ADDENDUM TO GSM OPERATING AGREEMENTS
Exhibit
10.2
ADDENDUM TO GSM OPERATING AGREEMENTS
This Addendum to GSM Operating Agreements (this “Addendum”) is entered by and between
New Cingular Wireless Services, Inc. (f/k/a AT&T Wireless Services, Inc.) (“NCWS”), Xxxxxx
Cellular Systems, Inc., an Oklahoma corporation (“DCS”) and American Cellular Corporation,
a Delaware corporation (“ACC”), (DCS and ACC collectively are referred to herein as
“Xxxxxx”).
In consideration of the recitals, promises, covenants and warranties set forth in this
Addendum and for other good and valuable consideration, the receipt and sufficiency of which the
parties acknowledge, the parties agree as follows. For purposes hereof any term used herein and
not defined herein shall have the meaning, if any, specified in the respective Agreements, or if
applicable, the Roaming Agreement. For the avoidance of doubt, the term “affiliate” or
“affiliated” when used herein with a lower case “a” shall have the definition provided in the
Agreements and the term “Affiliate” when used herein with an upper case “A” shall have the meaning
provided in the Roaming Agreement. For the avoidance of doubt, neither the term “affiliate” nor
“Affiliate” shall include BellSouth Corporation, SBC, Inc., or any Person under common control with
either of the foregoing other than Cingular Wireless, Inc, Cingular Wireless LLC, or their
respective controlled affiliates. In addition, the terms “Reseller” and “Market”
shall have the meaning set forth in the Roaming Agreement. Finally, the term “Effective
Date” shall mean the date that all of the following have occurred: (i) this Addendum,
having previously been executed by all parties, is approved by (A) the board of directors of
Cingular Wireless LLC; (B) ACC’s Board of Directors and (C) DCS’s Board of Directors; (ii) the
Roaming Agreement has been approved in accordance with its terms; and (iii) the Release has been
approved in accordance with its terms; provided however if all such approvals have not been
obtained on or before August 31, 2005, this Addendum shall not become effective and shall be null
and void in all respects.
Xxxxxx is obligated to build those sites identified on Exhibit 5 to the Roaming
Agreement (the “Xxxxxx Build Out Commitment Sites”) and otherwise perform the build out
requirements provided in Section 4(a) (Current Build Out Commitments by Xxxxxx) of the Roaming
Agreement, all in compliance with the requirements of the Roaming Agreement.
Xxxxxx agrees that if it fails to complete the construction of the Xxxxxx Build Out Commitment
Sites in compliance with and subject to the terms of the Roaming Agreement, then, in addition to
any and all remedies Cingular has under the Roaming Agreement, NCWS and its affiliates shall not be
subject to the Article 4 Restrictions in the area covered by the Xxxxxx Build Out Commitment Sites
and shall not be in violation of Article 4 of the Agreements in any manner with respect to such
area.
For purposes hereof, the Article 4 Restrictions shall mean a restriction on NCWS and its
affiliates not to, directly or indirectly, alone or jointly with any other person or entity, to
acquire, hold an ownership interest in, manage, operate, control or otherwise engage in a business
that provides or resells, or a license that facilitates or enables the provision or resale of
facilities-based mobile wireless services using GSM, GPRS, EDGE or any spectrum in any ACC or DCS
Market.
NCWS and its affiliates have the right to build and use sites at the locations and in the
areas identified on Exhibit 6 of the Roaming Agreement (List of Sites Cingular has the
Right to Build). NCWS and its affiliates shall not be subject to the Article 4 Restrictions in any
manner with respect to such sites and such sites shall not otherwise violate Article 4 of either of
the Agreements.
(a) Each of the parties is obligated to comply with its respective obligations contained in
Section 6 of the Roaming Agreement (Roaming Core Enabling Network), Section 7 of the Roaming
Agreement (Network Quality Metrics), and Section 8 of the Roaming Agreement (Inter-System
Handovers). In the event Xxxxxx fails to comply with any of its obligations under the foregoing
provisions, then, in addition to any other remedy contained in the Roaming Agreement, (i) all of
the DCS Markets or ACC Markets affected by such noncompliance shall no longer be a DCS Market or an
ACC Market, as applicable, for purposes of either of the Agreements, and (ii) NCWS and its
affiliates will no longer be subject to the Article 4 Restrictions or otherwise be subject to
Article 4 with respect to such DCS Markets or such ACC Markets.
(b) Any performance standards (including, without limitation, network feature and network
quality metric requirements) applicable to GSM Wireless Services contained in either of the
Agreements shall be superseded by the Build Out Requirements contained in the Roaming Agreement.
which shall apply after the Effective Date.
NCWS shall offer to ACC and DCS in writing the option of being the preferential roaming
provider for NCWS in the markets that remain subject to the roaming preference under Section 5(b)
(Preference of Xxxxxx) of the Roaming Agreement with respect to mobile wireless services using each
New Technology that NCWS deploys during the term of the ACC Agreement (with respect to ACC) and the
term of the DCS Agreement (with respect to DCS). ACC and DCS will have thirty (30) days from the
date of the offer notice to elect in writing to exercise any such option, whereupon the parties
will meet within ten (10) days from the date of election to discuss the terms and conditions of a
new construction and roaming agreement relating to the New Technology. If the parties are unable
to agree on terms within thirty (30) days after the commencement of discussions, neither ACC nor
DCS will have any further rights, and NCWS will have no further obligations or liabilities, with
respect to such New Technology or any technology subsequently adopted by NCWS. New Technology
shall mean a network, in whole or in part, that allows a carrier to have a separate PLMN listing
from its GSM PLMN listing for that network. For purposes of clarity, the parties agree that New
Technology shall include UMTS or HSDPA.
Xxxxxx will have an option, subject to the conditions and limitations set forth in Section
4(b) of the Roaming Agreement, to build the Build Out Territory in DCS Markets and ACC Markets,
subject to exclusivity restrictions under Article 4 of the Agreements at the time of the exercise
of the option. Pursuant and subject to the terms contained in Section 4(b)(Xxxxxx’x Build Out
Option) of the Roaming Agreement, in the event Xxxxxx (i) is not entitled to such option; (ii) does
not exercise such option; or (iii) exercises but fails to complete such option, all as described in
the Roaming Agreement, then, in addition to any and all remedies Cingular has under the Roaming
Agreement, NCWS and its affiliates shall not be subject to the Article 4 Restrictions or otherwise
be subject to any other of the provisions of Article 4 of the Agreements with respect to any Market
covered (in whole or in part) by such Build Out Territory.
(a) The parties acknowledge and agree that, subject to the provisions of the Roaming Agreement
and this Addendum, the only markets to which Article 4 of the ACC Agreement applies are the ACC
Markets other than the KY-04 RSA, KY-05 RSA, KY-06 RSA and KY-08 RSA markets, and the only markets
to which Article 4 of the DCS Agreement applies are the DCS Markets. For the avoidance of doubt,
the parties acknowledge and agree that the provisions of Article 4 of both Agreements shall be in
full force and effect until June 30, 2008 unless earlier terminated in accordance with the terms of
the applicable ACC Agreement or DCS Agreement as amended hereby; provided, however, that none of
the provisions of Article 4 of either Agreement shall apply to any markets acquired by Xxxxxx or
its affiliates after July 11, 2003 or that may be
acquired by Xxxxxx or its affiliates after the Effective Date. In addition, the parties
acknowledge and agree that the provisions of Article 4 of either Agreement shall not apply to any
market in which DCS or ACC, as applicable, or any affiliate thereof, does not own, hold, lease, or
manage a license for, or otherwise have the right to provide wireless services using GSM, GPRS or
EDGE, or any market disposed of by DCS or ACC, as applicable, after the Effective Date.
(b) Notwithstanding Article 4 of either of the Agreements, (i) NCWS and its affiliates,
licensees and agents may operate retail facilities at the locations identified in Schedule 6(b)
that offer for purchase to the public wireless services, products or accessories of NCWS or its
affiliates or licensees, including the corresponding sale of such services, products or accessories
by the retail facility; and (ii) NCWS and its affiliates, licensees and agents may market wireless
services, products or accessories through national retailers and Resellers in any market.
(c) Notwithstanding Section 4.2(b) of the ACC Agreement, ACC hereby waives any and all rights
under the ACC Agreement to purchase any Competitive Systems (as that term is defined in the ACC
Agreement) located in the ACC Markets as of the Effective Date.
(d) Notwithstanding Article 4 of each of the Agreements, Xxxxxx agrees that, to the extent
that, as of the Effective Date, NCWS or its affiliates have engaged in activities that would have
been described as Article 4 Restrictions or conducted Cingular Permitted Activities in any of the
ACC Markets or DCS Markets (including, without limitation, the ACC Competitive Systems) (the
“Grandfathered Systems”), NCWS or its affiliates shall have the right to maintain and operate such
Grandfathered Systems but shall not have the right to expand such Grandfathered Systems) (except as
provided in the Roaming Agreement) and such actions shall not be subject to the Article 4
Restrictions or otherwise violate Article 4 or any other provision of the Agreements.
In consideration of Xxxxxx’x agreement to this Addendum, the Roaming Agreement and the
Release:
(a) Concurrently with the Effective Date of this Addendum by Xxxxxx, NCWS has made payment to
Xxxxxx in the amount of Seven Million, Seven Hundred Ninety-Three Thousand, Eight Hundred Thirty
Dollars ($7,793,830.00) on the Effective Date; and
(b) NCWS will make payment to Xxxxxx equal to $* per minute of use captured by the sites
identified on Schedule 7(b) during each calendar quarter (or portion thereof) after July 1, 2005
until June 30, 2008 or the earlier termination of (i) the ACC Agreement (with respect to sites
located in the ACC Markets) or (ii) the DCS Agreement (with respect to sites located in the DCS
Markets). Such payments shall be due within thirty (30) days after the end of each quarter.
(c) The parties agree that if in any ACC Market or DCS Market (i) it is determined that NCWS
or its Affiliates deployed a site into commercial service (other than those listed on Schedule 7(b)
and other than those NCWS or its Affiliates are otherwise permitted to build and operate under the
terms of the Roaming Agreement) for the first time at any time after April 9, 2005; and (ii) either
ACC or DCS, as the case may be, had an existing site in service that would have carried all or a
portion of the traffic carried on such site deployed by NCWS or its
* Confidential information has been omitted and filed separately with the SEC.
Affiliates, then ACC or DCS, as the case may be, may refer such matter to the Operations
Council to determine the minutes of use captured by such site that reasonably would have been
carried by one or more existing on air ACC or DCS sites. Based on such determination, NCWS shall
pay to ACC or DCS, as the case may be, within thirty (30) days of such determination, an amount
equal to $* per minute of use calculated from April 9, 2005, until such site is decommissioned or
purchased by Xxxxxx. In addition, NCWS or its Affiliate will offer such site to ACC or DCS for
purchase at such site’s then book value and if ACC or DCS elects not to purchase such site, such
site shall be decommissioned.
Xxxxxx shall have a right, which right shall expire ninety (90) days after the Effective Date:
(i) to lease from NCWS (or its affiliates) and NCWS or its affiliates shall lease to Xxxxxx,
in a single lease or a series of leases, 10 MHz of spectrum identified in Schedule 8 in each of the
markets designated in Schedule 8 as “De Facto Lease” markets, for the period and at the quarterly
lease payments identified in Schedule 8, all, pursuant to the terms of a Long Term de facto
Lease Agreement (or series of Lease Agreements) in the form of Exhibit 8(i);
(ii) to purchase from NCWS (or its affiliates) an aggregate of 10 MHz of spectrum in each of
the markets designated in Schedule 8 as “Sell” markets for a purchase price of Six Million Dollars
($6,000,000) pursuant to the terms of a License Purchase Agreement (or series of License Purchase
Agreements) in the form of Exhibit 8(ii); and
(iii) with respect to spectrum Xxxxxx elects to purchase under paragraph (ii) above and to
facilitate Xxxxxx’x access to such spectrum pending applicable regulatory approvals of such
transfer, to lease from NCWS (or its affiliates) and NCWS or its affiliates shall lease to Xxxxxx,
in a single lease or a series of leases, any or all of such spectrum identified on Schedule 8 in
each of the markets designated in Schedule 8 as Sell markets that Xxxxxx has elected to purchase,
corresponding to the spectrum to be acquired by Xxxxxx in those markets, for a period up to such
time as the transfer of such spectrum is effected but in no event to exceed one (1) year from the
date of execution of the License Purchase Agreements referenced above at the quarterly lease
payments identified in Schedule 8, pursuant to the terms of a Short-Term Spectrum Manager Lease (or
series of leases) in the form of Exhibit 8(iii);
In addition, NCWS shall use its commercially reasonable efforts for a period of sixty (60) days
following the Effective Date to facilitate a lease or series of leases between a Designated Entity
and Xxxxxx of spectrum in each of the markets designated in Schedule 8 as “Manager Lease” markets.
In addition, the parties agree that upon the award of licenses under Auction 58, if Edge Mobile LLC
receives spectrum in Poughkeepsie, New York, NCWS will use its commercially reasonable efforts for
a period of sixty (60) days following Xxxxxx’x receipt of written notice from NCWS confirming the
award of licenses in Auction 58 to facilitate a lease of such spectrum on terms and conditions to
be negotiated by Xxxxxx and Edge Mobile LLC. Notwithstanding anything to the contrary contained
herein, the parties agree that in the event that, despite NCWS’ use of its commercially reasonable
efforts, a Spectrum Manager Lease (or series of Spectrum Manager Leases) is not executed for one or
more of the “Manager Lease” markets by a
* Confidential information has been omitted and filed separately with the SEC.
Designated Entity within the foregoing time periods pursuant to the provisions of the immediately
preceding sentences, NCWS shall be under no obligation to lease spectrum in the “Manager Lease”
markets to Xxxxxx and shall have no other liability hereunder.
(a) NCWS may terminate the ACC Agreement on 90 days’ prior written notice to ACC in the event
a Section 7.3(b) Event occurs with respect to ACC, and may terminate the DCS Agreement upon 90
days’ prior written notice to DCS in the event a Section 7.3(b) Event occurs with respect to DCS.
In addition, in the event a Section 7.3(b) Event occurs during the terms of the Agreements, the
provisions of Section 19 of the Roaming Agreement will apply.
(b) The definition of Major Competing Carrier for all purposes of the Agreements shall be
deleted and replaced with the phrase “Competing Carrier.” For purposes of the Agreements and this
Addendum, “Competing Carrier” means Sprint Corporation, Verizon Wireless, T-Mobile, Nextel
Communications, USCC, Alltel, Western Wireless, Centennial and any successors and assigns of any of
the foregoing, as well as any other company of a similar size that emerges as a wireless carrier as
a result of industry consolidation or other business combinations.
NCWS and Xxxxxx or their respective Affiliates each hold FCC licenses covering portions of the
geographical areas served by each of them or their respective Affiliates. NCWS is willing to
assist Xxxxxx, and Xxxxxx is willing to assist NCWS, in each case on commercially reasonable terms
and subject to commercially reasonable conditions to be mutually agreed upon, in satisfying the
FCC’s construction and service requirements applicable to the other party’s licenses.
(a) Notices. All notices or other communications hereunder or under either of the Agreements
shall be in writing and shall be deemed to have been duly given or made (i) upon delivery if
delivered personally (by courier service or otherwise) or (ii) upon confirmation of dispatch if
sent by facsimile transmission (which confirmation shall be sufficient if shown on the journal
produced by the facsimile machine used for such transmission), and all legal process with regard
hereto shall be validly served when served in accordance with applicable law, in each case to the
applicable addresses set forth below (or such other address as the recipient may specify in
accordance with this Section):
If to ACC:
American Cellular Corporation
00000 Xxxxxxxx Xxx
Xxxxxxxx Xxxx, XX 00000
Attention: General Counsel
Fax: (000) 000-0000
00000 Xxxxxxxx Xxx
Xxxxxxxx Xxxx, XX 00000
Attention: General Counsel
Fax: (000) 000-0000
with a copy to:
Xxxxxxx & Xxxxxx LLP
0000 Xxxxxxxxx Xxxxx
Xxxxxxxxxx, XX 00000
Attention: Xxxxx X. Xxxxxxx
Fax: (000) 000-0000
0000 Xxxxxxxxx Xxxxx
Xxxxxxxxxx, XX 00000
Attention: Xxxxx X. Xxxxxxx
Fax: (000) 000-0000
If to DCS:
Xxxxxx Cellular Systems, Inc
00000 Xxxxxxxx Xxx
Xxxxxxxx Xxxx, XX 00000
Attn: General Counsel
Fax: (000) 000-0000
00000 Xxxxxxxx Xxx
Xxxxxxxx Xxxx, XX 00000
Attn: General Counsel
Fax: (000) 000-0000
with a copy to:
Xxxxxxx & Xxxxxx LLP
0000 Xxxxxxxxx Xxxxx
Xxxxxxxxxx, XX 00000
Attention: Xxxxx X. Xxxxxxx
Fax: (000) 000-0000
0000 Xxxxxxxxx Xxxxx
Xxxxxxxxxx, XX 00000
Attention: Xxxxx X. Xxxxxxx
Fax: (000) 000-0000
If to NCWS:
New Cingular Wireless Services, Inc.
