Document:

exv10w4

 

Exhibit 10.4

AMENDMENT NO. 1

          AMENDMENT NO. 1 (this “Amendment”), dated as of December 8, 2004, to
the credit agreement, dated as of November 16, 2004 (the “Credit Agreement”; capitalized
terms used herein and not defined herein shall have the meaning assigned to such terms in the
Credit Agreement), among Metrocall, Inc., a Delaware corporation and Arch Wireless Operating
Company, Inc., a Delaware corporation, as borrowers (together, “Borrowers”), UBS AG,
Stamford Brach, as administrative agent (the “Administrative Agent”) and the Required
Lenders.

W I T N E S S E T H:

          WHEREAS, Section 10.02(b) of the Credit Agreement permits the Credit
Agreement to be waived, amended, supplemented or modified from time to time with the
written consent of the Required Lenders;

          NOW, THEREFORE, in consideration of the foregoing, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree as follows:

          SECTION ONE Amendments.

          (a) Section 1.01 of the Credit Agreement shall be amended by adding
thereto the following: “First Amendment Effective Date” shall mean the Effective Date (as
such term is defined in Amendment No. 1 to this Agreement).

          (b) The text and heading of Section 5.14 shall be replaced in its entirety
with the following: “Authorization of Collateral Agent to Terminate Concentration Account.
On or after the First Amendment Effective Date, the Collateral Agent shall be authorized
to terminate the Concentration Account (which is entitled “Account Control Agreement”),
dated as of the Closing Date, among Metrocall, the Collateral Agent and UBS Financial
Services Inc. in accordance with the terms thereof; provided that (i) all securities in the
Concentration Account shall have been converted to cash such that at the time of such termination,
no asset other than cash shall be contained in the Concentration Account and (ii) upon
such termination, all of the cash in the Concentration Account shall be used to make prepayments
pursuant to Section 2.10(a).”

          (c) Section 8.01 shall be amended by: (i) deleting the reference to “5.14” in
clause (d) thereof, (ii) adding, in clause (g)(i) thereof, the word “United States” immediately
prior to the word “Code” and (iii) in the parenthetical phrase contained in Section 8.01(i),
deleting (1) the entire text of clause (y) appearing therein and (2) the reference to the character
“(x)” appearing therein.

 

 

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          SECTION TWO Conditions to Effectiveness. This Amendment shall become
effective as of the date (the “Effective Date”) when, and only when the Administrative Agent
shall have received counterparts of this Amendment executed by each Borrower, the Administrative
Agent and a number of Lenders sufficient to constitute the Required Lenders. The effectiveness
of this Amendment (other than Sections Five, Six and Seven hereof) is conditioned
upon the accuracy of the representations and warranties set forth in Section Three
hereof.

          SECTION THREE Representations and Warranties. In order to induce the
Required Lenders to enter into this Amendment, Borrowers, jointly and severally, represent
and warrant to each of the Lenders and the Administrative Agent that, before and after giving
effect to this Amendment, (a) no Default or Event of Default has occurred and is continuing,
(b) all of the representations and warranties in the Credit Agreement are true and complete in
all material respects on and as of the date hereof as if made on the date hereof (or, if any such
representation or warranty is expressly stated to have been made as of a specific date, as of
such specific date) and (c) each stockholder of Metrocall Public that shall have demanded appraisal
rights in respect of any of its shares of Metrocall Public has irrevocably withdrawn
such demand for appraisal rights in the manner required by applicable law for all of such
stockholder’s shares of Metrocall Public.

          SECTION FOUR Reference to and Effect on the Credit Agreement. On and
after the Effective Date, each reference in the Credit Agreement to “this Agreement,” “hereunder,”
“hereof” or words of like import referring the Credit Agreement, and each reference
in each Loan Document to “the Credit Agreement,” “thereunder,” “thereof” or words of like
import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement,
as amended by this Amendment. The Credit Agreement and each of the other Loan
Documents, as specifically amended by this Amendment, are and shall continue to be in full
force and effect and are hereby in all respects ratified and confirmed. The execution, delivery
and effectiveness of this Amendment shall not, except as expressly provided herein, operate
as a waiver of any right, power or remedy of any Lender or any Agent under any of the Loan
Documents, nor constitute a waiver of any provision of any of the Loan Documents.

