Document:

exv10w52

 

EXHIBIT 10.52

May 13, 2002

Mr. David L. Mochalski

Dear Mr. Mochalski:

I am pleased on behalf of En Pointe Technologies (“En Pointe” or “the Company”) to submit to you
the following offer of employment as a Area Director. This agreement supercedes any and all
previous employment agreements, with the key points of as outlined below and in Attachments “A”
through “D” which follow.

	 	 	 	 	 
	EFFECTIVE

DATE

	 	•
	 	You will commence your employment with En Pointe on January 7, 2002
	 
	 	 	 	 
	 

	 	•
	 	Upon acceptance, this date will also serve as your hire date for
benefit and length-of-service purposes in accordance with applicable Company
policies.
	 
	 	 	 	 
	JOB DUTIES

	 	•
	 	Continuing to report to the Senior Vice President-Sales or
designee and based out of En Pointe’s Corporate Office, you shall perform all
the usual duties of Area Director, including (but not limited to) those
outlined in ATTACHMENT “A” of this agreement.
	 
	 	 	 	 
	COMPENSATION

	 	•
	 	For this full-time, exempt position, you shall be compensated as outlined in ATTACHMENT “B” of this agreement.
	 
	 	 	 	 
	BENEFITS

	 	•
	 	The Company will provide you with benefits pursuant to our regular
Company policies. A brief summary of the major benefits for which your
position is eligible appears as ATTACHMENT “C” of this agreement. For more
information, please refer to En Pointe Technologies’ Employee Handbook or
contact Corporate Human Resources.
	 
	 	 	 	 
	GENERAL

PROVISIONS

	 	•
	 	You agree to abide by all of the general provisions that govern
this agreement and are shown in ATTACHMENT “D” of this agreement.

Please finalize your acceptance of this agreement by initialing the bottom of each page of this
letter (including each page of Attachment A through D inclusive) where indicated, as well
as signing the “Acceptance Clause” at the end of this letter. Return the signed letter within
seven (7) days from the date of this letter to: Robert D. Chilman, Vice President-Human Resources,
En Pointe Technologies, 100 North Sepulveda Blvd, 19th Floor, El Segundo, CA 90245.

It is understood and agreed that if En Pointe Technologies does not receive your signed acceptance
by the due date indicated above, this offer shall expire. Please bring proof of your identity and
your authorization to work in the United States on your first day of employment and a voided
personal check (to set up direct payroll deposit to your personal checking account) on your first
day of employment.

Welcome to the En Pointe Technologies team! We look forward to working with you to fulfill our
mission of becoming the premiere provider of information technology and technical services for
corporate clientele.

Sincerely,

/s/ Robert D. Chilman

Robert D. Chilman

Vice President-Human Resources

ACCEPTANCE CLAUSE: My signature below indicates that I have read, understand
and accept the terms and conditions which have been outlined in this offer
letter and all of its Attachments A through D which follow.

	 	 	 
	Employee Signature:

	 	Date: 05/28/02
	 
	 	 
	/S/ David L. Mochalski
	 	 

 

 

Mr. David L. Mochalski

May 13, 2002 

Page 2

Attachments for Offer Letter of

David L. Mochalski

THE EMPLOYEE MUST READ AND INITIAL THE BOTTOM OF EACH PAGE

FOR ALL OF THE FOLLOWING ATTACHMENTS:

	 	 	 	 	 
	 

	 	ATTACHMENT A:
	 	JOB DUTIES FOR AREA DIRECTOR
	 
	 	 	 	 
	 

	 	ATTACHMENT B:
	 	COMPENSATION
	 
	 	 	 	 
	 

	 	ATTACHMENT C:
	 	BENEFITS SUMMARY
	 
	 	 	 	 
	 

	 	ATTACHMENT D:
	 	GENERAL PROVISIONS

READ
& AGREED (INITIALS):

DM:___ (EMPLOYEE)

RC:_____ (EN POINT TECHNOLOGIES)

 

 

Mr. David L. Mochalski

May 13, 2002

Page 3

ATTACHMENT A: JOB DUITES FOR AREA DIRECTOR

	 	 	 
	OVERVIEW

	 	The position of Area Director achieves or exceeds assigned sales objectives in a specific geographic market, industry territory or territories
by coordinating and directing the operation of assigned branches and personnel to ensure efficiency and profitability. The Area Director
shares responsibility for the ability of the sales force in assigned branches to develop profitable new customer accounts, maintain profitable
existing customer accounts, and ensure ongoing customer satisfaction through good service and follow-up.
	 
	ESSENTIAL

RESPONSIBILITIES

	 	The essential responsibilities and activities described below are typical for an incumbent in this job. This is not intended as an exhaustive
list of tasks performed; depending on organizational requirements, other duties may be assigned.

	 	1.	 	Building a team to profitably support the company’s products and services to customers in the territories associated with assigned branch
offices and markets. As of this writing, “assigned branch offices and markets” is defined to mean the En Pointe Technologies’ sales
organizations in the Boston, Denver, Minneapolis (specifically those Minneapolis (specifically those Minnesota staff not otherwise assigned to
other Directors), New York, Portland, San Jose and Seattle markets. For the purposes of calculating compensation under this Agreement in
markets reporting to multiple Directors, only those sales staff assigned to you shall be recognized. (Any change in assigned branches or
markets must be in writing with the written pre-approval of the Senior Vice President-Sales.)
	 
	 	2.	 	Managing the overall direction, coordination, and evaluation of assigned Branch Offices and their related markets to achieve financial
targets.
	 
	 	3.	 	Assisting the Senior Vice President-Sales in formulating and administering organization policies by performing the following duties
personally or through subordinate managers:

	 	3.1.	 	Participating in formulating and administering company policies and developing long-range goals and objectives.
	 
	 	3.2.	 	Directing and coordinating the activities of assigned Branch Offices for which responsibility is delegated to further attainment of
goals and objectives, such as:
	 
	 	3.3.	 	Obtaining profitable sales at assigned Branch Offices and their associated territories.
	 
	 	3.4.	 	Meeting or exceeding assigned quotas.
	 
	 	3.5.	 	Developing accounts or territories of your assigned Branch Offices to realize their full sales potential.
	 
	 	3.6.	 	Reviewing and analyzing activities, costs, and operations of assigned Branch Offices to track their progress toward stated goals and
objectives.
	 
	 	3.7.	 	Conferring with the appropriate Corporate Office and field personnel to review achievements and discuss required changes in goals or
objectives resulting from current status and conditions.

	 	4.	 	Carrying out supervisory responsibilities in accordance with the organization’s policies and applicable laws; include interviewing, hiring,
and training employees; planning, assigning, and directing work; appraising performance; rewarding and disciplining employees; addressing
complaints and resolving problems.
	 
