Document:

Exhibit 10.37

 

HORIZON PCS, INC.

68 East Main Street

Chillicothe, Ohio 45601

 

March 16, 2005

 

Peter Holland

c/o
Horizon PCS, Inc.

68 East Main Street

Chillicothe, Ohio 45601

 

Dear Pete:

 

This
letter (“Letter Agreement”) sets forth our understanding regarding an amendment
to be made to your Employment Agreement, by and between Horizon PCS, Inc. (the “Company”)
and yourself, effective as of the effective date of the Joint Plan of
Reorganization for Horizon PCS, Inc., Horizon Personal Communications, Inc. and
Bright Personal Communications Services, LLC Under Chapter 11 of the Bankruptcy
Code (the “Employment Agreement”).  All
capitalized terms not defined herein shall have the same meaning as your
Employment Agreement.

 

In
consideration of your continued employment with the Company and for other good
and valuable consideration the sufficiency of which is hereby acknowledged, Section 6
of the Employment Agreement is amended to insert a new subsection (e)
which shall provide the following:  

 

(e)                                  Section 280G
Safe Harbor Cap.          In the event
it shall be determined that any payment or distribution or any part thereof of
any type to or for the benefit of Executive whether pursuant to the Agreement
or any other agreement between Executive and either the Company, any affiliate
thereto, or any person or entity that acquires ownership or effective control
of the Company or ownership of a substantial portion of Company’s assets
(within the meaning of Section 280G of the Internal Revenue Code of 1986,
as amended, and the regulations thereunder (the “Code”)) whether paid or
payable or distributed or distributable pursuant to the terms of the Agreement
or any other agreement, (the “Total Payments”), is or will be subject to the
excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then
the Total Payments shall be reduced to the maximum amount that could be paid to
Executive without giving rise to the Excise Tax (the “Safe Harbor Cap”), if the
net after-tax payment to Executive after reducing Executive’s Total Payments to
the Safe Harbor Cap is greater than the net after-tax (including the Excise
Tax) payment to Executive without such reduction.  The reduction of the amounts payable
hereunder, if applicable, shall be made by reducing first the payment made
pursuant to the Agreement and then to any other agreement that triggers such
Excise Tax, unless an alternative method of reduction is elected by
Executive.  All mathematical determinations, and all

 

 

determinations
as to whether any of the Total Payments are “parachute payments” (within the
meaning of Section 280G of the Code), that are required to be made under
this Section 6(e), including determinations as to whether the Total
Payments to Executive shall be reduced to the Safe Harbor Cap and the
assumptions to be utilized in arriving at such determinations, shall be made by
a nationally recognized accounting firm selected by the Company (the “Accounting
Firm”).  If the Accountant determines
that the Total Payments to Executive shall be reduced to the Safe Harbor Cap
(the “Cutback Payment”) and it is established pursuant to a final determination
of a court or an Internal Revenue Service (the “IRS”) proceeding which has been
finally and conclusively resolved, that the Cutback Payment is in excess of the
limitations provided in Section 6(e) (hereinafter referred to as an “Excess
Payment”), such Excess Payment shall be deemed for all purposes to be an
overpayment to Executive made on the date such Executive received the Excess
Payment and Executive shall repay the Excess Payment to the Company on demand;
provided, however, if Executive shall be required to pay an Excise Tax by
reason of receiving such Excess Payment (regardless of the obligation to repay
the Company), Executive shall not be required to repay the Excess Payment (if
Executive has already repaid such amount, Company shall refund the amount to
the Executive), and the Company shall pay Executive an amount equal to the
difference between the Total Payments and the Shortfall Cap.

 

Except
as otherwise provided for herein, your Employment
Agreement shall remain in full force and effect.

 

If you
are in agreement with the terms set forth in this Letter Agreement, please
execute both copies and return one to the address set forth above.

 

	
   

  	
  HORIZON PCS,
  INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ William A. McKell

  	
   

  
	
   

  	
   

  

Agreed
to and accepted on this 16 day of March, 2005 by:

	
   

  	
   

  
	
  /s/ Peter
  Holland

  	
   

  	
   

  
				

 

2Exhibit 10.38

 

HORIZON PCS, INC.

