Document:

ADVISORY AGREEMENT

 Exhibit 10.12 
  
 ADVISORY AGREEMENT 
  
 This Advisory Agreement (this “Agreement”) is made and entered into as of February 24, 2005 by and between Project Holdings LLC
(“Parent”), Project Merger Sub Corp. (the “Merger Sub” and together with Parent, the “Companies”) and CVC Management LLC (“Advisor”). Capitalized terms used but not defined herein
shall have the meanings assigned to such terms in the Transaction Agreement, dated January 18, 2005, as amended (the “Transaction Agreement”) by and between Project Holdings Corp., Merger Sub, NTELOS Inc. and certain
shareholder signatories thereto. 
  
 WHEREAS, the Companies desire
to retain Advisor and Advisor desires to perform for the Companies and/or their subsidiaries certain services; 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, and for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows: 
  
 1. Term. (a) This Agreement shall be in effect for an initial term of ten (10) years commencing on the date hereof (the
“Term”), and shall be automatically extended thereafter on a year to year basis unless the Companies provide or Advisor provides written notice of its or their desire to terminate this Agreement to the other party 90 days prior to
the expiration of the Term or any extension thereof; provided, however, that, except as provided in Section 1(b), Parent may terminate its obligation to pay Advisory Fees (as such term is defined below), and correspondingly,
Advisor’s obligations under Section 2, at Parent’s option, upon or concurrently with Parent’s First Public Offering, by providing Advisor not less than ten (10) days prior written notice (an “Early
Termination”). In the event of an Early Termination, Parent shall pay to Advisor an amount equal to the Termination Fee. 
  
 (b) Parent may not elect to make an Early Termination of this Agreement unless it simultaneously elects to make an early termination under Section 1
of the Other Advisory Agreement (defined below), using the same methodology to calculate net present value as that used to calculate the Termination Fee pursuant to Section 1(c) of this Agreement. 
  
 (c) As used herein, the “Termination Fee” means the net
present value of all Advisory Fees that would have been payable from Parent to Advisor from the effective date of the Early Termination through the end of the Term, assuming that an Early Termination had not occurred. Any calculation of net present
value done in connection with the payment of the Termination Fee shall be calculated by the board of directors of Parent in good faith. 
  
 (d) As used herein, “First Public Offering” means the first underwritten public offering of the Company Common Stock after the date
hereof pursuant to an effective registration statement under the Securities Act of 1933, as amended, other than pursuant to a registration statement on Form S-4 or Form S-8 or any similar or successor form or a registration statement registering a
public offering of a combination of debt and equity securities in which not more than ten percent (10%) of the gross proceeds received from the sale of such securities is attributed to such equity securities, provided that the net proceeds of
such public offering equal $50,000,000 or more. 

 2. Services. Advisor shall perform or cause to be performed such services for the Companies and/or
their subsidiaries as directed by such Companies’ board of directors, which may include, without limitation, the following: 
  
 (a) executive and management services; 
  
 (b) identification, support and analysis of acquisitions and dispositions by such Companies or its subsidiaries; 
  
 (c) support and analysis of financing alternatives, including, without
limitation, in connection with acquisitions, capital expenditures and refinancing of existing indebtedness; 
  
 (d) finance functions, including assistance in the preparation of financial projections, and monitoring of compliance with financing agreements;

  
 (e) human resource functions, including searching and hiring
of executives; and 
  
 (f) other services for such Companies or
its subsidiaries upon which such Companies’ board of directors and Advisor agree. 
  
 Notwithstanding any provision in this Agreement to the contrary, each of the parties hereto acknowledges and agrees that there are no minimum levels of services required to be provided to the Companies pursuant to
this Agreement. 
  
