necessary) as shall
be reasonably acceptable to the Collateral Agent, (C) contain a “tie-in”
or “cluster” endorsement, if available under applicable law (i.e.,
policies which insure against losses regardless of location or allocated
value of the insured property up to a stated maximum coverage amount),
(D) have been supplemented by such endorsements (or where such
endorsements are not available, opinions of special counsel, architects
or other professionals reasonably acceptable to the Collateral Agent) as
shall be reasonably requested by the Collateral Agent (including
endorsements on matters relating to usury, first loss, last dollar,
zoning, contiguity, revolving credit, doing business, non-imputation,
survey, variable rate, environmental lien, subdivision, mortgage
recording tax, separate tax lot and so-called comprehensive coverage over
covenants and restrictions) and (E) contain no exceptions to title other
than exceptions reasonably acceptable to the Collateral Agent;

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     (iv) with respect to such Mortgaged Property, such affidavits,
certificates, information (including financial data) and instruments of
indemnification (including a so-called “gap” indemnification) as shall be
required to induce the Title Company to issue the Title Policies and
endorsements contemplated above;

     (v) evidence reasonably acceptable to the Collateral Agent of
payment by Borrowers of all Title Policy premiums, search and examination
charges, escrow charges and related charges, mortgage recording taxes,
fees, charges, costs and expenses required for the recording of the
Mortgages and issuance of the Title Policies referred to above;

     (vi) with respect to such Mortgaged Property, copies of all Leases
in which Holdings or any Subsidiary holds the lessor’s interest or other
agreements relating to possessory interests, if any. To the extent any
of the foregoing affect such Mortgaged Property, such agreement shall be
subordinate to the Lien of the Mortgage to be recorded against such
Mortgaged Property, either expressly by its terms or pursuant to a
subordination, non-disturbance and attornment agreement, and shall
otherwise be acceptable to the Collateral Agent;

     (vii) with respect to such Mortgaged Property, each Company shall
have made all notifications, registrations and filings, to the extent
required by, and in accordance with, all Governmental Real Property
Disclosure Requirements applicable to such Mortgaged Property;

     (viii) Surveys with respect to each Mortgaged Property; and

     (ix) a completed Federal Emergency Management Agency Standard Flood
Hazard Determination with respect to such Mortgaged Property.

          (b) In the event that the sale of the real property located at 18311 West
Ten Mile Road, Southfield, MI has not closed within 90 days after the Closing
Date (or such later date as may be agreed to by the Collateral Agent), promptly
deliver all the items sets forth in the provisions of subparagraph (a) of this
Section 5.15 with respect thereto.

          SECTION 5.16 Certain Obligations relating to Leases.

          (a) In the event that any Loan Party, in the capacity of a lessee, enters
into or renews any Material Lease after the Closing Date, use commercially
reasonable efforts to cause a Landlord’s Lien Waiver, Access Agreement and
Consent to be executed by all parties to such Lease.

          (b) Upon the request of the Required Lenders, use commercially reasonable
efforts to (i) obtain a Landlord’s Lien Waiver, Access Agreement and Consent in
respect of any Lease under which a Loan Party is a lessee and/or (ii) provide a
leasehold Mortgage in respect of any Lease under which a Loan Party is a
lessee. In the event Borrowers shall provide a leasehold Mortgage as
contemplated by clause (ii) of the immediately proceeding sentence, the Loan
Party subject to such Lease shall use commercially reasonable efforts to
deliver to the Collateral Agent, within 60 days after Collateral Agent’s
request therefor, a Mortgage on such Lease as additional security for the
Secured Obligations. Each such Mortgage shall constitute a valid and
enforceable perfected Mortgage Lien and security interest subject only to
Permitted Liens or other Liens acceptable to the Collateral Agent. The
Mortgages or instruments related thereto shall be duly recorded or filed in
such manner and in such places as are required by law to establish, perfect,
preserve and protect the Liens in favor of the Collateral Agent required to be
granted pursuant to the Mortgages and all taxes, fees and other charges payable
in connection therewith

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shall be paid in full. Each Loan Party subject to any Lease as to which a
leasehold Mortgage shall be granted pursuant to this Section 5.16(b)
shall otherwise take such actions within their reasonable control and execute
and/or deliver to the Collateral Agent such documents as the Collateral Agent
shall require to confirm the validity, perfection and priority of the Lien of
any existing Mortgage or new Mortgage against such Lease and the Real Property
demised thereunder (including a Title Policy, a Survey and local counsel
opinion (in form and substance reasonably satisfactory to the Collateral
Agent)).

          SECTION
5.17 Post-Closing Matters.(a) Within 30 days following the
Closing Date Borrowers shall, at their sole cost and expense, perform tax and
judgment lien searches in each jurisdiction listed in Schedule 5.17 and
to the extent any Liens are discovered in any such jurisdiction as a result of
such searches which are not Permitted Liens, Borrower shall cause such Liens to
be terminated promptly.

          (b)
Within 60 days after the Closing Date, the Borrowers hereby agree to
use commercially reasonable efforts to make (or cause to be made) a
fixture filing in respect of each tower listed on Schedule 5.17(b) in
the county in which such tower is located pursuant to documentation
reasonably satisfactory to the Collateral Agent.

ARTICLE VI

NEGATIVE COVENANTS

          Each Loan Party warrants, covenants and agrees with each Lender that, so
long as this Agreement shall remain in effect and until the Commitments have
been terminated and the principal of and interest on each Loan, all fees and
all other expenses or amounts payable under any Loan Document have been paid in
full, unless the Required Lenders shall otherwise consent in writing, no Loan
Party will, nor will they cause or permit any Subsidiaries to:

          SECTION 6.01 Indebtedness. Incur, create, assume or permit to
exist, directly or indirectly, any Indebtedness, except

     (a) Indebtedness incurred under this Agreement and the other Loan
Documents;

     (b) (i) Indebtedness outstanding on the Closing Date and listed on
Schedule 6.01(b) and (ii) refinancings, extensions, replacements
or renewals thereof; provided that (A) any such refinancing, extension,
replacement or renewal of Indebtedness is in an aggregate principal
amount not greater than the aggregate principal amount of the
Indebtedness being renewed or refinanced, plus the amount of accrued and
unpaid interest, any premiums required to be paid thereon and reasonable
fees and expenses associated therewith, (B) such refinancing Indebtedness
has a later or equal final maturity and longer or equal weighted average
life than the Indebtedness being renewed, extended, replaced or
refinanced and (C) the covenants, events of default, subordination and
other provisions thereof (including any guarantees thereof) shall be, in
the aggregate, not materially less favorable to the Lenders than those
contained in the Indebtedness being renewed, extended, replaced or
refinanced;

     (c) Indebtedness under Hedging Obligations with respect to interest
rates, foreign currency exchange rates or commodity prices, in each case
not entered into for speculative purposes; provided that if such Hedging
Obligations relate to interest rates, (i) such Hedging Obligations relate
to payment obligations on Indebtedness otherwise permitted to be incurred
by the Loan Documents and (ii) the notional principal amount of such
Hedging Obligations at the time incurred does not exceed the principal
amount of the Indebtedness to which such Hedging Obligations relate;

     (d) Indebtedness permitted by Section 6.04(e);

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     (e) Indebtedness in respect of Purchase Money Obligations and
Capital Lease Obligations, and refinancings or renewals thereof, in an
aggregate amount not to exceed $1.0 million at any time outstanding;

     (f) Indebtedness in respect of bid, performance or surety bonds,
workers’ compensation claims, self-insurance obligations and bankers
acceptances issued for the account of any Company in the ordinary course
of business, including guarantees or obligations of any Company with
respect to letters of credit supporting such bid, performance or surety
bonds, workers’ compensation claims, self-insurance obligations and
bankers acceptances (in each case other than for an obligation for money
borrowed), in an aggregate amount not to exceed $1.5 million at any time
outstanding;

     (g) Contingent Obligations of any Loan Party in respect of
Indebtedness otherwise permitted under this Section 6.01;

     (h) Indebtedness arising from the honoring by a bank or other
financial institution of a check, draft or similar instrument
inadvertently (except in the case of daylight overdrafts) drawn against
insufficient funds in the ordinary course of business; provided, however,
that such Indebtedness is extinguished within five Business Days of
incurrence;

     (i) Indebtedness arising in connection with endorsement of
instruments for deposit in the ordinary course of business;

     (j) Indebtedness (not for borrowed money) arising from judgments,
orders or other awards to the extent not constituting an Event of
Default; and

     (k) Indebtedness of Foreign Subsidiaries in an aggregate principal
amount not to exceed $1.0 million at any time outstanding;

     (l) Indebtedness of any Person that becomes a Loan Party after the
Closing Date in an aggregate principal amount not to exceed $2.0 million
at any time outstanding, so long as such Indebtedness exists at the time
such Person becomes a Loan Party and is not created in contemplation of
or in connection with such Person becoming a Loan Party;

     (m) indemnification, adjustment of purchase price, earn-out or
similar obligations, in each case, incurred or assumed in connection with
the Mergers, any Permitted Acquisition or any Asset Sale, other than
guarantees of Indebtedness incurred by any Person acquiring all or any
portion of such business, assets or Equity Interests in such Asset Sale
for the purpose of financing or in contemplation of the Mergers, such
Permitted Acquisition or such Asset Sale; provided that (i) any amount of
such obligations included on the face of the consolidated balance sheet
of Holdings and its Subsidiaries shall not be permitted under this clause
(m) and (ii) in the case of an Asset Sale, the maximum aggregate
liability in respect of all such obligations outstanding under this
clause (m) shall at no time exceed the gross proceeds actually received
by Holdings or any of its Subsidiaries in connection with such Asset
Sale; and

     (n) unsecured Indebtedness of any Company in an aggregate amount not
to exceed $2.0 million at any time outstanding.

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          SECTION 6.02 Liens. Create, incur, assume or permit to exist,
directly or indirectly, any Lien on any property now owned or hereafter
acquired by it or on any income or revenues or rights in respect of any
thereof, except the following (collectively, the “Permitted Liens”):

     (a) inchoate Liens for taxes, assessments or governmental charges or
levies not yet due and payable or delinquent and Liens for taxes,
assessments or governmental charges or levies, which (i) are being
contested in good faith by appropriate proceedings for which adequate
reserves have been established in accordance with GAAP and (ii) in the
case of any such charge or claim which has or may become a Lien against
any of the Collateral, such Lien and the contest thereof shall satisfy
the Contested Collateral Lien Conditions;

     (b) Liens in respect of property of any Company imposed by
Requirements of Law, which were incurred in the ordinary course of
business and do not secure Indebtedness for borrowed money, such as
carriers’, warehousemen’s, materialmen’s, landlords’, workmen’s,
suppliers’, repairmen’s and mechanics’ Liens and other similar Liens
arising in the ordinary course of business, and (i) which do not in the
aggregate materially detract from the value of the property of the
Companies, taken as a whole, and do not materially impair the use thereof
in the operation of the business of the Companies, taken as a whole, (ii)
which, if they secure obligations that are then due and unpaid, are being
contested in good faith by appropriate proceedings for which adequate
reserves have been established in accordance with GAAP and (iii) in the
case of any such Lien which has or may become a Lien against any of the
Collateral, such Lien and the contest thereof shall satisfy the Contested
Collateral Lien Conditions;

     (c) any Lien in existence on the Closing Date and set forth on
Schedule 6.02(c) and any Lien granted as a replacement or
substitute therefor; provided that any such replacement or substitute
Lien (i) except as permitted by Section 6.01(b)(ii)(A), does not
secure an aggregate amount of Indebtedness, if any, greater than that
secured on the Closing Date and (ii) does not encumber any property other
than the property subject thereto on the Closing Date (any such Lien, an
“Existing Lien”);

     (d) easements, rights-of-way, restrictions (including zoning
restrictions), covenants, licenses, encroachments, protrusions and other
similar charges or encumbrances, and minor title deficiencies on or with
respect to any Real Property, in each case whether now or hereafter in
existence, not (i) securing Indebtedness, (ii) individually or in the
aggregate materially impairing the value of such Real Property or (iii)
individually or in the aggregate materially interfering with the ordinary
conduct of the business of the Companies at such Real Property;

     (e) Liens arising out of a judgment, attachment or award not
resulting in an Event of Default and in respect of which such Company
shall in good faith be prosecuting an appeal or proceedings for review in
respect of which there shall be secured a subsisting stay of execution
pending such appeal or proceedings and, in the case of any such Lien
which has or may become a Lien against any of the Collateral, such Lien
and the contest thereof shall satisfy the Contested Collateral Lien
Conditions or the time to appeal such judgment, attachment or award shall
not have expired;

     (f) Liens (other than any Lien imposed by ERISA) (x) imposed by
Requirements of Law or deposits made in connection therewith in the
ordinary course of business in connection with workers’ compensation,
unemployment insurance and other types of social security legislation,
(y) incurred in the ordinary course of business to secure the performance
of tenders,

