Contract
Exhibit 10.2
PLEDGE AGREEMENT dated as of November 18, 2004, among TRITON PCS, INC., a Delaware corporation (the “Borrower”), each Subsidiary of the Borrower listed on Schedule I hereto (each such Subsidiary individually a “Subsidiary Pledgor” and collectively, the “Subsidiary Pledgors”), SUNCOM WIRELESS INVESTMENT COMPANY LLC, a Delaware limited liability company (“SunCom Wireless Investment”; the Borrower, the Subsidiary Pledgors and SunCom Wireless Investment are referred to collectively herein as the “Pledgors”) and XXXXXX COMMERCIAL PAPER INC. (“LCPI”), as collateral agent (in such capacity, the “Collateral Agent”) for the Secured Parties (as defined in the Term Loan Agreement referred to below).
Reference is made to (a) the Term Loan Agreement dated as of November 18, 2004 (as amended, supplemented or otherwise modified from time to time, the “Term Loan Agreement”), among the Borrower, the lenders from time to time party thereto (the “Lenders”), Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated, as syndication agent, and LCPI, as administrative agent and collateral agent for the Lenders (in such capacity, the “Administrative Agent”) and (b) the Guarantee Agreement dated as of November 18, 2004 (as amended, supplemented or otherwise modified from time to time, the “Guarantee Agreement”) among certain of the Subsidiary Pledgors and the Collateral Agent.
The Lenders have agreed to make Loans to the Borrower, pursuant to, and upon the terms and subject to the conditions specified in, the Term Loan Agreement. Pursuant to the Guarantee Agreement, each of the Guarantors referred to therein has agreed to guarantee, among other things, all the obligations of the Borrower under the Term Loan Agreement. Each Pledgor (other than the Borrower) hereby acknowledges that it will derive substantial benefit from the making of the Loans by the Lenders to the Borrower. The obligations of the Lenders to make Loans are conditioned upon, among other things, the execution and delivery by the Pledgors of a Pledge Agreement in the form hereof to secure (a) the due and punctual payment by the Borrower of (i) the principal of and premium, if any, and interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Loans, when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise and (ii) all other monetary obligations, including fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), of the Borrower to the Secured Parties under the Term Loan Agreement and the other Loan Documents, (b) the due and punctual performance of all covenants, agreements, obligations and liabilities of the Borrower under or pursuant to the Term Loan Agreement and the other Loan Documents, (c) the due and punctual payment and performance of all the covenants, agreements, obligations and liabilities of (i) each Loan Party (other than Triton PCS Property Company L.L.C. and Triton PCS License Company L.L.C.) under or pursuant to the Guarantee Agreement and (ii) each Loan Party and SunCom Wireless Investment under or pursuant to the other Loan Documents and (d) the due and punctual payment and performance of all obligations of the Borrower or any other Loan Party under each Hedging Agreement entered into with any counterparty that was a Lender at the time such Hedging
Agreement was entered into (all the monetary and other obligations referred to in the preceding clauses (a) through (d) being referred to collectively as the “Obligations”). Capitalized terms used herein and not defined herein shall have meanings assigned to such terms in the Term Loan Agreement. For the avoidance of doubt, the term “Lender” as used in clause (d) of the third sentence of this paragraph shall also include each Person that both (y) is a counterparty to a Hedging Agreement with a Loan Party and (z) was a Lender or an Affiliate of a Lender at the time such Hedging Agreement was entered into and the term “Secured Party” as used in this Pledge Agreement shall include each such Affiliate.
Accordingly, the Pledgors and the Collateral Agent, on behalf of itself and each Secured Party (and each of their respective successors or assigns), hereby agree as follows:
SECTION 1. Pledge. As security for the payment and performance, as the case may be, in full of the Obligations, each Pledgor hereby transfers, grants, bargains, sells, conveys, hypothecates, pledges, sets over and delivers unto the Collateral Agent, its successors and assigns, and hereby grants to the Collateral Agent, its successors and assigns, for the ratable benefit of the Secured Parties, a security interest in all of the Pledgor’s right, title and interest in, to and under (a) the shares of capital stock, membership interests or other equity interests owned by it as of the date hereof all of which are listed on Schedule II hereto and any shares of capital stock, membership interests or other equity interests obtained in the future by the Pledgor and the certificates representing all such shares, membership interests or other equity interests (the “Pledged Interests”); provided that the Pledged Interests shall not include (i) more than 65% of the issued and outstanding shares of voting stock of any Foreign Subsidiary, (ii) to the extent that applicable law requires that a Subsidiary of the Pledgor issue directors’ qualifying shares, such qualifying shares, (iii) shares of capital stock, membership interests or other equity interests owned by SunCom Wireless Investment other than the capital stock of the Borrower owned by it and (iv) shares of capital stock, membership interests or other equity interests of Triton License Newco, LLC at any time from or after the First Closing (as defined in the Exchange Agreement) or of Triton Network SMLLC, LLC at any time; (b)(i) the debt securities owned by it as of the date hereof all of which are listed opposite the name of the Pledgor on Schedule II hereto, (ii) any debt securities in the future issued to the Pledgor and (iii) the promissory notes and any other instruments evidencing such debt securities (the “Pledged Debt Securities”); provided that the Pledged Debt Securities shall not include debt securities held or owned by SunCom Wireless Investment (c) all other property that may be delivered to and held by the Collateral Agent pursuant to the terms hereof; (d) subject to Section 6, all payments of principal or interest, dividends, cash, instruments and other property from time to time received, receivable or otherwise distributed, in respect of, in exchange for or upon the conversion of, the securities referred to in clauses (a) and (b) above; (e) subject to Section 6, all rights and privileges of the Pledgor with respect to the securities and other property referred to in clauses (a), (b), (c) and (d) above; and (f) all proceeds of any of the foregoing (the items referred to in clauses (a) through (f) above being collectively referred to as the “Collateral”). Upon delivery to the Collateral Agent, (a) any stock certificates, notes or other securities now or hereafter included in the Collateral (the “Pledged Securities”) shall be accompanied by stock powers duly executed in blank or other instruments of transfer satisfactory to the Collateral Agent and by such other instruments and documents as the Collateral Agent may reasonably request and (b) all other property comprising part of the Collateral shall be accompanied by proper instruments of assignment duly executed by the applicable Pledgor and such other instruments or documents as the Collateral Agent may reasonably request. Each delivery of Pledged Securities shall be accompanied by a schedule describing the securities theretofore and then being pledged hereunder, which schedule shall be attached hereto as Schedule II and made a part hereof. Each schedule so delivered shall supersede any prior schedules so delivered. Notwithstanding anything
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to the contrary contained herein, no property or asset of SunCom Wireless Investment shall be, or be deemed to be, Collateral for any purposes of this Agreement, the Term Loan Agreement or any other Loan Document, other than the capital stock of the Borrower owned by SunCom Wireless Investment.
TO HAVE AND TO HOLD the Collateral, together with all right, title, interest, powers, privileges and preferences pertaining or incidental thereto, unto the Collateral Agent, its successors and assigns, for the ratable benefit of the Secured Parties, forever; subject, however, to the terms, covenants and conditions hereinafter set forth.
