1
EXHIBIT 10.46
SECOND AMENDMENT
TO
MASTER EQUIPMENT FINANCING AGREEMENT
This Second Amendment (the "Second Amendment") to Master Equipment
Financing Agreement is entered into by and between NEXTEL INTERNATIONAL, INC.
(the "Company"), and MOTOROLA CREDIT CORPORATION, as administrative agent (in
such capacity, the "Administrative Agent"), as collateral agent (in such
capacity, the "Collateral Agent" and, together with the Administrative Agent,
the "Agents"), and as initial Lender (the "Lender").
W I T N E S S E T H:
WHEREAS, the Company, the Agents and the Lender are party to that certain
Master Equipment Financing Agreement, dated as of February 4, 1999 (as the same
may heretofore have been or may hereafter be further amended or modified, the
"Financing Agreement"; capitalized terms used herein and not otherwise defined
herein having the meanings assigned thereto in the Financing Agreement);
WHEREAS, the Company has requested that the Agents and the Lender agree
to certain amendments to the Financing Agreement; and
WHEREAS, subject to the terms and conditions set forth herein, the Agents
and the Lender are willing to undertake certain amendments to the Financing
Agreement.
NOW, THEREFORE, in consideration of the premises, and intending to be
legally bound hereby, the Company, the Agents and the Lender hereby agree as
follows:
SECTION 1. AMENDMENTS.
Upon the satisfaction by the Company of the conditions precedent set
forth in Section 2 below, and in reliance on the warranties of the Company set
forth in Section 3 below, the Financing Agreement is hereby amended as follows:
1.1 There is hereby added to the Schedules to the Financing Agreement
(a) a Schedule 1.1(h) (Target Cumulative Subscribers) and (b)
Schedule 1.1(i) (Adjusted Paid-in Capital Schedule) in the forms
attached.
1.2 The definition of the term "Adjusted Paid-In Capital" set forth in
Section 1.1 of the Financing Agreement is hereby amended and
restated as follows:
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" "Adjusted Paid-in Capital" means, as of any date, (a) the
paid-in capital of the Company (including for this purpose the
principal amount of any outstanding Permitted Indebtedness owing
to Nextel and incurred by the Company of the type described under
clause (h) of the definition thereof) reflected on the most recent
financial statements delivered pursuant to Section 8.2 or 8.3
(whichever is later) plus (b) any increases in paid-in capital
(including for this purpose the principal amount of any
outstanding Permitted Indebtedness owing to Nextel and incurred by
the Company and of the type described under clause (h) of the
definition thereof) since the end of the reporting period relating
to such financial statements minus (c) any decreases in paid-in
capital (including any repayments, whether or not permitted
hereunder, of any principal or interest with respect to Permitted
Indebtedness owing by the Company to Nextel of the type described
under clause (h) of the definition thereof) since the end of the
reporting period relating to such financial statements. "
1.3 The definition of the term "Fixed Charge Coverage Ratio" set forth
in Section 1.1 of the Financing Agreement is hereby amended and
restated as follows:
" "Fixed Charge Coverage Ratio" means, as at any date, the ratio
(for the then ending or most recently ended fiscal quarter of the
Company) of (a) (i) EBITDA for such quarter plus (ii) the
Quarterly Paid-in Capital Contribution for such quarter to (b)
Adjusted Consolidated Fixed Charges for such quarter. "
1.4 The definition of the term "J-Com" set forth in Section 1.1 of the
Financing Agreement is hereby amended and restated as follows:
" "J-Com" or "Nexnet" means Nexnet Co., Ltd. (f/k/a "J-Com"), a
corporation organized under the laws of Japan. "
1.5 The defined term "Infocom" set forth in Section 1.1 of the
Financing Agreement is hereby deleted in its entirety.
