Document:

exv10w20

 

Exhibit 10.20

 

USA MOBILITY, INC.

LONG TERM CASH INCENTIVE PLAN

Adopted By the Board of Directors

Upon Recommendation of the Compensation Committee

on February 1, 2006

To Be Effective As of January 1, 2006

As Amended October 30, 2007

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	SECTION 1	 	BACKGROUND, PURPOSE AND DURATION	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 
	 	1.1	 	Effective Date	 	 	1	 
	 
	 	1.2	 	Purpose of the Plan	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	SECTION 2	 	DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 
	 	2.1	 	“Actual Award”	 	 	1	 
	 
	 	2.2	 	“Affiliate”	 	 	1	 
	 
	 	2.3	 	“Board”	 	 	1	 
	 
	 	2.4	 	“Bonus Pool”	 	 	1	 
	 
	 	2.5	 	“Committee”	 	 	1	 
	 
	 	2.6	 	“Company”	 	 	2	 
	 
	 	2.7	 	“Disability”	 	 	2	 
	 
	 	2.8	 	“Employee”	 	 	2	 
	 
	 	2.9	 	“Participant”	 	 	2	 
	 
	 	2.10	 	“Performance Period”	 	 	2	 
	 
	 	2.11	 	“Plan”	 	 	2	 
	 
	 	2.12	 	“Target Award”	 	 	2	 
	 
	 	2.13	 	“Termination of Service”	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	SECTION 3	 	SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	 
	 	3.1	 	Selection of Participants	 	 	2	 
	 
	 	3.2	 	Determination of Target Awards	 	 	3	 
	 
	 	3.3	 	Bonus Pool	 	 	3	 
	 
	 	 	 	 	 	 	 	 
	SECTION 4	 	PAYMENT OF AWARDS	 	 	3	 
	 
	 	 	 	 	 	 	 	 
	 
	 	4.1	 	Right to Receive Payment	 	 	3	 
	 
	 	4.2	 	Timing of Payment	 	 	3	 
	 
	 	4.3	 	Form of Payment	 	 	3	 
	 
	 	 	 	 	 	 	 	 
	SECTION 5	 	ADMINISTRATION	 	 	3	 
	 
	 	 	 	 	 	 	 	 
	 
	 	5.1	 	Committee is the Administrator	 	 	3	 
	 
	 	5.2	 	Committee Authority	 	 	3	 
	 
	 	5.3	 	Decisions Binding	 	 	4	 
	 
	 	5.4	 	Delegation by the Committee	 	 	4	 
	 
	 	 	 	 	 	 	 	 
	SECTION 6	 	GENERAL PROVISIONS	 	 	4	 
	 
	 	 	 	 	 	 	 	 
	 
	 	6.1	 	Tax Withholding	 	 	4	 
	 
	 	6.2	 	No Effect on Employment or Service	 	 	4	 
	 
	 	6.3	 	Participation	 	 	4	 
	 
	 	6.4	 	Successors	 	 	4	 

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TABLE OF CONTENTS
(Continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	6.5	 	Beneficiary Designations	 	 	4	 
	 
	 	6.6	 	Nontransferability of Awards	 	 	4	 
	 
	 	 	 	 	 	 	 	 
	SECTION 7	 	AMENDMENT, TERMINATION AND DURATION	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	 
	 	7.1	 	Amendment, Suspension or Termination	 	 	5	 
	 
	 	7.2	 	Duration of the Plan	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	SECTION 8	 	LEGAL CONSTRUCTION	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	 
	 	8.1	 	Gender and Number	 	 	5	 
	 
	 	8.2	 	Severability	 	 	5	 
	 
	 	8.3	 	Requirements of Law	 	 	5	 
	 
	 	8.4	 	Governing Law	 	 	5	 
	 
	 	8.5	 	Captions	 	 	5	 

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USA MOBILITY, INC.

LONG TERM CASH INCENTIVE PLAN

SECTION 1

BACKGROUND, PURPOSE AND DURATION

          1.1 Effective Date. The Board adopted the Plan upon the recommendation of the
Compensation Committee of the Board to be effective as of January 1, 2006. The Plan was amended
for compliance with Section 409A of the Internal Revenue Code on October 30, 2007.

          1.2 Purpose of the Plan. The Plan is intended to increase shareholder value and the
success of the Company by motivating selected employees (a) to perform to the best of their
abilities, and (b) to achieve the Company’s objectives.

SECTION 2

DEFINITIONS

          The following words and phrases shall have the following meanings unless a different meaning
is plainly required by the context:

          2.1 “Actual Award” means as to any Performance Period, the actual award (if any)
payable to a Participant for the Performance Period.

          2.2 “Affiliate” means any corporation or other entity (including, but not limited to,
partnerships and joint ventures) controlled by, controlling of, or under common control with, the
Company where “control” means the right to elect or appoint at least 50% of the directors,
managing members, general partners, trustees or entities exercising similar powers with respect to
the Company or the applicable entity whether by beneficial ownership of securities or other
interests, by proxy or agreement, or both.

          2.3 “Award Agreement” means any written agreement, contract or other instrument or
document evidencing an Actual Award and/or a Target Award, including through electronic medium.

          2.4 “Board” means the Board of Directors of the Company.

          2.5 “Bonus Pool” means the pool of funds available for distribution to Participants.
Subject to the terms of the Plan, the Committee establishes the Bonus Pool for each Performance
Period.

          2.6 “Committee” means the committee appointed by the Board (pursuant to Section 5.1)
to administer the Plan. Until otherwise determined by the Board, (a) the Company’s Compensation
Committee of the Board shall constitute the Committee, and (b) for administrative
convenience, the independent, non-employee members of the Board also may act as the Committee
from time to time.

 

 

          2.7 “Company” means USA Mobility, Inc., a Delaware corporation, or any successor
thereto.

          2.8 “Disability” means a permanent and total disability determined in accordance with
uniform and nondiscriminatory standards or policies adopted by the Committee from time to time.