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statutory obligations, surety, stay, customs and appeal bonds, statutory
bonds, bids, leases, government contracts, trade contracts, performance
and return of money bonds and other similar obligations (exclusive of
obligations for the payment of borrowed money) or (z) arising by virtue
of deposits made in the ordinary course of business to secure liability
for premiums to insurance carriers; provided that (i) with respect to
clauses (x), (y) and (z) of this paragraph (f), such Liens are for
amounts not yet due and payable or delinquent or, to the extent such
amounts are so due and payable, such amounts are being contested in good
faith by appropriate proceedings for which adequate reserves have been
established in accordance with GAAP, (ii) to the extent such Liens are
not imposed by Requirements of Law, such Liens shall in no event encumber
any property other than cash and Cash Equivalents, (iii) in the case of
any such Lien against any of the Collateral, such Lien and the contest
thereof shall satisfy the Contested Collateral Lien Conditions and (iv)
the aggregate amount of deposits at any time pursuant to clause (y) and
clause (z) of this paragraph (f) shall not exceed $250,000 in the
aggregate;

     (g) Leases of the properties of any Company, in each case entered
into in the ordinary course of such Company’s business so long as such
Leases do not, individually or in the aggregate, (i) interfere in any
material respect with the ordinary conduct of the business of any Company
or (ii) materially impair the use (for its intended purposes) or the
value of the property subject thereto;

     (h) Liens arising out of conditional sale, title retention,
consignment or similar arrangements for the sale of goods entered into by
any Company in the ordinary course of business in accordance with the
past practices of such Company;

     (i) Liens securing Indebtedness incurred pursuant to Section
6.01(e); provided that any such Liens attach only to the property
being financed pursuant to such Indebtedness and do not encumber any
other property of any Company;

     (j) bankers’ Liens, rights of setoff and other similar Liens
existing solely with respect to cash and Cash Equivalents on deposit in
one or more accounts maintained by any Company, in each case granted in
the ordinary course of business in favor of the bank or banks with which
such accounts are maintained, securing amounts owing to such bank with
respect to cash management and operating account arrangements, including
those involving pooled accounts and netting arrangements; provided that,
unless such Liens are non-consensual and arise by operation of law, in no
case shall any such Liens secure (either directly or indirectly) the
repayment of any Indebtedness;

     (k) Liens on property of a person existing at the time such person
is acquired or merged with or into or consolidated with any Company to
the extent permitted hereunder (and not created in anticipation or
contemplation thereof); provided that such Liens do not extend to
property not subject to such Liens at the time of acquisition (other than
improvements thereon) and are no more favorable to the lienholders than
such existing Lien;

     (l) Liens granted pursuant to the Security Documents to secure the
Secured Obligations;

     (m) licenses of Intellectual Property granted by any Company in the
ordinary course of business and not interfering in any material respect
with the ordinary conduct of business of the Companies;

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     (n) the filing of UCC financing statements solely as a precautionary
measure in connection with operating leases or consignment of goods;

     (o) Liens in favor of customs and revenue authorities arising as a
matter of law to secure payment of customs duties in connection with the
importation of goods; and

     (p) Liens incurred in the ordinary course of business of any Company
with respect to obligations that do not in the aggregate exceed $1.0
million at any time outstanding;

provided, however, that no consensual Liens shall be permitted to exist,
directly or indirectly, on any Securities Collateral, other than Liens granted
pursuant to the Security Documents.

          SECTION 6.03 Sale and Leaseback Transactions. Enter into any
arrangement, directly or indirectly, with any person whereby it shall sell or
transfer any property, real or personal, used or useful in its business,
whether now owned or hereafter acquired, and thereafter rent or lease such
property or other property which it intends to use for substantially the same
purpose or purposes as the property being sold or transferred (a “Sale and
Leaseback Transaction”) unless (i) the sale of such property is permitted by
Section 6.06 and (ii) any Liens arising in connection with its use of
such property are permitted by Section 6.02.

          SECTION 6.04 Investment, Loan and Advances. Directly or
indirectly, lend money or credit (by way of guarantee or otherwise) or make
advances to any person, or purchase or acquire any stock, bonds, notes,
debentures or other obligations or securities of, or any other interest in, or
make any capital contribution to, any other person, or purchase or own a
futures contract or otherwise become liable for the purchase or sale of
currency or other commodities at a future date in the nature of a futures
contract (all of the foregoing, collectively, “Investments”), except that the
following shall be permitted:

     (a) the Companies may consummate the Transactions in accordance with
the provisions of the Transaction Documents;

     (b) Investments outstanding on the Closing Date and identified on
Schedule 6.04(b);

     (c) the Companies may (i) acquire and hold accounts receivables
owing to any of them if created or acquired in the ordinary course of
business and payable or dischargeable in accordance with customary terms,
(ii) invest in, acquire and hold cash and Cash Equivalents, (iii) endorse
negotiable instruments held for collection in the ordinary course of
business or (iv) make lease, utility and other similar deposits in the
ordinary course of business;

     (d) Hedging Obligations incurred pursuant to Section 6.01(c);

     (e)
  Investments (i) by a Borrower in any Subsidiary Guarantor (or any Person
  that shall become Subsidiary Guarantor upon such Investment), (ii) by any
  Company in a Borrower or any Subsidiary Guarantor (or any Person that shall
  become Subsidiary Guarantor upon such Investment), (iii) by a Subsidiary
  Guarantor in another Subsidiary Guarantor (or any Person that shall become Subsidiary
  Guarantor upon such Investment or a Borrower, (iv) by a Company that is
  not a Loan Party in any other Company that is not a Loan Party, (v)  Investments
  by any Loan Party in GTES and Global Technical Engineering Solutions Inc., as
  such Investments are in effect as of the Closing Date, (vi) by any Loan Party
  in GTES after the closing date in an aggregate amount not to exceed $1.5 million
  and (vii) in any Loan Party the proceeds of which are used by such Loan
  Party promptly upon receipt thereof for the purposes described in clause (c),
  (d), (e) or (f) of Section 6.08 (which Investments
  are in lieu of a dividend or distribution as permitted by such clauses); provided
  that any Investment in the form of a loan or advance

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shall be evidenced by the Intercompany
Note and, in the case of a loan or advance by a Loan Party, pledged by
such Loan Party as Collateral pursuant to the Security Documents;

     (f) Investments in securities of trade creditors or customers in the
ordinary course of business received upon foreclosure or pursuant to any
plan of reorganization or liquidation or similar arrangement upon the
bankruptcy or insolvency of such trade creditors or customers;

     (g) loans to non-executive officers and employees in the ordinary
course of business of Holdings and its Subsidiaries in an aggregate
principal amount not to exceed $100,000 at any time outstanding;

     (h) Investments made by Holdings or any Subsidiary as a result of
consideration received in connection with an Asset Sale made in
compliance with Section 6.06; and

     (i) other Investments in an aggregate amount not to exceed $2.0
million at any time outstanding.

          SECTION 6.05 Mergers and Consolidations. Wind up, liquidate or
dissolve its affairs or enter into any transaction of merger or consolidation
(or agree to do any of the foregoing at any future time), except that the
following shall be permitted:

     (a) the Transactions as contemplated by the Transaction Documents;

     (b) Asset Sales in compliance with Section 6.06;

     (c) any acquisition made in compliance with Section 6.07, so
long as, if a Borrower is one of the constituent persons to such
acquisition, such Borrower is the surviving person;

     (d) any Company (other than Holdings) may merge or consolidate with
or into a Borrower or any Subsidiary Guarantor (as long as a Borrower is
the surviving person in the case of any merger or consolidation involving
a Borrower and a Subsidiary Guarantor is the surviving person and remains
a Wholly Owned Subsidiary of Holdings in any other case); provided that
the Lien on and security interest in such property granted or to be
granted in favor of the Collateral Agent under the Security Documents
shall be maintained or created in accordance with the provisions of
Section 5.11 or Section 5.12, as applicable;

     (e) any Subsidiary (other than a Borrower) may dissolve, liquidate
or wind up its affairs at any time; provided that such dissolution,
liquidation or winding up, as applicable, could not reasonably be
expected to have a Material Adverse Effect; and

     (f) a Company that is not a Loan Party may merge with and into or
consolidate with another Company that is not a Loan Party.

          To the extent the Required Lenders waive the provisions of this Section
6.05 with respect to the sale of any Collateral, or any Collateral is sold
as permitted by this Section 6.05, such Collateral (unless sold to a
Company) shall be sold free and clear of the Liens
created by the Security Documents, and the Agents shall take all actions
they deem appropriate in order to effect the foregoing.

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          SECTION 6.06 Asset Sales. Effect any Asset Sale, or agree to
effect any Asset Sale, except that the following shall be permitted:

     (a) Asset Sales that are not sales, dispositions or transfers of a
Borrower or Holdings; provided that the aggregate consideration received
in respect of all Asset Sales pursuant to this clause (a) shall not
exceed $2.0 million in any four consecutive fiscal quarters of Holdings,
but, in any event, shall not exceed $500,000 with respect to any single
Asset Sale;

     (b) leases and subleases of real or personal property (including
licenses and sublicenses of intellectual property) in the ordinary course
of business and in accordance with the applicable Security Documents;

     (c) the Transactions as contemplated by the Transaction Documents;

     (d) mergers and consolidations in compliance with Section
6.05;

     (e) Investments in compliance with Section 6.04;

     (f) dispositions of used, unused, worn out, obsolete or surplus
property by any Company in the ordinary course of business;

     (g) dispositions of one or more regional or nationwide one-way or
two-way narrow band FCC Licenses, so long as Borrowers shall have
reasonably determined that such FCC License is no longer necessary for
the conduct of the Borrower Businesses; and

     (h) the sale and leaseback of the property located at 18311 W. Ten
Mile Road, Southfield, Michigan; and

     (i)
the sale of Equity Interests of GTES to the shareholders of Global
Technological Engineering Solutions Inc. pursuant to the shareholders
agreement of Global Technological Engineering Solutions Inc. as in
effect on the Closing Date.

          To the extent the Required Lenders waive the provisions of this Section
6.06 with respect to the sale of any Collateral, or any Collateral is sold
as permitted by this Section 6.06, such Collateral (unless sold to a
Company) shall be sold free and clear of the Liens created by the Security
Documents, and the Agents shall take all actions they deem appropriate in order
to effect the foregoing.

          SECTION 6.07 Acquisitions. Purchase or otherwise acquire (in one
or a series of related transactions) any part of the property (whether tangible
or intangible) of any person other than any Company (or agree to do any of the
foregoing at any future time), except that the following shall be permitted:

     (a) Capital Expenditures by Borrowers and their Subsidiaries shall
be permitted to the extent permitted by Section 6.10(c);

     (b) purchases and other acquisitions of inventory, materials,
equipment and intangible property in the ordinary course of business;

     (c) Investments in compliance with Section 6.04;

     (d) leases of real or personal property in the ordinary course of
business and in accordance with the applicable Security Documents;

     (e) the Transactions as contemplated by the Transaction Documents;

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     (f) Permitted Acquisitions; and

     (g) mergers and consolidations in compliance with Section
6.05;

provided that the Lien on and security interest in such property granted or to
be granted in favor of the Collateral Agent under the Security Documents shall
be maintained or created in accordance with the provisions of Section
5.11 or Section 5.12, as applicable.

          SECTION 6.08 Dividends. Authorize, declare or pay, directly or
indirectly, any Dividends with respect to any Company, except that the
following shall be permitted:

     (a) Dividends by any Company to Borrowers or any Guarantor that is a
Wholly Owned Subsidiary of a Borrower;

     (b) dividends and distributions necessary to effectuate the
Transactions;

     (c) (i) dividends or distributions to any Loan Party that are used
by such Loan Party promptly upon receipt thereof to pay taxes, insurance
expenses, legal and accounting expenses and other expenses of such Loan
Party in the nature of overhead that are incurred and payable in the
ordinary course of business of such Loan Party, including, in the case of
Holdings, reasonable compensation and expense reimbursement for members
of the Board of Directors of Holdings, Nasdaq listing fees, Securities
and Exchange Commission filing fees and transfer agent fees, or (ii)
payments on behalf of any Loan Party for any of the foregoing;

     (d) dividends or distributions to Metrocall Public that are used by
Metrocall Public promptly upon receipt thereof to (i) make payments to
satisfy appraisal demands in respect of shares of Metrocall Public
arising out of the Mergers, which demands are perfected under Section 262
of the Delaware General Corporation Law and not withdrawn and (ii) pay
reasonable out-of-pocket legal costs and expenses relating to such
demands;

     (e) dividends or distributions to any Loan Party that are used by
such Loan Party promptly upon receipt thereof to make payments in respect
of any settlements or judgments arising out of any Shareholder
Proceedings described in clause (a) or (b) of the definition thereof; and

     (f)
dividends or distributions to Arch Public that are used by Arch
Public promptly upon receipt thereof to pay tax, administrative and
priority claims arising under or pursuant to the plan of
reorganization for Arch Public and its Subsidiaries (as such plan
became effective on May 29, 2002);

provided that in the case of clause (c) (other than to the extent relating to
Permitted Tax Distributions), (d), (e) or (f), no Event of Default exists at
the time of such dividend or distribution.

