Document:

exv4w6w6

 

Exhibit 4.6.6

[Execution Copy]

TRANCHE E TERM LOAN AGREEMENT

dated as of

December 12, 2003

NEXTEL COMMUNICATIONS, INC.,

NEXTEL FINANCE COMPANY

JPMORGAN SECURITIES INC.

as Sole Bookrunner and Lead Arranger

JPMORGAN SECURITIES INC.,

as Syndication Agent

Bear, Stearns & Co. Inc.

Citigroup Global Markets, Inc.

Credit Suisse First Boston

SG Cowen,

as Documentation Agents

JPMORGAN CHASE BANK,

as Collateral Agent

 

 

TRANCHE E TERM LOAN AGREEMENT

          TRANCHE E TERM LOAN AGREEMENT dated as of December 12, 2003 among NEXTEL
COMMUNICATIONS, INC. (“NCI”), NEXTEL FINANCE COMPANY (the “Borrower”) and the
other RESTRICTED COMPANIES party hereto, the TRANCHE E TERM LOAN LENDERS party
hereto (including each Tranche E Term Loan Lender as defined below that becomes
a party hereto pursuant to a Lender Addendum as defined below), TORONTO
DOMINION (TEXAS), INC., as Administrative Agent, and JPMORGAN CHASE BANK,
formerly known as THE CHASE MANHATTAN BANK, as Collateral Agent.

          NCI, the Borrower and the other Restricted Companies party thereto, the
lenders party thereto, Toronto Dominion (Texas), Inc., as the Administrative
Agent, and JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank, as
Collateral Agent, are parties to an Amended and Restated Credit Agreement dated
as of November 9, 1999 (as heretofore amended, and as amended pursuant to
Amendment No. 4 thereto being executed concurrently with this Agreement, the
“Credit Agreement”).

          Section 2.01(e) of the Credit Agreement (as amended by Amendment No. 4
thereto) contemplates that at any time and from time to time prior to the
Revolving Credit Maturity Date, the Borrower may request that one or more
persons (which may include the Lenders under and as defined in the Credit
Agreement) offer to enter into commitments to make (or, as provided herein, to
convert existing Term Loans into) Incremental Facility Loans under and as
defined in said Section 2.01(e), subject to the conditions specified in said
Section 2.01(e). The Borrower has now requested that $2,200,000,000 in
aggregate principal amount of Incremental Facility Loans under said Section
2.01(e) be made available to it in a single series of term loans. The Tranche
E Term Loan Lenders (as defined below) are willing to make (or to convert
existing Term Loans into) such loans on the terms and conditions set forth
below and in accordance with the applicable provisions of the Credit Agreement
and, accordingly, the parties hereto hereby agree as follows:

ARTICLE I

DEFINED TERMS

          Terms defined in the Credit Agreement are used herein as defined therein.
In addition, the following terms have the meanings specified below:

     “Lender Addendum” means, with respect to any Tranche E Term Loan
Lender, a Lender Addendum substantially in form of Annex 1 hereto, dated
as of the date hereof and executed and delivered by such Tranche E Term
Loan Lender as provided in Section 2.05.

Tranche E Term Loan Agreement

 

 

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     “Tranche E Term Loan” means a Loan made (or, as provided herein,
converted from existing Term Loans) pursuant to this Agreement which
shall constitute a single Series of Incremental Facility Term Loans under
Section 2.01(e) of the Credit Agreement.

     “Tranche E Term Loan Commitment” means, with respect to each Tranche
E Term Loan Lender, the commitment of such Lender to make Tranche E Term
Loans hereunder (or, as provided herein, to convert existing Term Loans
into Tranche E Terms Loans hereunder). The amount of each Tranche E Term
Loan Lender’s Tranche E Term Loan Commitment is set forth in the Lender
Addendum executed and delivered by such Tranche E Term Loan Lender. The
aggregate original amount of the Tranche E Term Loan Commitments is
$2,200,000,000.

     “Tranche E Term Loan Effective Date” means the date on which the
conditions specified in Article IV are satisfied (or waived by the
Required Tranche E Term Loan Lenders).

     “Tranche E Term Loan Lender” means (a) on the date hereof, a Lender
that has executed and delivered a Lender Addendum and (b) thereafter, the
Lenders from time to time holding Tranche E Term Loan Commitments or
Tranche E Term Loans after giving effect to any assignments thereof
pursuant to Section 10.04 of the Credit Agreement.

ARTICLE II

TRANCHE E TERM LOANS

          Section 2.01. Commitments. Subject to the terms and conditions set forth
herein and in the Credit Agreement, each Tranche E Term Loan Lender agrees to
make Tranche E Term Loans to the Borrower (or, as provided below, to convert
Tranche B Term Loans, Tranche C Terms Loans or Tranche D Term Loans into
Tranche E Term Loans) on the Tranche E Term Loan Effective Date in an aggregate
principal amount equal to such Tranche E Term Loan Lender’s Tranche E Term Loan
Commitment. Proceeds of Tranche E Term Loans shall be available solely for
application to the prepayment of the outstanding principal of and accrued and
unpaid interest on the Tranche B Term Loans, Tranche C Term Loans and Tranche D
Term Loans.