	 	5.	 	Attending Company training, meetings or other job-related activities as required.
	 
	 	6.	 	Preparing, maintaining and submitting sales and call records or other job-related documentation (paper or electronic) in an accurate and
timely fashion. Includes performing accurate data entry to En Pointe’s information system as appropriate.
	 
	 	7.	 	Maintaining and utilizing job-related skills and knowledge, such as:

	 	7.1.	 	Professional presentation, selling, interpersonal and written/oral communication skills;
	 
	 	7.2.	 	A thorough and current knowledge of the company’s products, services, sales strategies and policies regarding pricing, delivery
installation and technical services offerings;
	 
	 	7.3.	 	A current awareness of competitor current product offerings and pricing.

	 	8.	 	Conducting and managing business in accordance with the Company’s policies and procedures; includes:

	 	8.1.	 	Maintaining a high standard of business and ethical conduct with our customers, vendors and employees;
	 
	 	8.2.	 	Following workplace operating and environmental, health and safety procedures and guidelines.

	 	 	 	 	 	 	 
	 
	 OTHER

RESPONSIBILITIES

	 	 	1.	 	 	Performing all of your work to your highest standards of skill, competency and efficiency;
	 
	 	 	 	 	 	 
	 

	 	 	2.	 	 	Devoting your full business time, attention and energy to En Pointe exclusively (other than as
specifically allowed in writing by En Pointe); and
	 
	 	 	 	 	 	 
	 

	 	 	3.	 	 	Giving your best efforts and skill in the best interest of En Pointe.

READ
& AGREED (INITIALS):

DM:___ (EMPLOYEE)

RC:_____ (EN POINT TECHNOLOGIES)

 

 

Mr. David L. Mochalski

May 13, 2002

Page 4

ATTACHMENT B: COMPENSATION

TABLE 1 OF 6: CORE COMPENSATION

(En Pointe Technologies reserves the right to change, amend, modify or cancel compensation terms as business conditions dictate.)

	 	 	 	 	 	 	 
	Base Wage or Salary (*)	 	 	 	Bonus (*)
	 
	•

	 	A base salary of five thousand and no cents
($5,000.00) per semi-monthly pay period.
	 	•
	 	Employee shall be eligible for            quarterly bonus at the sole discretion of the
Company’s Chief Executive Officer (CEO) and
Board of Directors. Any quarterly bonus
considered under this
	•

	 	There are twenty-four (24) semi-monthly pay
periods in a payroll year.
	 	 	 	Agreement shall be
further subject to the condition that the
Company’s cumulative pre-tax net income is
positive at time of bonus consideration. As
used in this Agreement, “pre-tax net income”
shall mean positive pre-tax income of the
Company after including the accrued cost of
any bonuses paid to Company executives.
	 
	 	 	 	 	 	 
	 

	 	 	 	•
	 	The CEO may elect to waive (in
writing) the aforementioned profitability
requirement for bonus in any given quarter;
however, any waiver of any requirements of
this section, or the failure of any party to
exercise any right granted to it hereunder
shall not operate or be construed as the
waiver of any subsequent breach by such other
party nor the waiver of the right to exercise
any such right.
	 
	 	 	 	 	 	 
	 

	 	 	 	•
	 	If any bonus is declared or paid, it
shall be subject to such withholding as is
required by law.

TABLE 2 OF 6: EXPENSE REIMBURSEMENT

 

	 	1)	 	You shall be reimbursed through Corporate Accounts Payable for those reasonable and actual
expenses incurred in the performance of your job duties as outlined in Attachment “A” of this
Agreement that are:

	 	a)	 	Approved in writing by your immediate manager prior to being
incurred; AND
	 
	 	b)	 	Are documented and submitted in accordance with applicable Company policies and
practices

	 	2)	 	Reimbursement applies to reasonable business airfare, lodging and customer entertainment.
There is NO reimbursement for cell phones or mileage.

TABLE 3 OF 6: PAYMENT SCHEDULE

Time schedule and other guidelines for payment of compensation are as follows:

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	1.	 	 	All employee wages, salaries, commission and bonuses are paid through payroll.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	2.	 	 	Designated paydays are the seventh (7th) day and the twenty-third (23rd) day of each month.
	 
	 	 	 	 	 	 	 	 	 	 
	General

	 	 	 	 	 	 	2.1.	 	 	The payroll of the seventh (7th) pays wages, salaries and draws for work performed between the
sixteenth (16th) day through the last day of the prior month. Example: Payday of July 7, 2000 pays
wages, salaries and draws for June 16, 2000 through June 30, 2000.
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	2.2.	 	 	The payroll of the twenty-third (23rd) pays wages, salaries and draws for work performed between
the first
(1st)
day through the fifteenth
(15th)
day of the current month. Example: Payday
of July 23, 2000 pays wages, salaries and draws for July 1, 2000 through July 15, 2000. The payroll of the
twenty-third (23rd) pays also pays commissions as outlined below.
	 
	 	 	 	 	 	 	 	 	 	 
	Direct Deposit	 	 	1.	 	 	You agree to have your paychecks transmitted via Direct Deposit to your bank checking and/or savings account.

READ
& AGREED (INITIALS):

DM:___ (EMPLOYEE)

RC:_____ (EN POINT TECHNOLOGIES)

 

 

Mr. David L. Mochalski

May 13, 2002

Page 5

ATTACHMENT B: COMPENSATION (CONTINUED)

TABLE 4 OF 6: COMPENSATION RELATED BUSINESS DEFINITIONS (LISTED IN ALPHABETICAL ORDER)

 

	 	1.	 	ADJUSTMENTS: Any Cost of Goods Sold that is
not
a PRODUCT COST or a TRANSACTION COST. Adjustments can be positive or
negative; the examples below are references only and are
not all-inclusive.

	 	1.1.	 	Examples of positive adjustments are rebates, properly approved load reductions, and eligible price
protection.
	 
	 	1.2.	 	Examples of negative adjustments are chargebacks, such as for invoices over 74-days old; system generated
credits to customers; inbound & outbound freight; return product fees; Account Executive expenses (including
travel); special order charges; small order charges; travel expenses for services technical labor; special
arrangements that are directly associated with a specific customer or project, such as van rentals, leasing or
purchasing.

	 	2.	 	BASE SALARY: A fixed dollar amount paid for all hours worked in a pay period, regardless of how many hours or how
few. If applicable, paid time off is calculated against base salary only, not against total earnings.
	 
	 	3.	 	BLENDED GROSS MARGIN: The GROSS MARGIN for all sales (hardware, services, software) invoiced by an Account Executive
under his or her unique identifying sales ID numbers for a given period (sales month or sales quarter.)
	 
	 	4.	 	COMMISSION: Percentage of GROSS MARGIN DOLLARS
paid to Account Executives and/or Customer Sales Representatives per
En Pointe’s published Sales Plans guidelines. All commissions are considered earned only when they are legitimately
invoiced through the appropriate company billing systems and delivered to the customer and paid for by the customer.
	 
