Document:

exv10w7xby

 

EXHIBIT 10.7(b)

CINEMARK HOLDINGS, INC.

STOCK OPTION AGREEMENT

     Cinemark Holdings, Inc. (the “Company”), desiring to afford an opportunity to the undersigned
optionee (the “Optionee”) to purchase certain shares of the Company’s Class A Common Stock, par
value $.001 per share (the “Common Stock”), to provide the Optionee with an added incentive as an
employee of the Company or one or more of its Subsidiaries, hereby grants to the Optionee, and the
Optionee hereby accepts, an option to purchase the number of such shares specified below, during a
term ending at the close of business (prevailing local time at the Company’s principal offices) on
the expiration date of this Option specified below, at the Option exercise price specified below,
subject to and upon the following terms and conditions:

     1. Grant of Option. The Company hereby grants to the Optionee effective as of the
date set forth in Section 18 hereof (the “Date of Grant”), the right and option (the “Option”) to
purchase up to the aggregate number of shares the Common Stock set forth in Section 18 hereof,
subject to adjustment pursuant to Section 3 hereof and subject to the Optionee’s acceptance and
agreement to all of the terms and conditions and restrictions described in the Cinemark Holdings,
Inc. 2006 Long Term Incentive Plan (the “Plan”), a copy of which has been made available to the
Optionee, and to the further terms, conditions and restrictions set forth below.

     2. Exercise Price. Subject to adjustment pursuant to Section 3, the exercise price
payable by the Optionee upon exercise of this Option is set forth in Section 18 hereof.

     3. Adjustments to Number of Shares and Option Price. The number of shares of Common
Stock issuable under the Option and exercise price for such shares shall be subject to adjustments
as provided in Section 9.4 of the Plan.

     4. Tax Status. This Option will be treated as a non-qualified stock option which is
not intended to be an incentive stock option within the meaning of Section 422 of the Internal
Revenue Code of 1986, as amended (the “Code”). There is no tax consequence to the Optionee at the
time the option is granted. Under the Code, the Optionee will realize ordinary income upon
exercise of the Options to the extent that the Fair Market Value of the Common Stock at the time of
exercise exceeds the exercise price, multiplied by the number of shares covered by the Option or
portion thereof being exercised, and such exercise by the Optionee will be subject to applicable
withholding rules.

     5. Exercise of Option. Subject to the terms of the Plan and this Option Agreement,
the Options will vest ratably on a daily basis over a period of five years only so long as the
Optionee is employed by the Company or any Subsidiary, and the vested portion may be exercised, in
whole or in part, by written notice to the Company at any time and from time to time after the date
of grant. An Option may not be exercised for a fraction of a share of Common Stock.

 

 

     6. Expiration of Option. This Option shall expire and cease to be exercisable on the
tenth anniversary of the Date of Grant or such earlier date as may be specified in the Plan or in
Section 18 of this Option.

     7. Termination of Affiliation.

     (a) Subject to the following provisions of this Section 7 and Article VI of the Plan,
this Option may not be exercised unless at the time of exercise the Optionee is an Employee
of the Company or a Subsidiary.

     (b) Termination for Cause. In the event that Optionee is an Employee and the
Optionee’s employment by the Company or a Subsidiary shall terminate for Cause (as defined
in the Plan), this Option shall terminate immediately and shall be of no further force or
effect.

     (c) Death or Disability.

     (i) In the event that an Optionee’s Service to the Company or a Subsidiary is
terminated because of Optionee’s death or Disability, the Optionee or his estate or
legal representative, as applicable, shall have the right to exercise the Option at
any time within one year of termination of the Optionee’s employment by the Company
or a Subsidiary due to death or six months after the date of termination of Service
due to Disability unless a longer period is otherwise required by the Code (but in
no event later than the date on which the Option otherwise would have expired by its
terms) only to the extent the Optionee was entitled to exercise his or her Option
immediately prior to the date of death or such Disability, as applicable;
provided that, in addition to the Options held by such Optionee that
have already vested, the lesser of (i) an additional twenty percent (20%) of the
number of shares covered by the Option and (ii) the remaining amount of unvested shares covered by the Option shall become vested and exercisable on the date of
termination due to death or Disability. To the extent that this Option is not so
exercised as specified above, it shall expire at the end of the applicable period.
For purposes of this Option Agreement, Disability shall be as defined in the Plan.

     (ii) If the Optionee dies during the three-month period after the termination
of his or her Service to the Company or a Subsidiary and at the time of his or her
death the Optionee was entitled to exercise this Option, this Option shall expire
one year after the date on which his Service to the Company or a Subsidiary
terminated, but in no event, later than the date on which this Option would have
expired if the Optionee had lived. Until the expiration of such period, this Option
may be exercised by the Optionee’s executor or administrator or by any person or
persons who shall have acquired the Option directly from the Optionee by will or in
accordance with the laws of descent and distribution, upon delivery of written
notice thereof, a copy of the will, or such other evidence as the Administrator may
determine necessary to establish the validity of the transfer, but only to the
extent that the Optionee was entitled to exercise the Option at the

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date of his or her death and, to the extent the Option is not so exercised, it
shall expire at the end of such period.