Anything contained in this Agreement to the contrary notwithstanding, the obligations secured by the pledge made by each Pledgor hereunder shall be limited to a maximum aggregate amount equal to the greatest amount that would not render such Pledgor’s pledge hereunder subject to avoidance as a fraudulent transfer or conveyance under Section 548 of Title 11 of the United States Code or any provisions of applicable state law (collectively, the “Fraudulent Transfer Laws”), in each case after giving effect to all other liabilities of such Pledgor, contingent or otherwise, that are relevant under the Fraudulent Transfer Laws (specifically excluding, however, any liabilities of such Pledgor (a) in respect of intercompany indebtedness to the Borrower or Affiliates of the Borrower to the extent that such indebtedness would be discharged in an amount equal to the amount of the obligations secured by the pledge made by such Pledgor hereunder and (b) under any Guarantee of senior unsecured indebtedness or Indebtedness subordinated in right of payment to the Obligations which Guarantee contains a limitation as to maximum amount similar to that set forth in this paragraph, pursuant to which the liability of such Pledgor hereunder is included in the liabilities taken into account in determining such maximum amount) and after giving effect as assets to the value (as determined under the applicable provisions of the Fraudulent Transfer Laws) of any rights to subrogation, contribution, reimbursement, indemnity or similar rights of such Pledgor pursuant to (i) applicable law or (ii) any agreement providing for an equitable allocation among such Pledgor and other Affiliates of the Borrower of obligations arising under Guarantees by such parties (including the Indemnity, Subrogation and Contribution Agreement).
SECTION 2. Delivery of the Collateral. (a) Each Pledgor agrees promptly to deliver or cause to be delivered to the Collateral Agent any and all Pledged Securities, and any and all certificates or other instruments or documents representing the Collateral.
(b) Each Pledgor will cause any Indebtedness for borrowed money owed to the Pledgor by any person to be evidenced by a duly executed promissory note that, if constituting a Pledged Security, is pledged and delivered to the Collateral Agent pursuant to the terms hereof.
SECTION 3. Representations, Warranties and Covenants. (a) Each Pledgor hereby represents, warrants and covenants, as to itself and the Collateral pledged by it hereunder, to and with the Collateral Agent that:
(i) the Pledged Stock represents as of the date hereof that percentage as set forth on Schedule II of the issued and outstanding shares of each class of the capital stock of the issuer with respect thereto;
(ii) except for the security interest granted hereunder, or as otherwise specifically permitted in the Term Loan Agreement, and except that any Pledgor owning Capital Stock of the Borrower may transfer such Capital Stock, so long as no Change of Control results and the transferee becomes a party to this Agreement as a Pledgor in respect of
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such Capital Stock, the Pledgor (A) is and will at all times continue to be the direct owner, beneficially and of record, of the Pledged Securities indicated on Schedule II, (B) holds the same free and clear of all Liens, except for Liens permitted by clauses (a) and (e) of the definition of “Permitted Encumbrances” in the Term Loan Agreement, (C) will make no assignment, pledge, hypothecation or transfer of, or create or permit to exist any security interest in or other Lien on, the Collateral, other than pursuant hereto, and (D) subject to Section 6, will cause any and all Collateral, whether for value paid by the Pledgor or otherwise, to be forthwith deposited with the Collateral Agent and pledged or assigned hereunder; except for restrictions and limitations imposed by the Loan Documents, securities laws generally, or the Communications Act, the Collateral is and will continue to be freely transferable and assignable, and none of the Collateral is or will be subject to any option, right of first refusal, shareholders agreement, charter or by-law provisions or contractual restriction of any nature that might prohibit, impair, delay or otherwise affect the pledge of such Collateral hereunder, the sale or disposition thereof pursuant hereto or the exercise by the Collateral Agent of rights and remedies hereunder;
(iii) the Pledgor (A) has the power and authority to pledge the Collateral in the manner hereby done or contemplated and (B) will defend its title or interest thereto or therein against any and all Liens (other than the Lien created by this Agreement), however arising, of all persons whomsoever;
(iv) no consent of any other person (including stockholders or creditors of any Pledgor) and no consent or approval of any Governmental Authority or any securities exchange was or is necessary to the validity of the pledge effected hereby;
(v) by virtue of the execution and delivery by the Pledgors of this Agreement, when the Pledged Securities, certificates or other documents representing or evidencing the Collateral are delivered to the Collateral Agent in accordance with this Agreement, the Collateral Agent will obtain, subject to clauses (a) and (e) of the definition of “Permitted Encumbrances” in the Term Loan Agreement, a valid and perfected first lien upon and security interest in such Pledged Securities as security for the payment and performance of the Obligations;
(vi) the pledge effected hereby is effective to vest in the Collateral Agent, on behalf of the Secured Parties, the rights of the Collateral Agent in the Collateral as set forth herein;
(vii) all of the Pledged Stock has been duly authorized and validly issued and is fully paid and nonassessable;
(viii) all information set forth herein relating to the Pledged Stock is accurate and complete in all material respects as of the date hereof; and
(ix) the pledge of the Pledged Stock pursuant to this Agreement does not violate Regulation T, U or X of the Federal Reserve Board or any successor thereto as of the date hereof.
(b) Each Pledgor that is the owner of any capital stock of the Borrower pledged hereunder (each, a “Transferring Pledgor”) hereby covenants to and with the Collateral Agent that, if such Transferring Pledgor sells or otherwise transfers any such capital stock to any Person
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that is not a party to this Agreement as a Pledgor, such Transferring Pledgor shall cause such Person to become a party to this Agreement as a Pledgor.
SECTION 4. Certification of Limited Liability Company and Limited Partnership Interests. (a) Each Pledgor that is the issuer of any interest in any limited liability company or limited partnership, pledged hereunder and represented by a certificate, hereby agrees that such interest shall be a “security” within the meaning of Article 8 of the New York UCC, shall be covered by Article 8 of the Uniform Commercial Code as in effect in the State of New York and shall at all times hereafter be represented by a certificate.
(b) Each Pledgor further acknowledges and agrees that (i) each interest in any limited liability company or limited partnership issued by such Pledgor, pledged hereunder and not represented by a certificate, shall not be for purposes of this Agreement and the other Loan Documents a “security” within the meaning of Article 8 of the New York UCC and shall not be governed by Article 8 of the New York UCC, and (ii) such Pledgor shall at no time elect to treat any such interest as a “security” within the meaning of Article 8 of the New York UCC or issue any certificate representing such interest, unless the Grantor provides prior written notification to the Collateral Agent of such election and immediately delivers any such certificate to the Collateral Agent pursuant to the terms hereof. Notwithstanding the foregoing, each Pledgor that is the issuer of any interest in any limited partnership or limited liability company that is pledged hereunder hereby agrees, and each Pledgor of any such interest hereby instructs such issuer, that if any such interest is, or shall become, an uncertificated security (within the meaning of Article 8 of the New York UCC), such issuer will comply with instructions originated by the Collateral Agent in respect of such interest without further consent by the Pledgor that is the registered owner of such interest.
(c) Each Person that is the issuer of any interest in any limited partnerships or limited liability company pledged hereunder and is not a Pledgor hereunder (each such Person, a “Non-Pledgor Issuer”), hereby agrees (by the signature of such Person on the signature pages hereof) (i) with respect to any such interest pledged hereunder and represented by a certificate, that such interest shall be a “security” within the meaning of Article 8 of the New York UCC, shall be covered by Article 8 of the Uniform Commercial Code as in effect in the State of New York and shall at all times hereafter be represented by a certificate and (ii) with respect to any such interest pledged hereunder and not represented by a certificate, that (A) such interest shall not be for purposes of this Agreement and the other Loan Documents a “security” within the meaning of Article 8 of the New York UCC and shall not be governed by Article 8 of the New York UCC and (B) such Non-Pledgor Issuer shall at no time elect to treat any such interest as a “security” within the meaning of Article 8 of the New York UCC or issue any certificate representing such interest, unless such Non-Pledgor Issuer provides prior written notification to the Collateral Agent of such election and immediately delivers any such certificate to the Collateral Agent pursuant to the terms hereof. Notwithstanding the foregoing, each Non-Pledgor Issuer that is the issuer of any interest in any limited partnership or limited liability company that is pledged hereunder hereby agrees, and each Pledgor of any such interest hereby instructs such Non-Pledgor Issuer, that if any such interest is, or shall become, an uncertificated security (within the meaning of Article 8 of the New York UCC), such Non-Pledgor Issuer will comply with instructions originated by the Collateral Agent in respect of such interest without further consent by the Pledgor that is the registered owner of such interest.
