Document:

Agreement and Plan of Merger, dated February 21, 2007

 Exhibit 10.1 
 EXECUTION COPY 
 AGREEMENT AND PLAN OF MERGER 
 by and among 
 RENOVA MEDIA
ENTERPRISES LTD., 
 GALAXY MERGER SUB CORPORATION, 
 a subsidiary of Renova Media Enterprises Ltd., and 
 MOSCOW CABLECOM CORP. 
 Dated as of February 21, 2007 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE I       THE MERGER; CLOSING; EFFECTIVE TIME	  	2
			
	 1.1
	  	The Merger	  	2
			
	 1.2
	  	Closing	  	2
			
	 1.3
	  	Effective Time	  	2
		
	ARTICLE II     CERTIFICATE OF INCORPORATION AND BY-LAWS OF THE SURVIVING CORPORATION	  	2
			
	 2.1
	  	The Certificate of Incorporation	  	2
			
	 2.2
	  	The By-Laws	  	2
		
	ARTICLE III     OFFICERS AND DIRECTORS OF THE SURVIVING CORPORATION	  	3
			
	 3.1
	  	Directors	  	3
			
	 3.2
	  	Officers	  	3
		
	ARTICLE IV     EFFECT OF THE MERGER ON CAPITAL STOCK; EXCHANGE OF CERTIFICATES	  	3
			
	 4.1
	  	Effect on Capital Stock	  	3
			
	 4.2
	  	Surrender of Certificates for Payment	  	4
			
	 4.3
	  	Dissenters’ Rights	  	6
			
	 4.4
	  	Treatment of Company Options, Warrants, Restricted Shares and Convertible Debentures	  	7
			
	 4.5
	  	Further Action	  	8
		
	 ARTICLE V     REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	  	8
			
	 5.1
	  	Subsidiaries, Organization, Good Standing and Qualification	  	9
			
	 5.2
	  	Capitalization of the Company and its Subsidiaries	  	9
			
	 5.3
	  	Corporate Authority; Approval and Fairness	  	10
			
	 5.4
	  	Consents and Approvals; No Violations	  	11
			
	 5.5
	  	Compliance with Laws; Licenses	  	11
			
	 5.6
	  	No Default	  	12
			
	 5.7
	  	Company Reports; Financial Statements	  	12
			
	 5.8
	  	No Undisclosed Material Liabilities	  	14
			
	 5.9
	  	Litigation	  	14
			
	 5.10
	  	Material Contracts	  	14
			
	 5.11
	  	Absence of Certain Changes or Events	  	14

  

 i 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	 5.12
	  	Employee Matters.	  	15
			
	 5.13
	  	Intellectual Property.	  	16
			
	 5.14
	  	Taxes	  	16
			
	 5.15
	  	Takeover Statutes; Charter Provisions	  	17
			
	 5.16
	  	Financial Advisor	  	17
			
	 5.17
	  	Brokers	  	17
			
	 5.18
	  	Information Supplied	  	18
		
	ARTICLE VI     REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB	  	18
			
	 6.1
	  	Organization, Good Standing and Qualification	  	18
			
	 6.2
	  	Authority Relative to This Agreement	  	18
			
	 6.3
	  	Consents and Approvals	  	19
			
	 6.4
	  	Merger Sub	  	19
			
	 6.5
	  	Financing	  	19
			
	 6.6
	  	Information Supplied	  	19
			
	 6.7
	  	HSR Act	  	19
			
	 6.8
	  	No Current Intention to Sell Company	  	20
			
	 6.9
	  	Brokers	  	20
		
	ARTICLE VII    COVENANTS	  	20
			
	 7.1
	  	Interim Operations	  	20
			
	 7.2
	  	Acquisition Proposals	  	23
			
	 7.3
	  	Information Statement; Stockholder Consent Solicitation; Recommendation; Record Date	  	24
			
	 7.4
	  	Warrant Exercise and Conversion of Series B Stock; Delivery of Consent	  	26
			
	 7.5
	  	Commercially Reasonable Efforts; Cooperation	  	27
			
	 7.6
	  	Other Access and Investigation	  	28
			
	 7.7
	  	Consents	  	29
			
	 7.8
	  	Public Announcements	  	29
			
	 7.9
	  	Employee Benefits	  	29
			
	 7.10
	  	Indemnification; Directors’ and Officers’ Insurance	  	29
			
	 7.11
	  	Funds for Cash Out Payments	  	31

  

 ii 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	 7.12
	  	Takeover Statutes	  	31
			
	 7.13
	  	Director Resignations	  	31
			
	 7.14
	  	Obligation to Notify	  	31
			
	 7.15
	  	Debentures	  	31
			
	 7.16
	  	Other Exercisable/Convertible Securities	  	32
		
	 ARTICLE VIII     CONDITIONS
	  	32
			
	 8.1
	  	Conditions to the Obligations of the Company, Parent and Merger Sub to Effect the Merger	  	32
			
	 8.2
	  	Conditions to Obligations of Parent and Merger Sub	  	32
			
	 8.3
	  	Conditions to Obligation of the Company	  	33
		
	 ARTICLE IX     TERMINATION
	  	34
			
	 9.1
	  	Termination by Mutual Consent	  	34
			
	 9.2
	  	Termination by Either Parent or the Company	  	34
			
	 9.3
	  	Termination by the Company	  	34
			
	 9.4
	  	Termination by Parent	  	36
			
	 9.5
	  	Effect of Termination and Abandonment	  	37
		
	 ARTICLE X     MISCELLANEOUS AND GENERAL
	  	37
			
	 10.1
	  	Non-Survival of Representations and Warranties	  	37
			
	 10.2
	  	Modification or Amendment	  	37
			
	 10.3
	  	Waiver of Conditions	  	37
			
	 10.4
	  	Definitions	  	37
			
	 10.5
	  	Counterparts	  	37
			
	 10.6
	  	Governing Law and Venue; Waiver of Jury Trial	  	37
			
	 10.7
	  	Notices	  	38
			
	 10.8
	  	Entire Agreement	  	40
			
	 10.9
	  	Enforcement; No Third Party Beneficiaries	  	40
			
	 10.10
	  	Severability	  	40
			
	 10.11
	  	Interpretation; Absence of Presumption	  	41
			
	 10.12
	  	Expenses	  	41
			
	 10.13
	  	Assignment	  	42

  

 iii 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ANNEX AND EXHIBITS	  	
			
	Annex I	  	Glossary of Defined Terms	  	I-1
			
	Exhibit A	  	Certificate of Incorporation	  	A-1
			
	Exhibit B	  	Form of Written Consent of Stockholder	  	B-1

  

 iv 

 AGREEMENT AND PLAN OF MERGER 
 AGREEMENT AND PLAN OF MERGER (this “Agreement”), dated as of February 21, 2007, by and among Renova Media Enterprises Ltd.,
a Bahamian corporation (“Parent”), Galaxy Merger Sub Corporation, a Delaware corporation and a subsidiary of Parent (“Merger Sub”), and Moscow CableCom Corp., a Delaware corporation (the “Company”).