0000 Xxxxxxxxx Xxxxxxxxx, Xxxxx 0000
Xxxxxxx, XX 00000
Attention: General Counsel
Facsimile: (000) 000-0000
0000 Xxxxxxxxx Xxxxxxxxx, Xxxxx 0000
Xxxxxxx, XX 00000
Attention: General Counsel
Facsimile: (000) 000-0000
with a copy to:
Xxxxxx & Bird LLP
0000 Xxxx Xxxxxxxxx Xxxxxx
Xxxxxxx, XX 00000
Fax: (000) 000-0000
Attention: Xxxxxx X. Xxxxx
0000 Xxxx Xxxxxxxxx Xxxxxx
Xxxxxxx, XX 00000
Fax: (000) 000-0000
Attention: Xxxxxx X. Xxxxx
(b) Merger. This Addendum and the ACC Agreement is an integrated agreement, this Addendum and
the DCS Agreement is an integrated agreement and, together with the Release and the Roaming
Agreement contains the entire agreement and understanding of the parties with respect to their
subject matter. All prior and contemporaneous agreements, representations and communications
relating to such subject matter, oral or written, are superseded by and merged into the foregoing
instruments. Each of the Agreements is deemed amended and superseded to the extent of the terms
and provisions of this Addendum, and in the event of a conflict or
inconsistency between this Addendum and the Agreements, the terms and conditions of this
Addendum shall prevail. In the event of a conflict or inconsistency among the Release, the Roaming
Agreement and the Addendum, the Release shall prevail. In the event of a conflict or inconsistency
regarding roaming terms between this Addendum or the Agreements and the Roaming Agreement, the
Roaming Agreement shall prevail. In the event of a conflict or inconsistency with respect to terms
relating to exclusivity, the Agreements, as amended hereby, shall prevail. All terms and conditions
of the Agreements that are not amended, superseded or supplemented by this Addendum shall remain
unchanged and in full force and effect, except as amended, superseded or supplemented by the
Release or the Roaming Agreement.
No party shall make any press release or any other public announcement regarding the
existence or the terms and conditions of this Addendum, the Roaming Agreement or the Release, and
each party agrees to maintain the confidentiality of the foregoing, except (i) as provided for in
Section 6.6 of each of the Agreements, (ii) on a need to know basis to the disclosing party’s
employees, attorneys, advisors, representatives, agents, lenders, insurers, and current or
potential investors; (iii) as necessary to implement this Addendum, the Roaming Agreement or the
Release and inform customers; or (iv) as agreed by the parties. Notwithstanding the foregoing, in
the event that the parties agree on the content of any one disclosure, no prior approval need be
obtained from the non-disclosing party to the extent that the same content is used in future
disclosures. Any information that does not constitute confidential information in accordance with
Section 6.6 of each of the Agreements shall not be subject to or restricted by the provisions in
this Section 43.
Subject to Section 6.6 of each of the Agreements, the parties shall agree to initial
disclosures regarding this Addendum, the Roaming Agreement and the Release and any description of
the terms and conditions therein (the “Initial Disclosures”). Thereafter, the parties shall not
make any disclosures under Section 11(c)(i)-(iv) of this Addendum which are inconsistent with the
Initial Disclosures, except as agreed to in writing by the Parties
(d) Termination. In the event that any provision of the Roaming Agreement results in, or
permits, a termination of either of the Agreements, upon such termination the obligations of NCWS
and its affiliates and Xxxxxx and its respective Affiliates under this Addendum relating to such
terminated Agreement shall also terminate.
(e) Interpretation. Notwithstanding any implication from the terms of this Agreement to the
contrary and for the avoidance of doubt, to the extent any rights under this Addendum arise
following a failure of ACC or DCS to perform under the Roaming Agreement and such failure is
subject to a notice and a cure, in no event will NCWS or any of its affiliates have any rights
arising hereunder until all such applicable notice provisions have been satisfied and such
applicable cure periods have expired under the Roaming Agreement. In addition, notwithstanding a
Designated Entity becoming an Affiliate of Cingular for purposes of the Roaming Agreement, a
Designated Entity shall not be subject to Article 4 of the ACC Agreement or Article 4 of the DCS
Agreement.
ACC and DCS each acknowledge that NCWS’s board of directors has not approved this Addendum and
NCWS acknowledges that neither ACC nor DCS’s board of directors has approved this Addendum.
Neither this Addendum, the Roaming Agreement nor the Release shall be binding on the parties, nor
shall this Addendum create any binding obligation on a party, unless and until all the following
have occurred: (i) this Addendum, having previously been executed by all of the parties, is
approved by (A) the board of directors of Cingular Wireless LLC; (B) ACC’s board of directors, and
(C) DCS’s board of directors; (ii) the Roaming Agreement has been approved in accordance with its
terms; and (iii) the Release has been approved in accordance with its terms. In the event that
this Addendum, the Roaming Agreement or the Release has not been so approved by August 31, 2005,
then this Addendum, the Roaming Agreement and the Release shall all be null and void.
[Signatures on Next Page]
NEW CINGULAR WIRELESS
SERVICES, INC.
SERVICES, INC.
Signature:
|
/s/ Xxxxx X. Xxxxxxx | |||
Name: Xxxxx X. Xxxxxxx
|
||||
Title: Chief Financial Officer
|
||||
XXXXXX CELLULAR SYSTEMS, INC.
Signature:
|
/s/ Xxxxxxx X. Xxxxxx | |||
Name: Xxxxxxx X. Xxxxxx
|
||||
Title: Chairman of the Board
|
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AMERICAN CELLULAR CORPORATION
Signature:
|
/s/ Xxxxxxx X. Xxxxxx | |||
Name: Xxxxxxx X. Xxxxxx
|
||||
Title: Chairman of the Board
|
||||
Schedule 6(b)
*
* Confidential information has been omitted and filed separately with the SEC.
Schedule 7(b)
*
* Confidential information has been omitted and filed separately
with the SEC (2 pages).
Schedule 8
Market | County | State | POPs | Sell (S) | Lease | Lease | Quarterly | BTA Name | Block | Freq. | ||||||||||||
(K) | or | Term | Type | Lease | ||||||||||||||||||
Lease | Payments | |||||||||||||||||||||
(L) | ||||||||||||||||||||||
NY-5
|
Xxxxxx | XX | 000 | X | 0 Xxx | Xx Facto | * | Poughkeepsie – Kingston | E | 1885/1890 1965/1970 |
||||||||||||
NY-3
|
Allegany | NY | 49 | L | TBD | Spectrum Manager | * | Olean, NY-Bradford, PA | C5 | 1905/1910 1985/1990 |
||||||||||||
NY-3
|
Cattaraugus | NY | 83 | L | TBD | Spectrum Manager | * | Olean, NY-Bradford, PA | C5 | 1905/1910 1985/1990 |
||||||||||||
NY-3
|
Xxxxxxx | XX | 00 | X | 0 Xxx | Xx Facto | * | Rochester, NY | E | 1885/1890 1965/1970 |
||||||||||||
NY-3
|
Chautauqua | NY | 139 | L | TBD | Spectrum Manager | * | Jamestown-Dunkirk, NY-Warren, PA |
C5 | 1905/1910 1985/1990 |
||||||||||||
Youngstown
|
Mahoning | OH | 255 | S | n/a | n/a | * | Youngstown – Warren, OH | B3 | 1870/1875 1950/1955 |
||||||||||||
Youngstown
|
Trumbull | OH | 223 | S | n/a | n/a | * | Youngstown – Warren, OH | B3 | 1870/1875 1950/1955 |
||||||||||||
Erie
|
Erie | PA | 278 | S | n/a | n/a | * | Erie, PA | B3 | 1870/1875 1950/1955 |
||||||||||||
Xxxxxx
|
Xxxxxx | PA | 119 | S | n/a | n/a | * | Sharon, PA | B3 | 1870/1875 1950/1955 |
||||||||||||
PA-2
|
McKean | PA | 45 | L | TBD | Spectrum Manager | * | Olean, NY-Bradford, PA | C5 | 1905/1910 1985/1990 |
||||||||||||
PA-2
|
Elk | PA | 35 | L | TBD | Spectrum Manager | * | Olean, NY-Bradford, PA | C5 | 1905/1910 1985/1990 |
||||||||||||
PA-2
|
Cameron | PA | 6 | L | TBD | Spectrum Manager | * | Olean, NY-Bradford, PA | C5 | 1905/1910 0000/0000 |
||||||||||||
XX-0
|
Xxxxxxxxxx | XX | 84 | L | TBD | Spectrum Manager | * | Du Bois-Clearfield, PA | F | 1890/1895 1970/1975 |
||||||||||||
PA-7
|
Jefferson | PA | 46 | L | TBD | Spectrum Manager | * | Du Bois-Clearfield, PA | F | 1890/1895 1970/1975 |
||||||||||||
XX-0
|
Xxxxxxx | XX | 89 | L | TBD | Spectrum Manager | * | Indiana, PA | C2 | 1895/1902.5 1975/1982.5 |
* Confidential information has been omitted and filed separately with the SEC.
Market | County | State | POPs | Sell (S) | Lease | Lease | Quarterly | BTA Name | Block | Freq. | ||||||||||||
(K) | or | Term | Type | Lease | ||||||||||||||||||
Lease | Payments | |||||||||||||||||||||
(L) | ||||||||||||||||||||||
XX-0
|
Xxxxxxxx | XX | 00 | X | 0 Xxx | Xx facto | * | Abilene, TX | F | 1890/1895 0000/0000 |
||||||||||||
XX-0
|
Xxxxx | XX | 34 | L | 3 Yrs | De Facto | * | Dallas-Ft. Worth, TX | D | 1865/1870 0000/0000 |
||||||||||||
XX-0
|
Xxxxxxxx | XX | 8 | L | 3 Yrs | De Facto | * | Dallas – Ft. Worth, TX | D | 1865/1870 0000/0000 |
||||||||||||
XX-0
|
Xxxxxxxxx | XX | 7 | L | 3 Yrs | De Facto | * | Dallas – Ft. Worth, TX | D | 1865/1870 0000/0000 |
||||||||||||
XX-0
|
Xxxxxxx | XX | 12 | L | 3 Yrs | De Facto | * | San Angelo, TX | E | 1885/1890 0000/0000 |
||||||||||||
XX-0
|
Xxxxxx | XX | 18 | L | 3 Yrs | De Facto | * | Waco, TX | E | 1885/1890 0000/0000 |
||||||||||||
XX-0
|
Xxxx | XX | 33 | L | 3 Yrs | De Facto | * | Waco, TX | E | 1885/1890 1965/1970 |
||||||||||||
TX -10
|
Xxxxxxxx | TX | 56 | L | 12–18 Mos | De Facto | * | Tyler, TX | D | 1865/1870 1945/1950 |
||||||||||||
TX -10
|
Van Zandt | TX | 51 | L | 12–18 Mos | De Facto | * | Dallas – Ft. Worth, TX | D | 1865/1870 0000/0000 |
||||||||||||
XX-00
|
Xxxxxx | XX | 25 | L | 3 Yrs | De Facto | * | Houston, TX | XXX | XXX | ||||||||||||
XX-00
|
Xxxxxxxx | XX | 17 | L | 3 Yrs | De Facto | * | Xxxxx – College Station, TX | E | 1885/1890 0000/0000 |
||||||||||||
XX-00
|
Xxxxxxxx | XX | 21 | L | 3 Yrs | De Facto | * | Houston, TX | XXX | XXX | ||||||||||||
XX-00
|
Xxxxxxx | XX | 22 | L | 3 Yrs | De Facto | * | Houston, TX | XXX | XXX | ||||||||||||
XX-00
|
Xxxxxxx | XX | 15 | L | TBD | Spectrum Manager | * | Victoria, TX | C5 | 1905/1910 0000/0000 |
||||||||||||
XX-00
|
Xxxxxx | XX | 19 | L | TBD | Spectrum Manager | * | Victoria, TX | C5 | 1905/1910 1985/1990 |
||||||||||||
TX-16
|
Matagorda | TX | 38 | L | 3 Yrs | De Facto | * | Houston, TX | XXX | XXX | ||||||||||||
XX-00
|
Xxxxxxxxxx | XX | 31 | L | 3 Yrs | De Facto | * | Houston, TX | XXX | XXX |
Market | County | State | POPs | Sell (S) | Lease | Lease | Quarterly | BTA Name | Block | Freq. | ||||||||||||
(K) | or | Term | Type | Lease | ||||||||||||||||||
Lease | Payments | |||||||||||||||||||||
(L) | ||||||||||||||||||||||
XX-0
|
Xxxxxxxx | XX | 00 | X | x/x | x/x | * | Meadville, PA | B3 | 1870/1875 0000/0000 |
||||||||||||
Xxxx 00
|
Xxxxxxxxxx | XX | 111 | S | n/a | n/a | * | East Liverpool, OH | B3 | 1870/1875 0000/0000 |
||||||||||||
Xxxxx 00
|
Xxxxxxx | XX | 41 | L | 3 Yrs | De Facto | * | Houston, TX BTA | XXX | XXX | ||||||||||||
Xxxxxxxx 0
|
Xxxxxxxx | XX | 65 | L | TBD | Spectrum Manager | * | Mount Pleasant, MI BTA | C4 | 1900/1905 1980/1985 |
||||||||||||
Michigan 7
|
Gratiot | MI | 43 | L | TBD | Spectrum Manager | * | Mount Pleasant, MI BTA | C4 | 1900/1905 1980/1985 |
||||||||||||
Michigan 6
|
Clare | MI | 32 | L | TBD | Spectrum Manager | * | Mount Pleasant, MI BTA | C4 | 1900/1905 1980/1985 |
||||||||||||
AK-1
|
Denali | AK | 2 | L | TBD | Spectrum Manager | * | Fairbanks, AK BTA | C4 | 1900/1905 1980/1985 |
||||||||||||
AK-1
|
Fairbanks North | AK | 83 | L | TBD | Spectrum Manager | * | Fairbanks, AK BTA | C4 | 1900/1905 1980/1985 |
||||||||||||
AK-1
|
Fairbanks South | AK | 6 | L | TBD | Spectrum Manager | * | Fairbanks, AK BTA | C4 | 1900/1905 1980/1985 |
||||||||||||
AK-1
|
Yukon | AK | 7 | L | TBD | Spectrum Manager | * | Fairbanks, AK BTA | C4 | 1900/1905 0000/0000 |
||||||||||||
XX-0
|
Xxxxxxx | XX | 0 | L | TBD | Spectrum Manager | * | Juneau-Ketchikan, AK BTA | C4 | 1895/1900 1975/1980 |
||||||||||||
AK-3
|
Juneau | AK | 31 | L | TBD | Spectrum Manager | * | Juneau-Ketchikan, AK BTA | C4 | 1895/1900 1975/1980 |
||||||||||||
AK-3
|
Haines | AK | 2 | L | TBD | Spectrum Manager | * | Juneau-Ketchikan, AK BTA | C4 | 1895/1900 1975/1980 |
||||||||||||
AK-3
|
Sitka | AK | 9 | L | TBD | Spectrum Manager | * | Juneau-Ketchikan, AK BTA | C4 | 1895/1900 1975/1980 |
||||||||||||
AK-3
|
Wrangell | AK | 7 | L | TBD | Spectrum Manager | * | Juneau-Ketchikan, AK BTA | C4 | 1895/1900 1975/1980 |
||||||||||||
AK-3
|
Prince of Whales | AK | 6 | L | TBD | Spectrum Manager | * | Juneau-Ketchikan, AK BTA | C4 | 1895/1900 1975/1980 |
||||||||||||
AK-3
|
Yakutat | AK | 1 | L | TBD | Spectrum Manager | * | Juneau-Ketchikan, AK BTA | C4 | 1895/1900 0000/0000 |
||||||||||||
XX-0
|
Xxxxxxx | XX | 11 | L | TBD | Spectrum Manager | San Angelo, TX | F | 1890/1895 1970/1975 |
Exhibit 8(i)
Form of Long Term de Facto Lease Agreement
EXHIBIT 8(i) TO ADDENDUM TO GSM OPERATING AGREEMENTS
FORM OF
LONG-TERM DE FACTO TRANSFER
SPECTRUM LEASE AGREEMENT
LONG-TERM DE FACTO TRANSFER
SPECTRUM LEASE AGREEMENT
This Agreement (“Agreement”) is entered into as of this ___day of ___, 2005
(“Effective Date”), between [the wholly-owned subsidiaries of Cingular Wireless LLC
specified in Part 1 of Exhibit A hereto, each of which is] located at 0000 Xxxxxxxxx Xxxxxxxxx,
Xxxxxxx, Xxxxxxx 00000 (collectively “Lessors” and each a “Lessor”), and Xxxxxx Cellular Systems,
Inc, which is located at 00000 Xxxxxxxx Xxx, Xxxxxxxx Xxxx, XX 00000 (“Lessee”)
(collectively the “Parties” or, individually, a “Party”).