 3. Advisory Fee. This Agreement shall
supersede the fee provisions set forth in paragraph 8 of the Letter Agreement, dated January 18, 2005, by and between Citigroup Venture Capital Equity Partners, L.P. and Quadrangle GP Investors LP. Subject to the terms and conditions herein,
Parent shall, or shall cause the Companies to, pay the Advisor for services rendered by Advisor and/or its affiliates pursuant to this Agreement (the “Advisory Fees”), $1,000,000 per annum, paid quarterly in advance commencing with
the first full fiscal quarter after the Initial Stock Purchase Closing; provided that such fees shall not become due and payable unless and until the Merger Closing has occurred. In addition, Parent shall, or shall cause the Companies to, reimburse
Advisor and its affiliates for all reasonable out-of-pocket expenses incurred in connection with the provision of services hereunder. 
  
 (a) Advisory Fees Paid to the Other Advisor. Notwithstanding anything in this Section 3 to the contrary, the Advisory Fee paid to the Advisor
hereunder shall be 50% of the sum of the Advisory Fees paid to the Advisor hereunder and the Advisory Fees paid to Quadrangle Advisors LLC (“Quadrangle Advisors”) pursuant to the certain Advisory Agreement dated as of the date
hereof between the Companies and Quadrangle Advisors, as the same may be amended, replaced or modified from time to time (the “Other Advisory Agreement”). 
  
 (b) Collection of Fee. The decision whether to collect any Advisory Fee in a given year shall be in the
Advisor’s sole discretion. The Advisor’s decision not to 

  

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collect an Advisory Fee in any given year shall not be construed to be a waiver of the Advisor’s right to collect an Advisory Fee in any future year.

  
 (c) Fee Calculation. All fees and expenses described in
this paragraph 3 shall be payable to Advisor or its designees on a quarterly basis in advance (based on the parties’ estimate of the amount of fees and expenses which shall become due and payable for such quarter) commencing as of the date
hereof. 
  
 4. Transaction Fees. (a) The Companies
hereby agree to pay to Advisor or its designee a transaction fee of $3,750,000 in consideration for the Equity Financing, which shall be paid as follows: $937,500 upon the Initial Stock Purchase Closing and $2,812,500 upon the Merger Closing, plus
reasonable out-of-pocket expenses. Such fees shall be payable to Advisor or its designees by wire transfer to an account designated in writing by the Advisor. 
  

(b) In addition, during the term of this Agreement, the Companies shall pay to Advisor or its designee a transaction fee in connection with the
consummation of each acquisition, divestiture or financing by any of the Companies or their subsidiaries in an amount equal to 0.50% of the aggregate value of such transaction. 
  
 5. Personnel. Advisor shall provide and devote to the performance of this Agreement such partners, employees and
agents of Advisor as Advisor shall deem appropriate to the furnishing of the services required. 
  
 6. Liability. Neither Advisor nor any other Indemnitee (as defined in Section 7 below) shall be liable to any of the Companies or any of their
subsidiaries or affiliates for any loss, liability, damage or expense arising out of or in connection with the performance of services contemplated by this Agreement, unless such loss, liability, damage or expense shall be proven to result directly
from gross negligence, willful misconduct or bad faith on the part of an Indemnitee acting within the scope of such person’s employment or authority. Advisor makes no representations or warranties, express or implied, in respect of the services
to be provided by Advisor or any of the other Indemnitees. Neither Advisor nor any officer, director, employee, partner, affiliate or associated entity thereof shall be liable to any of the Companies or any of their subsidiaries or affiliates for
breach of any duty (contractual or otherwise) by reason of any such activities of or of such person’s participation therein. To the fullest extent permitted by applicable law and Project Holding Corp.’s certificate of incorporation, the
doctrine of corporate opportunity, or any other analogous doctrine, shall not apply with respect to the Companies and the Advisor. Except as Advisor may otherwise agree in writing after the date hereof, Advisor shall have no obligation to refrain
from (i) engaging in the same or similar activities or lines of business as the Companies or developing or marketing any products or services that compete, directly or indirectly, with those of the Companies, (ii) investing or owning any
interest publicly or privately in, or developing a business relationship with, any Person engaged in the same or similar activities or lines of business as, or otherwise in competition with, the Companies or (iii) doing business with any client
or customer of the Companies (each of the activities referred to in clauses (i)-(iii), a “Competing Activity”); provided that, with respect to each Competing Activity in which Advisor engages, such Advisor shall use its
reasonable best efforts to (a) avoid taking any actions that would be reasonably likely to have a significant adverse regulatory impact on the Companies and the subsidiaries, taken as a whole, and (b) implement appropriate internal 