1.6 The following term is hereby added to Section 1.1 of the Financing
Agreement in its appropriate alphabetical order:
" "Nextel Philippines" means Nextel Communications Philippines
Inc., a company incorporated in the Philippines. "
1.7 Each reference to "Infocom" in the Financing Agreement is hereby
substituted with a reference to "Nextel Philippines".
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1.8 The definition of "Permitted Indebtedness" in Section 1.1 of the
Financing Agreement is hereby amended by adding the following
proviso to the end of clause (b) thereof:
" ; provided that in addition to the foregoing, there shall be
permitted to be outstanding at any one time, up to $20,000,000 of
trade accounts payable and other similar Indebtedness of the
Credit Parties incurred in the ordinary course of business which
are due later than 120 days after invoice but no later than 180
days after invoice; "
1.9 The definition of "Permitted Indebtedness" in Section 1.1 of the
Financing Agreement is hereby further amended by deleting the "
and" at the end of clause (n) thereof, replacing the "." at the
end of clause (o) thereof with "; and" and adding the following as
a new clause (p):
"(p) up to $10,000,000 in deferred purchase price, due no later
than January 31, 2001, in respect of telecommunications
concessions in Chile, which obligations shall be unsecured."
1.10 The following term is hereby added to Section 1.1 of the Financing
Agreement in its appropriate alphabetical order:
" "Quarterly Paid-in Capital Contribution" means, for any quarter,
the net increase in cumulative Adjusted Paid-in Capital from the
beginning of such quarter to the end of such quarter, as
determined in accordance with the calculation of "Ending
Cumulative Paid In Capital - Actual" as set forth on Schedule
1.1(i) hereto."
1.11 The following term is hereby added to Section 1.1 of the Financing
Agreement in its appropriate alphabetical order:
" "Aggregate Subscribers" means, for any date, the sum as of such
date of (a) the aggregate number (without duplication) of
Subscriber Units of the Company, Nextel Mexico, Nextel Peru,
Nextel Argentina and Nextel Brazil plus (b) the product of the
Company's Ownership Percentage of Nextel Philippines times the
Subscriber Units of Nextel Philippines. "
1.12 The following term is hereby added to Section 1.1 of the Financing
Agreement in its appropriate alphabetical order:
" "Adjusted Consolidated Fixed Charges" means, as to any Person
and for any period, without duplication, the sum of (a) the total
cash interest expense for such Person and its Subsidiaries on a
consolidated basis for such period, (b) the scheduled principal
amount of all amortization
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payments on all Indebtedness for borrowed money of such Person and
its Subsidiaries on a consolidated basis for such period (other
than payments in respect of Permitted Indebtedness of the type
described in clause (b) of the definition thereof for such period
which arise from handset purchases and which are owed to a
Motorola Entity), and (c) all payments made in respect of Capital
Lease Obligations by such Person and its Subsidiaries on a
consolidated basis for such period. "
1.13 The last sentence of each of Section 8.2 and Section 8.3 of the
Financing Agreement is hereby amended and restated in its entirety
as follows:
" In addition, the foregoing certificate shall set forth in
reasonable detail each of the calculations required to establish
compliance with the financial covenants set forth in Section 8.15
hereto and include a representation that each such calculation
(including, without limitation, any such calculations made
pursuant to any Schedule to this Agreement) has been made in
accordance with GAAP, is consistent with all relevant definitions
set forth in this Agreement, and is consistent with the Company's
preparation of the then current Approved Business Plan. "
1.14 Effective as of March 30, 2000, Section 8.15 of the Financing
Agreement is hereby amended and restated in its entirety as
follows:
" SECTION 8.15 FINANCIAL COVENANTS
The Company and its Restricted Subsidiaries shall have or maintain, on a
consolidated basis, and at all times:
(a) a Fixed Charge Coverage Ratio of not less than 1.00 : 1.00,
measured at the end of each fiscal quarter of the Company.