          2.9 “Employee” means any key employee of the Company or of an Affiliate, whether such
individual is so employed at the time the Plan is adopted or becomes so employed subsequent to the
adoption of the Plan.

          2.10 “Participant” means as to any Performance Period, an Employee who has been
selected by the Committee for participation in the Plan for that Performance Period.

          2.11 “Performance Period” means the period of time for the measurement of the
performance criteria that must be met to receive an Actual Award, as determined by the Committee in
its sole discretion. A Performance Period may be divided into one or more shorter periods if, for
example, but not by way of limitation, the Committee desires to measure some performance criteria
over 12 months and other criteria over 3 months.

          2.12 “Plan” means the USA Mobility, Inc. Long Term Cash Incentive Plan, as set forth
in this instrument and as hereafter amended from time to time.

          2.13 “Target Award” means the target award, at 100% performance achievement, payable
under the Plan to a Participant for the Performance Period, as determined by the Committee in
accordance with Section 3.2.

          2.14 “Termination of Service” means a cessation of the employee-employer relationship
between an Employee and the Company or an Affiliate for any reason, including, but not by way of
limitation, a termination by resignation, discharge, death, Disability, retirement, or the
disaffiliation of an Affiliate, but excluding any such termination where there is a simultaneous
reemployment by the Company or an Affiliate.

SECTION 3

SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS

          3.1 Selection of Participants. The Committee, in its sole discretion, shall select
the Employees who shall be Participants for any Performance Period. Participation in the Plan is
in the sole discretion of the Committee, on a Performance Period by Performance Period basis.
Accordingly, an Employee who is a Participant for a given Performance Period in no way is
guaranteed or assured of being selected for participation in any subsequent Performance Period
or Periods.

-2-

 

          3.2 Determination of Target Awards. The Committee, in its sole discretion, shall
establish a Target Award for each Participant.

          3.3 Bonus Pool. Each Performance Period, the Committee, in its sole discretion, shall
establish a Bonus Pool. Actual Awards shall be paid from the Bonus Pool.

          3.4 Award Agreements. Actual Awards and Target Awards granted pursuant to the Plan
may be evidenced by an Award Agreement. Award Agreements may be amended by the Committee with the
consent of the germane Participant from time to time and need not contain uniform provisions.

SECTION 4

PAYMENT OF AWARDS

          4.1 Right to Receive Payment. Each Actual Award shall be paid solely from the general
assets of the Company. Nothing in this Plan shall be construed to create a trust or to establish
or evidence any Participant’s claim of any right other than as an unsecured general creditor having
the status of an employee of the Company or an Affiliate thereof with respect to any payment to
which he or she may be entitled.

          4.2 Timing of Payment. Payment of each Actual Award shall be made on or after the 3rd
business day after the Company’s annual audit for the performance year has been completed and the
annual 10-K report has been filed with the SEC, but in no event later than December 31 of the
following performance year.

          4.3 Form of Payment. Each Actual Award shall be paid in cash (or its equivalent) in a
single lump sum.

SECTION 5

ADMINISTRATION

          5.1 Committee is the Administrator. The Plan shall be administered by the Committee.
The Committee shall consist of not less than two (2) members of the Board and no member of the
Committee shall be a Participant. The members of the Committee shall be appointed from time to
time by, and serve at the pleasure of, the Board.

          5.2 Committee Authority. It shall be the duty of the Committee to administer the Plan
in accordance with the Plan’s provisions. The Committee shall have all powers and discretion
necessary or appropriate to administer the Plan and to control its operation, including, but not
limited to, the power to (a) determine which Employees shall be granted awards, (b) prescribe the
terms and conditions of awards, (c) interpret the Plan and the awards, (d) adopt such procedures
and subplans
as are necessary or appropriate to permit participation in the Plan by Employees who are
foreign nationals or employed outside of the United States, (e) adopt rules or principles for the
administration, interpretation and application of the Plan as are consistent therewith, and (f)
interpret, amend or revoke any such rules or principles.

-3-

 

          5.3 Decisions Binding. All determinations and decisions made by the Committee, the
Board, and any delegate of the Committee pursuant to the provisions of the Plan shall be final,
conclusive, and binding on all persons, and shall be given the maximum deference permitted by law.

          5.4 Delegation by the Committee. The Committee, in its sole discretion and on such
terms and conditions as it may provide, may delegate all or part of its authority and powers under
the Plan to one or more directors and/or officers of the Company.

SECTION 6

GENERAL PROVISIONS

          6.1 Tax Withholding. The Company shall withhold all applicable taxes from any Actual
Award, including any federal, state and local taxes (including, but not limited to, the
Participant’s FICA and SDI obligations).

          6.2 No Effect on Employment or Service. Nothing in the Plan shall interfere with or
limit in any way the right of the Company to terminate any Participant’s employment or service at
any time, with or without cause. For purposes of the Plan, transfer of employment of a Participant
between the Company and any one of its Affiliates (or between Affiliates) shall not be deemed a
Termination of Service. Employment with the Company and its Affiliates is on an at-will basis
only. The Company expressly reserves the right, which may be exercised at any time and without
regard to when during a Performance Period such exercise occurs, to terminate any individual’s
employment with or without cause, and to treat him or her without regard to the effect that such
treatment might have upon him or her as a Participant.

          6.3 Participation. No Employee shall have the right to be selected to receive an
award under this Plan, or, having been so selected, to be selected to receive a future award.

          6.4 Successors. All obligations of the Company under the Plan, with respect to awards
granted hereunder, shall be binding on any successor to the Company, whether the existence of such
successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of
all or substantially all of the business or assets of the Company.

          6.5 Beneficiary Designations. If permitted by the Committee, a Participant under the
Plan may name a beneficiary or beneficiaries to whom any vested but unpaid award shall be paid in
the event of the Participant’s death. Each such designation shall revoke all prior designations by
the Participant and shall be effective only if given in a form and manner acceptable to the
Committee. In the absence of any such designation, any vested benefits remaining unpaid at the
Participant’s death shall be paid to the Participant’s estate.