  

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controls to protect confidential information of the Companies. In no event will any of the parties hereto be liable to any other party hereto for any
indirect, special, incidental or consequential damages, including lost profits or savings, whether or not such damages are foreseeable, or in respect of any liabilities relating to any third party claims (whether based in contract, tort or
otherwise) other than the Claims (as defined in Section 7 below) relating to the service to be provided by Advisor hereunder. 
  
 7. Indemnity. Each of the Companies and their subsidiaries shall defend, indemnify and hold harmless each of Advisor, its affiliates, members,
partners, employees and agents (collectively, the “Indemnitees”) from and against any and all loss, liability, damage or expenses arising from any claim by any person with respect to, or in any way related to, the performance of
services contemplated by this Agreement (including attorneys’ fees) (collectively, “Claims”) resulting from any act or omission of any of the Indemnitees, other than for Claims which shall be proven to be the direct result of
gross negligence, bad faith or willful misconduct by an Indemnitee. Each of the Companies and their subsidiaries shall defend at its own cost and expense any and all suits or actions (just or unjust) which may be brought against such Company, any of
its subsidiaries or any of the Indemnitees or in which any of the Indemnitees may be impleaded with others upon any Claims, or upon any matter, directly or indirectly, related to or arising out of this Agreement or the performance hereof by any of
the Indemnitees, except that if such damage shall be proven to be the direct result of gross negligence, bad faith or willful misconduct by an Indemnitee, then Advisor shall reimburse the Companies and their subsidiaries for the costs of defense and
other costs incurred by the Companies and their subsidiaries. 
  
 8. Notices. All notices hereunder shall be in writing and shall be delivered personally or mailed by United States mail, postage prepaid, addressed to the parties as follows: 
  
 To the Companies as appropriate: 
  
 Project Holdings LLC 
 Project Merger Sub Corp. 
 c/o Quadrangle Capital Partners LP 
 375 Park Avenue 
 New York, NY 10152 
 Attention: Kimberley Carlson 
 Facsimile: (212) 418-1701 
  
 with a copy to: 
  
 Citigroup Venture Capital Equity Partners, L.P. 

399 Park Avenue, 14th Floor 
 New York, NY 10022 
 Attention: Michael A. Delaney 
                     Paul C. Schorr, IV 
 Facsimile: (212) 888-2940 
  

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 To Advisor: 
  
 CVC Management LLC 
 399 Park Avenue, 14th Floor 
 New York, NY 10043 
 Attention: Paul C. Schorr IV 
 Facsimile: (212) 888-2940 
  
 9. Assignment. The Companies may not assign any obligations hereunder to any other party without the prior written consent of Advisor (which consent shall not be unreasonably withheld), and Advisor may not assign any Advisor
obligations hereunder to any other party without the prior written consent of the Companies (which consent shall not be unreasonably withheld). 
  
 10. Successors. This Agreement and all the obligations and benefits hereunder shall inure to the successors and assigns of the parties. 

 
 11. Counterparts. This Agreement may be executed and delivered by
each party hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original and all of which taken together shall constitute but one and the same agreement. 
  