     (d) Other Termination. In the event that termination of Service to the Company
or a Subsidiary terminates for reasons other than for Cause, or death or Disability pursuant
to Sections 7(b) or 7(c) above, as applicable, the Optionee shall have the right to exercise
this Option at any time within three months after such termination to the extent the
Optionee was entitled to exercise the same immediately prior to such termination. To the
extent that this Option is not so exercised, it shall expire at the end of such three-month
period beginning on the termination date.

     8. Procedure to Exercise. The Optionee (or other person entitled to exercise this
Option) may purchase shares of Common Stock of the Company subject hereto by the payment to the
Company of the Exercise Price in full. To the extent that the right to purchase shares has become
exercisable in accordance with the terms of the Plan and this Option Agreement, Options may be
exercised from time to time by written notice to the Administrator, stating the full number of
shares with respect to which the Option is being exercised and the proposed time of delivery
thereof (which shall be at least five (5) days after the giving of such notice, unless an earlier
date shall have been mutually agreed upon by the Optionee (or other person entitled to exercise the
Option) and the Administrator), accompanied by payment to the Company of the Exercise Price in full.
Such payment shall be effected (i) by certified or official bank check, (ii) if so permitted by
the Administrator, by the delivery of a number of shares of Common Stock owned by the Participant
for at least six months (or such other period as may be established from time to time by the
Administrator or required by generally accepted accounting principles) (the “Requisite Holding
Period”) duly endorsed for transfer to the Company (plus cash if necessary) having a Fair
Market Value equal to the amount of such Exercise Price (iii) if so permitted by the
Administrator, by payment with financial assistance from the Company in accordance with the
provisions of Section 7.4 of the Plan or (iv) in the case of an Option, during any period for which
the Common Stock is publicly traded (i.e., the Common Stock is listed on any established stock
exchange or readily tradable on a recognized securities market or any similar system whereby the
stock is regularly quoted by a recognized securities dealer), by a copy of instructions to a broker
directing such broker to sell the Common Stock for which such Option is exercised, and to remit to
the Company the aggregate Exercise Price of such Options (a “Cashless Exercise”) ;
provided, however, a Cashless Exercise by a Director or executive officer that involves or may
involve a direct or indirect extension of credit or arrangement of an extension of credit by the
Company or a Subsidiary in violation of Section 402(a) of the Sarbanes-Oxley Act (codified as
Section 13(k) of the Securities Exchange Act of 1934, 15 U.S.C. § 78m(k)) shall be prohibited. In
addition to payment of the Exercise Price, the Optionee shall be required to include payment of the
amount of all federal, state, local or other income, excise or employment taxes subject to
withholding (if any) by the Company or a Subsidiary as a result of the exercise of an Option. The
Optionee may pay all or a portion of the tax withholding by cash or check payable to the Company,
or, at the discretion of the Administrator, upon such terms as the Administrator shall approve, by
(i) certified or official bank check (ii) Cashless Exercise, if the Stock is publicly traded and
the cashless exercise does not violate Section 402(a) of the Sarbanes-Oxley Act; (iii) tendering
Common Stock owned by the Optionee meeting the Requisite Holding Period, duly endorsed for transfer
to the Company, with a Fair Market Value on the date of delivery equal to the withholding due for
the number of shares being exercised or

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purchased; (iv) in the case of an Option, by paying all or a portion of the tax withholding for the
number of shares being purchased by withholding shares from any transfer or payment to the Optionee
(“Stock Withholding”); or (v) a combination of one or more of the foregoing payment
methods. The Administrator will, as soon as reasonably possible, notify the Optionee (or such
Optionee’s representative) of the amount of employment tax and other withholding tax that must be
paid under federal, state and local law due to the exercise of the Option. At the time of
delivery, the Company shall, without transfer or issue tax to the Optionee (or other person
entitled to exercise the Option), deliver to the Optionee (or to such other person) at the
principal office of the Company, or such other place as shall be mutually agreed upon, a
certificate or certificates for the Option Shares after the Exercise Price and all federal, state,
local or other income, excise or employment taxes subject to withholding have been paid; provided,
however, that the time of delivery may be postponed by the Administrator for such period as may be
required for it with reasonable diligence to comply with any requirements of law.

     9. Nontransferability of Option. This Option shall be exercisable during the
Optionee’s lifetime only by the Optionee. Notwithstanding the foregoing, this Option may be
assignable or transferable by the Optionee pursuant to the laws of descent and distribution
provided that the Company shall have been furnished with written notice thereof and a copy of the
will and/or such other evidence as the Administrator may determine necessary to establish the
validity of the Transfer. Such assignee or transferee shall be subject to the same requirements,
obligations and restrictions as applied to the Optionee under this Agreement, the Plan or any other
undertaking of Optionee either as an Optionee or as a Shareholder. All transfers of an Option must
comply with the provisions of Section 5.4(c) of the Plan.