          6.6 Nontransferability of Awards. No award granted under the Plan may be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, by the
laws of descent and distribution, or to the limited extent provided in Section 6.5. All rights
with respect to an award granted to a Participant shall be available during his or her lifetime
only to the Participant.

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SECTION 7

AMENDMENT, TERMINATION AND DURATION

          7.1 Amendment, Suspension or Termination. The Board, in its sole discretion, may
amend or terminate the Plan, or any part thereof, at any time and for any reason. The amendment,
suspension or termination of the Plan shall not, without the consent of the Participant, alter or
impair any rights or obligations under any Award Agreement. No award may be granted during any
period of suspension or after termination of the Plan.

          7.2 Duration of the Plan. The Plan shall commence on the date specified herein, and
subject to Section 7.1 (regarding the Board’s right to amend or terminate the Plan), shall remain
in effect thereafter.

SECTION 8

LEGAL CONSTRUCTION

          8.1 Gender and Number. Except where otherwise indicated by the context, any masculine
term used herein also shall include the feminine; the plural shall include the singular and the
singular shall include the plural.

          8.2 Severability. In the event any provision of the Plan shall be held illegal or
invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the
Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not
been included.

          8.3 Requirements of Law. The granting of awards under the Plan shall be subject to
all applicable laws, rules and regulations, and to such approvals by any governmental agencies or
national securities exchanges as may be required.

          8.4 Governing Law. The Plan and all awards shall be construed in accordance with and
governed by the laws of the State of Delaware, but without regard to its conflict of law
provisions.

          8.5 Captions. Captions are provided herein for convenience only, and shall not serve
as a basis for interpretation or construction of the Plan.

-5-exv10w21

 

Exhibit 10.21

USA MOBILITY, INC.

SEVERANCE PAY PLAN AND

SUMMARY PLAN DESCRIPTION

(For certain C-level, not including CEO)

Effective as of April 13, 2007

Amended as of October 30, 2007

 

 

USA MOBILITY, INC.

SEVERANCE PAY PLAN AND

SUMMARY PLAN DESCRIPTION

ARTICLE I

BACKGROUND, PURPOSE AND TERM OF PLAN

     Section 1.01 Background. USA Mobility, Inc. established and maintains the USA
Mobility, Inc. Severance Pay Plan (the “Plan”), effective as of April 13, 2007, for the purpose of
providing severance payments on a discretionary basis to certain Employees who are terminated
involuntarily, for reasons other than fault of their own, under the specific circumstances defined
herein. The Plan constitutes a formal Employee Welfare Benefit Plan under the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”). The Plan was amended October 30, 2007 for
compliance with Section 409A of the Internal Revenue Code of 1986.

THE PLAN, EFFECTIVE AS OF APRIL 13, 2007, AND AS AMENDED OCTOBER 30, 2007, SHALL SUPERSEDE ANY
POLICY, PLAN OR PROGRAM, IF ANY, HERETOFORE MAINTAINED OR IN EFFECT UNDER WHICH USA MOBILITY, INC.,
OR ANY OF ITS AFFILIATES, HAS EVER MADE PAYMENTS OF SEVERANCE PRIOR TO THE EFFECTIVE DATE HEREOF,
OTHER THAN ANY SEVERANCE PLAN OR PROGRAM OF A COMPANY ACQUIRED BY USA MOBILITY, INC., IF USA
MOBILITY, INC. HAS EXPRESSLY AGREED IN WRITING TO ASSUME THE OBLIGATIONS OF SUCH PLAN OR PROGRAM,
AND ANY EMPLOYMENT AGREEMENT APPROVED IN WRITING BY THE BOARD OF DIRECTORS OF USA MOBILITY, INC.

     The benefits provided by the Plan are set forth below, as are the eligibility criteria, the
claims review procedure and other matters. This document is the Plan and the Summary Plan
Description.

     Section 1.02 Purpose of the Plan. The Plan, as set forth herein, is intended to
alleviate in part or in full financial hardships which may be experienced by certain of those
Employees of USA Mobility whose employment is terminated involuntarily and not for just cause,
under circumstances entitling them to severance pay under the terms of the Plan. In essence,
benefits under the Plan are intended to be supplemental unemployment benefits which will assist the
Employee during a limited transition period or until other employment is found. The amount of the
benefit to be provided is to be based on the Employee’s compensation and years of service with USA
Mobility, Inc. The Plan is not intended to be included in the definitions of “employee pension
benefit plan” and “pension plan” set forth under Section 3(2) of ERISA, or as a “severance pay
arrangement” within the meaning of Section 3(2)(B)(i) of ERISA. This Plan is intended to meet the
descriptive requirements of a plan constituting a “severance pay plan” within the meaning of
regulations published by the Secretary of Labor at Title 29, Code of Federal Regulations, §
2510.3-2(b). Accordingly, the benefits paid by the Plan are not deferred compensation and no
Employee shall have a vested right to such benefits.

     Section 1.03 Term of the Plan. The Plan will continue until such time as the Board
of Directors, acting in its sole discretion, elects to modify, supersede or terminate the Plan.

 

 

ARTICLE II

DEFINITIONS

     Section 2.01 “Administrator” shall mean the Senior Vice-President of Human Resources,
designated pursuant to Article VI of the Plan to administer the Plan in accordance with its terms.

     Section 2.02 “Benefit” shall mean the amount that a Participant is entitled to
receive pursuant to Section 4.01 of the Plan.

     Section 2.03 “Board of Directors” shall mean the Board of Directors of USA Mobility,
Inc. and any successor thereto.

     Section 2.04 “Company” shall mean USA Mobility, Inc.