SECTION 5. Registration in Nominee Name; Denominations. After the occurrence and during the continuance of an Event of Default, but subject to Section 27, the Collateral Agent, on behalf of the Secured Parties, shall have the right (in its sole and absolute discretion) to
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hold the Pledged Securities in its own name as pledgee, the name of its nominee (as pledgee or as sub-agent) or the name of the Pledgors, endorsed or assigned in blank or in favor of the Collateral Agent. Each Pledgor will promptly give to the Collateral Agent copies of any notices or other communications received by it with respect to Pledged Securities registered in the name of such Pledgor. The Collateral Agent shall at all times have the right to exchange the certificates representing Pledged Securities for certificates of smaller or larger denominations for any purpose consistent with this Agreement.
SECTION 6. Voting Rights; Dividends and Interest, etc. (a) Unless and until an Event of Default shall have occurred and be continuing:
(i) Each Pledgor shall be entitled to exercise any and all voting and/or other consensual rights and powers inuring to an owner of Pledged Securities or any part thereof for any purpose consistent with the terms of this Agreement, the Term Loan Agreement and the other Loan Documents; provided, however, that, subject to Section 27, such Pledgor will not be entitled to exercise any such right if the result thereof could materially and adversely affect the rights inuring to a holder of the Pledged Securities or the rights and remedies of any of the Secured Parties under this Agreement or the Term Loan Agreement or any other Loan Document or the ability of the Secured Parties to exercise the same.
(ii) The Collateral Agent shall execute and deliver to each Pledgor, or cause to be executed and delivered to each Pledgor, all such proxies, powers of attorney and other instruments as such Pledgor may reasonably request for the purpose of enabling such Pledgor to exercise the voting and/or consensual rights and powers it is entitled, subject to Section 27, to exercise pursuant to subparagraph (i) above and to receive the cash dividends it is entitled to receive pursuant to subparagraph (iii) below.
(iii) Each Pledgor shall be entitled to receive and retain any and all cash dividends, interest and principal paid on the Pledged Securities to the extent and only to the extent that such cash dividends, interest and principal are permitted by, and otherwise paid in accordance with, the terms and conditions of the Term Loan Agreement, the other Loan Documents and applicable laws. All noncash dividends, interest and principal, and all dividends, interest and principal paid or payable in cash or otherwise in connection with a partial or total liquidation or dissolution, return of capital, capital surplus or paid-in surplus, and all other distributions (other than distributions referred to in the preceding sentence) made on or in respect of the Pledged Securities, whether paid or payable in cash or otherwise, whether resulting from a subdivision, combination or reclassification of the outstanding capital stock of the issuer of any Pledged Securities or received in exchange for Pledged Securities or any part thereof, or in redemption thereof, or as a result of any merger, consolidation, acquisition or other exchange of assets to which such issuer may be a party or otherwise, shall be and become part of the Collateral, and, if received by any Pledgor, shall not be commingled by such Pledgor with any of its other funds or property but shall be held separate and apart therefrom, shall be held in trust for the benefit of the Collateral Agent and shall be forthwith delivered to the Collateral Agent in the same form as so received (with any necessary endorsement).
(b) Upon the occurrence and during the continuance of an Event of Default, all rights of any Pledgor to dividends, interest or principal that such Pledgor is authorized to receive pursuant to paragraph (a)(iii) above shall cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall have the sole and exclusive right and authority to receive and
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retain such dividends, interest or principal. All dividends, interest or principal received by the Pledgor contrary to the provisions of this Section 6 shall be held in trust for the benefit of the Collateral Agent, shall be segregated from other property or funds of such Pledgor and shall be forthwith delivered to the Collateral Agent upon demand in the same form as so received (with any necessary endorsement). Any and all money and other property paid over to or received by the Collateral Agent pursuant to the provisions of this paragraph (b) shall be retained by the Collateral Agent in an account to be established by the Collateral Agent upon receipt of such money or other property and shall be applied in accordance with the provisions of Section 8. After all Events of Default have been cured or waived, the Collateral Agent shall, within five Business Days after all such Events of Default have been cured or waived, repay to each Pledgor all cash dividends, interest or principal (without interest), that such Pledgor would otherwise be permitted to retain pursuant to the terms of paragraph (a)(iii) above and which remain in such account.
(c) Upon the occurrence and during the continuance of an Event of Default, subject to Section 27, all rights of any Pledgor to exercise the voting and consensual rights and powers it is entitled to exercise pursuant to paragraph (a)(i) of this Section 6, and the obligations of the Collateral Agent under paragraph (a)(ii) of this Section 6, shall cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall have the sole and exclusive right and authority to exercise such voting and consensual rights and powers, provided that, unless otherwise directed by the Required Lenders, the Collateral Agent shall have the right from time to time following and during the continuance of an Event of Default to permit the Pledgors to exercise such rights; and provided, further, that, to the extent a transfer of control of the Collateral or of voting or consent rights in the Collateral would affect the control of, or effect a transfer of control of, any license, permit or other authorization issued by the FCC, all rights of the Pledgor to exercise the voting and consensual rights and powers it is entitled to exercise pursuant to paragraph (a)(i) of this Section 6, and the obligations of the Collateral Agent under paragraph (a)(ii) of this Section 6 shall remain in effect until, and only until, (x) all required consents of the FCC shall have been obtained for the transfer of control of the Collateral to a court appointed receiver or trustee or to a bona fide purchaser for value in an arms-length sale, which Pledgor shall cooperate fully to obtain and (y) the FCC shall have been notified of the consummation of such transfer. After all such required consents of the FCC shall have been obtained and the FCC shall have been notified of the consummation of such transfer, all rights of Pledgor to exercise the voting and consensual rights and powers it is entitle to exercise pursuant to paragraph (a)(i) of this Section 6, and the obligations of the Collateral Agent under paragraph (a)(ii) of this Section 6 shall become vested in Collateral Agent or in a court appointed receiver or trustee or to a bona fide purchaser for value in an arms-length sale, which Pledgor shall cooperate fully to obtain. After all Events of Default have been cured or waived, such Pledgor will have the right to exercise the voting and consensual rights and powers that it would otherwise be entitled to exercise pursuant to the terms of paragraph (a)(i) above.
SECTION 7. Remedies upon Default. Upon the occurrence and during the continuance of an Event of Default, subject to applicable regulatory and legal requirements, including but not limited to any necessary prior approval of the FCC, as provided in Section 27 hereof, the Collateral Agent may sell the Collateral, or any part thereof, at public or private sale or at any broker’s board or on any securities exchange, for cash, upon credit or for future delivery as the Collateral Agent shall deem appropriate. The Collateral Agent shall be authorized at any such sale (if it deems it advisable to do so) to restrict the prospective bidders or purchasers to persons who will represent and agree that they are purchasing the Collateral for their own account for investment and not with a view to the distribution or sale thereof, and upon consummation of any such sale the Collateral Agent shall have the right to assign, transfer and deliver to the
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purchaser or purchasers thereof the Collateral so sold. Each such purchaser at any such sale shall hold the property sold absolutely free from any claim or right on the part of any Pledgor, and, to the extent permitted by applicable law, the Pledgors hereby waive all rights of redemption, stay, valuation and appraisal any Pledgor now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted.