As used herein, the following terms have the following meanings:
“Affiliate” means, with respect to a specified Person, a Person that directly, or
indirectly through one or more intermediaries, controls, or is controlled by, or is under common
control with, the Person specified. For purposes of this definition, “control” (including the
terms “controlling,” “controlled by” and “under common control with”) means the possession, direct
or indirect, of the power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, by contract, or otherwise.
“FCC Licenses” shall have the meaning given it in the recitals.
“FCC License Expiration Date” date shall mean as to each FCC License the date on which the
then-effective term of such FCC License terminates.
“Governmental Body” means any branch of any federal, state or local government,
domestic or foreign, and any agency, bureau, commission, court, department or other instrumentality
thereof.
“Leased Spectrum” shall have the meaning given it in the recitals.
“Lessee System” means a PCS System owned, operated or managed by Lessee or its
Affiliates.
“Lien” means any charge, claim, encumbrance, lien, pledge, security interest or right
of others with respect to any asset.
“PCS” means Personal Communications Services (as such term is defined in 47 C.F.R. §
24.5).
“Person” means an individual, entity or Governmental Body.
“Services” means any wireless service that can be provided utilizing the following
technologies: (i) TDMA or UWC-136 (TIA/EIA/-136 series) as defined by TIA/EIA (Telecommunications
Industry Association/Electronic Industries Alliance); and (ii) GSM, GPRS, EDGE, or W-CDMA/UMTS as
defined by 3GPP (Third Generation Partnership Project).
“System” means a mobile wireless communications system.
2
Section 2.1 Lease
Subject to FCC consent to the leasing arrangement created hereby, Lessors hereby grant to
Lessee the exclusive right to use the Leased Spectrum to provide Services during the term of this
Agreement in accordance with the provisions hereof (“Spectrum Usage Rights”). The Parties intend
this Agreement to create a long-term de facto transfer leasing arrangement (within the meaning of
47 C.F.R. § 1.9030). The spectrum leasing arrangement created hereby is not an assignment, sale,
or transfer of the FCC Licenses. Lessee shall not hold itself out to the public as the holder of
the FCC Licenses and shall not hold itself out as an FCC licensee by virtue of its having entered
into the spectrum leasing arrangement created hereby.
Section 2.2 Scope of Spectrum Usage Rights
The Spectrum Usage Rights granted hereunder convey to Lessee the exclusive right and
obligation to use the Leased Spectrum and to exercise de facto control over the Leased Spectrum to
the fullest extent permitted by the terms of this Agreement and 47 C.F.R. § 1.9030.
Lessee shall receive all moneys and profits from use of the leased spectrum for the duration of the
Agreement. The Spectrum Usage Rights granted to Lessee include the right and obligation to take
all actions that Lessee deems necessary or desirable to construct, test, maintain, and operate a
System on the Leased Spectrum in accordance with the Communications Laws.
Section 2.3 Lease Payments
In exchange for the right to use the Leased Spectrum in each Market, Lessee shall pay to the
respective Lessor the amount set forth in Part 3 of Exhibit A, payable in arrears every three
months commencing three months after the Effective Date of this lease. The lease payment for the
last full or partial quarter of the term shall be payable on the effective date of termination.
Section 3.1 Term
Subject to the provisions for earlier termination contained herein and further subject to the
provisions of Section 3.4, this Agreement shall have a term commencing on the date of the FCC’s
public notice announcing its consent to the leasing arrangement created hereby (the “Effective
Date”), and continuing with respect to the Leased Spectrum in each Market for the number of
months set forth in Part 2 of Exhibit A (the“Initial Term”); provided, however, that if the
FCC License Expiration Date occurs earlier than the date designated “Lease Expiration Date” set
forth in Part 2 of Exhibit A, then the Initial Term shall end on the FCC License Expiration Date
and this Lease Agreement shall automatically be extended (the “Renewal Term”, and together with the
3
Initial
Term, the “Term”) so that the Initial Term and the Renewal Term total the number of months set
forth in Part 2 of Exhibit A; provided further that in such event the parties shall cooperate to
timely file a notification of such renewal prior to the FCC License Expiration Date and further
that this Lease Agreement will continue in full force and effect with respect to Leased Spectrum in
a Market or Markets so long as a renewal application for the FCC License covering that Market is
pending at the FCC and the term set forth on Exhibit A has not expired.
Section 3.2 Termination
(a) | Either Party may terminate this Agreement on notice to the other Party: | ||
(i) if the Effective Date does not occur within 180 days after the date hereof; | |||
(ii) subject to Section 3.3 and Section 8.11, upon a material breach of this Agreement that is not cured within 30 days following notice thereof by the non-breaching Party; or | |||
(iii) if the other Party (a) commences a voluntary case under Title 11 of the United States Bankruptcy Code, as from time to time in effect, or authorizes, by appropriate proceedings of its board of directors or other governing body, the commencement of such a voluntary case; (b) has filed against it a petition commencing an involuntary case under Title 11 of the United States Bankruptcy Code, which remains undismissed or undischarged for 60 days after the date it is filed; (c) seeks relief as a debtor under any applicable law of any jurisdiction, other than Title 11 of the United States Bankruptcy Code, relating to the liquidation or reorganization of debtors or to the modification or alteration of the rights of creditors, or consents to or acquiesces in such relief; (d) has entered against it an order by a court of competent jurisdiction (x) finding it to be bankrupt or insolvent, (y) ordering or approving its liquidation, reorganization or any modification or alteration of the rights of its creditors or (z) assuming custody of, or appointing a receiver or other custodian for, all or a substantial part of its property; or (e) makes an assignment for the benefit of, or enters into a composition agreement with, its creditors, or appoints or consents to the appointment of a receiver or other custodian for all or a substantial part of its property. |
Section 3.3 Failure to Comply with FCC Rules
If Lessee fails to comply with any applicable rules set forth in Chapter I of Title 47 of the
Code of Federal Regulations or in any other applicable law, the spectrum leasing arrangement
created hereby may be revoked, cancelled or terminated by the FCC. If Lessee fails in any Market
to comply with any applicable rules set forth in Chapter I of Title 47 of the Code of Federal
Regulations or in any other applicable law, the spectrum
leasing arrangement in the applicable Market may be revoked, cancelled or terminated by
4
the
applicable Lessor in the event that the failure of compliance by such Lessee, if committed or
omitted by Lessors with respect to the applicable FCC License, would entitle the FCC to revoke or
decline to renew the applicable FCC License. Prior to any such revocation, cancellation or
termination by Lessors, Lessors will provide Lessee with notice, and if Lessee is unable for any
reason to cure such failure within 30 days, or such lesser period as may be permitted by the FCC,
Lessors may terminate this Agreement upon notice to Lessee.
Section 3.4 Revocation or Cancellation of FCC Licenses
If the FCC Licenses are revoked, cancelled, terminated, or otherwise cease to be in effect,
including, without limitation, by reason of non-renewal, Lessee shall have no continuing authority
or right to use the Leased Spectrum unless otherwise authorized by the FCC. Lessors will notify
Lessee promptly if the FCC Licenses are revoked, cancelled, terminated, or otherwise cease to be in
effect, including, without limitation, by reason of non-renewal, and such notice shall constitute
notice of termination of this Agreement with respect to such Leased Spectrum. Lessors will notify
Lessee promptly if the FCC takes any action that could reasonably be expected to result in the
revocation, cancellation or termination of the FCC Licenses, or if the FCC Licenses otherwise cease
to be in effect, and Lessors shall cooperate with Lessee in seeking FCC authorization to continue
to use the Leased Spectrum.
Section 3.5 Effect of Termination
Upon termination of this Agreement, all of Lessee’s right, title and interest in and to the
Leased Spectrum shall automatically revert to the applicable Lessor, and the Parties shall have no
further obligations to each other hereunder in respect of the FCC Licenses or Leased Spectrum,
provided, that termination shall not relieve the Parties of liability for breach hereof. In the
event of termination of this Agreement prior to the stated expiration date, Lessors shall notify
the FCC within ten days thereafter.
Section 4.1 Representations of Both Parties
Each Party represents that (a) it is a corporation or limited liability company, as the case
may be, duly organized and in good standing under the laws of the jurisdiction of its organization;
(b) its execution and delivery of this Agreement, and the performance of its obligations hereunder,
have been duly authorized by all requisite action; (c) it has duly executed and delivered this
Agreement; (d) this Agreement constitutes its valid and binding agreement, enforceable against
such Party in accordance with its terms; (e) its execution and delivery of this Agreement, and the
performance of its obligations hereunder, do not and will not (i) violate or conflict with, or
result in a breach or default under, (ii) entitle any Person to modify, accelerate or terminate any
rights, remedies or other provisions of, or (iii) require the consent or approval of, or any notice
to or filing with, any Person (other than the FCC) under, (x) the constituent documents of such Party,
5
(y)
any law, rule, regulation, order, judgment or decree to which such Party or its assets are subject
or (z) any instrument, agreement, arrangement or understanding by which such Party is bound; (f)
there are no actions, claims or other proceedings pending or, to the knowledge of such Party,
threatened against such Party that seek to delay or enjoin the transactions contemplated hereby;
and (g) it satisfies the eligibility and qualification requirements applicable to a holder of the
FCC Licenses under the Communications Laws.
Section 4.2 Additional Representations of Lessors
Lessors represent as follows:
(a) | Each of the Lessors is the exclusive holder of the applicable FCC License, free and clear of all Liens, and no other person has any right, title or interest in or to the FCC Licenses, in each case except for arrangements that do not affect the Leased Spectrum. The FCC Licenses are in full force and effect. | ||
(b) | Except for proceedings affecting the wireless industry generally, there is not pending or, to the knowledge of Lessors, threatened against Lessors or the FCC Licenses, nor do Lessors know of any basis for, any application, action, formal complaint, claim, investigation, suit, notice of violation, petition, objection or other pleading, or any proceeding before the FCC or any other Governmental Body, against Lessors or the FCC Licenses, which questions or contests the validity of, or seeks the revocation, cancellation, forfeiture, non-renewal or suspension of, the FCC Licenses, or which seeks the imposition of any modification or amendment thereof, or the payment of a material fine, sanction, penalty, damages or contribution in connection with its use. | ||
(c) | All material documents required to be filed at any time by Lessors with the FCC or any other Governmental Body pursuant to FCC rules and policies with respect to the FCC Licenses have been timely filed or the time period for such filing has not lapsed, except where the failure to timely file or make such filing would not be material. All of such filings are complete and correct in all material respects. The FCC Licenses are not subject to any conditions other than those appearing on its face and those imposed by FCC rules and policies. All amounts owed to the FCC in respect of the FCC Licenses have been timely paid and, as of the date hereof, no further amounts are due to the FCC in respect of the FCC Licenses. | ||
(d) | Lessors are in compliance in all material respects with all laws, rules and regulations applicable to the FCC Licenses, including rules, regulations, policies and orders regarding implementation of the Communications Assistance for Law Enforcement Act of 1994, as amended (CALEA), wireless enhanced 911 (E911), telephone number portability, telephone service for the hearing impaired, the National Environmental Policy Act of 1969, as amended (NEPA), and other FCC rules and policies, and each Lessor has complied in all material respects with the terms and conditions of its FCC License, except in each case where non- compliance with any of the foregoing would not have a material adverse effect on |
6
its ability to enter into this Agreement or perform its obligations hereunder. Lessors have not received written notice of any complaint or order filed alleging any material non-compliance with respect to any such laws, rules or regulations, in each case (i) to the extent applicable to the FCC Licenses and (ii) except as would not have a material adverse effect on Lessors’ ability to enter into this Agreement or perform its obligations hereunder. | |||
(e) | Lessors have certified to the FCC, where applicable, that the FCC Licenses have been built out at least to the minimum extent required by construction deadline(s) imposed by 47 C.F.R. § 24.203 and the FCC has granted or accepted such certification(s). | ||
(f) | There are no microwave relocation agreements in respect of the FCC Licenses to which any of the Lessors or any of their Affiliates is a Party, and with respect to which either (x) Lessors have not fully completed performance or (y) the incumbent microwave licensee has not filed with the FCC (and provided to Lessors the ULS file numbers of) Applications or Notifications on Form 601 to relinquish its rights to the microwave path(s) that are the subject of such agreement. All cost sharing obligations (within the meaning of 47 C.F.R. § 24.239 et seq.) in respect of the FCC Licenses of which Lessors have been notified by the Clearinghouse (as defined below) have been paid. | ||
(g) | Lessors do not hold the FCC Licenses pursuant to the small business or entrepreneur provisions of the FCC rules, and are not (in respect of the FCC Licenses) subject to the unjust enrichment requirements or transfer restrictions, of applicable FCC rules. | ||
(h) | EXCEPT AS EXPRESSLY PROVIDED HEREIN, LESSORS HAVE NOT MADE AND DO NOT MAKE ANY REPRESENTATION, WARRANTY OR COVENANT OF ANY KIND, EXPRESS OR IMPLIED, WITH RESPECT TO THE FCC LICENSES OR THEIR SUITABILITY OR FITNESS FOR USE FOR ANY PURPOSE. TO THE MAXIMUM EXTENT PERMITTED BY LAW, LESSORS SHALL INCUR NO LIABILITY WHATSOEVER TO LESSEE ARISING OUT OF OR IN CONNECTION WITH LESSEE’S USE OR OPERATION OF THE FCC LICENSES. |
Section 5.1 Regulatory Compliance
(a) | The Parties shall promptly provide each other with all information reasonably necessary for, and shall otherwise cooperate in, the preparation and filing with the FCC of the requisite applications for approval of the spectrum leasing arrangement and any extensions or conversions hereof contemplated by this Agreement. The Parties shall file with the FCC, within ten (10) Business Days after the execution of this Agreement, such applications and other documents as |
7
may be necessary or advisable to obtain FCC approval of this leasing arrangement. | |||
(b) | Each Party shall comply at all times with applicable rules set forth in Chapter I of Title 47 of the Code of Federal Regulations and with all other applicable laws. If one Party ceases to be compliance in any material respect with applicable FCC rules or policies or with any other applicable law, or receives a notice from the FCC or any other Governmental Body claiming that such Party is not in compliance with applicable FCC rules and policies, with respect to the FCC Licenses or the Leased Spectrum, as the case may be, such Party shall promptly notify, or deliver a copy of such notice to, the other Party. | ||
(c) | The information contained in any application, notification, submission or report to the FCC by Lessors or Lessee in respect of the FCC Licenses or the Leased Spectrum shall be correct and complete in all material respects. | ||
(d) | In the event of a proposed change of control of Lessee, subject to Section 8.4, Lessor shall, upon request of Lessee, cooperate in the filing with the FCC of application for FCC consent to, or, in the case of a change of control of Lessee that constitutes a pro forma transfer of control of Lessee (within the meaning of the FCC rules), any required notification to the FCC of, such change of control, as may be required by 47 C.F.R. § 1.9030. | ||
(e) | The Parties acknowledge that Lessee is responsible for making all FCC filings relating to the Leased Spectrum, but that the FCC’s ULS system has not yet been updated to allow Lessee to make such filings. Consequently, until the FCC’s ULS system is so updated, Lessors shall make all FCC filings relating to the Leased Spectrum at the direction of and on behalf of the Lessee; provided that Lessee furnishes Lessors in writing with the text and all other information necessary for any such filing reasonably in advance of the filing deadline. In connection with such filings, Lessors shall have no liability to Lessee or any third Party resulting from (i) errors or omissions contained in the information provided by Lessee, or (ii) any such filing being filed late due to Lessee’s failure to provide the necessary information for any such filing reasonably in advance of the filing deadline. The cost of making any such filing by Lessors shall be reimbursed by Lessee on demand. | ||
(f) | Lessee shall operate the Leased Spectrum in compliance with the Communications Laws or any other applicable law as it is primarily responsible for such compliance. | ||
(g) | Lessors shall be entitled to rely on Lessee’s operations over the Leased Spectrum in demonstrating compliance with applicable FCC construction and substantial service requirements. |
8
Section 5.2 Lessors May Perform
If Lessee fails to perform in any material aspect of its obligations under this Agreement or
applicable FCC rules and policies in respect of the Leased Spectrum, Lessors may, but shall have no
obligation to, with notice to Lessee, perform any act or make any payment that Lessors deem
necessary for the maintenance and preservation of the FCC Licenses and Lessors’ ownership thereof.