     Section 2.05 “Compensation” shall mean the base salary or wages paid or accrued to or
on behalf of the Participant during the period to which reference is made. “Compensation” shall
not include overtime payments, bonuses, commissions, Company contributions to Social Security,
benefits payable under, or Company contributions to, any retirement or other plan of deferred
compensation, or the value of any fringe benefits provided by the Company.

     Section 2.06 “Employee” shall mean any person deemed by the Company to be a regular
full-time employee or a regular part-time employee, as defined in the USA Mobility Employee
Handbook. Other part-time employees, seasonal employees, individuals employed by the Company in a
casual or temporary capacity (i.e., those hired for a specific job of limited duration) and
individuals characterized as “leased employees,” within the meaning of Section 414 of the Internal
Revenue Code of 1986, as amended, or persons characterized by the Company as “independent
contractors” or individuals as to whom the Company does not withhold income taxes, no matter how
characterized by the Internal Revenue Service, other governmental agency or a court, shall not be
considered “Employees” for the purposes of the Plan. Any change of characterization of an
individual shall take effect on the actual date of such change without regard to any retroactive
recharacterization.

     Section 2.07 “Employment Commencement Date” shall mean the first day on which an
individual became an Employee (as hereinabove defined). Notwithstanding the foregoing, if any
interruption of employment occurred after the date described in the preceding sentence, then the
Employment Commencement Date shall be the first day on which the individual became an Employee
after the most recent such interruption of the employment relationship between the Employee and the
Company, unless such interruption lasts less than one year in which case the original employment
date will be modified by the period of the interruption and the resulting date shall be the
Employment Commencement Date for the purposes of this plan.

Special rule for Employees who have received a prior Severance Benefit: For purposes of this Plan,
the Employment Commencement Date of an Employee who was rehired following a prior period of
employment, and who received a severance benefit in connection with that prior period, shall be the
date of rehire, and all service performed during that prior period of employment shall be
disregarded. In the event, however, that such an Employee was rehired less than one year following
the termination
of his prior period of employment, and repays the full amount of the severance benefit previously
received, then the Employment Commencement Date shall be modified to reflect the aggregation of
service during the prior period plus service following the rehire.

 

 

     Section 2.08 “Employment Termination Date” shall mean the date on which the
employment relationship between the Employee and the Company is involuntarily terminated. An
employment relationship shall not be considered to be involuntarily terminated if the Company
terminates the employment of the Employee for Just Cause. An employment relationship shall be
considered to be involuntarily terminated for the purposes of this Plan if the termination is for
one or more of the reasons identified in Section 3.01 hereof. Notwithstanding anything herein to
the contrary, an Employee will not be considered to have incurred an involuntarily termination for
the purposes of this Plan if his or her employment is discontinued due to a voluntary resignation
(with or without notice), retirement, death, the expiration of a leave of absence, a physical or
mental condition entitling the Employee to benefits under any sick pay or disability income policy
or program sponsored by the Company or worker’s compensation, a transfer to an affiliated business,
the sale of any portion of the Company, either through a sale or exchange of stock or assets, or
the outsourcing of a division, department, business unit or function where the Employee has been
offered comparable employment with the Company or the new employer, as determined by the
Administrator.

     Section 2.09 “ERISA” shall mean the Employee Retirement Income Security Act of 1974,
as amended.

     Section 2.10 “Just Cause” shall be any reason for dismissing an individual from
employment with the Company which the Administrator determines would constitute grounds for denying
payment of benefits under this Plan after dismissal. Just Cause shall include, but shall not be
limited to dismissal due to breach of trust, unacceptable behavior, excessive absenteeism or
tardiness, unsatisfactory work performance caused by willful misconduct, or insubordination.
Disputes with respect to whether “just cause” exists shall be resolved in accordance with Article
IX.

     Section 2.11 “Named Fiduciary” shall mean the Administrator, and the Named Appeals
Fiduciary within the meaning of Section 9.03. Each Named Fiduciary shall have only those
particular powers, duties, responsibilities and obligations as are specifically given him/her/it
under this Plan. Any Named Fiduciary, if so appointed, may perform in more than one fiduciary
capacity, and may also perform in a non-fiduciary capacity.

     Section 2.12 “Participant” shall mean any Terminated Employee who is entitled to a
Benefit.

     Section 2.13 “Plan” shall mean the USA Mobility, Inc. Severance Pay Plan, as set
forth herein, and as the same may from time to time be amended.

     Section 2.14 “Plan Year” shall mean the period commencing on each January 1 during
which this Plan is in effect and ending on the subsequent December 31.

     Section 2.15 “Terminated Employee” shall mean an Employee who has experienced an
Employment Termination Date.

     Section 2.16 “Year of Service” shall mean the twelve-month period beginning on the
Employee’s Employment Commencement Date (as defined in Section 2.07 hereof) and on each anniversary
thereof. Fractional Years of Service shall be disregarded for all purposes under this Plan;
provided, however, that if the next anniversary of a Terminated Employee would occur within the
first 30 days following his Employment Termination Date, then the Terminated Employee shall be
considered to have completed a full Year of Service after his most recent anniversary.

 

 

ARTICLE III

PARTICIPATION AND ELIGIBILITY FOR BENEFITS

     Section 3.01 Discretionary Grant of Severance Pay. In its sole discretion, the
Company may grant benefits under this Plan to any Terminated Employee who the Administrator has
determined to have experienced an involuntary termination of employment resulting in an Employment
Termination Date as defined in this Plan. In addition, one or more of the following tests must be
met:

     (a) The Terminated Employee’s position with the Company was eliminated;

     (b) The Terminated Employee was notified in writing by the Company, on or prior
to his or her Employment Termination Date, that his or her job responsibilities have
been materially changed, and that the Company has determined that he or she is not
qualified to perform the responsibilities associated with the job subsequent to such
change;

     (c) The Terminated Employee was notified by the Company, on or prior to his or
her Employment Termination Date, that his or her job performance has become
unsatisfactory as a result of a cause other than Just Cause; or

     (d) The Terminated Employee’s employment was terminated as a result of a
reorganization of job functions.

