Document:

Stock Contribution Agreement dated August 11, 2006

 Exhibit 10.18 
 STOCK CONTRIBUTION AGREEMENT 
 Teletouch Communications, Inc. / TLL Partners, LLC 
 This STOCK CONTRIBUTION AGREEMENT (this “Agreement”), is entered into as of the 11th day of August, 2006, by and between Teletouch
Communications, Inc., a Delaware corporation (“Acquiror”), and TLL Partners, LLC, a Delaware limited liability company (“Contributor”). 
 BACKGROUND 
 WHEREAS, Contributor owns 4,200 shares of the common stock, $.10 par value per share
(the “Common Stock”) of Progressive Concepts, Inc., a Texas corporation (“PCI”), which represents 100% of PCI’s outstanding Common Stock; 
 WHEREAS, Contributor holds a majority interest in Acquiror; 
 WHEREAS, Contributor believes it will be in
its best interest to contribute to Acquiror its beneficial interest in all of the issued and outstanding shares of Common Stock in PCI to Acquiror; 
 WHEREAS, Contributor desires to contribute 100% of its shares of Common Stock in PCI to Acquiror, and Acquiror desires to acquire Contributor’s interest in the shares of Common Stock in PCI, pursuant to the terms and conditions set
forth herein. 
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual promises, covenants and agreements herein
contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Contributor and Acquiror, intending to be legally bound, hereby agree as follows: 
 Section 1. Acquisition of Shares. Subject to the terms and conditions set forth in this Agreement, Acquiror hereby acquires from Contributor, and
Contributor hereby contributes to Acquiror, 4,200 shares of the Common Stock of PCI, constituting all of the capital stock of PCI (the “Contributed Shares”). 
 Section 2. Stock Certificates. Simultaneously with the execution of this Agreement, the Contributor hereby delivers to Acquiror the certificate representing the Contributed Shares, duly endorsed by Contributor in
blank. 
 Section 3. Representations and Warranties of Contributor. 
 In order to induce the Acquiror to enter into this Agreement and consummate the transactions contemplated hereby, the Contributor hereby makes to the
Acquiror the representations and warranties contained in this Section 3 regarding Contributor and PCI. 

 a. Due Authorization. The Contributed Shares have been duly authorized and validly issued by PCI, and are
fully paid and non-assessable. Upon transfer and delivery of the Contributed Shares, Acquiror shall obtain full and legal title to all of the Contributed Shares, free and clear of any lien, charge or other encumbrance of any nature. The Contributed
Shares constitute all of the capital stock of PCI. 
 b. Authority. Contributor has the full right, power and authority to enter into this
Agreement and to consummate the transaction described in this Agreement. The execution, delivery and performance of this Agreement and the contribution and delivery of the Contributed Shares have been duly authorized by all necessary corporate or
other action of Contributor. 
 c. Acknowledgement. Contributor acknowledges that, as the sole shareholder of PCI, Contributor has full and
complete information and knowledge of PCI, its financial condition, its business operations and prospects and otherwise. 
 d. Disclosure.
Neither this Agreement nor any other documents, certificates or instruments furnished to the Acquiror by or on behalf of the Contributor in connection with the transactions contemplated by this Agreement contain any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements made herein or therein, in the light of the circumstances under which they were made herein or therein, not misleading. 
 e. Organization and Corporate Power. PCI is a corporation duly organized, validly existing and in good standing under the laws of the State of Texas, and
is duly qualified or registered to do business as a foreign corporation in each jurisdiction in which the failure to be so qualified could have a Material Adverse Effect. “Material Adverse Effect” means any change or effect that is
materially adverse to the properties, assets, business, condition (financial or otherwise) or results of operations of PCI, taken as a whole. PCI has all required corporate power and authority: (i) to own and hold its properties; (ii) to
carry on its business as presently conducted; and (iii) to enter into and perform this Agreement and to carry out the transactions contemplated hereby and thereby. Contributor has all required corporate power and authority to transfer the
Contributed Shares as provided herein. 
 f. Authorization and Non Contravention. This Agreement is a valid and binding obligation of
Contributor, enforceable in accordance with its terms except as may be limited (a) by applicable bankruptcy, insolvency, reorganization or other laws of general application relating to or affecting the enforcement of creditors’ rights
generally; and (b) by the effect of rules of law governing the availability of equitable remedies. The execution, delivery and performance of this Agreement has been duly authorized by all necessary corporate or other action of Contributor. The
execution of this Agreement, the contribution and delivery of the Contributed Shares, and the performance of any transaction contemplated hereby will not (a) violate, conflict with or result in a default under any contract or obligation to
which PCI or Contributor is a party or by which it or its assets are bound, or any provision of the Articles of Incorporation or By-laws of PCI or the Certificate of Incorporation or By-laws of Contributor; (b) cause the creation of any Lien
upon any of the assets of PCI or on the Contributed Shares (“Lien” means any lien, claim, option, charge, pledge, mortgage, security interest, voting agreement, trust, encumbrance, right or restriction of any nature.); (c) violate or
result in a violation of, or constitute a default (whether after the giving of notice, lapse of time or both) 
  