	 	5.	 	COST OF GOODS SOLD: The sum of all
PRODUCT COSTS, TRANSACTION COSTS and
ADJUSTMENTS as defined by En Pointe in its
automated and manual systems; applicable to products or services sold to a customer.
	 
	 	6.	 	DRAW: Compensation paid to an Account Executive as an advance (i.e., loan) against future earned commission. All
draws are paid at the discretion of En Pointe Technologies; the standing expectation is that any Account Executive who
receives a draw will generate sufficient commissions to cover their draw, regardless of whether the draw is guaranteed
or recoverable.
	 
	 	7.	 	GROSS MARGIN: A percentage calculated by dividing
GROSS MARGIN DOLLARS (GMD) by sales for a given period (sales month
or sales quarter). Example: If GMD = $50,000 and sales = $500,000, then GROSS MARGIN = 10%.
	 
	 	8.	 	GROSS MARGIN DOLLARS (GMD): The difference between the price En Pointe invoices its customers for products and/or
services (before any applicable sales tax) and En Pointe’s
COST OF GOODS SOLD. Example: If the customer invoice is
for $1,000 (before tax) and the COST OF GOODS SOLD is $950, the GROSS MARGIN DOLLARS on the order total $50. Also
referred to as “Final Commissionable GMD” in the commission statements that are issued monthly on the 23rd of
each month.
	 
	 	9.	 	PRODUCT COST: The amount as defined by En Pointe in its automated and manual systems that applies to products or
services sold to a customer, which is based on PURCHASE
PRICE plus mark-ups (mark ups may vary from product to product,
item to item, vendor to vendor, etc.)
	 
	 	10.	 	PURCHASE PRICE: The amount En Pointe pays a vendor for a product or service.
	 
	 	11.	 	RAMP UP PERIOD: Up to the first six (6) months of a new hire Account Executive’s employment; the time allotted to
build a book of business, (re)establish customer relations and generate sufficient commissions to meet or exceed any
draw paid within the ramp up period. See En Pointe Technologies’ “Sales Plan” for related information.
	 
	 	12.	 	REVENUE: The gross dollars paid by a customer to En Pointe for its products and/or services.
	 
	 	13.	 	TRANSACTION COST: The costs
as defined by En Pointe for processes involved in selling products or services to
customers. TRANSACTION COSTS are costs in addition to En
Pointe’s PRODUCT COSTS.

READ
& AGREED (INITIALS):

DM:___ (EMPLOYEE)

RC:_____ (EN POINT TECHNOLOGIES)

 

 

Mr. David L. Mochalski

May 13, 2002

Page 6

ATTACHMENT B: COMPENSATION (CONTINUED)

TABLE 5 OF 6: COMPENSATION RELATED BUSINESS PRACTICES

 

You agree to support and/or implement the following business practices terms and conditions (see other portions of TABLES 1 THROUGH 6 of this Attachment “B” for examples
of other adjustments and related definitions):

	 	1.	 	ORDER ENTRY: You agree to ensure that the all of the orders you enter are entered accurately into En Pointe’s information system as follows:

	 	1.1.	 	To the greatest extent possible, services should be entered under sales orders which are separate from product sales orders.
	 
	 	1.2.	 	Services should not be bundled in with product sales, except for those services SKUs which are recognized by the Company as product, such as service packs and
warranty upgrades, or Services which are provided as part of a lease. All other exceptions to the requirement of not bundling services requires the prior written
approval of either the Senior VP-Sales or the VP-Global Services. Bundling of services as product in violation of the above guidelines is grounds for corrective
action, up to and including, termination of employment.

	 	2.	 	FEES: Fees for RMAs (return product) and Change Orders will be charged per Company policy.
	 
	 	3.	 	FREIGHT COSTS: Actual freight charges from vendors and carriers – either out of En Pointe Technologies’ Configuration Center or elsewhere – will be charged against GMD
as a cost of doing business (cost-of-goods).
	 
	 	4.	 	CONFIGURATION COSTS: Configuration charges from En Pointe Technologies Configuration Centers will be charged against GMD.
	 
	 	5.	 	CHARGE BACK POLICIES:

	 	5.1.	 	CHARGEBACKS FOR UNPAID INVOICES: En Pointe Technologies reserves the right to charge back the amount of commission on all unpaid invoices that are outstanding
more than seventy-four (74) days from invoice date.
	 
	 	5.2.	 	CHARGEBACKS (FOR REASONS OTHER THAN UNPAID INVOICES): In the event that a draw or commissions credited to an Account Executive is charged back, or in the event
that any funds are advanced to the Account Executive which are subsequently discovered to be, or are deemed to be, unearned, the Account Executive shall be liable
for the return of said funds within ninety (90) days from the date that monies are advanced or credited to him/her.

	 	6.	 	SPIFFS, VENDOR ADJUSTMENTS AND REBATES: At the discretion of the Company, sales personnel – typically Account Executives and/or Customer Sales Representatives may be
eligible to participate in vendor incentive programs that are designed to increase the sales rate of certain products. Said participation shall be subject to the
following guidelines:

	 	6.1.	 	The program must be approved by En Pointe Technologies prior to employee participation.
	 
	 	6.2.	 	En Pointe Technologies reserves the right to place a minimum gross margin requirement on the program to ensure profitable transactions and, from time to time,
the program may have a minimum qualifier and a maximum payout (details are typically included in the program announcement.) In the event that any minimum margin
guidelines are not met, En Pointe Technologies reserves the right to reverse any spiff and rebate payments, with the funds reverting to the Company.
	 
	 	6.3.	 	Employee eligibility for, and/or participation in, all spiffs, vendor adjustments and rebates ceases upon termination of employment. In order to receive a
vendor promotion or spiff, the Account Executive must be an active employee of En Pointe Technologies at the time of payment is made to En Pointe.

	 	7.	 	SALES SUPPORT CHARGES:

	 	7.1.	 	CSR: If an Account Executive has more than one (1) Customer Sales Representative (CSR), then the full cost of the first CSR is borne by the Company. For the
second CSR and beyond, the Account Executive’s GMD shall be charged on a monthly basis for the cost of salary plus benefits burden.
	 
