AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT dated as ofNovember 3, 2003
Exhibit 10.2(b)
AMENDMENT NO. 6 TO
SECURITIES PURCHASE AGREEMENT
dated as of November 3, 2003
Reference is hereby made to the SECURITIES PURCHASE AGREEMENT, dated as of July 17, 2000, by and among MetroPCS, Inc., a Delaware corporation (the Company), the subsidiaries of the Company listed on Schedule 2 thereto (collectively, the Subsidiaries) and each of the PURCHASERS listed on Schedule 1 thereto (collectively, together with their successors and assigns, the Purchasers), as amended by Amendment No. 1 thereto dated as of November 13, 2000, as further amended by Amendment No. 2 thereto dated as of December 12, 2000, as further amended by Amendment No. 3 thereto dated as of December 19, 2000, as further amended by Amendment No. 4 thereto dated as of January 4, 2001, and as further amended by Amendment No. 5 thereto dated as of January 9, 2001 (as so amended, the Agreement).
This AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT dated as of November 3, 2003 (this Amendment No. 6) among the Company, the Subsidiaries and each of the Purchasers is entered into pursuant to Section 9.4 of the Agreement for the purpose of modifying and adding certain provisions of and to the Agreement. Initially capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Agreement, including Annex A thereto.
W I T N E S S E T H :
WHEREAS, pursuant and subject to the Agreement, the Company has agreed to sell and the Purchasers have the right to purchase shares of the Companys Series D Convertible Preferred Stock, par value $0.0001 per share (the Series D Preferred Stock), with an aggregate liquidation preference of up to $350 million; and
WHEREAS, in connection with the consummation of the transactions contemplated by the Agreement, the Company has entered into the Amended and Restated Stockholders Agreement dated as of July 17, 2000 by and among the Company and the Stockholder parties thereto (collectively, together with their successors and assigns, the Stockholders), as amended and supplemented from time to time (the Stockholders Agreement); and
WHEREAS, in connection with the transactions contemplated by the Agreement, the Company had, as of October 30, 2003, issued 3,145,578 shares of Series D Preferred Stock with an aggregate liquidation preference of $314,557,800 (of which (i) 3,144,585 shares were issued upon payment of an aggregate cash purchase price of $314,458,500 and (ii) 993 shares were issued in satisfaction of an aggregate of $99,300 in accumulated interest on the Companys 6% Subordinated Convertible Notes and its 8% Subordinated Convertible Notes); and
WHEREAS, on October 30, 2003, the Company exercised its option to cause the issuance and sale of an additional 354,422 shares of Series D Preferred Stock with an aggregate liquidation preference of $35,442,200 by making a cash capital call pursuant to and in accordance with the Agreement; and
AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT Page 1
WHEREAS, the Company desires to issue and sell to the Purchasers, and the Purchasers desire to purchase from the Company, on a pro-rata basis, an additional 993 shares (the Additional Shares) of Series D Preferred Stock (with an aggregate liquidation value of $99,300) in exchange for the payment of a cash purchase price of $100 per share (for an aggregate cash purchase price of $99,300) such that the sum of all cash amounts collected from the Purchasers under the Agreement will equal $350 million; and
WHEREAS, the Company and the Purchasers desire to (a) amend the applicable provisions of the Agreement in order to (i) provide that the Company may issue and sell pursuant to the Agreement shares of Series D Preferred Stock having an aggregate liquidation value of up to $350.1 million, (ii) provide that each Purchasers Commitment to purchase the Additional Shares shall extend until December 31, 2003, (iii) eliminate the Companys obligation to furnish monthly financial statements to the Purchasers and (iv) provide that notices and communications provided for under the Agreement may be sent by electronic mail and/or electronic mail attachment, (b) amend the applicable provisions of the Amended and Restated Certificate of Designations, Preferences and Rights relating to the Series D Preferred Stock (the Certificate of Designations) in order to increase the number of shares of the Companys authorized preferred stock designated as Series D Preferred Stock from 3,500,000 shares to 4,000,000 shares and (c) amend the applicable provisions of the Stockholders Agreement in order to (i) provide that notices and communications provided for under the Stockholders Agreement may be sent by electronic mail and/or electronic mail attachment and (ii) provide that each Stockholder will maintain the confidentiality of any Confidential Information (as defined in the Stockholders Agreement) disclosed to such Stockholder.