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 under, any provision of any law, regulation or rule, or any order of, or any restriction imposed by any court or other
governmental agency applicable to PCI or Contributor; (d) require from PCI or Contributor any notice to, declaration or filing with, or consent or approval of any governmental authority or other third party; or (e) accelerate any
obligation under, or give rise to a right of termination of, any agreement, permit, license or authorization to which PCI is a party or by which PCI is bound. 
 g. Subsidiaries. PCI does not have any direct or indirect subsidiaries. 
 h. Capitalization. PCI has a total
authorized capitalization consisting of 10,000 shares of Common Stock, of which 4,200 shares are issued and outstanding, and are held by Contributor. All the outstanding shares of Common Stock of PCI have been duly authorized, are validly issued and
are fully paid and non-assessable and will be free and clear of all liens. There are no options or rights of any nature to acquire from PCI shares of capital stock or other securities authorized, issued or outstanding, nor is PCI obligated in any
other manner to issue shares of its capital stock or other securities. PCI has no obligation to purchase, redeem, or otherwise acquire any of its capital stock or any interests therein. There are no restrictions on the transfer of the Contributed
Shares to be contributed pursuant to this Agreement, other than those imposed hereunder or by relevant state, federal and foreign securities laws. As of the date hereof and after giving effect to the transactions contemplated hereby, there will be
(a) no preemptive rights, rights of first refusal, put or call rights or obligations or anti-dilution rights with respect to the issuance, sale or redemption of PCI’s capital stock, (b) no rights to have PCI’s capital stock
registered for sale to the public in connection with the laws of any jurisdiction, (c) no documents, instruments or agreements relating to the voting of PCI’s voting securities or restrictions on the transfer of PCI’s capital stock or
(d) no agreement, document or commitment (written or oral) of PCI providing for the acceleration of vesting (or lapse of a repurchase right) upon the occurrence of any event with respect to any outstanding securities, options, warrants or other
purchase rights. The offer and sale of all securities of PCI issued prior to the date hereof complied with all federal and state securities laws. 
 i. Litigation. There is no action, claim, litigation or governmental or administrative proceeding or investigation pending or, to the knowledge of PCI or Contributor, threatened (a) against PCI, (b) affecting any material portion
of the properties or assets of PCI, (c) as to matters relating to PCI, against any officer, director or stockholder or key employee of PCI, or (d) which might call into question the validity of, or hinder the enforceability of this
Agreement. 
 j. Financial Information. 
 (A) True and complete copies of the unaudited consolidated balance sheets of PCI as of May 31, 2006, and the related unaudited consolidated statements of income and cash flows of PCI for May 2006 and for the year-to-date period ending
May 31, 2006 (collectively, the “Financial Statements”) have been delivered to Acquiror. 
 (B) The Financial Statements
(i) were prepared from and in accordance with the books and records of PCI (except as may be indicated in the notes thereto), (ii) present fairly in all material respects the consolidated financial condition, results of operations and cash

  