(b) a ratio of Indebtedness to EBITDA of not greater than the
ratios set forth below, measured at the end of each fiscal quarter of the
Company commencing with the fiscal quarter ending December 31, 2001:
---------------------------------------------------------------------------------------
Quarter end date Maximum Indebtedness to EBITDA
---------------------------------------------------------------------------------------
12/31/01 172 : 1
---------------------------------------------------------------------------------------
3/31/02 38 : 1
---------------------------------------------------------------------------------------
6/30/02 23 : 1
---------------------------------------------------------------------------------------
9/30/02 18 : 1
---------------------------------------------------------------------------------------
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---------------------------------------------------------------------------------------
12/31/02 15 : 1
---------------------------------------------------------------------------------------
3/31/03 12 : 1
---------------------------------------------------------------------------------------
6/30/03 10 : 1
---------------------------------------------------------------------------------------
9/30/03 8.5 : 1
---------------------------------------------------------------------------------------
12/31/03 7.2 : 1
---------------------------------------------------------------------------------------
3/31/04 6.3 : 1
---------------------------------------------------------------------------------------
6/30/04 5.7 : 1
---------------------------------------------------------------------------------------
9/30/04 5.6 : 1
---------------------------------------------------------------------------------------
12/31/04 5.6 : 1
---------------------------------------------------------------------------------------
(c) The product of (i) four times (ii) EBITDA, measured for the
most recently ended fiscal quarter commencing with the fiscal quarter
ending March 31, 2000, of not less than the amount on the quarter end
dates set forth below:
--------------------------------------------------------------------------------
Quarter end date Minimum EBITDA
--------------------------------------------------------------------------------
3/31/00 (174,000,000)
--------------------------------------------------------------------------------
6/30/00 (190,000,000)
--------------------------------------------------------------------------------
9/30/00 (172,000,000)
--------------------------------------------------------------------------------
12/31/00 (145,000,000)
--------------------------------------------------------------------------------
3/31/01 (122,000,000)
--------------------------------------------------------------------------------
6/30/01 (81,000,000)
--------------------------------------------------------------------------------
9/30/01 (29,000,000)
--------------------------------------------------------------------------------
12/31/01 12,000,000
--------------------------------------------------------------------------------
3/31/02 52,000,000
--------------------------------------------------------------------------------
6/30/02 86,000,000
--------------------------------------------------------------------------------
9/30/02 113,000,000
--------------------------------------------------------------------------------
12/31/02 137,000,000
--------------------------------------------------------------------------------
3/31/03 163,000,000
--------------------------------------------------------------------------------
6/30/03 196,000,000
--------------------------------------------------------------------------------
9/30/03 228,000,000
--------------------------------------------------------------------------------
12/31/03 267,000,000
--------------------------------------------------------------------------------
3/31/04 299,000,000
--------------------------------------------------------------------------------
6/30/04 328,000,000
--------------------------------------------------------------------------------
9/30/04 334,000,000
--------------------------------------------------------------------------------
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--------------------------------------------------------------------------------
Quarter end date Minimum EBITDA
--------------------------------------------------------------------------------
12/31/04 334,000,000
--------------------------------------------------------------------------------
(d) minimum Adjusted Recurring Revenues, measured at the end of
each fiscal quarter commencing with the quarter ending March 31, 2000, of
not less than the amounts set forth opposite the quarter end dates set
forth below:
--------------------------------------------------------------------------------
Quarter end date Minimum Adjusted Recurring
Revenues