	 	7.2.	 	IAM: The Account Executive’s monthly product commission rate will be reduced 2.5% for each account supported by one or more IAM. Executives supported by Inside
Account Managers (IAMs) will be reduced 2.5%. Examples:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	EXAMPLE #1	 	EXAMPLE #2
	 	 	ACCOUNT A	 	 	 	ACCOUNT B	 	ACCOUNT A	 	 	 	ACCOUNT B
	Account GMD for the month:

	 	$	100,000	 	 	 	 	$	40,000	 	 	$	100,000	 	 	 	 	$	40,000	 
	Number of Inside Account Managers (IAM’s) per Account:

	 	 	1	 	 	 	 	 	1	 	 	 	2	 	 	 	 	 	0	 
	Unadjusted Product Commission Rate:

	 	 	22.5	%	 	 	 	 	22.5	%	 	 	22.5	%	 	 	 	 	22.5	%
	Less IAM Charge:

	 	 	- 2.5	%	 	 	 	 	- 2.5	%	 	 	- 5.0	%	 	 	 	 	- 0.0	%
	Adjusted Product Commission Rate:

	 	 	20.0	%	 	 	 	 	20.0	%	 	 	17.5	%	 	 	 	 	22.5	%
	Unadjusted Product Commission:

	 	$	22,500	 	 	 	 	$	9,000	 	 	$	22,500	 	 	 	 	$	9,000	 
	Adjusted Product Commission:

	 	$	20,000	 	 	 	 	$	8,000	 	 	$	17,500	 	 	 	 	$	9,000	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Commission Difference -$

	 	 	 	 	 	- $3,500
	 	 	 	 	 	 	 	 	 	- $5,000	 	 	 	 
	Total
Commission Difference -%:

	 	 	 	 	 	- 2.5%
	 	 	 	 	 	 	 	 	 	- 3.6%	 	 	 	 

	 	8.	 	SPECIAL ORDER CHARGE: Special orders for each item that is not available through our EDI vendors will incur a markup determined by En Pointe Technologies. Special
orders are defined as products obtained from 3rd party vendors. This transaction cost covers the additional business expense of manually handling and
processing these orders.

READ
& AGREED (INITIALS):

DM:___ (EMPLOYEE)

RC:_____ (EN POINT TECHNOLOGIES)

 

 

Mr. David L. Mochalski

May 13, 2002

Page 7

ATTACHMENT B: COMPENSATION (CONTINUED)

TABLE 6 OF 6: COMMISSIONS & EMPLOYMENT

	 	1.	 	WHEN COMMISSIONS ARE EARNED – Commissions are considered “earned” for pay purposes under this Agreement under the following guidelines:

	 	1.1.	 	Commissions are deemed “earned” only for those En
Pointe Technologies products and services for which all of the following
conditions have been met:

	 	1.1.1.	 	They had been legitimately invoiced through the appropriate
company billing systems; and
	 
	 	1.1.2.	 	Delivered to the customer; and
	 
	 	1.1.3.	 	Paid for by the customer within seventy-four (74) days.

	 	1.2.	 	In accordance with the above, deferred revenue (i.e., revenue where the customer pays in advance for products and services
delivered over time) shall be recognized for pay purposes under this agreement only to the extent that En Pointe’s GAAP accounting
practices allow it to recognize the cause associated with said revenue. Example: customer pays $300,000 on January 1st
for services delivered from January 1st through March 31st at the rate of $100,000 per month. On February
23rd – the payday for the calendar sales month of January – En Pointe will pay the Account Executive for services revenue
on $100,000 because only one (1) month of services has been delivered at that point. The Account Executive will not be paid on
February 23rd against $300,000 in revenue, because not all the services which go against the full $300,000 have been
delivered. Similarly, because all eligibility for commissions ceases when employment terminates for any reason, an Account
Executive will not be paid for any deferred revenue which is recognized after the date of termination. (See Item 4 of this table
below.)

	 	2.	 	COMMISSION PAYMENTS ARE ADVANCES — For commission calculation purposes, all products and services invoiced to a customer within a given
calendar month may contribute towards that month’s commission calculation. However, any and all commission payments made prior to En
Pointe Technologies receiving payment from a customer are considered advances on earnings. Although it is not required to do so, En
Pointe Technologies elects to advance commission earnings against the payment schedules outlined in the Company’s Sales Plans and/or
employment agreements. Commissions are not considered earned unless all of the conditions outlined in Item 1 above have been met.
	 
	 	3.	 	GRAY MARKET TRANSACTIONS — A commission credited to you is subject to delay, modification or voiding if any transaction is illegal,
unethical or is a “gray market” transaction. A “gray market” transaction is defined as sales to any entity or individual that resells
product purchased from En Pointe Technologies.
	 
	 	4.	 	COMMISSIONS AT TERMINATION – In the event of termination of employment for any reason, eligibility for any and all commissions under
this Agreement ends on the date of termination or last day of work, whichever is sooner. Eligibility for final commission shall further
be subject to the following guidelines:

	 	4.1.	 	No Advance – Upon termination of employment for any reason, there will be no advance of (final) commission for any reason.
Final commission shall be calculated and paid upon receipt of funds from the customer, and as applicable, be further subject to
adjustments as outlined below.
	 
	 	4.2.	 	Post Termination Adjustments - Any negative commissions and reversals generated for up to ninety (90) days following the last
day of active employment will be applied against final commission payment(s). Any monies advanced in excess of earnings will be
recoverable from any wages or commissions due. The cost of any En Pointe Technologies assets not returned to the company will also
be deducted from final commission earnings to the extent allowed by applicable employment law.
	 
	 	4.3.	 	Eligibility – Eligibility for all product and services commission extends only to those orders which have been invoiced up
through the date of the Plan participant’s termination or last day of work, whichever is sooner, and is further subject to the
contents of this TABLE 9, including (a) meeting all conditions for being considered earned; (b) guidelines for payment against
deferred revenue and (c) any applicable adjustments and/or charge backs (such as charge backs for invoices unpaid over 74 days,
and/or chargeback as outlined in the applicable portions of TABLES 6 through TABLE 9 of this Attachment “B”).

	 	5.	 	LEAVES OF ABSENCE

	 	5.1.	 	If a Plan participant departs on an approved medical leave of absence for a full calendar month or more during the calendar
year, this Plan is null and void during the official leave period.
	 
	 	5.2.	 	(S)he will earn compensation up to the date in which leave commences and then re-commencing as of the date in which the
individual returns from leave. Product or services business that are invoiced during the leave period will not be counted towards
the participant’s compensation. For the purposes of calculating the employee’s disability benefit while on an approved medical
leave of absence, his/her eligible wages will be adjusted accordingly by En Pointe Technologies’ Corporate Human Resources
Department.

	 	6.	 	DEATH OF EMPLOYEE

	 	6.1.	 	In the event of death of the employee covered by this agreement, the spouse or other designated beneficiary will receive any
unpaid wages and/or commissions due on behalf of the employee.

READ
& AGREED (INITIALS):

DM:___ (EMPLOYEE)

RC:_____ (EN POINT TECHNOLOGIES)

 

 

Mr. David L. Mochalski

May 13, 2002

Page 8

ATTACHMENT C: BENEFITS SUMMARY

The following is a brief summary of the major benefits for which your position is eligible against your original date of hire.