     10. Continued Employment or Retention. Subject to the terms of any Service Agreement
between the Company or any Subsidiary and the Optionee, nothing in this Option Agreement shall in
any manner be construed to limit in any way the right of the Company or any Subsidiary to terminate
an Optionee’s Service at any time, without regard to the effect of such termination on any rights
such Optionee would otherwise have under the Plan or this Option Agreement, or to give any right to
the Optionee to remain employed or retained by the Company or a Subsidiary in any particular
position or at any particular rate of compensation.

     11. Rights as Stockholder. Neither any Optionee nor the legal representatives, heirs,
legatees, distributees or Permitted Transferees of any Optionee shall be deemed to be the holder
of, or to have any of the rights of a holder with respect to, any Option Shares unless and until
such shares of Common Stock are issued to such Person and such Person has received a certificate or
certificates therefor. Upon the issuance and receipt of such certificate or certificates, such
Option holder shall have absolute ownership of the shares of Common Stock evidenced thereby,
including the right to vote such shares, to the same extent as any other owner of shares of Common
Stock, and to receive dividends thereon, subject, however, to the terms, conditions and
restrictions of the Plan, the Stockholders Agreement if the Optionee becomes a party thereto, and
any other undertakings of such holder of Common Stock.

     12. Interpretation. If and when questions arise from time to time as to the intent,
meaning or application of the provisions hereof or of the Plan, such questions shall be decided by
the Administrator in its sole discretion, as applicable, and any such decision shall be conclusive
and binding on the Optionee. The Optionee hereby agrees that this Option is granted and

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accepted subject to such condition and understanding. This Option is subject to, and the Company
and the Optionee agree to be bound by, all of the terms and conditions of the Plan under which this
Option was granted, as the same may have been amended from time to time in accordance with Section
8.1 of the Plan. A copy of the Plan in its present form is available for inspection during
business hours by the Optionee or other persons entitled to exercise this Option at the Company’s
principal office.

     13. Investment Representation. At such time or times as the Optionee may exercise
this Option, the Optionee shall, upon the request of the Company, represent in writing (i) that the
shares being acquired by the Optionee under this Option will not be sold except pursuant to an
effective registration statement, or applicable exemption from registration, under the Securities
Act of 1933, as amended, (ii) that it is the Optionee’s intention to acquire the shares being
acquired for investment only and not with a view to distribution thereof, and (iii) other customary
representations as the Company deems necessary or advisable. No shares will be issued to the
Optionee unless the Optionee provides such representations and agreements and the Company is
satisfied as to the accuracy of such representations and agreements. If so requested by the
Company, Optionee hereby agrees to provide a lock-up agreement in accordance with Section 9.8 of
the Plan.

     14. Repurchase; Restriction on Transfer; Right of First Refusal. All shares of Common
Stock purchased by the Optionee or his or her Permitted Transferee and exercisable Options held by
the Optionee at the time of termination of Service to the Company or any Subsidiary shall be
subject to right of repurchase, transfer restrictions and rights of first refusal as set forth in
Section 9.3 of the Plan.

     15. Notices. All notices and other communications hereunder shall be in writing and
shall be deemed to have been duly given if delivered personally, mailed certified or registered
mail (return receipt requested, postage prepaid) or sent by a nationally recognized overnight
delivery service, to the Optionee at the address on the signature page hereof and to the Company at
the address set forth below or at such other addresses as shall be specified in writing by the
parties by like notice:

Cinemark Holdings, Inc.

3900 Dallas Parkway

Plano, Texas 75093

Attention: General Counsel

     16. Defined Terms. All capitalized terms used herein and not otherwise defined shall
have the meanings given them in the Plan.

     17. Confidentiality. Unless otherwise permitted by the Chairman of the Board or the
President of the Company, the Optionee agrees to keep confidential the terms of this Option
Agreement (and the terms of any other Option Agreement with any other Employee or Director of the
Company known to Optionee) and shall not disclose such terms to any other Employee or otherwise.

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     18. Specified Information. This Option Agreement shall apply with respect to the
following specific information:

	 	(a)	 	Date of Grant: [                    ]
	 
	 	(b)	 	Name of Optionee:
	 
	 	(c)	 	Number of Shares Covered by Option:
	 
	 	(d)	 	Option Exercise Price Per Share:
	 
	 	(e)	 	Expiration Date: [                    ]

     19. Rules of Construction. This Option Agreement shall be construed and enforced in
accordance with the laws of the State of Delaware, other than any choice of law rules calling for
the application of laws of another jurisdiction. Should there be any inconsistency or discrepancy
between the provisions of this Option and the terms and conditions of the Plan under which this
Option is granted, the provisions in the Plan shall govern and prevail.