          Notwithstanding the foregoing, it is understood and agreed that any
Tranche E Term Loan Lender that also holds any Tranche B Term Loans, Tranche C
Term Loans or Tranche D Term Loans (“Existing Tranche Loans”) shall be deemed
to have agreed, unless such Lender notifies the Administrative Agent otherwise,
that the Tranche E Term Loans to be made by such Lender shall, to the extent of
the portion thereof not exceeding the aggregate principal amount of the
Existing Tranche Loans of such Lender, be made through such Existing Tranche

Tranche E Term Loan Agreement

 

 

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Loans being converted into Tranche E Term Loans (and each reference in this
Agreement or the Credit Agreement to the “making” of any Tranche E Term Loan,
or words of similar import, shall in the case of such Lender be deemed to
include such conversion). Without limiting the generality of the foregoing, it
is understood that the Tranche E Term Loans into which the Existing Tranche
Loans are so converted shall be treated indentically to the Tranche E Terms
Loans being funded (and not being converted from Existing Tranche Loans) on the
Tranche E Term Loan Effective Date and shall have identical Interest Periods in
identical proportions and durations as all other Tranche E Loans (and, for
these purposes, any Interest Periods for Existing Tranche Loans that are
Eurodollar Loans in effect on the Tranche E Term Loan Effective Date shall be
terminated on the Tranche E Term Loan Effective Date, and any such converting
Lender shall be paid accrued interest on its Existing Tranche Loans being so
converted, together with any amounts payable under Section 2.14 of the Credit
Agreement, as if the Existing Tranche Loans were being prepaid in full on the
Tranche E Term Loan Effective Date).

          Section 2.02. Termination of Commitments. Unless previously terminated,
the Tranche E Term Loan Commitments shall terminate after the Borrowing of the
Tranche E Term Loans on the Tranche E Term Loan Effective Date.

          Section 2.03. Repayment of Loans. The Borrower hereby unconditionally
promises to pay to the Administrative Agent for the account of the Tranche E
Term Loan Lenders the principal of the Tranche E Term Loans in twenty-eight
installments payable on the Principal Payment Dates as follows:

	 	 	 	 	 
	Principal Payment Date	 	 
	Falling on or Nearest to:
	 	Amount of Installment:

	March 31, 2004
	 	$	5,500,000	 
	June 30, 2004
	 	$	5,500,000	 
	September 30, 2004
	 	$	5,500,000	 
	December 31, 2004
	 	$	5,500,000	 
	March 31, 2005
	 	$	5,500,000	 
	June 30, 2005
	 	$	5,500,000	 
	September 30, 2005
	 	$	5,500,000	 
	December 31, 2005
	 	$	5,500,000	 
	March 31, 2006
	 	$	5,500,000	 
	June 30, 2006
	 	$	5,500,000	 
	September 30, 2006
	 	$	5,500,000	 
	December 31, 2006
	 	$	5,500,000	 

Tranche E Term Loan
Agreement

 

 

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	March 31, 2007
	 	$	5,500,000	 
	June 30, 2007
	 	$	5,500,000	 
	September 30, 2007
	 	$	5,500,000	 
	December 31, 2007
	 	$	5,500,000	 
	March 31, 2008
	 	$	5,500,000	 
	June 30, 2008
	 	$	5,500,000	 
	September 30, 2008
	 	$	5,500,000	 
	December 31, 2008
	 	$	5,500,000	 
	March 31, 2009
	 	$	5,500,000	 
	June 30, 2009
	 	$	5,500,000	 
	September 30, 2009
	 	$	5,500,000	 
	December 31, 2009
	 	$	5,500,000	 
	March 31, 2010
	 	$	5,500,000	 
	June 30, 2010
	 	$	5,500,000	 
	September 30, 2010
	 	$	5,500,000	 
	December 15, 2010
	 	$	2,051,500,000	 

          Notwithstanding the foregoing, if on any date (the “Test Date”), the
maturity date for any then-outstanding Public Notes (excluding all Public Notes
maturing after June 30, 2009), or mandatory redemption date for Disqualified
Capital Stock (excluding all Disqualified Capital Stock with a mandatory
redemption date after June 30, 2009), shall fall within six months of the Test
Date then, if the aggregate principal amount of all such Public Notes that
mature, and the redemption price of all such Disqualified Capital Stock that is
required to be redeemed, prior to June 30, 2009 is at such time greater than
the Threshold Amount, the Tranche E Term Loans shall be paid in full on the
Test Date, provided that the foregoing shall not apply if either (x) the
long-term debt rating for the outstanding unsecured and unenhanced Public Notes
is at least BBB- by S&P or Baa3 by Moody’s or (y) the Required Lenders shall
elect otherwise at any time prior to the Test Date.

          Section 2.04. Applicable Rate. The Applicable Rate means, in the case of
Tranche E Term Loans, for any day, 1.25% with respect to any Base Rate Loan and
2.25% with respect to any Eurodollar Loan.

          Section 2.05. Prepayment Premium. Upon any prepayment of Tranche E Term
Loans pursuant to Section 2.09(a) of the Credit Agreement during the period
commencing on the date hereof to but not including the first anniversary
thereof, the Borrower shall pay to the holders of such Loans a prepayment
premium in respect of the principal amount of such Loans so prepaid equal to 1%
of such principal amount prepaid, it being understood that no prepayment
premium shall be required pursuant to this paragraph in respect of any
prepayment of such Loans made on or after such first anniversary.

Tranche E Term Loan Agreement

 

 

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          Section 2.06. Delivery of Lender Addenda. Each Tranche E Term Loan
Lender shall become a party to this Agreement by delivering to each Agent a
Lender Addendum duly executed by such Tranche E Term Loan Lender, the Borrower
and each Agent.

          Section 2.07. Status of Agreement. This Agreement constitutes an
Incremental Facility Amendment, the Tranche E Term Loan Commitments of each
Tranche E Term Loan Lender constitute Incremental Facility Term Loan
Commitments and each Tranche E Term Loan Lender constitutes an Incremental
Facility Term Loan Lender, in each case under and for all purposes of the
Credit Agreement. The Tranche E Term Loans constitutes a single “Series” of
Incremental Facility Loans under Section 2.01(e) of the Credit Agreement.