 12. Entire Agreement; Modification; Governing Law. The terms and
conditions hereof constitute the entire agreement between the parties hereto with respect to the subject matter of this Agreement and supersede all previous communications, either oral or written, representations or warranties of any kind
whatsoever, except as expressly set forth herein. No modifications of this Agreement nor waiver of the terms or conditions thereof shall be binding upon either party unless approved in writing by an authorized representative of such party. This
Agreement may not be amended in a manner materially adverse to the Companies and the Companies may not waive any material provision of this Agreement that is for their benefit unless a corresponding amendment is made to the Other Advisory Agreement.
All issues concerning this Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any
other jurisdiction) that would cause the application of the law of any jurisdiction other than the State of New York. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

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 IN WITNESS WHEREOF, the parties have executed this Advisory Agreement as of the date first written above.

  
 PROJECT HOLDINGS LLC 
  
 By:/s/ Michael
Huber                      
 Name: Michael Huber 
 Title: Vice President 
  
 PROJECT MERGER SUB CORP. 
  
 By: Michael
Huber                            
 Name: Michael Huber 
 Title: President 
  
 CVC MANAGEMENT LLC 
  
 By: /s/ Paul
C. Schorr IV                  
 Name:
Paul C. Schorr IV 
 Title: Managing Partner 
  

 6FORM OF 10% PROMISSORY NOTE

 Exhibit 10.13 
  
 No. [    ] 
  
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF
ANY STATE AND MAY NOT BE TRANSFERRED WITHOUT REGISTRATION UNDER THE SECURITIES ACT OR STATE SECURITIES LAWS OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY, THAT SUCH REGISTRATION IS NOT REQUIRED. 
  
 NTELOS HOLDINGS CORP. 
  

	 $                    
	 May 2, 2005 

  
 NTELOS Holdings Corp., a Delaware corporation (the “Company”), for value received, hereby promises to pay to
[                            ] (the “Holder”), the principal sum of
[                            ] Dollars and 66/100
($                    ) on May 2, 2010 (the “Maturity Date”), together with interest on the unpaid balance of the principal
amount of this Note at the rate of ten percent (10%) per annum, interest to be payable in the manner and at times provided herein. 
  
 This Note is one of a series of Notes issued in connection with the Subscription Agreement, dated as of May 2, 2005, among the Company, Citigroup
Venture Capital Equity Partners, L.P., a Delaware Limited Partnership, CVC/SSB Employee Fund, L.P., a Delaware limited partnership, CVC Executive Fund LLC, a Delaware limited liability company (collectively, the “CVC Entities”),
Quadrangle Capital Partners LP, Quadrangle Select Partners LP, Quadrangle Capital Partners-A LP (collectively, the “Quadrangle Entities”), and the other investors listed on Schedule A thereto (collectively, the
“Notes”). 
  
 1. Interest. Interest on
this Note will accrue for each calendar quarter or portion thereof from the most recent date from which interest has been paid or if no interest has been paid, from the issuance date hereof. Interest will be computed on the basis of a 365/6-day year
for the actual days elapsed. Any interest that is unpaid on the last day of a calendar quarter will accrue additional interest at the rate of ten percent (10%) per annum. In calculating the amount of any interest to be paid during a calendar
quarter, the portion of interest accruing for the portion of such calendar quarter elapsing before such interest is paid shall be taken into account. 
  
 2. Prepayment. The Notes must be prepaid in whole or in part without premium or penalty upon receipt of cash in connection with the Investors
Specified Amounts (as defined in the First Lien Credit Agreement, dated February 24, 2005, by and among NTELOS Inc., the Subsidiary Guarantors named therein, the Lenders named therein, the Swing Line Bank named therein, Morgan
Stanley & Co. Incorporated, as collateral agent, Morgan Stanley Senior 