 RECITALS 
 WHEREAS, the
definitions of certain capitalized terms used in this Agreement are set forth in Annex I; 
 WHEREAS, as of the date hereof, Parent owns
3,375,084 shares of Common Stock, warrants to purchase 1,687,542 shares of Common Stock, 4,500,000 shares of Series B Stock and warrants to purchase 8,283,000 shares of Series B Stock; 
 WHEREAS, a special committee (the “Special Committee”) of the board of directors of the Company (the “Company Board”)
has unanimously recommended to the Company Board that the Company Board approve this Agreement and the acquisition of all of the equity interests of the Company which Parent does not beneficially own on the date hereof, on the terms and subject to
the conditions set forth in this Agreement; 
 WHEREAS, the Company Board has, by the unanimous vote of those directors adopting the
applicable resolutions, duly approved and declared advisable this Agreement and the merger of Merger Sub with and into the Company (the “Merger”) upon the terms and conditions set forth in this Agreement; 
 WHEREAS, the boards of directors of each of Parent and Merger Sub have approved this Agreement; 
 WHEREAS, Parent, as the sole shareholder in Merger Sub, will adopt this Agreement following the execution of this Agreement; 
 WHEREAS, concurrently with the execution of this Agreement, RME Finance Ltd, a company formed under the laws of the Republic of Cyprus (“Bridge
Finance Lender”), the Company and Company Sub, have entered into the Bridge Facility Agreement dated as of the date hereof (the “Bridge Facility Agreement”), pursuant to which Bridge Finance Lender has agreed, subject to
the terms and conditions set forth therein, to make available to Company Sub certain Loans (as defined in the Bridge Facility Agreement), the payment and performance of which has been unconditionally guarantied by the Company; and 
 WHEREAS, the Company, Parent and Merger Sub desire to make those representations, warranties, covenants and agreements specified herein in connection
with this Agreement. 
 NOW, THEREFORE, in consideration of the premises and the representations, warranties, covenants and agreements
contained herein, and intending to be legally bound hereby, Parent, Merger Sub and the Company agree as follows: 
  

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 ARTICLE I 
 THE MERGER; CLOSING; EFFECTIVE TIME 
 1.1 The Merger. Upon the terms and subject to the
conditions set forth in this Agreement, at the Effective Time (as defined below), Merger Sub shall be merged with and into the Company and the separate corporate existence of Merger Sub shall thereupon cease. The Company shall be the surviving
corporation in the Merger (sometimes hereinafter referred to as the “Surviving Corporation”), and the separate corporate existence of the Company with all its rights, privileges, immunities, powers and franchises shall continue
unaffected by the Merger, except as set forth in Article II of this Agreement. The Merger shall have the effects specified in the DGCL. 
 1.2 Closing. Unless otherwise mutually agreed in writing between Parent and the Company, the closing for the Merger (the “Closing”) shall take place at the offices of DLA Piper US LLP, 1251 Avenue of the Americas,
29th Floor, New York, New York 10020-1041, at 9:00 A.M. local time on the first Business Day (the “Closing Date”) following the day on which the last to be satisfied or waived of the conditions set forth in Article VIII (other than
those conditions that by their nature are to be satisfied at the Closing, but subject to the satisfaction or waiver of those conditions) shall be satisfied or, subject to applicable Law, waived in accordance with this Agreement. 
 1.3 Effective Time. Immediately following the Closing, Parent and the Company shall cause a Certificate of Merger (the “Certificate of
Merger”) to be executed, acknowledged and filed with the Secretary of State of the State of Delaware as provided by the applicable provisions of the DGCL. The Merger shall become effective at the time when the Certificate of Merger has been
duly filed with the Secretary of State of the State of Delaware or at such later time as may be agreed by the parties in writing and specified in the Certificate of Merger (the “Effective Time”). 
 ARTICLE II 
 CERTIFICATE OF
INCORPORATION AND BY-LAWS 
 OF THE SURVIVING CORPORATION 
 2.1 The Certificate of Incorporation. The certificate of incorporation of the Company shall be amended to read in its entirety as set forth in
Exhibit A and shall be the certificate of incorporation of the Surviving Corporation (the “Charter”), until thereafter amended as provided therein or by applicable Law. 
 2.2 The By-Laws. The By-Laws of the Company shall be amended and restated to conform to the By-Laws of Merger Sub as in effect immediately prior
to the Effective Time and shall be the By-Laws of the Surviving Corporation (the “By-Laws”), until thereafter amended as provided therein or in accordance with the Charter and applicable Law. 
  

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 ARTICLE III 
 OFFICERS AND DIRECTORS OF THE SURVIVING CORPORATION 
 3.1 Directors. The directors of Merger
Sub immediately prior to the Effective Time shall, from and after the Effective Time, be the directors of the Surviving Corporation until their successors have been duly elected or appointed and qualified or until their earlier death, resignation or
removal in accordance with the Charter and the By-Laws. 
 3.2 Officers. The officers of the Company at the Effective Time shall, from
and after the Effective Time, be the officers of the Surviving Corporation until their successors have been duly elected or appointed and qualified or until their earlier death, resignation or removal in accordance with the Charter and the By-Laws.

 ARTICLE IV 
 EFFECT
OF THE MERGER ON CAPITAL STOCK; EXCHANGE OF CERTIFICATES 
 4.1 Effect on Capital Stock. At the Effective Time, as a result of the
Merger and without any action on the part of Parent, Merger Sub, the Company or any holder of any capital stock of Parent, Merger Sub or the Company: 
 (a) Merger Consideration. 
 (i) Each share of Common Stock issued and outstanding immediately prior
to the Effective Time (other than (A) shares of Common Stock owned by Parent, (B) shares of Common Stock owned by the Company or any direct or indirect wholly-owned Subsidiary of the Company, or (C) shares of Common Stock (the
“Dissenting Common Shares”) that are owned by stockholders holding Common Stock who are entitled to demand and properly demand an appraisal of their shares of Common Stock (the “Dissenting Common Stockholders”)
pursuant to Section 262 of the DGCL (each of (A), (B) and (C) of this sentence, an “Excluded Common Share” and collectively, “Excluded Common Shares”)) shall be converted into the right to receive an
amount in cash equal to $12.90 (the “Common Stock Merger Consideration”). 
 (ii) Each share of Series A Convertible
Preferred Stock of the Company, par value $0.01 per share (“Series A Stock”), issued and outstanding immediately prior to the Effective Time (other than (A) shares of Series A Stock owned by Parent, (B) shares of Series A
Stock owned by the Company or any direct or indirect wholly-owned Subsidiary of the Company, or (C) shares of Series A Stock (the “Dissenting Series A Shares”) that are owned by stockholders holding Series A Stock who are
entitled to demand and properly demand appraisal of their shares of Series A Stock (the “Dissenting Series A Stockholders”) pursuant to Section 262 of the DGCL (each of (A), (B) and (C) of this sentence, an
“Excluded Series A Share” and collectively, “Excluded Series A Shares”)) shall be converted into the right to receive an amount in cash equal to the product of (x) the Common Stock Merger Consideration and
(y) the number of shares of Common Stock into which one share of Series A Stock is convertible in accordance with its terms at the Effective Time (together with any declared and unpaid dividends on a share of Series A Stock for which a record
date has occurred prior to the Closing Date, in 