The cost of any such action or payment by Lessors shall be reimbursed by Lessee on demand, and any
amounts that are not so reimbursed shall bear interest at a rate of twelve percent (12%) per annum
from the date of demand until paid. The performance of any act or making of any payment by Lessors
shall not be deemed a waiver by Lessors of any obligation or default by Lessee. In furtherance of
the foregoing, Lessee shall cooperate fully with Lessors, and shall provide Lessors with access to
Lessee’s owned and leased facilities, and its books and records and other information, relating to
Lessee’s compliance with FCC rules and policies applicable to the Leased Spectrum.
Section 5.3 Maintenance of FCC Licenses
Lessors shall maintain the validity and good standing of the FCC Licenses, and shall defend
the FCC Licenses from all claims and challenges, subject to the other provisions of this Agreement
in the event of claims or challenges arising out of Lessee’s lease, use or operation of the Leased
Spectrum. Lessors shall notify Lessee promptly upon learning of any claim or challenge to the FCC
Licenses (other than any claim or challenge that applies to PCS or cellular licenses generally).
Lessors will undertake to timely file any application required for renewal of the FCC Licenses
prior to the expiration of the term of the FCC Licenses. The renewal application shall include an
affirmative statement that, subject to renewal of the FCC Licenses, the term of this Agreement
shall extend beyond the end of the then-current FCC License term.
Section 5.4 Assessments and Fees
Lessee shall pay all assessments, filing or recording fees, documentary stamp taxes, sales
taxes, use taxes, personal property taxes, excise taxes, including value added taxes, and all other
federal, state or local taxes (apart from any taxes on the overall net income or the overall net
capital gains of Lessors) which may now or hereafter be imposed on or with respect to the Leased
Spectrum or the leasing, rental, possession, use or operation of the Lease Spectrum, whether
assessed to Lessors or Lessee.
Section 5.5 Regulatory Fees
To the extent that regulatory fees in respect of the FCC Licenses or the Leased Spectrum are
payable annually on a per-unit basis, Lessee shall pay the fees for those units associated with the
subscribers served by its operations over the Leased Spectrum.
Section 5.6 E911 Obligations
The Parties agree that Lessee shall pay for, perform and be solely responsible for complying
with any and all E911 obligations relating to the Systems that employ the
9
Leased Spectrum,
including, without limitation, obligations relating to E911 Phase I and Phase II “deployment
requests” pursuant to 47 C.F.R. § 20.18 of the FCC rules (the “E911 Regulations”). For the
avoidance of doubt, Lessee’s obligation hereunder is to comply with the E911 Regulations generally
imposed by the FCC upon wireless carriers, generally, as opposed to any E911 obligations imposed by
the FCC upon Lessors under its TDMA and GSM consent decrees.
Section 5.7 Confidentiality
The Parties acknowledge that, in discharging their duties under this Agreement, proprietary
information regarding one Party’s system or business operations (“confidential
information”) may be provided to the other Party. The Parties acknowledge that each Party’s
confidential information has been developed at considerable effort and expense and represents
special, unique, and valuable proprietary assets of such Party, the value of which may be destroyed
by unauthorized dissemination. Accordingly, each Party agrees that, except as required for the
performance of this Agreement (including, without limitation, any required disclosure to the FCC or
any other Governmental Body in connection herewith), neither it nor any of its agents shall
disclose such confidential information to any Person for any reason whatsoever, such undertaking to
be enforceable by injunctive or other equitable relief to prevent any violation or threatened
violation thereof. The section shall not apply to confidential information that (i) is or becomes
publicly available through no fault or breach of this section by Lessor or Lessee, (ii) is lawfully
obtained from third parties without breaching any provision of any non-disclosure agreement, or
(iii) is previously known or developed by the receiving Party independently of the disclosing
Party. Additionally, the Parties will continue to hold all confidential information in strict
confidence for a period of five (5) years from the date of termination of this Agreement.
Section 6.1 Indemnification by Lessee
Lessee will defend, indemnify and hold harmless Lessors and its Affiliates, and their
respective shareholders, partners, members, directors, managers, employees and agents (the
“Lessors Indemnified Parties”) from and against any and all losses, liabilities, claims,
damages, expenses (including costs of investigation and defense and reasonable attorneys’ fees and
expenses), whether or not involving a third-party claim (“Losses”) arising out of or
incurred as a result of (a) the breach of any representation, warranty, covenant or agreement made
by Lessee in this Agreement, (b) the lease, use or operation by Lessee (or its permitted successors
or permitted assigns) of the Leased Spectrum and (c) the exercise by Lessors of their remedies
hereunder (including Losses resulting from claims by Lessee’s customers).
10
Section 6.2 Indemnification by Lessors
Lessors will defend, indemnify and hold harmless Lessee and its Affiliates, and their
respective shareholders, partners, members, directors, managers, employees and agents (the “Lessee
Indemnified Parties”) from and against any and all Losses arising out of or incurred as a result of
the breach of any representation, warranty, covenant or agreement made by Lessors in this
Agreement.
Section 6.3 Notice and Defense of Claims
(a) | A Party claiming indemnification under this Article 6 (the “Asserting Party”) must promptly notify (in writing and in reasonable detail) the Party from which indemnification is sought (the “Defending Party”) of the nature and basis of such claim for indemnification. If such claim relates to a claim, suit, litigation or other action by a third party against the Asserting Party (a “Third Party Claim”), the Defending Party may elect to assume the defense of the Third Party Claim, at its own expense with counsel of its choosing, by notice to the Asserting Party given within 20 days after delivery of the Asserting Party’s notice, or at any time thereafter with the consent, not to be unreasonably withheld, of the Asserting Party. If the Defending Party assumes the defense of the Third Party Claim, the Asserting Party may participate in the defense of such Third Party Claim through counsel of its choosing, but the Defending Party shall not be liable for any fees and expenses of counsel for the Asserting Party incurred thereafter in connection with the Third Party Claim, provided, that no Defending Party shall, without the prior written consent of the Asserting Party, consent to the entry of any judgment against the Defending Party or enter into any settlement or compromise which (i) does not include, as an unconditional term thereof, the giving by the claimant or plaintiff to the Asserting Party of a release, in form and substance reasonably satisfactory to the Asserting Party from all liability in respect of such claim or litigation or (ii) includes terms and conditions that adversely affect the Asserting Party. | ||
(b) | If the Defending Party does not assume the defense of the Third Party Claim, the Asserting Party shall have the right (i) to control the defense thereof, and (ii) if the Asserting Party shall have notified the Defending Party of the Asserting Party’s intention to negotiate a settlement of the Third Party Claim (at the Defending Party’s expense to the extent the matter is determined to be subject to indemnification hereunder), which notice shall include the material terms of any proposed settlement in reasonable detail, the Asserting Party may settle the Third Party Claim (at the Defending Party’s expense to the extent the matter is determined to be subject to indemnification hereunder) on terms not materially inconsistent with those set forth in such notice. The Asserting Party shall not be entitled to settle any such Third Party Claim pursuant to the preceding sentence unless such settlement includes an unconditional release of the Defending Party by the third party claimant on account thereof. The Asserting Party and the Defending Party shall use all commercially reasonable efforts to cooperate fully |
11
with respect to the defense and settlement of any Third Party Claim covered by this Article 6. | |||
(c) | The failure of any indemnified Party to give an indemnifying Party a notice of claim shall not relieve the indemnifying Party from any liability in respect of such claim, demand or action which it may have to such indemnified Party on account of the indemnity agreement of such indemnifying Party contained in this Article 6, except to the extent such indemnifying Party can establish actual prejudice and direct damages as a result thereof. |
Section 6.4 No Consequential Damages
Neither Party shall be liable to the other for any amounts representing the loss of profits,
loss of business, or indirect, special, exemplary, consequential or punitive damages, arising from
the performance or nonperformance of this Agreement or any acts or omissions associated therewith
or related to the use of any items or services furnished hereunder, whether the basis of liability
is breach of contract, tort (including negligence or strict liability), statutes, or any other
legal theory.
Section 7.1 Dispute Resolution
In the event of any controversy or claim of any nature arising out of or relating to this
Agreement or the breach, termination or validity thereof, whether based on contract, tort, statute,
fraud, misrepresentation or any other legal or equitable theory, or any subject matter governed by
this Agreement (a “Dispute”) the Parties agree to comply with the dispute resolution
procedure set forth in this Article 7.
Section 7.2 Claims Procedures
If a Party shall have a Dispute, that Party shall provide written notification to the other
Party in accordance with Section 8.7, in the form of a claim identifying the issue or amount
disputed and including a detailed reason for the claim. The Party against whom the claim is made
shall respond in writing to the claim within 15 days from the date of receipt of the claim
document.
Section 7.3 Escalation Procedure
At the written request of either Party, each Party shall identify a knowledgeable, responsible
representative to meet and negotiate in good faith to resolve the Dispute. The business
representatives will meet (either by phone or in person) and attempt to resolve the Dispute within
15 days of receiving the written request. If the Dispute is not resolved by the business
representatives within 30 days of their first meeting, then the Dispute shall be submitted to
binding arbitration pursuant to Section 7.4.
12
Section 7.4 Binding Arbitration
All Disputes that are not resolved pursuant to Section 7.3 shall be resolved solely and
exclusively by arbitration to be held in New York, New York, by the CPR Institute for Dispute
Resolution (“CPR”) in accordance with the provisions of this Section 7.4 and the CPR Rules for
Non-Administered Arbitration (the “CPR Rules”) to the extent such Rules do not conflict with this
paragraph and this Agreement.
(a) | The Party commencing arbitration (the “Claimant”) shall deliver to the other Party (the “Respondent”) a notice of arbitration in accordance with the CPR Rules. The arbitration shall be deemed commenced as to any Respondent on the date on which the notice of arbitration is received by the Respondent (the date of receipt of notice of arbitration being referred to herein as “Commencement”). The Respondent’s notice of defense shall be served upon the Claimant within ten days after Commencement. | ||
(b) | The arbitration shall be conducted by a single arbitrator, knowledgeable in the legal and technical aspects of the Dispute, appointed by CPR. | ||
(c) | Discovery shall be limited to the production of documents to be used by each Party to prove or defend against the claims and counterclaims alleged in the notices of arbitration and defense and, if depositions are required, each Party shall be limited to three depositions of no longer than three hours each. If the arbitrator decides to hold an evidentiary hearing, each Party’s presentation of its case, including its direct and rebuttal testimony, shall be limited to three days. | ||
(d) | The arbitrator shall issue an order preventing the Parties, CPR and any other Participants to the arbitration from disclosing to any third party any information obtained in the arbitration, including discovery documents, evidence, testimony and the award except as may be required by law. | ||
(e) | All requests for injunctive relief shall be decided by the arbitrator, provided, however, that requests for temporary injunctive relief may be submitted to a court of competent jurisdiction if the arbitrator has not yet been appointed. The arbitrator shall have the authority to modify any injunctive relief granted by such a court. | ||
(f) | The arbitration award shall: (i) be in writing; (ii) state only the damages and injunctive relief granted, if any, and the Parties’ respective liability for the costs of arbitration; (iii) be made final as soon as practicable, but in any event within 60 days of Commencement; and (iv) be entered by either Party in any court of competent jurisdiction, provided, that the Party entering the award shall request that the court prevent the award from becoming publicly available except as may be required by law. The arbitrator shall not limit, expand or otherwise modify the terms of this Agreement, and shall not award punitive or other damages in excess of compensatory damages. The arbitrator shall orally state the reasoning on which the award rests but shall not state such reasoning in any writing. |
13
(g) | The Party that is not the substantially prevailing Party in the arbitration shall bear the costs of arbitration. If neither Party is the substantially prevailing Party in the arbitration, the arbitrator shall apportion the costs of arbitration in accordance with the result of the arbitration. The costs of arbitration shall include the reasonable fees and expenses of legal and other professional advisers to the Parties incurred in connection with the arbitration. | ||
(h) | The Parties agree that the existence and contents of the entire arbitration, including the award, shall be deemed a compromise of a dispute under Rule 408 of the Federal Rules of Evidence, shall not be discoverable in any proceeding, shall not be admissible in any court (except for the enforcement thereof) or arbitration and shall not bind or collaterally estop either Party with respect to any claim or defense made by any third party. |
Section 8.1 Entire Agreement
This Agreement constitutes the entire agreement of the Parties with respect to the subject
matter hereof.
Section 8.2 Amendments
No amendment, modification, change or waiver of any provision of this Agreement shall be valid
except by an agreement in writing executed by the Parties hereto. Except as otherwise expressly
set forth herein, no failure or delay by any Party hereto in exercising any right, power or
privilege hereunder (and no course of dealing between or among any of the Parties) shall operate as
a waiver of any such right, power or privilege. No waiver of any default on any one occasion shall
constitute a waiver of any subsequent or other default. No single or partial exercise of any such
right, power or privilege shall preclude the further or full exercise thereof.
Section 8.3 Severability; Reformation
(a) | Subject to paragraph (b) below, if any provision of this Agreement or the application thereof to any Person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law, but only as long as the continued validity, legality and enforceability of such provision or application does not materially (i) alter the terms of this Agreement, (ii) diminish the benefits of this Agreement or (iii) increase the burdens of this Agreement, for any Person. | ||
(b) | If the FCC should change its rules or policies, or take or omit to take any action, whether on its own initiative or by petition from another Person, in a manner that would (i) adversely affect the enforceability of this Agreement in whole or in material part, (ii) challenge or deny the authority of Lessee to lease, use or operate |
14
the Leased Spectrum, or (iii) alter in any material respect the relative benefits and burdens of this Agreement, then the Parties shall promptly seek to negotiate in good faith to amend this Agreement so as to eliminate or make unobjectionable any portion that is the subject of any FCC action, while preserving the original bargain of the Parties to the maximum extent possible. If the Parties are unable to negotiate any such amendment, then either Party may terminate this Agreement by notice to the other Party (it being understood that the content of any such amendment shall not be subject to arbitration under Section 7.4). |
Section 8.4 Successors and Assigns
This Agreement shall inure to the benefit of and be binding upon the successors and permitted
assigns of the Parties, provided, that neither Party shall assign its rights or delegate its duties
hereunder (including by operation of law) without the prior written consent, which shall not be
unreasonably withheld, of the other party, except that (i) a party may, upon notice to the other
party and subject to the FCC rules, effect a pro forma assignment (within the meaning of the FCC
rules) of this Agreement, provided that no such assignment shall relieve the assignor of
its obligations hereunder, and (ii) each of the Lessors may assign its rights and delegate its
duties hereunder in connection with an assignment or transfer of control of the FCC Licenses,
provided that the assignee assumes in writing the obligations of Lessors hereunder.
Notwithstanding the foregoing, the spectrum leasing arrangement created hereby shall not be
assigned to any entity that is ineligible or unqualified to enter into a spectrum leasing
arrangement under the applicable rules as set forth in subpart X of Part 1 of Chapter I of Title 47
of the Code Federal Regulations. Lessors shall not consent to any assignment of the spectrum
leasing arrangement created hereby unless such assignment complies with applicable FCC rules and
regulations.
Section 8.5 Relationship of Parties
The relationship between Lessors and Lessee is that of lessor and lessee. Except as otherwise
expressly provided in this Agreement or the FCC rules and policies, Lessee shall not at any time
for any purpose whatsoever be or become the agent of Lessors, and Lessors shall not be responsible
for the acts or omissions of Lessee or its agents by virtue of its status as Lessors hereunder.
Section 8.6 No Third Party Beneficiaries
Nothing herein, expressed or implied, is intended to or shall confer on any person other than
the Parties hereto, and the Persons entitled to indemnification hereunder, any rights, remedies,
obligations or liabilities.
Section 8.7 Notices
All notices and other communications required or permitted to be given hereunder shall be in
writing and shall be deemed to have been duly given if delivered personally or sent by fax,
overnight courier or electronic mail (provided that communications sent by
15
electronic mail are
concurrently sent by fax or overnight courier) in accordance with this Section 8.7), to the
following addresses:
If to Lessors:
[insert name, address, phone, fax and email]
with a required copy (which shall not constitute notice) to:
[insert name, address, phone, fax and email]
If to Lessee:
[insert name, address, phone, fax and email]
with a required copy (which shall not constitute notice) to:
[insert name, address, phone, fax and email]
The burden of proving receipt of notice when notice is transmitted by fax or electronic mail
shall be the responsibility of the Party providing such notice.
Section 8.8 Expenses
Except as expressly provided herein, each Party shall bear its own costs, including any legal
fees and expenses, incurred in connection with the negotiation and preparation of this Agreement
and the consummation of the transactions contemplated hereby.
Section 8.9 Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of
Georgia without application of principles of conflicts of law.