For more information, please refer to En Pointe Technologies’ Employee Handbook or contact Corporate Human Resources.

	 	 	 	 	 	 	 	 	 
	Benefit	 	When Eligible	 	 	 	Summary Description
	 
	 	 	1st of month following hire date.	 	•	 	Medical, dental & vision (partly paid for by employee
contributions); can be elected separately or in combination. Available as
either an HMO or indemnity (PPO) type plan (varies by state).
	 
	 	 	 	 	 	 	 	 
	Group Health	 	 	 	•	 	Life, Accidental Death & Dismemberment of 1x annual salary ($30K
min / $200K max) or $55,200 for commission-only employees (100% company
paid).
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Long-Term Disability Insurance (100% company paid).
	 
	 	 	 	 	 	 	 	 
	 	 	1st of month following six (6)
months of employment.	 	•	 	Allows eligible employees to set aside money through payroll
deduction on a pre-tax basis to be reimbursed for:
	 
	 	 	 	 	 	 	 	 
	Section 125 Flexible
Spending Account	 	 	 	•	 	Dependent child care expenses (up to $5,000 per plan year); or
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	•	 	Eligible medical expenses which are not normally reimbursed under
their En Pointe’s or spouse’s coverage (up to $3,000 per plan year).
	 
	 	 	 	 	 	 	 	 
	Employee Stock

Purchase Plan	 	First offering period after ninety (90)
days of employment (provided assigned work
schedule is not less than 20 hours per week
for 5 months per calendar year).	 	•	 	Allows purchase of En Pointe Technologies stock at a 15% discount
through voluntary payroll deduction in whole percentage increments from 1%
through 20%.

	 	 	 	 	•	 	 Enter twice a year on designated offering periods that are
established at Company discretion.
	 
	 	 	 	 	 	 	 	 
	401(k) Plan	 	Start of first (1st) calendar
quarter after approximately six (6) months
of continuous employment.	 	•	 	 Employee Retirement Savings Plan funded through pre-tax employee
contributions (voluntary payroll deduction).
	 
	 	 	 	 	 	 	 	 
	 	 	As of date of hire.	 	Accrued each pay period, and usable as accrued.
	 	 	 	 	Years of	 	Accrued Per
	 	 	 	 	Employment	 	Pay Period
	 

	 	 	 	 
	 	 
	 	 
	Vacation Time (*)	 	 	 	1 to 5	 	3.34 hours (equal to 80 hours a year maximum)
	 	 	 	 	5 and over	 	5.00 hours (equal to 120 hours a year maximum)
	 
	 	 	 	 	 	 	 	 
	Sick Time (*)(**)	 	As of date of hire, on a calendar year
basis.	 	Calendar year benefit as follows:

1st Calendar Year (hire date through year-end): 40 hours

2nd Calendar Year onward: 40 hours

	 
	 	 	 	 	 	 	 	 
	Holidays (*) (**)	 	As of date of hire, on a calendar year
basis.	 	•	 	Eight and a half holidays: New Year’s Day, President’s Day, Memorial
Day, July 4th, Labor Day, Thanksgiving Day, Thanksgiving Friday,
half-day Christmas Eve, Christmas Day.
	 
	 	 	 	 	 	 	 	 
	Floating Holiday

(*) (**)	 	After 1 year of employment, then on an
anniversary year basis thereafter.	 	•	 	One day per anniversary year.
	 
	 	 	 	 	 	 	 	 
	 	 	1st of month following 30 days
of employment.	 	•	 	Allows eligible En Pointe employees in locations without a State
Disability Insurance program to be covered by a short-term disability plan
modeled on California SDI.
	 
	 	 	 	 	 	 	 	 
	Short-Term Disability

(Outside California)	 	 	 	•	 	This benefit is 100% company paid and is automatically applied to
eligible employees in applicable En Pointe locations; no “enrollment” is
necessary.
	 
	 	 	 	 	 	 	 	 
	Business Travel

Accident Insurance	 	1st of month following 30 days
of employment.	 	•	 	Coverage in the amount of $100,000. This benefit is 100% company
paid.

 

			
	(*)	 	Paid time calculated off of base wage or salary only.
	 
	(**)	 	Unused paid time does not carry over and has no monetary value upon termination of employment.

READ & AGREED (INITIALS):

DM:___ (EMPLOYEE)

RC: ____ (EN POINTE TECHNOLOGIES)

 

 

Mr. David L. Mochalski

May 13, 2002

Page 9

ATTACHMENT D: GENERAL PROVISIONS

You understand and agree that this offer is subject to all of the following general provisions A through L listed below:

	 	 	 	 	 	 	 
	A.
Employment Status

	 	 	1.	 	 	Your employment with En Pointe Technologies is “at
will,” which means that it may be terminated for any reason,
with or without cause or notice, at any time by either you or
the Company. The “at-will” nature of this employment
relationship is the complete statement of the relationship in
that no other part of this letter, or any other Company
documents or oral or written statements issued by any Company
representative can vary the “at-will” nature of this
relationship. Similarly, neither the presence nor absence
from time to time of disciplinary procedures, such as
warnings or probation, shall alter the “at-will” nature of
your employment relationship with En Pointe Technologies.
	 
	 	 	 	 	 	 
	 

	 	 	1.	 	 	During your employment by En Pointe Technologies, you
agree not to act in any manner contrary to the best interests
of the company, its parent, subsidiary or affiliated
companies, or its employees.
	 
	 	 	 	 	 	 
	B.
Business Conduct

	 	 	2.	 	 	During your employment by En Pointe, you will not (other
than specifically allowed in writing by En Pointe) engage in,
or have any financial interest in, or render any service in
any capacity to any competitor, customer or supplier of En
Pointe, and forever thereafter, you will, upon demand (or
termination of your employment) immediately return all
Company property and you will not (other than specifically
allowed in writing by En Pointe) solicit or encourage a
Company employee to work elsewhere or disclose or use any
trade secret or confidential information of En Pointe. You
understand that the term “trade secret” or “confidential
information” means any formula, pattern, compilation,
program, device, method, technique or process and includes,
without limitation, all other information concerning En
Pointe, any parent, any subsidiary, any affiliate, any
supplier or any customer (including, but not limited to,
information regarding the peculiarities, preferences and
manner of doing business) that is not generally known to the
public or to other persons.
	 
	 	 	 	 	 	 
	 

	 	 	3.	 	 	You also agree that your remedy at law for your breach of
this paragraph is inadequate and that En Pointe, in addition
to any other remedy, can seek appropriate injunctive relief
from an appropriate California court or arbitrator, at is
election.
	 