NOW, THEREFORE, in consideration of the mutual agreements contained in this Amendment No. 6, the parties hereto agree as follows:
ARTICLE I
AMENDMENTS TO AGREEMENT
Section A. Authorized Series D Preferred Stock. Section 1.1 of the Agreement is hereby amended to delete the first sentence of such Section 1.1 and replace it with two sentences that read as follows:
The Company has authorized the issuance and sale of shares of its Series D Preferred Stock with an aggregate liquidation preference of up to $400 million, of which shares of Series D Preferred Stock with an aggregate liquidation preference of up to $350.1 million may be issued and sold pursuant to this Agreement. Upon the adoption of Amendment No. 6 to this Agreement, any references in this Agreement to either $350 million or $350,000,000 shall be deemed to have been changed to $350.1 million or $350,100,000, respectively.
Section B. Duration of Purchaser Commitments. The last sentence of Section 2.2(m) of the Agreement (as set forth in Section E(2) of Amendment No. 4 to the Agreement) is hereby amended and restated in its entirety to read as follows:
Subject to the provisions of this Section 2.2 (and except as otherwise provided below), each Purchasers Commitment shall remain in full force and effect for three years from
AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT Page 2
the date of the Subsequent Closing and, to the extent not drawn, shall then terminate; provided, however, that each Purchasers Commitment to purchase such Purchasers pro-rata portion of the Additional Shares (as defined in Amendment No. 6 to this Agreement) shall remain in full force and effect until December 31, 2003; and provided further, that the Purchaser Funding Option for each Purchaser shall continue in full force and effect, until such time as the Purchaser notifies the Company of the termination of its Purchaser Funding Option with respect to any remaining unfunded Commitment Amount.
Section C. Quarterly Financial Statements. Clause (b) of the second sentence of Section 7.3 of the Agreement is hereby amended and restated in its entirety to read as follows:
(b) within 45 days after the end of each of the first three fiscal quarters of each fiscal year (commencing with the quarter ending June 30, 2000), a consolidated unaudited balance sheet of the Company as at the end of such quarter and a consolidated unaudited statement of income and retained earnings for the Company for such quarter and for the year to date, each of the foregoing balance sheets and statements of income and retained earnings to set forth in comparative form the corresponding figures of (or, in the case of the balance sheet, as of the end of) the prior fiscal year;
Section D. Elimination of Covenant to Furnish Monthly Financials. The second sentence of Section 7.3 of the Agreement is hereby amended by deleting the following language originally inserted at the end of such sentence by Section F(1) of Amendment No. 1 to the Agreement:
, and (e) within 30 days after the end of each calendar month commencing with the month of December 2000, a consolidated unaudited balance sheet of the Company as of the end of such month and an unaudited statement of income and retained earnings for the Company for such month and for the year to date.
Section E. Notices. Section 9.5 of the Agreement is hereby amended and restated in its entirely to read as follows:
Section 9.5 Notices
All notices and communications provided for hereunder shall be in writing and sent (a) by telecopy if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by a recognized overnight delivery service (with charges prepaid), or (d) by electronic mail transmission (including without limitation electronic mail attachment). Any such notice or communication must be sent as follows:
if to the Purchasers:
to the respective mailing addresses, telecopy numbers and/or email addresses for notice as set forth in the books and records of the Company,
with a copy to (which shall not constitute notice):
AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT Page 3
Mayer, Brown, Rowe & Maw LLP
1675 Broadway
New York, New York 10019
Attention: Kathleen A. Walsh
Telephone: (212) 506-2553
Telecopy: (212) 262-1910
email: ***@***
if to the Company, to:
MetroPCS, Inc.