     Section 3.02 Release of Claims. Notwithstanding anything in this Plan to the
contrary, no Benefit shall be due or paid under this Plan to any Terminated Employee unless
the Terminated Employee executes (and does not rescind) a written employment termination
agreement incorporating a release of any and all employment related claims against the
Company, its affiliates, and their directors, officers, employees, and agents. The required
employment termination agreement shall be in a form prescribed by the Company and its counsel.

     Section 3.03 Noncompetition. Notwithstanding anything in this Plan to the
contrary, no Benefit shall be due or paid under this Plan to any Terminated Employee unless the
Terminated Employee agrees in writing to search for and return to the Company all confidential
and/or proprietary information, and further agrees that for a period equal to the number of weeks
that the Benefit under the Plan is paid, (i) not to be employed by, or otherwise engage or be
interested in, any business which is competitive with any business of the Company or of any of its
subsidiaries in which the Terminated Employee was engaged during his employment prior to his
termination, whether directly or indirectly or (ii) to solicit Company employees for employment;
provided, however, that the Company, in its sole discretion, may determine that the noncompetition
and no-solicitation requirements are neither relevant nor applicable in the case of any particular
Terminated Employee. The required noncompetition, no-solicitation, confidential/proprietary
information agreement shall be in a form prescribed by the Company and its counsel.

-5-

 

     Section 3.04 Employee Cooperation. As further conditions to entitlement to a
Benefit, each Participant must: (i) cooperate fully with the Company to complete the transition of
matters with which
the Participant is familiar or responsible to other Employees and to make himself or herself
reasonably available to answer questions or assist in matters which may require attention after the
Participant’s Employment Termination Date; (ii) if requested to do so by the Administrator, notify
the Company of the Participant’s receipt of unemployment compensation benefits and of the weekly
amount of same; and (iii) execute and deliver to the Company such form(s) as the Administrator, in
his or her sole discretion, shall decide.

     Section 3.05 Repayment of Benefits. If the Administrator, in his or her sole
discretion, determines that the Participant has violated one or more of the above conditions to
entitlement to a Benefit, the Administrator may discontinue the payment of the Participant’s
Benefit and may require the Participant to repay any payment of the Benefit already received under
the Plan. If the Administrator elects to have the Participant repay all of the Benefit received
under the Plan, such payments shall be repaid within 30 days of the date of the written notice.
Any remedy under this Section 3.05. shall be in addition to, and not in place of, any other remedy
the Company may have, at law or otherwise.

-6-

 

ARTICLE IV

CALCULATION OF BENEFIT

     Section 4.01 Amount of Benefit. The Benefit shall be determined by Position within
the Company and each full Year of Service as specified in the following chart:

SEVERANCE BENEFITS CHART

	 	 	 
	Chief Operating Officer (the “COO”),
the General Counsel, Chief Financial
Officer (the “CFO”), and other
C-level employees, if any, other
than the Chief Executive Officer*

	 	Minimum of six (6) months of
Compensation, plus an additional two
(2) weeks of Compensation for each
Year of Service, up to a maximum of
twelve (12) months of
Compensation.1

 

			
	*	 	A Participant in one of these positions will also receive a fraction of his or her Targeted
Bonus for the fiscal year in which the Participant is terminated determined by multiplying his or
her Targeted Bonus under any Company bonus plan in which the individual participates, by a
fraction, the numerator of which the total number of full weeks worked in the year in which the
Employee is terminated and the denominator of which is 52.

     All Compensation shall be reduced by all sums owed by the Participant to the Company.

     Section 4.02 Reductions. The Benefit payable under Section 4.01 shall be reduced by
any and all payments made to the Participant under the Worker Adjustment and Retraining
Notification Act, 29 United States Code Section 2101, et seq.

     Section 4.03 COBRA. The Benefit shall also include the following: Participants who
elect health care continuation benefits (COBRA) under ERISA will be required to pay only the cost
of the employee portion of health care expenses for the number of weeks of compensation (not to
exceed 26), derived from the participant’s Position and full Years of Service, which is the Benefit
payable under Section 4.01. After the termination of that time period, the Participant will be
responsible for the entire COBRA payment.

     Section 4.04 Effect on Other Benefits. There shall not be drawn from the continued
provision by the Company of any Benefit under this Plan any implication of continued employment
with the Company, of a modification of the employment at will relationship between the Company and
a Participant, or of continued right to accrual of retirement plan benefits. Nor shall the
Terminated Employee accrue vacation days, paid holidays, paid sick days or other similar benefits
normally
associated with employment for any part of the period during which the Benefit is payable
under this Plan. The Benefit under this Plan shall not be payable if the Participant receives a
similar benefit (including a severance payment of any type) under any other plan, policy, program,
employment agreement or arrangement.

 

			
	1	 	Note that “Compensation” does not include
overtime payments, bonuses, commissions, Company contributions to Social
security, benefits payable under, or Company contributions to, any retirement
or other plan of deferred compensation, or the value of any fringe benefits
provided by the Company. See Section 2.05 of Article II.