          Section 2.08. Certain Consents. Each Tranche E Lender hereby consents to
the future amendments to the Credit Agreement contemplated by Section 3 of
Amendment No. 4 thereto, which future amendments would effect any or all of the
following (it being understood that to the extent such amendment effects any
other changes to the Credit Agreement, it shall be subject to approval by the
appropriate Lenders as and to the extent specified in Section 10.02 of the
Credit Agreement):

     (i) provides for one or more (but not all) of the Revolving Credit
Lenders to forego any reductions of their Revolving Credit Commitments
otherwise scheduled to occur on any date pursuant to Section 2.07(b) of
the Credit Agreement, or required to occur by reason of a voluntary
reduction of Revolving Credit Commitments at the option of the Borrower
so long as, for each Revolving Credit Lender whose Revolving Credit
Commitment is reducing and has not agreed to forego such reduction
(herein, a “Reducing Lender”), the Borrower shall prepay the Revolving
Credit Loans of such Reducing Lender (and, to the extent necessary,
provide cover for LC Exposure of such Reducing Lender pursuant to Section
2.04(i) of the Credit Agreement), in an amount equal to the amount by
which the Revolving Credit Commitment of such Reducing Lender is being
reduced, it being understood that (x) any such prepayment of Loans of
such Reducing Lender shall be applied to the Loans of each Type and
Interest Period held by such Reducing Lender so that, after giving effect
to such prepayment, the Loans of such Reducing Lender are held ratably by
Type and Interest Period with the Loans held by each other Revolving
Credit Lender and (y) any such cover for the LC Exposure of any such
Reducing Lender whose Revolving Credit Commitment is so reducing, shall
be held in a sub-account of the Letter of Credit Account in which such
cover is held for such Reducing Lender segregated from all other funds in
the Letter of Credit Account; or

     (ii) provides for one or more (but not all) of the Revolving Credit
Lenders to forego a voluntary termination of Commitments being effected
at the option of the Borrower, so long as, for each Revolving Credit
Lender whose Revolving Credit Commitment is terminating and has not
agreed to forego such voluntary termination (herein, a “Terminating
Lender”), the Borrower shall pay in full the Revolving Credit

Tranche E Term Loan Agreement

 

 

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Loans of such Terminating Lender (and, to the extent necessary, provide
full cover for the LC Exposure of such Terminating Lender pursuant to
Section 2.04(i) of the Credit Agreement), it being understood that any
such cover for LC Exposure of any such Terminating Lender whose Revolving
Credit Commitment is so terminating, shall be held in a sub-account of
the Letter of Credit Account in which such cover is held for such
Terminating Lender segregated from all other funds in the Letter of
Credit Account.

ARTICLE III

REPRESENTATION AND WARRANTIES; NO DEFAULTS

          NCI and each Restricted Company represents and warrants to the Lenders and
the Agents, as to itself and each of its subsidiaries that, after giving effect
to the provisions hereof, (i) each of the representations and warranties set
forth in Article IV of the Credit Agreement is true and correct on and as of
the date hereof as if made on and as of the date hereof (or, if any such
representation or warranty is expressly stated to have been made as of a
specific date, such representation or warranty is true and correct as of such
specific date) and as if each reference therein to the Credit Agreement or Loan
Documents included reference to this Agreement and (ii) no Default or Event of
Default has occurred and is continuing.

ARTICLE IV

CONDITIONS

          The obligations of the Tranche E Term Loan Lenders to make (or, as
provided herein, to convert existing Term Loans into) the Tranche E Term Loans
is subject to the conditions precedent that each of the following conditions
shall have been satisfied (or waived by the Required Tranche E Term Loan
Lenders):

     (a) Counterparts of Agreement. The Administrative Agent (or
Special Counsel) shall have received from each party hereto either (i) a
counterpart of this Agreement signed on behalf of such party or (ii)
written evidence satisfactory to the Administrative Agent (which may
include telecopy transmission of a signed signature page of this
Agreement) that such party has signed a counterpart of this Agreement.

     (b) Opinion of Counsel to Credit Parties. The Administrative Agent
(or Special Counsel) shall have received a favorable written opinion
(addressed to each Agent and the Tranche E Term Loan Lenders and dated
the Tranche E Term Loan Effective Date) of Jones Day, counsel to the
Credit Parties, covering such matters relating to the Credit Parties or
this Agreement as either Agent shall request (and each Credit Party
hereby requests such counsel to deliver such opinion). To the extent
deemed appropriate by the

Tranche E Term Loan Agreement

 

 

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Restricted Companies, internal corporate matters in such opinion (such as
due incorporation and the like) may be rendered in a separate opinion
from the General Counsel of NCI.

     (c) Opinion of Special Counsel. The Administrative Agent shall
have received a favorable written legal opinion (addressed to each Agent
and the Tranche E Term Loan Lenders and dated the Tranche E Term Loan
Effective Date) of Special Counsel, substantially in the form of Annex 2
(and each Agent hereby requests such counsel to deliver such opinion).

     (d) Corporate Matters. The Administrative Agent (or Special
Counsel) shall have received such documents and certificates as either
Agent or Special Counsel may reasonably request relating to the
organization, existence and good standing of each Credit Party, the
authorization of the Borrowings hereunder and any other legal matters
relating to the Credit Parties, the Credit Agreement or this Agreement,
all in form and substance reasonably satisfactory to each Agent.

     (e) Notes. The Administrative Agent (or Special Counsel) shall
have received for each Tranche E Term Loan Lender that shall have
requested a promissory note at least one Business Day prior to the
Tranche E Term Loan Effective Date, a duly completed and executed
promissory note for such Lender.

     (f) Fees and Expenses. JPMorgan Securities Inc. shall have
received all fees and other amounts due and payable on or prior to the
Tranche E Term Loan Effective Date, including, to the extent invoiced,
reimbursement or payment of all out-of-pocket expenses required to be
reimbursed or paid by the Borrower hereunder.

     (g) Prepayment of Tranche B, C and D Term Loans. The principal of
and interest on and all other amounts (including any amounts payable
under Section 2.14 of the Credit Agreement) owing in respect of the
Tranche B Term Loans, Tranche C Term Loans and Tranche D Term Loans shall
have been (or shall be concurrently) prepaid in full from funds available
to the Borrower and the proceeds of the Tranche E Term Loans.