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, the undersigned have executed this Option Agreement to be effective as of
the Date of Grant set forth above.

	 	 	 	 	 
	 	CINEMARK HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	OPTIONEE

 	 
	 	 	 
	 	Name: 	 	 

	 	 	 	 	 
	 	Optionee’s Address: 	 	 
	 

Signature Page to Cinemark, Inc. Stock

Option Agreementexv10w1

 

Exhibit 10.1

[Execution Copy]

January 31, 2007

Mr. Michael E. Kalogris

1100 Cassatt Road

Berwyn, PA 19312

Dear Mr. Kalogris:

     You previously entered into an employment agreement with SunCom Wireless Management Company,
Inc. (f/k/a Triton Management Company, Inc.) (the “Company”) and its parent, SunCom Wireless
Holdings, Inc. (f/k/a Triton PCS Holdings, Inc.) (“SunCom”) dated as of February 4, 1998 (the
“Original Employment Agreement”) and thereafter amended by an Amendment No. 1 dated June 30, 1998,
an Amendment No. 2 dated December 31, 1998, an Amendment No. 3 dated June 8, 1999, a certain Letter
Agreement (the “2003 Letter Agreement”) dated May 6, 2003, a certain Letter Agreement (the “First
2005 Letter Agreement”) dated December 2, 2005, a certain Letter Agreement (the “Second 2005 Letter
Agreement”) dated December 14, 2005, and a certain Letter Agreement (the “2006 Letter Agreement”)
dated October 19, 2006. The Original Employment Agreement as amended by Amendments Nos. 1, 2 and
3, the 2003 Letter Agreement, the First 2005 Letter Agreement, the Second 2005 Letter Agreement and
the 2006 Letter Agreement is referred to collectively herein as the “Existing Employment
Agreement”. Except as otherwise defined herein, all capitalized terms used herein shall have the
meaning set forth in the Existing Employment Agreement.

     Each of the Company and SunCom pursuant to this letter agreement (this “Agreement”) hereby
agree to modify the terms of your Existing Employment Agreement as set forth below:

     1. Benefits Upon Termination. Notwithstanding Sections 5(b) and 5(c) of the Original
Employment Agreement or Section 8 of the Second 2005 Letter Agreement (or any other provision of
the Existing Employment Agreement), in the event of a termination of Executive’s employment at any
time following the occurrence of a Triggering Event (as hereinafter defined) (i) by the Company
Without Cause, (ii) by the Company by notice of non-renewal pursuant to Section 1 of the Second
2005 Letter Agreement, (iii) by Executive for Good Reason, or (iv) by reason of Executive’s death
or Disability, then Executive shall be entitled (in addition to any non-cash severance-related
benefits, payments or compensation provided for in the Existing Employment Agreement) to:

          (a) a severance benefit in the amount of the product resulting from multiplying Executive’s
Base Salary on the date of such termination by two (2);

          (b) an annual bonus for the calendar year during which such termination occurs (without regard
to the date during such year that such termination occurs) in the amount of the product resulting
from multiplying Executive’s full target annual bonus by two (2), which bonus shall be calculated
(i) in accordance with Section 4 of the Second 2005 Letter Agreement

 

 

Mr. Michael E. Kalogris

January 31, 2007

Page 2

and (ii) as if Executive had achieved one hundred percent (100%) of his bonus-based goals for such
calendar year; and

          (c) immediate vesting of all unvested shares of SunCom owned by Executive as of the date of
such termination (whether such shares are subject to the Plan or a restricted stock award letter
agreement or comparable agreement).

          The benefits described in Sections 1(a) and 1(b) above shall be payable in a single
lump sum as soon as practicable, but in no event more than ten (10) business days, following the
end of the Employment Period; provided that in the event that such benefits constitute “deferred
compensation” payable to a “key employee” of a publicly-traded corporation pursuant to Section 409A
of the Internal Revenue Code of 1986, as amended, such benefits shall not be payable until six (6)
months following Executive’s separation from service and shall not accrue interest during such
6-month period.

          In the event of a termination of Executive’s employment under circumstances other than those
described in this Section 1, Executive shall not be entitled to the severance benefits set
forth in this Section 1 but shall continue to be entitled to those benefits upon
termination described in Section 8 of the Second 2005 Letter Agreement and Section 1 of the 2006
Letter Agreement (in addition to any non-termination-related benefits, payments or compensation
provided for in the Existing Employment Agreement).