The Collateral Agent shall give a Pledgor 10 days’ prior written notice (which each Pledgor agrees is reasonable notice within the meaning of Section 9-610 of the Uniform Commercial Code as in effect in the State of New York or its equivalent in other jurisdictions) of the Collateral Agent’s intention to make any sale of such Pledgor’s Collateral. Such notice, in the case of a public sale, shall state the time and place for such sale and, in the case of a sale at a broker’s board or on a securities exchange, shall state the board or exchange at which such sale is to be made and the day on which the Collateral, or portion thereof, will first be offered for sale at such board or exchange. Any such public sale shall be held at such time or times within ordinary business hours and at such place or places as the Collateral Agent may fix and state in the notice of such sale. At any such sale, the Collateral, or portion thereof, to be sold may be sold in one lot as an entirety or in separate parcels, as the Collateral Agent may (in its sole and absolute discretion) determine. The Collateral Agent shall not be obligated to make any sale of any Collateral if it shall determine not to do so, regardless of the fact that notice of sale of such Collateral shall have been given. The Collateral Agent may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice, be made at the time and place to which the same was so adjourned. In case any sale of all or any part of the Collateral is made on credit or for future delivery, the Collateral so sold may be retained by the Collateral Agent until the sale price is paid in full by the purchaser or purchasers thereof, but the Collateral Agent shall not incur any liability in case any such purchaser or purchasers shall fail to take up and pay for the Collateral so sold and, in case of any such failure, such Collateral may be sold again upon like notice. At any public (or, to the extent permitted by applicable law, private) sale made pursuant to this Section 7, any Secured Party may bid for or purchase, free from any right of redemption, stay or appraisal on the part of any Pledgor (all said rights being also hereby waived and released), the Collateral or any part thereof offered for sale and may make payment on account thereof by using any claim then due and payable to it from such Pledgor as a credit against the purchase price, and it may, upon compliance with the terms of sale, hold, retain and dispose of such property without further accountability to such Pledgor therefor. For purposes hereof, (a) a written agreement to purchase the Collateral or any portion thereof shall be treated as a sale thereof, (b) the Collateral Agent shall be free to carry out such sale pursuant to such agreement and (c) such Pledgor shall not be entitled to the return of the Collateral or any portion thereof subject thereto, notwithstanding the fact that after the Collateral Agent shall have entered into such an agreement all Events of Default shall have been remedied and the Obligations paid in full. As an alternative to exercising the power of sale herein conferred upon it, the Collateral Agent may proceed by a suit or suits at law or in equity to foreclose upon the Collateral and to sell the Collateral or any portion thereof pursuant to a judgment or decree of a court or courts having competent jurisdiction or pursuant to a proceeding by a court-appointed receiver. Any sale pursuant to the provisions of this Section 7 shall be deemed to conform to the commercially reasonable standards as provided in Section 9-601 of the Uniform Commercial Code as in effect in the State of New York or its equivalent in other jurisdictions. The exercise by the purchaser at any such sale of voting rights in the Collateral shall be subject to compliance with the Communications Act.
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SECTION 8. Application of Proceeds of Sale. The proceeds of any sale of Collateral pursuant to Section 7, as well as any Collateral consisting of cash, shall be applied by the Collateral Agent as follows:
FIRST, to the payment of all costs and expenses incurred by the Administrative Agent or the Collateral Agent (in its capacity as such hereunder or under any other Loan Document) in connection with such sale or otherwise in connection with this Agreement, any other Loan Document or any of the Obligations, including all court costs and the reasonable fees and expenses of its agents and legal counsel, the repayment of all advances made by the Collateral Agent hereunder or under any other Loan Document on behalf of any Pledgor and any other costs or expenses incurred in connection with the exercise of any right or remedy hereunder or under any other Loan Document;
SECOND, to the payment in full of the Obligations (the amounts so applied to be distributed among the Secured Parties pro rata in accordance with the amounts of the Obligations owed to them on the date of any such distribution); and
THIRD, to the Pledgors, their successors or assigns, or as a court of competent jurisdiction may otherwise direct.
The Collateral Agent shall have absolute discretion as to the time of application of any such proceeds, moneys or balances in accordance with this Agreement. Upon any sale of the Collateral by the Collateral Agent (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the purchase money by the Collateral Agent or of the officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to the Collateral Agent or such officer or be answerable in any way for the misapplication thereof.
SECTION 9. Reimbursement of Collateral Agent. (a) Each Pledgor agrees to pay upon demand to the Collateral Agent the amount of any and all reasonable expenses, including the reasonable fees, other charges and disbursements of its counsel and of any experts or agents, that the Collateral Agent may incur in connection with (i) the administration of this Agreement, (ii) the custody or preservation of, or the sale of, collection from, or other realization upon, any of the Collateral, (iii) the exercise or enforcement of any of the rights of the Collateral Agent hereunder or (iv) the failure by such Pledgor to perform or observe any of the provisions hereof.
(b) Without limitation of its indemnification obligations under the other Loan Documents, each Pledgor agrees to indemnify the Collateral Agent and the Indemnitees (as defined in Section 8.05 of the Term Loan Agreement) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including reasonable counsel fees, other charges and disbursements, incurred by or asserted against any Indemnitee arising out of, in any way connected with, or as a result of, any claim, litigation, investigation or proceeding relating to the execution or delivery of this Agreement or any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations thereunder or the consummation of the Transactions and the other transactions contemplated thereby whether or not any Indemnitee is a party thereto, provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or wilful misconduct of such Indemnitee.
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(c) Any amounts payable as provided hereunder shall be additional Obligations secured hereby and by the other Security Documents. The provisions of this Section 9 shall remain operative and in full force and effect regardless of the termination of this Agreement, the consummation of the transactions contemplated hereby, the repayment of any of the Obligations, the invalidity or unenforceability of any term or provision of this Agreement or any other Loan Document or any investigation made by or on behalf of the Collateral Agent or any other Secured Party. All amounts due under this Section 9 shall be payable on written demand therefor and shall bear interest at the rate specified in Section 2.10(c) of the Term Loan Agreement.
SECTION 10. Collateral Agent Appointed Attorney-in-Fact. Each Pledgor hereby appoints the Collateral Agent the attorney-in-fact of such Pledgor for the purpose, upon the occurrence and during the continuance of an Event of Default, of carrying out the provisions of this Agreement and taking any action and executing any instrument that the Collateral Agent may deem necessary or advisable to accomplish the purposes hereof, which appointment is irrevocable and coupled with an interest. Without limiting the generality of the foregoing, the Collateral Agent shall have the right, upon the occurrence and during the continuance of an Event of Default, with full power of substitution either in the Collateral Agent’s name or in the name of such Pledgor, to ask for, demand, xxx for, collect, receive and give acquittance for any and all moneys due or to become due under and by virtue of any Collateral, to endorse checks, drafts, orders and other instruments for the payment of money payable to the Pledgor representing any interest or dividend or other distribution payable in respect of the Collateral or any part thereof or on account thereof and to give full discharge for the same, to settle, compromise, prosecute or defend any action, claim or proceeding with respect thereto, and to sell, assign, endorse, pledge, transfer and to make any agreement respecting, or otherwise deal with, the same; provided, however, that nothing herein contained shall be construed as requiring or obligating the Collateral Agent to make any commitment or to make any inquiry as to the nature or sufficiency of any payment received by the Collateral Agent, or to present or file any claim or notice, or to take any action with respect to the Collateral or any part thereof or the moneys due or to become due in respect thereof or any property covered thereby. The Collateral Agent and the other Secured Parties shall be accountable only for amounts actually received as a result of the exercise of the powers granted to them herein, and neither they nor their officers, directors, employees or agents shall be responsible to any Pledgor for any act or failure to act hereunder, except for their own gross negligence or wilful misconduct. Notwithstanding anything to the contrary contained herein, the foregoing power of attorney, and the taking of any action by the Collateral Agent pursuant thereto, shall be subject to the provisions of Section 27, and the Collateral Agent may not act as attorney-in-fact in any respect that would contravene the rules and policies of the FCC or that would effectuate a transfer of control of any license, permit or other authorization issued by the FCC without all necessary prior approval of the FCC.