Section 8.10 Specific Performance
The Parties agree that the FCC Licenses and the Leased Spectrum are unique, and that
irreparable damage will occur in the event that either Party fails to perform its obligations
hereunder in accordance with the terms of this Agreement, and that (subject to Article 7) the
Parties shall therefore be entitled to specific performance in such event, in addition to any other
remedy available at law or in equity.
Section 8.11 Force Majeure
Except as otherwise provided in Section 3.3, if by reason of Force Majeure either Party is
unable in whole or in part to perform its obligations hereunder, such Party shall
not be deemed in violation or default of this Agreement during the period of such inability;
provided, that if the non-performing Party has not restored its performance in all material
respects within 180 days, the other Party may terminate this Agreement by
16
notice to the
non-performing Party. “Force Majeure” means any act of God, acts of public enemies, orders
of any Governmental Body which are not the result of a breach of this Agreement, orders of any
military authority, insurrections, riots, terrorism, epidemics, fires, civil disturbances,
explosions, or any other similar cause or event not reasonably within the control of the adversely
affected Party (it being understood that the inability to pay money shall not be considered Force
Majeure). The non-performing Party shall (i) notify the other Party promptly of any Force Majeure
event, (ii) diligently use commercially reasonable efforts to restore its performance, and (iii)
keep the other Party reasonably informed of the steps it is taking to restore its performance.
Section 8.12 Interpretation
As both Parties have participated in the drafting of this Agreement, any ambiguity shall not
be construed against either Party as the drafter. Unless the context of this Agreement clearly
requires otherwise, (a) “or” has the inclusive meaning frequently identified with the phrase
“and/or,” (b) “including” has the inclusive meaning frequently identified with the phrase
“including, but not limited to,” (c) references to “hereof,” “hereunder” or “herein” or words of
similar import relate to this Agreement, (d) when a reference is made in this Agreement to an
Article or a Section, such reference shall be to an Article or a Section of this Agreement unless
otherwise indicated, and (e) the terms defined hereunder shall have the meanings therein specified
for all purposes of this Agreement, applicable to both the singular and plural forms of any of the
terms defined herein. The section headings contained in this Agreement are solely for the purpose
of reference, and shall not affect the meaning or interpretation of this Agreement. All terms and
words used in this Agreement, regardless of the number and gender in which they are used, shall be
deemed and construed to include any other number and any other gender as the context of this
Agreement requires.
Section 8.13 Counterparts
This Agreement may be executed in one or more counterparts, each of which when so executed
shall be an original, but all of which together shall constitute one agreement. Facsimile
signatures shall be deemed original signatures.
[remainder of this page intentionally left blank — signature page follows]
17
[INSERT NAME(S) OF LESSOR ENTITY(IES)]
By:
|
||||
Name: | ||||
Title: |
[INSERT NAME(S) OF LESSEE ENTITY(IES)]
By
|
||||
Name: | ||||
Title: |
18
EXHIBIT A
FCC LICENSES; LEASED SPECTRUM
Part 1
Description of FCC Licenses
Description of FCC Licenses
Call Sign | Licensee | Market Name (No.) | Block | |||
Part 2
Leased Spectrum
Leased Spectrum
Call Sign | BTA | Lessee | Market (by County) | Block | Frequencies (MHz) | Lease Expiration Date | ||||||
Part 3
Lease Term and Payments
Lease Term and Payments
Call Sign | BTA | Market (by County) | Lease Term | Quarterly Lease Payment | ||||
Exhibit 8(ii)
Form of License Purchase Agreement
LICENSE PURCHASE AGREEMENT
by and between
[Cingular Entity]
and
XXXXXX CELLULAR SYSTEMS, INC.
Dated [ ] [__], 2005
TABLE OF CONTENTS
ARTICLE 1 | DEFINITIONS |
1 | ||||||
ARTICLE 2 | AGREEMENTS AND PURCHASE PRICE |
4 | ||||||
2.1 | Sale of the Disaggregated Licenses |
4 | ||||||
2.2 | Purchase Price |
4 | ||||||
ARTICLE 3 | REPRESENTATIONS AND WARRANTIES OF CINGULAR AND SELLER |
4 | ||||||
3.1 | Organization; Qualification |
4 | ||||||
3.2 | Authorization; Execution and Delivery |
4 | ||||||
3.3 | No Conflicts; Consents |
4 | ||||||
3.4 | Claims and Litigation |
4 | ||||||
3.5 | Certain Fees |
5 | ||||||
3.6 | Title to the Disaggregated Licenses |
5 | ||||||
3.7 | Validity of Seller Licenses |
5 | ||||||
3.8 | No Violation, Litigation or Regulatory Action |
5 | ||||||
3.9 | Orders; Contracts; Agreements |
5 | ||||||
3.10 | FCC Matters |
6 | ||||||
3.11 | Microwave Relocation Matters |
6 | ||||||
3.12 | Disclaimer of Other Representations and Warranties |
6 | ||||||
ARTICLE 4 | REPRESENTATIONS OF PURCHASER |
6 | ||||||
4.1 | Organization; Qualification |
6 | ||||||
4.2 | Authorization, Execution and Delivery |
7 | ||||||
4.3 | No Conflicts; Consents |
7 | ||||||
4.4 | Claims and Litigation |
7 | ||||||
4.5 | FCC Authorizations |
7 | ||||||
4.6 | Certain Fees |
7 | ||||||
4.7 | Disclaimer of Other Representations and Warranties |
7 | ||||||
ARTICLE 5 | COVENANTS |
7 | ||||||
5.1 | Governmental Approvals |
7 | ||||||
5.3 | Covenants with Respect to Satisfaction of Closing Conditions |
8 | ||||||
5.4 | Microwave Relocation Costs |
8 | ||||||
ARTICLE 6 | CONFIDENTIALITY |
8 | ||||||
6.1 | Press Releases and Confidentiality |
8 |
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6.2 | Disclosures Required by Law or in Connection With Consents |
8 | ||||||
ARTICLE 7 | CONDITIONS PRECEDENT TO OBLIGATION TO CLOSE |
8 | ||||||
7.1 | Conditions Precedent to Purchaser’s Obligation to Close |
8 | ||||||
7.2 | Conditions Precedent to Seller’s Obligation to Close |
9 | ||||||
7.3 | Waiver of Conditions, Etc. |
10 | ||||||
ARTICLE 8 | CLOSING AND CLOSING DELIVERIES |
10 | ||||||
8.1 | Closing |
10 | ||||||
8.2 | Deliveries at the Closing |
10 | ||||||
ARTICLE 9 | INDEMNIFICATION AND OTHER MATTERS |
11 | ||||||
9.1 | Indemnification by Seller |
11 | ||||||
9.2 | Indemnification by Purchaser |
11 | ||||||
9.3 | Limitation of Liability |
11 | ||||||
9.4 | Exclusive Remedy |
11 | ||||||
9.5 | Survival of Representations and Warranties |
11 | ||||||
9.6 | Payment |
12 | ||||||
ARTICLE 10 | TERMINATION |
12 | ||||||
10.1 | Termination |
12 | ||||||
10.2 | Effect of Termination |
12 | ||||||
ARTICLE 11 | MISCELLANEOUS |
12 | ||||||
11.1 | Additional Instruments of Transfer |
12 | ||||||
11.2 | Notices |
13 | ||||||
11.3 | Expenses |
14 | ||||||
11.4 | Transfer Taxes |
14 | ||||||
11.5 | Governing Law |
14 | ||||||
11.6 | Assignment |
14 | ||||||
11.7 | Amendments; Waivers |
14 | ||||||
11.8 | Entire Agreement |
14 | ||||||
11.9 | Counterparts; Facsimile Signatures |
15 | ||||||
11.10 | Severability |
15 | ||||||
11.11 | Section Headings |
15 | ||||||
11.12 | Interpretation |
15 | ||||||
11.13 | Third Parties |
15 |
- ii -
LICENSE PURCHASE AGREEMENT
THIS LICENSE PURCHASE AGREEMENT (this “Agreement”), dated the [___] day of
[___], 2005, is by and between [Cingular Entity], a [ ], (“Seller”) and
XXXXXX CELLULAR SYSTEMS, INC., an Oklahoma corporation, (“Purchaser”).
ARTICLE 1
The following terms have the following meanings:
1.1 “Affiliate” shall mean, as to any Person, any other Person that, directly or
indirectly, is in control of, is controlled by, or is under common control with, such Person. The
term “control” (including, with correlative meanings, the terms “controlled by” and “under
common control with”), as applied to any Person, means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of such Person, whether
through the ownership of voting securities or other ownership interest, by contract or otherwise.
1.2 “Agreement” shall have the meaning set forth in the preamble.
1.3 “Business Day” shall mean any day other than a Saturday, Sunday, federal holiday
or day on which banking institutions in New York are authorized or obligated by law or executive
order to be closed.
1.4 “Closing” shall have the meaning ascribed to such term in Section 8.1.
1.5 “Closing Date” shall have the meaning ascribed to such term in Section 8.1.
1.6 “Communications Act” shall mean the Communications Act of 1934, as amended.
- 1 -
1.7 “Confidentiality Agreement” shall have the meaning ascribed to such term in Section 8.1.
1.8 “Default” shall mean (a) a breach, default or violation, (b) the occurrence of an event
that with or without the passage of time or the giving of notice, or both, would constitute a
breach, default or violation, or (c) with respect to any contract, the occurrence of an event that
with or without the passage of time or the giving of notice, or both, would give rise to a right of
termination or cancellation or a right to receive damages or a payment of penalties.
1.9 “Disaggregated License” or “Disaggregated Licenses” shall have the meaning set forth in
the Second Recital.
1.10 “FCC” shall mean the Federal Communications Commission.
1.11 “FCC Consent” shall mean the consent of the FCC to the transfer and assignment of the
Disaggregated Licenses in connection with the License Sale, all in accordance with the terms of
this Agreement.
1.13 “Final Order” shall mean an action or decision as to which (a) no request for a stay or
similar request is pending, no stay is in effect, the action or decision has not been vacated,
reversed, set aside, annulled or suspended and any deadline for filing such request that may be
designated by statute or regulation has passed, (b) no petition for rehearing or reconsideration or
application for review is pending and the time for the filing of any such petition or application
has passed, (c) the relevant Governmental Authority does not have the action or decision under
reconsideration on its own motion and the time within which it may effect such reconsideration has
passed, and (d) no appeal is pending or in effect, including other administrative or judicial
review, and any deadline for filing any such appeal that may be designated by Law has passed.
1.14 “Governmental Authority” shall mean a federal, state or local court, legislature,
governmental agency, commission or regulatory or administrative authority or instrumentality.
1.15 “Knowledge” for Sellers shall mean any matter known or that should have been known
to Xxxxx Xxxxxx, Xxxxxxx Xxxxxxxx or Xxxxx Xxxxxxxx, and “Knowledge” for Purchasers shall
mean any matter known or that should have been known to Xxxxxx X. Xxxxxx or Xxxxxx X.
Xxxxxx.
1.16 “Laws” shall mean any federal, state or municipal statute, law (including common law),
code, ordinance, regulation, judgment, decree, injunction, ruling, order or rule of any
Governmental Authority.
1.17 “License Sale” shall have the meaning ascribed to such term in Section 2.1.
1.18 “Lien” shall mean any security interests, liens, pledges, charges, encroachments, defects
of title, options, rights of first refusal, easements or any other encumbrance or restriction on
the use or exercise of any attribute of ownership, including any license restrictions that are
different from those conditions or restrictions routinely applied to licensees and licenses for PCS
wireless communications systems.
1.19 “Material Adverse Effect” shall mean any event, occurrence, fact, condition, change,
development or effect that has or is reasonably likely to have a material adverse effect on the
Disaggregated Licenses; provided, however, that, in no event shall any of the following be deemed
to constitute, nor shall any of the following be taken into account in determining whether there
has been or will be, a Material Adverse Effect: (A) any event, occurrence, fact, condition, change,
development or
- 2 -
effect resulting from (1) compliance by Seller with the terms and conditions of this
Agreement, (2) the announcement or pendency of the transactions contemplated by this Agreement
(including, without limitation, any actions by competitors), (3) changes affecting the wireless
communication industry generally or the economy generally, (4) any action taken by the Purchaser or
its Affiliates relating to the Seller Licenses, (5) an outbreak or escalation of hostilities
involving the United States, the declaration by the United States of a national emergency or war,
or the occurrence of any acts of terrorism; (B) any event, occurrence, fact, condition, change,
development or effect that Seller can reasonably demonstrate Purchaser and its Affiliates have
Knowledge of prior to the date hereof; (C) any changes in legal, regulatory or political
conditions; or (D) any changes in accounting principles generally accepted in the United States
consistently applied (“GAAP”).
1.20 “Organizational Documents” shall mean, with respect to any Person (other than an
individual), the articles or certificate of incorporation, bylaws, certificate of limited
partnership, partnership agreement, certificate of formation, limited liability company operating
agreement, and all other organizational documents of such Person.
1.21 “Person” shall mean any corporation, partnership, limited liability company, joint
venture, business association, other entity, individual or Governmental Authority.
1.22 “Purchase Price” shall have the meaning ascribed to such term in Section 2.2.
1.23 “Required Consents” shall have the meaning ascribed to such term in Section 3.3.
1.24 “Seller Licenses” shall have the meaning set forth in the First Recital.
1.25 “Tax” or “Taxes” shall mean any taxes, duties, assessments, fees, levies, or similar
governmental charges, together with any interest, penalties, and additions to tax, imposed by any
taxing authority, wherever located, including all net income, gross income, gross receipts, net
receipts, sales, use, transfer, franchise, privilege, profits, social security, disability,
withholding, payroll, telecommunications, utility user, unemployment, employment, excise,
severance, property, windfall profits, value added, ad valorem or occupation tax, or any other
similar governmental charge or imposition.
1.26 “Tax Return” shall mean any return, report, statement, schedule, notice, form or other
document or information required to be filed with respect to any Tax (including any attachments
thereto, and any amendment thereof), including any information return, claim for refund, amended
return or declaration of estimated Tax.
1.27 “Transaction Documents” shall mean this Agreement and all other agreements, documents and
instruments executed in connection herewith or required to be executed and/or delivered by the
parties or any one of them in accordance with the provisions of this Agreement.
1.28 “Transactions” shall mean the transactions contemplated by this Agreement and each of the
other Transaction Documents.
- 3 -
ARTICLE 2
2.1 Sale of the Disaggregated Licenses. Subject to the terms and conditions
set forth in this Agreement, at the Closing, Seller shall assign, transfer, deliver and convey to
Purchaser, and Purchaser shall purchase, accept and acquire, all of Seller’s rights, title and
interests in the Disaggregated Licenses, free and clear of all Liens (the “License Sale”).
2.2 Purchase Price. As consideration for the assignment of the
Disaggregated Licenses to Purchaser, at the Closing, Purchaser shall pay to Seller an amount equal
to Six Million Dollars ($6,000,000) (the “Purchase Price”) by wire
transfer of immediately available funds in accordance with written instructions provided by Seller
prior to the Closing.
ARTICLE 3
Seller hereby represents and warrants to the Purchaser that, as of the date hereof:
3.1 Organization; Qualification. Seller is duly formed, validly existing
and in good standing under the Laws of the state of its organization, with full power and authority
to own and operate its properties and to carry on its businesses as are now being conducted, to
execute, deliver and, subject to obtaining the Required Consents, perform its obligations under
this Agreement and the other Transaction Documents and to consummate the Transactions.
3.2 Authorization; Execution and Delivery. The execution, delivery and
performance of the Transaction Documents by Seller have been duly and validly authorized and
approved by all necessary action. This Agreement is, and each of the other Transaction Documents
when executed and delivered will be, a legal, valid and binding obligation of Seller, enforceable
against Seller in accordance with its terms subject to bankruptcy, insolvency, reorganization,
moratorium, or similar Laws affecting creditors’ rights generally and general equitable principles.
3.3 No Conflicts; Consents. Except for (i) such notifications and
applications as required by Section 5.1, and (ii) the FCC Consent, ((i) and (ii) collectively, the
“Required Consents”), neither the execution and delivery of this Agreement or any of the
other Transaction Documents by Seller, nor the performance by it of the transactions contemplated
hereby or thereby will result in a Default or create a Lien under any term, condition or provision
of, or require the consent, authorization or approval of, any Person or Governmental Authority
under, (a) any Law to which any Seller or the Seller Licenses is subject, (b) the Organizational
Documents of Seller or (c) any agreement or instrument to which Seller is a party or bound; except
to the extent such Default or Lien could not reasonably be expected to result in a Material Adverse
Effect.