  

 3 

 
accordance with the terms of the Series A Stock) (the “Series A Merger Consideration”) (it being understood that the aggregate amount
payable to any individual holder of record of Series A Stock shall be rounded to the nearest cent). 
 (iii) At the Effective Time, all
shares of Common Stock and Series A Stock shall no longer be outstanding and all shares of Common Stock and Series A Stock shall be cancelled and retired and shall cease to exist, and each certificate (a “Certificate”) formerly
representing any such shares of Common Stock or Series A Stock (other than Excluded Common Shares or Excluded Series A Shares) shall thereafter represent only the right to the Common Stock Merger Consideration or Series A Merger Consideration, as
applicable, and any Dissenting Common Shares or Dissenting Series A Shares shall thereafter represent only the right to receive the applicable payments set forth in Section 4.3. At the Effective Time, all shares of Series B Stock, which are all
held by Parent as of the date hereof, shall cease to be outstanding, shall be cancelled and retired without payment of any consideration therefor and shall cease to exist. 
 (b) Cancellation of Parent-Owned Shares and Treasury Shares. Each share of Company capital stock issued and outstanding immediately prior to the
Effective Time and owned by Parent, the Company, or any direct or indirect wholly-owned Subsidiary of the Company shall, by virtue of the Merger and without any action on the part of the holder thereof, cease to be outstanding, shall be cancelled
and retired without payment of any consideration therefor and shall cease to exist. 
 (c) Merger Sub Shares. At the Effective Time,
each share of common stock, par value $0.01 per share, of Merger Sub issued and outstanding immediately prior to the Effective Time shall be converted into a number of shares of common stock, par value $0.01 per share, of the Surviving Corporation
equal to the result of dividing (i) the difference between (x) the sum of the shares of Company Common Stock that are, immediately prior to the Effective Time, outstanding, issuable upon conversion of convertible securities, issuable upon
exercise of exercisable securities, and/or issuable upon conversion of securities issuable upon exercise of exercisable securities, which sum shall be set forth on a certificate executed by a duly authorized executive of the Company and delivered to
Parent at the Closing, and (y) the number of shares subject to Company Options that, immediately prior to the Effective Time, are not terminable upon the Surviving Corporation’s delivery of an Option Cash Out Payment, as defined and
described in Section 4.4(a), by (ii) 1,000 (the number of shares of Merger Sub Common Stock that will be outstanding immediately prior to the Effective Time). 
 4.2 Surrender of Certificates for Payment. 
 (a) Paying Agent. At or immediately prior to the
Effective Time, Parent shall deposit, or shall cause to be deposited, with a paying agent appointed by Parent and approved in advance by the Company (such approval not to be unreasonably withheld or delayed) (the “Paying Agent”),
for the benefit of the holders of shares of Common Stock and Series A Stock (other than Parent or the Company), cash sufficient to pay the aggregate Common Stock Merger Consideration and aggregate Series A Merger Consideration in exchange for shares
of Common Stock and Series A Stock, respectively, outstanding immediately prior to the Effective Time (other than Excluded Common Shares and Excluded Series A Shares), deliverable upon due surrender of the Certificates pursuant to the provisions of
this Article IV (such cash being 

  

 4 

 
hereinafter referred to as the “Payment Fund”). The Payment Fund shall not be used for any other purposes. The Paying Agent shall invest the
cash included in the Payment Fund in obligations guaranteed by the full faith and credit of the United States of America or such other instruments as constitute customary investments for payment funds of this nature. All interest earned on such
funds shall be paid to Parent. 
 (b) Payment Procedures. Parent and the Surviving Corporation shall cause the Paying Agent to mail,
as soon as reasonably practicable after the Effective Time, to each holder of record of shares of Common Stock and Series A Stock (i) a letter of transmittal (which shall be in a form prepared by Parent and approved by the Company, such
approval not to be unreasonably withheld, prior to the Effective Time), (A) specifying that delivery shall be effected, and risk of loss and title to Certificates shall pass, only upon delivery of Certificates to the Paying Agent, and
(B) containing an irrevocable waiver of any appraisal rights under Section 262 of the DGCL in connection with the Merger; and (ii) instructions for use in effecting the surrender of the Certificates in exchange for the Common Stock
Merger Consideration and Series A Merger Consideration (together with any declared and unpaid dividends on such securities, respectively, for which a record date has occurred prior to the Closing Date, in accordance with the terms of their
respective securities). Upon the surrender of a Certificate to the Paying Agent in accordance with the terms of such letter of transmittal, duly executed, the holder of such Certificate shall be entitled to receive in exchange therefor a check in
the amount (after giving effect to any required tax withholdings) of (x) the number of shares of Common Stock or Series A Preferred Stock, as applicable, represented by such Certificate multiplied by (y) the Common Stock Merger
Consideration or Series A Merger Consideration, as applicable (together with any declared and unpaid dividends on such securities, respectively, for which a record date has occurred prior to the Closing Date, in accordance with the terms of their
respective securities), and the Certificate so surrendered shall forthwith be cancelled. No interest shall be paid or accrued on any amount payable upon due surrender of the Certificates. In the event of a transfer of ownership of shares of Common
Stock or Series A Stock that is not registered in the transfer records of the Company, a check for any cash to be paid upon due surrender of the Certificate may be paid to such a transferee if the Certificate formerly representing such shares of
Common Stock or Series A Stock is presented to the Paying Agent, accompanied by all documents required to evidence and effect such transfer and to evidence that any applicable stock transfer taxes have been paid or are not applicable. 
 (c) Transfers. From and after the Effective Time, the share transfer books of the Company shall be closed and there shall be no further
registration of transfers on the share transfer books of the Surviving Corporation of the shares of Common Stock or Series A Stock which were outstanding immediately prior to the Effective Time (except for any transfers made in accordance with
customary settlement procedures to reflect trades effected prior to the Effective Time). If, after the Effective Time, Certificates representing shares of Common Stock or Series A Stock are presented to the Surviving Corporation or Parent for
transfer, they shall be cancelled and exchanged for a check in the proper amount pursuant to this Article IV. 
 (d) Termination of
Payment Fund. Any portion of the Payment Fund (including the proceeds of any investments thereof) that remains unclaimed by the stockholders of the Company for 180 days after the Effective Time shall be delivered to the Surviving Corporation.
Any holders of shares of Common Stock or Series A Stock (other than Excluded 