SECTION 11. Waivers; Amendment. (a) No failure or delay of the Collateral Agent in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Collateral Agent hereunder and of the other Secured Parties under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provisions of this Agreement or consent to any departure by any Pledgor therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) below, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. No notice or demand on any Pledgor in any case shall entitle such Pledgor to any other or further notice or demand in similar or other circumstances.
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(b) Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to a written agreement entered into between the Collateral Agent and the Pledgor or Pledgors with respect to which such waiver, amendment or modification is to apply, subject to any consent required in accordance with Section 8.02 of the Term Loan Agreement.
SECTION 12. Securities Act, etc. In view of the position of the Pledgors in relation to the Pledged Securities, or because of other current or future circumstances, a question may arise under the Securities Act of 1933, as now or hereafter in effect, or any similar statute hereafter enacted analogous in purpose or effect (such Act and any such similar statute as from time to time in effect being called the “Federal Securities Laws”) with respect to any disposition of the Pledged Securities permitted hereunder. Each Pledgor understands that compliance with the Federal Securities Laws might very strictly limit the course of conduct of the Collateral Agent if the Collateral Agent were to attempt to dispose of all or any part of the Pledged Securities, and might also limit the extent to which or the manner in which any subsequent transferee of any Pledged Securities could dispose of the same. Similarly, there may be other legal restrictions or limitations affecting the Collateral Agent in any attempt to dispose of all or part of the Pledged Securities under applicable Blue Sky or other state securities laws or similar laws analogous in purpose or effect. Each Pledgor recognizes that in light of such restrictions and limitations the Collateral Agent may, with respect to any sale of the Pledged Securities, limit the purchasers to those who will agree, among other things, to acquire such Pledged Securities for their own account, for investment, and not with a view to the distribution or resale thereof. Each Pledgor acknowledges and agrees that in light of such restrictions and limitations, the Collateral Agent, in its sole and absolute discretion, (a) may proceed to make such a sale whether or not a registration statement for the purpose of registering such Pledged Securities or part thereof shall have been filed under the Federal Securities Laws and (b) may approach and negotiate with a single potential purchaser to effect such sale. Each Pledgor acknowledges and agrees that any such sale might result in prices and other terms less favorable to the seller than if such sale were a public sale without such restrictions. In the event of any such sale, the Collateral Agent shall incur no responsibility or liability for selling all or any part of the Pledged Securities at a price that the Collateral Agent, in its sole and absolute discretion, may in good xxxxx xxxx reasonable under the circumstances, notwithstanding the possibility that a substantially higher price might have been realized if the sale were deferred until after registration as aforesaid or if more than a single purchaser were approached. The provisions of this Section 12 will apply notwithstanding the existence of a public or private market upon which the quotations or sales prices may exceed substantially the price at which the Collateral Agent sells.
SECTION 13. Registration, etc. Each Pledgor agrees that, upon the occurrence and during the continuance of an Event of Default hereunder, if for any reason the Collateral Agent desires to sell any of the Pledged Securities of the Borrower at a public sale, it will, at any time and from time to time, upon the written request of the Collateral Agent, use commercially reasonable efforts to take or to cause the issuer of such Pledged Securities to take such action and prepare, distribute and/or file such documents, as are required or advisable in the reasonable opinion of counsel for the Collateral Agent to permit the public sale of such Pledged Securities. Each Pledgor further agrees to indemnify, defend and hold harmless the Collateral Agent, each other Secured Party, any underwriter and their respective officers, directors, affiliates and controlling persons from and against all loss, liability, expenses, costs of counsel (including, without limitation, reasonable fees and expenses to the Collateral Agent of legal counsel), and claims (including the costs of investigation) that they may incur insofar as such loss, liability, expense or claim arises out of or is based upon any alleged untrue statement of a material fact contained in any prospectus (or any amendment or supplement thereto) or in any notification or
11
offering circular, or arises out of or is based upon any alleged omission to state a material fact required to be stated therein or necessary to make the statements in any thereof not misleading, except insofar as the same may have been caused by any untrue statement or omission based upon information furnished in writing to such Pledgor or the issuer of such Pledged Securities by the Collateral Agent or any other Secured Party expressly or any other indemnified person referred to above for use therein. Each Pledgor further agrees, upon such written request referred to above, to use commercially reasonable efforts to qualify, file or register, or cause the issuer of such Pledged Securities to qualify, file or register, any of the Pledged Securities under the Blue Sky or other securities laws of such states as may be requested by the Collateral Agent and keep effective, or cause to be kept effective, all such qualifications, filings or registrations. Each Pledgor will bear all costs and expenses of carrying out its obligations under this Section 13. Each Pledgor acknowledges that there is no adequate remedy at law for failure by it to comply with the provisions of this Section 13 and that such failure would not be adequately compensable in damages, and therefore agrees that its agreements contained in this Section 13 may be specifically enforced.
SECTION 14. Security Interest Absolute. All rights of the Collateral Agent hereunder, the grant of a security interest in the Collateral and all obligations of each Pledgor hereunder, shall be absolute and unconditional irrespective of (a) any lack of validity or enforceability of the Term Loan Agreement, any other Loan Document, any agreement with respect to any of the Obligations or any other agreement or instrument relating to any of the foregoing, (b) any change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure from the Term Loan Agreement, any other Loan Document or any other agreement or instrument relating to any of the foregoing, (c) any exchange, release or nonperfection of any other collateral, or any release or amendment or waiver of or consent to or departure from any guaranty, for all or any of the Obligations or (d) any other circumstance that might otherwise constitute a defense available to, or a discharge of, any Pledgor in respect of the Obligations or in respect of this Agreement (other than the payment in full of all the Obligations).
SECTION 15. Termination or Release. (a) This Agreement and the security interests granted hereby shall terminate when all the Obligations have been paid in full and the Lenders have no further commitment to lend under the Term Loan Agreement.
(b) Upon any sale or other transfer by any Pledgor of any Collateral (other than any capital stock of the Borrower owned by such Pledgor) that is permitted under the Term Loan Agreement to any person that is not a Pledgor, or, upon the effectiveness of any written consent to the release of the security interest granted hereby in any Collateral pursuant to Section 8.02(b) of the Term Loan Agreement, the security interest in such Collateral shall be automatically released. The security interest granted by the License Subsidiary in the equity interests of Triton License Newco shall be automatically released immediately prior to the First Closing (as that term is defined in the Exchange Agreement).
(c) In connection with any termination or release pursuant to paragraph (a) or (b), the Collateral Agent shall execute and deliver to any Pledgor, at such Pledgor’s expense, all documents that such Pledgor shall reasonably request to evidence such termination or release. Any execution and delivery of documents pursuant to this Section 15 shall be without recourse to or warranty by the Collateral Agent.
SECTION 16. Notices. All communications and notices hereunder shall be in writing and given as provided in Section 8.01 of the Term Loan Agreement. All communications and
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notices hereunder to any Subsidiary Pledgor or Non-Pledgor Issuer shall be given to it in care of the Borrower at the address set forth in the Term Loan Agreement.
SECTION 17. Further Assurances. Each Pledgor agrees to do such further acts and things, and to execute and deliver such additional conveyances, assignments, agreements and instruments, as the Collateral Agent may at any time reasonably request in connection with the administration and enforcement of this Agreement or with respect to the Collateral or any part thereof or in order better to assure and confirm unto the Collateral Agent its rights and remedies hereunder.