          SECTION FIVE Costs and Expenses. Borrowers agree to pay all reasonable
costs and expenses of the Administrative Agent in connection with the preparation, execution
and delivery of this Amendment and the other instruments and documents to be delivered
hereunder, if any (including, without limitation, the reasonable fees and expenses of Cahill
Gordon & Reindel LLP, counsel to the Administrative Agent) in accordance with the terms of
Section 10.03(a)(i) of the Credit Agreement.

          SECTION SIX Execution in Counterparts. This Amendment may be executed
in any number of counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken together
shall constitute but one and the same agreement. Delivery of an executed counterpart of a

 

 

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signature page to this Amendment by telecopier shall be effective as delivery of a manually
executed counterpart of this Amendment.

          SECTION SEVEN Governing Law. This Amendment 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.

[Signature Pages Follow]

 

 

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	 	METROCALL, INC.

 	 
	 	By:  	/s/ George Moratis
 	 
	 	 	Name:  	George Moratis 	 
	 	 	Title:  	Treasurer 	 

	 	 	 	 	 
	 	ARCH WIRELESS OPERATING COMPANY, INC.

 	 
	 	By:  	/s/ George Moratis
 	 
	 	 	Name:  	George Moratis 	 
	 	 	Title:  	Treasurer 	 

 

 

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	 	UBS AG, STAMFORD BRANCH, as Administrative Agent
	 
	 	By:  	/s/ Wilifred V. Saint
 	 
	 	 	Name:  	Director 	 
	 	 	Title:  	Banking Products Services, US 	 

	 	 	 	 	 
	 	By:  	/s/ Doris Mesa
 	 
	 	 	Name:  	Associate Director 	 
	 	 	Title:  	Banking Products Services, USexv10w5

 

Exhibit 10.5

Vincent D. Kelly

President and CEO

	   	November 30,2004
	 
	   	Tom Schilling 

1032 Turning Point Lane 

Cincinnati, Ohio 45039
	 
	   	Dear Tom:
	 
	   	We are pleased to offer you the position of Chief Financial Officer for USA Mobility,
Inc. In this role you will be responsible for providing leadership and oversight to
Accounting, Finance, Audit, Treasury, Purchasing, and the Records Management functions for
USA Mobility. Also, your responsibilities will include planning and implementing the
integration of these functions from the predecessor companies and ensuring the development
and on-going leadership of these functions for USA Mobility.

	 	   	Your overall responsibilities include, but are not limited to;

	 	•  	Planning and developing the management team for your areas of
responsibility and re-aligning the staffing of each of the departments to maximize productivity while
achieving the synergy goals of the merger
	 
	 	•  	Overseeing the above-mentioned functions to include planning and leading their
rationalization and integration with Metrocall’s legacy systems, and providing
oversight
of related systems until successfully transitioned
	 
	 	•  	Contribution in the development of, and on-going fiscal
responsibility for, the 2005
operating budgets for your areas of responsibility and achievement of
fiscal and
quarterly expense goals and targets
	 
	 	•  	Sarbanes-Oxley, Section 404 internal controls and compliance for
fiscal year 2004 and ongoing, as it relates to your areas of responsibility

6677 Richmond Highway
• Alexandria, VA 22306 • Direct:703.718.6650 • Fax: 703.768.9625 • www.usamobility.com

 

 

	   	In this position, you will report to the Chief Executive Officer for
USA Mobility and will work closely with the other members of executive management to
achieve our goals, including the successful integration of the two companies. The
terms of this offer are outlined below.

1) Base
Salary: $11,538,46 paid biweekly ($300,000 annually)

2) Bonus: 50% to 100% of base salary payable annually. Bonus
payment will be based upon accomplishment of pre-determined goals and objectives, as set and agreed
upon by the Board of Directors of USA Mobility.