          As used herein, the term “Triggering Event” shall mean the earlier to occur of the following
events:

          (i) consummation of a proposed transaction involving the exchange of certain of the 9-3/8%
Senior Subordinated Notes due 2011 and 8-3/4% Senior Subordinated Notes due 2011, in each case
issued by SunCom Wireless, Inc., for shares of SunCom’s Class A Common Stock, par value $0.01 per
share (the “Restructuring”); and

          (ii) at least two (2) of the following three (3) current members of SunCom’s Board of
Directors (the “Board”) ceasing to be members of the Board for any reason: Scott Anderson, Mathias
DeVito and Arnold Sheiffer.

          The Company shall deposit the aggregate amount of Executive’s benefits described in
Sections 1(a) and 1(b) into an irrevocable trust with a third party trustee mutually
acceptable to Executive and the Company and pursuant to an irrevocable trust agreement in form and
substance reasonably satisfactory to Executive. Such trust shall be funded upon the earlier to
occur of (A) the business day immediately prior to the targeted closing date of the Restructuring
and (B) the third business day following the occurrence of a Triggering Event described in clause
(ii) above.

          Notwithstanding anything to the contrary contained herein, payment to Executive of the
benefits described in this Section 1 shall be contingent upon each of Executive and the
Company executing and delivering to the other a mutual general release of claims in the form
attached hereto as Exhibit A (the “Release”).

 

 

Mr. Michael E. Kalogris

January 31, 2007

Page 3

     2. Sale Transaction Bonus. In the event a Sale Transaction (as hereinafter defined)
is consummated at any time following the occurrence of a Triggering Event, SunCom shall establish a
segregated bank account and deposit into such account a cash bonus pool (the “Sale Bonus Pool”), to
be disbursed among Executive, the Company’s Executive Vice President and Chief Financial Officer,
and the Company’s Executive Vice President of Operations (collectively, the “Senior Managers”), in
the amount of (i) one-half of one percent (0.5%) of the Sale Proceeds (as hereinafter defined)
payable to SunCom, SunCom’s Affiliates and/or SunCom’s stockholders in such Sale Transaction in
excess of One Billion Seven Hundred Million Dollars ($1,700,000,000) and up to Two Billion Dollars
($2,000,000,000) and (ii) one percent (1.0%) of the Sale Proceeds payable to SunCom, SunCom’s
Affiliates and/or SunCom’s stockholders in such Sale Transaction in excess of Two Billion Dollars
($2,000,000,000). SunCom shall pay to Executive an amount equal to fifty percent (50%) of the
aggregate Sale Bonus Pool.

          The benefit described in this Section 2 shall be payable in a single lump sum as soon
as practicable, but in no event more than ten (10) business days, following the consummation of the
Sale Transaction; provided in the event that:

          (x) any portion of the Sale Proceeds is required by the terms of the Sale Transaction to be
placed into escrow, retained or held back by the buyer, or the payment thereof is otherwise subject
to contingencies based upon the occurrence of future events (“Contingent Sale Proceeds”), SunCom
shall deposit into the segregated account but not disburse to the Senior Managers the portion of
the Sale Bonus Pool attributable to the Contingent Sale Proceeds until such time as, and only to
the extent that, the Contingent Sale Proceeds are released from escrow, no longer retained or held
back by the buyer, or otherwise no longer subject to payment contingencies, as the case may be
(“Released Sale Proceeds”)1; and

          (y) the aggregate amount of Sale Proceeds in a Sale Transaction that do not constitute
Contingent Sale Proceeds is insufficient to trigger SunCom’s obligation to establish a Sale Bonus
Pool (e.g. such non-contingent Sale Proceeds do not exceed $1.7 billion), then SunCom shall deposit
into the segregated account but not disburse to the Senior Managers the Sale Bonus Pool
attributable to such Sale Transaction until such time as a sufficient portion of
the Contingent Sale Proceeds become Released Sale Proceeds to render the Sale Transaction
eligible for a Sale Bonus Pool.2

 

			
	1	 	For example, if a Sale Transaction generates
total Sale Proceeds of $1.85 billion with a $50 million holdback, SunCom will
deposit into the Sale Bonus Pool the amount of $750,000 upon the closing of the
Sale Transaction, distribute $500,000 to the Senior Managers immediately, and
retain $250,000 pending release of the holdback. If $40 million of the
holdback is ultimately paid to SunCom one year later, SunCom will then
distribute $200,000 to the Senior Managers and retain the remaining $50,000.
	 
	2	 	For example, if a Sale Transaction generates
total Sale Proceeds of $1.725 billion with a $50 million holdback, SunCom will
deposit into the Sale Bonus Pool the amount of $125,000 upon the closing of the
Sale Transaction but retain the entire amount pending release of a sufficient
portion of the holdback. If $30 million of the holdback is ultimately paid to
SunCom one year later, SunCom will distribute $25,000 to the Senior Managers
and retain the remaining $100,000.

 

 

Mr. Michael E. Kalogris

January 31, 2007

Page 4

          In the event that the benefits described in this Section 2 constitute “deferred
compensation” payable to a “key employee” of a publicly-traded corporation pursuant to Section 409A
of the Internal Revenue Code of 1986, as amended, such benefit shall not be payable until six (6)
months following Executive’s separation from service and shall not accrue interest during such
6-month period.