     (h) Additional Conditions. Each of the conditions precedent set
forth in Section 5.02 of the Credit Agreement to the making of (or, as
provided herein, to converting existing Term Loans into) Tranche E Term
Loans on the Tranche E Term Loan Effective Date shall have been
satisfied, and the Administrative Agent (or Special Counsel) shall have
received a certificate to such effect, dated the Tranche E Term Loan
Effective Date and signed by the President, Executive Vice President,
Senior Vice President, a Vice President or a Financial Officer of the
Borrower.

Tranche E Term Loan Agreement

 

 

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ARTICLE V

MISCELLANEOUS

          SECTION 5.01. Expenses. The Credit Parties jointly and severally agree
to pay, or reimburse JPMorgan Securities Inc. for paying, all reasonable
out-of-pocket expenses incurred by the JPMorgan Securities Inc. and its
Affiliates, including the reasonable fees, charges and disbursements of Special
Counsel, in connection with the syndication of the Incremental Facility Loans
provided for herein and the preparation of this Agreement.

          SECTION 5.02. Counterparts; Integration; Effectiveness. This Agreement,
including the Lender Addenda, may be executed in counterparts (and by different
parties hereto on different counterparts), each of which shall constitute an
original, but all of which when taken together shall constitute a single
contract. This Agreement shall become effective when this Agreement, together
with Lender Addenda providing for Tranche E Term Loan Commitments in an
aggregate principal amount equal to $2,200,000,000, shall have been executed by
the Administrative Agent and when the Administrative Agent shall have received
counterparts hereof and thereof which, when taken together, bear the signatures
of each of the other parties hereto and thereto, and thereafter shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns. Delivery of an executed counterpart of a
signature page of this Agreement by telecopy shall be effective as delivery of
a manually executed counterpart of this Agreement.

          SECTION 5.03. Governing Law. This Agreement shall be governed by, and
construed in accordance with, the law of the State of New York.

          SECTION 5.04. Headings. Article and Section headings used herein are for
convenience of reference only, are not part of this Agreement and shall not
affect the construction of, or be taken into consideration in interpreting,
this Agreement.

Tranche E Term Loan Agreement

 

 

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          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the day and year
first above written.

	 	 	 	 	 	 	 
	 	 	 	 	NEXTEL COMMUNICATIONS, INC.
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	/s/ Richard S. Lindahl
	

	 	 	 	 	 	
 
	

	 	 	 	 	 	Name: Richard S. Lindahl
	

	 	 	 	 	 	Title: Vice President & Treasurer
	 
	 	 	 	 	 	 
	 	 	RESTRICTED COMPANIES
	 
	 	 	 	 	 	 
	 	 	 	 	NEXTEL FINANCE COMPANY
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	/s/ Richard S. Lindahl
	

	 	 	 	 	 	
 
	

	 	 	 	 	 	Name: Richard S. Lindahl
	

	 	 	 	 	 	Title: Vice President & Treasurer
	 
	 	 	 	 	 	 
	 	 	 	 	FCI 900, Inc.
	 	 	 	 	NEXTEL BOOST OF CALIFORNIA, LLC
	 	 	 	 	NEXTEL COMMUNICATIONS OF THE MID-ATLANTIC, INC.
	 	 	 	 	NEXTEL OF CALIFORNIA, INC.
	 	 	 	 	NEXTEL LICENSE ACQUISITION CORP.
	 	 	 	 	NEXTEL LICENSE HOLDINGS 1, INC.
	 	 	 	 	NEXTEL LICENSE HOLDINGS 2, INC.
	 	 	 	 	NEXTEL LICENSE HOLDINGS 3, INC.
	 	 	 	 	NEXTEL LICENSE HOLDINGS 4, INC.
	 	 	 	 	NEXTEL LICENSE HOLDINGS 5, INC.
	 	 	 	 	NEXTEL OF NEW YORK, INC.

Tranche E Term Loan Agreement

 

 

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	 	 	NEXTEL OPERATIONS, INC.
	 	 	NEXTEL OF PUERTO RICO, INC.
	 	 	NEXTEL SOUTH CORP.
	 	 	NEXTEL OF TEXAS, INC.
	 	 	NEXTEL SYSTEMS CORP.
	 	 	NEXTEL WEST CORP.
	 	 	NEXTEL WEST SERVICES, LLC
	 
	 	 	 	 
	

	 	By:
	 	/s/ Richard S. Lindahl
	

	 	 	 	
 
	

	 	 	 	Name: Richard S. Lindahl
	

	 	 	 	Title: Vice President & Treasurer

Tranche E Term Loan Agreement

 

 

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	 	 	AGENTS
	 
	 	 	 	 	 	 
	 	 	 	 	TORONTO DOMINION (TEXAS), INC.,
	 	 	 	 	as Administrative Agent
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	/s/ Jim Bridwell
	

	 	 	 	 	 	
 
	 	 	 	 	Name: Jim Bridwell
	 	 	 	 	Title: Vice President
	 
	 	 	 	 	 	 
	 	 	 	 	JPMORGAN CHASE BANK, formerly known
	 	 	 	 	as THE CHASE MANHATTAN BANK,
	 	 	 	 	  as Collateral Agent
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	/s/ Tracey Navin Ewing
	

	 	 	 	 	 	
 
	 	 	 	 	Name: Tracey Navin Ewing
	 	 	 	 	Title: Vice President

Tranche E Term Loan Agreement

 

 

ANNEX 1

[Form Of Lender Addendum]

LENDER ADDENDUM

          Reference is made to the Tranche E Term Loan Agreement dated as of
December 12, 2003 (the “Tranche E Term Loan Agreement”) among Nextel
Communications, Inc. (“NCI”), Nextel Finance Company (the “Borrower”) and the
other Restricted Companies named therein, the Tranche E Term Loan Lenders named
therein (the “Tranche E Term Loan Lenders”), Toronto-Dominion (Texas), Inc., as
Administrative Agent (the “Administrative Agent”), and JPMorgan Chase Bank,
formerly known as The Chase Manhattan Bank, as Collateral Agent (the
“Collateral Agent”), which Tranche E Term Loan Agreement is being entered into
pursuant to Section 2.01(e) of the Amended and Restated Credit Agreement dated
as of November 9, 1999 (the “Credit Agreement”) among NCI, the Borrower and the
other Restricted Companies party thereto, the lenders party thereto and the
Administrative Agent and Collateral Agent. Terms used but not defined in this
Lender Addendum have the meanings assigned to such terms in the Tranche E Term
Loan Agreement and the Credit Agreement.