SECTION 18. Binding Effect; Several Agreement; Assignments. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the successors and assigns of such party; and all covenants, promises and agreements by or on behalf of any Pledgor that are contained in this Agreement shall bind and inure to the benefit of its successors and assigns. This Agreement shall become effective as to any Pledgor when a counterpart hereof executed on behalf of such Pledgor shall have been delivered to the Collateral Agent and a counterpart hereof shall have been executed on behalf of the Collateral Agent, and thereafter shall be binding upon such Pledgor and the Collateral Agent and their respective successors and assigns, and shall inure to the benefit of such Pledgor, the Collateral Agent and the other Secured Parties, and their respective successors and assigns, except that no Pledgor shall have the right to assign its rights hereunder or any interest herein or in the Collateral (and any such attempted assignment shall be void), except as expressly contemplated by this Agreement or the other Loan Documents. If all of the capital stock of a Pledgor (other than the Borrower) is sold, transferred or otherwise disposed of to a person that is not an Affiliate of the Borrower pursuant to a transaction permitted by Section 5.03 of the Term Loan Agreement, such Pledgor shall be released from its obligations under this Agreement without further action. This Agreement shall be construed as a separate agreement with respect to each Pledgor and may be amended, modified, supplemented, waived or released with respect to any Pledgor without the approval of any other Pledgor and without affecting the obligations of any other Pledgor hereunder.
SECTION 19. Survival of Agreement; Severability. (a) All covenants, agreements, representations and warranties made by each Pledgor herein and in the certificates or other instruments prepared or delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the Collateral Agent and the other Secured Parties and shall survive the making by the Lenders of the Loans, regardless of any investigation made by the Secured Parties or on their behalf, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any other fee or amount payable under this Agreement or any other Loan Document is outstanding and unpaid and as long as the Commitments have not been terminated.
(b) In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.
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SECTION 20. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
SECTION 21. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute a single contract, and shall become effective as provided in Section 18. Delivery of an executed counterpart of a signature page to this Agreement by facsimile transmission shall be as effective as delivery of a manually executed counterpart of this Agreement.
SECTION 22. Rules of Interpretation. The rules of interpretation specified in Section 1.03 of the Term Loan Agreement shall be applicable to this Agreement. Section headings used herein are for convenience of reference only, are not part of this Agreement and are not to affect the construction of, or to be taken into consideration in interpreting this Agreement.
SECTION 23. Jurisdiction; Consent to Service of Process. (a) Each Pledgor hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any New York State court or Federal court of the United States of America sitting in New York City, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or the other Loan Documents, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that, to the extent permitted by applicable law, all claims in respect of any such action or proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that the Collateral Agent or any other Secured Party may otherwise have to bring any action or proceeding relating to this Agreement or the other Loan Documents against any Pledgor or its properties in the courts of any jurisdiction.
(b) Each Pledgor hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or the other Loan Documents in any New York State or Federal court. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
(c) Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 16. Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.
SECTION 24. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
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PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
SECTION 25. Additional Pledgors. Pursuant to Section 5.17 of the Term Loan Agreement, (i) each Domestic Subsidiary of the Borrower that is not a Special Purpose Subsidiary and was not in existence or not a Domestic Subsidiary on the date of the Term Loan Agreement is required to enter in this Agreement as a Subsidiary Pledgor upon becoming a Domestic Subsidiary if such Subsidiary owns or possesses property of a type that would be considered Collateral hereunder and (ii) each Subsidiary of the Borrower, all or any portion of the capital stock of which is required pursuant to such Section to be pledged hereunder, but which is not required pursuant to such Section to become a Pledgor, is required to enter into this Agreement as a Non-Pledgor Issuer. Pursuant to Section 3(b) hereof, in connection with any transfer of capital stock of the Borrower to any Person (other than any Subsidiary of the Borrower), such Person is required to enter into this Agreement as a Pledgor if it is not already a Pledgor hereunder. Upon execution and delivery by the Collateral Agent and a Subsidiary of an instrument in the form of Annex 1, such Subsidiary shall become a Subsidiary Pledgor hereunder with the same force and effect as if originally named as a Subsidiary Pledgor herein. Upon execution and delivery of an instrument in the form of Annex 1 by the Collateral Agent and a Person (other than a Subsidiary of the Borrower), such Person shall become a Pledgor hereunder with the same force and effect as if originally named a Pledgor herein. Upon execution and delivery by the Collateral Agent and a Subsidiary of an instrument in the form of Annex 2, such Subsidiary shall become a Non-Pledgor Issuer hereunder with the same force and effect as if originally named as a Non-Pledgor Issuer herein. The execution and delivery of either of such instruments shall not require the consent of any Pledgor or Non-Pledgor Issuer hereunder. The rights and obligations of each Pledgor and each Non-Pledgor Issuer hereunder shall remain in full force and effect notwithstanding the addition of any new Pledgor, Subsidiary Pledgor or Non-Pledgor Issuer as a party to this Agreement.
SECTION 26. Execution of Financing Statements. Pursuant to Section 9-509(b) of the Uniform Commercial Code as in effect in the State of New York, each Pledgor authorizes the Collateral Agent to file financing statements with respect to the Collateral owned by it without the signature of such Pledgor in such form and in such filing offices as the Collateral Agent reasonably determines appropriate to perfect the security interests of the Collateral Agent under this Agreement. Any such financing statement (other than any such financing statement with respect to any Collateral owned by SunCom Wireless Investment) may use the term “all assets” as the description of the Collateral covered thereby.
SECTION 27. FCC Consent. Notwithstanding anything herein which may be construed to the contrary, no action shall be taken by any of the Collateral Agent and the Secured Parties with respect to the Pledged Securities (including termination or suspension of voting rights) unless and until any required approval under the Federal Communications Act of 1934, and any applicable rules and regulations thereunder, requiring the consent to or approval of such action by the FCC or any governmental or other authority, have been satisfied. Without limiting the foregoing, (i) to the extent that any changes in voting or consent rights in the Collateral would affect the control of, or effectuate a transfer of control of any license, permit or other authorization issued by the FCC, such voting and consent rights shall be retained by the Pledgors, notwithstanding the occurrence of an Event of Default, until all necessary prior consent of the FCC shall have been obtained, (ii) following the occurrence of any Event of Default that is not cured or waived, any disposition of the Collateral by the Collateral Agent shall be through a public or private arms-length sale of the Collateral and (iii) prior to the exercise of stockholder rights by the purchase at any such private or public sale, the prior consent of the FCC (pursuant to 47 U.S.C. §310(d)) shall be obtained.
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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.
| TRITON PCS, INC., | ||||
| By |
/s/ XXXXXX X. XXXXXXX | |||
| Name: |
Xxxxxx X. Xxxxxxx | |||
| Title: |
Senior Vice President of Finance and Treasurer | |||
| SUNCOM WIRELESS INVESTMENT COMPANY LLC, | ||||
| By |
/s/ XXXXXX X. XXXXXXX | |||
| Name: |
Xxxxxx X. Xxxxxxx | |||
| Title: |
Senior Vice President of Finance and Treasurer | |||
| TRITON MANAGEMENT COMPANY, INC., | ||||
| By |
/s/ XXXXXX X. XXXXXXX | |||
| Name: |
Xxxxxx X. Xxxxxxx | |||
| Title: |
Senior Vice President of Finance and Treasurer | |||
| TRITON PCS FINANCE COMPANY, INC., | ||||
| By |
/s/ XXXXXXX X. XXXXXX | |||
| Name: |
Xxxxxxx X. Xxxxxx | |||
| Title: |
President | |||
| TRITON PCS HOLDINGS COMPANY L.L.C., TRITON PCS OPERATING COMPANY L.L.C., TRITON PCS EQUIPMENT COMPANY L.L.C., TRITON PCS INVESTMENT COMPANY L.L.C., TRITON PCS PROPERTY COMPANY L.L.C. TRITON PCS LICENSE COMPANY L.L.C AFFILIATE LICENSE CO., L.L.C., | ||||
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| By: |
TRITON MANAGEMENT COMPANY, INC., its manager, | |||
| /s/ XXXXXX X. XXXXXXX | ||||
| Name: |
Xxxxxx X. Xxxxxxx | |||
| Title: |
Senior Vice President of Finance and Treasurer | |||
| XXXXXX COMMERCIAL PAPER INC., as Collateral Agent, | ||||
| By |
/s/ XXXXXXX X. XXXXXX | |||
| Name: |
Xxxxxxx X. Xxxxxx | |||
| Title: |
Managing Director | |||
Each Non-Pledgor Issuer hereby confirms its agreements set forth in Section 4(c) of the Agreement.