          Notwithstanding anything to the contrary contained herein, payment to Executive of the
benefits described in this Section 2 shall be contingent upon each of Executive and the
Company executing and delivering the Release.

          As used herein:

          (A) The term “Sale Transaction” means any transaction or series of transactions whereby
directly or indirectly (I) an acquisition, merger, consolidation, or other business combination
pursuant to which the business or assets of SunCom are, directly or indirectly, combined with a
third party not controlled by SunCom’s current stockholders; (II) the acquisition, directly or
indirectly, by a buyer or buyers (which term shall include a “group” of persons as defined in
Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), of equity
interests or options, or any combination thereof constituting a majority of the then outstanding
stock of SunCom or possessing a majority of the then outstanding voting power of SunCom (except as
may occur with current stockholders or debtholders as a result of a restructuring, other than a
buyer or buyer directly or indirectly controlled by the current SunCom stockholders); (III) any
other purchase or acquisition, directly or indirectly, by a buyer or buyers directly or indirectly
controlled by the current stockholders; or (IV) the formation of a joint venture or partnership
with SunCom or direct investment in SunCom for the purpose of effect a transfer of a significant
interest in SunCom to a third party.

          (B) The term “Sale Proceeds” means (I) the total amount of cash and fair market value (on the
date of payment) of all property paid or payable (including amounts paid in escrow) in connection
with the Sale Transaction (or any related transaction), including amounts paid or payable in
respect of convertible securities, preferred equity securities, warrants, stock appreciation
rights, options or similar rights, whether or not vested, plus (II) in the event of a sale of the
capital stock of SunCom and/or its Affiliates, the principal amount of all indebtedness for
borrowed money or other liabilities of SunCom and/or its Affiliates as set forth on the most recent
balance sheet, or, in the case of a sale of assets, all indebtedness for borrowed money or other
liabilities assumed by the third party. Sale Proceeds shall also include the aggregate amount of
all dividends or other distributions declared by SunCom and/or its Affiliates after the date hereof
other than normal quarterly cash dividends, and, in the case of a sale of assets, the net fair
market value of any current assets not sold by SunCom and/or its Affiliates, less the book
value of the current liabilities not assumed by the applicable buyer. For purposes of
calculating Sale Proceeds, the value of securities, whether debt or equity, that are freely
tradeable in an established public market will be determined on the basis of the average closing
price in such market for the 10 trading days prior to the closing of the Sale Transaction (the
“Valuation Date”); and the value of securities that have no established public market or other
property will be the fair market value of such securities or other property on the Valuation Date.
If Sale Proceeds include any restricted stock (i.e. stock in a public company not freely
tradeable), the

 

 

Mr. Michael E. Kalogris

January 31, 2007

Page 5

portion of the Sale Bonus Pool related thereto shall be calculated by the Board in
good faith and paid into the Sale Bonus Pool upon consummation of the Sale Transaction.

          (C) The term “Affiliate”, as applied to a specified person, is a person that directly, or
indirectly through one or more intermediaries, controls, or is controlled by, or is under common
control with, the person specified.

     3. Stock Awards. Executive shall continue to be eligible to receive additional
awards, consistent with SunCom’s and the Company’s past practice, under SunCom’s 1999 Stock and
Incentive Plan (or any successor thereto) (the “Plan”) under the provisions of such Plan as may be
approved by the Compensation Committee of the Board from time to time, but in no event shall
Executive’s awards during 2007 or the years thereafter consist of fewer shares of SunCom stock than
those awards granted to him in 2006.

     4. Notice Period for Certain Terminations. Notwithstanding Sections 5(a)(i) and
5(a)(iii) of the Original Employment Agreement (or any other provision of the Existing Employment
Agreement), from and after the date hereof:

          (a) The notice required to be given by Executive in the event of a Voluntary Termination shall
be ninety (90) days’ prior written notice to the Company; and

          (b) The notice required to be given by the Company in the event of a Without Cause termination
shall be ninety (90) days’ prior written notice to Executive.

     5. Contractual Payment Subject to Forfeiture. Notwithstanding Section 3 of the Second
2005 Letter Agreement (or any other provision of the Existing Employment Agreement), from and after
the date hereof the Forfeiture Date applicable to the $500,000 payment described in Section 3 of
the Second 2005 Letter Agreement shall be June 30, 2007.

     6. Continuation of Benefits. Notwithstanding Section 1 of the 2006 Letter Agreement
(or any other provision of the Existing Employment Agreement), from and after the date hereof the
period during which Executive will be entitled to continuation of his medical, dental and
prescription drug benefits following the events described in such Section 1 shall be 24 months.