          By its signature below, and subject to the acceptance hereof by the
Borrower and each Agent as provided below, the undersigned hereby becomes a
Tranche E Term Loan Lender under the Tranche E Term Loan Agreement, having the
Tranche E Term Loan Commitment set forth below opposite its name.

          It is understood and agreed that if the undersigned also holds any Tranche
B Term Loans, Tranche C Term Loans or Tranche D Term Loans (“Existing Tranche
Loans”) under the Credit Agreement, the undersigned shall be deemed to have
agreed, unless it notifies the Administrative Agent otherwise, that the Tranche
E Term Loans to be made by the undersigned shall, to the extent of the portion
thereof not exceeding the aggregate principal amount of the Existing Tranche
Loans of the undersigned, be made through such Existing Tranche Loans being
converted into Tranche E Term Loans (and each reference in the Tranche E Term
Loan Agreement or the Credit Agreement to the “making” of any Tranche E Term
Loan, or words of similar import, shall in the case of the undersigned be
deemed to include such conversion).

          This Lender Addendum shall be governed by, and construed in accordance
with, the law of the State of New York.

          This Lender Addendum may be executed in counterparts (and by different
parties hereto on different counterparts), each of which shall constitute an
original, but all of which when taken together shall constitute a single
contract.

Lender Addendum

 

 

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          IN WITNESS WHEREOF, the parties hereto have caused this Lender Addendum to
be duly executed and delivered by their proper and duly authorized officers as
of this    day of December, 2003.

	 	 	 	 	 	 	 
	Amount of Tranche E	 	

	  Term Loan Commitment:	 	[Name of Tranche E Term Loan Lender]
	 
	 	 	 	 	 	 
	  $_______________	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	

	

	 	 	 	 	 	Name:
	

	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 
	Accepted and agreed:	 	 	 	 
	 
	 	 	 	 	 	 
	TORONTO DOMINION (TEXAS), INC., as	 	 	 	 
	  Administrative Agent	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	
	 	 	 	 
	

	 	Name:	 	 	 	 
	

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	JPMORGAN CHASE BANK, formerly	 	 	 	 
	known as THE CHASE MANHATTAN BANK,	 	 	 	 
	  as Collateral Agent	 	 	 	 
	 	 	 	 	 	 	 
	By:

	 	
	 	 	 	 
	

	 	Name:	 	 	 	 
	

	 	Title:	 	 	 	 

Lender Addendum

 

 

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	NEXTEL FINANCE COMPANY
	 
	 	 
	By:

	 	

	

	 	Name:
	

	 	Title:

Lender Addendum

 

 

ANNEX 2

[Form of Opinion of Special Counsel to the Agents]

	 	 	 
	

	 	[Date]

To the Tranche E Term Loan Lenders

  and the Agents party to the Tranche E

  Term Loan Agreement and

  Credit Agreement referred to below

Ladies and Gentlemen:

          We have acted as special New York counsel to the Administrative Agent and
Collateral Agent under the Tranche E Term Loan Agreement dated as of    ,
2003 (the “Tranche E Term Loan Agreement”) among Nextel Communications, Inc.
(“NCI”), Nextel Finance Company (the “Borrower”) and the other Restricted
Companies named therein, the Tranche E Term Loan Lenders party thereto (the
“Tranche E Term Loan Lenders”), Toronto-Dominion (Texas), Inc., as
Administrative Agent (the “Administrative Agent”), and JPMorgan Chase Bank,
formerly known as The Chase Manhattan Bank, as Collateral Agent (the
“Collateral Agent”), which Tranche E Term Loan Agreement is being entered into
pursuant to Section 2.01(e) of the Amended and Restated Credit Agreement dated
as of November 9, 1999 (the “Credit Agreement”) among NCI, the Borrower and the
other Restricted Companies party thereto, the lenders party thereto and the
Administrative Agent and Collateral Agent. Terms defined in the Tranche E Term
Loan Agreement and Credit Agreement are used herein as defined therein, or in
Annex 1 hereto. This opinion is being delivered pursuant to clause (c) of
Article IV of the Tranche E Term Loan Agreement.

          In rendering the opinions expressed below, we have examined the following
agreements, instruments and other documents:

	 	(a)	 	the Tranche E Term Loan Agreement; and
	 
	 	(b)	 	the Credit Agreement.

The agreements, instruments and other documents referred to in the foregoing
lettered clauses are collectively referred to as the “Credit Documents”.

          In our examination, we have assumed the authenticity of all documents
submitted to us as originals and the conformity with authentic original
documents of all documents submitted to us as copies. When relevant facts were
not independently established, we have relied upon representations made in or
pursuant to the Credit Documents.