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 flows of PCI as of the dates thereof or for the periods covered thereby and (iii) were prepared in accordance with
GAAP applied on a basis consistent with the past practices of PCI except as indicated in the notes thereto or as otherwise required by GAAP. PCI does not have any “off-balance sheet arrangements”, as such term is defined in
Item 303(a)(4) of Regulation S-K under the Securities Act of 1933, as amended. 
 k. Absence of Undisclosed Material Liabilities. There
are no material liabilities that are required to be reflected on a balance sheet prepared in accordance with GAAP, other than those liabilities (a) reflected or reserved against on the Financial Statements or the notes thereto,
(b) incurred in the ordinary course of business since May 31, 2006 or (c) for costs and expenses incurred with respect to the transactions contemplated by this Agreement. 
 l. Title to Assets. Excluding any secured rights that may be granted to Fortress Credit Corporation, PCI has good and marketable title to all of its real
and personal property, free and clear of any mortgages, pledges, charges, liens, security interests or other encumbrances, except for those such that, individually or in the aggregate, do not cause a Material Adverse Effect. All leases of PCI are
valid and subsisting and in full force and effect. 
 m. Compliance with Law. The business of PCI has been and is presently being conducted
in accordance with all applicable federal, state and local governmental laws, rules, regulations and ordinances, except for such noncompliance that, individually or in the aggregate, would not cause a Material Adverse Effect. PCI has all franchises,
permits, licenses, consents and other governmental or regulatory authorizations and approvals necessary for the conduct of its business as now being conducted by it unless the failure to possess such franchises, permits, licenses, consents and other
governmental or regulatory authorizations and approvals, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. 
 n. Government Consent. No consent, approval, order or authorization of, or representation, qualification, designation, declaration or filings with, any United States federal, state, local or provincial government
authority on the part of PCI or Contributor is required in connection with the valid execution, delivery or performance of this Agreement, except such filings as have been made prior to the date hereof. 
 o. Tax Liability. PCI has timely filed or caused to be filed all material tax returns (federal, state and local) that are required to be filed or has
timely requested requests for extensions which are routinely granted and has paid all Taxes, including those which have become due pursuant to such returns or pursuant to any assessments made against it or any of its properties, as the case may be,
and all other Taxes or other charges imposed on it or any of its properties by any Governmental Authority, except for any such Taxes as are being appropriately contested in good faith and appropriate proceedings diligently conducted and with respect
to which adequate reserves have been provided so long as no Liens in respect thereof have been filed. The charges, accruals and reserves on the books of PCI in respect of Taxes and other governmental charges are, in the reasonable opinion of PCI,
accurate. 
 p. Certain Indebtedness. PCI has no Indebtedness that has not been disclosed in writing to the Acquiror prior to the date
hereof. PCI does not provide nor maintain any plans 
  

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 which provide, deferred compensation, severance, or medical or other welfare benefits that extend beyond the date of an
employee’s termination of employment except as required by law or which meet the requirements of Section 401 et. seq. of the Code. 
 q. Broker’s or Finder’s Commissions. No broker’s or finder’s fee or commission is or will be payable in connection with this Agreement or the transactions contemplated hereby, and Contributor jointly and severally agree
to save harmless and indemnify the Acquiror from and against any claim, demand, action, suit, proceeding or liability for any such fee or commission, including any costs and expenses (including attorneys fees) incurred by the Acquiror in connection
therewith. The provisions of this subsection shall survive the termination of this Agreement. 
 r. Regulation U. PCI does not own or does
not presently intend to acquire any “margin stock” as defined in Regulation U (12 CFR Part 221) of the Board of Governors of the Federal Reserve System. Neither PCI nor any agent acting on its behalf has taken or will take any action which
might cause this Agreement to violate Regulation U or any other regulation of the Board of Governors of the Federal Reserve System or to violate the Exchange Act, in each case as in effect now or as the same may hereafter be in effect. 

s. Patents, Trademarks, etc. PCI owns, possesses or has the right to use all necessary patents, patent rights, licenses, trademarks, trade names,
trade name rights, and franchises to conduct its business as now conducted, without any known conflict with any patent, patent right, license, trademark, trademark rights, trade name right, trade name, copyright or franchise right of any other
Person. 
 t. Insurance. PCI maintains appropriate insurance covering all material assets, properties and risks in such types and amounts and
covering such risks as are consistent with customary practices and standards of companies engaged in a similar business. 
 u. Tax Treatment.
PCI is treated as a corporation for tax purposes. 
 v. The Investment Company Act. PCI is not nor is it controlled by an “investment
company” within the meaning of the Investment Company Act. 
 w. Disclosure. Neither this Agreement nor any other documents,
certificates or instruments furnished to the Acquiror by or on behalf of PCI or the Contributor in connection with the transactions contemplated by this Agreement contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements made herein or therein, in the light of the circumstances under which they were made herein or therein, not misleading. 
 Section 4. Representations and Warranties of Acquiror. 
 In order to induce Contributor to enter into
this Agreement and consummate the transactions contemplated hereby, the Acquiror hereby makes to the Contributor the representations and warranties contained in this Section 4. 
  