-7-

 

ARTICLE V

METHOD AND DURATION OF BENEFIT PAYMENTS

     Section 5.01 Method of Payment. The Benefit to which a Participant is entitled, as
determined pursuant to Article IV, shall be paid in accordance with normal payroll practices, or,
at the sole discretion of the Company, the Benefit to the extent such amount is not subject to
Internal Revenue Code (the “Code”) section 409A (i.e., the Benefit does not exceed the lesser of
(i) two times the Participant’s Compensation, or (ii) two times the Code section 401(a)(17) limit,
which is $225,000 for 2007) may be paid in a single, lump sum payment. To the extent a
Participant’s benefit is subject to Code section 409A and the Participant is a Key Employee, the
portion of the Participant’s benefit that exceeds the Code section 401(a)(17) limit may not be
paid for six months following the Participant’s Employment Termination Date, however, upon
expiration of such six month period the remainder of the Participant’s Benefit shall be paid in a
lump sum. In no event will interest be credited on the unpaid balance for which a Participant may
become eligible. Payment shall be made by mailing to the last address provided by the Participant
to the Company or may be made via Electronic Funds Transfer if requested by the Participant, at
the sole discretion of the Company. In general, the initial payments shall be made as promptly as
practicable after the Participant’s Employment Termination Date, the execution of the Release
required under Section 3.02, the expiration of the required revocation period specified in the
Release, and the execution of the noncompetition agreement and other undertakings as required
under Article III within 90 days. All payments shall be completed no later than 24 months from
the Participant’s Employment Termination Date. All payments of severance pay are subject to
applicable federal, state and local taxes. In the event of the Participant’s death following his
Employment Termination Date but prior to the completion of all payments being made, the remaining
payments shall be paid to the Participant’s beneficiary designated on a form supplied by the
Administrator or, if none, the Participant’s estate.

Notwithstanding anything in this Plan to the contrary, if the Participant is a key employee of a
publicly traded corporation under section 409A at the time of his separation from service and if
payment of any amount under this Plan is required to be delayed for a period of six months after
separation from service pursuant to section 409A, payment of such amount shall be delayed as
required by section 409A, and the accumulated postponed amount shall be paid in a lump sum payment
within 10 days after the end of the six-month period. If the Participant dies during the
postponement period prior to the payment of postponed amount, the amounts withheld on account of
section 409A shall be paid to Participant’s estate within 60 days after the date of the
Participant’s death. A “key employee” shall mean an employee who, at any time during the 12-month
period ending on the identification date, is a “specified employee” under section 409A of the
Internal Revenue Code, as determined by the Board. The determination of key employees, including
the number and identity of persons considered key employees and the identification date, shall be
made by the Board in accordance with the provisions of Code sections 416(i) and 409A and the
regulations issued thereunder.

     Section 5.02 Other Benefits. A Participant may be eligible to receive such other
Benefits as the Administrator shall determine, such as internal or external outplacement
counseling.

-8-

 

     Section 5.03 Termination of Eligibility for Benefits. A Participant shall cease to
participate in the Plan, and all Benefit payments shall cease upon the occurrence of the earliest
of:

(a) Subject to Section 7.01, termination or modification of the Plan;

(b) Completion of payment to the Participant of the Benefit for which
the Participant is eligible under Article IV;

(c) Death of the Participant prior to his or her Employment
Termination Date;

(d) Termination by the Administrator of his/her right to be a
Participant upon discovery of the occurrence of Just Cause, whether or
not such discovery occurs before the Employment Termination Date.

(e) Employment in a job in which the Participant earns at least fifty
percent (50%) of his/her Compensation (determined on an annualized
basis) as of his/her Employment Termination Date;

(f) Reemployment with the Company or any of its affiliates at any time
prior to the date when the Benefit would have been fully paid if paid
in accordance with normal payroll practices, rather than a lump sum;
or

(g) Violation of one or more of the conditions for a Benefit set forth
in Article III.

     In the event that a Participant’s eligibility for Benefit payments terminates pursuant to
subsection (f), he or she shall not be entitled to the portion of the Benefit that is equal to
amounts that would otherwise have been payable following the date of reemployment, if the
Participant had not been reemployed and the Benefit had been paid in accordance with normal payroll
practices. The Plan shall have the right to recover any mistaken payment, overpayment, or any
payment that is made to an individual who is not eligible for that payment. Further,
notwithstanding anything herein to the contrary, the Company shall have the right to cease all
Benefit payments and to recover payments previously made to the Participant should the Participant
at any time breach the Participant’s undertakings under the terms of the Plan or the Release the
Participant executed to obtain the Benefits under the Plan. The Plan may (1) withhold or offset
future benefit payments; (2) sue to recover these amounts and the attorneys’ fees it incurs in
connection with this recovery; or (3) use any other lawful remedy to recoup any such amounts.

     Notwithstanding anything herein to the contrary, the Company shall have the right to cease all
Benefit payments and to recover payments previously made to the Participant should the Participant
at any time breach the Participant’s undertakings under the terms of the Plan or the Release the
Participant executed to obtain the Benefits under the Plan.

-9-

 

ARTICLE VI

THE ADMINISTRATOR

     Section 6.01 Appointment. The Administrator shall be the Senior Vice President of
Human Resources.

     Section 6.02 Tenure. The Administrator shall serve at the pleasure of the Board of
Directors. The Administrator may resign at any time upon 10 days’ written notice, and the
Administrator may be removed from the position of Administrator, with or without cause, at any time
by the Board of Directors. In the event of the resignation, removal, or other inability to serve
of the Administrator, the Board of Directors shall appoint an individual to serve as Administrator.

     Section 6.03 Authority and Duties. Subject to the discretion of the Company, as
provided in Sections 3.01 and 8.03, it shall be the duty of the Administrator, on the basis of
information supplied to him or her by the Company, to determine the eligibility of each Terminated
Employee to participate in the Plan and to determine whether and when a Benefit shall be paid in
the event of a dispute or controversy. Benefits under the Plan will be paid only if the
Administrator decides in his or her discretion that the applicant is entitled to them. The
Administrator shall have the full power, authority and discretion to construe, interpret and
administer the Plan, to correct deficiencies therein, to make factual determinations and to supply
omissions. All decisions, actions and interpretations of the Administrator shall be final, binding
and conclusive upon the parties, subject only to determinations by the Named Appeals Fiduciary with
respect to denied claims for Benefits.

     Section 6.04 Compensation of the Administrator. The Administrator shall receive no
compensation for his or her services as such. However, all reasonable expenses of the
Administrator shall be paid or reimbursed by the Company upon proper documentation. The
Administrator shall be indemnified by the Company against personal liability for actions taken in
good faith in the discharge of duties as Administrator.

