Sec. 26.319  Ownership changes and agreements to amend or to dismiss 
          applications or pleadings.

    (a) Applicability. Subject to the provisions of Sec. 1.2105 of this 
chapter (Bidding Application and Certification Procedures; Prohibition 
of Collusion), this section applies to applicants and all other parties 
interested in pending applications who wish to resolve contested matters 
among themselves with a formal or an informal agreement or 
understanding. This section applies only when the agreement or 
understanding will result in:
    (1) A major change in the ownership of an applicant to which 
Secs. 26.323 and 26.324 would apply, or
    (2) The individual or mutual withdrawal, amendment or dismissal of 
any pending application, amendment, petitioner or other pleading.
    (b) Parties that have filed an application in the GWCS that is 
mutually exclusive with one or more other applications, and then enter 
into an agreement to resolve the mutual exclusivity by withdrawing or 
requesting dismissal of the application or an amendment thereto, must 
obtain the approval of the FCC. Parties that have filed a petition to 
deny, informal objection or other pleading against a pending 
application, and then seek to withdraw or request dismissal of the 
petition, either unilaterally or in exchange for a financial 
consideration, must obtain the approval of the FCC.
    (1) The party withdrawing or requesting dismissal of its 
application, petition to deny, informal objection or other pleading must 
submit to the FCC a request for approval of the withdrawal or dismissal, 
a copy of any written agreement related to the withdrawal or dismissal, 
and an affidavit setting forth:
    (i) A certification that neither the party nor its principals has 
received or will receive any money or other consideration in excess of 
the legitimate and prudent expenses incurred in prosecuting the 
application, petition to deny, informal objection or other pleading in 
exchange for the withdrawal or dismissal of the application, petition to 
deny, informal objection or other pleading, except that this provision 
does not apply to dismissal or withdrawal of applications pursuant to 
bona fide merger agreements;
    (ii) The exact nature and amount of any consideration received or 
promised;
    (iii) An itemized accounting of the expenses for which it seeks 
reimbursement; and
    (iv) The terms of any oral agreement related to the withdrawal or 
dismissal of the application, petition to deny, informal objection or 
other pleading.
    (2) In addition, within 5 days of the filing date of the applicant's 
or petitioner's request for approval, each remaining party to any 
written or oral agreement must submit an affidavit setting forth:
    (i) A certification that neither the applicant nor its principals 
has paid or will pay money or other consideration in excess of the 
legitimate and prudent expenses of the petitioner in exchange for 
withdrawing or dismissing the application, petition to deny, informal 
objection or other pleading; and
    (ii) The terms of any oral agreement relating to the withdrawal or 
dismissal of the application, petition to deny, informal objection or 
other pleading.
    (3) For the purposes of this section:
    (i) Affidavits filed pursuant to this section must be executed by 
the filing party, if an individual, a partner having personal knowledge 
of the facts, if a partnership, or an officer having personal knowledge 
of the facts, if a corporation or association.
    (ii) Applications, petitions to deny, informal objections and other 
pleadings are deemed to be pending before the FCC from the time the 
application or petition to deny is filed with the FCC until such time as 
an order of the FCC granting, denying or dismissing the application, 
petition to deny, informal objection or other pleading is no longer 
subject to reconsideration by the FCC or to review by any court.
    (iii) ``Legitimate and prudent expenses'' are those expenses 
reasonably incurred by a party in preparing to file, filing, prosecuting 
and/or settling its application, petition to deny, informal objection or 
other pleading for which reimbursement is sought.
    (iv) ``Other consideration'' consists of financial concessions, 
including, but not limited to, the transfer of assets or

[[Page 375]]

the provision of tangible pecuniary benefit, as well as non-financial 
concessions that confer any type of benefit on the recipient.
    (v) Reimbursement by an applicant of the legitimate and prudent 
expenses of a potential petitioner or objector, incurred reasonably and 
directly in preparing to file a petition to deny, will not be considered 
to be payment for refraining from filing a petition to deny or an 
informal objection. Payments made directly to a potential petitioner or 
objector, or a person related to a potential petitioner or objector, to 
implement non-financial promises are prohibited unless specifically 
approved by the FCC.