          SECTION 6.09 Transactions with Affiliates. Enter into, directly or
indirectly, any transaction or series of related transactions, whether or not
in the ordinary course of business, with any Affiliate of any Company (other
than between or among Loan Parties), other than on terms and conditions at
least as favorable to such Company as would reasonably be obtained by such
Company at
that time in a comparable arm’s-length transaction with a person other
than an Affiliate, except that the following shall be permitted:

     (a) Dividends permitted by Section 6.08;

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     (b) Investments permitted by Section 6.04(e);

     (c) reasonable and customary director, officer and employee
compensation (including bonuses and expense reimbursement and severance
and retirement plans) and other benefits (including retirement, health,
stock option and other benefit plans) fees to non-employee directors and
indemnification arrangements;

     (d) transactions with customers, clients, suppliers, joint venture
partners or purchasers or sellers of goods and services, in each case in
the ordinary course of business and otherwise not prohibited by the Loan
Documents;

     (e) the existence of, and the performance by any Loan Party of its
obligations under the terms of, any limited liability company, limited
partnership or other Organizational Document or securityholders agreement
to which it is a party on the Closing Date and which has been disclosed
to the Lenders as in effect on the Closing Date, and similar agreements
that it may enter into thereafter;

     (f) sales of Qualified Capital Stock of Holdings to Affiliates of
Holdings not otherwise prohibited by the Loan Documents and the granting
of registration and other customary rights in connection therewith;

     (g) any transaction with an Affiliate where the only consideration
paid by any Loan Party is Qualified Capital Stock of Holdings;

     (h) the Transactions as contemplated by the Transaction Documents;
and

     (i) transactions otherwise permitted hereunder between or among any
Loan Party, on the one hand, and GTES, LLC, Nationwide 929.8875 LLC
and/or Pagenet Canada, Inc., on the other hand, so long as no holder of
Equity Interests (other than any Company) in either GTES, LLC, Nationwide
929.8875 LLC and Pagenet Canada, Inc., as the case may be, shall be an
Affiliate of any Company.

          SECTION 6.10 Financial Covenants.

     (a) Maximum Total Leverage Ratio. Permit the Total Leverage Ratio,
as of the end of any Test Period ending during any period set forth in the
table below, to exceed the ratio set forth opposite such period in the table
below:

	 	 	 
	Test Period
	 	Leverage Ratio

	Closing Date — December 31, 2004

	 	0.55 to 1.0
	January 1, 2005 — March 31, 2005

	 	0.40 to 1.0
	April 1, 2005 — June 30, 2005

	 	0.25 to 1.0
	July 1, 2005 and thereafter

	 	0.10 to 1.0

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          (b) Minimum Interest Coverage Ratio. Permit the Consolidated
Interest Coverage Ratio, for any Test Period ending during any period set forth
in the table below, to be less than the ratio set forth opposite such period in
the table below:

	 	 	 
	 	 	Interest
	Test Period
	 	Coverage Ratio

	Closing Date - December 31, 2004

	 	35.0 to 1.0
	January 1, 2005 - March 31, 2005

	 	40.0 to 1.0
	April 1, 2005 - June 30, 2005

	 	45.0 to 1.0
	July 1, 2005 - September 30, 2005

	 	50.0 to 1.0
	October 1, 2005 and thereafter

	 	60.0 to 1.0

          (c) Limitation on Capital Expenditures. Permit the aggregate
amount of Capital Expenditures made in any period set forth below, to exceed
the amount set forth opposite such period below:

	 	 	 	 	 
	Period
	 	Amount (in millions)

	January 1, 2004 - December 31, 2004
	 	$	43.0	 
	January 1, 2005 - December 31, 2005
	 	$	35.0	 
	January 1, 2006 - Maturity Date
	 	$	30.0	 

; provided, however, that (x) if the aggregate amount of Capital Expenditures
made in any fiscal year shall be less than the maximum amount of Capital
Expenditures permitted under this Section 6.10(c) for such fiscal year
(before giving effect to any carryover), then an amount of such shortfall not
exceeding 50% of such maximum amount may be added to the amount of Capital
Expenditures permitted under this Section 6.10(c) for the immediately
succeeding (but not any other) fiscal year and (y) in determining whether any
amount is available for carryover, the amount expended in any fiscal year shall
first be deemed to be from the amount allocated to such fiscal year (before
giving effect to any carryover).

          SECTION 6.11 Prepayments of Other Indebtedness; Modifications of
Organizational Documents and Other Documents, etc. Directly or indirectly:

     (a) make any voluntary or optional payment or prepayment on or
redemption or acquisition for value of, or any prepayment or redemption
as a result of any asset sale, change of control or similar event of, any
Indebtedness outstanding under any Subordinated Indebtedness, except as
otherwise permitted by this Agreement;

     (b) amend or modify, or permit the amendment or modification of, any
provision of any Transaction Document in any manner that is adverse in
any material respect to the interests of the Lenders; or

     (c) terminate, amend, modify (including electing to treat any
Pledged Interests (as defined in the Security Agreement) as a “security”
under Section 8-103 of the UCC) or change

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any of its Organizational
Documents (including by the filing or modification of any certificate of
designation) or any agreement to which it is a party with respect to its
Equity Interests (including any stockholders’ agreement), or enter into
any new agreement with respect to its Equity Interests, other than any
such amendments, modifications or changes or such new agreements which
are not adverse in any material respect to the interests of the Lenders;
provided that Holdings may issue such Equity Interests, so long as such
issuance is not prohibited by Section 6.13 or any other provision
of this Agreement, and may amend its Organizational Documents to
authorize any such Equity Interests.

          SECTION 6.12 Limitation on Certain Restrictions on Subsidiaries.
Directly or indirectly, create or otherwise cause or suffer to exist or become
effective any encumbrance or restriction on the ability of any Subsidiary to
(a) pay dividends or make any other distributions on its capital stock or any
other interest or participation in its profits owned by Holdings or any
Subsidiary, or pay any Indebtedness owed to Holdings or a Subsidiary, (b) make
loans or advances to Holdings or any Subsidiary or (c) transfer any of its
properties to Holdings or any Subsidiary, except for such encumbrances or
restrictions existing under or by reason of (i) applicable Requirements of Law;
(ii) this Agreement and the other Loan Documents; (iii) customary provisions
restricting subletting or assignment of any lease governing a leasehold
interest of a Subsidiary; (iv) customary provisions restricting assignment of
any agreement entered into by a Subsidiary in the ordinary course of business;
(v) any holder of a Lien permitted by Section 6.02 restricting the
transfer of the property subject thereto; (vi) customary restrictions and
conditions contained in any agreement relating to the sale or other disposition
of any property permitted under Section 6.06 pending the consummation of
such sale or other disposition; (vii) any agreement in effect at the time such
Subsidiary becomes a Subsidiary of Holdings, so long as such agreement was not
entered into in connection with or in contemplation of such person becoming a
Subsidiary of Holdings; (viii) without affecting the Loan Parties’ obligations
under Section 5.11, customary provisions in partnership agreements,
limited liability company organizational governance documents, asset sale and
stock sale agreements and other similar agreements entered into in the ordinary
course of business that restrict the transfer of ownership interests in such
partnership, limited liability company or similar person; (ix) restrictions on
cash or other deposits or net worth imposed by suppliers or landlords under
contracts entered into in the ordinary course of business; (x) any agreements
evidencing Indebtedness permitted by Section 6.01(e) that impose
restrictions on the property so acquired, which encumbrance or restriction is
not applicable to any person, or the properties or assets of any person, other
than the property so acquired; (xi) any instrument governing Indebtedness
assumed in connection with any Permitted Acquisition, which encumbrance or
restriction is not applicable to any person, or the properties or assets of any
person, other than the person or the properties or assets of the person so
acquired; (xii) in the case of any joint venture which is not a Loan Party in
respect of any matters referred to in clauses (b) and (c) above, restrictions
in such person’s Organizational Documents or pursuant to any joint venture
agreement or stockholders agreements solely to the extent of the Equity
Interests of or property held in the subject joint venture or other entity; or
(xiii) any encumbrances or restrictions imposed by any amendments or
refinancings that are otherwise permitted by the Loan Documents of the
contracts, instruments or obligations referred to in clause (iii) or (viii)
above; provided that such amendments or refinancings are no more materially
restrictive with respect to such encumbrances and restrictions than those prior
to such amendment or refinancing.

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          SECTION 6.13 Limitation on Issuance of Capital Stock.

          (a) With respect to Holdings, issue any Equity Interest that is not
Qualified Capital Stock.

          (b) With respect to the Subsidiaries, issue any Equity Interest (including
by way of sales of treasury stock) or any options or warrants to purchase, or
securities convertible into, any Equity Interest, except (i) for stock splits,
stock dividends and additional issuances of Equity Interests which do not
decrease the percentage ownership of a Borrower or any Subsidiary in any class
of the Equity Interest of such Subsidiary; (ii) Subsidiaries of a Borrower
formed after the Closing Date in accordance with Section 6.14 may issue
Equity Interests to a Borrower or the Subsidiary of a Borrower which is to own
such Equity Interests; and (iii) a Borrower or a Guarantor that is a Wholly
Owned Subsidiary of Holdings may issue its common stock that is Qualified
Capital Stock to any Holding Company. All Equity Interests of Subsidiaries
issued in accordance with this Section 6.13 shall, to the extent
required by Sections 5.11 and 5.12 or any Security Agreement, be
delivered to the Collateral Agent for pledge pursuant to the applicable
Security Agreement.

          SECTION 6.14 Limitation on Creation of Subsidiaries. Establish,
create or acquire any additional Subsidiaries without the prior written consent
of the Required Lenders; provided that, without such consent, a Borrower may
(i) establish or create one or more Wholly Owned Subsidiaries of such Borrower,
(ii) establish, create or acquire one or more Subsidiaries in connection with
an Investment made pursuant to Section 6.04(e) or (iii) acquire one or
more Subsidiaries in connection with a Permitted Acquisition, so long as, in
each case, Section 5.11(b) shall be complied with, provided that
Holdings may form a Wholly Owned Subsidiary in connection with making a
Permitted Acquisition so long as all the Equity Interests of such Wholly Owned
Subsidiary are promptly contributed to a Borrower or a Subsidiary of a Borrower
promptly after the consummation of such Permitted Acquisition.

          SECTION 6.15 Limitation on Business Activities.

          (a) With respect to Holdings, own any assets, incur any liabilities or
engage in the conduct of any business or activities, other than (i) the
ownership of the Equity Interests of Wholly Owned Subsidiaries, (ii)
obligations under the Loan Documents, (iii) the conduct of any business or
activities as are incidental to being a publicly traded company including,
without limitation, complying with corporate governance requirements, complying
with Securities Act and Exchange Act requirements, (iv) the issuance of
Qualified Capital Stock of Holdings, (v) the payment to third parties of
amounts that are dividended or distributed to Holdings in accordance with
Section 6.08, and (vi) so long as all assets acquired in such Permitted
Acquisition are contributed upon or immediately after the consummation of such
Permitted Acquisition to a Borrower or a Subsidiary Guarantor that is not a
Holding Company, the entering into and performing obligations under a merger or
similar agreement with respect to a Permitted Acquisition and (vii) the conduct
of any business or activities as are incidental to the foregoing clauses (i)
through (vi).

          (b) With respect to any Holding Company other than Holdings, own any
assets, incur any liabilities or engage in the conduct of any business or
activities, other than the (i) ownership of the Equity Interests of Wholly
Owned Subsidiaries, (ii) obligations under the Loan Documents, (iii) the
payment to third parties of amounts that are dividended or distributed to such
Holding Company in accordance with Section 6.08, (vi) so long as all
assets acquired in such Permitted Acquisition are contributed upon or
immediately after the consummation of such Permitted Acquisition to a Borrower
or
a Subsidiary Guarantor that is not a Holding Company, the entering into
and performing obligations under a merger or

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similar agreement with respect to
a Permitted Acquisition and (v) the conduct of any business or activities as
are incidental to the foregoing clauses (i) through (iv).

          (c) With respect to any Borrower or Subsidiary of a Borrower other than a
License Subsidiary, engage in any business other than the businesses in which
such Borrower or Subsidiary of a Borrower is engaged on the Closing Date as
described in the Confidential Information Memorandum (or, in the good faith
judgment of the Board of Directors of Holdings, which are substantially related
thereto or are reasonable extensions thereof) (such businesses, the “Borrower
Businesses”).

          (d) With respect to any License Subsidiary, own any assets, incur any
liabilities or engage in the conduct of any business or activities, other than
the (i) ownership of FCC Licenses and Intellectual Property, (ii) incurrence of
liabilities arising out of the ownership of FCC Licenses and Intellectual
Property, (iii) obligations under the Loan Documents and (iv) conduct of any
business or activities as are incidental to the ownership of FCC Licenses and
Intellectual Property and the foregoing clauses (i), (ii) and (iii). No
Company shall hold an FCC License other than one of the License Subsidiaries;
provided that, in the case of a Permitted Acquisition, the Loan Parties and
their Subsidiaries shall have 180 days following such Permitted Acquisition to
transfer all FCC Licenses acquired in connection with such Permitted
Acquisition to a License Subsidiary.

          SECTION 6.16 Limitation on Accounting Changes. Make or permit any
change in accounting policies or reporting practices, without the consent of
the Required Lenders, which consent shall not be unreasonably withheld, except
changes that are required by GAAP.

          SECTION 6.17 Fiscal Year. Change its fiscal year-end to a date
other than December 31 without the prior written consent of the Administrative
Agent, which consent shall not be unreasonably withheld.