  

 5 

 
Common Shares or Excluded Series A Shares) who have not theretofore complied with this Article IV shall thereafter look only to the Surviving Corporation for
payment of (after giving effect to any required tax withholdings) the Common Stock Merger Consideration and Series A Merger Consideration, as applicable, upon due surrender of their Certificates, without any interest thereon. Notwithstanding the
foregoing, none of Parent, Merger Sub, the Surviving Corporation, the Company, the Paying Agent or any other Person shall be liable to any former holder of shares of Common Stock or Series A Stock for any amount delivered to a public official
pursuant to applicable abandoned property, escheat or similar Laws. Any portion of the Payment Fund remaining unclaimed as of a date which is immediately prior to such time as such amounts would otherwise escheat to or become property of any
government entity shall, to the extent permitted by applicable Law, become the property of Parent free and clear of any claims or interest of any person previously entitled thereto. 
 (e) Lost, Stolen or Destroyed Certificates. In the event any Certificate shall have been lost, stolen or destroyed, upon the making of an
affidavit of that fact by the Person claiming such Certificate to be lost, stolen or destroyed and if required by Parent the posting by such Person of a bond in customary amount with customary terms against any claim that may be made against it with
respect to such Certificate, the Paying Agent shall issue a check in the amount (after giving effect to any required tax withholdings) of the number of shares of Common Stock or Series A Stock represented by such lost, stolen or destroyed
Certificate multiplied by the Common Stock Merger Consideration or Series A Merger Consideration, as applicable, in exchange for such lost, stolen or destroyed Certificate. Any affidavit of loss presented pursuant to this Article IV, to be deemed
effective, must be in form and substance reasonably satisfactory to the Surviving Corporation. 
 4.3 Dissenters’ Rights. Any
Dissenting Common Stockholder or Dissenting Series A Stockholder shall not be entitled to receive the Common Stock Merger Consideration or Series A Merger Consideration, as applicable, with respect to the shares of Common Stock or Series A Stock
owned by such Person unless and until such Person shall have failed to perfect or shall have effectively withdrawn or lost such holder’s right to dissent from the Merger under the DGCL. Each Dissenting Common Stockholder and each Dissenting
Series A Stockholder, as the case may be, shall be entitled to receive only the payment provided by Section 262 of the DGCL with respect to the shares of Common Stock and/or Series A Stock owned by such Dissenting Common Stockholder or
Dissenting Series A Stockholder, as the case may be, and as to which dissenters’ rights have been properly perfected. The Company shall give Parent (i) prompt notice of any written demands for appraisal, attempted withdrawals of such
demands, and any other instruments served pursuant to applicable Law received by the Company relating to stockholders’ rights of appraisal, and (ii) the opportunity to direct all negotiations and proceedings with respect to demands for
appraisal under the DGCL. The Company shall not, except with the prior written consent of Parent, voluntarily make any payment with respect to any demands for appraisals of Dissenting Common Shares or Dissenting Series A Shares, offer to settle or
settle any such demands or approve any withdrawal of any such demands. 
  

 6 

 4.4 Treatment of Company Options, Warrants, Restricted Shares and Convertible Debentures.

 (a) Upon and after the Effective Time, with respect to any outstanding stock option to purchase shares of Common Stock (each, a
“Company Option”) the holder thereof shall be entitled to receive an amount of cash (without interest) equal to the product of (x) the total number of shares of Common Stock subject to the Company Option (with all shares
subject to the option deemed fully vested and exercisable) multiplied by (y) the excess, if any, of the amount of the Common Stock Merger Consideration over the exercise price per share of Common Stock under such Company Option (with the
aggregate amount of such payment rounded to the nearest cent), less applicable Taxes, if any, required to be withheld with respect to such payment (the “Option Cash Out Payment”) and, upon the holder’s receipt of such Option
Cash Out Payment, the holder’s Company Option shall be terminated; provided, however, that to the extent an option holder’s acknowledgment or consent or an amendment to the Company Option agreement is required to permit the Company to
terminate the Company Option, the holder of a Company Option shall only be entitled to the Option Cash Out Payment upon such holder’s execution and delivery of a form of acknowledgment and consent, or amendment to Company agreement, which has
been prepared by Parent and approved by the Company, which approval shall not be unreasonably withheld. With respect to any Company Option that is not otherwise terminable upon the delivery of the Option Cash Out Payment, the Company Option shall
remain outstanding, provided that the shares subject to the Company Option shall be shares of the Surviving Corporation. From and after the date hereof, the Company shall use commercially reasonable efforts to distribute to the holders of Company
Options the forms of acknowledgment and consent described in this Section 4.4(a) and such other information currently in the Company’s possession relating to such Company Options to facilitate Option Cash Out Payments upon and after the
Effective Time. 
 (b) Upon and after the Effective Time, each warrant to purchase shares of Common Stock which is not held by Parent and is
then outstanding (each, a “Company Common Warrant”) shall, in accordance with the terms of such Company Common Warrant, represent the right to receive, upon the exercise thereof, an amount in cash (without interest) equal to the
product of (x) the total number of shares of Common Stock subject to such Company Common Warrant multiplied by (y) the Common Stock Merger Consideration. In lieu of exercising a Company Common Warrant (upon and after the Effective Time but
prior to the expiration of such Company Common Warrant), if the holder so requests, the Surviving Corporation shall permit the holder thereof to receive an amount of cash (without interest) equal to the product of (x) the total number of shares
of Common Stock subject to such Company Common Warrant multiplied by (y) the excess, if any, of the amount of the Common Stock Merger Consideration over the exercise price per share of Common Stock under such Company Common Warrant (with the
aggregate amount of such payment rounded to the nearest cent), less applicable Taxes, if any, required to be withheld with respect to such payment (the “Warrant Cash Out Payment”). Except as described herein, the terms and
conditions of each Company Common Warrant, including terms and conditions regarding the expiration of such Company Common Warrant, shall remain in effect after the Effective Time. 
 (c) Upon the Effective Time, each warrant to purchase shares of Common Stock or Series B Stock, which warrant is then held by Parent and then
outstanding, shall, notwithstanding any terms to the contrary therein, be terminated and cancelled without payment of any consideration therefor and shall cease to exist. 
  