	 	 	 	 	 	 
	C.
Company Policies

	 	 	1.	 	 	You will be subject to and you will adhere to all of
En Pointe’s policies which are generally applicable to En
Pointe’s employees including but not limited to, all policies
relating to standards of conduct, conflicts of interest and
compliance with the Company’s rules and obligations. You
represent that you have no agreement with or obligations to
anyone or anything that would in any way conflict with any of
your obligations contained in this agreement. Further, you
will immediately notify En Pointe in writing of any other
employment or work that you accept during your employment
with En Pointe.
	 
	 	 	 	 	 	 
	 

	 	 	1.	 	 	Although you are free to disclose the amount of your
wages, you agree not to disclose the other contents of this
document or to disseminate any other information about this
document to any party with the exception of government
authorities or legal counsel. This obligation shall survive
the execution of this agreement and shall extend for a period
of two (2) years from the date of execution thereof.
	 
	 	 	 	 	 	 
	D.
Confidentiality

	 	 	2.	 	 	You acknowledge that you will receive from En Pointe
Technologies certain confidential trade information about En
Pointe Technologies operations including, but not limited to,
customer identity, contractual terms, pricing and sourcing
information and business planning data. You agree not to
disclose any such confidential information to any entity or
person during the course of your employment. This obligation
shall survive the execution of this agreement and shall
extend for a period of one (1) year from the date of
execution thereof.
	 
	 	 	 	 	 	 
	 

	 	 	3.	 	 	You agree that you will neither bring any proprietary
documents from your previous employer to En Pointe
Technologies, nor will you breach any contractual obligations
you may with any previous employer regarding proprietary
information.
	 
	 	 	 	 	 	 
	 

	 	 	4.	 	 	In cases where a question exists about the appropriateness
of information disclosure, you agree to obtain the prior
approval of Corporate Human Resources.
	 
	 	 	 	 	 	 
	E.
Conflict of Interest

	 	 	1.	 	 	You agree that during the course of your employment,
you will not, directly or indirectly, compete with En Pointe
Technologies in any way, nor will you act as an officer,
director, employee, consultant, over five percent (5%)
shareholder, lender or agent of any entity which is engaged
in any business in which En Pointe Technologies is now
engaged or in which En Pointe Technologies becomes engaged
during the term of your employment. Any apparent conflict of
interest must be disclosed to Corporate Human Resources for
evaluation either at time of employment or at the time that a
conflict becomes known or suspected.

GENERAL PROVISIONS CONTINUED NEXT PAGE

READ & AGREED (INITIALS):

DM:___ (EMPLOYEE)

RC: ____ (EN POINTE TECHNOLOGIES)

 

 

Mr. David L. Mochalski

May 13, 2002

Page 10

ATTACHMENT D: GENERAL PROVISIONS (CONTINUED)

	 	 	 	 	 	 	 	 	 	 	 
	 	 	You agree to adhere to the following Non-Compete guidelines in the event that your employment is terminated
by either you or En Pointe for any reason:
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Effective Period
From Date of
Termination	 	 	 	Prohibited Action
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Engaging in “unfair competition.” “Unfair competition” includes misleading
advertising, use of En Pointe’s publicity in a misleading manner, interfering with the
business of En Pointe Technologies, misuse of confidential information belonging to En
Pointe Technologies, and wrongful appropriation of any En Pointe Technologies trade
secrets. Some specific examples of unfair competition include:
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	•
	 	Soliciting En Pointe Technologies’ clients or customers with confidential
information obtained from En Pointe Technologies.
	 	 	Forever Thereafter	 	•	 	Soliciting clients or customers from any trade secret list of En Pointe
Technologies customers.
	F.
Non-Compete
Agreement

	 	 	 	 	 	 	 	•
	 	Breach of an employment covenant not to use En Pointe’s trade secrets to
compete.
	 

	 	 	 	 	 	 	 	•
	 	Use of deceptive or unfair methods to induce En Pointe Technologies’ employees
to leave, thus rendering En Pointe Technologies unable to operate its business.
	 

	 	 	 	 	 	 	 	•
	 	Divulging confidential matters or trade secrets to a competitor after
termination of employment.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	90 Calendar Days
(Not Applicable to
Account Executives
Employed in
California)	 	In the event that either you or En Pointe terminates your employment at any time and/or
for any reason, you agree that you shall not lawfully compete with En Pointe
Technologies in the state in which you were employed. You further agree that you shall
not contact, solicit or cause to be contacted or solicited, by telephone, fax, letter,
visit, mailer or any other communication medium, any client of En Pointe Technologies
with which you had contact during your employment.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	180 Calendar
Days	 	You agree that neither you, your employer, nor any related entity you may establish
will, solicit or recruit any current En Pointe Technologies employee either regular
employment or a consulting assignment for a period of one hundred and eighty (180)
calendar days following your termination from En Pointe Technologies for any reason.
	 
	 	 	 	 	 	 	 	 	 	 
	G.
Waiver	 	 	1.	 	 	Waiver by En Pointe Technologies of any of its policies on any occasion shall not be deemed to be a waiver
on any other occasion.
	 
	 	 	 	 	 	 	 	 	 	 
	H.
Governing Law	 	 	1.	 	 	It is the intention of you and En Pointe Technologies (“the parties”) that the validity and enforceability
of this Agreement, the construction of its terms and the interpretation if the rights and duties of the parties
shall be governed by, and construed in accordance with, the internal substantive laws of the state in which you
are employed.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	1.	 	 	This Agreement and any attachments supersede any and all agreements, either oral or written, between the
parties hereto with respect to any employment by En Pointe Technologies in any manner whatsoever. Each party to
this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise,
have been made by any party, or anyone acting on behalf of any party which are not embodied herein, and that no
other agreement, statement or promise not contained in this Agreement shall be valid or binding.
	I.
Entire Agreement	 	 	2.	 	 	In addition, and without derogation of the generality of the foregoing, it is specifically acknowledged that
there have been no assurances or promises of eventual ownership interest in connection with the employment. Any
modification of Attachment D of this Agreement will be effective only if changes are agreed upon in writing and
signed by both parties. Modification of Attachments A-C of this Agreement may be made prospectively and
unilaterally by En Pointe Technologies at any time; provided, that such modifications will be made in writing.
	 
	 	 	 	 	 	 	 	 	 	 
	J.
Partial Invalidity	 	 	1.	 	 	If any provision of this Agreement, or portion thereof, is held by a court of competent jurisdiction to be
invalid, void or unenforceable, the remaining provisions, or portions of provisions, will nevertheless continue
in full force without being impaired or invalidated in any way.