Form of Opinion of Special Counsel

 

 

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          In rendering the opinions expressed below, we have assumed, with respect
to all of the documents referred to in this opinion letter, that:

	 	(i)	 	such documents have been duly authorized by, have
been duly executed and delivered by, and (except to the extent
set forth in the opinions below as to the Credit Parties)
constitute legal, valid, binding and enforceable obligations of,
all of the parties to such documents;
	 
	 	(ii)	 	all signatories to such documents have been duly
authorized;
	 
	 	(iii)	 	all of the parties to such documents are duly
organized and validly existing and have the power and authority
(corporate or other) to execute, deliver and perform such
documents; and
	 
	 	(iv)	 	the Tranche E Term Loan Agreement has become effective
in accordance with the provisions of Section 5.02 thereof.

          Based upon and subject to the foregoing and subject also to the comments
and qualifications set forth below, and having considered such questions of law
as we have deemed necessary as a basis for the opinions expressed below, we are
of the opinion that each of the Credit Documents constitutes the legal, valid
and binding obligation of each Credit Party party thereto, enforceable against
such Credit Party in accordance with its terms, except as may be limited by
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or
other similar laws relating to or affecting the rights of creditors generally
and except as the enforceability of the Credit Documents is subject to the
application of general principles of equity (regardless of whether considered
in a proceeding in equity or at law), including, without limitation, (a) the
possible unavailability of specific performance, injunctive relief or any other
equitable remedy and (b) concepts of materiality, reasonableness, good faith
and fair dealing.

          The foregoing opinions are subject to the following comments and
qualifications:

     (A) The enforceability of Section 10.03 of the Credit Agreement may
be limited by (i) laws rendering unenforceable indemnification contrary
to Federal or state securities laws and the public policy underlying such
laws and (ii) laws limiting the enforceability of provisions exculpating
or exempting a party, or requiring indemnification of a party for,
liability for its own action or inaction, to the extent the action or
inaction involves gross negligence, recklessness, willful misconduct or
unlawful conduct.

     (B) Clause (iii) of the second sentence of Section 3.02 of the
Credit Agreement may not be enforceable to the extent that the Guaranteed
Obligations (as defined in the Credit Agreement) are materially modified.

     (C) The enforceability of provisions in the Credit Documents to the
effect that terms may not be waived or modified except in writing may be
limited under certain circumstances.

Form of Opinion of Special Counsel

 

 

- 3 -

     (D) We express no opinion as to (i) the effect of the laws of any
jurisdiction in which any Lender is located (other than the State of New
York) that limit the interest, fees or other charges such Lender may
impose for the loan or use of money or other credit, (ii) the last
sentence of Section 2.16(d) of the Credit Agreement, (iii) the first
sentence of Section 10.09(b) of the Credit Agreement, insofar as such
sentence relates to the subject matter jurisdiction of the United States
District Court for the Southern District of New York to adjudicate any
controversy related to the Loan Documents, (iv) the waiver of
inconvenient forum set forth in Section 10.09(c) with respect to
proceedings in the United States District Court for the Southern District
of New York and (v) Section 3.06 of the Credit Agreement.

     (E) We express no opinion as to the applicability to the
obligations of any Restricted Company (or the enforceability of such
obligations) of Section 548 of the United States Bankruptcy Code, Article
10 of the New York Debtor and Creditor Law or any other provision of law
relating to fraudulent conveyances, transfers or obligations or of the
provisions of the law of the jurisdiction of incorporation of any
Restricted Company restricting dividends, loans or other distributions by
a corporation for the benefit of its stockholders.

            The foregoing opinions are limited to matters involving the Federal laws
of the United States and the law of the State of New York, and we do not
express any opinion as to the laws of any other jurisdiction. We express no
opinion herein as to the applicability to, or effect upon, the transactions
contemplated by the Credit Documents with respect to matters governed by (i)
the Federal Communications Act of 1934, as amended, and the rules and
regulations promulgated thereunder by the FCC or (ii) any PUC which on the date
hereof is entitled to exercise jurisdiction over the Credit Parties.

            At the request of our client, this opinion is rendered solely to you in
connection with the above matter. This opinion may not be relied upon by you
for any other purpose or relied upon by any other Person (other than your
successors and assigns as Lenders and Persons that acquire participations in
your extensions of credit under the Credit Agreement) without our prior written
consent.

	 	 	 
	Very truly yours,
	 
	 	 
	RJW/WJM
	 	 

Form of Opinion of Special Counselexv10w6w9

 

Exhibit 10.6.9

NEXTEL COMMUNICATIONS, INC.

2004/2005 LONG-TERM PERFORMANCE PLAN

This document sets forth the terms of the Long-Term Performance Plan (the
“Plan”) of Nextel Communications, Inc. (the “Company).

1. Overview and Effective Date

The Plan is intended to reward key members of the Company’s management for
achieving specific performance goals over a two-year period commencing January
1, 2004. The Plan offers Participants (as defined below) the opportunity to
receive a cash-based payment, or a combination of cash and stock-based payments
at the discretion of the Compensation Committee (the “Committee”) of the Board
of Directors (the “Board”), if the Company achieves certain objectives that are
deemed critical to the long-term success of the Company.

The Plan is effective as of January 1, 2004 (the “Effective Date”) and was
authorized by the Committee on October 3, 2003 (the “Approval Date”).

2. Plan Administration

The Plan, as it pertains to members of senior management as so determined by
the Committee and/or Board, shall be administered by the Committee and/or the
Board. The Committee’s and/or the Board’s powers and authority include, but
are not limited to (1) selecting individuals who are eligible to participate
(“Participants”), (2) determining target award opportunities for Participants,
(3) interpreting the Plan’s provisions, (4) approving final payments under the
Plan, and (5) administering the Plan in a manner that is consistent with its
purpose.

The Chief Executive Officer of the Company shall have the powers and authority
described in clause (1) and (2) above with respect to Participants below the
senior management level, as designated by the Committee and/or Board and in
accordance with the parameters established by the Committee and/or the Board.

The Committee and/or the Board may delegate certain administrative functions to
management, such as maintenance of Participant lists, periodic communication
with regard to performance against targets over time, and other functions as
determined by the Committee and/or the Board.