68 East Main Street

Chillicothe, Ohio 45601

 

March 16, 2005

 

Monesa Skocik

c/o
Horizon PCS, Inc.

68 East Main Street

Chillicothe, Ohio 45601

 

Dear Monesa:

 

This
letter (“Letter Agreement”) sets forth our understanding regarding an amendment
to be made to your Employment Agreement, by and between Horizon PCS, Inc. (the “Company”)
and yourself, effective as of the effective date of the Joint Plan of
Reorganization for Horizon PCS, Inc., Horizon Personal Communications, Inc. and
Bright Personal Communications Services, LLC Under Chapter 11 of the Bankruptcy
Code (the “Employment Agreement”).  All
capitalized terms not defined herein shall have the same meaning as your
Employment Agreement.

 

In
consideration of your continued employment with the Company and for other good
and valuable consideration the sufficiency of which is hereby acknowledged, Section 6
of the Employment Agreement is amended to insert a new subsection (e)
which shall provide the following:

 

(e)                                  Section 280G
Safe Harbor Cap.          In the event
it shall be determined that any payment or distribution or any part thereof of
any type to or for the benefit of Executive whether pursuant to the Agreement
or any other agreement between Executive and either the Company, any affiliate
thereto, or any person or entity that acquires ownership or effective control
of the Company or ownership of a substantial portion of Company’s assets
(within the meaning of Section 280G of the Internal Revenue Code of 1986,
as amended, and the regulations thereunder (the “Code”)) whether paid or
payable or distributed or distributable pursuant to the terms of the Agreement
or any other agreement, (the “Total Payments”), is or will be subject to the
excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then
the Total Payments shall be reduced to the maximum amount that could be paid to
Executive without giving rise to the Excise Tax (the “Safe Harbor Cap”), if the
net after-tax payment to Executive after reducing Executive’s Total Payments to
the Safe Harbor Cap is greater than the net after-tax (including the Excise
Tax) payment to Executive without such reduction.  The reduction of the amounts payable
hereunder, if applicable, shall be made by reducing first the payment made
pursuant to the Agreement and then to any other agreement that triggers such
Excise Tax, unless an alternative method of reduction is elected by
Executive.  All mathematical determinations, and all

 

 

determinations
as to whether any of the Total Payments are “parachute payments” (within the
meaning of Section 280G of the Code), that are required to be made under
this Section 6(e), including determinations as to whether the Total
Payments to Executive shall be reduced to the Safe Harbor Cap and the
assumptions to be utilized in arriving at such determinations, shall be made by
a nationally recognized accounting firm selected by the Company (the “Accounting
Firm”).  If the Accountant determines
that the Total Payments to Executive shall be reduced to the Safe Harbor Cap
(the “Cutback Payment”) and it is established pursuant to a final determination
of a court or an Internal Revenue Service (the “IRS”) proceeding which has been
finally and conclusively resolved, that the Cutback Payment is in excess of the
limitations provided in Section 6(e) (hereinafter referred to as an “Excess
Payment”), such Excess Payment shall be deemed for all purposes to be an
overpayment to Executive made on the date such Executive received the Excess
Payment and Executive shall repay the Excess Payment to the Company on demand;
provided, however, if Executive shall be required to pay an Excise Tax by
reason of receiving such Excess Payment (regardless of the obligation to repay
the Company), Executive shall not be required to repay the Excess Payment (if
Executive has already repaid such amount, Company shall refund the amount to
the Executive), and the Company shall pay Executive an amount equal to the
difference between the Total Payments and the Shortfall Cap.

 

Except
as otherwise provided for herein, your Employment
Agreement shall remain in full force and effect.

 

If you
are in agreement with the terms set forth in this Letter Agreement, please
execute both copies and return one to the address set forth above.