8144 Walnut Hill Lane
Suite 800
Dallas, Texas 75231
Attention: Dennis G. Spickler, Chief Financial Officer
Telephone: (214) 265-2550
Telecopy: (214) 265-2570
email: ***@***
with a copy to (which shall not constitute notice):
Andrews Kurth LLP
600 Travis Street
Suite 4200
Houston, Texas 77002
Attention: Henry Havre
Telephone: (713) 220-4200
Telecopy: (713) 220-4285
email: ***@***
Notices under this Section 9.5 will be deemed given only when actually received. Each party may, by notice given hereunder, designate a different address, telecopy number and/or email address to which subsequent notices and communications shall be sent.
Section F. Amendment to Stockholders Agreement. A form of Amendment No. 3 to the Companys Amended and Restated Stockholders Agreement dated as of July 17, 2000 is attached to this Amendment No. 6 as Exhibit A. The definition of Stockholders Agreement as set forth in Annex A to the Agreement is hereby deleted and replaced in its entirety with the following:
Stockholders Agreement means the Companys Amended and Restated Stockholders Agreement, dated as of July 17, 2000, as amended by (i) Amendment No. 1 thereto dated as of November 13, 2000, (ii) Amendment No. 2 thereto dated as of January 4, 2001, and (iii) Amendment No. 3 thereto dated as of November 3, 2003, and as the same may be further amended or supplemented from time to time.
AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT Page 4
Section G. Effectiveness of Amendment No. 6. If the requisite percentage of Purchasers agree to and execute this Amendment No. 6 pursuant to the Agreement, then this Amendment No. 6 shall become effective upon the filing of an amendment to the Sixth Amended and Restated Certificate of Incorporation that provides for an increase in the number of shares of the Companys authorized preferred stock designated as Series D Preferred Stock from 3,500,000 shares to 4,000,000 shares. Notwithstanding any provision to the contrary in the Agreement or this Amendment No. 6, until the preceding conditions have been satisfied, this Amendment No. 6 shall not become effective.
ARTICLE II
MISCELLANEOUS
Section A. Ratification & Conflicts. The Agreement as supplemented by this Amendment No. 6 is ratified and confirmed, and shall remain in full force and effect. In the event of any conflict between the terms of the Agreement and this Amendment No. 6, the terms and provisions of this Amendment No. 6 shall govern and control.
Section B. Governing Law. THIS AMENDMENT NO. 6 SHALL BE GOVERNED BY, CONSTRUED IN ACCORDANCE WITH, AND ENFORCED UNDER, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS OR INSTRUMENTS ENTERED INTO AND PERFORMED ENTIRELY WITHIN SUCH STATE.
Section C. Further Assurances. Each of the parties covenants and agrees to take all such actions and to execute all such documents as may be necessary or advisable to implement the provisions of this Amendment No. 6 fully and effectively and to make them binding on the parties hereto.
Section D. Counterparts. This Amendment No. 6 may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto.
[SIGNATURE PAGES FOLLOW]
AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT Page 5
IN WITNESS WHEREOF, this AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT has been executed by the parties hereto as of the date first set forth above.