3. Performance Period

Performance will be measured over the two-year period from January 1, 2004 to
December 31, 2005 (the “Performance Period”). A special “Interim Payout” (see
Section 7 below) may occur based on performance with respect to the one-year
period from January 1, 2004 to December 31, 2004 (“Interim Performance
Period”).

There is no formal obligation or intent on the part of the Company or Committee
and/or the Board to commence a new performance period prior to, subsequent to,
or upon completion of the

 

 

Performance Period. Additional performance periods, if any, are to be
determined solely by the Committee and/or the Board.

4. Eligibility and Participation

Key members of the Company’s management team responsible for the design and
execution of the Company’s business strategy are eligible to participate in the
Plan. Participants who are members of senior management are recommended by the
Chief Executive Officer and approved by the Committee and/or Board.
Participants below the senior management level are recommended by members of
senior management and approved by the Chief Executive Officer in accordance
with the parameters established by the Committee and/or the Board.

Participants may be added after the Approval Date of the Plan as recommended by
the Chief Executive Officer and approved by the Committee and/or Board with
respect to members of senior management, and as recommended by senior
management and approved by the Chief Executive Officer with respect to
Participants below the senior management level in accordance with the
parameters established by the Committee and/or the Board.

Participants will receive a personalized letter from the Company indicating
their participation in the Plan and the Target Award Opportunity as set forth
in Section 5.

5. Target Award Opportunity

Each Participant will be assigned a “Target Award Opportunity” expressed as a
dollar amount at the beginning of the Performance Period. The Target Award
Opportunity will not be subject to adjustment during the Performance Period,
except in such circumstances determined by the Committee and/or the Board that
warrant such adjustment.

Both the Target Award Opportunity and any adjustment to the Target Award
Opportunity during the Performance Period will be determined by the Chief
Executive Officer and approved by the Committee and/or Board with respect to
members of senior management, and determined by members of senior management
and approved by the Chief Executive Officer for Participants below the senior
management level in accordance with the parameters established by the Committee
and/or the Board.

The amount of actual payment may be higher or lower than the Target Award
Opportunity based on actual performance versus the goals set forth for the
Performance Period.

6. Performance Goals and Award Determination

The percentage of the Target Award Opportunity earned by Participants will be
determined based on actual performance versus approved targets set at the
beginning of the Performance Period for the following two metrics:

	1.	 	Operating Cash Flow (“OCF”), which functions as the primary metric, and
	 
	2.	 	Net Adds (as defined below), which functions as a modifier to the primary
metric.

-2-

 

Operating Cash Flow

OCF is defined as earnings before interest, taxes, depreciation, amortization
and any charges or income determined to be non-recurring or non-operational or
extraordinary in nature, such as restructuring and impairment charges, as
determined by the Committee and/or the Board. The OCF target, which excludes
such items that are deemed non-recurring or non-operational in nature, will be
determined by the Committee and/or Board for the Performance Period and the
Interim Performance Period. Based on this goal and actual OCF achievement
during the Performance Period, the following payout schedule will apply.
Linear interpolation will be used to calculate the payout for performance
between the points shown below.

	 	 	 	 	 
	 	 	Payout as a Percent of
	OCF as Percent	 	Target Award
	of Target
	 	Opportunity

	120%
	 	 	200	%
	110%
	 	 	150	%
	100%
	 	 	100	%
	Less than 100%
	 	 	0	%

Net Adds Multiplier

Net Adds will be a modifier to the primary metric. Net Adds for the Interim
Performance Period will be based on Net Adds for fiscal 2004, and Net Adds for
the Performance Period will be based on average Net Adds for each year in the
Performance Period (i.e., average of Net Adds for fiscal 2004 and fiscal 2005).

Net Adds is defined as gross subscriber unit sales minus deactivations, plus or
minus market transfers, as reported in the National Activity Report as Net
Adds. The Committee and/or the Board will determine the level of Net Adds
performance (i.e., Threshold, Above Threshold, and Target) that corresponds to
the following multiplier percentages:

	 	 	 	 	 
	2-year Average	 	 
	Net Adds
	 	Multiplier

	Target or Better
	 	 	100	%
	Above Threshold
	 	 	90	%
	Threshold
	 	 	80	%
	Less than Threshold
	 	 	0	%

Award Determination

At the end of the Performance Period, the amount of each Participant’s award
for performance during the two-year period will be calculated as follows:

	 	1.	 	Determine payout based on actual two-year OCF results as
indicated above,
	 
	 	2.	 	Apply “Net Adds” multiplier to the amount determined in Step
1 as indicated above, and

-3-

 

	 	3.	 	Apply the results from Step 2 to the Target Award Opportunity
for each Participant to determine actual payouts.

The amount calculated using the above procedure determines the total amount to
be paid for the Performance Period. The Interim Payout, representing a portion
of the total amount calculated in this section, may be paid upon completion of
the Interim Performance Period if certain OCF and Net Adds goals are achieved
for this one-year period as set forth in Section 7.

If the Interim Payout is made, the total amount of the payout for performance
over the two-year Performance Period will be offset by the amount of the
Interim Payout. Thus, the total amount of the award determined for an
individual under the Plan may not exceed the amount calculated in Step 1
through Step 3 of this section. Any payout after the completion of the
Performance Period (net of the Interim Payout) shall be referred to herein as
the “True-Up Payout”.

7. Interim Payout

Each Participant is eligible to earn an Interim Payout equal to 25% of that
individual’s Target Award Opportunity after the Interim Performance Period if
certain OCF and Net Adds goals for that period as determined by the Committee
and/or the Board are achieved.

The Interim Payout, to the extent earned, may only be equal to 25% of the
Target Award Opportunity and is not subject to adjustment for OCF or Net Adds
results above the goals established by the Committee and/or Board for the
Interim Performance Period. Assuming that each of the required goals is
achieved, the Interim Payout will be made in accordance with the provisions as
outlined in the Plan.