3.4 Claims and Litigation. As of the date of this Agreement, there is no
pending threat or, to Seller’s Knowledge, threatened claim, legal action,
arbitration, governmental investigation or other legal, administrative or tax proceeding, nor
any order, decree or judgment pending, or, to Seller’s Knowledge, threatened against or relating to
their assets or businesses that would have an adverse effect on the Seller Licenses or the Seller’s
ability to perform its obligations under the Transaction Documents.
- 4 -
3.5 Certain Fees. No finder, broker, agent, financial advisor or other
intermediary has acted on Seller’s behalf in connection with the Transaction Documents or the
Transactions, or is entitled to any payment in connection herewith or therewith which, in either
case, would result in any obligation or liability to Purchaser or any of its Affiliates.
3.6 Title to the Disaggregated Licenses. Seller has good and marketable
title to the Seller Licenses, free and clear of all Liens. Upon delivery to Purchaser on the
Closing Date, Purchaser will hold good and marketable title to the Disaggregated Licenses, subject
to no indebtedness or Liens.
3.7 Validity of Seller Licenses. Seller has performed all of its material
obligations required to have been performed under the Seller Licenses, and no event has occurred or
condition or state of facts exists which constitutes or, after notice or lapse of time or both,
would constitute a breach of, or default under, the Seller Licenses which permits or, after notice
or lapse of time or both, would permit revocation, cancellation, suspension, termination or
material adverse modification of the Seller Licenses, or which might adversely affect in any
material respect the rights of Seller under the Seller Licenses or its ability to consummate the
Transactions. No notice of cancellation or default concerning the Seller Licenses, or of any
event, condition or state of facts described in the preceding clause, has been received by, or is
known to, Seller, and the Seller Licenses are valid, existing and in full force and effect. Seller
has no reason to believe that the Seller Licenses are not likely to be renewed in the ordinary
course. The Seller Licenses (i) were granted on the grant date specified on Exhibit A and
(ii) expire on the expiration date specified on Exhibit A. The file number and grant or
acceptance date for each applicable construction benchmark notification are also specified on
Exhibit A. Seller has submitted to the FCC, on FCC Form 601, a timely notification of its
satisfaction of the five-year construction benchmark applicable to each Seller License held by it
as mandated by 47 C.F.R. § 24.203. The factual assertions of Seller in such Form 601 were, when
filed, true and correct in all material respects.
(a) Seller has complied in all material respects with all Laws which are applicable to the
Seller Licenses or to Seller’s ownership, operation and holding thereof, including, without
limitation, Section 310(b) of the Communications Act and all rules, regulations or policies of the
FCC promulgated thereunder with respect to alien ownership. Seller is qualified under the FCC’s
rules and the Communications Act to hold and convey the Disaggregated Licenses. There are no facts
or circumstances relating to the FCC qualifications of Seller or any of its Affiliates that would
prevent or materially delay the FCC’s grant of any FCC Form 603 (or other appropriate form)
application under FCC rules and the Communications Act.
(b) Other than regulatory proceedings of general applicability, there is no claim, action,
suit, investigation or other proceeding pending or threatened against Seller or its respective
assets, including the Seller Licenses, which, individually or collectively, either would reasonably
be expected to result in the revocation, cancellation, suspension, termination or material adverse
modification of the Seller Licenses, or would reasonably be expected to have a material adverse
effect on (i) the Seller Licenses or
(ii) the ability of Seller to perform its obligations hereunder, nor is Seller aware of any
reasonable basis for any such claim, action, suit, investigation or proceeding.
3.9 Orders; Contracts; Agreements. The execution, delivery and performance
by Seller of the Transaction Documents (with or without the giving of notice, the lapse of time, or
both) will not result in the creation or imposition of any Lien upon the Seller Licenses. Except
for the Required Consents, the Seller Licenses are not subject to (a) any note, indenture,
mortgage, lease, license, franchise, permit or other restriction or obligation to which Seller is a
party or by which Seller or Seller’s assets are bound, or (b) any judgment, order, award or decree
of any foreign, federal or state court or tribunal or any award in
- 5 -
any binding arbitration
proceeding (collectively, a “Court Order”) to which Seller is a party or with respect to
which Seller’s assets are bound. Seller is not subject to, or in default under, any outstanding
Court Order, and there are no contracts or agreements to which Seller or any of its Affiliates is a
party, which (in the case of each of the foregoing clauses) individually or collectively, either
would reasonably be expected to result in the revocation, cancellation, suspension, termination, or
material adverse modification of the Seller Licenses or would reasonably be expected to have an
adverse effect on (i) the Seller Licenses or (ii) the ability of Seller to perform its obligations
hereunder.
3.10 FCC Matters. The Seller Licenses are validly held in Seller’s name.
Seller is the exclusive authorized, legal holder of the Seller Licenses. The Seller Licenses
authorize, without further consent or authorization from the FCC, the construction and operation of
a PCS system in the license areas indicated on Exhibit A. The Seller Licenses are valid
and in full force and effect without condition, except those conditions stated on the Seller
Licenses and except conditions applicable to holders of broadband personal communications licenses
generally. All material reports and other documents required to be filed by Seller and its
Affiliates with the FCC and with state regulatory authorities with respect to the Seller Licenses
have been filed. All such reports and documents are correct in all material respects.
(a) Seller is not a party to any contract, agreement or understanding, oral or written,
providing for the relocation of microwave service providers or the sharing of any costs associated
with any such relocation with respect to the Seller Licenses.
(b) To the knowledge of Seller, no microwave relocation activities, actions or efforts are
planned or in progress with respect to the Seller Licenses.
(c) Seller has timely filed any requisite Prior Coordination Notices with the PCIA Microwave
Clearinghouse as to each radio facility that it has constructed using the spectrum associated with
the Seller Licenses, and Seller has paid in full all of its cost-sharing obligations related to the
use of the spectrum associated with the Seller Licenses of which it has been notified by the PCIA
Microwave Clearinghouse.
3.12 Seller has certified to the FCC, where applicable, that the Seller Licenses have
been built out at least to the minimum extent required by construction deadline(s) imposed by 47
C.F.R. § 24.203 and the FCC has granted or accepted such certifications.
3.13 DISCLAIMER OF OTHER REPRESENTATIONS AND WARRANTIES. EXCEPT AS EXPRESSLY SET
FORTH IN THIS AGREEMENT OR IN ANY OTHER TRANSACTION
DOCUMENT, SELLER MAKES NO REPRESENTATIONS OR WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, AT LAW
OR IN EQUITY, WITH RESPECT TO THE SUBJECT MATTER OF THIS AGREEMENT INCLUDING THE SELLER LICENSES.
ARTICLE 4
Purchaser hereby represents and warrants to Seller that, as of the date hereof:
4.1 Organization; Qualification. Purchaser is duly formed, validly existing
and in good standing under the Laws of the state of its formation, with full power and authority to
own and operate its
- 6 -
respective properties and to carry on its respective businesses as are now
being conducted, to execute, deliver and perform its obligations under this Agreement and the other
Transaction Documents and to consummate the Transactions.
4.2 Authorization, Execution and Delivery. The execution, delivery and
performance of the Transaction Documents by Purchaser have been duly and validly authorized and
approved by all necessary action. This Agreement is, and each of the other Transaction Documents
when executed and delivered will be, a legal, valid and binding obligation of Purchaser,
enforceable against Purchaser in accordance with its terms subject to bankruptcy, insolvency,
reorganization, moratorium, or similar Laws affecting creditors’ rights generally and general
equitable principles.
4.3 No Conflicts; Consents. Except for (i) such notifications and
applications as required by Section 5.1 and (ii) the FCC Consent, neither the execution and
delivery of this Agreement or any of the other Transaction Documents by Purchaser nor the
performance by Purchaser of the transactions contemplated hereby or thereby will result in a
Default or create a Lien under any term, condition or provision of, or require the consent,
authorization or approval of, any Person or Governmental Authority under, (a) any Law to which
Purchaser is subject, (b) any of the Organizational Documents of Purchaser or (c) any agreement or
instrument to which Purchaser is a party or bound.
4.4 Claims and Litigation. As of the date of this Agreement, there is no
pending or, to Purchaser’s Knowledge, threatened claim, legal action, arbitration, governmental
investigation or other legal, administrative or tax proceeding, nor any order, decree or judgment
pending, or, to Purchaser’s Knowledge, threatened against or relating to its assets or business
that would have an adverse effect on its ability to perform its obligations under the Transaction
Documents.
4.5 FCC Authorizations. Purchaser is legally qualified to (A) receive and
hold the Disaggregated Licenses to be acquired hereby and (B) receive any authorization or approval
from any Governmental Authority necessary for it to acquire any such Disaggregated License.
4.6 Certain Fees. No finder, broker, agent, financial advisor or other
intermediary has acted on Purchaser’s behalf in connection with the Transaction Documents or the
transactions contemplated thereby, or is entitled to any payment in connection herewith or
therewith which, in either case, would result in any obligation or liability to Seller or any of
its Affiliates.
4.7 DISCLAIMER OF OTHER REPRESENTATIONS AND WARRANTIES. EXCEPT AS EXPRESSLY
SET FORTH IN THIS AGREEMENT OR IN ANY OTHER TRANSACTION DOCUMENT, PURCHASER MAKES NO
REPRESENTATIONS OR WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, WITH RESPECT TO
THE SUBJECT MATTER OF THIS AGREEMENT.
ARTICLE 5
5.1 Governmental Approvals. Seller and Purchaser shall file with the FCC,
within ten (10) Business Days after the execution of this Agreement, such applications and other
documents as may be necessary or advisable to obtain FCC approval of the Transactions. Seller and
Purchaser each agree to take all necessary actions, including filing all necessary regulatory
notifications (including the requisite notices of consummation to be filed with the FCC) and
seeking all necessary regulatory approvals, in order to secure all necessary approvals of any
Governmental Authority to consummate the transactions
- 7 -
contemplated by this Agreement, and
diligently to pursue the processing of any such applications and filings before the FCC and other
applicable Governmental Authorities.
(a) Each party shall reasonably cooperate with the other party, and will do all
things reasonably necessary to assist the other party, to obtain all consents and approvals of
Persons required to consummate the Transactions, as promptly as practicable, including the
furnishing of financial and other information specifically with respect to it or its Affiliates
reasonably required by the Person or Governmental Authority whose consent or approval is being
sought.
(b) Each party shall use commercially reasonable efforts to satisfy, or assist the
other party (as appropriate) in satisfying, prior to the Closing Date, as applicable, the closing
conditions set forth in this Agreement.
5.3 [Reserved]
Seller shall be responsible for and pay all costs, expenses, liabilities and obligations for
microwave relocation triggered by Seller’s operations on the spectrum encompassed within the Seller
Licenses prior to the Closing. After the Closing, except as set forth in the preceding sentence,
Purchaser shall be responsible for microwave relocation related to the Disaggregated Licenses in
accordance with the rules and regulations of the FCC.
ARTICLE 6
6.1 Press Releases and Confidentiality. Subject to the provisions of
Section 6.2, no press release or public disclosure or disclosure to any third party, either written
or oral, of the existence or terms of this Agreement shall be made by a party
without the prior written consent of the other party in each instance, and each party shall
each furnish to the other party advance copies of any release which it proposes to make public
concerning this Agreement or the transactions contemplated hereby and the date upon which such
party proposes to make such press release.
6.2 Disclosures Required by Law or in Connection With Consents. This
Article 6 shall not, however, be construed to prohibit either party from making any disclosures to
any Governmental Authority that it is required to make by Law or from filing this Agreement with,
or disclosing the terms of this Agreement to, any Governmental Authority (including the FCC) or
Person in connection with obtaining the consent or approval of such Governmental Authority or
Person that the disclosing party is obligated to seek pursuant to the terms of this Agreement;
provided that the disclosing party shall satisfy those requirements provided in the Confidentiality
Agreement for the continuing protection of confidential information required to be disclosed.
ARTICLE 7
7.1 Conditions Precedent to Purchaser’s Obligation to Close. The obligation
of Purchaser to consummate the Transactions contemplated by this Agreement shall be conditioned
upon the satisfaction
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or fulfillment, at or prior to the Closing, of the following conditions,
unless waived in writing by Purchaser:
(d) Closing Deliveries. Seller shall have delivered to Purchaser the
closing deliveries required in Section 8.2.
7.2 Conditions Precedent to Seller’s Obligation to Close. The obligation
of Seller to consummate the Transactions contemplated by this Agreement shall be conditioned upon
the satisfaction or fulfillment, at or prior to the Closing, of the following conditions, unless
waived in writing by Seller:
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(d) Closing Deliveries. Purchaser shall have delivered to Seller the
closing deliveries required in Section 8.2.
7.3 Waiver of Conditions, Etc. Notwithstanding anything to the contrary
contained in this Article 7, either party to this Agreement may, in its sole discretion, waive in a
signed writing any condition to its obligation to consummate the transactions contemplated by this
Agreement. No party to this Agreement may rely on the failure of any condition set forth in this
Article 7 to be satisfied if the failure of such condition to be satisfied is the result of the
breach of this Agreement by such party or, in the case of a breach of the condition set forth in
Sections 7.1(e) or 7.2(e), if such party shall not have used commercially reasonable efforts to
prevent the entry of such judgment, injunction, restraining order or decree and to appeal as
expeditiously as possible any such judgment, injunction, restraining order or decree that may be
entered.
ARTICLE 8
8.1 Closing. Subject to the terms and conditions hereof, the closing of the
transactions contemplated by this Agreement (the “Closing”) shall take place at the offices
of Xxxxxx & Bird LLP, 0000 Xxxx Xxxxxxxxx Xxxxxx, Xxxxxxx, Xxxxxxx 00000, no later than five (5)
Business Days following the satisfaction of the conditions described in Section 7 (the “Closing
Date”).
(a) Subject to fulfillment or waiver of the conditions set forth in Section 7.1, at
the Closing, Seller shall deliver the following:
(i) The Seller Bring-Down Certificate, dated the date of the Closing,
certifying to the fulfillment of the conditions set forth in Section 7.1(a);
(ii) An instrument of assignment of the Disaggregated Licenses, substantially
in the form of Exhibit 8.2(a)(ii) hereto (the “Assignment”), duly executed
on behalf of Seller; and
(iii) Copies of any Required Consents received by Seller.
(b) Subject to fulfillment or waiver of the conditions set forth in Section 7.2, at
the Closing, Purchaser shall deliver the following:
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(i) The Purchaser Bring-Down Certificate, dated the date of the Closing, certifying to
the fulfillment of the conditions set forth in Section 7.2(a);
(ii) An instrument of assignment of the Disaggregated Licenses, substantially in the
form of Exhibit 8.2(a)(ii) hereto, duly executed on behalf of Purchaser;
(iii) Copies of any Required Consents received by Purchaser; and
(iv) The Purchase Price in accordance with Section 2.2.
ARTICLE 9
9.1 Indemnification by Seller. Seller shall indemnify and hold harmless
Purchaser and its Affiliates, and the shareholders, directors, officers, employees and agents of
any and all of the foregoing (the “Purchaser Indemnified Persons”), from and against any
and all losses incurred or suffered by any Purchaser Indemnified Person arising out of, in
connection with or relating to (i) any breach of any of the representations or warranties made by
Seller in this Agreement or (ii) any failure by Seller to perform any of its covenants or
agreements contained in this Agreement, except, with respect to clauses (i) and (ii), to the extent
such breach or failure, as applicable, was caused by a breach of this Agreement by Purchaser.
9.2 Indemnification by Purchaser. Purchaser shall indemnify and hold
harmless Seller and its Affiliates, and the shareholders, directors, officers, employees and agents
of any and all of the foregoing (the “Seller Indemnified Persons”), from
and against any and all losses incurred or suffered by any Seller Indemnified Person arising
out of, in connection with or relating to (i) any breach of any of the representations or
warranties made by Purchaser in this Agreement, or (ii) any failure by Purchaser to perform any of
its covenants or agreements contained in this Agreement, except with respect to clauses (i) and
(ii), to the extent such breach or failure, as applicable, was caused by a breach of this Agreement
by Seller.
9.3 Limitation of Liability. The aggregate liability of either party under
Sections 9.1 or 9.2, as applicable, shall not exceed One Million Dollars ($1,000,000),
provided, however, the foregoing limitation shall not apply to any fraud or willful
misconduct. Additionally, in no event shall either party be liable to the other party for
indirect, special, consequential or punitive damages arising out of the party’s breach of this
Agreement, even if advised at the time of breach of the possibility of such damages.
9.4 Exclusive Remedy. Except with respect to fraud or willful misconduct or
claims for injunctive or other equitable relief, the indemnification rights contained in this
Article 9 shall constitute the sole and exclusive remedies of the parties hereunder, and shall
supersede and displace all other rights that either party may have under Law, with respect to any
breach of any of the representations, warranties, covenants or agreements made by the parties in
this Agreement.
