Exhibit 10.12
ASSIGNMENT, ASSUMPTION AND CONSENT AGREEMENT
This Assignment, Assumption and Consent Agreement ("Consent
Agreement") is
entered into as of December 28, 2005 (the "Effective Date") by and
among Sprint
Spectrum L.P., a Delaware limited partnership, d/b/a/ Sprint
("Sprint"), Star
Number, Inc. d/b/a Liberty Wireless., a Delaware corporation
("Liberty"), and
TelePlus Wireless Corp, a Nevada corporation ("TelePlus").
RECITALS
WHEREAS,
Sprint and Liberty are parties to a Private Label PCS Services
Agreement with an effective date of November 17, 2005 (the "PLS
Agreement"); and
WHEREAS,
Sprint has agreed to the assignment of the PLS Agreement to
TelePlus, and TelePlus has agreed to assume the performance of the
PLS Agreement
and all liabilities and obligations thereunder; and
WHEREAS,
the parties desire to set forth in writing their understanding
of
such assignment and assumption of the PLS Agreement in this
Assignment,
Assumption and Consent Agreement.
NOW,
THEREFORE, in consideration of the above premises, the
representations and covenants set forth herein, and other valuable
and
sufficient consideration, the parties agree to the following.
1.
Assignment. Liberty does hereby grant, transfer, and assign to
TelePlus
all of
Liberty's right, title and interest in and to the PLS
Agreement.
Such
assignment shall be effective upon the Effective Date.
2.
Assumption. TelePlus hereby accepts this assignment and hereby
assumes the
PLS
Agreement and agrees to pay all sums and perform all covenants
and
obligations in accordance with their respective terms from and
after the
Effective
Date.
3.
Consent. Subject to Section 4 below, Sprint hereby consents to
the
assignment
of the PLS Agreement from Liberty to TelePlus.
4.
Security; Parent Guaranty. Within thirty (30) days of the Effective
Date,
TelePlus
shall provide to Sprint: (a) an irrevocable, divisible,
transferable, revolving letter of credit ( "LOC") on a bank
chartered
under the
laws of the United States or any state of the United States in
an amount
of Four Hundred Thousand Dollars ($400,000), in the form
attached
hereto as Attachment 1, and (b) an executed guaranty from
TelePlus'
parent company that is enforceable in accordance with its terms
("Guaranty"), in the form attached hereto as Attachment 2. The
terms
contained
in Section 7.6 of the PLS Agreement will apply to the LOC and
Guaranty.
Sprint's consent of the assignment of the PLS Agreement
contained
in Section 2 of this Consent Agreement is contingent upon
delivery
of the LOC and Guaranty to Sprint within the time period
described
herein.
5.
AMENDMENT. The PLS Agreement is hereby amended as follows:
5.1
As of the
Effective Date of this Consent Agreement, the amount of
the Security required in the first paragraph of Section 7.6.1 of
the
PLS Agreement is reduced from $500,000 to $400,000. However,
Sprint
retains the right to increase or decrease the amount of the
Security
upon 10 days prior written notice as set forth in Section 7.6.1
of
the PLS Agreement.
<PAGE>
5.2
Exhibit A,
"Brands List" to the PLS Agreement is deleted in its
entirety and replaced with a new Exhibit A attached hereto.
5.3
Exhibit D,
"Independent Representatives List" to the PLS Agreement
is deleted in its entirety and replaced with a new Exhibit D
attached hereto.
6.
Agreement Binding. This Consent Agreement shall be binding upon
the
successors
and permitted assigns of the parties. The parties shall execute
and
deliver such further and additional instruments, agreements, and
other
documents
as may be necessary to evidence or carry out the provisions of
this
Consent Agreement.
7.
Continued Effect of the Agreement. Except as provided for in this
Consent
Agreement,
the PLS Agreement shall continue in full force and effect,
unmodified
in any way.
In witness whereof, the parties have entered into this Consent
Agreement as of
the Effective Date.
Sprint Spectrum L.P.
Star Number, Inc. d/b/a
Liberty Wireless
By: /s/ David Bottoms
By: /s/ Frank C. Bennett
---------------------
------------------------
Name: David Bottoms
Name:
-------------------
----------------------
Title: Vice President, Strategic Partners
Title:
----------------------------------
---------------------
I have the authority to bind the
I have the authority to bind the
Corporation
Corporation
Date:
Date:
------------------
------------------
TelePlus Wireless Corp
By: /s/ Marius Silvasan
-----------------------
Name:
---------------------
Title:
--------------------
Date:
---------------------
I have the authority to bind the
Corporation
<PAGE>
EXHIBIT A
BRANDS LIST
List all Brands under which Private Label Services will be sold
either by
Purchaser or any IR.
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Brand
Names
Website URLs for Brands
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<PAGE>
EXHIBIT D
INDEPENDENT REPRESENTATIVES LIST
List all IRs that will sell Private Label Services under the
Agreement along
with the Brand under which the IR will sell Private Label Service
and the IRs'
website URLs, if any.
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IR Names
Brand(s) IR Will Sell Under IRs'
Website URL(s)
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<PAGE>
MAY 2005
Attachment 1
[Bank Letterhead]
IRREVOCABLE STANDBY LETTER OF CREDIT
_____________, 200_
Letter of Credit No. _____________
Sprint Spectrum L.P.
6180 Sprint Parkway
KSOPHH0316 - 3A824
Overland Park, KS
66251
Attention: Stephanie
McGowan
Contract Manager
Re: Irrevocable Letter
of Credit No. _____________
Ladies and Gentlemen:
At the request of and for the account of our customer
_______________________ [Insert name of customer] ("Account
Party"), we ("Bank")
hereby establish in your favor this Irrevocable Standby Letter of
Credit No.
_____________ ("Letter of Credit"). This Letter of Credit is issued
to you in
connection with the Private Label PCS Services Agreement
("Agreement") between
you and the Account Party dated November 11, 2005. This Letter of
Credit
authorizes you to draw on Bank an amount not exceeding in the
aggregate of U.S.
$400,000.00 ("Stated Amount"). Partial drawings are permitted under
this Letter
of Credit.
This
Letter of Credit automatically terminates on the earliest to
occur
("Expiration Date") of the following:
(i)
November 11,
2008, except that on October 11, 2008 and each October
11 thereafter ("Renewal Date") that date is automatically
extended
to November 11 of the succeeding year, unless Bank has delivered
to
yo
