SETTLEMENT AGREEMENT AND MUTUAL RELEASERelease Agreement |
|
|
|
You are currently viewing: This Release Agreement involves
APC PCS, LLC | BRIGHT PERSONAL COMMUNICATIONS SERVICES, LLC | HORIZON PCS, INC | SPRINT COMMUNICATIONS. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here. |
|
|
|
<PAGE>
EXHIBIT 10.14
SETTLEMENT AGREEMENT AND MUTUAL RELEASE
This Settlement Agreement and Mutual Release (this "AGREEMENT") is
entered into as of March 16, 2005, by and among SPRINT SPECTRUM L.P., a Delaware
limited partnership, SPRINTCOM, INC., a Kansas corporation, WIRELESSCO, L.P., a
Delaware limited partnership, PHILLIECO, L.P., a Delaware limited partnership,
APC PCS, LLC, a Delaware limited liability company, SPRINT COMMUNICATIONS
COMPANY L.P., a Delaware limited partnership, (collectively, the "SPRINT
PARTIES,"), HORIZON PERSONAL COMMUNICATIONS, INC., an Ohio corporation
("HORIZON"), BRIGHT PERSONAL COMMUNICATIONS SERVICES, LLC, an Ohio limited
liability company ("BRIGHT") and HORIZON PCS, INC., a Delaware corporation
(together with Horizon and Bright, the "HORIZON PARTIES"). The Horizon Parties
and the Sprint Parties are referred to collectively as the "PARTIES".
Each of Horizon and Bright has entered into a Management Agreement
(each, a "MANAGEMENT AGREEMENT"), a Services Agreement and two Trademark and
Service Mark License Agreements with the Sprint Parties, dated and effective as
of the dates indicated:
- Horizon (June 8, 1998)
- Bright (October 13, 1999)
(collectively, as amended to date, the "SPRINT AGREEMENTS").
The Parties (in the singular, "PARTY") desire to resolve and release
claims specified in this Agreement, whether known or unknown, that any Party
might have against any of the other Parties that arose on or before the
Effective Date (defined below) of this Agreement, including certain claims that
arise out of any actual or claimed actions or inactions of any Party on or
before the Effective Date of this Agreement, except as provided in this
Agreement. The Parties have agreed to take the actions set forth in this
Agreement to avoid the expense and delay inherent in further negotiations and
possible litigation concerning their business relationship.
In consideration of the mutual promises set forth in this Agreement,
and for other good and valuable consideration, the receipt and sufficiency of
which are acknowledged, the Parties agree as follows:
1. ADDENDA. The Parties will execute and deliver Horizon Addendum VIII and
Bright Addendum IV to the respective Sprint Agreements in the forms attached to
this Agreement (the "ADDENDA") contemporaneously with the Parties' execution and
delivery of this Agreement.
2. EFFECTIVE DATE. The parties are executing this Agreement as of the date
noted above, but the terms of this Agreement become effective on (the "EFFECTIVE
DATE"): the later of the date the Parties execute and deliver the Addenda and
the date that Horizon pays Sprint Spectrum L.P. the amount required under this
Agreement.
<PAGE>
3. SETTLEMENT PAYMENT; OTHER PAYMENTS.
(a) HORIZON SETTLEMENT PAYMENT. Horizon, on behalf of itself and the
other Horizon Parties, will pay Sprint Spectrum L.P., on its own behalf
and on behalf of the other Sprint Parties, $975,075.97.