9.5 Survival of Representations and Warranties. All representations,
warranties, agreements and covenants made by the parties in this Agreement or in the Seller
Bring-Down Certificate or Purchaser Bring-Down Certificate shall survive for a period lasting
eighteen (18) months after Closing. Notice of any claim by a party seeking indemnification
pursuant to Article 9 must be submitted to the other party prior to or at the expiration of the
applicable survival period, along with a reasonably detailed written explanation of the specifics
of the breach giving rise to the claim. In the case of any notice of a claim submitted within such
time period, the right of the party seeking indemnification with respect to such
- 11 -
claim shall not be
dependent on the claim being resolved or the losses being incurred within such time period.
9.6 Payment. Upon a determination of liability under this Article 9, the
appropriate party shall pay the indemnified Person the amount so determined within ten (10)
business days after the date of such determination. If there should be a dispute as to the amount
or manner of determination of any indemnity obligation owed under this Agreement, the party from
which indemnification is due shall nevertheless pay when due such portion, if any, of the
obligation that is not subject to dispute.
ARTICLE 10
10.1 Termination. This Agreement may be terminated and the transactions
contemplated hereby may be abandoned, by written notice given to the other party, at any time prior
to the Closing:
(i) by mutual written consent of the parties;
(ii) by either party, if any court of competent jurisdiction in the United States or
other United States Governmental Authority shall have issued an order, decree or ruling or taken
any other action permanently restraining, enjoining or otherwise prohibiting the transactions
contemplated hereby and such order, decree, ruling or other action shall have become final and
nonappealable;
(iii) by either Seller or Purchaser if the Closing shall not have occurred on or
before [insert date [12] months after date of execution], unless the failure to consummate the
Closing shall be due to the failure of the party seeking to terminate this Agreement to perform in
any material respects its obligations under this Agreement required to be performed by it at or
prior to the Closing;
(iv) by either Seller or Purchaser upon written notice to the other party, if such
other party (the “Breaching Party”) has (a) breached its representations, warranties,
covenants or other agreements contained in this Agreement and such breach (or breaches taken in the
aggregate), would prevent in a material respect the Breaching Party from performing, or have a
material adverse effect on the Breaching Party’s ability to perform, its obligations under this
Agreement, and (b) failed to cure such breach within thirty (30) days from the date of the
Breaching Party’s receipt of the notice specified above; and such terminating party and its
Affiliates are not in breach or default in any material respect of their respective obligations,
representations or warranties under the Transaction Documents.
10.2 Effect of Termination. In the event of termination of this Agreement
by either or both of the parties for any reason, prompt written notice thereof shall forthwith be
given to the other party and this Agreement shall terminate and the transactions contemplated
hereby and by the other Transaction Documents shall be abandoned without further action by either
of the parties hereto, but subject to and without limiting any of the rights of the parties
specified herein in the event a party is in default or breach in any material respect of its
obligations, representations or warranties under this Agreement or any of the other Transaction
Documents. The provisions of Articles 6, 9 and 11 and this Section 10.2 shall survive the
expiration or termination of this Agreement.
11.1 Additional Instruments of Transfer. From time to time after the
Closing, each party shall, if requested by the other party, make, execute and deliver such
additional assignments, bills of sale, deeds
- 12 -
and other instruments of transfer, as may be
reasonably necessary or proper to effectuate the intent of the Transactions; and shall cooperate
with the provision of notices as required to the FCC to secure the initial issuance of licenses
representing the Disaggregated Licenses.
11.2 Notices. All notices required or permitted to be given hereunder shall
be in writing and shall be deemed to have been duly given if sent by personal delivery, facsimile,
recognized overnight delivery service, or registered or certified first class mail, return receipt
requested, postage prepaid, to the following addresses:
If to Purchaser:
Xxxxxx Cellular Systems, Inc. | ||
00000 Xxxxxxxx Xxx | ||
Xxxxxxxx Xxxx, XX 00000 | ||
Attention: General Counsel | ||
Facsimile: (000) 000-0000 | ||
with a required copy (which shall not constitute notice) to: | ||
Xxxxxxxxx Xxxxxx Xxxxxx, LLP | ||
0000 X Xxxxxx, XX | ||
Xxxxx 000 | ||
Xxxxxxxxxx, X.X. 00000 | ||
Attention: Xxxxxxxx X. Xxxxxxx | ||
Facsimile: (000) 000-0000 |
If to Seller:
[Cingular Entity] | ||
0000 Xxxxxxxxx Xxxxxxxxx, Xxxxx 0000 | ||
Xxxxxxx, XX 00000 | ||
Attention: General Counsel | ||
Facsimile: (000) 000-0000 | ||
Telephone: (000) 000-0000 | ||
with a required copy (which shall not constitute notice) to: | ||
Xxxxxx & Bird LLP | ||
0000 Xxxx Xxxxxxxxx Xxxxxx | ||
Xxxxxxx, XX 00000-0000 | ||
Attention: Xxxxxx X. Xxxxx | ||
Facsimile: (000) 000-0000 | ||
Telephone: (000) 000-0000 |
Notices delivered personally shall be effective upon delivery against receipt. Notices transmitted
by facsimile shall be effective when received, provided that the burden of proving notice when
notice is transmitted by facsimile shall be the responsibility of the party providing such notice.
Notices delivered by overnight delivery service shall be effective when received. Notices
delivered by registered or certified mail shall be effective on the date set forth on the receipt
of registered or certified mail.
- 13 -
11.3 Expenses. Each party shall bear its own expenses and costs incurred in
connection with the preparation of this Agreement and the consummation of the transactions
contemplated hereby.
11.4 Transfer Taxes. All sales, use, transfer, recording, documentary,
stamp, and other similar non-income taxes, if any, imposed solely and directly by reason of the
License Sale (“Transfer Taxes”) shall be born equally by Seller and Purchaser. Seller and
Purchaser shall cooperate to file all necessary Tax Returns and other documents required to be
filed
with respect to all such Transfer Taxes. The Seller and Purchaser will cooperate to the
extent reasonably necessary to make or cause to be made such Tax Returns or filings as may be
required.
11.5 Governing Law. THIS AGREEMENT SHALL BE GOVERNED, CONSTRUED AND
ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE (WITHOUT REGARD TO THE CHOICE OF LAW
PROVISIONS THEREOF). THE PARTIES HERETO HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF
ANY FEDERAL OR STATE COURT LOCATED WITHIN THE STATE OF DELAWARE FOR ANY ACTION OR PROCEEDING IN
RESPECT OF ANY CLAIM ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY, AND AGREE THAT SUCH COURTS SHALL BE AN APPROPRIATE FORUM WITH RESPECT TO ANY SUCH ACTION OR
PROCEEDING. THE PARTIES HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY OBJECTION WHICH THEY MAY NOW OR HEREAFTER HAVE TO THE PERSONAL JURISDICTION OF SUCH COURT,
THE LAYING OF VENUE OF ANY SUCH DISPUTE BROUGHT IN SUCH COURT OR ANY DEFENSE OF INCONVENIENT FORUM
FOR THE MAINTENANCE OF SUCH DISPUTE. EACH OF THE PARTIES HERETO AGREES THAT A JUDGMENT IN ANY SUCH
DISPUTE MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW.
11.6 Assignment. Neither party hereto may assign this Agreement without the
prior written consent of the other party hereto, provided, however, that Seller may, without the
consent of Purchaser, assign this Agreement to any Affiliate of Seller, provided that none of the
assignments described in this sentence shall relieve the assignor of its obligations hereunder,
provided, further, that Purchaser may, without the consent of Seller, assign this Agreement to any
Affiliate of Purchaser, provided that such assignment will not substantially delay the processing
of the applications required by Section 5.1 hereof and provided further that no such assignment
shall relieve Purchaser of any of its obligations hereunder. This Agreement shall be binding upon
and shall inure to the benefit of the parties hereto and their respective successors and permitted
assigns.
11.7 Amendments; Waivers. No alteration, modification or change of this
Agreement shall be valid except by an agreement in writing executed by the parties hereto. No
waiver of any term, condition, obligation or requirement hereunder shall be effective unless in
writing signed by a duly authorized officer of the party issuing the waiver. Except as otherwise
expressly set forth herein, no failure or delay by either party hereto in exercising any right,
power or privilege hereunder (and no course of dealing between the parties) shall operate as a
waiver of any such right, power or privilege. No waiver of any default on any one occasion shall
constitute a waiver of any subsequent or other default. No single or partial exercise of any such
right, power or privilege shall preclude the further or full exercise thereof.
11.8 Entire Agreement. This Agreement and the other Transaction Documents,
including the Exhibits hereto and thereto, collectively represent the entire understanding and
agreement of the parties with respect to the subject matter of this Agreement. This Agreement and
the other Transaction Documents supersede all prior or contemporaneous written or oral
representations, warranties, covenants, understandings, agreements, discussions, or negotiations
between the parties with respect to the subject
- 14 -
matter hereof. Each party hereby represents,
acknowledges and agrees that it has not relied on any representation, warranty, covenant,
understanding, agreement, written or oral, discussion, or negotiation not expressly contained
herein or in the other Transaction Documents in entering into this Agreement. Each party hereby
represents, acknowledges and agrees that this Agreement and the other Transaction Documents are
independent of, and not in any way conditioned on,
connected to, or to be construed with any other prior or contemporaneous agreement or
arrangement, written or oral, between the parties.
11.9 Counterparts; Facsimile Signatures. This Agreement may be executed in
any number of counterparts, each of which when so executed shall be an original, but all of which
together shall constitute one agreement. Facsimile signatures shall be deemed original signatures.
11.10 Severability. If any provision of this Agreement or the application
thereof to any Person or circumstance shall be invalid or unenforceable to any extent, the
remainder of this Agreement and the application of such provision to other Persons or circumstances
shall not be affected thereby and shall be enforced to the greatest extent permitted by Law and
this Agreement.
11.11 Section Headings. The section headings contained in this Agreement
are solely for the purpose of reference, are not part of the agreement of the parties and shall not
in any way affect the meaning or interpretation of this Agreement.
11.12 Interpretation. As both parties have participated in the drafting of
this Agreement, any ambiguity shall not be construed against either party as the drafter. Unless
the context of this Agreement clearly requires otherwise, (a) “or” has the inclusive meaning
frequently identified with the phrase “and/or,” (b) “including” has the inclusive meaning
frequently identified with the phrase “including, but not limited to” and (c) references to
“hereof,” “hereunder” or “herein” or words of similar import relate to this Agreement.
11.13 Third Parties. Nothing herein, expressed or implied, is intended to
or shall confer on any Person other than the parties hereto any rights, remedies, obligations or
Liabilities under or by reason of this Agreement, except as expressly set forth in Article 9 with
respect to Purchaser Indemnified Parties and Seller Indemnified Parties.
[Signature Page Follows]
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[CINGULAR ENTITY] | ||||
By: | ||||
Name: | ||||
Title: | ||||
XXXXXX CELLULAR SYSTEMS, INC. | ||||
By: | ||||
Name: Xxxxxx X. Xxxxxx, Vice President |
[SIGNATURE PAGE TO LICENSE PURCHASE AGREEMENT]
EXHIBIT A
SELLER LICENSES
FCC | Channel | Grant | Expiration | |||||||
Licensee | Call Sign | Market | Block | Date | Date | |||||
CONSTRUCTION BENCHMARKS
5 yr. | Date NT | 10 yr. | Date NT | ULS File | ||||||||
FCC Call Sign | Deadline | Filed (granted) | ULS File No. | Deadline | Filed (granted) | No. | ||||||
Underlying | ||||||||||
FCC | Channel | |||||||||
Licensee | Call Sign | Market | Block | Frequencies | County(ies) | |||||
EXHIBIT 8.2(a)(ii)
Instrument of Assignment
INSTRUMENT OF ASSIGNMENT dated this [___] day of [ ], 2005, by [Cingular Entity], a
[ ], (“Seller”), and Xxxxxx Cellular Systems, Inc., an Oklahoma Corporation,
(“Purchaser”). Capitalized terms used herein without definition shall have the respective
meanings assigned to them in the Purchase Agreement (as defined below).
[Signature Page Follows]
[CINGULAR ENTITY] | ||||
By: | ||||
Name: | ||||
Title: | ||||
[XXXXXX ENTITY] | ||||
By: | ||||
Name: | ||||
Title: | ||||
Exhibit 8(iii)
Form of Spectrum Manager Lease Agreement
EXHIBIT 8(iii) TO ADDENDUM TO GSM OPERATING AGREEMENTS
FORM OF
SHORT-TERM SPECTRUM MANAGER
LEASE AGREEMENT
SHORT-TERM SPECTRUM MANAGER
LEASE AGREEMENT
This Spectrum Manager Lease Agreement (“Lease Agreement”) is entered into as of this
___day of ___, 2005 (“Effective Date”), between [NAME OF LESSOR ENTITY], a
___ located at (“Lessor”), and [NAME OF LESSEE
ENTITY], a located at (“Lessee”)
(collectively the “Parties” or, individually, a “Party”).
(i) design and construct a System, including determining the number and location of
radio facilities to be constructed, and the identification and the selection of sites in the
Market or Markets;
(ii) identify, obtain and maintain, in its own name, full legal right to all real
property necessary to deploy the System;
(iii) obtain and maintain, in its own name, appropriate zoning approval for the System;
(iv) purchase, in its own name, all equipment as may be necessary or appropriate for
the construction and testing of the System;
(v) provide administrative, legal, accounting, billing, credit, collection, insurance,
purchasing, clerical and such other general services as may be necessary or appropriate for
the construction, testing, maintenance and operation of the System;
(vi) provide operational, engineering, maintenance, repair and such other technical
services as may be necessary for the construction, testing, maintenance and operation of the
System;
(vii) control access to and from the System facilities; provided, however, that in no
event shall Lessor be restricted from unfettered access to the System facilities;
(viii) conduct and manage the affairs of the System, including the making of all
ordinary business decisions in furtherance of the day-to-day operation of the System;
(ix) determine and carry out all policy decisions relating to the facilities of the
System, subject to such oversight by Lessor as is reasonably necessary to ensure compliance
with applicable technical and service rules under the Communications Laws;
2
(x) hire, supervise, and dismiss all personnel employed in the operation of the System
(other than employees hired by Lessor for the purpose of carrying out Lessor’s duties with
respect to the FCC Licenses and the Leased Spectrum);
(xi) undertake all financial obligations, including payment of expenses arising out of
the operation of the System, and securing all financing for the construction and operation
of the System;
(xii) receive all monies and profits from the operation of the System;
(xiii) if applicable, obtain OCNs, ACNA, NXX codes and federal identification numbers,
negotiate wireless interconnection agreements with incumbent local exchange carriers, and
secure requisite approvals/certifications from any required state public utility commission
(“PUC”) to the extent necessitated by the proposed operations;
(xiv) make determinations as to the scope, marketing, and other terms and conditions of
services to be provided to Lessee’s customers on the System; and
(xv) take all other actions that it deems necessary or desirable to construct, test,
maintain, and operate the System or otherwise carry out any of the foregoing items.
(i) cooperate with and aid Lessor with whatever actions Lessor is required to take, if
any, in order to make any required notifications, or to obtain the approvals or consents of
any governmental body necessary for the Lessee to construct and operate the System;
(ii) operate the System consistent with the Communications Laws or any other applicable
law, including but not limited to all Federal Aviation Administration (“FAA”) and FCC Tower
Registration filing requirements for all structures under FCC Rule Part 17; NEPA regulations
(FCC Rule Part 1.1307-11); this Lease Agreement; and the terms and conditions of the FCC
Licenses (including eligibility, basic and character qualifications requirements, and
foreign ownership and use restrictions); and
(iii) to satisfy all of the requirements imposed on lessees under spectrum manager
leasing arrangements under Section 1.9020 of the FCC’s Rules;
(iv) comply with any and all applicable requirements arising under the Communications
Laws, including, but not limited to those relating to: the Communications
3
Assistance for Law
Enforcement Act (CALEA), 47 U.S.C. §§ 229, 1001 et seq., 47 C.F.R. Part 64, Subparts V and
W; Equal Employment Opportunity (EEO), 47 C.F.R. §§ 1.815, 22.321; Telecommunications Relay
Service (TRS), 47 U.S.C. § 225, 47 C.F.R. Part 64, Subpart F; North American Numbering Plan
(NANP), 47 U.S.C. § 251(e), 47 C.F.R. Part 52; and universal service funds, 47 U.S.C. § 254,
47 C.F.R. §§ 54.706, 54.709;
(v) expressly to satisfy the FCC’s E-911 requirements set forth in 47 C.F.R. § 20.18 to
the extent that they are applicable to the Lessee’s provision, or would be applicable to the
Lessor’s provision, of CMRS services on the Leased Spectrum, as though it was solely
responsible for such compliance; and
(vi) to take whatever actions are reasonably necessary to resolve any
interference-related matters arising from operation of any system it may construct and
operate on the Leased Spectrum, including any conflicts between Lessee and any other
licensed spectrum user.