 7 

 (d) Immediately prior to the Effective Time, each share of Common Stock subject to forfeiture or
reacquisition by the Company (“Company Restricted Stock”) shall fully vest and no longer be subject to forfeiture or reacquisition by the Company. The Company shall take all actions necessary to effect such vesting. A holder of
Company Restricted Stock will accordingly have the right to receive the Common Stock Merger Consideration for each outstanding share of Company Restricted Stock without any restrictions applicable to unvested shares of Company Restricted Stock.

 (e) Upon and after the Effective Time, each of the Company’s 10 1/2% Convertible Subordinated Debentures due 2007 that is then outstanding (each a “Debenture”)
shall, in accordance with the terms of each Debenture, become convertible into the right to receive, upon the conversion thereof, an amount in cash (without interest) equal to the Common Stock Merger Consideration multiplied by each whole share of
Common Stock issuable upon conversion of such Debenture immediately prior to the Effective Time. Except as described herein, the terms and conditions of each Debenture shall remain in effect after the Effective Time. 
 (f) Prior to the Effective Time, the Company shall use all commercially reasonable efforts to cause the transactions contemplated by this
Section 4.4 and any other dispositions of equity securities of the Company (including derivative securities) in connection with this Agreement by each individual who is subject to the reporting requirements of Section 16(a) of the Exchange
Act with respect to the Company to be exempt under Rule 16b-3 under the Exchange Act. 
 4.5 Further Action. If, at any time after the
Effective Time, any further action is determined by Parent to be necessary or desirable to carry out the purposes of this Agreement or to vest the Surviving Corporation with full right, title and possession of and to all rights and property of
Merger Sub and the Company, the officers and directors of the Surviving Corporation and Parent shall be fully authorized (in the name of Merger Sub, in the name of the Company and otherwise) to take such action. 
 ARTICLE V 
 REPRESENTATIONS AND
WARRANTIES OF THE COMPANY 
 Except as set forth in (i) the Company Reports (as defined below) filed prior to the date hereof or
(ii) the applicable section of the disclosure schedule delivered by the Company to Parent on the date hereof (the “Company Disclosure Schedule”) (it being understood that any matter disclosed in any section or subsection of the
Company Disclosure Schedule with respect to the corresponding section or subsection of this Agreement shall be deemed to be disclosed under any other section or subsection of this Agreement, as long as the relevance of such disclosure to such other
section or subsection of the Agreement is reasonably apparent), the Company hereby represents and warrants to Parent and Merger Sub as follows: 
  

 8 

 5.1 Subsidiaries, Organization, Good Standing and Qualification. Each of the Company and its
Subsidiaries is a corporation or other legal entity duly organized, validly existing and in good standing (where applicable) under the Laws of the jurisdiction of its incorporation or organization and has all requisite corporate or other business
entity power and authority to own, lease and operate its properties and assets and to carry on its businesses as now being conducted and is qualified to do business and is in good standing (where applicable) as a foreign corporation or other
business entity in each jurisdiction where the ownership, leasing or operation of its properties or assets or conduct of its business requires such qualification, except where the failure to be so qualified or in good standing or to have such power
or authority, would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 
 5.2
Capitalization of the Company and its Subsidiaries. 
 (a) The authorized stock of the Company consists of 25,800,000 shares of
Preferred Stock, of which 25,000,000 are designated Series B Stock and 800,000 are designated Series A Stock, and 40,000,000 shares of Common Stock. As of February 20, 2007, 13,972,365 shares of Common Stock were issued and outstanding, 149,962
shares of Series A Stock were issued and outstanding and 4,500,000 shares of Series B Stock were outstanding. All such shares of Common Stock, Series A Stock and Series B Stock outstanding as of such date have been duly authorized, validly issued,
and are fully paid, nonassessable and free of preemptive rights or other similar rights. The Company has no commitments to issue or deliver any shares of Common Stock, except that, as of February 20, 2007, a total of 1,090,265 shares of Common
Stock were reserved for issuance pursuant to outstanding Company Options, 702,680 shares of Common Stock were reserved for issuance pursuant to outstanding Company Common Warrants, 8,283,000 shares of Series B Stock were reserved for issuance
pursuant to outstanding warrants to purchase Series B Stock, 22,077 shares of Common Stock were required for issuance upon conversion and in accordance with the terms of outstanding Debentures, 458,134 shares of Common Stock were reserved for
issuance upon conversion of outstanding shares of Series A Preferred Stock and 12,783,000 shares of Common Stock were reserved for issuance upon conversion of shares of Series B Stock (both outstanding and issuable upon exercise of warrants to
purchase Series B Stock). All outstanding Company Options are governed by the terms and conditions of the Company’s 2003 Stock Plan and the standard form of stock option agreement used for such plans, respectively. All outstanding Company
Common Warrants are governed by the terms and conditions of a warrant agreement, the form of which is included as an exhibit to a Company Report. Except as set forth in this paragraph, there are no authorized or outstanding debt or equity securities
of the Company, and the Company has no obligations to authorize or issue additional debt or equity securities of the Company. 
 (b) As of
the date hereof, the number of shares of Common Stock into which each outstanding share of Series A Stock is convertible is 3.055; the number of shares of Common Stock into which each outstanding share of Series B Stock is convertible is 1.0; and
the voting power of each outstanding share of Series B Stock in any matter presented to the holders of the Company’s capital stock voting as a single class is 0.81833 per share (compared to 1.0 per share for each outstanding share of
Common Stock). 
  