--------------------------------------------------------------------------------
3/31/00 7,000,000
--------------------------------------------------------------------------------
6/30/00 11,000,000
--------------------------------------------------------------------------------
9/30/00 13,000,000
--------------------------------------------------------------------------------
12/31/00 17,000,000
--------------------------------------------------------------------------------
3/31/01 22,000,000
--------------------------------------------------------------------------------
6/30/01 23,000,000
--------------------------------------------------------------------------------
9/30/01 25,000,000
--------------------------------------------------------------------------------
12/31/01 27,000,000
--------------------------------------------------------------------------------
3/31/02 29,000,000
--------------------------------------------------------------------------------
6/30/02 32,000,000
--------------------------------------------------------------------------------
9/30/02 35,000,000
--------------------------------------------------------------------------------
12/31/02 38,000,000
--------------------------------------------------------------------------------
3/31/03 41,000,000
--------------------------------------------------------------------------------
6/30/03 42,000,000
--------------------------------------------------------------------------------
9/30/03 45,000,000
--------------------------------------------------------------------------------
12/31/03 49,000,000
--------------------------------------------------------------------------------
3/31/04 53,000,000
--------------------------------------------------------------------------------
6/30/04 56,000,000
--------------------------------------------------------------------------------
9/30/04 56,000,000
--------------------------------------------------------------------------------
12/31/04 60,000,000
--------------------------------------------------------------------------------
(e) a minimum number of Adjusted Subscribers, measured at the end
of each fiscal quarter commencing with the quarter ending March 31, 2000,
of not less than the number of Subscribers set forth opposite the quarter
end dates set forth below:
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--------------------------------------------------------------------------------
Quarter end date Minimum Adjusted Subscribers
--------------------------------------------------------------------------------
3/31/00 70,000
--------------------------------------------------------------------------------
6/30/00 87,000
--------------------------------------------------------------------------------
9/30/00 109,000
--------------------------------------------------------------------------------
12/31/00 135,000
--------------------------------------------------------------------------------
3/31/01 164,000
--------------------------------------------------------------------------------
6/30/01 180,000
--------------------------------------------------------------------------------
9/30/01 200,000
--------------------------------------------------------------------------------
12/31/01 225,000
--------------------------------------------------------------------------------
3/31/02 253,000
--------------------------------------------------------------------------------
6/30/02 268,000
--------------------------------------------------------------------------------
9/30/02 288,000
--------------------------------------------------------------------------------
12/31/02 313,000
--------------------------------------------------------------------------------
3/31/03 340,000
--------------------------------------------------------------------------------
6/30/03 355,000
--------------------------------------------------------------------------------
9/30/03 374,000
--------------------------------------------------------------------------------
12/31/03 398,000
--------------------------------------------------------------------------------
3/31/04 424,000
--------------------------------------------------------------------------------
6/30/04 438,000
--------------------------------------------------------------------------------
9/30/04 457,000
--------------------------------------------------------------------------------
12/31/04 479,000
--------------------------------------------------------------------------------
(f) Cash on deposit at all times in the deposit account (other
than the Prepayment Escrow Deposit Account) subject to the Company
Security Deposit Agreement in an amount equal to or in excess of the
product of (i) the amount of the Obligations reasonably estimated to be
due and payable hereunder on the next Semi Annual Date times (ii) a
fraction the numerator of which is the number of complete calendar months
since the last Semi Annual Date and the denominator of which is six (6).