4
the System comply with the Communications Laws, this Lease Agreement, and the
terms and conditions of the FCC Licenses (including conformance with applicable license
eligibility, basic qualifications, character qualifications and technical requirements, and use and
foreign ownership restrictions). As such, Lessor may do the following:
(i) monitor and oversee Lessee’s use of the Spectrum Usage Rights, as necessary, to
ensure Lessee operates the System in conformance with technical and use rules applicable to
the FCC Licenses;
(ii) take all actions that are reasonably necessary to ensure that Lessee’s operation
of the System complies with FCC rules and regulations intended to prevent harmful
interference to any other licensed spectrum user;
(iii) take whatever actions are reasonably necessary to resolve any
interference-related matters arising from operation of the System, including any conflicts
between Lessee and any other licensed spectrum user;
(iv) make determinations as to whether particular circumstances give rise to the
requirement of filing an application or notification, and if such, with Lessee’s
cooperation, make such filing or notification;
(v) take whatever actions are reasonably necessary to ensure that all facilities
comprising the System comply with all applicable radio frequency (RF) safety rules for human
exposure promulgated by the FCC or any other governmental body; and
(vi) interface with the FCC on matters related to the FCC Licenses.
(i) maintain the FCC Licenses in full force and effect; and
(ii) comply with applicable requirements arising under the Communications Act,
including but not limited to its E-911 obligations arising under 47 C.F.R. § 20.18.
5
have a material impact or result in a material change to the ownership or operation of
the FCC License or Lessee’s Spectrum Usage Rights under this Lease Agreement. In the event that
the FCC or other Governmental Body initiates an investigation or inquiry concerning Lessor or
Lessee in connection with this Lease Agreement or any of the performances rendered hereunder,
Lessor agrees to cooperate with Lessee, the FCC, or other Governmental Body.
Notwithstanding any other provision of this Lease Agreement, during the Term hereof, Lessor
will remain in de jure and de facto control of the Disaggregated Licenses and the Leased Spectrum
under the Communications Act. This Lease Agreement (i) does not and will not vest in Lessee, or
constitute, create or have the effect of constituting or creating, de facto or de jure control,
direct or indirect, over Lessor or the Disaggregated Licenses, which ownership or control remains
exclusively and at all times in the Lessor and (ii) does not and will not constitute the transfer,
assignment, or disposition in any manner, voluntary or involuntary, directly or indirectly, of the
Disaggregated Licenses or the transfer of control of the Lessor within the meaning of Section
310(d) of the Communications Act for spectrum leasing purposes. During the Term, Lessee will not
take any action inconsistent with or contrary to the Lessor’s de jure and de facto control, as
those terms are construed by the FCC, over the Leased Spectrum and the Disaggregated Licenses.
During the Term, Lessee will not hold itself out to the public as the holder of the FCC Licenses or
the Disaggregated Licenses.
6
about Lessee’s transmission facilities; and (iii) any safety, interference or
compliance related problems which have arisen as a result of Lessee’s operation of the System or
use of the Leased Spectrum. Lessor may also request confirmation from Lessee that, to the best of
Lessee’s knowledge, (i) Lessee is not aware of any interference related problems on the System;
(ii) Lessee is not aware of any RF safety related problems with respect to its operation on the
System; (iii) Lessee remains qualified to be a
lessee of the Leased Spectrum; and (iv) Lessee’s operations on the System comply with the
provisions of this Lease Agreement and the Communications Laws.
7
compliance filing. Upon such notification, Lessor shall have the exclusive right to
decide whether any such compliance filing is required and, if required, the substance of such
filing.
7. Term.
The rights and obligations created under this Lease Agreement will become effective on the
date (“Lease Commencement Date”) which is ten (10) days following the filing of the initial
FCC Lease Agreement Notification or such earlier date as is permitted under FCC Rules in the event
the FCC allows expedited processing of the FCC Lease Agreement Notification. This Lease Agreement
will continue in full force and effect, unless earlier terminated in accordance with the provisions
set forth herein, for one year (the “Initial Term”)
8. Payments.
Notwithstanding anything contained herein to the contrary, the Parties agree that the
following FCC rule provisions will apply:
(a) Lessee must comply at all times with applicable rules set forth in the Communications Laws
and any other requirement of law. This Lease Agreement may be revoked, cancelled or terminated by
Lessor or by the FCC if Lessee fails to comply with the applicable requirements;
* Confidential information has been omitted and filed separately with the SEC.
8
(b) If the FCC License is revoked, cancelled, terminated or otherwise ceases to be in effect,
Lessee has no continuing authority or right to use the Leased Spectrum covered by that FCC License
unless otherwise authorized by the FCC;
(c) The Lease Agreement is not an assignment, sale or transfer of any FCC License itself;
(d) The Lease Agreement will not be assigned to any entity that is ineligible or unqualified
to enter into a spectrum leasing arrangement under the Communications Laws; and
(e) Lessor will not consent to an assignment of this Lease Agreement unless such assignment
complies with applicable FCC rules and regulations.
(a) Each of the Parties hereto represents, warrants and covenants, as applicable, to the
other, with respect to facts and issues relating to it, that:
(i) it is duly organized and in good standing under the laws of the jurisdiction of its
organization;
(ii) it has full power and authority to carry out all of the transactions contemplated
hereby;
(iii) it shall comply with all applicable laws, including the Communications Laws and
state, local and federal rules and regulations, governing the business, ownership,
management and operations under this Lease Agreement; and
(iv) all requisite resolutions and other authorizations necessary for its execution,
delivery, performance and satisfaction of this Lease Agreement have been duly adopted and
complied with; and
(v) this Lease Agreement is its valid and binding agreement, enforceable against it in
accordance with the terms of this Lease Agreement.
(b) Lessor further represents and warrants to Lessee as follows:
(i) Lessor is the exclusive holder of each of the FCC Licenses, free and clear of all
liens, and no other person has any right, title or interest in or to any of the FCC
Licenses. The FCC Licenses have been granted to Lessor by Final Order and are in full force
and effect. “Final Order” means action by the FCC or its staff acting under
delegated authority as to which a) no request for stay by the FCC, as applicable, of the
action is pending, no such stay is in effect, and, if any deadline for filing any such
request is designated by statute or regulation, such deadline has passed; b) no timely
petition for review, rehearing or reconsideration of the action is pending before the FCC,
and the time for filing any such petition has passed; c) the FCC does not have the action
under reconsideration on its own motion and the time for such reconsideration has passed;
and d) no appeal to a court, or request for stay by a court, of the
9
FCC’s action, as
applicable, is pending or in effect, and, if any deadline for filing any such appeal or
request is designated by statute or rule, it has passed.
(ii) Except for proceedings affecting the wireless industry generally, there is not
pending or, to the knowledge of Lessor, threatened against Lessor or any of the FCC
Licenses, nor does Lessor know of any basis for, any application, action, formal complaint,
claim, investigation, suit, notice of violation, petition, objection or other pleading, or
any proceeding before the FCC or any other governmental body, against Lessor or any of the
FCC Licenses, which questions or contests the validity of, or seeks the revocation,
cancellation, forfeiture, non-renewal or suspension of, any of the FCC Licenses, or which
seeks the imposition of any modification or amendment thereof, or the payment of a material
fine, sanction, penalty, damages or contribution in connection with its use.
(iii) All material documents required to be filed at any time by Lessor with the FCC or
any other governmental body pursuant to FCC rules and policies with respect to each of the
FCC Licenses have been timely filed or the time period for such filing has not lapsed,
except where the failure to timely file or make such filing would not be material. All of
such filings are complete and correct in all material respects. None of the FCC Licenses is
subject to any conditions other than those appearing on its face and those imposed by FCC
rules and policies. All amounts owed to the FCC in respect of each of the FCC Licenses have
been timely paid and, as of the date hereof, no further amounts are due to the FCC in
respect of any of the FCC Licenses.
(iv) Lessor is in compliance in all material respects with all laws, rules and
regulations applicable to the FCC Licenses, and has complied in all material respects with
the terms and conditions of the FCC Licenses. Lessor has not received written notice of any
complaint or order filed alleging any material non-compliance with respect to any such laws,
rules or regulations, in each case to the extent applicable to each of the FCC Licenses.
(v) There are no microwave relocation agreements in respect of the Leased Spectrum to
which Lessor or any Affiliate is a party, and with respect to which either (x) Lessor has
not fully completed performance or (y) the incumbent microwave licensee has not filed with
the FCC (and provided to Lessor the ULS file numbers of) Applications or Notifications on
Form 601 to relinquish its rights to the microwave path(s) that are the subject of such
agreement. All cost sharing obligations (within the meaning of 47 C.F.R. § 24.239 et seq.)
resulting from Lessor’s operations pursuant to the FCC Licenses of which Lessor has been
notified by the Clearinghouse have been paid.
(c) Lessee further represents and warrants to Lessor that it possesses all the requisite
qualifications (including those relating to ownership and character) under the Communications Laws
to be a lessee as contemplated in this Lease Agreement.
11. Indemnification.
10
contained herein, then Lessee shall indemnify Lessor and its affiliates and their
respective directors, officers, agents, successors and assigns from and against the entirety of any
loss, cost, obligation, liability, settlement, payment, award, judgment, fine, penalty, damage,
expense, or other charge (collectively, “Losses”) or reasonable fees or expenses incurred
in connection with investigating, defending or asserting any claim, action, suit or proceeding
incident to any matter indemnified against under Article 11 hereunder (including, without
limitation, court filing fees, court costs, arbitration fees or costs, witness fees, and reasonable
fees and disbursements of legal counsel, investigators, expert witnesses, consultants, accountants
and other professionals) (collectively, “Expenses”), any such person may incur prior to,
through and after the date of the claim for indemnification resulting from, arising out of,
relating to, in the nature of, or caused by the breach (or the alleged breach), or such claim,
action, suit or proceeding.
After the giving of any Claim Notice pursuant hereto, the amount of indemnification to which
an Indemnified Party shall be entitled under this Article 11 shall be determined: (i) by the
written agreement between the Indemnified Party and the Indemnitor; or (ii) by a final judgment or
decree of any court of competent jurisdiction. The judgment or decree of a court shall be deemed
final when the time for appeal, if any, shall have expired and no appeal shall have been taken or
when all appeals taken have been finally determined. The Parties shall proceed in the manner and
subject to the limitations in this Article 11 with respect to all matters covered by Sections 11(a)
and 11(b). The Indemnified Party shall have the burden of proof in establishing the amount of
Losses and Expenses suffered by it.
11
12. Termination.
(i) at the expiration of the Term;
(ii) on a date mutually agreed to in a writing executed by Lessor and Lessee;
(iii) on the effective date set forth in any order by the FCC (or other governmental
body) revoking, canceling or otherwise terminating or failing to renew the FCC License or
this Lease Agreement;
(iv) if all or part of the Leased Spectrum is lawfully reclaimed or taken by the FCC or
any other governmental body, then this Lease Agreement will terminate as of the date when
title to the Lease Spectrum vests in the FCC or such governmental body; or
(v) upon consummation of the assignment of the Disaggregated Licenses pursuant to the
License Purchase Agreement.
In the event of any such automatic termination, any Lease Agreement Payment will be
prorated accordingly.
12
(i) if Lessor provides written notice to Lessee that Lessee has materially
breached its representations, warranties, covenants, obligations or other agreements
contained in this Lease Agreement; provided that Lessee has failed to cure such breach
within thirty (30) days from the date of its receipt of the notice specified in this
subsection (or such longer period to the extent required to effectuate cure if promptly
commenced and diligently pursued); and provided further that Lessor (A) specifies in such
notice the representation, warranty, covenant, obligation or other agreement of which it
regards Lessee to be in material breach, and (B) is not itself in material breach of its
representations, warranties, covenants, obligations or agreements contained herein;
(ii) immediately if the Lessee becomes insolvent, makes a transfer in fraud of
creditors, or makes an assignment for the benefit of creditors;
(iii) upon the filing of any petition by or against Lessee under any present or
future section or chapter of the Bankruptcy Code or under any similar law or statute of the
United States or any state thereof (which, in the case of an involuntary proceeding, is not
permanently discharged, dismissed, stayed, or vacated, as the case may be, within sixty (60)
days of
commencement), or if any order for relief shall be entered against Lessee in any such
proceedings;
(iv) if the FCC has affirmatively stayed processing of the FCC Lease Agreement
Notification and that stay remains in effect for more than one hundred eighty days (180)
days, or if the FCC has requested material alterations to the terms of this Lease Agreement
that would materially alter Lessor’s rights or obligations hereunder; or
(v) if Lessor, in the exercise of its sole discretion, determines that the System
or any part thereof is in material non-compliance with the Communications Laws and that
Lessee is unable or unwilling to remedy such material non-compliance within thirty (30) days
after notice thereof; provided, however, Lessee hereby agrees that, as an
alternative to terminating this Lease Agreement, Lessor may, in its sole discretion, seek to
compel Lessee to take such action as is necessary to remedy any such violations that can be
remedied with commercially reasonable action and at commercially reasonable expense.
(i) if Lessee provides written notice to Lessor that Lessor has materially breached its
representations, warranties, covenants, obligations or other agreements contained in this
Lease Agreement; provided that Lessor has failed to cure such breach within thirty (30) days
from the date of its receipt of the notice specified in this subsection (or such longer
period to the extent required to effectuate cure if promptly commenced and diligently
pursued); and provided further that Lessee (A) specifies in such notice the representation,
warranty, covenant, obligation or other agreement of which it regards Lessor to be in
material breach, and (B) is not itself in material breach of its representations,
warranties, covenants, obligations or agreements contained herein;
13
(ii) upon written notice to Lessor after the effective date of any change in law
enacted by the FCC or any governmental body which would prevent or limit Lessee from using
the Leased Spectrum for its intended use;
(iii) immediately if the Lessor becomes insolvent, makes a transfer in fraud of
creditors, or makes an assignment for the benefit of creditors;
(iv) upon the filing of any petition by or against Lessor under any present or
future section or chapter of the Bankruptcy Code or under any similar law or statute of the
United States or any state thereof (which, in the case of an involuntary proceeding, is not
permanently discharged, dismissed, stayed, or vacated, as the case may be, within sixty (60)
days of commencement), or if any order for relief shall be entered against Lessor in any
such proceedings; or
(v) if the FCC has affirmatively stayed processing of the FCC Lease Agreement
Notification and that stay remains in effect for more than one hundred eighty (180) days, or
if the FCC has requested material alterations to the terms of this Lease Agreement that
would materially alter Lessee’s rights or obligations hereunder.
13. Miscellaneous.
14
commercially reasonable measures to ensure that competitive or
sensitive information relating to the separate business operations of one Party are not
inadvertently disclosed to the other Party. In the event, however, such information is
inadvertently received by either Lessor or Lessee with respect to the other, the receiving Party
will take commercially reasonable and appropriate steps to prohibit the disclosure or use of any
such information that may have been inadvertently obtained as a result of the provision of services
under this Lease Agreement to any employee or agent of the receiving Party or an Affiliate thereof
involved in any manner with the separate business operations of the receiving Party, or any third
party. Subject to the foregoing provisions, each Party expressly agrees to maintain communications
from the other Party pursuant to or in connection with this Lease Agreement in confidence so that
the other Party may rely on the safe harbor provisions of Rule 100(b)(2)(ii) of Regulation FD with
respect to such communications.
15
If to Lessor:
[insert name, address, phone and fax]
With a copy to (which will not constitute notice):
[insert name, address, phone and fax]
If to Lessee:
[insert name, address, phone and fax]
With a copy to (which will not constitute notice):
[insert name, address, phone and fax]
or to such other address or addresses as may hereafter be specified by notice given by any of the
above to the others. Notices given by United States certified mail as aforesaid will be effective
on the third business day following the day on which they are deposited in the mail. Notices
delivered in person or
by overnight courier will be effective upon delivery. Notices given by facsimile will be effective
when transmitted, provided facsimile notice is confirmed by telephone and is transmitted on a
business day during regular business hours.
16
17
have the right, in addition to all other rights or remedies, to seek specific
performance of the terms hereof.
[remainder of this page intentionally left blank — signature page follows]
18
LESSOR
[INSERT NAME OF LESSOR ENTITY]
By:
|
||||
LESSEE | ||||
[INSERT NAME OF LESSEE ENTITY] | ||||
By: |
||||
19
EXHIBIT A
Part 1
Description of FCC Licenses
Description of FCC Licenses
Call Sign | Licensee | Market Name (No.) | Block | |||
Part 2
Leased Spectrum
Leased Spectrum
Call Sign | BTA | Lessee | Market | Block | Frequencies (MHz) | Lease Expiration Date | ||||||
(by County) | ||||||||||||
20