Sprint PCS' Put Right Clause Samples
The Sprint PCS' Put Right clause grants Sprint PCS the contractual right to require another party, typically a partner or investor, to purchase Sprint PCS's interest in a joint venture or business arrangement at a predetermined price or under specified conditions. In practice, this means that if certain triggers occur—such as a change in control, failure to meet performance targets, or at the end of a defined period—Sprint PCS can compel the other party to buy out its stake, ensuring a clear exit strategy. This clause primarily serves to provide Sprint PCS with flexibility and protection, allowing it to mitigate risk and secure liquidity if the business relationship no longer aligns with its strategic interests.
Sprint PCS' Put Right. (a) Sprint PCS may, subject to receipt of FCC approval, put to Manager the Disaggregated License for a purchase price equal to the greater of (1) the original cost of the License to Sprint PCS (pro rated on a pops and spectrum basis) plus the microwave relocation costs paid by Sprint PCS or (2) 10% of the Entire Business Value.
(b) Upon closing the purchase of the Disaggregated License this agreement will be deemed terminated. The closing of the purchase of the Disaggregated License will occur within the later of:
(1) 20 days after the receipt by Sprint PCS of the written notice of determination of the Entire Business Value by the appraisers under Section 11.7; or
(2) 10 days after the approval of the sale of the Disaggregated License by the FCC.
(c) The exercise of the put, the determination of the geographic extent of the Disaggregated License coverage, the representations and warranties made by Sprint PCS with respect to the Disaggregated License, and the process for closing the purchase will be subject to the terms and conditions set forth in Section 11.8.
(d) Manager may, within 10 days after it receives notice of Sprint PCS' exercise of its put, advise Sprint PCS of the amount of spectrum (not to exceed 10 MHz) it wishes to purchase. After the purchase Manager will allow:
(1) subscribers of Sprint PCS to roam on Manager's network; and
(2) Sprint PCS to resell Manager's Products and Services. Manager will charge Sprint PCS a MFN price in either case.
Sprint PCS' Put Right. 34 11.6.3 Sprint PCS' Right to Cause A Cure................... 35 11.6.4 Sprint PCS' Action for Damages or Other Relief...... 37 11.7 Determination of Entire Business Value...................... 37 11.7.1
Sprint PCS' Put Right. 27 11.2.3 Extended Term Awaiting FCC Approval.................. 28 11.3