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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT: January 27, 2000
(Date of earliest event reported) JANUARY 24, 2000
DOBSON COMMUNICATIONS CORPORATION
(Exact name of registrant as specified in its charter)
OKLAHOMA 333-23769 73-1513309
(State or other jurisdiction (Commission IRS Employer
of incorporation) File Number) Identification No.)
13439 NORTH BROADWAY EXTENSION, SUITE 200
OKLAHOMA CITY, OKLAHOMA 73114
(Address of principal executive offices) (Zip Code)
(405) 529-8500
(Registrant's telephone number, including area code)
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INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. OTHER EVENTS
On January 24, 2000, Dobson Communications Corporation (the "Company")
distributed all of the issued and outstanding capital stock of Logix
Communications Enterprises, Inc., to and among the holders of the Company's
Class A common stock and Class D preferred stock. In conjunction with this
distribution, the Company's principal shareholder agreed that under certain
circumstances, it would cause Logix to agree to indemnify the Company against
out-of-pocket tax liability arising out of this distribution.
(c) Exhibits
The following exhibit is filed as a part of this report:
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<CAPTION>
Exhibit
No. Description
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<S> <C>
10.1 Form of Agreement to Provide Indemnity
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: January 27, 2000 Dobson Communications Corporation
(Registrant)
By /s/ Ronald L. Ripley
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Ronald L. Ripley, Vice President
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Exhibit 10.1
AGREEMENT TO PROVIDE INDEMNITY
THIS AGREEMENT is made and entered into as of January 24, 2000 by and
among DOBSON COMMUNICATIONS CORPORATION, an Oklahoma corporation ("Dobson")
and DOBSON CC LIMITED PARTNERSHIP, an Oklahoma limited partnership ("DCCLP")
with reference to the following circumstances:
A. Dobson's board of directors has approved the distribution of the
stock of Logix Communications Enterprises, Inc. ("Logix") to the Shareholders
(the "Distribution").
B. Based on the opinion of Arthur Andersen LLP dated January 24 2000,
Dobson and DCCLP believe that Dobson will not incur any income tax resulting
from the Distribution, provided, among other things, DCCLP does not take, or
cause or permit Logix to take, on or before the second anniversary of the
Distribution, certain actions with respect to Logix or the capital stock of
Logix which DCCLP will receive in the Distribution (the "Logix Stock"), which
actions by DCCLP or Logix could cause Dobson to realize taxable income solely
as a result of the Distribution (a "Prohibited Action").
C. The parties desire to set forth their understanding and agreements
with respect to their respective rights and obligations if income tax is due
from Dobson as a result of a Prohibited Action.
NOW, THEREFORE, in consideration of the mutual covenants and
agreements contained herein, and other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the parties agree as
follows:
1. SHAREHOLDER AGREEMENT. DCCLP agrees prior to taking or causing or
permitting Logix to take a Prohibited Action that results in Dobson incurring
taxable income from the Distribution pursuant to Section 355(e) of the
Internal Revenue Code of 1986, as amended (the "Code") DCCLP shall either
a) Satisfy itself by reasonable means that the fair market value
of Logix at the time of the Distribution, as estimated in good
faith by the Board of Directors of Dobson, does not exceed the
sum of Dobson's tax basis in Logix and/or the Logix stock, for
federal income tax purposes, at the time of the Distribution
plus the aggregate net operating losses of Dobson legally
available to offset against such taxable income plus penalties
or interest thereon; or
b) Cause Logix to enter into and execute an indemnity agreement
with Dobson (the "Indemnity Agreement") reasonably
satisfactory to Dobson, whereby Logix will indemnify Dobson
for any income tax, together with any penalties or interest
thereon (collectively, the "Income Tax"), incurred by Dobson
under Section 355(e) of the
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Code solely attributable to the Distribution and arising as
a result of a Prohibited Action and Logix is financially
capable of performing its obligations under the Indemnity
Agreement.
DCCLP or its representative must certify as to the existence of facts or
circumstances necessary to meet Section 1(a) and 1(b) above prior to
consummating a Prohibited Action. Any Indemnity Agreement executed by Logix
and Dobson pursuant to Section 1(b) above will contain terms mutually
agreeable to Dobson and DCCLP. For purposes of calculating any income tax
liability under Section 1(b) above, the amount of income taxes will be
determined after the application of the aggregate net operating losses of
Dobson legally available to offset taxable income incurred under Section
355(e) of the Code as a result of the Distribution.
2. PROCEDURE. If a Taxing Authority claims that Dobson must pay
income tax as a result of a Prohibited Action for which Logix is responsible
under the Indemnity Agreement, DCCLP shall have control over the defense or
prosecution of any proceedings related to such claim (a "Claim"). DCCLP shall
not have the right to settle any Claim unless Dobson would be released of any
and all liability with respect to the facts giving rise to the Claim. DCCLP
shall give Dobson five (5) days notice prior to settling any such Claim and
Dobson shall have the right to approve or reject the settlement of such
Claim; provided, however, that if the settlement provides that Dobson shall
be relieved from all tax liability with respect to the facts giving rise to
the Claim, then upon rejection of the settlement of any such Claim, Dobson
shall assume control of the defense or prosecution of such Claim, at its sole
cost and expense from that point forward, and the liability of Logix with
respect to such Claim as finally resolved shall be limited to the monetary
equivalent of the rejected settlement amount concerning such Claim. Dobson
shall retain the right to employ its own counsel and discuss matters with
Logix related to the defense or prosecution of any such Claim controlled by
Logix. Dobson shall be solely responsible for its own costs and expenses in
connection with such participation; provided, however, that all decisions of
DCCLP shall be final and that Dobson shall cooperate with DCCLP in all
respects in defense of such Claim, including refraining from taking any
position adverse to DCCLP for so long as DCCLP has complied with Section 1(b)
hereof.
3. GOVERNING LAW. This Agreement shall governed by, and construed in
accordance with, the laws of the State of Oklahoma.
4. BINDING EFFECT. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors
and assigns.
5. ENTIRE AGREEMENT. This Agreement constitutes the complete and
exclusive agreement between the parties hereto with respect to the subject
matter hereof and supersedes all prior agreements, understandings, and
representations (oral, written, implied, or expressed), with respect to such
subject matter.
6. COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
taken together shall constitute one and the same instrument.
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DATED the day and year first above written.
DOBSON: DOBSON COMMUNICATIONS CORPORATION,
an Oklahoma corporation
By
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Everett R. Dobson, Chairman of the Board
and Chief Executive Officer
DCCLP: DOBSON CC LIMITED PARTNERSHIP
By: RLD, INC., General Partner
By
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Everett R. Dobson, President
