December 14, 2005
Exhibit 10.24
December 14, 2005
Xx. Xxxxxxx X. Xxxxxxxx
0000 Xxxxxxx Xxxx
Xxxxxx, XX 00000
0000 Xxxxxxx Xxxx
Xxxxxx, XX 00000
Dear Xx. Xxxxxxxx:
You previously entered into an employment agreement with SunCom Wireless Management Company,
Inc. (the “Company”) dated as of March 7, 2005 (the “Original Employment Agreement”) and thereafter
amended by a certain Letter Agreement (the “2005 Letter Agreement”) dated December 2, 2005. The
Original Employment Agreement as amended by the 2005 Letter Agreement is referred to herein as the
“Existing Employment Agreement”. Except as otherwise defined herein, all capitalized terms used
herein shall have the meanings set forth in the Existing Employment Agreement.
The Existing Employment Agreement’s current term is scheduled to expire on February 3, 2006
and will automatically renew for successive one-year extensions in the absence of either party
providing a notice of nonrenewal. On behalf of the Company, in light of the services performed by
you as the Company’s Executive Vice President of Operations, the Company in this letter agreement
(this “Agreement”) hereby agrees to modify the terms of your Existing Employment Agreement as set
forth below:
1. Term. The term of your employment, as amended hereby, shall be extended until and
shall continue through February 3, 2009 (the “New Expiration Date”), unless earlier terminated in
accordance with the terms of the Existing Employment Agreement. The term will extend automatically
for successive one-year periods commencing on such date unless either party provides written notice
to the other party at least sixty (60) days prior to any renewal date.
2. Base Salary. Effective January 1, 2006, your base salary under your employment
contract shall be increased to two hundred seventy-five thousand dollars ($275,000). Thereafter,
the Compensation Committee of the Board of Directors (the “Committee”) of SunCom Wireless Holdings,
Inc., the Company’s parent (“SunCom”), shall review your base salary and may, in its discretion,
increase (but not decrease) such base salary as it deems appropriate.
3. Contractual Payment Subject to Forfeiture. In consideration for your execution and
delivery of this Agreement, you will be entitled to receive an additional payment in the amount of
two hundred seventy-five thousand dollars ($275,000). Such amount will be paid to you in a single
lump sum on the first regular payroll date occurring during calendar year 2006. Notwithstanding
the foregoing, you shall be required to return a portion of this payment in the event that prior to
the New Expiration Date (i) you resign from employment (other than for Good Reason) or (ii) your
employment is terminated for Cause. The portion of the payment to be repaid to the Company in such
event shall be equal to the amount of the payment multiplied by a fraction, the numerator of which
is the number of full calendar months remaining between the date of any such resignation or
termination and the New Expiration Date, and the denominator of
Xx. Xxxxxxx X. Xxxxxxxx
December 14, 2005
Page 2
December 14, 2005
Page 2
which is 36. Such amount shall be repaid to the Company within five (5) business days
following any such resignation or termination.
4. Annual Bonus. The parties acknowledge and agree that: (i) Schedule II of the
Existing Employment Agreement shall no longer be effective or binding upon the parties; (ii) the
“Bonus Target” for purpose of calculating the annual bonus payable to Executive shall be 100% of
his Base Salary; and (iii) the amount of Executive’s annual bonus shall be calculated by
multiplying the Bonus Target by the percentage of the goals associated with that year’s bonus
Executive achieved during such year. By of illustration, if Executive achieves in a given year 50%
of the goals associated with that year’s annual bonus, he will be entitled to 50% of the Bonus
Target; if Executive achieves in a given year 120% of such goals, he will be entitled to 120% of
the Bonus Target.
5. Perquisites. Notwithstanding Section 4(b) (or any other provision) of the Existing
Employment Agreement, Executive, from and after January 1, 2006, shall be entitled to compensation
for vacation days not used by Executive during any calendar year (based upon Executive’s Base
Salary during such calendar year), payable not later than January 31st of the following
calendar year.
6. Stock Awards. Executive shall be eligible to receive additional awards under
SunCom’s 1999 Stock and Incentive Plan (or any successor thereto) (the “Plan”) under the terms of
the Plan as may be approved by the Committee from time to time.
7. Benefits Upon Termination. Notwithstanding Sections 5(b) and 5(c) (or any other
provision) of the Existing Employment Agreement, in the event of a termination of Executive’s
employment (i) by reason of his death or Disability, (ii) by the Company Without Cause, (iii) by
the Company by notice of non-renewal pursuant to Section 1 of this Agreement, or (iv) by
Executive for Good Reason, then Executive shall be entitled (in addition to any other benefits,
payments or compensation provided for in the Existing Employment Agreement) to:
(a) a severance benefit in the amount of his Base Salary in effect on the date of such
termination, payable over a 12-month period following the end of the Employment Period;
(b) continuation of coverage under and participation rights in the benefit plans described in
Section 4(a) of the Existing Employment Agreement during the 12-month period following the end of
the Employment Period (to the same extent as if Executive were still employed by the Company during
such period); and
(c) the amount of any annual bonus to which Executive would otherwise be entitled for the
calendar year during which such termination occurs prorated appropriately to reflect the portion of
such year prior to such termination.