 

	
   

  	
  HORIZON PCS,
  INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ William A.
  McKell

  	
   

  
	
   

  	
   

  

 

Agreed
to and accepted on this 16 day of March, 2005 by:

 

	
  /s/ Monesa
  Skocik

  	
   

  	
   

  

 

2Exhibit 10.36

 

 

March 25, 2005

 

Mr.  Bob Richardson

7072 Eveningsong Dr.

Huntington Beach, CA 92648

 

Re:          Amended and
Restated Side Letter regarding transition assistance and Option Vesting on
Change of Control

 

Dear Bob:

 

                This letter agreement
confirms our agreement to amend and restate that certain Side Letter Agreement dated
August 18, 2003 between you and Primal regarding transition assistance and
option vesting upon the occurrence of certain events or conditions.

 

Transition Assistance

 

                As discussed, Primal
would provide you with ninety (90) days transition assistance pay upon the
occurrence of certain events described hereafter.  This would be contingent upon your entering
into a standard written separation agreement and release with Primal and would be
paid out according to the normal payroll schedule.  This agreement will apply only if your
employment is involuntarily terminated for other than Cause and will not apply
if your employment is terminated for Cause or you voluntarily terminate your
employment with Primal.

 

                “Cause” means: (a)
your failure to perform (other than by reason of disability) your duties and
responsibilities to Primal in any material respect in the good faith
determination of the Board of Directors and, after receiving written notice to
such effect from Primal, fails to cure the problem within ten (10) days of
receipt of such written notice; (b) your gross negligence or willful misconduct
in the performance of your duties and responsibilities to Primal, such duties
and responsibilities not to be unreasonably imposed; (c) your appropriation (or
attempted appropriation) of a material business opportunity of Primal’s,
including attempting to secure or securing any personal profit in connection
with any transaction entered into on behalf of Primal; (d) your
misappropriation (or attempted misappropriation) of any of Primal’s funds or
property; or (e) the conviction of, or the entering of a guilty plea or plea of
no contest by you with respect to, a felony

 

Option Vesting on Change of Control

 

                As discussed, to
the extent permitted under applicable law, upon the occurrence of (i) a Change
of Control, (ii) you are terminated without Cause, or (iii) you terminate your
employment for Good Reason, all outstanding unvested stock options granted to
you by the Company shall accelerate and vest. 
Change of Control shall mean a change in the beneficial ownership of 50%
or more of the combined voting power of Primal’s then outstanding voting
securities, excluding a refinancing unless it causes a change in the control of
the board of 

 

 

directors. Good Reason shall mean any of the following: (a) a material
breach by Primal of any agreement between you and Primal concerning your
employment with Primal; provided, however, that Primal shall have ten (10) days
to remedy the breach after receipt of written notice from you that the breach
has occurred if the breach is susceptible of cure; (b) the assignment without
your express and voluntary written consent to a title, status, overall
position, responsibilities, duties, reporting relationship, or general working
environment of a materially lesser status or degree of responsibility than your
title, status, overall position, responsibilities, duties, reporting
relationship, and general working environment at the effective date of this
letter agreement; (c) the requirement by Primal that you relocate your personal
residence outside the metropolitan Orange County, California area; (d) the
relocation by Primal of your office more than 50 miles from its location as of
the effective date of this letter agreement; (e) any failure by Primal to
obtain the assumption of any material written agreement between you and Primal
concerning your employment by any successor of Primal or assignee of
substantially all of the business of Primal; or (f) any material change by
Primal in the benefits or incentive compensation offered to you from those in
which you are participating on the effective date of this letter agreement, or
the taking of any action by Primal which would materially and adversely affect
your participation in or reduce your benefits under any of the benefits or
incentive compensation plans of Primal or deprive you of any fringe benefit
then enjoyed by you; provided, however, that nothing contained in this subparagraph
(f) shall be deemed to permit termination by you for Good Reason if Primal
offers a range of benefit plans and programs to you which, taken as a whole,
are at least comparable to the benefits and incentive compensation in which you
are participating on the effective date of this letter agreement.

 

If this arrangement is acceptable to you, please sign the enclosed copy
of this letter and return it to me at your earliest convenience.

 

	
  Very truly yours,

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Joseph R. Simrell

  	
   

  	
   

  
	
  Joseph R. Simrell

  	
   

  	
   

  
	
  Chief Executive Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  cc:  Personnel
  File

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  I agree to the terms described above:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Robert Richardson

  	
  3/25/04

  	
   

  
	
  Signature

  	
  Date

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