8. Form of Payout and Timing

To be eligible to receive a payout under the Plan, a Participant must be in
active full-time employment on the date of payment as set forth in Section 9
below.

Interim Payout

If an Interim Payout is payable based on OCF and Net Adds results for the
Interim Performance Period, the Interim Payment will be paid in cash in
February 2005.

True-Up Payout

If a True-Up Payout is payable based on OCF and Net Adds results for the
Performance Period, the True-Up Payout will be paid as follows:

	•	 	50% of the True-Up Payout will be paid in cash in February 2006, and

	•	 	50% of the True-Up Payout will be delivered in the form of cash or
Deferred Shares, at the election of the Committee and/or the Board (the
“Restricted Payout”)

-4-

 

Deferred Shares represent the right to receive Class A Common Stock at the end
of a specified deferral period, as defined in the Nextel Communications, Inc.
Amended and Restated Incentive Equity Plan (the “Incentive Equity Plan).
Deferred Shares shall be issued under and in accordance with the terms and
conditions of the Incentive Equity Plan.

If the Committee and/or Board elects to pay all or a portion of the Restricted
Payout in Deferred Shares, the number of Deferred Shares to be granted to each
Participant will be determined using the greater of the average daily closing
market price of a share of the Company’s common stock as quoted on the NASDAQ
National Market over the period beginning on and including February 28, 2006
and ending on and including March 20, 2006, or $20.00 per share.

The Deferred Shares will vest in equal installments on June 30, 2006 and
December 31, 2006. Pursuant to an election made by each Participant, receipt
of the Deferred Shares may be deferred past the vesting date. Any election
made by a Participant to defer for a period greater than the vesting date must
be made at least 6 months prior to the completion of the Performance Period.

If the Committee and/or Board elects to pay all or a portion of the Restricted
Payout in cash, such cash payment would be subject to an award value and
vesting period commensurate with that described above for the Deferred Shares.
If such cash payment is made, no interest shall be credited or appreciation in
value of the cash awards shall occur on such amounts during the vesting period.

Payouts will be subject to all applicable tax withholding requirements (e.g.,
federal, state, local, etc.).

9. Termination Provisions

Unless determined otherwise by the Committee and/or the Board, a Participant
will forfeit all unpaid amounts if not in active full-time employment with the
Company on the date of a cash payment or on a vesting date associated with any
payouts in Deferred Shares (or the cash equivalent as so determined by the
Committee and/or Board).

An exception to the above applies in the event of Death or Disability (both of
which as defined in the Nextel Communications, Inc. Change in Control Retention
Bonus and Severance Pay Plan) or Involuntary Termination without cause that
occurs after December 31, 2004. In such cases, accrued but unpaid amounts
shall be paid in accordance with the terms of payment applicable to other
Participants in the Plan in active full-time employment with the Company,
adjusted to reflect the portion of the Performance Period actually completed as
of the date of the Involuntary Termination without cause, Death or Disability.
The adjusted amount shall be determined by multiplying the True-Up Payout
applicable to such Participant (assuming continuous service through the end of
the Performance Period) by a fraction, the numerator of which shall equal the
actual whole and partial months worked during the Performance Period and the
denominator of which shall equal 24. The adjusted amount will be paid at the
times set forth in Section 8 unless determined otherwise by the Committee
and/or the Board.

-5-

 

In the event of termination, for any reason, including involuntary termination
without cause, Death or Disability that occurs prior to December 31, 2004, all
rights to future payouts will be forfeited.

10. Pro-Rata Payments

Employees that become Participants in the Plan after the Approval Date (e.g.,
as a result of promotion, new hire, etc.) will be assigned a Target Award
Opportunity that reflects the portion of the Performance Period they are
anticipated to complete based on the date that individual becomes a
Participant. The Target Award Opportunity assigned to such a Participant shall
not be subject to additional pro-ration, except to the extent the Involuntary
Termination without cause, Death or Disability adjustment (as described above)
applies.

11. Change in Control

In the event of a Change in Control of the Company, an immediate pro-rata cash
payment will occur based on the number of full months completed in the
Performance Period, including credit for a full month for the month in which
the Change in Control occurs, and performance versus the goals for the portion
of the Performance Period completed at that date.

Change in Control shall be defined as in the Nextel Communications, Inc. Change
in Control Retention Bonus and Severance Pay Plan.

12. Amendments and Termination

The Committee and/or the Board reserve the right to amend or terminate the Plan
as it deems necessary and appropriate. However, no amendment or termination
may, in the absence of written consent by a Participant, adversely affect the
rights of such Participant as outlined in the Plan.

13. Other

	(a)	 	No individual rights—Neither the Plan nor any action taken hereunder
shall be construed as giving any Participant any right to continue to be
employed or to continue to provide services to the Company, any
subsidiary, or related entity. The right to terminate the employment of
or performance of services by any Participant at any time and for any
reason is specifically reserved to the Company.

	(b)	 	Binding arbitration—any dispute or disagreement regarding participation
and/or a Participant’s rights to payment of awards under the Plan shall be
settled solely by binding arbitration in accordance with the applicable
rules of the American Arbitration Association.

	(c)	 	Unfunded plan—the Plan shall be unfunded and shall not create (or be
construed to create) a trust or a separate fund or funds. To the extent
any Participant holds any obligation of the Company hereunder by virtue of
an award granted under the Plan, such obligation shall constitute a
general unsecured liability of the Company and accordingly

-6-

 

	 	 	shall not confer upon such person any right, title, or interest in any
assets of the Company.

	(d)	 	Non-benefit bearing—compensation received under the Plan and/or the
Target Award Opportunity shall not be considered for purposes of
determining benefits under any other plan or arrangement maintained by the
Company as of the Effective Date of the Plan or adopted subsequently,
unless such plan or arrangement specifically provides for inclusion of
amounts earned under the Plan.

-7-

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