(b) JANUARY 2005 PAYMENT. Horizon, on behalf of itself and the other
Horizon Parties, will pay Sprint Spectrum L.P., on its behalf and on
behalf of the other Sprint Parties, $710,192.89, which represents the
Parties' estimate of:
(i) the amount that the Sprint Parties will bill the Horizon Parties
for the monthly payments (and not with respect to the weekly management
fee payments) to be paid under the Sprint Agreements (applying the terms
of the Addenda), including without limitation for CCPU Services and CPGA
Services, for the period between January 1, 2005 and January 31, 2005 (as
would have been reflected in invoices delivered by the Sprint Parties in
February 2005); minus
(ii) the amount of the monthly payments (and not with respect to the
weekly management fee payments) to be paid by the Sprint Parties to the
Horizon Parties under the Sprint Agreements (applying the terms of the
Addenda), including without limitation for net travel and net roaming, for
the period between January 1, 2005 and January 31, 2005 (as would have
been reflected in invoices delivered by the Sprint Parties in February
2005).
(c) ASSET PURCHASE PRICE. Sprint Spectrum L.P. will pay Horizon,
$168,946.49, which is the purchase price Sprint Spectrum L.P. has agreed
to pay to Horizon under that certain Asset Purchase Agreement dated March
16, 2005 between Sprint Spectrum L.P. and Horizon.
(d) METHOD OF PAYMENT. The payments required under Sections 3(a),
3(b) and 3(c) will be made on the Effective Date by netting those amounts.
The Party owing the net difference will pay the difference to the other
Party via wire transfer to the account designated by the receiving Party.
(e) "TRUE-UP" PAYMENT. The Parties will true-up, for the period
between January 1, 2005 and January 31, 2005 (the "TRUE-UP PERIOD"), the
amount by which (i) applying the terms of the Addenda with respect to the
monthly payments to be paid under the Sprint Agreements (and not with
respect to the weekly management fee payments), the actual amount to be
paid by the Horizon Parties to the Sprint Parties minus the actual amount
to be paid by the Sprint Parties to the Horizon Parties under the Sprint
Agreements for the True-up Period, exceeds or is less than (ii) the amount
paid pursuant to Section 3(b) of this Agreement. The Sprint Parties will
send in April 2005 actual invoices for the True-up Period and the payment
required under this Section 3(e) will be invoiced and paid through the
March 2005 monthly statement sent by the Sprint Parties in April 2005.
2
<PAGE>
4. GENERAL RELEASES.
(a) SPRINT RELEASE OF THE HORIZON PARTIES. Except as provided in
Section 5, each of the Sprint Parties releases and forever discharges the
Horizon Parties and their respective officers, directors, shareholders,
partners, members, subsidiaries, employees, agents and representatives
(the "HORIZON RELEASED PARTIES") from all liabilities, claims, attorneys'
fees, damages, injuries, causes of action, and losses of any kind that any
of the Sprint Parties ever had, now has, may assert or may in the future
claim to have against any of the Horizon Released Parties by reason of any
act, failure to act, occurrence or event occurring or existing on or
before the date of this Agreement, concerning or related to the Sprint
Agreements ("SPRINT'S CLAIMS"). For avoidance of doubt but not for
purposes of limitation, this provision releases and forever discharges
each of the Horizon Released Parties of and from any and all liabilities,
claims, attorneys' fees, damages, injuries, causes of action, and losses
of any kind that any of the Sprint Parties ever had, now has, may assert
or may in the future claim to have against any of the Horizon Released
Parties with respect to any of the matters set forth on Exhibit -------- A
to this Agreement, and waives any and all rights that any of the Sprint
Parties may have with respect - to those matters ("SPRINT'S SPECIFIC
CLAIMS").
(b) HORIZON RELEASE OF THE SPRINT PARTIES. Except as provided in
Section 5, each of the Horizon Parties releases and forever discharges the
Sprint Parties and their respective officers, directors, shareholders,
partners, members, subsidiaries, employees, agents and representatives
(the "SPRINT RELEASED PARTIES") from all liabilities, claims, attorneys'
fees, damages, injuries, causes of action, and losses of any kind that any
of the Horizon Parties ever had, now has, may assert or may in the future
claim to have against any of the Sprint Released Parties by reason of any
act, failure to act, occurrence or event occurring or existing on or
before the date of this Agreement concerning or related to the Sprint
Agreements ("HORIZON'S CLAIMS" and together with Sprint's Claims, the
"CLAIMS"). For avoidance of doubt but not for purposes of limitation, this
provision releases and forever discharges each of the Sprint Released
Parties of and from any and all liabilities, claims, attorneys' fees,
damages, injuries, causes of action, and losses of any kind that any of
the Horizon Parties ever had, now has, may assert or may in the future
claim to have against any of the Sprint Released Parties with respect to
any of the matters set forth on Exhibit A to this Agreement, and waives
any and all rights that any of the Horizon Parties may have with respect
to those matters ("HORIZON'S SPECIFIC CLAIMS" and together with Sprint's
Specific Claims, the "SPECIFIC CLAIMS").