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 (c) Each of the outstanding shares of capital stock or other securities of each of the Company’s
Subsidiaries is duly authorized, validly issued, fully paid and nonassessable, and owned by the Company or by a direct or indirect wholly-owned Subsidiary of the Company, free and clear of any Lien. Section 5.1 of the Company Disclosure
Schedule sets forth a correct and complete list of all such capital stock or other securities. Except as set forth above, there are no shares of capital stock of the Company or any of its Subsidiaries authorized, reserved, issued or outstanding and
there are no preemptive or other outstanding rights, subscriptions, options, warrants, stock appreciation rights, redemption rights, repurchase rights, convertible, exercisable, or exchangeable securities of the Company or any of its Subsidiaries or
other agreements, arrangements or commitments of any character to which the Company or any of its Subsidiaries is a party relating to the issued or unissued share capital or other ownership interest of the Company or any of its Subsidiaries or any
other securities or obligations of the Company or any of its Subsidiaries convertible or exchangeable into or exercisable for, or giving any Person a right to subscribe for or acquire, any securities of the Company or its Subsidiaries, and no
securities evidencing such rights are authorized, issued or outstanding. Except as set forth above, the Company does not have outstanding any bonds, debentures, notes or other obligations the holders of which have the right to vote (or convertible
or exchangeable into or exercisable for securities having the right to vote) with the stockholders of the Company on any matter. 
 (d) There
are no voting trusts or other agreements or understandings to which the Company or any of its Subsidiaries is a party with respect to the voting of any of the capital stock of the Company. None of the Company or any of its Subsidiaries is obligated
under any registration rights or similar agreements to register any shares of capital stock of the Company or any of its Subsidiaries on behalf of any Person. 
 5.3 Corporate Authority; Approval and Fairness. 
 (a) The Company has all requisite corporate power
and authority and has taken all corporate action necessary in order to execute, deliver and perform its obligations under this Agreement and, subject only to adoption of this Agreement by its stockholders by the Company Requisite Vote, to consummate
the Merger. The Company Requisite Vote is the only vote of the holders of any class or series of capital stock of the Company necessary to adopt, approve or authorize this Agreement and the Merger. Under the Charter, Bylaws and applicable Law, the
Company’s stockholders may provide the Company Requisite Vote by written consent in lieu of a stockholder meeting. The form of written consent attached hereto as Exhibit B is a form sufficient for delivery of a valid stockholder approval
of the Merger by written consent under the Charter, Bylaws and applicable Law. If Parent holds of record shares of Company capital stock representing a majority of the outstanding voting power of the then outstanding shares of Common Stock and
Series B Stock, voting together as a single class, at the time Parent executes a written consent in the form attached hereto as Exhibit B, such written consent will constitute the Company Requisite Vote. This Agreement has been duly and
validly executed and delivered by the Company and, assuming due authorization, execution and delivery hereof by Parent and Merger Sub, constitutes a valid and binding agreement of the Company enforceable against the Company in accordance with its
terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Laws of general applicability relating to affecting creditors’ rights and to general equity principles. 
  

 10 

 (b) (i) The Special Committee has been duly authorized and constituted, (ii) the Special
Committee, at a meeting thereof duly called and held on February 21, 2007, unanimously (A) determined that this Agreement and the Merger are fair to and in the best interests of the Company and its stockholders (other than the Interested
Stockholders), (B) recommended that the Company Board approve and declare advisable this Agreement and the Merger and (C) resolved to recommend that the Company Board submit this Agreement for adoption by the stockholders of the Company
and recommend that such stockholders adopt this Agreement and approve the Merger and (iii) the Company Board, at a meeting thereof duly called and held on February 21, 2007, by the unanimous vote of those directors adopting the applicable
resolutions, (A) determined that this Agreement and the Merger are fair to and in the best interests of the Company and its stockholders (other than the Interested Stockholders), (B) approved and declared advisable this Agreement and the
Merger and (C) resolved to submit this Agreement for adoption by the stockholders of the Company and recommend that such stockholders adopt this Agreement and approve the Merger. 
 5.4 Consents and Approvals; No Violations. 
 (a) No filing with or notice to, and no permit, authorization, registration, consent or approval of, any Governmental Entity is required on the part of the Company or any of its Subsidiaries for the execution, delivery and performance by
the Company of this Agreement or the consummation by the Company of the transactions contemplated hereby, except (i) any post-execution filings required under the Exchange Act, (ii) the filing of the Certificate of Merger pursuant to the
DGCL, (iii) FAS Clearance and (iv) such filings, notices, permits, authorizations, registrations, consents or approvals, the failure of which to make, give or obtain would not, individually or in the aggregate, reasonably be expected to
have a Company Material Adverse Effect. 
 (b) Neither the execution, delivery and performance of this Agreement by the Company nor the
consummation by the Company of the transactions contemplated hereby will (A) conflict with or result in any breach, violation or infringement of any provision of the respective certificate of incorporation or By-Laws (or similar governing
documents) or any resolutions of the respective boards of directors of the Company or of any its Subsidiaries, (B) result in a breach, violation or infringement of, or constitute (with or without due notice or lapse of time or both) a default
(or give rise to the creation of any Lien or any right of termination, amendment, cancellation or acceleration) under, any of the terms, conditions or provisions of any Material Contract, or (C) violate or infringe any Law applicable to the
Company or any of its Subsidiaries or any of their respective properties or assets, except in the case of (B) or (C) for breaches, violations, infringements, defaults or changes which would not, individually or in the aggregate, reasonably
be expected to have a Company Material Adverse Effect. 
 5.5 Compliance with Laws; Licenses. The Company and its Subsidiaries operate
their respective businesses in compliance with any Laws applicable to such businesses except for such noncompliance that would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. To the Knowledge
of the Company, no investigation or review by any Governmental Entity with respect to the Company or any of its Subsidiaries is pending or threatened, nor has any Governmental Entity provided written notice of an intention to conduct the same,
except for such investigations or reviews that would not, individually or in 

  

 11 

 
the aggregate, reasonably be expected to have a Company Material Adverse Effect. The Company and each of its Subsidiaries has all governmental permits,
licenses, franchises, variances, exemptions, orders issued or granted by a Governmental Entity and all other authorizations, consents and approvals issued or granted by a Governmental Entity necessary to conduct its business as presently conducted,
except those the absence of which would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. All the payments required in connection with the maintenance of such permits, licenses, franchises,
variances, exemptions, orders, authorizations, consents and approvals are current, except where the failure to make such payments would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect.

 5.6 No Default. Neither the Company nor any of its Subsidiaries is in default or violation (and no event has occurred which with
notice or the lapse of time or both would constitute a default or violation) of any term, condition or provision of (a) its certificate of incorporation or By-Laws (or similar governing documents) or (b) any Material Contract, except in
the case of clause (b) of this sentence for violations, breaches or defaults that would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. 
 5.7 Company Reports; Financial Statements. 
 (a) Each of the Company and its Subsidiaries has filed and furnished all forms, statements, reports and documents required to be filed or furnished by it with the SEC pursuant to applicable securities statutes, regulations, policies and
rules since January 1, 2005. The Company Reports were prepared in all material respects in accordance with the applicable requirements of the Securities Act and the Exchange Act and complied in all material respects with the then applicable
accounting standards. As of their respective dates (and, if amended or supplemented after giving effect to such amendment or supplement) the Company Reports did not contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading. There is no comment letter or request for information from the SEC with respect to any Company
Report that the Company has received that, to the Knowledge of the Company, remains outstanding. 
 (b) Each of the consolidated balance
sheets included in or incorporated by reference into the Company Reports (including the related notes and schedules) filed on or prior to the date of this Agreement fairly presents in all material respects, and if filed after the date of this
Agreement, will fairly present in all material respects, the consolidated financial position of the Company and its Subsidiaries, as of its date, and each of the consolidated statements of operations, cash flows and of changes in stockholders’
equity included in or incorporated by reference into the Company Reports (including any related notes and schedules) fairly presents in all material respects, and if filed on or after the date of this Agreement, will fairly present in all material
respects, the results of operations, retained earnings and changes in financial position, as the case may be, of the Company and its Subsidiaries for the periods set forth therein (subject, in the case of unaudited statements, to the omission of
notes required by GAAP and to normal year-end audit adjustments), in each case in accordance with GAAP consistently applied during the periods involved, except as may be noted therein. The Company maintains a system 