          SECTION 6.18 Lease Obligations. Create, incur, assume or suffer to
exist any obligations as lessee for the rental or hire of real or personal
property of any kind under leases or agreements to lease having an original
term of one year or more that would cause the aggregate direct and contingent
payment obligations of Holdings and its Subsidiaries in respect thereof, on a
consolidated basis, to exceed, during any period of 12 consecutive months
ending during any year set forth in the table below, the amount opposite such
year in such table:

	 	 	 	 	 
	Year
	 	Amount (in millions)

	2004
	 	$	170.0	 
	2005
	 	$	145.0	 
	2006
	 	$	130.0	 

          SECTION 6.19 No Further Negative Pledge. Enter into any agreement,
instrument, deed or lease which prohibits or limits the ability of any Loan
Party to create, incur, assume or suffer to exist any Lien upon any of their
respective properties or revenues, whether now owned or hereafter acquired, or
which requires the grant of any security for an obligation if security is
granted for another obligation, except the following: (1) this Agreement and
the other Loan Documents; (2) covenants in documents creating Liens permitted
by Section 6.02 prohibiting further Liens on the properties encumbered
thereby; (3) any other agreement that does not restrict in any manner (directly
or indirectly) Liens created pursuant to the Loan Documents on any Collateral
securing the Secured Obligations and does not require the direct or indirect
granting of any Lien securing any Indebtedness or other obligation by virtue of the granting of Liens on or pledge of property of any
Loan Party to secure the Secured Obligations; and

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(4) any prohibition or
limitation that (a) exists pursuant to applicable Requirements of Law, (b)
consists of customary restrictions and conditions contained in any agreement
relating to the sale of any property permitted under Section 6.06
pending the consummation of such sale, (c) restricts subletting or assignment
of any lease governing a leasehold interest of Holdings or a Subsidiary, (d)
exists in any agreement in effect at the time such Subsidiary becomes a
Subsidiary of Holdings, so long as such agreement was not entered into in
contemplation of such person becoming a Subsidiary or (e) is imposed by any
amendments or refinancings that are otherwise permitted by the Loan Documents
of the contracts, instruments or obligations referred to in clause (4)(e);
provided that such amendments and refinancings are no more materially
restrictive with respect to such prohibitions and limitations than those prior
to such amendment or refinancing.

          SECTION 6.20 Anti-Terrorism Law; Anti-Money Laundering.

          (a) Directly or indirectly, (i) knowingly conduct any business or engage
in making or receiving any contribution of funds, goods or services to or for
the benefit of any person described in Section 3.22, (ii) knowingly deal
in, or otherwise engage in any transaction relating to, any property or
interests in property blocked pursuant to the Executive Order or any other
Anti-Terrorism Law, or (iii) knowingly engage in or conspire to engage in any
transaction that evades or avoids, or has the purpose of evading or avoiding,
or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism
Law (and the Loan Parties shall deliver to the Lenders any certification or
other evidence requested from time to time by any Lender in its reasonable
discretion, confirming the Loan Parties’ compliance with this Section
6.20).

          (b) Cause or permit any of the funds of such Loan Party that are used to
repay the Loans to be derived from any unlawful activity with the result that
the making of the Loans would be in violation of any Requirement of Law.

          SECTION 6.21 Embargoed Person. Cause or permit (a) any of the
funds or properties of the Loan Parties that are used to repay the Loans to
constitute property of, or be beneficially owned directly or indirectly by, any
person subject to sanctions or trade restrictions under United States law
(“Embargoed Person” or “Embargoed Persons”) that is identified on (1) the “List
of Specially Designated Nationals and Blocked Persons” maintained by OFAC
and/or on any other similar list maintained by OFAC pursuant to any authorizing
statute including, but not limited to, the International Emergency Economic
Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with the Enemy Act, 50
U.S.C. App. 1 et seq., and any executive order or Requirement of Law
promulgated thereunder, with the result that the investment in the Loan Parties
(whether directly or indirectly) is prohibited by a Requirement of Law, or the
Loans made by the Lenders would be in violation of a Requirement of Law, or (2)
the Executive Order, any related enabling legislation or any other similar
executive orders, or (b) any Embargoed Person to have any direct or indirect
interest, of any nature whatsoever in the Loan Parties, with the result that
the investment in the Loan Parties (whether directly or indirectly) is
prohibited by a Requirement of Law or the Loans are in violation of a
Requirement of Law.

          SECTION 6.22 Implementation of Integration Plan. Notwithstanding
anything to the contrary in Sections 6.01, 6.04, 6.06,
6.07, 6.08, 6.13, 6.14 and 6.15, in order to
implement the integration plan for the Companies, the Loan Parties may enter
into transactions or series of transactions solely among or between Loan
Parties effecting loans, investments, loans, asset transfers and dividends;
provided that any property of a Borrower or any Subsidiary of a Borrower that
is transferred, whether by loan, investment, sale or dividend, to any person that is not a Borrower or a Subsidiary of a Borrower
is ultimately transferred substantially concurrently to a Borrower or a
Subsidiary of a Borrower in the same

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form and on the same terms that such
property was originally transferred (or, in the case of a dividend from a
Borrower, in the form of a common equity contribution to a Borrower).

          SECTION 6.23 Deposit of Funds. Permit, allow or suffer any funds
to be deposited into any Non-Excluded Account other than an account as to which
a written instruction has been given to the institution at which such account
is maintained to transfer all funds in such account at the end of each Business
Day to an account over which the Collateral Agent has a Control Agreement;
provided that such instruction shall be by its terms irrevocable until the
Obligations shall have been paid in full.

ARTICLE VII

GUARANTEE

          SECTION 7.01 The Guarantee. The Guarantors hereby jointly and
severally guarantee, as a primary obligor and not as a surety to each Secured
Party and their respective successors and assigns, the prompt payment in full
when due (whether at stated maturity, by required prepayment, declaration,
demand, by acceleration or otherwise) of the principal of and interest
(including any interest, fees, costs or charges that would accrue but for the
provisions of the Title 11 of the United States Code after any bankruptcy or
insolvency petition under Title 11 of the United States Code) on the Loans made
by the Lenders to, and the Notes held by each Lender of, Borrowers, and all
other Secured Obligations from time to time owing to the Secured Parties by any
Loan Party under any Loan Document or any Hedging Agreement entered into with a
counterparty that is a Secured Party, in each case strictly in accordance with
the terms thereof (such obligations being herein collectively called the
“Guaranteed Obligations”). The Guarantors hereby jointly and severally agree
that if Borrowers or other Guarantor(s) shall fail to pay in full when due
(whether at stated maturity, by acceleration or otherwise) any of the
Guaranteed Obligations, the Guarantors will promptly pay the same in cash,
without any demand or notice whatsoever, and that in the case of any extension
of time of payment or renewal of any of the Guaranteed Obligations, the same
will be promptly paid in full when due (whether at extended maturity, by
acceleration or otherwise) in accordance with the terms of such extension or
renewal.

          SECTION 7.02 Obligations Unconditional. The obligations of the
Guarantors under Section 7.01 shall constitute a guaranty of payment and
to the fullest extent permitted by applicable Requirements of Law, are
absolute, irrevocable and unconditional, joint and several, irrespective of the
value, genuineness, validity, regularity or enforceability of the Guaranteed
Obligations of Borrowers under this Agreement, the Notes, if any, or any other
agreement or instrument referred to herein or therein, or any substitution,
release or exchange of any other guarantee of or security for any of the
Guaranteed Obligations, and, irrespective of any other circumstance whatsoever
that might otherwise constitute a legal or equitable discharge or defense of a
surety or Guarantor (except for payment in full). Without limiting the
generality of the foregoing, it is agreed that the occurrence of any one or
more of the following shall not alter or impair the liability of the Guarantors
hereunder which shall remain absolute, irrevocable and unconditional under any
and all circumstances as described above:

     (i) at any time or from time to time, without notice to the
Guarantors, the time for any performance of or compliance with any of the
Guaranteed Obligations shall be extended, or such performance or
compliance shall be waived;

     (ii) any of the acts mentioned in any of the provisions of this
Agreement or the Notes, if any, or any other agreement or instrument
referred to herein or therein shall be done or omitted;

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     (iii) the maturity of any of the Guaranteed Obligations shall be
accelerated, or any of the Guaranteed Obligations shall be amended in any
respect, or any right under the Loan Documents or any other agreement or
instrument referred to herein or therein shall be amended or waived in
any respect or any other guarantee of any of the Guaranteed Obligations
or any security therefor shall be released or exchanged in whole or in
part or otherwise dealt with;

     (iv) any Lien or security interest granted to, or in favor of, any
Lender or Agent as security for any of the Guaranteed Obligations shall
fail to be perfected; or

     (v) the release of any other Guarantor pursuant to Section
7.09.

          The Guarantors hereby expressly waive diligence, presentment, demand of
payment, protest and all notices whatsoever, and any requirement that any
Secured Party exhaust any right, power or remedy or proceed against Borrowers
under this Agreement or the Notes, if any, or any other agreement or instrument
referred to herein or therein, or against any other person under any other
guarantee of, or security for, any of the Guaranteed Obligations. The
Guarantors waive any and all notice of the creation, renewal, extension,
waiver, termination or accrual of any of the Guaranteed Obligations and notice
of or proof of reliance by any Secured Party upon this Guarantee or acceptance
of this Guarantee, and the Guaranteed Obligations, and any of them, shall
conclusively be deemed to have been created, contracted or incurred in reliance
upon this Guarantee, and all dealings between Borrowers, on the one hand, and
the Secured Parties, on the other hand, shall likewise be conclusively presumed
to have been had or consummated in reliance upon this Guarantee. This
Guarantee shall be construed as a continuing, absolute, irrevocable and
unconditional guarantee of payment without regard to any right of offset with
respect to the Guaranteed Obligations at any time or from time to time held by
Secured Parties, and the obligations and liabilities of the Guarantors
hereunder shall not be conditioned or contingent upon the pursuit by the
Secured Parties or any other person at any time of any right or remedy against
Borrowers or against any other person which may be or become liable in respect
of all or any part of the Guaranteed Obligations or against any collateral
security or guarantee therefor or right of offset with respect thereto. This
Guarantee shall remain in full force and effect and be binding in accordance
with and to the extent of its terms upon the Guarantors and the successors and
assigns thereof, and shall inure to the benefit of the Lenders, and their
respective successors and assigns, notwithstanding that from time to time
during the term of this Agreement there may be no Guaranteed Obligations
outstanding.

          SECTION 7.03 Reinstatement. The obligations of the Guarantors
under this Article VII shall be automatically reinstated if and to the
extent that for any reason any payment by or on behalf of Borrowers or other
Loan Party in respect of the Guaranteed Obligations is rescinded or must be
otherwise restored by any holder of any of the Guaranteed Obligations, whether
as a result of any proceedings in bankruptcy or reorganization or otherwise.

          SECTION 7.04 Subrogation; Subordination. Each Guarantor hereby
agrees that until the indefeasible payment and satisfaction in full in cash of
all Guaranteed Obligations and the expiration and termination of the
Commitments of the Lenders under this Agreement it shall waive any claim and
shall not exercise any right or remedy, direct or indirect, arising by reason
of any performance by it of its guarantee in Section 7.01, whether by
subrogation or otherwise, against Borrowers or any other Guarantor of any of
the Guaranteed Obligations or any security for any of the
Guaranteed Obligations. Any Indebtedness of any Loan Party permitted
pursuant to Section 6.01(d) shall be subordinated to such Loan Party’s
Secured Obligations in the manner set forth in the Intercompany Note evidencing
such Indebtedness.

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          SECTION 7.05 Remedies. The Guarantors jointly and severally agree
that, as between the Guarantors and the Lenders, the obligations of Borrowers
under this Agreement and the Notes, if any, may be declared to be forthwith due
and payable as provided in Section 8.01 (and shall be deemed to have
become automatically due and payable in the circumstances provided in
Section 8.01) for purposes of Section 7.01, notwithstanding any
stay, injunction or other prohibition preventing such declaration (or such
obligations from becoming automatically due and payable) as against Borrowers
and that, in the event of such declaration (or such obligations being deemed to
have become automatically due and payable), such obligations (whether or not
due and payable by Borrowers) shall forthwith become due and payable by the
Guarantors for purposes of Section 7.01.

          SECTION 7.06 Instrument for the Payment of Money. Each Guarantor
hereby acknowledges that the guarantee in this Article VII constitutes
an instrument for the payment of money, and consents and agrees that any Lender
or Agent, at its sole option, in the event of a dispute by such Guarantor in
the payment of any moneys due hereunder, shall have the right to bring a
motion-action under New York CPLR Section 3213.

          SECTION 7.07 Continuing Guarantee. The guarantee in this
Article VII is a continuing guarantee of payment, and shall apply to all
Guaranteed Obligations whenever arising.

          SECTION 7.08 General Limitation on Guarantee Obligations. In any
action or proceeding involving any state corporate limited partnership or
limited liability company law, or any applicable state, federal or foreign
bankruptcy, insolvency, reorganization or other law affecting the rights of
creditors generally, if the obligations of any Guarantor under Section
7.01 would otherwise be held or determined to be void, voidable, invalid or
unenforceable, or subordinated to the claims of any other creditors, on account
of the amount of its liability under Section 7.01, then, notwithstanding
any other provision to the contrary, the amount of such liability shall,
without any further action by such Guarantor, any Loan Party or any other
person, be automatically limited and reduced to the highest amount that is
valid and enforceable and not subordinated to the claims of other creditors as
determined in such action or proceeding.