     7. Directors’ and Officers’ and Insurance. Notwithstanding Section 4(e) of the
Original Employment Agreement (or any other provision of the Existing Employment Agreement), from
and after the date hereof the Company and SunCom shall maintain at their expense the directors’ and
officers’ insurance coverage described in the executed term sheet for the Restructuring dated
November 21, 2006 (including the 6-year “tail” coverage related thereto)
and Executive in his capacity as an officer and director of SunCom and its Affiliates shall be
entitled to coverage under such policies to the same extent as any member of the Board.

     8. All Other Provisions Remain Effective. Except as otherwise expressly modified
under this Agreement, all other terms and conditions of the Existing Employment Agreement shall
continue in full force and effect and are hereby ratified and confirmed. In the event of any

 

 

Mr. Michael E. Kalogris

January 31, 2007

Page 6

inconsistency between the terms of the Existing Employment Agreement and the terms of this
Agreement, the terms of this Agreement shall control. This Agreement may be executed and delivered
in counterparts, each of shall be deemed to be an original, but all of which shall collectively
constitute the same instrument.

     Please evidence your acceptance of the foregoing modification to the Existing Employment
Agreement by executing this Agreement where provided below and returning it to SunCom and the
Company, whereupon this Agreement shall constitute the legally valid and binding obligation of the
parties hereto, enforceable against such parties in accordance with its terms, and future
references to your Employment Agreement shall mean the Existing Employment Agreement as amended by
this Agreement.

[Signatures Contained on Next Page]

 

 

Mr. Michael E. Kalogris

January 31, 2007

Page 7

[Signature Page for Kalogris Employment Agreement Amendment]

     Pending execution of this Agreement or in the event you elect not to accept this offer, your
employment shall continue under the terms of the Existing Employment Agreement.

	 	 	 	 	 
	 	SunCom Wireless Holdings, Inc.

 	 
	 	By:  	/s/ Mathias DeVito
 	 
	 	 	Mathias DeVito 	 
	 	 	Chairman, Compensation Committee of
Board of Directors 	 
	 
	 	SunCom Wireless Management Company, Inc.

 	 
	 	By:  	/s/ Eric Haskell
 	 
	 	 	Eric Haskell 	 
	 	 	Executive Vice President and
Chief Financial Officer 	 
	 
	 	Executive

 	 
	 	/s/ Michael E. Kalogris
 	 
	 	MICHAEL E. KALOGRIS 	 
	 	 	 

 

 

	 	 	 	 	 

EXHIBIT A

Form of Release

MUTUAL RELEASE OF CLAIMS

     FOR AND IN CONSIDERATION OF the benefits to be provided to MICHAEL E. KALOGRIS, an individual
(“Executive”), in connection with the termination of his employment, as set forth in that certain
Employment Agreement by and among SunCom Wireless Holdings, Inc., a Delaware corporation, and
SunCom Wireless Management Company, Inc., a Delaware corporation (collectively, the “Company”) and
Executive, dated as of February 4, 1998 (the “Original Employment Agreement”), and thereafter
amended by an Amendment No. 1 dated June 30, 1998, an Amendment No. 2 dated December 31, 1998, an
Amendment No. 3 dated June 8, 1999, and certain Letter Agreements dated May 6, 2003 (the “2003
Letter Agreement”), December 2, 2005 (the “First 2005 Letter Agreement”), December 14, 2005 (the
“Second 2005 Letter Agreement”),
October 19, 2006 (the “2006 Letter
Agreement”), and January 31,
2007 (the “2007 Letter Agreement”) (collectively, the “Employment Agreement”), which are
conditioned upon Executive signing this Release of Claims and to which Executive is not otherwise
entitled, and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, Executive does hereby REMISE, RELEASE, AND FOREVER DISCHARGE the Company and
each of its past or present subsidiaries and affiliates, its and their past or present officers,
directors, stockholders, employees and agents, their respective successors and assigns, heirs,
executors and administrators, the pension and employee benefit plans of the Company, or of its past
or present subsidiaries or affiliates, and the past or present trustees, administrators, agents, or
employees of the pension and employee benefit plans (hereinafter collectively referred to as the
“Company Parties”), acting in any capacity whatsoever, of and from any and all manner of actions
and causes of actions, suits, debts, claims and demands whatsoever in law or in equity (“Claims”),
which Executive ever had, now have, or hereafter may have, or which Executive’s successors,
assigns, heirs, executors or administrators hereafter may have (collectively with Executive, the
“Executive Parties”, by reason of any matter, cause or thing whatsoever from the beginning of
Executive’s employment with the Company to the date of this Release of Claims that arises from, or
relates in any way to, Executive’s employment relationship and/or the termination of Executive’s
employment relationship with the Company, including but not limited to, any such Claims that have
been asserted, could have been asserted, or could be asserted now or in the future under any
federal, state or local laws, including any claims under the Pennsylvania Human Relations Act, 43
PA. C.S.A. §§ 951 et seq., as amended, the Rehabilitation Act of 1973, 29 USC §§ 701 et seq., as
amended, Title VII of the Civil Rights Act of 1964, 42 USC §§ 2000e et seq., as amended, the Civil
Rights Act of 1991, 2 USC §§ 60 et seq., as applicable, the Age Discrimination in Employment Act of
1967, 29 USC §§ 621 et seq., as amended (“ADEA”), the Americans with Disabilities Act, 29 USC §§
706 et seq., and the Employee Retirement Income Security Act of 1974, 29 USC §§ 301 et seq., as
amended, any contracts between the Company and Executive and any common law Claims now or hereafter
recognized and all Claims for counsel fees and costs; provided, however, that this Release of
Claims shall not apply to