MetroPCS, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer | ||
MetroPCS Wireless, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer | ||
MetroPCS, California/Florida, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer | ||
MetroPCS Chico, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer | ||
MetroPCS Georgia, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer | ||
GWI PCS1, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer |
AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT Signature Page
GWI PCS2, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer | ||
GWI PCS3, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer | ||
GWI PCS4, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer | ||
GWI PCS5, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer | ||
GWI PCS6, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer | ||
GWI PCS7, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer | ||
GWI PCS8, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer |
AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT Signature Page
GWI PCS9, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer | ||
GWI PCS10, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer | ||
GWI PCS11, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer | ||
GWI PCS12, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer | ||
GWI PCS13, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer | ||
GWI PCS14, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer |
AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT Signature Page
Reauction, Inc. | ||
By: | /s/ Roger D. Linquist | |
Roger D. Linquist | ||
President and Chief Executive Officer | ||
PURCHASERS: | ||
Accel VII L.P. | ||
By: | Accel VII Associates L.L.C. | |
Its General Partner | ||
By: | /s/ Richard Zamboldi | |
Attorney-In-Fact | ||
Accel Internet Fund III L.P. | ||
By: | Accel Internet Fund III Associates L.L.C. | |
Its General Partner | ||
By: | /s/ Richard Zamboldi | |
Attorney-In-Fact | ||
Accel Investors 99 L.P. | ||
By: | /s/ Richard Zamboldi | |
Attorney-In-Fact | ||
ACP Family Partnership L.P. | ||
By: | /s/ Arthur C. Patterson | |
General Partner | ||
Elimore C. Patterson Partners | ||
By: | /s/ Arthur C. Patterson | |
Arthur C. Patterson | ||
General Partner |
AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT Signature Page
Auchincloss Wadsworth & Co., L.P. | ||
By: | /s/ Eliot Wadsworth, II | |
Eliot Wadsworth, II | ||
Managing Partner | ||
JPMorgan Chase Bank | ||
As Trustee of the BP Mastertrust for | ||
Employee Pension Plans | ||
By: | /s/ Peter Owen | |
Peter Owen | ||
Vice President | ||
Banc of America Capital Investors SBIC, L.P. | ||
By: | Banc of America Capital Management SBIC, LLC | |
Its general partner | ||
By: | Banc of America Capital Management, L.P. | |
Its sole member | ||
By: | BACM 1 GP, LLC | |
Its general partner | ||
By: | /s/ George E. Morgan, III | |
George E. Morgan, III | ||
Managing Director | ||
R. G. Barrett | ||
/s/ R. G. Barrett | ||
Baruch Revocable Trust & Ralph Baruch | ||
By: | /s/ Ralph M. Baruch | |
Ralph M. Baruch | ||
Berkeley Investments, Ltd. | ||
By: | /s/ Kishore Mirchandani | |
Kishore Mirchandani | ||
Authorized signatory |
AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT Signature Page
Clarity Partners, L.P. | ||
By: | /s/ Barry Porter | |
Barry Porter | ||
Managing General Partner | ||
Columbia Capital Equity Partners III (QP), L.P. | ||
By: | /s/ Donald A. Doering | |
Donald A. Doering | ||
Chief Financial Officer | ||
Columbia Capital Equity Partners III (Cayman), L.P. | ||
By: | /s/ Donald A. Doering | |
Donald A. Doering | ||
Chief Financial Officer | ||
Columbia Capital Equity Partners III (AI), L.P. | ||
By: | /s/ Donald A. Doering | |
Donald A. Doering | ||
Chief Financial Officer | ||
Columbia Capital Investors III, LLC | ||