          SECTION 7.09 Release of Guarantors. If, in compliance with the
terms and provisions of the Loan Documents, all or substantially all of the
Equity Interests or property of any Guarantor is sold or otherwise transferred
(a “Transferred Guarantor”) to a person or persons, none of which is a Borrower
or another Subsidiary of Holdings, such Transferred Guarantor shall, upon the
consummation of such sale or transfer, be released from its obligations under
this Agreement (including under Section 10.03 hereof) and its
obligations to pledge and grant any Collateral owned by it pursuant to any
Security Document and, in the case of a sale of all or substantially all of the
Equity Interests of the Transferred Guarantor, the pledge of such Equity
Interests to the Collateral Agent pursuant to the Security Agreements shall be
released, and the Collateral Agent shall take such actions as are necessary to
effect each release described in this Section 7.09 in accordance with
the relevant provisions of the Security Documents.

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ARTICLE VIII

EVENTS OF DEFAULT

          SECTION 8.01 Events of Default. Upon the occurrence and during the
continuance of the following events (“Events of Default”):

     (a) default shall be made in the payment of any principal of any
Loan when and as the same shall become due and payable, whether at the
due date thereof (including a Loan Repayment Date) or at a date fixed for
prepayment (whether voluntary or mandatory) thereof or by acceleration
thereof or otherwise;

     (b) default shall be made in the payment of any interest on any Loan
or any fee or any other amount (other than an amount referred to in
paragraph (a) above) due under any Loan Document, when and as the same
shall become due and payable, and such default shall continue unremedied
for a period of three Business Days;

     (c) any representation or warranty made or deemed made in or in
connection with any Loan Document or the borrowings hereunder, or any
representation, warranty, statement or information contained in any
report, certificate, financial statement or other instrument furnished in
connection with or pursuant to any Loan Document, shall prove to have
been false or misleading in any material respect when so made, deemed
made or furnished;

     (d) default shall be made in the due observance or performance by
any Company of any covenant, condition or agreement contained in
Section 5.02, 5.03(a), 5.08 or 5.14 or in
Article VI;

     (e) default shall be made in the due observance or performance by
any Company of any covenant, condition or agreement contained in any Loan
Document (other than those specified in paragraph (a), (b) or (d)
immediately above) and such default shall continue unremedied or shall
not be waived for a period of 30 days after written notice thereof from
the Administrative Agent or any Lender to Holdings;

     (f) any Company shall (i) fail to pay any principal or interest,
regardless of amount, due in respect of any Indebtedness (other than the
Obligations), when and as the same shall become due and payable beyond
any applicable grace period, or (ii) fail to observe or perform any other
term, covenant, condition or agreement contained in any agreement or
instrument evidencing or governing any such Indebtedness if the effect of
any failure referred to in this clause (ii) is to cause, or to permit the
holder or holders of such Indebtedness or a trustee or other
representative on its or their behalf (with or without the giving of
notice, the lapse of time or both) to cause, such Indebtedness to become
due prior to its stated maturity or become subject to a mandatory offer
purchase by the obligor; provided that it shall not constitute an Event
of Default pursuant to this paragraph (f) unless the aggregate amount of
all such Indebtedness referred to in clauses (i) and (ii) exceeds $5.0
million at any one time (provided that, in the case of Hedging
Obligations, the amount counted for this purpose shall be the amount
payable by all Companies if such Hedging Obligations were terminated at
such time);

     (g) an involuntary proceeding shall be commenced or an involuntary
petition shall be filed in a court of competent jurisdiction seeking (i)
relief in respect of any Company, or of a

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substantial part of the property of any Company, under Title 11 of the
Code, as now constituted or hereafter amended, or any other federal,
state or foreign bankruptcy, insolvency, receivership or similar law;
(ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for any Company or for a substantial part
of the property of any Company; or (iii) the winding-up or liquidation of
any Company; and such proceeding or petition shall continue undismissed
for 60 days or an order or decree approving or ordering any of the
foregoing shall be entered;

     (h) any Company shall (i) voluntarily commence any proceeding or
file any petition seeking relief under Title 11 of the United States
Code, as now constituted or hereafter amended, or any other federal,
state or foreign bankruptcy, insolvency, receivership or similar law;
(ii) consent to the institution of, or fail to contest in a timely and
appropriate manner, any proceeding or the filing of any petition
described in clause (g) above; (iii) apply for or consent to the
appointment of a receiver, trustee, custodian, sequestrator, conservator
or similar official for any Company or for a substantial part of the
property of any Company; (iv) file an answer admitting the material
allegations of a petition filed against it in any such proceeding; (v)
make a general assignment for the benefit of creditors; (vi) become
unable, admit in writing its inability or fail generally to pay its debts
as they become due; (vii) take any action for the purpose of effecting
any of the foregoing; or (viii) wind up or liquidate;

     (i) one or more judgments, orders or decrees for the payment of
money in an aggregate amount in excess of $5.0 million (excluding the
amount of any judgments, orders and decrees to the extent (x) covered by
insurance issued by a reputable insurer that has acknowledged coverage or
(y) relating to appraisal rights in respect of Metrocall Public shares
arising due to the Mergers in an aggregate amount not greater than the
Minimum Balance) shall be rendered against any Company or any combination
thereof and the same shall remain unstayed, undischarged, unvacated or
unbonded for a period of 30 consecutive days, or any action shall be
legally taken by a judgment creditor to levy upon properties of any
Company to enforce any such judgment;

     (j) one or more ERISA Events or noncompliance with respect to
Foreign Plans shall have occurred that, in the opinion of the Required
Lenders, when taken together with all other such ERISA Events and
noncompliance with respect to Foreign Plans that have occurred, could
reasonably be expected to result in liability of any Company and its
ERISA Affiliates in an aggregate amount exceeding $5.0 million or the
imposition of a Lien on any properties of a Company;

     (k) any security interest and Lien on a material portion of the
Collateral purported to be created by any Security Document shall cease
to be in full force and effect, or shall cease to give the Collateral
Agent, for the benefit of the Secured Parties, the Liens, rights, powers
and privileges purported to be created and granted under such Security
Document (including a perfected first priority security interest in and
Lien thereunder (except as otherwise expressly provided in such Security
Document)) in favor of the Collateral Agent, or shall be asserted by any
Loan Party not to be a valid, perfected, first priority (except as
otherwise expressly provided in this Agreement or such Security Document)
security interest in or Lien on the Collateral covered thereby;

     (l) any Loan Document or any material provisions thereof shall at
any time and for any reason be declared by a court of competent
jurisdiction to be null and void, or a proceeding shall be commenced by
any Loan Party or any other person, or by any Governmental Authority,

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seeking to establish the invalidity or unenforceability thereof
(exclusive of questions of interpretation of any provision thereof), or
any Loan Party shall repudiate or deny any portion of its liability or
obligation for the Obligations;

     (m) there shall have occurred a Change in Control; or

     (n) the Mergers shall not have occurred on the Closing Date in
accordance with the terms and conditions of the Merger Agreement;

then, and in every such event (other than an event with respect to Holdings or
either Borrower described in paragraph (g) or (h) above), and at any time
thereafter during the continuance of such event, the Administrative Agent may,
and at the request of the Required Lenders shall, by notice to Borrowers,
declare the Loans then outstanding to be forthwith due and payable in whole or
in part, whereupon the principal of the Loans so declared to be due and
payable, together with accrued interest thereon and any unpaid accrued fees and
all other Obligations of Borrowers accrued hereunder and under any other Loan
Document, shall become forthwith due and payable, without presentment, demand,
protest or any other notice of any kind, all of which are hereby expressly
waived by Borrowers and the Guarantors, anything contained herein or in any
other Loan Document to the contrary notwithstanding; and in any event with
respect to Holdings or either Borrower described in paragraph (g) or (h) above,
and the principal of the Loans then outstanding, together with accrued interest
thereon and any unpaid accrued fees and all other Obligations of Borrowers
accrued hereunder and under any other Loan Document, shall automatically become
due and payable, without presentment, demand, protest or any other notice of
any kind, all of which are hereby expressly waived by the Loan Parties,
anything contained herein or in any other Loan Document to the contrary
notwithstanding.

          SECTION 8.02 Rescission. If at any time after termination of the
Commitments or acceleration of the maturity of the Loans, Borrowers shall pay
all arrears of interest and all payments on account of principal of the Loans
owing by them that shall have become due otherwise than by acceleration (with
interest on principal and, to the extent permitted by law, on overdue interest,
at the rates specified herein) and all Defaults (other than non-payment of
principal of and accrued interest on the Loans due and payable solely by virtue
of acceleration) shall be remedied or waived pursuant Section 10.02,
then upon the written consent of the Required Lenders and written notice to
Holdings, the termination of the Commitments or the acceleration and their
consequences may be rescinded and annulled; but such action shall not affect
any subsequent Default or impair any right or remedy consequent thereon. The
provisions of the preceding sentence are intended merely to bind the Lenders to
a decision that may be made at the election of the Required Lenders, and such
provisions are not intended to benefit Borrowers and do not give Borrowers the
right to require the Lenders to rescind or annul any acceleration hereunder,
even if the conditions set forth herein are met.

          SECTION 8.03 Application of Proceeds. The proceeds received by the
Collateral Agent in respect of any sale of, collection from or other
realization upon all or any part of the Collateral pursuant to the exercise by
the Collateral Agent of its remedies shall be applied, in full or in part,
together with any other sums then held by the Collateral Agent pursuant to this
Agreement, promptly by the Collateral Agent as follows:

     (a) First, to the payment of all reasonable costs and expenses,
fees, commissions and taxes of such sale, collection or other realization
including compensation to the Collateral Agent and its agents and
counsel, and all expenses, liabilities and advances made or incurred by
the Collateral Agent in connection therewith and all amounts for which
the Collateral Agent is entitled to

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indemnification pursuant to the provisions of any Loan Document,
together with interest on each such amount at the highest rate then in
effect under this Agreement from and after the date such amount is due,
owing or unpaid until paid in full;

     (b) Second, to the payment of all other reasonable costs and
expenses of such sale, collection or other realization including
compensation to the other Secured Parties and their agents and counsel
and all costs, liabilities and advances made or incurred by the other
Secured Parties in connection therewith, together with interest on each
such amount at the highest rate then in effect under this Agreement from
and after the date such amount is due, owing or unpaid until paid in
full;

     (c) Third, without duplication of amounts applied pursuant to
clauses (a) and (b) above, to the indefeasible payment in full in cash,
pro rata, of interest and other amounts constituting Obligations (other
than principal) and any fees, premiums and scheduled periodic payments
due under Hedging Agreements constituting Secured Obligations and any
interest accrued thereon, in each case equally and ratably in accordance
with the respective amounts thereof then due and owing;

     (d) Fourth, to the indefeasible payment in full in cash, pro rata,
of principal amount of the Obligations and any breakage termination or
other payments under Hedging Agreements constituting Secured Obligations
and any interest accrued thereon; and

     (e) Fifth, the balance, if any, to the person lawfully entitled
thereto (including the applicable Loan Party or its successors or
assigns) or as a court of competent jurisdiction may direct.

          In the event that any such proceeds are insufficient to pay in full the
items described in clauses (a) through (e) of this Section 8.03, the
Loan Parties shall remain liable, jointly and severally, for any deficiency.

ARTICLE IX

THE ADMINISTRATIVE AGENT AND THE COLLATERAL AGENT

          SECTION 9.01 Appointment and Authority. Each of the Lenders hereby
irrevocably appoints UBS AG, Stamford Branch, to act on its behalf as the
Administrative Agent and the Collateral Agent hereunder and under the other
Loan Documents and authorizes such Agents to take such actions on its behalf
and to exercise such powers as are delegated to such Agents by the terms hereof
or thereof, together with such actions and powers as are reasonably incidental
thereto. The provisions of this Article are solely for the benefit of the
Administrative Agent, the Collateral Agent and the Lenders, and no Loan Party
shall have rights as a third party beneficiary of any of such provisions.

          SECTION 9.02 Rights as a Lender. Each person serving as an Agent
hereunder shall have the same rights and powers in its capacity as a Lender as
any other Lender and may exercise the same as though it were not an Agent and
the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or
unless the context otherwise requires, include each person serving as an Agent
hereunder in its individual capacity. Such person and its Affiliates may
accept deposits from, lend money to, act as the financial advisor or in any
other advisory capacity for and generally engage in any kind of

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business with Holdings or any Subsidiary or other Affiliate thereof as if
such person were not an Agent hereunder and without any duty to account
therefor to the Lenders.

          SECTION 9.03 Exculpatory Provisions. No Agent shall have any
duties or obligations except those expressly set forth herein and in the other
Loan Documents. Without limiting the generality of the foregoing, no Agent:

     (i) shall be subject to any fiduciary or other implied duties,
regardless of whether a Default has occurred and is continuing;

     (ii) shall have any duty to take any discretionary action or
exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby or by the other Loan Documents that such
Agent is required to exercise as directed in writing by the Required
Lenders (or such other number or percentage of the Lenders as shall be
expressly provided for herein or in the other Loan Documents); provided
that such Agent shall not be required to take any action that, in its
judgment or the judgment of its counsel, may expose such Agent to
liability or that is contrary to any Loan Document or applicable
Requirements of Law; and

     (iii) shall, except as expressly set forth herein and in the other
Loan Documents, have any duty to disclose, and shall not be liable for
the failure to disclose, any information relating to either Borrower or
any of its Affiliates that is communicated to or obtained by the person
serving as such Agent or any of its Affiliates in any capacity.