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 a. Authority. Acquiror has the full right, power and authority to enter into this Agreement and to
consummate the transaction described in this Agreement. This Agreement has been duly executed and delivered by Acquiror and constitutes the legal, valid and binding obligation of Acquiror, enforceable against Acquiror in accordance with its terms.

 Section 5. Indemnification. 
 a. Indemnification of Contributor. Acquiror shall indemnify and hold Contributor harmless from and against any and all costs, expenses (including reasonable attorneys’ fees), damages, deficiencies, liabilities, fees and penalties,
including, without limitation, any of the foregoing incurred in connection with any third party claim or proceeding, resulting from any misrepresentation, breach of warranty or non-fulfillment of any covenant, agreement, representation or warranty
made by Acquiror hereunder 
 b. Indemnification of Acquiror. Contributor shall indemnify and hold Acquiror harmless from and against any and
all costs, expenses (including reasonable attorneys’ fees), damages, deficiencies, liabilities, fees and penalties, including, without limitation, any of the foregoing incurred in connection with any third party claim or proceeding, resulting
from any misrepresentation, breach of warranty or non-fulfillment of any covenant, agreement, representation or warranty made by Contributor hereunder. 
 Section 6. Resignation. Simultaneously with the closing of the transactions contemplated hereunder, [            ] shall resign as a director, officer
and employee of PCI. 
 Section 7. Definitions. 
 Whenever used in this Agreement, unless the context otherwise requires, the following words and phrases shall have the following meanings: 
 “Code” shall mean the Internal Revenue Code of 1986. 
 “Governmental Authority” shall mean any nation or
government, any state or other political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 
 “Indebtedness” of any Person means, without duplication, (a) all obligations of such Person for borrowed money, (b) all obligations of such Person
evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person, (d) all obligations of such Person in
respect of the deferred purchase price of property or services (excluding current accounts payable incurred in the ordinary course of business), (e) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an
existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, (f) all guarantees by such Person of Indebtedness of others,
(g) all capital lease obligations of such Person, (h) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty and (i) all obligations, contingent or
otherwise, of such Person in respect of bankers’ acceptances. The Indebtedness of any Person shall include the Indebtedness of any 
  

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 other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable
therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor. 
 “Lien” shall mean any statutory or common law consensual or non-consensual mortgage, pledge, security interest, encumbrance, lien, right of setoff, bona fide
claim or charge of any kind, including any conditional sale or other title retention transaction, any lease transaction in the nature thereof and any secured transaction under the UCC. 
 “Person” shall include natural persons, corporations, associations, limited liability companies, partnerships, joint ventures, trusts, governments and agencies and departments thereof and every other entity
of every kind. 
 “Taxes” shall mean any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities
(including penalties, interest and expenses) with respect thereto. 
 “UCC” shall mean the Uniform Commercial Code as in effect from time to time
in the applicable jurisdiction. 
 Section 8. Miscellaneous. 
 a. This Agreement shall be for the benefit of and shall be binding upon Acquiror and Contributor and their respective successors and permitted assigns.
Acquiror party may assign its rights, interests, or obligations hereunder without the prior written approval of the other party hereto. 
 b.
All representations, warranties and agreements made by each party under this Agreement shall survive the closing of the transactions contemplated hereunder. 
 c. This Agreement shall be governed by the laws of the State of Texas. 
 d. This Agreement may be executed
in any number of counterparts (whether facsimile or original), each of which shall be deemed to be an original, and all of which shall together constitute one and the same instrument. 
 e. The parties shall, at any time, and from time to time, following the execution hereof, execute and deliver all such further instruments or documents
and take all such further actions as may be reasonably necessary or appropriate in order to carry out more effectively the intent and purposes of this Agreement. 
 f. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the
validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction. 
 g. The parties have
participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this 
  