In the event that such benefits constitute “deferred compensation” payable to a “key employee”
of a publicly-traded corporation pursuant to Section 409A of the Internal Revenue Code of 1986, as
amended, such benefits shall not be payable until six months following Executive’s separation from
service.
Xx. Xxxxxxx X. Xxxxxxxx
December 14, 2005
Page 3
December 14, 2005
Page 3
8. Definition of Good Reason. The parties acknowledge and agree that Section
5(e)(vii) of the Existing Employment Agreement shall not be effective or binding upon the parties
from and after the date hereof.
9. Restrictive Covenants. From and after the date hereof:
(a) The duration of the non-competition period under Section 6(a) of the Existing Employment
Agreement shall be the Employment Period plus a period of one (1) year following the termination of
Executive’s employment with the Company at any time and for any reason.
(b) The term “Territory” as used in Section 6(a) of the Existing Employment Agreement shall
mean:
(i) With respect to Executive’s non-competition obligations during the Employment Period, the
geographic areas in which SunCom and its direct and indirect Subsidiaries (including the Company)
do business during the Employment Period; and
(ii) With respect to Executive’s non-competition obligations during the one-year period
following the Employment Period, the geographic areas in which SunCom and its direct and indirect
Subsidiaries (including the Company) are doing business as of the termination date of Executive’s
employment with the Company.
(c) The parties acknowledge and agree that Section 6(e) of the Existing Employment Agreement
shall not be effective or binding upon Executive from and after the date hereof.
10. Dispute Resolution. Section 8(l) of the Existing Employment Agreement is hereby
by amended to add the following sentence to the end of such provision:
“Notwithstanding the foregoing, the parties agree that prior to the
commencement of any arbitration proceedings to resolve any dispute,
controversy or claim arising in connection with this Agreement, the
parties shall, upon the request of any party, attempt in good faith
to resolve such dispute, controversy or claim through non-binding
mediation pursuant to the Commercial Mediation Rules of the AAA.
All costs and expenses incurred by Executive in connection with such
mediation proceeding (including, without limitation, reasonable
attorneys’ fees) shall be paid and/or reimbursed by the Company.”
11. All Other Provisions Remain Effective. Except as otherwise expressly modified
under this Agreement, all other terms and conditions of the Existing Employment Agreement shall
continue in full force and effect and are hereby ratified and confirmed. In the event of any
inconsistency between the terms of the Existing Employment Agreement and the terms of this
Agreement, the terms of this Agreement shall control.
Xx. Xxxxxxx X. Xxxxxxxx
December 14, 2005
Page 4
December 14, 2005
Page 4
12. Notices. Any notice required or desired to be delivered under this Agreement
shall be in writing and shall be delivered personally against receipt, by courier service or by
registered mail, return receipt requested, and shall be effective upon actual receipt by the party
to which such notice shall be directed, and shall be addressed as follows (or to such other address
as the party entitled to notice shall hereafter designate in accordance with the terms hereof):
If to the Company, to the attention of the Chairman of the Committee
at SunCom’s principal executive offices, with a copy to:
at SunCom’s principal executive offices, with a copy to:
Dow, Xxxxxx & Xxxxxxxxx, PLLC
0000 Xxx Xxxxxxxxx Xxxxxx, X.X.
Xxxxxxxxxx, X.X. 00000
Attention: Xxxxxxx X. Xxxx
Facsimile: (000) 000-0000
0000 Xxx Xxxxxxxxx Xxxxxx, X.X.
Xxxxxxxxxx, X.X. 00000
Attention: Xxxxxxx X. Xxxx
Facsimile: (000) 000-0000
If to Executive:
Xx Xxxxxxx X. Xxxxxxxx
0000 Xxxxxxx Xxxx
Xxxxxx, XX 00000
0000 Xxxxxxx Xxxx
Xxxxxx, XX 00000
with a copy to:
Kleinbard Xxxx & Xxxxxxx LLP
0000 Xxxxxx Xxxxxx, Xxxxx 000
Xxxxxxxxxxxx, XX 00000
Attention: Xxxxxx X. Xxxxx
Facsimile: (000) 000-0000
0000 Xxxxxx Xxxxxx, Xxxxx 000
Xxxxxxxxxxxx, XX 00000
Attention: Xxxxxx X. Xxxxx
Facsimile: (000) 000-0000
Please evidence your acceptance of the foregoing modifications to the Existing Employment
Agreement by executing this Agreement where provided below and returning it to me, whereupon this
Agreement shall constitute the legally valid and binding obligation of the parties hereto,
enforceable against such parties in accordance with its terms, and future references to your
Employment Agreement shall mean the Existing Employment Agreement as amended by this Agreement.
[Signature Page Follows]
Xx. Xxxxxxx X. Xxxxxxxx
December 14, 2005
Page 5
December 14, 2005
Page 5
Pending execution of this Agreement or in the event you elect not to accept this offer, your
employment shall continue under the terms of the Existing Employment Agreement including the
automatic extension of the Employment Period as provided therein.
SunCom Wireless Management Company, Inc. |
||||
By: | /s/ Xxxxxxx X. Xxxxxxxx | |||
Xxxxxxx X. Xxxxxxxx | ||||
Chief Executive Officer | ||||
Executive |
||||
/s/ Xxxxxxx X. Xxxxxxxx | ||||
XXXXXXX X. XXXXXXXX | ||||