No Agent shall be liable for any action taken or not taken by it (x) with the
consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary, or as such Agent shall believe
in good faith shall be necessary under the circumstances as provided in
Section 10.02 or (y) in the absence of its own gross negligence or
willful misconduct. No Agent shall be deemed to have knowledge of any Default
unless and until notice describing such Default is given to such Agent by
Holdings or a Lender.

          No Agent shall be responsible for or have any duty to ascertain or inquire
into (i) any statement, warranty or representation made in or in connection
with this Agreement or any other Loan Document, (ii) the contents of any
certificate, report or other document delivered hereunder or thereunder or in
connection herewith or therewith, (iii) the performance or observance of any of
the covenants, agreements or other terms or conditions set forth herein or
therein or the occurrence of any Default, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any
other agreement, instrument or document or (v) the satisfaction of any
condition set forth in Article IV or elsewhere herein, other than to confirm
receipt of items expressly required to be delivered to such Agent. Without
limiting the generality of the foregoing, the use of the term “agent” in this
Agreement with reference to the Administrative Agent or the Collateral Agent is
not intended to connote any fiduciary or other implied (or express) obligations
arising under agency doctrine of any applicable law. Instead, such term is
used merely as a matter of market custom and is intended to create or reflect
only an administrative relationship between independent contracting parties.

          SECTION 9.04 Reliance by Agent. Each Agent shall be entitled to
rely upon, and shall not incur any liability for relying upon, any notice,
request, certificate, consent, statement, instrument, document or other writing
(including any electronic message, Internet or intranet website posting or
other distribution) believed by it to be genuine and to have been signed, sent
or otherwise authenticated by the proper person. Each Agent also may rely upon
any statement made to it orally or by telephone and

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believed by it to have been made by the proper person, and
shall not incur any liability for relying thereon. In determining compliance
with any condition hereunder to the making of a Loan that by its terms must be
fulfilled to the satisfaction of a Lender, the Administrative Agent may presume
that such condition is satisfactory to such Lender unless the Administrative
Agent shall have received notice to the contrary from such Lender prior to the
making of such Loan. Each Agent may consult with legal counsel (who may be
counsel for the Loan Parties), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel, accountants or experts.

          SECTION 9.05 Delegation of Duties. Each Agent may perform any and
all of its duties and exercise its rights and powers hereunder or under any
other Loan Document by or through any one or more sub-agents appointed by such
Agent. Each Agent and any such sub-agent may perform any and all of its duties
and exercise its rights and powers by or through their respective Related
Parties. The exculpatory provisions of this Article shall apply to any such
sub-agent and to the Related Parties of each Agent and any such sub-agent, and
shall apply to their respective activities in connection with the syndication
of the credit facilities provided for herein as well as activities as Agent.

          SECTION 9.06 Resignation of Agent. Each Agent may at any time give
notice of its resignation to the Lenders and Borrowers. Upon receipt of any
such notice of resignation, the Required Lenders shall have the right, with the
consent of the Borrowers (provided that such consent (i) shall not be
unreasonably withheld and (ii) shall not be required if an Event of Default
shall have occurred and be continuing), to appoint a successor, which shall be
a bank with an office in the United States, or an Affiliate of any such bank
with an office in the United States. If no such successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment
within 30 days after the retiring Agent gives notice of its resignation, then
the retiring Agent may, on behalf of the Lenders, appoint a successor Agent
(which shall be a bank with an office in the United States, or an Affiliate of
any such bank with an office in the United States); provided that if the Agent
shall notify Holdings and the Lenders that no qualifying person has accepted
such appointment as a successor Agent, then such resignation shall nonetheless
become effective in accordance with such notice and (1) the retiring Agent
shall be discharged from its duties and obligations hereunder and under the
other Loan Documents (except that in the case of any collateral security held
by the Collateral Agent on behalf of the Lenders under any of the Loan
Documents, the retiring Collateral Agent shall continue to hold such collateral
security as nominee until such time as a successor Collateral Agent is
appointed) and (2) all payments, communications and determinations provided to
be made by, to or through an Agent shall instead be made by or to each Lender
directly, until such time as the Required Lenders appoint a successor Agent as
provided for above in this paragraph. Upon the acceptance of a successor’s
appointment as Agent hereunder, such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring
(or retired) Agent, and the retiring Agent shall be discharged from all of its
duties and obligations hereunder or under the other Loan Documents (if not
already discharged therefrom as provided above in this paragraph). The fees
payable by Borrowers to a successor Agent shall be the same as those payable to
its predecessor unless otherwise agreed between Borrowers and such successor.
After the retiring Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Article IX and Section 10.03
shall continue in effect for the benefit of such retiring Agent, its sub-agents
and their respective Related Parties in respect of any actions taken or omitted
to be taken by any of them while the retiring Agent was acting as Agent.

          SECTION 9.07 Non-Reliance on Agent and Other Lenders. Each Lender
acknowledges that it has, independently and without reliance upon any Agent or
any other Lender and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision

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to enter into this Agreement. Each Lender also acknowledges that
it will, independently and without reliance upon any Agent or any other Lender
and based on such documents and information as it shall from time to time deem
appropriate, continue to make its own decisions in taking or not taking action
under or based upon this Agreement, any other Loan Document or any related
agreement or any document furnished hereunder or thereunder.

          SECTION 9.08 No Other Duties, etc. Anything herein to the contrary
notwithstanding, none of the Bookmanager, Arranger, Syndication Agent or
Documentation Agent listed on the cover page hereof shall have any powers,
duties or responsibilities under this Agreement or any of the other Loan
Documents, except in its capacity, as applicable, as the Administrative Agent,
the Collateral Agent or a Lender hereunder.

ARTICLE X

MISCELLANEOUS

          SECTION 10.01 Notices.

           (a) Generally. Except in the case of notices and other
communications expressly permitted to be given by telephone (and except as
provided in paragraph (b) below), all notices and other communications provided
for herein shall be in writing and shall be delivered by hand or overnight
courier service, mailed by certified or registered mail or sent by telecopier
as follows:

     (i) if to any Loan Party, to Holdings at:

	 
	USA Mobility, Inc.

	6677 Richmond Highway

	Alexandria, Virginia 22306

	Attention: George Z. Moratis

	Telecopier: (703) 721-3088

	Email: george.moratis@metrocall.com

     (ii) if to the Administrative Agent or the Collateral Agent, to it at:

	 
	UBS AG, Stamford Branch

	677 Washington Boulevard

	Stamford, Connecticut 06901

	Attention: Doris Mesa

	Telecopier No.: (203) 719-3888

	Email: doris.mesa@ubs.com; and

     (iii) if to a Lender, to it at its address (or telecopier number)
set forth in its Administrative Questionnaire.

Notices sent by hand or overnight courier service, or mailed by certified or
registered mail, shall be deemed to have been given when received; notices sent
by telecopier shall be deemed to have been given when sent (except that, if not
given during normal business hours for the recipient, shall be deemed to have
been given at the opening of business on the next business day for the
recipient). Notices delivered through electronic communications to the extent
provided in paragraph (b) below, shall be effective as provided in said
paragraph (b).

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          (b) Electronic Communications. Notices and other communications to
the Lenders hereunder may (subject to Section 10.01(d)) be delivered or
furnished by electronic communication (including e-mail and Internet or
intranet websites) pursuant to procedures approved by the Administrative Agent;
provided that the foregoing shall not apply to notices to any Lender pursuant
to Article II if such Lender has notified the Administrative Agent that
it is incapable of receiving notices under such Article by electronic
communication. The Administrative Agent, the Collateral Agent or the Loan
Parties may, in its discretion, agree to accept notices and other
communications to them hereunder by electronic communications pursuant to
procedures approved by them (including as set forth in Section
10.01(d)); provided that approval of such procedures may be limited to
particular notices or communications.

          Unless the Administrative Agent otherwise prescribes, (i) notices and
other communications sent to an e-mail address shall be deemed received upon
the sender’s receipt of an acknowledgement from the intended recipient (such as
by the “return receipt requested” function, as available, return e-mail or
other written acknowledgement); provided that if such notice or other
communication is not sent during the normal business hours of the recipient,
such notice or communication shall be deemed to have been sent at the opening
of business on the next business day for the recipient, and (ii) notices or
communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that such
notice or communication is available and identifying the website address
therefor.

          (c) Change of Address, Etc. Any party hereto may change its
address or telecopier number for notices and other communications hereunder by
notice to the other parties hereto.

          (d) Posting. Each Loan Party hereby agrees that it will provide to
the Administrative Agent all information, documents and other materials that it
is obligated to furnish to the Administrative Agent pursuant to this Agreement
and any other Loan Document, including all notices, requests, financial
statements, financial and other reports, certificates and other information
materials, but excluding any such communication that (i) relates to a request
for a conversion of a Borrowing (including any election of an interest rate or
interest period relating thereto), (ii) relates to the payment of any principal
or other amount due under this Agreement prior to the scheduled date therefor,
(iii) provides notice of any Default under this Agreement or (iv) is required
to be delivered to satisfy any condition precedent to the effectiveness of this
Agreement and/or any borrowing or other extension of credit hereunder (all such
non-excluded communications, collectively, the “Communications”), by
transmitting the Communications in an electronic/soft medium in a format
reasonably acceptable to the Administrative Agent at doris.mesa@ubs.com or at
such other e-mail address(es) provided to Borrowers from time to time or in
such other form, including hard copy delivery thereof, as the Administrative
Agent shall require. In addition, each Loan Party agrees to continue to
provide the Communications to the Administrative Agent in the manner specified
in this Agreement or any other Loan Document or in such other form, including
hard copy delivery thereof, as the Administrative Agent shall require. Nothing
in this Section 10.01 shall prejudice the right of the Agents, any
Lender or any Loan Party to give any notice or other communication pursuant to
this Agreement or any other Loan Document in any other manner specified in this
Agreement or any other Loan Document or as any such Agent shall require.

          To the extent consented to by the Administrative Agent in writing from
time to time, Administrative Agent agrees that receipt of the Communications by
the Administrative Agent at its e-mail address(es) set forth above shall
constitute effective delivery of the Communications to the Administrative Agent
for purposes of the Loan Documents; provided that Borrowers shall also deliver
to the Administrative Agent an executed original of each Compliance Certificate
required to be delivered hereunder.

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          Each Loan Party further agrees that Administrative Agent may make the
Communications available to the Lenders by posting the Communications on
Intralinks or a substantially similar electronic transmission system (the
“Platform”). The Platform is provided “as is” and “as available.” The Agents
do not warrant the accuracy or completeness of the Communications, or the
adequacy of the Platform and expressly disclaim liability for errors or
omissions in the communications. No warranty of any kind, express, implied or
statutory, including, without limitation, any warranty of merchantability,
fitness for a particular purpose, non-infringement of third party rights or
freedom from viruses or other code defects, is made by any Agent in connection
with the Communications or the Platform. In no event shall the Administrative
Agent or any of its Related Parties have any liability to the Loan Parties, any
Lender or any other person for damages of any kind, including direct or
indirect, special, incidental or consequential damages, losses or expenses
(whether in tort, contract or otherwise) arising out of any Loan Party’s or the
Administrative Agent’s transmission of communications through the Internet,
except to the extent the liability of such person is found in a final
non-appealable judgment by a court of competent jurisdiction to have resulted
from such person’s gross negligence or willful misconduct.

          SECTION 10.02 Waivers; Amendment.

          (a) Generally. No failure or delay by any Agent or any Lender in
exercising any right or power hereunder or under any other Loan Document shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce
such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of each Agent
and the Lenders hereunder and under the other Loan Documents are cumulative and
are not exclusive of any rights or remedies that they would otherwise have. No
waiver of any provision of any Loan Document or consent to any departure by any
Loan Party therefrom shall in any event be effective unless the same shall be
permitted by this Section 10.02, and then such waiver or consent shall
be effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of a Loan shall
not be construed as a waiver of any Default, regardless of whether any Agent or
any Lender may have had notice or knowledge of such Default at the time. No
notice or demand on Borrowers in any case shall entitle Borrowers to any other
or further notice or demand in similar or other circumstances.