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 Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 
 h. No amendment of any provision
of this Agreement shall be valid unless the same shall be in writing and signed by Acquiror and Contributor. No waiver by any party of any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be
deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence. 
 i. All notices, requests, demands and other communications which are required to be or may be given under this Agreement shall be in writing and shall be
deemed to have been duly given when delivered in person, or transmitted by telecopy (with confirmation of receipt), or upon receipt after dispatch by certified or registered first class mail, postage prepaid, return receipt requested, or one
business day after sending by a nationally recognized overnight courier with charges prepaid, to the party to whom the same is so given or made, at the address set forth above (or such other address as shall be hereafter provided in writing).

 j. Each party will bear its own expenses and costs incurred in connection with this Agreement and the transactions contemplated hereby.

 k. This Agreement constitutes the entire agreement between the parties with respect to the subject matter contained herein, and supersedes
all prior and contemporaneous oral and written communications and agreements with respect thereto. 
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BLANK] 
  

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

			
	TELETOUCH COMMUNICATIONS, INC.
		
	By:	 	 /s/ Robert M. McMurrey

	Name:	 	Robert M. McMurrey
	Title:	 	Chairman of the Board
	
	TLL PARTNERS, LLC.
		
	By:	 	 /s/ Robert M. McMurrey

	Name:	 	Robert M. McMurrey
	Title:	 	Managing Member

  

 9Transaction Party Agreement dated August 11, 2006

 Exhibit 10.19 
 TRANSACTION PARTY AGREEMENT 
 THIS AGREEMENT (this “Agreement”) is made as of
August 11, 2006 among Progressive Concepts, Inc. (“PCI”), a Texas corporation and Teletouch Communications, Inc. (“Teletouch,” and, with PCI, the “Teletouch Entities”), on one hand, and Fortress Credit Corp.
(“Fortress”), a Delaware corporation, as agent (“the Agent”) for the Lenders (as hereinafter defined), and as a Lender, on the other. 
 RECITALS 
 WHEREAS, pursuant to the Loan Agreement, dated as of the date hereof (the “Loan
Agreement”), between TLL Partners, L.L.C. and Fortress, certain obligations of PCI were assumed by TLL Partners, L.L.C., and PCI was conditionally relieved therefrom; and 
 WHEREAS, in connection with such transaction, PCCI contributed the stock in PCI to TLL Partners, L.L.C. , which in turn contributed the stock in PCI to
Teletouch, without separate consideration pursuant to one or more “contribution agreements” dated as of August __, 2006; and 
 WHEREAS, the execution and delivery of this Agreement by PCI and Teletouch is a condition precedent to the Closing on the Loan Agreement; 
 NOW, THEREFORE, in consideration of the mutual covenants contained herein and in consideration for the execution by the Agent and the Lenders of the Loan Agreement, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 Section 1.1. Unless otherwise defined in the Preamble and Recitals
hereof, the definitions, interpretations, accounting terms and determinations, and rules for times set forth in Article I of the Loan Agreement are incorporated herein by reference. 
 ARTICLE II 
 REINSTATEMENT OF OBLIGATIONS 
 Section 2.1. In the event of a breach by PCI or Teletouch of any of the covenants set forth in Article III hereof, or in the event of a breach by
any Transaction Party of its covenants set forth in any Transaction Party Agreement, the claims of the Lenders and the Agent against PCI under the Current Loan Agreement, and the Liens against PCI granted in connection with the Current Loan
Agreement, including without limitation the PCI Security and the Cingular 