     Section 6.05 Records, Reporting and Disclosure. The Company’s Human Resources
Department shall keep a copy of all individual and group records relating to Participants and
former Participants and all other records necessary for the proper operation of the Plan. Such
records shall be made available to the Administrator, the Company and to each Participant for
examination during business hours except that a Participant shall examine only such records as
pertain exclusively to the examining Participant and to the Plan. The Administrator shall prepare
and shall file as required by law or regulation all reports, forms, documents and other items
required by ERISA, the Internal Revenue Code, and every other relevant statute, each as amended,
and all regulations thereunder (except that the Company, as payor of the Benefits, shall prepare
and distribute to the proper recipients all forms relating to withholding of income or wage taxes,
Social Security taxes, and other amounts which may be similarly reportable).

-10-

 

ARTICLE VII

AMENDMENT AND TERMINATION

     Section 7.01 Amendment, Suspension and Termination. The Board of Directors retains
the right, at any time and from time to time, to amend, suspend or terminate the Plan in whole or
in part, for any reason, and without either the consent of or the prior notification to any
Participant. No such amendment shall give the Company the right to recover any amount paid to a
Participant prior to the date of such amendment. However, any such amendment may cause the
cessation and discontinuance of payments of Benefits to any person or persons under the Plan. The
Board of Directors shall have the right to delegate its authority and power hereunder, or any
portion thereof, to any committee of the Board of Directors, and the right to rescind any such
delegation in whole or in part.

-11-

 

ARTICLE VIII

DUTIES OF THE COMPANY AND THE ADMINISTRATOR

     Section 8.01 Records. The Company shall supply to the Administrator all records and
information necessary to the performance of the Administrator’s duties.

     Section 8.02 Payment. The Company shall make payments from its general assets to
Participants in accordance with the terms of the Plan, as directed by the Administrator.

     Section 8.03 Discretion. Any decisions, actions or interpretations to be made under
the Plan by the Company or the Administrator, acting on behalf of either, shall be made in each of
their respective sole discretion, not in any fiduciary capacity and need not be uniformly applied
to similarly situated individuals, and such decisions, actions or interpretations shall be final,
binding and conclusive upon all parties.

-12-

 

ARTICLE IX

CLAIMS PROCEDURES

     Section 9.01 Application for Benefits. Each Terminated Employee believing
himself/herself eligible for benefits under this Plan may apply for such benefits by completing and
filing (and not revoking) with the Administrator a written employment termination agreement as
defined in Section 3.02. Before the date on which benefit payments commence, a Terminated Employee
may be required to provide such information as the Administrator deems relevant and appropriate to
the application for Benefits.

     Section 9.02 Appeals of Denied Claims for Benefits. In the event that any claim for
benefits is denied in whole or in part, the Terminated Employee whose claim has been so denied
shall be notified of such denial in writing by the Administrator. The notice advising of the
denial shall specify the reason or reasons for denial, make specific reference to pertinent Plan
provisions, describe any additional material or information necessary for the claimant to perfect
the claim (explaining why such material or information is needed), and shall advise the Participant
of the procedure for the appeal of such denial. All appeals shall be made by the following
procedure:

     (a) The Terminated Employee whose claim has been denied shall file with the
Administrator a notice of desire to appeal the denial. Such notice shall be filed within
sixty (60) days of notification by the Administrator of Claim Denial, shall be made in
writing, and shall set forth all of the facts upon which the appeal is based. Appeals not
timely filed shall be barred.

     (b) The Named Appeals Fiduciary shall consider the merits of the claimant’s written
and oral presentations, the merits of any facts or evidence in support of the denial of
benefits, and such other facts and circumstances as the Named Appeals Fiduciary shall deem
relevant. If the claimant elects not to make an oral presentation, such election shall not
be deemed adverse to his/her interest, and the Named Appeals Fiduciary shall proceed as set
forth below as though an oral presentation of the contents of the claimant’s written
presentation had been made.

     (c) The Named Appeals Fiduciary shall render a determination upon the appealed claim
which determination shall be accompanied by a written statement as to the reasons therefor.
The determination so rendered shall be binding upon all parties.

     Section 9.03 Appointment of the Named Appeals Fiduciary. The Named Appeals Fiduciary
shall be the Chief Financial Officer of the Company or any other person named by the Board. The
Named Appeals Fiduciary may at any time be removed by the Board. Any such removal may be with or
without cause and shall be effective on the date stated in the notice of removal. The Named
Appeals Fiduciary shall be a “Named Fiduciary” within the meaning of ERISA, and unless appointed to
other fiduciary responsibilities, shall have no authority, responsibility, or liability with
respect to any matter other than the proper discharge of the functions of the Named Appeals
Fiduciary as set forth herein. The Named Fiduciary shall have the full power, authority and
discretion in the performance of his or duties to construe, interpret and administer the Plan, to
correct deficiencies therein, to make factual determinations, and to supply omissions.

-13-

 

ARTICLE X

MISCELLANEOUS

     Section 10.01 Nonalienation of Benefits. None of the payments, benefits or rights of
any Participant shall be subject to any claim of any creditor, and, in particular, to the fullest
extent permitted by law, all such payments, benefits and rights shall be free from attachment,
garnishment, trustee’s process, or any other legal or equitable process available to any creditor
of such Participant. No Participant shall have the right to alienate, anticipate, commute, pledge,
encumber or assign any of the benefits or payments which he/she may expect to receive, contingently
or otherwise, under this Plan.

     Section 10.02 No Contract of Employment. Neither the establishment of the Plan, nor
any modification thereof, nor the creation of any fund, trust or account, nor the payment of any
benefits shall be construed as giving any Participant or Employee, or any person whosoever, the
right to be retained in the service of the Employer, and all Participants and other Employees shall
remain subject to discharge to the same extent as if the Plan had never been adopted. Nothing in
this Plan is intended to interfere with the employment at will relationship enjoyed by the Company
and its employees.