GENERAL PROVISIONS CONTINUED NEXT PAGE

READ & AGREED (INITIALS):

DM:___ (EMPLOYEE)

RC: ____ (EN POINTE TECHNOLOGIES)

 

 

Mr. David L. Mochalski

May 13, 2002

Page 11

ATTACHMENT D: GENERAL PROVISIONS (CONTINUED)

	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	Arbitration shall be the exclusive remedy for
any dispute arising out of or related to the
employer/employee relationship, including
disputes concerning or related to the
termination of the employer/employee
relationship, and whether such disputes are
based upon alleged violations of contract,
statute, constitutional or other common-law
rights or obligations. Such arbitration
supplants, replaces and waives any right that
the employee or the Company may have to pursue
any dispute, claim or controversy relating to
employment with, or as a result of the
termination of employment from, the Company
(including claims for employment discrimination
and harassment), in any court, agency, tribunal
or other forum, INCLUDING A CIVIL ACTION BEFORE
ANY JURY.
	 
	 	 	 	 	 	 
	 

	 	 	2.	 	 	Except to the extent specifically modified
herein, all arbitrations under this policy shall
be conducted in accordance with the
JAMS/Endispute Arbitration Rules and Procedures
for Employment Disputes, and copies of the
Arbitration Rules shall be made available to
employees upon request.
	 
	 	 	 	 	 	 
	 

	 	 	3.	 	 	Subject to any remedy to which the prevailing
party may be entitled to under the law, in any
arbitration conducted under this policy, each
party shall pay the fees of his or her own
attorneys (if any), and shall share equally the
costs of the arbitration, including but not
limited to, the fees of the arbitrator and the
costs of a court reporter for the hearing.
	 
	 	 	 	 	 	 
	K.
Dispute
Resolution

	 	 	4.	 	 	The Arbitrator shall be empowered to award
either party any remedy at law or in equity that
the prevailing party would otherwise have been
entitled to had the matter been litigated in
court, including but not limited to, general,
special and punitive damages, and injunctive
relief; provided, however, that the authority to
award any remedy is subject to whatever
limitations, if any, exist in the applicable law
on such remedies. The arbitrator shall have no
jurisdiction to issue any award contrary to or
inconsistent with law.
	 
	 	 	 	 	 	 
	EMPLOYEE

ALSO

INITIALS

HERE:

	 	 	5.	 	 	In any arbitration conducted pursuant to this
policy, either party may request the presence of
a court reporter for the hearing, the costs of
which shall be allocated as provided in
paragraph 3 above. Following the evidentiary
portion of the hearing, either party shall have
the right to prepare and file with the
arbitrator a post-hearing brief, not
to exceed
fifty (50) pages in length. Any such brief
shall be served on the arbitrator and the other
party within thirty (30) days of the close of
the evidentiary portion of the hearing, unless
the parties agree to some other time period.
Either party may also request and shall be
granted one extension of this time period not to
exceed fifteen (15) days. The arbitrator shall
have the authority to grant other extensions, or
to increase the page limitation set forth above,
upon the request of any party for good cause
shown.
	 
	 	 	 	 	 	 
	 

	 	 	6.	 	 	Any disputes concerning the enforcement,
scope, and/or applicability of this policy shall
in the first instance be determined by the
arbitrator. Should either the Company or an
employee disregard this arbitration policy and
pursue an action subject hereto in any court or
administrative agency, upon application of the
aggrieved party to a court of competent
jurisdiction, the court shall order the matter
to arbitration and shall award the prevailing
party in any such hearing its reasonable costs
and attorney’s fees incurred in connection
therewith.
	 
	 	 	 	 	 	 
	 

	 	 	7.	 	 	Any arbitration conducted pursuant to this
provision shall take place in Los Angeles,
California unless otherwise agreed to by the
parties in writing.
	 
	 	 	 	 	 	 
	 

	 	 	8.	 	 	Should any part of this dispute resolution
procedure be declared by a court of competent
jurisdiction to be invalid, unlawful or
otherwise unenforceable, the remaining parts
shall not be affected thereby, and the parties
shall arbitrate their dispute without reference
to or reliance upon the invalid, unlawful or
unenforceable part of the agreement.
	 
	 	 	 	 	 	 
	L.
Legal Review
EMPLOYEE
ALSO
INITIALS
HERE:

	 	 	1.	 	 	You understand that you have the opportunity
to have your legal counsel review this Agreement
prior to your signing it if you deem such review
to be necessary.

READ & AGREED (INITIALS):

DM:___ (EMPLOYEE)

RC: ____ (EN POINTE TECHNOLOGIES)exv4w1w3

 

Exhibit 4.1.3

SECOND SUPPLEMENTAL INDENTURE

     This SECOND SUPPLEMENTAL INDENTURE (this “Second Supplemental Indenture”) dated as of
_________   ___, 2006, is entered into among IWO Holdings, Inc., a Delaware corporation (the
“Company”), the subsidiary guarantors listed on the signature pages hereto (the
“Subsidiary Guarantors”) and U.S. Bank National Association, a national banking
association, as trustee under the Indenture referred to below (the “Trustee”).

     WHEREAS, IWO Escrow Company, a Delaware corporation (“IWO Escrow”), and the Trustee
have heretofore executed an Indenture, dated as of January 6, 2005, as amended by the Supplemental
Indenture, dated as of February 10, 2005, among the Company (as successor in interest to the
obligations of IWO Escrow), the Subsidiary Guarantors and the Trustee (as so amended, the
“Indenture”), providing for the issuance of the Senior Secured Floating Rate Notes due 2012
in the aggregate principal amount of $150,000,000, of which $150,000,000 aggregate principal amount
are outstanding on the date hereof;

     WHEREAS, IWO Escrow merged with and into the Company on February 10, 2005 and, thereafter, the
Company assumed all obligations of IWO Escrow under the Notes and the Indenture;

     WHEREAS, the Company is a wholly-owned subsidiary of Sprint Nextel Corporation, a Kansas
corporation (“Sprint Nextel”);

     WHEREAS, the Board of Directors of Sprint Nextel has determined it to be in the best interest
of Sprint Nextel to guarantee all of the Company’s payment obligations under the Notes and the
Indenture;

     WHEREAS, the Company desires to execute and deliver this Second Supplemental Indenture to,
among other things: (i) amend the Indenture to provide that the reports and other information
required to be provided by the Company may instead be provided only with respect to Sprint Nextel
if Sprint Nextel has guaranteed the payment obligations of the Company under the Notes and the
Indenture; (ii) amend the Indenture to permit certain transactions and asset transfers between the
Company, Sprint Nextel and the other Subsidiaries of Sprint Nextel; and (iii) add or modify certain
defined terms and related text in the Indenture (collectively, the “Proposed Amendments”);

     WHEREAS, the Board of Directors of the Company has determined that it is in the best interest
of the Company to make the Proposed Amendments;

     WHEREAS, Section 9.02 of the Indenture provides that the Company, the Subsidiary Guarantors
and the Trustee may amend or supplement the Indenture with the consent of the

 

 

Holders of at least a majority in aggregate principal amount of the then outstanding Notes
(the “Required Consent”);

     WHEREAS, the Company has obtained the Required Consent; and

     WHEREAS, pursuant to Section 9.02 of the Indenture, the Company, the Subsidiary Guarantors and
the Trustee are authorized to execute and deliver this Second Supplemental Indenture.

     NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby
acknowledged, the Company, the Subsidiary Guarantors and the Trustee covenant and agree for the
equal and ratable benefit of the Holders as follows:

     1. Definitions. All capitalized terms used but not defined herein shall have the
meanings given to such terms in the Indenture, as amended by this Second Supplemental Indenture.

     2. Amendments.

     2.1 The definition of “Asset Sale” set forth in Section 1.01 of the Indenture is amended by:
(A) deleting “and” from the end of subsection (5) thereto; (B) deleting “.” from the end of
subsection (6) thereto and inserting in lieu thereof “; and”; and (C) adding a subsection (7)
thereto, which shall read as follows: “any transfer or sale of assets to the Parent or any direct
or indirect Subsidiary of the Parent.”

     2.2 Section 1.01 of the Indenture is amended to include the following definitions in their
proper alphabetical location:

          “Parent” means any person (as such term is used in Sections 13(d) and 14(d) of the
Exchange Act and the regulations thereunder) who is or becomes the Beneficial Owner,
directly or indirectly, of more than 50% of the total voting stock or total common equity of
the Company.

          “Parent Guarantee” means an unconditional Guarantee by a Parent, on a senior unsecured
basis, of all monetary obligations of the Company under the Indenture and any outstanding
Notes.

     2.3 Section 4.03 of the Indenture is amended by inserting the following text immediately after
subsection (c) thereof:

"(d) Notwithstanding the foregoing, if the Parent executes and delivers a Parent
Guarantee, the reports and other information required by this Section 4.03 may
instead be those filed with the SEC by the Parent and furnished with respect to the
Parent without including the condensed consolidating footnote contemplated by Rule
3-10 of Regulation S-X promulgated under the Securities Act.”

     2.4 Section 4.11 of the Indenture is amended by deleting subsections (2)(a) and (2)(b) thereof
in their entirety and inserting in lieu thereof the following text:

2

 

"(2) the Company delivers to the Trustee, with respect to any Affiliate Transaction
or series of related Affiliate Transactions involving aggregate consideration in
excess of $10,000,000, a determination by the Board of Directors of the Company set
forth in an Officers’ Certificate certifying that each Affiliate Transaction
complies with clause (1) above.”

     3. Amendments to Notes. The Notes are hereby deemed to be amended, mutatis mutandis,
to correspond to the amendments to the Indenture set forth in this Second Supplemental Indenture.

     4. Separability Clause. In case any provision in this Second Supplemental Indenture
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. Modification, Amendment and Waiver. The provisions of this Second Supplemental
Indenture may not be amended, supplemented, modified or waived, unless otherwise provided in the
Indenture, except by the execution of a supplemental indenture executed by the Company, the
Subsidiary Guarantors and the Trustee, and, to the extent such amendment, supplement or waiver
adversely affects the rights of any Holders, with the Required Consent of such Holders. Any such
amendment or supplemental indenture shall comply with Article IX of the Indenture. Until an
amendment, waiver or other action by Holders becomes effective, a consent thereto by a Holder of a
Note hereunder is a continuing consent by the Holder and every subsequent Holder of that Note or
portion of the Note that evidences the same obligation as the consenting Holder’s Note, even if
notation of the consent, waiver or action is not made on the Note. After an amendment, waiver or
action becomes effective, it shall bind every Holder.

     6. Ratification of the Indenture; Second Supplemental Indenture Part of Indenture.
Except as expressly amended hereby, the Indenture and this Second Supplemental Indenture are in all
respects ratified and confirmed and all the terms, conditions and provisions thereof and hereof
shall remain in full force and effect. In the event of a conflict between the terms and conditions
of the Indenture and the terms and conditions of this Second Supplemental Indenture, then the terms
and conditions of this Second Supplemental Indenture shall prevail. This Second Supplemental
Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore
or hereafter authenticated and delivered shall be bound hereby.

     7. Trust Indenture Act Controls. If any provision of this Second Supplemental
Indenture limits, qualifies or conflicts with any provision of the TIA that is required under the
TIA to be part of and govern any provision of this Second Supplemental Indenture, the provision of
the TIA shall control. If any provision of this Second Supplemental Indenture modifies or excludes
any provisions of the TIA that may be so modified or excluded, the provisions of the TIA shall be
deemed to apply to the Indenture as so modified or to be excluded by this Second Supplemental
Indenture, as the case may be.

     8. Governing Law. THIS SECOND SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE
PRINCIPLES OF

3

 

CONFLICTS OF LAW THEREUNDER THAT WOULD INDICATE THE APPLICABILITY OF THE LAWS OF ANY OTHER
JURISDICTION.

     9. Trustee Disclaimer. The Trustee has accepted the amendment of the Indenture
effected by this Second Supplemental Indenture and agrees to execute the trust created by the
Indenture as hereby amended, but only upon the terms and conditions set forth in the Indenture,
including the terms and provisions defining and limiting the liabilities and responsibilities of
the Trustee, and without limiting the generality of the foregoing, the Trustee shall not be
responsible in any manner whatsoever for or with respect to any of the recitals or statements
contained herein, all of which recitals or statements are made solely by the Company, or for or
with respect to: (a) the validity or sufficiency of this Second Supplemental Indenture or any of
the terms or provisions hereof; (b) the proper authorization hereof by the Company by corporate
action or otherwise; (c) the due execution hereof by the Company; (d) the consequences (direct or
indirect and whether deliberate or inadvertent) of any amendment herein provided for, and the
Trustee makes no representations with respect to any such matters; and (e) the validity or the
sufficiency of the solicitation or the consent solicitation materials or procedure in connection
therewith.

     10. Multiple Originals. The parties may sign any number of copies of this Second
Supplemental Indenture. Each signed copy shall be an original, but all of them together represent
the same agreement.

     11. Effect of Headings. The Section headings herein are for convenience only and
shall not effect the construction thereof.

     12. Notices. Any request, demand, authorization, notice, waiver, consent or
communication to any of the parties shall be made as set forth in Section 13.02 of the Indenture.

     13. Successors. All agreements of the Company and each of the Subsidiary Guarantors
in respect of this Second Supplemental Indenture shall bind their respective successors.

[Remainder of Page Blank — Signature Page Follows]

4

 

     IN WITNESS WHEREOF, this Second Supplemental Indenture has been duly executed by the Company,
the Subsidiary Guarantors and the Trustee as of the date first written above.

	 	 	 	 	 
	 	 	IWO HOLDINGS, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	INDEPENDENT WIRELESS ONE CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	INDEPENDENT WIRELESS ONE LEASED REALTY CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:

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