 Assignments, shall be deemed to have been reinstated ab initio to the fullest extent available under law, as if
the conditional release set forth in the Released Documents had never occurred. The Agent is authorized to take such actions and effect such filings as it may deem appropriate to perfect, record, continue or otherwise effect the validity and
priority of the liens or security interests set forth in this Section 2.1. 
 ARTICLE III 
 NEGATIVE COVENANTS 
 Section 3.1.
Negative Covenants. PCI and Teletouch each covenant and agree with the Agent that, until all Obligations have been indefeasibly paid in full in cash and there exists no commitment by the Lenders which could give rise to any Obligation, each
of them will not, without the Agent’s prior written consent in its sole discretion, and Teletouch will not permit PCI to, except as otherwise permitted herein with respect to each such covenant: 
 (a) Indebtedness. Create, incur, assume or permit to exist, directly or indirectly, any Indebtedness except: (A) the Obligations to the Agent
and the Lenders, (B) Permitted Debt (C) Indebtedness which shall be consented to by the Agent in writing in advance, in the Agent’s sole and absolute discretion, and (D) advances received from another Teletouch Entity to fund the
borrowing Teletouch Entity’s ordinary course operations as presently constituted. 
 (b) Liens. Create, incur, assume or permit
to exist, directly or indirectly, any Lien upon any of its properties or assets, or upon any of its equity capital or any other equitable or beneficial interest of any kind of it or any of its subsidiaries, whether now owned or hereafter acquired by
it or any of its subsidiaries, in whole or in part, directly or beneficially, and whether now existing or hereafter coming into existence, or any other Negative Pledged Interest of a Transaction Party, other than existing liens, if any, set forth on
Exhibit A hereto, Permitted Liens and the Real Estate Mortgage. 
 (c) Merger. Except for the PCI Reorganization and the pending sale
of Teletouch’s paging operations, enter into or be a party to any merger, consolidation, reorganization or exchange of stock or assets. 
 (d) Sale of Assets, etc. Except for the PCI Reorganization, the Real Estate Mortgage, the Thermo Loan, and the pending sale of Teletouch’s paging operations, sell, assign, transfer, convey or lease any of its properties or
assets or those of its subsidiaries (except in the ordinary course of its business consistent with past practice), or any interest in all or any substantial part of its property or that of its subsidiaries, or any of its equity capital or that of
its subsidiaries or any other equitable or beneficial interest of any kind of it or any of its subsidiaries, whether now owned or hereafter acquired by it or any of its subsidiaries, in whole or in part, directly or beneficially, or purchase or
otherwise acquire all or substantially all of the assets of any other Person or any shares of stock of, or similar interest in, any other Person, provided, however, that the Teletouch Entities may effect sales of assets not in the ordinary
course of business in an amount not to exceed the Remaining Investment Basket. 
 (e) Investments. Make any capital contribution to
any other Person or purchase or acquire a beneficial interest in any stock, securities or evidences of Indebtedness of, or make any 
  

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 other investment or acquire any interest in, any other Person, provided, however, that the purchase of short-term
investment securities for cash management purposes that are characterized as “cash” or “cash equivalents” under GAAP shall not be deemed to be a violation of this negative covenant. 
 (f) Subsidiaries. Organize or cause to exist any Subsidiaries without the Agent’s prior written consent in its sole and absolute discretion,
unless such Subsidiary executes a Transaction Party Agreement in form and substance identical to this Agreement. 
 (g) Loans and
Guaranties. Loan or make advances to any other Person or guarantee, endorse or otherwise be or become liable or contingently liable in connection with the obligations or Indebtedness of any other Person, directly or indirectly, except:

 (i) as an endorser of negotiable instruments for the payment of money deposited to its bank account for collection in the
ordinary course of its business consistent with past practice; 
 (ii) trade credit extended in the ordinary course of its
business consistent with past practice; 
 (iii) the posting of letters of credit, collateralized by cash, issued in the
ordinary course of business consistent with past practice and in an aggregate amount outstanding at any time not to exceed $2 million; 
 (iv) advances made in the usual course of its business to its officers and employees for travel and other out-of-pocket expenses incurred by them on its behalf in connection with such business; or 
 (v) advances made to the other Teletouch Entity to fund such entity’s ordinary course operations as presently constituted.