     Section 10.03 Severability of Provisions. If any provision of this Plan shall be
held invalid or unenforceable, such invalidity or unenforceability shall not affect any other
provisions hereof, and this Plan shall be construed and enforced as if such provisions had not been
included.

     Section 10.04 Heirs, Assigns, and Personal Representatives. This Plan shall be
binding upon the heirs, executors, administrators, successors and assigns of the parties, including
each Participant, present and future (except that no successor to the Employer shall be considered
a Plan sponsor unless that successor adopts this Plan).

     Section 10.05 Headings and Captions. The headings and captions herein are provided
for reference and convenience only, shall not be considered part of the Plan, and shall not be
employed in the construction of the Plan.

     Section 10.06 Gender and Number. Except where otherwise clearly indicated by
context, the masculine and the neuter shall include the feminine and the neuter, the singular shall
include the plural, and vice-versa.

     Section 10.07 Unfunded Plan. The Plan shall not be funded. No Participant shall
have any right to, or interest in, any assets of the Company which may be applied by the Company to
the payment of Benefits.

     Section 10.08 Payments to Incompetent Persons, Etc. Any benefit payable to or for
the benefit of a minor, an incompetent person or other person incapable of issuing a receipt
therefor shall be deemed paid when paid to such person’s guardian or to the party providing or
reasonably appearing to provide for the care of such person, and such payment shall fully discharge
the Company, the Administrator and all other parties with respect thereto.

-14-

 

     Section 10.09 Appendices. From time to time, the Company may elect to append
provisions of limited duration to this Plan to govern what the Company determines to be special
circumstances governing a substantial number of Employees. Each such Appendix, during the period
stipulated therein, shall be deemed a part of this Plan. Except as otherwise stated in any such
Appendix applicable to any Employee or Terminated Employee, the rights of such Employee or
Terminated Employee as stated in such Appendix shall supersede the rights provided under this Plan,
the benefits provided under such Appendix shall be in lieu of comparable or stipulated benefits
provided under this Plan, and there shall be no duplication of benefits.

     Section 10.10 Lost Payees. A benefit shall be deemed forfeited if the Administrator
is unable to locate a Participant to whom a Benefit is due. Such Benefit shall be reinstated if
application is made by the Participant for the forfeited Benefit while this Plan is in operation.

     Section 10.11 Controlling Law. This Plan shall be construed and enforced according
to Federal law.

-15-

 

ARTICLE XI

STATEMENT OF ERISA RIGHTS

As a Participant in the Plan, you are entitled to certain rights and protections under ERISA.
ERISA provides that all Plan Participants will be entitled to:

(1) Examine, without charge, at the office of the Administrator and at other specified locations
such as worksites and union halls, all documents governing the Plan, including insurance contracts
and collective bargaining agreements, and a copy of the latest annual report (Form 5500 Series)
filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of
the Pension and Welfare Benefit Administration.

(2) Obtain, upon written request to the Administrator, copies of documents governing the operation
of the Plan, including insurance contracts and collective bargaining agreements, and copies of the
latest annual report (Form 5500 Series) and updated summary plan description. The Administrator
may make a reasonable charge for the copies.

(3) Receive a summary of the Plan’s annual financial report. The Administrator is required by law
to furnish each participant with a copy of this summary annual report.

In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are
responsible for the operation of the employee benefit plan. The people who operate the Plan,
called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and
other participants and beneficiaries. No one, including your employer, your union, or any other
person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining
a welfare benefit or exercising your rights under ERISA.

If your claim for a welfare benefit is denied or ignored, in whole or in part, you have a right to
know why this was done, to obtain copies of documents relating to the decision without charge, and
to appeal any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you
request a copy of plan documents or the latest annual report from the Plan and do not receive them
within 30 days, you may file suit in Federal court. In such a case, the court may require the
Administrator to provide the materials and pay you up to $110 a day until you receive the
materials, unless the materials were not sent because of reasons beyond the control of the
Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part,
you may file suit in a state or federal court.

If it should happen that plan fiduciaries misuse the Plan’s money, or if you are discriminated
against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or
you may file suit in a Federal court. The court will decide who should pay court costs and legal
fees. If you are successful, the court may order the person you have sued to pay these costs and
fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds
your claim is frivolous.

If you have any questions about the Plan, you should contact the Administrator at the following
address:

Senior Vice-President of Human Resources

c/o USA Mobility, Inc.

6677 Richmond Highway

Alexandria, VA 22036

If questions arise about this statement or about your rights under ERISA, or if you need assistance
in obtaining documents from the Administrator, you should contact the nearest Area Office of the
Pension and Welfare Benefits Administration, U.S. Department of Labor, listed in your telephone
directory or the Division of Technical Assistance and Inquiries, Pension and Welfare Benefits
Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210.
You may also obtain certain publications about your rights and responsibilities under ERISA by
calling the publications hotline of the Pension and Welfare Benefits Administration.

-16-

 

ARTICLE XII

GENERAL INFORMATION

	 	 	 
	Plan Sponsor:
	 	USA Mobility, Inc.
	 
	 	 
	Employer Identification Number:
	 	54-1215634
	 
	 	 
	Plan Administrator:
	 	Senior Vice-President of Human Resources
	 
	 	USA Mobility, Inc.
	 
	 	6677 Richmond Highway
	 
	 	Alexandria, Virginia 22306
	 
	 	 
	Telephone:
	 	703-660-6677, x6109
	 
	 	 
	Plan Number:
	 	506
	 
	 	 
	Plan Year:
	 	The twelve month period ending each December 31
	 
	 	 
	Type of Plan:
	 	Welfare benefit - Severance Pay Plan
	 
	 	 
	Agent for Service of
Legal Process:
	 	Service of Legal Process may be made upon the Administrator at the above address.
	 
	 	 
	Type of Administration:
	 	The Plan is administered by the Senior Vice President of Human Resources of
	 
	 	the Company.
	 
	 	 
	Funding:
	 	Paid from general assets of the Company.

-17-

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