          (b) Required Consents. Subject to Sections 10.02(c) and
(d), neither this Agreement nor any other Loan Document nor any
provision hereof or thereof may be waived, amended, supplemented or modified
except, in the case of this Agreement, pursuant to an agreement or agreements
in writing entered into by Borrowers and the Required Lenders or, in the case
of any other Loan Document, pursuant to an agreement or agreements in writing
entered into by the Administrative Agent, the Collateral Agent (in the case of
any Security Document) and the Loan Party or Loan Parties that are party
thereto, in each case with the written consent of the Required Lenders;
provided that no such agreement shall be effective if the effect thereof would:

     (i) reduce the principal amount of any Loan or reduce the rate of
interest thereon (other than interest pursuant to Section
2.06(c)), or reduce any fees payable hereunder, or change the form or
currency of payment of any Obligation, without the written consent of
each Lender directly affected thereby (it being understood that any
amendment or modification to the financial definitions in this Agreement
shall not constitute a reduction in the rate of interest for purposes of
this clause (ii));

     (ii) (A) change the scheduled final maturity of any Loan, or any
scheduled date of payment of or the installment otherwise due on the
principal amount of any Loan under

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Section 2.09, (B) postpone the date for payment of any
interest or fees payable hereunder or (C) change the amount of, waive or
excuse any such payment (other than waiver of any increase in the
interest rate pursuant to Section 2.06(c));

     (iii) increase the maximum duration of Interest Periods hereunder,
without the written consent of each Lender directly affected thereby;

     (iv) permit the assignment or delegation by Borrowers or Holdings of
any of its rights or obligations under any Loan Document, without the
written consent of each Lender;

     (v) release Holdings or all or substantially all of the other
Guarantors from their Guarantee (except as expressly provided in
Article VII), or limit their liability in respect of such
Guarantee, without the written consent of each Lender;

     (vi) release all or a substantial portion of the Collateral from the
Liens of the Security Documents or alter the relative priorities of the
Secured Obligations entitled to the Liens of the Security Documents, in
each case without the written consent of each Lender;

     (vii) change Section 2.14(b) or (c) in a manner that
would alter the pro rata sharing of payments or setoffs required thereby
or any other provision in a manner that would alter the pro rata
allocation among the Lenders of Loan disbursements, including the
requirements of Section 2.02(a), without the written consent of
each Lender directly affected thereby;

     (viii) change any provision of this Section 10.02(b) or
Section 10.02(c) or (d), without the written consent of
each Lender directly affected thereby;

     (ix) change the percentage set forth in the definition of “Required
Lenders” or any other provision of any Loan Document (including this
Section) specifying the number or percentage of Lenders required to
waive, amend or modify any rights thereunder or make any determination or
grant any consent thereunder, without the written consent of each Lender,
other than to increase such percentage or number or to give any
additional Lender or group of Lenders such right to waive, amend or
modify or make any such determination or grant any such consent;

     (x) change or waive any provision of Article IX as the same
applies to any Agent, or any other provision hereof as the same applies
to the rights or obligations of any Agent, in each case without the
written consent of such Agent;

provided, further, that any waiver, amendment or modification prior to the
achievement of a Successful Syndication may not be effected without the written
consent of the Arranger.

          (c) Collateral. Without the consent of any other person, the
applicable Loan Party or Parties and the Administrative Agent and/or Collateral
Agent may (in its or their respective sole discretion, or shall, to the extent
required by any Loan Document) enter into any amendment or waiver of any Loan
Document, or enter into any new agreement or instrument, to effect the
granting, perfection, protection, expansion or enhancement of any security
interest in any Collateral or additional property to become Collateral for the
benefit of the Secured Parties, or as required by local law to give effect to,
or protect, any security interest for the benefit of the Secured Parties in any
property or so that the security interests therein comply with applicable
Requirements of Law.

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          (d) Dissenting Lenders. If, in connection with any proposed
change, waiver, discharge or termination of the provisions of this Agreement as
contemplated by Section 10.02(b), the consent of the Required Lenders is
obtained but the consent of one or more of such other Lenders whose consent is
required is not obtained, then Borrowers shall have the right to replace all,
but not less than all, of such non-consenting Lender or Lenders (so long as all
non-consenting Lenders are so replaced) with one or more persons pursuant to
Section 2.16 so long as at the time of such replacement each such new
Lender consents to the proposed change, waiver, discharge or termination.

          SECTION 10.03 Expenses; Indemnity; Damage Waiver.

          (a) Costs and Expenses. Borrowers shall pay (i) all reasonable
out-of-pocket expenses incurred by the Administrative Agent, the Collateral
Agent and their respective Affiliates (including the reasonable fees, charges
and disbursements of counsel for the Administrative Agent and/or the Collateral
Agent) in connection with the syndication of the credit facilities provided for
herein (including the obtaining and maintaining of CUSIP numbers for the Loans)
and the preparation, negotiation, execution, delivery and administration of
this Agreement and the other Loan Documents (including the costs and expenses
of any visit to any Company pursuant to Section 5.07) or any amendments,
modifications or waivers of the provisions hereof or thereof (whether or not
the transactions contemplated hereby or thereby shall be consummated), (ii) at
any time that a Default shall have occurred and be continuing, the costs and
expenses of any Lender making a visit to any Company pursuant to Section
5.07, (iii) all out-of-pocket expenses incurred by the Administrative
Agent, the Collateral Agent or any Lender (including the fees, charges and
disbursements of any counsel for the Administrative Agent, the Collateral Agent
or any Lender), in connection with the enforcement or protection of its rights
(A) in connection with this Agreement and the other Loan Documents, including
its rights under this Section 10.03, or (B) in connection with the Loans
made hereunder, including all such out-of-pocket expenses incurred during any
workout, restructuring or negotiations in respect of such Loans and (iv) all
documentary and similar taxes and charges in respect of the Loan Documents.

          (b) Indemnification by Borrowers. Borrowers shall indemnify the
Administrative Agent (and any sub-agent thereof), the Collateral Agent (and any
sub-agent thereof) and each Lender, and each Related Party of any of the
foregoing persons (each such person being called an “Indemnitee”) against, and
hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses (including the fees, charges and disbursements
of any counsel for any Indemnitee) incurred by any Indemnitee or asserted
against any Indemnitee by any third party or by Borrowers or any other Loan
Party arising out of, in connection with, or as a result of (i) the execution
or delivery of this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the performance by the parties
hereto of their respective obligations hereunder or thereunder or the
consummation of the transactions contemplated hereby or thereby, (ii) any Loan
or the use or proposed use of the proceeds therefrom, (iii) any actual or
alleged presence or Release or threatened Release of Hazardous Materials on,
at, under or from any property owned, leased or operated by any Company at any
time, or any Environmental Claim related in any way to any Company, or (iv) any
actual or prospective claim, litigation, investigation or proceeding relating
to any of the foregoing, whether based on contract, tort or any other theory,
whether brought by a third party or by Borrowers or any other Loan Party, and
regardless of whether any Indemnitee is a party thereto; provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses (x) are determined by
a court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Indemnitee or
(y) result from a claim brought by any Loan Party against an Indemnitee for
breach in bad faith of such Indemnitee’s obligations hereunder

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or under any other Loan Document, if Borrowers or such Loan
Party have obtained a final and nonappealable judgment in its favor on such
claim as determined by a court of competent jurisdiction.

          (c) Reimbursement by Lenders. To the extent that Borrowers for any
reason fail to indefeasibly pay any amount required under paragraph (a) or (b)
of this Section 10.03 to be paid by them to the Administrative Agent (or
any sub-agent thereof), the Collateral Agent or any Related Party of any of the
foregoing, each Lender severally agrees to pay to the Administrative Agent (or
any such sub-agent), the Collateral Agent (or any sub-agent thereof) or such
Related Party, as the case may be, such Lender’s pro rata share (determined as
of the time that the applicable unreimbursed expense or indemnity payment is
sought) of such unpaid amount; provided that the unreimbursed expense or
indemnified loss, claim, damage, liability or related expense, as the case may
be, was incurred by or asserted against the Administrative Agent (or any such
sub-agent) or the Collateral Agent (or any sub-agent thereof) in its capacity
as such, or against any Related Party of any of the foregoing acting for the
Administrative Agent (or any such sub-agent) or the Collateral Agent (or any
sub-agent thereof) in connection with such capacity. The obligations of the
Lenders under this paragraph (c) are subject to the provisions of Section
2.14. For purposes hereof, a Lender’s “pro rata share” shall be determined
based upon its share of the sum of the total outstanding Loans and Commitments
at the time.

          (d) Waiver of Consequential Damages, Etc. To the fullest extent
permitted by applicable Requirements of Law, no Loan Party shall assert, and
each Loan Party hereby waives, any claim against any Indemnitee, on any theory
of liability, for special, indirect, consequential or punitive damages (as
opposed to direct or actual damages) arising out of, in connection with, or as
a result of, this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby, the transactions contemplated hereby or
thereby, any Loan or the use of the proceeds thereof. No Indemnitee referred
to in paragraph (b) above shall be liable for any damages arising from the use
by unintended recipients of any information or other materials distributed by
it through telecommunications, electronic or other information transmission
systems in connection with this Agreement or the other Loan Documents or the
transactions contemplated hereby or thereby.

          (e) Payments. All amounts due under this Section shall be payable
not later than 3 Business Days after demand therefor.

          SECTION 10.04 Successors and Assigns.

          (a) Successors and Assigns Generally. The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby, except that
neither Borrower may assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of the Administrative
Agent, the Collateral Agent and each Lender and no Lender may assign or
otherwise transfer any of its rights or obligations hereunder except (i) to an
Eligible Assignee in accordance with the provisions of paragraph (b) of this
Section 10.04, (ii) by way of participation in accordance with the
provisions of paragraph (d) of this Section 10.04 or (iii) by way of
pledge or assignment of a security interest subject to the restrictions of
paragraph (f) of this Section (and any other attempted assignment or transfer
by either Borrower or any Lender shall be null and void). Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any person
(other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in paragraph (d) of this
Section and, to the extent expressly contemplated hereby, the other
Indemnitees) any legal or equitable right, remedy or claim under or by reason
of this Agreement.

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          (b) Assignments by Lenders. Any Lender may at any time assign to
one or more Eligible Assignees all or a portion of its rights and obligations
under this Agreement (including all or a portion of its Commitment and the
Loans at the time owing to it); provided that

     (i) except in the case of any assignment made in connection with the
primary syndication of the Commitment and Loans by the Arranger or an
assignment of the entire remaining amount of the assigning Lender’s
Commitment and the Loans at the time owing to it or in the case of an
assignment to a Lender or an Affiliate of a Lender or an Approved Fund
with respect to a Lender, the aggregate amount of the Commitment (which
for this purpose includes Loans outstanding thereunder) or, if the
applicable Commitment is not then in effect, the principal outstanding
balance of the Loans of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Assumption with
respect to such assignment is delivered to the Administrative Agent or,
if “Trade Date” is specified in the Assignment and Assumption, as of the
Trade Date) shall not be less than $1.0 million, unless the
Administrative Agent otherwise consents (such consent not to be
unreasonably withheld or delayed);

     (ii) each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender’s rights and obligations
under this Agreement with respect to the Loan or the Commitment assigned;
and

     (iii) the parties to each assignment shall execute and deliver to
the Administrative Agent an Assignment and Assumption, together with a
processing and recordation fee of $3,500, and the Eligible Assignee, if
it shall not be a Lender, shall deliver to the Administrative Agent an
Administrative Questionnaire.

Subject to acceptance and recording thereof by the Administrative Agent
pursuant to paragraph (c) of this Section 10.04, from and after the
effective date specified in each Assignment and Assumption, the Eligible
Assignee thereunder shall be a party to this Agreement and, to the extent of
the interest assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto) but shall continue to be entitled to the benefits of Sections
2.12, 2.13, 2.15 and 10.03 with respect to facts and
circumstances occurring prior to the effective date of such assignment. Any
assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this paragraph shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with paragraph (d) of this Section
10.04.

          (c) Register. The Administrative Agent, acting solely for this
purpose as an agent of Borrowers, shall maintain at one of its offices in
Stamford, Connecticut a copy of each Assignment and Assumption delivered to it
and a register for the recordation of the names and addresses of the Lenders,
and the Commitments of, and principal amounts of the Loans and LC Disbursements
owing to, each Lender pursuant to the terms hereof from time to time (the
“Register”). The entries in the Register shall be conclusive, and Borrowers,
the Administrative Agent and the Lenders may treat each person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by Borrowers, the Collateral Agent
and any Lender (with respect to its own interest only), at any reasonable time
and from time to time upon reasonable prior notice.

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          (d) Participations. Any Lender may at any time, without the
consent of, or notice to, Borrowers or the Administrative Agent, sell
participations to any person (other than a natural person or Holdings or any of
Holdings’ Affiliates or Subsidiaries) (each, a “Participant”) in all or a
portion of such Lender’s rights and/or obligations under this Agreement
(including all or a portion of its Commitment and/or the Loans owing to it);
provided that (i) such Lender’s obligations under this Agreement shall remain
unchanged, (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations and (iii) Borrowers, the
Administrative Agent and the Lenders shall continue to deal solely and directly
with such Lender in connection with such Lender’s rights and obligations under
this Agreement.

          Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce the Loan Documents and to approve any amendment, modification or waiver
of any provision of the Loan Documents; provided that such agreement or
instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver described in clause
(ii) or (iii) of the first proviso to Section 10.02(b) that affects such
Participant. Subject to paragraph (e) of this Section, Borrowers agree that
each Participant shall be entitled to the benefits of Sections 2.12,
2.13 and 2.15 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to paragraph (b) of this Section.
To the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 10.08 as though it were a Lender, provided such
Participant agrees to be subject to Section 2.14 as though it were a
Lender.

          (e) Limitations on Participant Rights. A Participant shall not be
entitled to receive any greater payment under Sections 2.12, 2.13
and 2.15 than the applicable Lender would have been entitled to receive
with respect to the participation sold to such Participant, unless the sale of
the participation to such Participant is made with Holdings’ prior written
consent. A Participant that would be a Foreign Lender if it were a Lender
shall not be entitled to the benefits of Section 2.15 unless Borrowers
are notified of the participation sold to such Participant and such Participant
agrees, for the benefit of Borrowers, to comply with Section 2.15(e) as
though it were a Lender.