 (h) Restrictions on Stock Sales. Sell, assign, transfer, convey, lease, dispose of, grant a security interest or pledge, authorize
or issue, or obligate itself to issue, any other equity security, including options, warrants, or any other equity or debt security convertible into or exercisable for any equity security, or enter into a swap or other exchange, or any derivative
transaction relating to, any shares of its equity capital under its organizational documents or any ownership or other beneficial interest therein; provided that (i) Teletouch may sell up to 20% of its capital stock for cash in an arm’s
length transaction if in connection and simultaneously with such sale, an equal number of the shares in Teletouch held by TLL Partners are sold to a third party (unless such sale does not occur solely because of the refusal of TLL Partners or the
Agent to accept a bona fide offer for such sale), and such third party is neither related to nor an Affiliate of a Transaction Party, at a price equal to the amount paid to Teletouch, and the proceeds of the shares sold by TLL Partners, net of
direct expenses of such sale and the actual taxes payable in connection therewith (after taking account of all deductions, net operating and other losses and credits available to the Borrower) and the Operating Expense Amount are paid to Lender; and
(ii) Teletouch may grant employee stock options, restricted stock or stock appreciation rights pursuant to the terms of the plan now in effect and disclosed to Agent, and permit the exercise of any stock options heretofore or hereinafter so
issued. 
  

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 (i) Redemption. Purchase, redeem or exchange any equity securities (including the Preferred Units
and the Teletouch Warrants) or set aside funds for any such purposes, provided, however, that this subparagraph shall not preclude Teletouch from taking any action required under the terms of its Common Stock Purchase Warrants issued in
December, 2002 or the Lott/Delta redemption obligation as described on Schedule II of the Loan Agreement. 
 (j) Distributions. Pay or
set aside funds for the purpose of any distribution to its equity holders. 
 (k) Executive Compensation. Modify the compensation
payable to executives unless and until the modified compensation (i) is approved by the Compensation Committee of the Board of Directors of Teletouch (which committee shall consist of directors satisfying the independence standards applicable
to compensation committees of issuers that have securities listed on the American Stock Exchange), and (ii) is in accordance with the recommendations of independent compensation consultants engaged by such committee as reflective of market
standards applicable to executives in comparable positions. This paragraph shall also apply to any additional grant of employee options, even if such option grant is otherwise within the scope of an existing option program (except that the
requirement of an independent consultant shall apply only to the options issued to executives). 
 ARTICLE IV 
 MISCELLANEOUS 
 Section 4.1. No
Waivers; Remedies Cumulative. Neither any failure nor any delay on the part of the Agent in exercising any right, power or remedy hereunder, under any Loan Document or under applicable law shall operate as a waiver thereof, nor shall a single or
partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or remedy. The rights, remedies, powers and privileges provided in this Agreement are cumulative and may be exercised singularly or
concurrently and are not exclusive of any other rights, remedies, powers or privileges provided by law. 
 Section 4.2. Amendments;
Waivers. This Agreement may not be amended, modified or otherwise supplemented except in writing signed by the parties hereto. In the case of any waiver of an Event of Default, the event so waived shall be deemed to be cured and not continuing;
but no such waiver shall extend to any subsequent or other Event of Default, or impair any right consequent thereon. 
 Section 4.3.
GOVERNING LAW. (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW, EXCEPT TO THE EXTENT
THAT PURSUANT TO MANDATORY CHOICE OF LAW RULES, THE PERFECTION, AND THE EFFECT OF PERFECTION OR NON-PERFECTION AND PRIORITY, IS GOVERNED BY THE LAWS OF ANOTHER JURISDICTION. 
 (b) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST BORROWER OR AGENT ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER 
  

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 LOAN DOCUMENTS MAY AT AGENT’S OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK,
COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND THE BORROWER WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR
PROCEEDING, AND EACH TRANSACTION PARTY HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. EACH TRANSACTION PARTY DOES HEREBY DESIGNATE AND APPOINT: 
 CT CORPORATION SYSTEM 
 111 EIGHTH AVENUE 
 NEW YORK, NEW YORK 10010 
 AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND AGREES
THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED TO EACH OF THE UNDERSIGNED IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON PLEDGOR IN ANY
SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK. CONTEMPORANEOUS WITH THE SERVICE OF PROCESS ON THE AUTHORIZED AGENT, THE AGENT WILL DELIVER COPIES OF ANY SUCH PROCEEDINGS VIA OVERNIGHT COURIER TO ROBERT M. MCMURREY AT THE BORROWER’S
ADDRESS SET FORTH IN THE AGREEMENT. EACH OF THE UNDERSIGNED (I) SHALL GIVE PROMPT NOTICE TO EACH OF THE UNDERSIGNED OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE
AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS) AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES
TO HAVE AN OFFICE IN THE STATE OF NEW YORK, OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR. 
 Section 4.4. Successors and Assigns.
Except as otherwise expressly provided herein, the provisions of the Loan Documents shall inure to the benefit of, and be binding upon, the permitted successors, assigns, heirs, executors and administrators of the parties hereto. 
 Section 4.5. Entire Agreement. This Agreement constitutes the full and entire understanding and agreement among the parties with regard to
the subjects thereof. 
 Section 4.6. Severability of the Loan Documents. In case any provision of the Loan Documents shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  