  

 12 

 
of internal controls over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) sufficient to provide reasonable assurances
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Company (A) maintains disclosure controls and procedures (as
defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) to ensure that material information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported
within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to the Company’s management as appropriate to allow timely decisions regarding required disclosure, and (B) has disclosed, based on its
most recent evaluation of such disclosure controls and procedures prior to the date hereof, to the Company’s auditors and the audit committee of the Company Board (1) any significant deficiencies and material weaknesses in the design or
operation of internal controls over financial reporting that are reasonably likely to adversely affect in any material respect the Company’s ability to record, process, summarize and report financial information and (2) any fraud, whether
or not material, that involves management or other employees who have a significant role in the Company’s internal controls over financial reporting. 
 (c) Since December 31, 2005, (i) to the Knowledge of the Company, neither the Company nor any of its Subsidiaries nor any director, officer, employee, auditor, accountant or representative of the Company or
any of its Subsidiaries has received in writing, nor does the Company have any Knowledge of, any material complaint, allegation, assertion or claim, regarding the accounting or auditing practices, procedures, methodologies or methods of the Company
or any of its Subsidiaries or their respective internal accounting controls, including any material complaint, allegation, assertion or claim that the Company or any of its Subsidiaries has engaged in questionable accounting or auditing practices,
and (ii) to the Knowledge of the Company, no attorney representing the Company or any of its Subsidiaries, whether or not employed by the Company or any of its Subsidiaries, has reported to the Company Board or any committee thereof or to the
General Counsel or Chief Executive Officer of the Company evidence of a material violation of securities Laws, breach of fiduciary duty or similar violation by the Company or any of its officers, directors, employees or agents. 
 (d) The audited balance sheet and audited profit and loss accounts for Company Sub as at December 31, 2005 and unaudited balance sheet and unaudited
profit and loss accounts for Company Sub as at December 31, 2006 have been prepared in accordance with Russian accounting standards and fairly and accurately present the material assets and liabilities (whether actual or contingent), in each
case in accordance with Russian accounting standards, of the Company Sub’s business. 
 (e) Neither the Company nor any of its
Subsidiaries has entered into or proposed to enter into loans or other extensions of credit to officers or directors or other arrangements that are covered by Section 402 of the Sarbanes-Oxley Act (including those to which an exemption may
apply) or entered into or proposed to enter into any arrangement or transaction with any person, which arrangement or transaction would be required to be disclosed under Item 404 of Regulation S-K. 
  

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 5.8 No Undisclosed Material Liabilities. There are no liabilities or obligations of the Company or
any of its Subsidiaries of any kind whatsoever, whether accrued, contingent, fixed, matured or otherwise that the Company would be required by GAAP to set forth on a consolidated balance sheet of the Company and its Subsidiaries or in the notes
thereto, except (a) liabilities reflected or reserved against or disclosed in the Company Reports filed by the Company prior to the date hereof, (b) liabilities or obligations incurred in the ordinary course of business consistent with
past practices since December 31, 2005, or (c) liabilities and obligations incurred under contracts to which the Company or any of its Subsidiaries is a party or by which any of them or any of their respective properties or assets may be
bound, other than liabilities or obligations arising from a breach or default under any such contract. 
 5.9 Litigation. There is no
Action pending to which the Company or any of its Subsidiaries, is a party or, to the Knowledge of the Company, threatened in writing to the Company against the Company or any of its Subsidiaries, except as would not, individually or in the
aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any of its Subsidiaries is subject to any outstanding order, writ, injunction or decree, except as would not, individually or in the aggregate,
reasonably be expected to have a Company Material Adverse Effect. To the Knowledge of the Company, there is no Action pending to which any current or former officer or director of the Company or any of its Subsidiaries, in his or her capacity as
such, is a party or threatened in writing against any current or former officer or director of the Company or any of its Subsidiaries, in his or her capacity as such. 
 5.10 Material Contracts. 
 (a) All of the Material Contracts of the Company and its Subsidiaries are
in full force and effect, except as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Without limiting the foregoing sentence, each of the Material Contracts into which Company Sub has
entered that, at the time entered into, constituted a “major transaction” and/or an “interested party transaction” under the Russian Joint Stock Company Law, was approved as such prior to the entry into such Material Contract in
compliance with the approval procedures set forth in the Russian Joint Stock Company Law. 
 (b) Except as set forth on Schedule 5.10(b) of
the Company Disclosure Schedule: (i) there are no Material Contracts and (ii) there are no Contracts that purport to limit the ability of the Company or any Subsidiary to conduct their respective businesses in any geographic area or to
sell any goods to, or provide any services to, any party. 
 5.11 Absence of Certain Changes or Events. Since December 31, 2005,
each of the Company and its Subsidiaries has conducted its business only in the ordinary course of such business, and there has not been any change, development, event, effect, occurrence or non-occurrence affecting the business, assets,
liabilities, property, financial condition or results of operations of any of the Company and its Subsidiaries that individually or in the aggregate, has had or would reasonably be expected to have a Company Material Adverse Effect. 
  