1

 

     (a) Any entitlements arising under, or preserved by Sections 5(b) and 5(c) of the Original
Employment Agreement, Sections 6 and 8 of the Second 2005 Letter Agreement, Section 1 of the 2006
Letter Agreement, and Section 1, 2, 5 and 6 of the 2007 Letter Agreement;

     (b) Claims Executive may have as a holder of securities of the Company so long as Executive is
not the moving, initiating or lead party or that are based on criminal acts by any of the Company
Parties;

     (c) Claims by Executive for vested retirement plan benefits under the Company’s tax-qualified
retirement plans;

     (d) Claims for benefits under any insured group health plan maintained by the Company,
including any right to continuation coverage under COBRA;

     (e) Claims under any liability insurance policy maintained in accordance with Section 7 of the
2007 Letter Agreement; or

     (f) Claims by Executive for indemnification under Section 4(d) of the Original Employment
Agreement and/or to the extent that the Company has provided indemnification pursuant to the terms
of its bylaws, a resolution of the board of directors or any directors and officers liability
policy maintained by the Company.

     Executive expressly waives all rights afforded by any statute that expressly limits the effect
of a release with respect to unknown claims. Executive acknowledges the significance of this
release of unknown claims and the waiver of statutory protection against a release of unknown
claims which provides that a general release does not extend to claims that the Executive does not
know or suspect to exist in his favor at the time of executing the release, which if known by him
may have materially affected his settlement with the Company.

     Executive acknowledges that the restrictive covenants contained in Section 6 of the Original
Employment Agreement (as modified by Section 9 of the Second 2005 Letter Agreement) will survive
the termination of his employment to the extent set forth therein. Executive affirms that those
restrictive covenants are reasonable and necessary to protect the legitimate interests of the
Company, that he received adequate consideration in exchange for agreeing to those restrictions and
that he will abide by those restrictions.

     In signing this Release of Claims, Executive acknowledges his understanding that he may not
sign it prior to the termination of his employment under the Employment Agreement, but that he may
consider the terms of this Release of Claims for up to twenty-one (21) days (or such longer period
as the Company may specify) from the date Executive’s employment with the Company under the
Employment Agreement terminates. Executive also acknowledges that he is advised by the Company
Parties to seek the advice of an attorney prior to signing this Release of Claims; that Executive
has had sufficient time to consider this Release of Claims and to consult with an attorney, if he
wished to do so, or to consult with any other person of his choosing before signing; and that he is
signing this Release of Claims voluntarily and with a full understanding of its terms. Executive
further acknowledge that, in signing this Release of Claims, he has not relied upon any promises or
representations, express or implied, that are not set forth expressly in the Employment Agreement.
Executive understands that he may revoke this Release of Claims

2

 

at any time within seven (7) days after the date of his signing by written notice to the
Company and that this Release of Claims will take effect only upon the expiration of such seven-day
revocation period and only if Executive has not timely revoked it.

     In further consideration of Executive’s execution of this Release of Claims and other
consideration provided to the Company by Executive pursuant to the Employment Agreement, the
Company, on behalf of itself and the other Company Parties, hereby executes this Release of Claims
and does hereby REMISE, RELEASE, AND FOREVER DISCHARGE Executive and the other Executive Parties,
of and from any and all manner of Claims, which the Company Parties, now have, or hereafter may
have, by reason of any matter, cause or thing whatsoever from the beginning of Executive’s
employment with the Company to the date of this Release of Claims that arise from, or relate in any
way to, Executive’s employment relationship with the Company or the termination thereof, including
but not limited to, any such Claims that have been asserted, could have been asserted, or could be
asserted now or in the future under any federal, state or local laws, any such Claims that are
based on contracts between the Company and Executive and any such Claims that are now or hereafter
recognized under the common law and any such claims for counsel fees and costs, but in no event
shall this release apply to any claim based upon any criminal act by Executive or on any act of
Executive wholly outside the scope of his duties and employment.

	 	 	 	 	 	 	 
	 	 	SunCom Wireless Holdings, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	SunCom Wireless Management Company, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Executive	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	MICHAEL E. KALOGRIS	 	 

3

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