By: | /s/ Donald A. Doering | |
Donald A. Doering | ||
Chief Financial Officer | ||
Columbia Capital Employee Investors III, LLC | ||
By: | /s/ Donald A. Doering | |
Donald A. Doering | ||
Chief Financial Officer | ||
The Helen Martin Spalding 1997 Irrevocable Trust | ||
By: | /s/ Peter M. Folger | |
Peter M. Folger | ||
Trustee |
AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT Signature Page
JPMorgan Chase Bank | ||
Solely in its Capacity as Trustee for | ||
First Plaza Group Trust | ||
(as directed by GMIMCO) and not | ||
in its Individual Capacity | ||
By: | /s/ Marc Pinsky | |
Marc Pinsky | ||
Assistant Vice President | ||
Rakesh Gupta | ||
/s/ Rakesh Gupta | ||
George A. Hambrecht | ||
/s/ George A. Hambrecht | ||
David Kaplan | ||
/s/ David Kaplan | ||
Key Principal Partners LLC | ||
By: | /s/ Jeffrey Gewtsel | |
Jeffrey Gewtsel | ||
Executive Vice President | ||
Barry B. Lewis | ||
/s/ Barry B. Lewis | ||
John S. Lewis | ||
/s/ John S. Lewis |
AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT Signature Page
M/C Venture Investors, L.L.C. | ||
M/C Venture Partners IV, L.P. | ||
M/C Venture Partners V, L.P. | ||
Chestnut Street Partners | ||
By: | /s/ James F. Wade | |
James F. Wade | ||
Authorized signatory | ||
Joseph T. McCullen, Jr. | ||
/s/ Joseph T. McCullen, Jr. | ||
MetroPCS Investors, Ltd. | ||
By: | /s/ Gregg W. Ritchie | |
Gregg W. Ritchie | ||
Managing Director | ||
Chief Financial Officer | ||
One Liberty Fund III, L.P. | ||
By: | One Liberty Partners III, L.P. | |
Its General Partner | ||
By: | /s/ Edwin M. Kania | |
Edwin M. Kania | ||
General Partner | ||
Paragon Venture Partners II, L.P. | ||
By: | /s/ John S. Lewis | |
John S. Lewis | ||
General Partner |
AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT Signature Page
Primus Capital Fund III Limited Partnership | ||
By: | Primus Venture Partners III Limited Partnership | |
Its General Partner | ||
By: | Primus Venture Partners, Inc. | |
Its General Partner | ||
By: | /s/ William C. Mulligan | |
William C. Mulligan | ||
Executive Vice President | ||
Primus Capital Fund V Limited Partnership | ||
By: | Primus Venture Partners V L.L.C. | |
Its General Partner | ||
By: | /s/ William C. Mulligan | |
William C. Mulligan | ||
Executive Vice President | ||
Primus Executive Fund V Limited Partnership | ||
By: | Primus Venture Partners V L.L.C. | |
Its General Partner | ||
By: | /s/ William C. Mulligan | |
William C. Mulligan | ||
Executive Vice President | ||
Sani Holding Ltd. (Bahamas) | ||
By: | /s/ Ishwar C. Sani | |
Ishwar C. Sani | ||
President/Director | ||
Steven L. Scari | ||
/s/ Steven L. Scari | ||
John Sculley | ||
/s/ John Sculley |
AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT Signature Page
Sonoma West Holdings, Inc. | ||
By: | /s/ Roger S. Mertz | |
Roger S. Mertz | ||
Chairman | ||
Technology Venture Associates III, L.P. | ||
By: | /s/ Craig R. Stapleton | |
Craig R. Stapleton | ||
General Partner | ||
Trailhead Ventures, L.P. | ||
By: | /s/ Michael Segrest | |
Michael Segrest | ||
Partner | ||
Viehweg Revocable Trust 2/9/99 | ||
By: | /s/ Craig Viehweg | |
Craig Viehweg | ||
Trustee | ||
Wachovia Capital Partners 2001, LLC | ||
By: | /s/ Walker Simmons | |
Walker Simmons | ||
Partner | ||
J. H. Whitney IV, L.P. | ||
By: | J. H. Whitney Equity Partners IV, L.L.C. | |
Its General Partner | ||
By: | /s/ Daniel J. OBrien | |
Daniel J. OBrien | ||
Managing Member |
AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT Signature Page
Whitney V, L.P. | ||
By: | Whitney Equity Partners V, LLC | |
Its General Partner | ||
By: | /s/ Daniel J. OBrien | |
Daniel J. OBrien | ||
Managing Member | ||
Winston/Thayer Partners, L.P. | ||
By: | /s/ Michael D. Bluestein | |
Michael D. Bluestein | ||
Principal |
AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT Signature Page