| TRITON LICENSE NEWCO, LLC, | ||||
| By: |
TRITON MANAGEMENT COMPANY, INC., its manager, | |||
| By |
/s/ XXXXXX X. XXXXXXX | |||
| Name: |
Xxxxxx X. Xxxxxxx | |||
| Title: |
Senior Vice President of Finance and Treasurer | |||
18
Schedule I to the
SUBSIDIARY PLEDGORS
| Subsidiary Pledgor |
Address | |||
| 1. | Affiliate License Co., L.L.C. | 0000 Xxxxxxx Xxxx, Xxxxxx, XX 00000 | ||
| 2. | Triton Management Company, Inc. | 0000 Xxxxxxx Xxxx, Xxxxxx, XX 00000 | ||
| 3. | Triton PCS Holdings Company L.L.C. | 0000 Xxxxxxx Xxxx, Xxxxxx, XX 00000 | ||
| 4. | Triton PCS Operating Company L.L.C. | 0000 Xxxxxxx Xxxx, Xxxxxx, XX 00000 | ||
| 5. | Triton PCS Equipment Company L.L.C. | 0000 Xxxxxxx Xxxx, Xxxxxx, XX 00000 | ||
| 6. | Triton PCS Investment Company L.L.C. | 0000 Xxxxxxx Xxxx, Xxxxxx, XX 00000 | ||
| 7. | Triton PCS Finance Company, Inc. | 000 Xxxxx Xxxx, Xxxxx 000, Xxxxxxxxxx, XX 00000 | ||
| 8. | Triton PCS Property Company L.L.C. | 0000 Xxxxxxx Xxxx, Xxxxxx, XX 00000 | ||
| 9. | Triton PCS License Company L.L.C. | 0000 Xxxxxxx Xxxx, Xxxxxx, XX 00000 | ||
Schedule II to the
CAPITAL STOCK
| Issuer |
Percentage of Shares |
Number of Certificates |
Registered Owner |
Number and Class of Shares | ||||
| Triton PCS, Inc. | 100% | 1 | SunCom Wireless Investment Company LLC | 100 shares of common stock | ||||
| Triton Management Company, Inc. | 100% | 1 | Triton PCS, Inc. | 100 shares of common stock | ||||
| Triton PCS Finance Company, Inc. | 100% | 1 | Triton PCS, Inc. | 100 shares of common stock | ||||
LIMITED LIABILITY COMPANY MEMBERSHIP INTERESTS
| Issuer |
Percentage of Class |
Number of Certificates |
Registered Owner |
Number of Interests | ||||
| Affiliate License Co., L.L.C. | 100% | uncertificated | Triton PCS, Inc. | sole member | ||||
| Triton PCS Holdings Company L.L.C. | 100% | uncertificated | Triton PCS, Inc. | sole member | ||||
| Triton PCS Operating Company L.L.C. | 100% | uncertificated | Triton PCS Holdings Company L.L.C. | sole member | ||||
| Triton PCS License Company L.L.C. | 100% | uncertificated | Triton PCS Holdings Company L.L.C. | sole member | ||||
| Triton PCS Property Company L.L.C. | 100% | uncertificated | Triton PCS Holdings Company L.L.C. | sole member | ||||
| Triton PCS Equipment Company L.L.C. | 100% | uncertificated | Triton PCS Holdings Company L.L.C. | sole member | ||||
| Triton PCS Investment Company L.L.C. | 100% | uncertificated | Triton PCS, Inc. | sole member | ||||
| Triton License Newco, LLC (to be exchanged for AWS License Newco, LLC pursuant to the Exchange Agreement) | 100% | uncertificated | Triton PCS License Company L.L.C. | sole member | ||||
DEBT SECURITIES
| 1. | Demand Revolving Line of Credit Note dated October 26, 1999, by Triton PCS Operating Company L.L.C. in favor of Triton PCS Finance Company, Inc. |
| 2. | Master Demand Promissory Note dated June 13, 2003 by Triton PCS Finance Company, Inc. in favor of Triton PCS, Inc. |
2
Annex 1 to the
SUPPLEMENT NO. [ ] dated as of [ ], to the PLEDGE AGREEMENT dated as of November 18, 2004, among TRITON PCS, INC., a Delaware corporation (the “Borrower”), and each subsidiary of the Borrower listed on Schedule I thereto (each such subsidiary individually a “Subsidiary Pledgor” and collectively, the “Subsidiary Pledgors”), SUNCOM WIRELESS INVESTMENT COMPANY LLC, a Delaware limited liability company (“SunCom Wireless Investment”; the Borrower, the Subsidiary Pledgors and SunCom Wireless Investment are referred to collectively herein as the “Pledgors”) and XXXXXX COMMERCIAL PAPER INC. (“LCPI”), as collateral agent (in such capacity, the “Collateral Agent”) for the Secured Parties (as defined in the Term Loan Agreement referred to below).
A. Reference is made to (a) the Term Loan Agreement dated as of November 18, 2004 (as amended, supplemented or otherwise modified from time to time, the “Term Loan Agreement”), among the Borrower, the lenders from time to time party thereto (the “Lenders”) and LCPI, as administrative agent and collateral agent for the Lenders, and (b) the Guarantee Agreement dated as of November 18, 2004 (as amended, supplemented or otherwise modified from time to time, the “Guarantee Agreement”) among certain of the Subsidiary Pledgors and the Collateral Agent.
B. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Term Loan Agreement.
C. The Pledgors have entered into the Pledge Agreement in order to induce the Lenders to make Loans. Pursuant to Section 5.17 of the Term Loan Agreement, each Domestic Subsidiary of the Borrower that is not a Special Purpose Subsidiary and was not in existence or not a Domestic Subsidiary on the date of the Term Loan Agreement is required to enter into the Pledge Agreement as a Subsidiary Pledgor upon becoming a Domestic Subsidiary if such Subsidiary owns or possesses property of a type that would be considered Collateral under the Pledge Agreement. Pursuant to Section 3(b) of the Pledge Agreement, in connection with any transfer of capital stock of the Borrower to any Person (other than any Subsidiary of the Borrower), such Person is required to enter into the Pledge Agreement as a Pledgor if it is not already a Pledgor thereunder. Section 25 of the Pledge Agreement provides that such Subsidiaries or Persons may become Pledgors or Subsidiary Pledgors, as applicable, under the Pledge Agreement by execution and delivery of an instrument in the form of this Supplement. The undersigned (the “New Pledgor”) is executing this Supplement in accordance with the requirements of the Term Loan Agreement to become a Pledgor or Subsidiary Pledgor, as applicable, under the Pledge Agreement as consideration for Loans previously made.
Accordingly, the Collateral Agent and the New Pledgor agree as follows:
SECTION 1. In accordance with Section 25 of the Pledge Agreement, the New Pledgor by its signature below becomes a Pledgor under the Pledge Agreement with the same force and effect as if originally named therein as a Pledgor and the New Pledgor hereby agrees (a) to all the terms and provisions of the Pledge Agreement applicable to it as a Pledgor thereunder and (b) represents and warrants that the representations and warranties made by it as a Pledgor thereunder are true and correct in all material respects on and as of the date hereof except for representations and warranties which by their terms refer to a specific date. In furtherance of the foregoing, the New Pledgor, as security for the payment and performance in full of the
Obligations (as defined in the Pledge Agreement), does hereby create and grant to the Collateral Agent, its successors and assigns, for the benefit of the Secured Parties, their successors and assigns, a security interest in and lien on all of the New Pledgor’s right, title and interest in and to the Collateral (as defined in the Pledge Agreement) of the New Pledgor. Each reference in the Pledge Agreement to a “Pledgor” and, in the case of any New Pledgor that is a Subsidiary of the Borrower, to a “Subsidiary Pledgor” shall be deemed to include the New Pledgor. The Pledge Agreement is hereby incorporated herein by reference.