 5 

 Section 4.7. Titles and Subtitles; Construction. The titles of the Sections and Subsections
of the Loan Documents are for convenience of reference only and are not to be considered in construing the Loan Documents. All words used in the Loan Documents shall be construed to be of such gender or number as the circumstances require.

 Section 4.8. Delays or Omissions. It is agreed that no delay or omission to exercise any right, power or remedy accruing to an
Lender, upon any breach or default of a Transaction Party under the Loan Documents, shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any such breach or default, or any acquiescence therein, or of or in any
similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. It is further agreed that any waiver, permit, consent or
approval of any kind or character by an Lender of any breach or default under the Loan Documents, or any waiver by an Lender of any provisions or conditions of the Loan Documents must be in writing and shall be effective only to the extent
specifically set forth in writing and that all remedies, either under the Loan Documents, or by law or otherwise afforded to the Lender, shall be cumulative and not alternative. 
 Section 4.9. Notices. All notices, consents, waivers, and other communications under the Loan Documents must be in writing and will be deemed
to have been duly given when (a) delivered by hand (with written confirmation of receipt), (b) sent by telecopier (with written confirmation of receipt), provided that a copy is mailed by a nationally recognized overnight delivery service
(e.g., Federal Express) or (c) one business day after mailed to the addressee, if sent by a nationally recognized overnight delivery service, in each case to the appropriate addresses and telecopier numbers set forth below (or to such other
addresses and telecopier numbers as a party may designate by notice to the other parties), or in the case of the other Transaction Parties, the addresses set forth on Schedule VI: 
  

			
	To PCI:	 	Progressive Concepts, Inc.
		 	5718 Airport Freeway
		 	Fort Worth, Texas 76117
		 	Attention: Robert M. McMurrey, Chairman & CEO
		 	Facsimile: (817) 654-6672
		
	To Teletouch:	 	Teletouch Communications, Inc.
		 	5718 Airport Freeway
		 	Fort Worth TX 76117
		 	Attention: Thomas A. Hyde, Jr., CEO
		 	Facsimile: (817) 654-6220
		
	With copy to:	 	Bracewell & Giuliani LLP
		 	711 Louisiana St., Ste 2300
		 	Houston, Texas 77002-2770
		 	Attention: Tom Manford
		 	Facsimile: (713) 221-1212

  

 6 

			
	To the Agent or Lender:	 	1345 Avenue of the Americas
		 	New York, New York, 10105
		 	telecopier no. (212) 798-6099
		 	Attention: Chief Financial Officer
		
	with a copy to	 	Northlight Financial LLC,
		 	1330 Avenue of the Americas
		 	New York, New York 10019
		 	telecopier no. (212) 247-0002

 Section 4.10. Counterparts. This Agreement may be executed by facsimile and in any
number of counterparts, each of which shall be deemed an original, and all of which together shall constitute one instrument. 
 Section 4.11. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN ANY LITIGATION ARISING DIRECTLY OR INDIRECTLY UNDER OR IN
CONNECTION WITH THIS AGREEMENT ANY OTHER LOAN DOCUMENTS. 
  

 7 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered as of the
day and year first written above. 
  

			
	PROGRESSIVE CONCEPTS, INC.
		
	By:	 	 /s/ Robert M. McMurrey

		 	Robert M. McMurrey
		 	Chief Executive Officer
	
	TELETOUCH COMMUNICATIONS, INC.
		
	By:	 	 /s/ Thomas A. Hyde, Jr.

		 	Thomas A. Hyde, Jr.
		 	Chief Executive Officer
	
	 FORTRESS CREDIT CORP.,
 as Agent and as a
Lender

		
	By:	 	 /s/ Dean Dakolias

		 	Dean Dakolias
		 	Chief Credit Officer

 Signature Page 
 to 
 Transaction Party Agreement

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