(g) Minimum Adjusted EBITDA, measured at the end of each fiscal
quarter commencing with the quarter ending June 30, 2000, of not less
than the Adjusted EBITDA set forth opposite the quarter end dates set
forth below:
--------------------------------------------------------------------------------
Quarter end date Minimum Adjusted EBITDA
--------------------------------------------------------------------------------
6/30/00 (63,000,000)
--------------------------------------------------------------------------------
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--------------------------------------------------------------------------------
Quarter end date Minimum Adjusted EBITDA
--------------------------------------------------------------------------------
9/30/00 (52,000,000)
--------------------------------------------------------------------------------
12/31/00 (37,000,000)
--------------------------------------------------------------------------------
3/31/01 (26,000,000)
--------------------------------------------------------------------------------
6/30/01 (18,000,000)
--------------------------------------------------------------------------------
9/30/01 1,000,000
--------------------------------------------------------------------------------
12/31/01 6,000,000
--------------------------------------------------------------------------------
3/31/02 20,000,000
--------------------------------------------------------------------------------
6/30/02 31,000,000
--------------------------------------------------------------------------------
9/30/02 41,000,000
--------------------------------------------------------------------------------
12/31/02 43,000,000
--------------------------------------------------------------------------------
3/31/03 52,000,000
--------------------------------------------------------------------------------
6/30/03 56,000,000
--------------------------------------------------------------------------------
9/30/03 63,000,000
--------------------------------------------------------------------------------
12/31/03 76,000,000
--------------------------------------------------------------------------------
3/31/04 83,000,000
--------------------------------------------------------------------------------
6/30/04 98,000,000
--------------------------------------------------------------------------------
9/30/04 100,000,000
--------------------------------------------------------------------------------
12/31/04 100,000,000
--------------------------------------------------------------------------------
(h) a minimum amount of Adjusted Paid-In Capital at all times for
each calendar quarter in an amount equal to the actual cash requirements
for such calendar quarter as provided in the Adjusted Paid-In Capital
Schedule (Schedule 1.1(i)) provided by the Company as part of the
compliance package delivered with the financial statements required under
Sections 8.2 and 8.3. As set forth in the Adjusted Paid-In Capital
Schedule (Schedule 1.1(i)), a deficiency in Adjusted Paid-In Capital for
any calendar quarter must be contributed into the Company within thirty
(30) days from the end of the applicable reporting period.
(i) For purposes of this Section 8.15 and any related definitions,
the term "Borrowing Affiliate" shall be deemed not to include Nexnet
unless and until an Attributable Borrowing in respect of Nexnet (a
"Nexnet Borrowing") is requested by the Company (a "Nexnet Request")
pursuant to Section 2 of this Agreement. Upon a Nexnet Request, Nexnet
shall be deemed to be a Borrowing Affiliate for purposes of this Section
8.15 and any related definitions, and the covenants set forth in clauses
(d), (e), and (g) above and the provisions of clause (j) set forth below
shall be subject to good faith negotiation between the Company and the
Administrative Agent (for the benefit of the Lenders) for re-setting the
thresholds therein prior to the date of such Nexnet Request (both before
and after
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giving effect to the requested Nexnet Borrowing). In addition, in the
event that the Company's Ownership Percentage in any Borrowing Affiliate
is increased or decreased in accordance with the terms of this Agreement,
the thresholds included in clauses (d), (e), and (g) above and clause (j)
below shall be recalculated (utilizing the then current Approved Business
Plan) in order to reflect such increase or decrease.
(j) Notwithstanding anything herein to the contrary (including,
without limitation, the provisions of Section 11.1 hereof), (i) a breach
of Section 8.15(d) hereof shall not constitute an Event of Default
hereunder unless the Company is in breach of such Section 8.15(d) as of
two (2) consecutive quarter end dates and (ii) a breach of Section
8.15(b), Section 8.15(c) or Section 8.15(g) hereof as of any quarter end
date shall not constitute an Event of Default hereunder unless the
Aggregate Subscribers as of the end of such quarter were less than the
"Total Ending Consolidated Digital Subscribers" set forth opposite the
quarter end dates set forth in Schedule 1.1(h). "
1.15 The parties agree and acknowledge that the address for notices for
the Company shall, until changed pursuant to Section 13.7 of the Financing
Agreement, be Nextel International, Inc., 00000 Xxxxxxxxx Xxxx., Xxxxx 000,
Xxxxxx, Xxxxxxxx 00000, Attention: Chief Financial Officer (Telecopy:
703-390-5111).
SECTION 2. CONDITIONS PRECEDENT.
As a condition precedent to the effectiveness of the Second Amendment,
the Company shall have delivered to the Agents and the Lender the Second
Amendment, duly executed and delivered and appropriately dated and in form and
substance satisfactory to the Agents and the Lender, and such other documents as
the Agents may reasonably request.
SECTION 3. REPRESENTATIONS AND WARRANTIES.