          (f) Certain Pledges. Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement to
secure obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided that no such pledge or
assignment shall release such Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto. In
the case of any Lender that is a fund that invests in bank loans, such Lender
may, without the consent of either Borrower or the Administrative Agent,
collaterally assign or pledge all or any portion of its rights under this
Agreement, including the Loans and Notes or any other instrument evidencing its
rights as a Lender under this Agreement, to any holder of, trustee for, or any
other representative of holders of, obligations owed or securities issued, by
such fund, as security for such obligations or securities.

          SECTION 10.05 Survival of Agreement. All covenants, agreements,
representations and warranties made by the Loan Parties in the Loan Documents
and in the certificates or other instruments delivered in connection with or
pursuant to this Agreement or any other Loan Document shall be considered to
have been relied upon by the other parties hereto and shall survive the
execution and delivery of the Loan Documents and the making of any Loans,
regardless of any investigation made by any such other party or on its behalf
and notwithstanding that the Agents or any Lender may have had notice or
knowledge of any Default or incorrect representation or warranty at the time
any credit is extended hereunder, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any fee or any other amount
payable under this Agreement is outstanding and unpaid and so

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long as the Commitments have not expired or terminated. The provisions of Sections
2.12, 2.14, 2.15 and Article X shall survive and
remain in full force and effect regardless of the consummation of the
transactions contemplated hereby, the repayment of the Loans, the termination
or expiration of the Commitments or the termination of this Agreement or any
provision hereof.

          SECTION 10.06 Counterparts; Integration; Effectiveness; Electronic
Execution.

          (a) Counterparts; Integration; Effectiveness. This Agreement may
be executed in counterparts (and by different parties hereto in different
counterparts), each of which shall constitute an original, but all of which
when taken together shall constitute a single contract. This Agreement and the
other Loan Documents, and any separate letter agreements with respect to fees
payable to the Administrative Agent, constitute the entire contract among the
parties relating to the subject matter hereof and supersede any and all
previous agreements and understandings, oral or written, relating to the
subject matter hereof. Except as provided in Section 4.01, this
Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received
counterparts hereof that, when taken together, bear the signatures of each of
the other parties hereto. Delivery of an executed counterpart of a signature
page of this Agreement by telecopier shall be effective as delivery of a
manually executed counterpart of this Agreement.

          (b) Electronic Execution of Assignments. The words “execution,”
“signed,” “signature,” and words of like import in any Assignment and
Assumption shall be deemed to include electronic signatures or the keeping of
records in electronic form, each of which shall be of the same legal effect,
validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as
provided for in any applicable Requirement of Law, including the Federal
Electronic Signatures in Global and National Commerce Act, the New York State
Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.

          SECTION 10.07 Severability. Any provision of this Agreement held
to be invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

          SECTION 10.08 Right of Setoff. If an Event of Default shall have
occurred and be continuing, each Lender and each of its Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted
by applicable Requirements of Law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final, in whatever
currency) at any time held and other obligations (in whatever currency) at any
time owing by such Lender or any such Affiliate to or for the credit or the
account of any Loan Party against any and all of the obligations of such Loan
Party now or hereafter existing under this Agreement or any other Loan Document
to such Lender, irrespective of whether or not such Lender shall have made any
demand under this Agreement or any other Loan Document and although such
obligations of such Loan Party may be contingent or unmatured or are owed to a
branch or office of such Lender different from the branch or office holding
such deposit or obligated on such indebtedness. The rights of each Lender and
its Affiliates under this Section 10.08 are
in addition to other rights and remedies (including other rights of
setoff) that such Lender or its Affiliates may have. Each Lender agrees to
notify Holdings and the Administrative Agent promptly after any such setoff and
application; provided that the failure to give such notice shall not affect the
validity of such setoff and application.

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          SECTION 10.09 Governing Law; Jurisdiction; Consent to Service of
Process.

          (a) Governing Law. This Agreement shall be construed in accordance
with and governed by the law of the State of New York, without regard to
conflicts of law principles that would require the application of the laws of
another jurisdiction.

          (b) Submission to Jurisdiction. Each Loan Party hereby irrevocably
and unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of the Supreme Court of the State of New York sitting in New York
County and of the United States District Court of the Southern District of New
York, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to any Loan Document, or for recognition or
enforcement of any judgment, and each of the parties hereto hereby irrevocably
and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such New York State court or, to the
fullest extent permitted by applicable law, in such Federal court. Each of the
parties hereto agrees 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. Nothing in this Agreement or
any other Loan Document shall affect any right that the Administrative Agent or
any Lender may otherwise have to bring any action or proceeding relating to
this Agreement or any other Loan Document against any Loan Party or its
properties in the courts of any jurisdiction.

          (c) Waiver of Venue. Each Loan Party hereby irrevocably and
unconditionally waives, to the fullest extent permitted by applicable
Requirements of Law, any objection which it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement or any other Loan Document in any court referred to in
Section 10.09(b). Each of the parties hereto hereby irrevocably waives,
to the fullest extent permitted by applicable Requirements of Law, the defense
of an inconvenient forum to the maintenance of such action or proceeding in any
such court.

          (d) Service of Process. Each party hereto irrevocably consents to
service of process in any action or proceeding arising out of or relating to
any Loan Document, in the manner provided for notices (other than telecopier)
in Section 10.01. Nothing in this Agreement or any other Loan Document
will affect the right of any party hereto to serve process in any other manner
permitted by applicable Requirements of Law.

          SECTION 10.10 Waiver of Jury Trial. Each Loan Party hereby waives,
to the fullest extent permitted by applicable Requirements of Law, any right it
may have to a trial by jury in any legal proceeding directly or indirectly
arising out of or relating to this Agreement, any other Loan Document or the
transactions contemplated hereby (whether based on contract, tort or any other
theory). Each party hereto (a) certifies that no representative, agent or
attorney of any other party has represented, expressly or otherwise, that such
other party would not, in the event of litigation, seek to enforce the
foregoing waiver and (b) acknowledges that it and the other parties hereto have
been induced to enter into this Agreement by, among other things, the mutual
waivers and certifications in this Section.

          SECTION 10.11 Headings. Article and Section headings and the Table
of Contents used herein are for convenience of reference only, are not part of
this Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

          SECTION 10.12 Treatment of Certain Information; Confidentiality.
Each of the Administrative Agent and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its Affiliates and to its and its Affiliates’

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respective partners, directors, officers, employees, agents, advisors and other
representatives (it being understood that the persons to whom such disclosure
is made will be informed of the confidential nature of such Information and
instructed to keep such Information confidential), (b) to the extent requested
by any regulatory authority purporting to have jurisdiction over it (including
any self-regulatory authority, such as the National Association of Insurance
Commissioners), (c) to the extent required by applicable Requirements of Law or
by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder or under any other Loan
Document or any action or proceeding relating to this Agreement or any other
Loan Document or the enforcement of rights hereunder or thereunder, (f) subject
to an agreement containing provisions substantially the same as those of this
Section 10.12, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations
under this Agreement, (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to Borrowers and their
obligations or (iii) any rating agency for the purpose of obtaining a credit
rating applicable to any Lender, (g) with the consent of Holdings or (h) to the
extent such Information (x) becomes publicly available other than as a result
of a breach of this Section or (y) becomes available to the Administrative
Agent, any Lender or any of their respective Affiliates on a nonconfidential
basis from a source other than Holdings or any of its Subsidiaries. For
purposes of this Section, “Information” means all information received from
Holdings or any of its Subsidiaries relating to Holdings or any of its
Subsidiaries or any of their respective businesses, other than any such
information that is available to the Administrative Agent or any Lender on a
nonconfidential basis prior to disclosure by Holdings or any of its
Subsidiaries; provided that, in the case of information received from Holdings
or any of its Subsidiaries after the date hereof, such information is clearly
identified at the time of delivery as confidential. Any person required to
maintain the confidentiality of Information as provided in this Section shall
be considered to have complied with its obligation to do so if such person has
exercised the same degree of care to maintain the confidentiality of such
Information as such person would accord to its own confidential information.

          SECTION 10.13 USA PATRIOT Act Notice. Each Lender that is subject
to the Act (as hereinafter defined) and the Administrative Agent (for itself
and not on behalf of any Lender) hereby notifies Borrowers that pursuant to the
requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the “Act”), it is required to obtain, verify and record
information that identifies Borrowers, which information includes the name,
address and tax identification number of Borrowers and other information
regarding Borrowers that will allow such Lender or the Administrative Agent, as
applicable, to identify Borrowers in accordance with the Act. This notice is
given in accordance with the requirements of the Act and is effective as to the
Lenders and the Administrative Agent.

          SECTION 10.14 Interest Rate Limitation. Notwithstanding anything
herein to the contrary, if at any time the interest rate applicable to any
Loan, together with all fees, charges and other amounts which are treated as
interest on such Loan under applicable Requirements of Law (collectively, the
“Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may
be contracted for, charged, taken, received or reserved by the Lender holding
such Loan in accordance with applicable Requirements of Law, the rate of
interest payable in respect of such Loan hereunder, together
with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would
have been payable in respect of such Loan but were not payable as a result of
the operation of this Section shall be cumulated and the interest and Charges
payable to such Lender in respect of other Loans or periods shall be increased
(but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the Federal Funds Effective Rate to the date of
repayment, shall have been received by such Lender.

-100-

 

          SECTION 10.15 Lender Addendum. Each Lender to become a party to
this Agreement on the date hereof shall do so by delivering to the
Administrative Agent a Lender Addendum duly executed by such Lender, Borrowers
and the Administrative Agent.

          SECTION 10.16 Obligations Absolute. To the fullest extent
permitted by applicable Requirements of Law, all obligations of the Loan
Parties hereunder shall be absolute and unconditional irrespective of:

     (a) any bankruptcy, insolvency, reorganization, arrangement,
readjustment, composition, liquidation or the like of any Loan Party;

     (b) any lack of validity or enforceability of any Loan Document or
any other agreement or instrument relating thereto against any Loan
Party;

     (c) any change in the time, manner or place of payment of, or in any
other term of, all or any of the Obligations, or any other amendment or
waiver of or any consent to any departure from any Loan Document or any
other agreement or instrument relating thereto;

     (d) any exchange, release or non-perfection of any other Collateral,
or any release or amendment or waiver of or consent to any departure from
any guarantee, for all or any of the Obligations;

     (e) any exercise or non-exercise, or any waiver of any right,
remedy, power or privilege under or in respect hereof or any Loan
Document; or

     (f) any other circumstances which might otherwise constitute a
defense available to, or a discharge of, the Loan Parties.

          SECTION 10.17 Joint and Several Liability of Borrowers. All Loans
made hereunder are made to or for the mutual benefit, directly and indirectly,
of each Borrower and in consideration of the agreement of the other Borrower to
accept joint and several liability for the Obligations. Each Borrower, jointly
and severally, hereby irrevocably and unconditionally accepts, not merely as a
surety but also as a co-debtor, joint and several and direct and primary
liability for the full payment when due and performance of all Obligations and
for the prompt and full payment and performance of all of the promises,
covenants, representations and warranties made or undertaken by each Borrower
under the Loan Documents and the Borrowers agree that such liability is
independent of the duties, obligations and liabilities of each of the joint and
several Borrowers. In furtherance of the foregoing, each Borrower jointly and
severally, absolutely and unconditionally guarantees to the Administrative
Agent, the Collateral Agent and the Lenders the full payment and performance
when due of all the Obligations.

[Signature Pages Follow]

-101-

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the day and year
first above written.

	 	 	 	 	 
	 	 	USA MOBILITY, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	 	 	METROCALL, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	 	 	ARCH WIRELESS OPERATING COMPANY, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	 	 	METROCALL HOLDINGS, INC.
	 	 	METROCALL USA, INC.
	 	 	METROCALL VENTURES, INC.
	 	 	ARCH WIRELESS COMMUNICATIONS, INC.
	 	 	ARCH WIRELESS HOLDINGS, INC.
	 	 	ARCH WIRELESS, INC.
	 	 	MOBILEMEDIA COMMUNICATIONS, INC.
	 	 	PAGING NETWORK CANADIAN HOLDINGS, INC.
	 	 	ARCH WIRELESS LICENSE CO., LLC
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	 	 	Name:
	

	 	 	 	Title:

 

 

	 	 	 	 	 
	 	 	UBS SECURITIES LLC, as Arranger, Syndication Agent and Documentation Agent
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	 	 	UBS AG, STAMFORD BRANCH, as Administrative Agent and Collateral Agent
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	 	 	UBS Loan Finance LLC, as a Lender
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	 	 	Name:
	

	 	 	 	Title:

 

 

Annex I

Amortization Table

	 	 	 	 	 
	Date
	 	Loan Amount

	February 28, 2005
	 	$	17,500,000	 
	May 31, 2005
	 	$	17,500,000	 
	August 31, 2005
	 	$	17,500,000	 
	November 30, 2005
	 	$	17,500,000	 
	February 28, 2006
	 	$	17,500,000	 
	May 31, 2006
	 	$	17,500,000	 
	August 31, 2006
	 	$	17,500,000	 
	November 16, 2006
	 	$	17,500,000

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