 Funding, Inc., as administrative agent, and Bear Stearns Corporate Lending Inc., as syndication agent and the Second Lien
Credit Agreement, dated February 24, 2005, by and among NTELOS Inc., the Subsidiary Guarantors named therein, the Lenders named therein, Morgan Stanley & Co. Incorporated, as collateral agent, Morgan Stanley Senior Funding, Inc., as
administrative agent, and Bear Stearns Corporate Lending Inc., as syndication agent.) The amount of any such mandatory prepayment applicable to this Note shall be this Note’s proportionate share of the amount of such Investors Specified Amounts
determined based on the amount outstanding on such Note as a percentage of the aggregate amount outstanding on all of the Notes. This Note may be prepaid in whole or in part without premium or penalty at any time. Any such optional prepayment shall
be made on a pro rata basis to all of the holders of the Notes. The Holder may defer its receipt of payment of interest, provided it is not deferred past the fifth anniversary of the issuance of this Note. 
  
 3. Repayment and Conversion of the Note. 
  
 (a) Repayment. The principal of this Note, together with accrued but
unpaid interest thereon, shall be immediately due and payable and shall be repaid in full upon the fifth anniversary of the issuance of this Note. The Company covenants and agrees it shall not make any repayment of principal and accrued interest
unless such repayment is paid on a pro rata basis to all of the holders of the Notes. 
  
 (b) Conversion Right. At any time on or after the Issuance Date, the holders of the Notes representing 51% or more of the principal amount of outstanding Notes (“Majority Holders”), may elect,
on behalf of all of the Holders, for any or all of the outstanding and unpaid Principal and unpaid Interest thereon (the “Conversion Amount”), to be converted into fully paid and nonassessable shares of the Company’s Class L
Common Shares, par value $.01 per share (the “Class L Common Shares”), at a conversion price equal to $11.00 (subject to adjustment in the event of a stock split, reverse stock split, reclassification or stock dividend) (the
“Conversion Price”) by giving notice as described below. The Company covenants and agrees that so long as this Note is outstanding, (i) the Company shall have authorized and reserved a sufficient number of shares of Class L
Common Shares to enable the Holder to convert this Note into the Class L Common Shares, and (ii) the Company will issue the Class L Common Shares upon conversion of this Note in accordance with the terms hereof. 
  
 (c) Conversion Rate. The number of shares of the Company’s Class
L Common Shares issuable upon conversion of any Conversion Amount pursuant to Section 3(b) shall be determined by dividing (x) by (y) where (x) is the Conversion Amount and (y) is the Conversion Price. 
  
 (d) Mechanics of Conversion. The Majority Holders may at any time
elect to convert this Note into shares of the Company’s Class L Common Shares (the “Conversion Election”). Subject to the terms hereof, the Majority Holders shall effect the conversion of this Note as set forth above by
delivering a notice specifying the Conversion Amount with a copy to the Holder of this Note and the Holder of this Note will deliver a copy of this Note to the Company in exchange for the shares that it is entitled to receive. The Holder shall be
deemed to 
  

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 have become the holder of record of, and shall be treated for all purposes as the record holder of, the shares or
securities issuable hereunder (and such shares or securities shall be deemed to have been issued) immediately prior to the close of business on the date or dates upon which the Company is notified of the Conversion Election. 
  
 4. Method of Payment. 
  
 Except to the extent the Holder elects to convert principal or interest due
under this Note into Class L Common Shares, the Company will pay principal and interest in currency of the United States that at the time of payments is legal tender for payment of public and private debts. At Holder’s election, such payments
shall be made to Holder by delivering a check at Holder’s address listed on the books of the Company or to such other address designated in writing by Holder and provided to the Company at least ten (10) business days before any Payment
Date or shall be made by wire transfer of immediately available funds to an account designated by the Holder. All interest payments shall be paid by the Company in accordance with Section 1 hereof. 
  
 5. Amendment and Waiver. 
  
 (a) Consent Required. Any term, covenant, agreement or condition of
this Note may, with the consent of the Company, be amended or compliance therewith may be waived (either generally or in a particular instance and either retroactively or prospectively), if the Company shall have obtained the consent in writing of
the Holder and the Majority Holders to any such amendment or the consent of the Holder to any such waiver. 
  