To induce the Agents and the Lender to enter into the Second Amendment,
the Company hereby represents and warrants to the Agents and the Lender as of
the date hereof that:
(a) The representations and warranties contained in the Financing
Agreement and the other Credit Documents are true and correct in all
material respects on and as of the date hereof except for representations
and warranties that speak as of a particular date, in which case such
representations and warranties are true as of such date;
(b) The consolidated audited balance sheets of the Company and its
Subsidiaries and consolidated statements of operations, changes in
stockholders'
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equity and cash flows of the Company and its Subsidiaries each as of
December 31, 1998, and all other information and data heretofore
furnished by the Company, or any agent of the Company on behalf of the
Company to the Administrative Agent, including, the quarterly (each as at
March 31, 1999, June 30, 1999 and September 30, 1999) consolidated
balance sheets and consolidated statements of operations, changes in
stockholders' equity and cash flows, have been prepared in accordance
with GAAP and fairly present the condition and results of operations of
the Company and its Subsidiaries as of such dates or for such periods;
(c) The consolidated audited balance sheets of each of the Borrowing
Affiliates and their respective Subsidiaries and consolidated statements
of operations, stockholders' equity and cash flows of each of the
Borrowing Affiliates and their respective Subsidiaries, each as at
December 31, 1998, have been prepared in accordance with GAAP and fairly
represent in all material respects the condition and results of
operations of such Borrowing Affiliate and its Subsidiaries as of such
dates or for such periods;
(d) Each Affiliated Credit Party has made all material required
contributions under the Plans for all periods through and including
September 30, 1999, or adequate accruals therefor have been provided for
in the financial statements referenced in paragraph (b) above;
(e) The actuarial value of vested benefits required to be funded by each
Affiliated Credit Party, or with respect to which such Affiliated Credit
Party is liable, under the Plans, determined using the actuarial methods
and assumptions used by the relevant Plan's actuary as of the last
valuation date for which an actuarial valuation was completed to
determine such Plan's funded status, did not as of the last valuation
date as of which an actuarial valuation has been completed, which in the
case of any individual Plan was not earlier than January 1, 1999, exceed
the actuarial value of the assets of the Plans allocable to such vested
and non-vested benefits by a material amount; and
(f) After giving effect to the Second Amendment, no Default or Event of
Default has occurred and is continuing.
SECTION 4. GENERAL.
4.1 Reservation of Rights. The Company acknowledges and agrees that the
execution and delivery of the Second Amendment shall not be deemed (i) to
create a course of dealing or otherwise obligate the Agents or the Lender
to forbear or execute similar amendments under the same or similar
circumstances in the future, or (ii) as a waiver by the Agents or the
Lender of any covenant, condition, term or provision of the Financing
Agreement or any of the other Credit Documents, and
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the failure of the Agents or the Lender to require strict performance by
the Company or any other Credit Party of any provision thereof shall not
waive, affect or diminish any right of the Agents or the Lender to
thereafter demand strict compliance therewith. The Agents and the Lender
hereby reserve all rights granted under the Financing Agreement, the
other Credit Documents and the Second Amendment.
4.2 Full Force and Effect. As hereby modified, the Financing Agreement
and each of the other Credit Documents shall remain in full force and
effect and each is hereby ratified, approved and confirmed in all
respects.
4.3 Affirmation. The Company hereby affirms its obligations under Section
4 of the Financing Agreement and agrees to pay on demand all reasonable
costs and expenses of the Agents and the Lender in connection with the
preparation, execution and delivery of the Second Amendment and all
instruments and documents delivered in connection herewith.
4.4 Successors and Assigns. The Second Amendment shall be binding upon
and shall inure to the benefit of the Company, the Agents and the Lender
and the respective successors and assigns of the Company, the Agents and
the Lender.
4.5 Counterparts. The Second Amendment may be executed in any number of
counterparts and by the different parties on separate counterparts, and
each such counterpart shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same Second
Amendment.