3)
Benefits: Company health, dental, vision plans and 401(k) participation will
be available to you on the same terms as made available to other USA Mobility
employees.

4)
Vacation: You will accrue vacation each pay period at a rate equal, to
four weeks per year.

5) Expenses: Business related expenses including travel, lodging,
meals and incidentals (i.e., telephone expenses) associated with work-related travel,
will be reimbursed to you, following the submission of receipts consistent with USA
Mobility policy, For a maximum of six months from your starting date
of January 3, 2005,
USA Mobility will reimburse you for mutually agreed reasonable costs of an
apartment, rental car and related travel expenses, including airfare between your current
home and our corporate headquarters.

6) Severance: Should USA Mobility, in its sole discretion, terminate
you for any reason other than “Cause”, as defined in the USA Mobility Severance Benefits Plan (the
“USA Mobility Severance Plan”), you will become eligible for a severance benefit.
This severance benefit will be calculated based upon your hire date at USA Mobility
with continuous service through the date of termination. The amount of severance
shall reflect the terms and conditions contained in the USA Mobility Severance Plan,
or any successor severance plan of USA Mobility, and shall apply to the severance
payments set forth in this paragraph 6, including, but not limited to, the requirement
that you execute a valid severance and release agreement in effect at the time of your
termination. Any capitalized terms not defined herein shall have the meanings
set forth under the USA Mobility Severance Plan or any successor severance plan of USA
Mobility. In the event that you were to be terminated as a result of a Change
of Control you would be eligible for a severance payment equal to one
year’s base salary.

7) Equity Incentive Package: You will have meaningful participation in the
Board/Management equity incentive program at a level below the CEO, but on par
with
the COO and CTO, once a plan has been established for USA Mobility. A
recommendation will be made to the Board of Directors to approve your
participation in
the plan at a level below the CEO, but on par with the COO and CTO.

2

 

8) Signing
Bonus: You will receive a, signing bonus in the amount of
$50,000.00 within
ten (10) days of the date yon begin employment with USA
Mobility. If, within
one
calendar year of the date you begin employment with USA Mobility, you
voluntarily
terminate your employment with USA Mobility, or are terminated for
 “Cause”,
you will
be required to reimburse the Company for a prorated amount of the signing
bonus.

9)
Relocation Assistance: You will receive relocation assistance
(net of taxes) in the
amount of $50,000.00 which represents the maximum sum to be paid in
relocation
expenses. In order for relocation expenses to be tax deductible, you must
submit
receipts with an expense report.

10)
Non-Competition, Non-Solicitation & Release: You must agree to not
compete
with USA Mobility or divulge trade secrets or confidential information,
including
customer information, for the period of one year following termination of
employment.
In addition, you must agree not to solicit employees of USA Mobility for
employment.
Further, you must agree to release USA Mobility from any liability that might
arise
from your employment consistent with the terms set forth in the severance
agreement
and release in effect at that time.

11) At Will Employment: Employment with USA Mobility will be “at
will” and, thus,
may be terminated at any time by USA Mobility.

12) Governing Law: The terms of this letter agreement shall be
governed by the laws of
the Commonwealth of Virginia.

	   	Please sign and return one copy of this letter indicating your acceptance of this
employment offer. If at all possible, I would like you to attend the first
face-to-face meeting of the USA Mobility Board of Directors, as an employee on
December 16,2004, Tom, we are excited about our future and look forward to you
becoming a part of the USA Mobility Executive Leadership Team.
	 
	   	Sincerely,
	 
	   	
	 
	   	Vincent D. Kelly

President and CEO

USA Mobility, Inc.
	 
	   	Accepted:

	 	 	 	 	 	 	 	 	 
	

	 	/s/ Tom Schilling
	 	 	 	12
- 2 - 04
	 	 
	 

	 	Tom Schilling
	 	Date	 	 	 	 

	   	cc:  Human Resources, Personnel File

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