(c) COMPLETE RELEASE. Except as provided in Sections 5, 9 and 13(a),
this Agreement constitutes the complete compromise, settlement, accord and
satisfaction of all of the Claims with no reservation of any rights or
claims, whether stated or implied.
5. EXCEPTIONS TO RELEASED CLAIMS.
(a) SETTLEMENTS ACTIVITY. Neither Party is releasing its right to
claims (including its right to dispute amounts) related to:
3
<PAGE>
(i) any settlements activity (including, without limitation, payment
of weekly management fees pursuant to Article 10 of the Sprint
Agreements), for the period from February 1, 2005 through the Effective
Date, for which invoices have not yet been generated; the settlements
activity (including, without limitation, payment of weekly management fees
pursuant to Article 10 of the Sprint Agreements) for the period from
February 1, 2005 through the Effective Date will be completed in the
normal course of business and giving effect to the Addenda;
(ii) third-party invoices or other charges for which the Sprint
Parties have not received invoices, which will be billed in the normal
course of business and giving effect to the Addenda; and
(iii) its rights under Article 10 of the Sprint Agreements (as
reflected in the Addenda) with respect to the invoices delivered by the
Sprint Parties pursuant to Section 3(e) of this Agreement.
(b) FUTURE CLAIMS. Nothing in this Agreement constitutes a release
by any Party of claims arising after the date of this Agreement, including
without limitation future claims arising under the Management Agreements
after giving effect to the Addenda that become effective as of January 1,
2005.
(c) INDEMNIFICATION. This Agreement does not modify, waive or
release the Parties' rights and responsibilities under section 13 of the
Management Agreements with respect to indemnification for claims brought
by third parties based upon facts that occurred before the Effective Date.
(d) MOST FAVORED NATION. This Agreement does not modify, waive or
release any of the Horizon Parties' rights under the new section 1.10 of
the Management Agreements, even if the changes to an Other Manager's
Management Agreement are in settlement of that Other Manager's claims that
are similar to claims that the Horizon Parties are releasing under this
Agreement.
(e) MAY 2004 SETTLEMENT AND RELEASE. Notwithstanding any provision
of this Agreement to the contrary, this Agreement will not affect,
terminate or adversely impact in any manner that certain Settlement
Agreement and Mutual Release dated May 12, 2004, by and among Sprint
Corporation, Sprint Spectrum L.P., SprintCom, Inc., WirelessCo, L.P.,
PhillieCo, L.P., APC PCS, LLC, Sprint Communications Company L.P., Horizon
Personal Communications, Inc., Bright Personal Communications Services,
LLC and Horizon PCS, Inc., or any of the releases contained in that
Settlement Agreement and Mutual Release.
6. REPRESENTATIONS AND WARRANTIES. Each of the Parties represents
and warrants to the other Parties that:
(a) it has not commenced any action or proceeding against any other
Party concerning any of the Claims or Specific Claims, before any agency
or other governmental authority, at law, in equity, in arbitration, or
otherwise;
4
<PAGE>
(b) no promise, inducement or agreement not expressed in this
Agreement or the Addenda has been made;
(c) it has the full right, power and authority to enter into this
Agreement, and to perform according to the terms of this Agreement;
(d) the Party is an entity