* * * * *
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IN WITNESS WHEREOF, the Company, the Agents and the Lender have executed
this Second Amendment as of the 22 day of March, 2000.
COMPANY:
NEXTEL INTERNATIONAL, INC.
By: /s/ Xxxxx Xxxxxxxx
----------------------------------
Name: Xxxxx Xxxxxxxx
--------------------------------
Title: Vice President and
-------------------------------
Chief Financial Officer
-------------------------------
LENDER:
MOTOROLA CREDIT CORPORATION
By: /s/ Xxxx Xxxxx
----------------------------------
Name: Xxxx Xxxxx
--------------------------------
Title: Vice President
-------------------------------
AGENTS:
MOTOROLA CREDIT CORPORATION,
as Administrative Agent
By: /s/ Xxxx Xxxxx
----------------------------------
Name: Xxxx Xxxxx
--------------------------------
Title: Vice President
-------------------------------
MOTOROLA CREDIT CORPORATION,
as Collateral Agent
By: /s/ Xxxx Xxxxx
----------------------------------
Name: Xxxx Xxxxx
--------------------------------
Title: Vice President
-------------------------------
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Schedule 1.1(h)
----------------------------------------
TOTAL ENDING CONSOLIDATED DIGITAL
SUBSCRIBERS
----------------------------------------
1Q00 326,746
2Q00 398,965
3Q00 486,884
4Q00 584,222
1Q01 644,022
2Q01 720,433
3Q01 813,455
4Q01 916,444
1Q02 973,304
2Q02 1,045,958
3Q02 1,134,407
4Q02 1,232,333
1Q03 1,282,885
2Q03 1,347,480
3Q03 1,426,118
4Q03 1,513,181
1Q04 1,559,717
2Q04 1,619,181
3Q04 1,691,571
4Q04 1,771,718
----------------------------------------
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Schedule 1.1(i)
Adjusted Paid-in Capital Schedule
-------------------------------------------------------------------------------------------------------------
CUMULATIVE
TOTALS
----------------------------------------------------==========-----------------------------------------------
BEGINNING CUMULATIVE ADJUSTED PAID IN CAPITAL- 0 A
ACTUAL
-------------------------------------------------------------------------------------------------------------
BEGINNING CUMULATIVE ADJUSTED PAID IN CAPITAL- 0 B
REQUIRED
-------------------------------------------------------------------------------------------------------------
ONE-TIME CREDIT FOR DECEMBER 1999 CAPITAL 32,325,815 Q
CONTRIBUTION TO ITS SUBSIDIARIES
-------------------------------------------------------------------------------------------------------------
PLUS: LESS:
-------------------------------------------------------------------------------------------------------------
NEXTEL NEXTEL
INTERNATIONAL INC. PHILIPPINES
=============================================================================================================
QUARTERLY QUARTERLY INTERCOMPANY
UNAUDITED UNAUDITED ADJUSTMENTS
CONSOLIDATED FINANCIAL
FINANCIAL STATEMENTS
STATEMENTS
=============================================================================================================
Quarterly EBITDA Loss/(Gain)
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
plus/(minus): Capital expenditures/(sale of assets)
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
plus/(minus): Interest expense, scheduled debt
amortizations, withholding tax on interest expense,
(interest income):
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
plus/(minus): increases/(decreases) in accounts
receivable, inventory, other non-cash current assets:
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
minus/(plus): increases/(decreases) in accounts
payable, accrued expenses and other current liabilities
(except short-term notes payable):
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
plus/(minus): increases/(decreases) in Nextel
International Inc.'s value added tax credit account
during such quarter:
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
minus: increases in short-term and long-term debt and
notes payable (except shareholder notes as per
Permitted Indebtedness (h)):
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
plus: increases/(decreases) in minority investments in
Persons accounted by the Company on the equity method
resulting from either (i) additional cash contributed
by the Company to such Person or (ii) distributions
made by such Person or net losses incurred by such
Person (in no case to be increased by a change in the
market value of the non-cash assets of such Person or
by the net income of such Person):
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
minus: minority partner capital contributions(1):
-------------------------------------------------------------------------------------------------------------