SECTION 2. The New Pledgor represents and warrants to the Collateral Agent and the other Secured Parties that this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally.
SECTION 3. This Supplement may be executed in counterparts, each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Supplement shall become effective when the Collateral Agent shall have received counterparts of this Supplement that, when taken together, bear the signatures of the New Pledgor and the Collateral Agent. Delivery of an executed signature page to this Supplement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Supplement.
SECTION 4. The New Pledgor hereby represents and warrants that set forth on Schedule I attached hereto is a true and correct schedule of all its Pledged Securities.
SECTION 5. Except as expressly supplemented hereby, the Pledge Agreement shall remain in full force and effect.
SECTION 6. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
SECTION 7. In case any one or more of the provisions contained in this Supplement should be held invalid, illegal or unenforceable in any respect, neither party hereto shall be required to comply with such provision for so long as such provision is held to be invalid, illegal or unenforceable, but the validity, legality and enforceability of the remaining provisions contained herein and in the Pledge Agreement shall not in any way be affected or impaired. The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.
SECTION 8. All communications and notices hereunder shall be in writing and given as provided in Section 16 of the Pledge Agreement. All communications and notices hereunder to the New Pledgor shall be given to it [in care of the Borrower as set forth in the Term Loan Agreement.] [at the following address:]
[Address of New Pledgor]
SECTION 9. The New Pledgor agrees to reimburse the Collateral Agent for its reasonable out-of-pocket expenses in connection with this Supplement, including the reasonable fees, other charges and disbursements of counsel for the Collateral Agent.
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IN WITNESS WHEREOF, the New Pledgor and the Collateral Agent have duly executed this Supplement to the Pledge Agreement as of the day and year first above written.
| [NAME OF NEW PLEDGOR], | ||||
| By |
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| Name: |
||||
| Title: |
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| XXXXXX COMMERCIAL PAPER INC., as Collateral Agent, | ||||
| By |
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| Name: |
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| Title: |
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Schedule I to
Supplement No. [ ]
to the Pledge Agreement
Pledged Securities of the New Pledgor
CAPITAL STOCK OR OTHER EQUITY INTEREST
| Issuer |
Number of Certificate |
Registered Owner |
Number and Class of Shares or Other Equity Interest |
Percentage of Shares or Other Equity Interest | ||||
DEBT SECURITIES
| Issuer |
Principal Amount |
Date of Note |
Maturity Date |
Annex 2 to the
Pledge Agreement
SUPPLEMENT NO. [ ] dated as of [ ], to the PLEDGE AGREEMENT dated as of November 18, 2004, among TRITON PCS, INC., a Delaware corporation (the “Borrower”), and each subsidiary of the Borrower listed on Schedule I thereto (each such subsidiary individually a “Subsidiary Pledgor” and collectively, the “Subsidiary Pledgors”), SUNCOM WIRELESS INVESTMENT COMPANY LLC, a Delaware limited liability company (“SunCom Wireless Investment”; the Borrower, the Subsidiary Pledgors and SunCom Wireless Investment are referred to collectively herein as the “Pledgors”) and XXXXXX COMMERCIAL PAPER INC. (“LCPI”), as collateral agent (in such capacity, the “Collateral Agent”) for the Secured Parties (as defined in the Term Loan Agreement referred to below).
A. Reference is made to (a) the Term Loan Agreement dated as of November 18, 2004 (as amended, supplemented or otherwise modified from time to time, the “Term Loan Agreement”), among the Borrower, the lenders from time to time party thereto (the “Lenders”) and LCPI, as administrative agent and collateral agent for the Lenders, and (b) the Guarantee Agreement dated as of November 18, 2004 (as amended, supplemented or otherwise modified from time to time, the “Guarantee Agreement”) among certain of the Subsidiary Pledgors and the Collateral Agent.
B. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Term Loan Agreement.
C. Pursuant to Section 5.17 of the Term Loan Agreement, each Subsidiary of the Borrower all or any portion of the capital stock of which is required, pursuant to such Section, to be pledged hereunder, but which is not required pursuant to such Section to become a Pledgor, is required to enter into the Pledge Agreement as a Non-Pledgor Issuer. Section 25 of the Pledge Agreement provides that such Subsidiaries may become Non-Pledgor Issuers under the Pledge Agreement by execution and delivery of an instrument in the form of this Supplement. The undersigned Subsidiary (the “New Non-Pledgor Issuer”) is executing this Supplement in accordance with the requirements of the Term Loan Agreement to become a Non-Pledgor Issuer under the Pledge Agreement as consideration for Loans previously made.
Accordingly, the Collateral Agent and the New Non-Pledgor Issuer agree as follows:
SECTION 1. In accordance with Section 25 of the Pledge Agreement, the New Non-Pledgor Issuer, by its signature below, becomes a Non-Pledgor Issuer under the Pledge Agreement with the same full force and effect as if originally named therein as a Non-Pledgor Issuer and hereby agrees (a) to all the terms and provisions of the Pledge Agreement applicable to it as a Non-Pledgor Issuer thereunder and (b) represents and warrants that the representations and warranties made by it as Non-Pledgor Issuer thereunder are true and correct in all material respects on and as of the date hereof except for representations and warranties which by their terms refer to a specific date. Each reference to a “Non-Pledgor Issuer” in the Pledge Agreement shall be deemed to include the New Non-Pledgor Issuer. The Pledge Agreement is hereby incorporated herein by reference.
SECTION 2. The New Non-Pledgor Issuer represents and warrants to the Collateral Agent and the other Secured Parties that this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in
accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally.
SECTION 3. This Supplement may be executed in counterparts, each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Supplement shall become effective when the Collateral Agent shall have received counterparts of this Supplement that, when taken together, bear the signatures of the New Non-Pledgor Issuer and the Collateral Agent. Delivery of an executed signature page to this Supplement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Supplement.
SECTION 4. Except as expressly supplemented hereby, the Pledge Agreement shall remain in full force and effect.
SECTION 5. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
SECTION 6. In case any one or more of the provisions contained in this Supplement should be held invalid, illegal or unenforceable in any respect, neither party hereto shall be required to comply with such provision for so long as such provision is held to be invalid, illegal or unenforceable, but the validity, legality and enforceability of the remaining provisions contained herein and in the Pledge Agreement shall not in any way be affected or impaired. The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.
SECTION 7. All communications and notices hereunder shall be in writing and given as provided in Section 16 of the Pledge Agreement. All communications and notices hereunder to the New Non-Pledgor Issuer shall be given to it in care of the Borrower as set forth in the Term Loan Agreement.
SECTION 8. The New Non-Pledgor Issuer agrees to reimburse the Collateral Agent for its reasonable out-of-pocket expenses in connection with this Supplement, including the reasonable fees, other charges and disbursements of counsel for the Collateral Agent.
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IN WITNESS WHEREOF, the New Non-Pledgor Issuer and the Collateral Agent have duly executed this Supplement to the Pledge Agreement as of the day and year first above written.
| [NAME OF NEW NON-PLEDGOR ISSUER], | ||||
| By |
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| Name: |
||||
| Title: |
||||
| XXXXXX COMMERCIAL PAPER INC., as Collateral Agent, | ||||
| By |
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| Name: |
||||
| Title: |
||||
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