 (b) Effect of Amendment or Waiver. Any amendment or waiver shall apply equally to all of the holders of the Notes and shall be binding upon such
holders, upon each future holder of any Note and upon the Company, whether or not such notes shall have been marked to indicate such amendment or waiver. No such amendment or waiver shall extend to or affect any obligation not expressly amended or
waived or impair any right consequent thereon. 
  
 6.
Replacement Notes. 
  
 If a mutilated Note is surrendered
to the Company or if the Holder of this Note presents evidence to the reasonable satisfaction of the Company that this Note has been lost, destroyed or wrongfully taken, the Company shall issue a replacement Note of like tenor if the requirements of
the Company for such transactions are met. An indemnity agreement may be required that is sufficient in the reasonable judgment of the Company to protect the Company from any loss which it may suffer. 
  
 7. Event of Default. This Note shall become immediately due and
payable upon an Event of Default. An “Event of Default” shall occur if the Company shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general
assignment for the benefit of creditors, or any proceeding shall be instituted by or against the Company seeking to adjudicate it a bankrupt or insolvent, or seeking 
  

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 liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts
under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, or other similar official for it or for any substantial part of its
property and in the case of any such proceeding instituted against the Company such proceeding shall not be stayed or dismissed within sixty (60) days from the date of institution thereof. 
  
 8. No Recourse Against Others. 
  
 No director, officer, employee or stockholder, as such, of the Company shall
have any liability for any obligations of the Company under this Note or for any claim based on, in respect or by reason of, such obligations or their creation. The Holder by accepting this Note waives and releases all such liability. This waiver
and release are part of the consideration for the issue of this Note. 
  
 9. Notices. 
  
 All notices, requests, consents
and demands shall be made in writing and shall be deemed to have been given if delivered personally or sent by certified or express mail, return receipt requested, postage prepaid, or by any recognized international equivalent of such mail delivery,
to the Holder or the Company, as the case may be, at the following addresses or to such other address as the Holder or the Company, as the case may be, shall specify by notice to the other: 
  
 if to the Holder, to it at: 
  
 [                    ] 
  
  
  
  
  
  
 with a copy to: 
  
 [                    ] 
  
  
  
  
  

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 if to the Company, to it at: 
  
 NTELOS Holdings Corp. 
 c/o Quadrangle Capital Partners LP 
 375 Park Avenue 
 New York, NY 10152 
 Fax: (212) 418-1701 
 Attention: Kimberley Carlson 
  
 All such notices and communications shall be deemed to have been received on the date of delivery if delivered personally or on the third business day
after the mailing thereof. 
  
 10. Governing Law.

  
 This Note shall be deemed a contract under, and shall be
governed and construed in accordance with, the laws of the State of New York without giving effect to principles of conflicts of laws. 
  
 11. Successors, etc.; Entire Agreement; Assignment. 
  
 This Note shall be binding upon and shall inure to the benefit of the Holder and the Company and their respective successors and permitted assigns. This
Note constitutes the entire agreement between the parties, superseding all prior understandings and writings, with respect to the indebtedness represented hereby. This Note may only be transferred to Permitted Transferees (as defined in the
Shareholders Agreement, dated May 2, 2005, among the Company, the Institutional Shareholders, as defined therein and the Management Shareholders, as defined therein). 
  
 12. Headings. 
  
 The section headings of this Note are for convenience only and shall not affect the meaning or interpretation of this Note or any provision hereof.

  

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 IN WITNESS WHEREOF, the Company has caused this Note to be executed by its duly authorized officer.

  
 Dated: May     ,
2005 
  

			
	 NTELOS HOLDINGS CORP.

		
	 By:
	 	  

	 	 	 Name:
 Title:

  
  

			
	 Agreed:

		
	By:	 	  

	 Name:
 Title:

  

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