TOTAL QUARTERLY PAID-IN CAPITAL CONTRIBUTION
REQUIREMENT
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
ACTUAL QUARTERLY PAID-IN CAPITAL CONTRIBUTION
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------
CUMULATIVE ADJUSTED PAID IN CAPITAL- ACTUAL
-------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
BEGINNING CUMULATIVE ADJUSTED PAID IN CAPITAL-
ACTUAL
--------------------------------------------------------------------------------------------
BEGINNING CUMULATIVE ADJUSTED PAID IN CAPITAL-
REQUIRED
--------------------------------------------------------------------------------------------
ONE-TIME CREDIT FOR DECEMBER 1999 CAPITAL
CONTRIBUTION TO ITS SUBSIDIARIES
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
============================================================================================
TOTAL CONSOLIDATED PAID-IN
CAPITAL REQUIREMENT
============================================================================================
Quarterly EBITDA Loss/(Gain)
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
plus/(minus): Capital expenditures/(sale of assets)
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
plus/(minus): Interest expense, scheduled debt
amortizations, withholding tax on interest expense,
(interest income):
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
plus/(minus): increases/(decreases) in accounts
receivable, inventory, other non-cash current assets:
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
minus/(plus): increases/(decreases) in accounts
payable, accrued expenses and other current liabilities
(except short-term notes payable):
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
plus/(minus): increases/(decreases) in Nextel
International Inc.'s value added tax credit account
during such quarter:
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
minus: increases in short-term and long-term debt and
notes payable (except shareholder notes as per
Permitted Indebtedness (h)):
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
plus: increases/(decreases) in minority investments in
Persons accounted by the Company on the equity method
resulting from either (i) additional cash contributed
by the Company to such Person or (ii) distributions
made by such Person or net losses incurred by such
Person (in no case to be increased by a change in the
market value of the non-cash assets of such Person or
by the net income of such Person):
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
minus: minority partner capital contributions(1):
--------------------------------------------------------------------------------------------
TOTAL QUARTERLY PAID-IN CAPITAL CONTRIBUTION 0 C
REQUIREMENT
---------------------------------------------------------===--------------------------------
--------------------------------------------------------------------------------------------
ACTUAL QUARTERLY PAID-IN CAPITAL CONTRIBUTION D (+ Q only for Q1/2000)
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
CUMULATIVE ADJUSTED PAID IN CAPITAL- ACTUAL 0 A + D =
X
--------------------------------------------------------------------------------------------
--------
(1) This item is applicable ONLY IF there has been one-hundred percent (100%)
consolidation by Nextel International Inc. with the entity to which the capital
contribution has been made.
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CUMULATIVE ADJUSTED PAID IN CAPITAL- REQUIRED 0 B + C =
Y
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
DEFICIENCY IN PAID-IN CAPITAL TO BE CONTRIBUTED: Z If Y > X, then Y - X, if
not 0
---------------------------------------------------------------------------------------------------------------------------
ENDING CUMULATIVE ADJUSTED PAID IN CAPITAL- 0 X + Z
ACTUAL
---------------------------------------------------------------------------------------------------------------------------
ENDING CUMULATIVE ADJUSTED PAID IN CAPITAL- 0 Y
REQUIRED
---------------------------------------------------------------------------------------------------------------------------
* Deficiencies in Paid-in Capital must be contributed into the Company within 30 days from the end of the reporting period.
---------------------------------------------------------------------------------------------------------------------------
Note: All calculations in the foregoing chart shall be made in accordance
with GAAP (unless non-GAAP variations are specified) and the application of
GAAP by the Company shall be on a consistent basis.
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