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Put Agreement

 

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Title:

Put Agreement

Entities:

Powertel Inc /DE/; Patton Boggs LLP

Date:

2000

Size:

Preview shows 6KB of 62KB total

Price:

$42

ID:

#1358101

 

 

► Financing ► Derivatives ► Put Agreements
► Services ► Legal

 

 

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                                  PUT AGREEMENT


THIS PUT AGREEMENT (the "Agreement") is made and entered into as of May
30, 2000, by and among Eliska Wireless Investors I, L.P., a limited partnership
formed under the laws of the State of Alabama ("Investors"), Powertel, Inc., a
Delaware corporation ("Powertel"), and Sonera Holding B.V., a company organized
under the laws of the Netherlands ("Sonera") (Investors, Powertel and Sonera are
referred to individually herein as a "Party" and collectively as the "Parties").

WITNESSETH:

WHEREAS, Investors owns or has subscribed to purchase 5,000 shares, par
value US$0.01 per share (the "Shares"), of the common stock of Eliska Wireless
Ventures I, Inc., a Delaware corporation (the "Company");

WHEREAS, 4,900 of the Shares (the "Escrowed Shares") will be held, upon
acceptance of the above-referenced subscription by the Company, in escrow as
security under the Promissory Note attached as Exhibit A to the Stock Purchase
Agreement between Investors and the Company of even date herewith (the "Note")
pursuant to the terms and conditions of the Escrow Agreement attached as Exhibit
B to the Stock Purchase Agreement between Investors and the Company of even date
herewith ("Escrow Agreement");

WHEREAS, 100 of the Shares (the "Initial Paid-In Shares") will be held,
upon acceptance of the above-referenced subscription by the Company, free and
clear of all liens;

WHEREAS, in the event that Investors makes payment in full of all
amounts that are due under the Note through July 1, 2003, including, without
limitation, full payment of all principal and accrued interest under the Note
through such date, the Escrowed Shares shall be released from escrow, and
Investors will hold outright all of the Shares, free and clear of all liens;

WHEREAS, Investors desires to have the right to cause Powertel to
purchase certain of the Shares and any securities issued as a dividend or
distribution with respect thereto or in exchange or replacement thereof under
the terms and conditions set forth herein; and

WHEREAS, Powertel is willing to purchase certain of the Shares and any
securities issued as a dividend or distribution with respect thereto or in
exchange or replacement thereof on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:


1
<PAGE> 2

SECTION 1. FIRST PUT OPTION.

A. For the thirty (30) day period beginning on October 1, 2001
and ending on October 30, 2001, Investors shall have the right, but not the
obligation, to sell all, but not less than all, of the Initial Paid-In Shares
and all securities issued as a dividend or distribution with respect thereto or
in exchange or replacement thereof (the "Initial Subject Stock") to Powertel,
and Powertel shall be obligated to purchase the Initial Subject Stock from
Investors for the consideration and upon the terms and conditions set forth in
this Agreement (the "First Put"). Investors may exercise the First Put only by
giving effective written notice thereof (the "First Put Exercise Notice") to
Powertel on or before October 30, 2001. For the purposes hereof, the effective
date of the First Put Exercise Notice shall be known as the "First Put Notice
Date."

B. In payment for the Initial Subject Stock, at the closing that
is held pursuant to Section 1(C) below, Powertel shall deliver to Investors, at
the election of Investors, which election shall be set forth in the First Put
Notice as referenced in Section 1(A) hereof, either (i) $1,500,000, payable by
bank check or wire transfer (the "First Put Cash"), or (ii) thirteen thousand
nine hundred twenty-eight (13,928) fully paid and nonassessable shares of
Powertel's common stock, par value $0.01 per share (the "First Put Shares"), at
the option of Investors designated not later than the second business day
immediately preceding the First Put Closing (as defined in Section 1(D) below).
The Parties acknowledge and agree that the First Put Shares will be "restricted
securities" as such term is defined in Rule 144 promulgated pursuant to the
Securities Act of 1933, as amended, and the certificate representing the First
Put Shares will bear a restrictive legend to such effect. The number of First
Put Shares that is deliverable to Investors upon exercise of the First Put shall
be appropriately adjusted to account for any stock split, stock dividend, stock
combination or similar transaction involving or relating to the Powertel common
stock or Powertel which occurs between the date hereof and the First Put
Closing.

C. Powertel agrees that, in the event that a transaction occurs
whereby all or substantially all of Powertel's stock or assets are sold or
transferred, whether by means of a merger, consolidation, tender offer or
otherwise (collectively, a "Change of Control Transaction"), if the First Put is
exerciseable or has been exercised, Powertel shall require as a condition to
agreeing to such Change of Control Transaction that this Agreement be
specifically assumed in writing by the party acquiring Powertel's stock or
assets (and by the party which is issuing the consideration in connection with
the Change of Control Transaction, if different), and the First Put shall
thereafter be exercisable for such securities and/or such other property as
Investors would have received if it had held the Powertel stock subject to the
First Put as of the date of the closing of the Change of Control Transaction

 

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