 14 

 5.12 Employee Matters. 
 (a) All Benefit Plans have been maintained and administered in all material respects in accordance with their terms and applicable Law, and there are no
pending or, to the Knowledge of the Company, threatened claims, audits, investigations, inquiries or proceedings against the Benefit Plans, any related trusts, any Benefit Plan sponsor or plan administrator, or any fiduciary of the Benefit Plans
with respect to the operation of such plans (other than routine benefit claims). With respect to each Benefit Plan, the Company and each Company Subsidiary have prepared in good faith and timely filed all requisite governmental reports (which were,
to the Knowledge of the Company, true and correct as of the date filed). 
 (b) Without limiting anything in this Section 5.12, in the
case of Company Sub, except for pension payments required to be paid to the state under the Laws of the Russian Federation, Company Sub does not maintain or contribute to, has no obligation to contribute to, and has no liability under any pension,
severance, termination or similar Benefit Plan, or a pension plan sponsored by any ERISA Affiliate of the Company, providing benefits to any current or former employee, consultant, or director of Company Sub. Company Sub has timely made full payment
of all pension payments required to be paid to the state under the Laws of the Russian Federation. 
 (c) Each Benefit Plan that is intended
to qualify under Section 401 of the Internal Revenue Code of 1986, as amended (the “Code”), and each trust maintained pursuant thereto, has received a favorable determination or opinion letter from the Internal Revenue Service, and,
to the Knowledge of the Company, nothing has occurred with respect to the operation of any such Benefit Plan that could cause the loss of such qualification. 
 (d) Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby (either alone of in conjunction with another event, such as a termination of employment) will
(i) result in any payment becoming due to any current or former director or current or former employee of the Company or any of its Subsidiaries under any Benefit Plan or otherwise, (ii) increase any benefits otherwise payable under any
Company Benefit Plan, (iii) result in any acceleration of the time of payment or vesting of any such benefits, or (iv) result in an “excess parachute payment” under Section 280G of the Code. 
 (e) Without limiting the representations and warranties contained in Section 5.5, except as would not reasonably be expected to have, individually
or in the aggregate, a Company Material Adverse Effect, the Company and its Subsidiaries are in compliance with all applicable Laws relating to employment and employment practices, wages, hours and terms and conditions of employment. 
 (f) Without limiting the foregoing or any of the other representations and warranties of the Company in this Agreement, Company Sub has made all payments
(of any kind) to its employees in accordance with the terms and conditions of applicable employment contracts and paid or withheld all applicable Taxes applicable to such payments (including without limitation social taxes and income taxes).

  

 15 

 5.13 Intellectual Property. 
 (a) Except as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect, the Company and its
Subsidiaries are the lawful owners of or have valid licenses to use or otherwise exploit all Intellectual Property used in the conduct of the business of the Company and its Subsidiaries as currently conducted, and with respect to Intellectual
Property owned by the Company or its Subsidiaries, such Intellectual Property is owned free and clear of all Liens. Other than with respect to Intellectual Property licensed by the Company or a Subsidiary from another Person, none of the Company or
any of its Subsidiaries jointly owns, licenses or claims any right, title or interest with any other Person (including the Company or any other Subsidiary) of any Intellectual Property. No current or former officer, manager, director, stockholder,
member, employee, consultant or independent contractor of any of the Company or any of its Subsidiaries has any right, title or interest in, to or under any Intellectual Property material to the Company and its Subsidiaries and in which the Company
or any of its Subsidiaries has (or purports to have) any right, title or interest that has not been exclusively assigned or transferred to the Company or a Company Subsidiary. To the Knowledge of the Company, all registrations which are owned by the
Company or any Company Subsidiary for Intellectual Property are valid and in force (with all related filing fees having been duly paid). 
 (b) To the Knowledge of the Company, the conduct of the business of the Company and its Subsidiaries as presently conducted thereby does not infringe upon the Intellectual Property of any third party. There are no claims pending or, to the
Knowledge of the Company, threatened, and neither the Company nor any of its Subsidiaries has received any written notice of a material third-party claim, in each case alleging that the conduct of the business of the Company and its Subsidiaries
infringes upon the Intellectual Property of any third party or challenging the ownership, use, validity or enforceability of any Intellectual Property. 
 (c) To the Knowledge of the Company, except as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect, no third party is infringing or otherwise violating any
Intellectual Property owned by the Company or any of its Subsidiaries, and no such claims have been brought against any third party by the Company or any of its Subsidiaries. 
 5.14 Taxes. Except as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect: (i) the
Company and each of its Subsidiaries have prepared in good faith and duly and timely filed (taking into account any extension of time within which to file) all Tax Returns required to be filed by any of them and all such filed Tax Returns are
complete and accurate in all respects; (ii) the Company and each of its Subsidiaries have paid all Taxes, or have withheld and remitted to the appropriate taxing authority all Taxes due and payable or, where payment is not yet due or where such
Taxes are being challenged in good faith, have established in accordance with GAAP an adequate accrual for all Taxes through the end of the last period covered by the financial statements contained in the Company Reports filed on or prior to the
date of this Agreement; (iii) the Company and each of its Subsidiaries have not waived any statute of limitations with respect to Taxes which has not since expired or agreed to any extension of time with respect to a Tax assessment or
deficiency which has not since expired; (iv) neither the Company nor any of its Subsidiaries (A) is or has 

  

 16 

 
ever been a member of an affiliated group (other than a group the common parent of which is the Company or consisting solely of some or all of the
Company’s Subsidiaries) filing a consolidated tax return or (B) has any liability for Taxes of any person (other than the Company and its Subsidiaries) arising from the application of Treasury Regulation Section 1.1502-6 or any
analogous provision of state, local or foreign law, or as a transferee or successor, by contract, or otherwise; (v) none of the Company or any of its Subsidiaries is a party to, is bound by or has any obligation under any Tax sharing or Tax
indemnity agreement or similar contract or arrangement; (vi) neither the Company nor any of its Subsidiaries has engaged in any “listed transaction” under Section 6011 of the Code and the regulations thereunder; (vii) all of
the payments by the Company and its Subsidiaries to agents, consultants and other third parties have been in payment of bona fide fees and commissions and not as a payment described in Section 162(c) of the Code or any similar provision under
foreign law; (viii) no claim has ever been made in writing by any authority in a jurisdiction where the Company does not file a Tax Return that the Company is or may be subject to taxation by that jurisdiction; and (ix) as of the date of
this Agreement, there are not pending or, to the Knowledge of the Company, threatened in writing, any audits, examinations, investigations or other proceedings in respect of Taxes or Tax matters with respect to the Company or any of its
Subsidiaries. 
 5.15 Takeover Statutes; Charter Provisions. The Company Board, upon recommendation by the Special Committee, has
approved the Merger and this Agreement. No additional approval is required to render inapplicable to the Merger and this Agreement the limitations on business combinations contained in Section 203 of the DGCL to the extent applicable or, to the
Knowledge of the Company, any other restrictive provision of any “fair price,” “moratorium,” “control share acquisition,” “interested stockholder” or other similar anti-takeover statute or regulation
(“Takeover Statute”) or restrictive provision of any applicable anti-takeover provision in the Company’s certificate of incorporation or By-Laws. No other state takeover statute or similar statute or regulation or other
comparable takeover provision of the Company’s certificate of incorporation or By-Laws applies to the Merger, this Agreement or any of the transactions contemplated by this Agreement. 
 5.16 Opinion of Financial Advisor. Lazard Frères & Co. LLC (the “Financial Advisor”) has delivered
its opinion to the Special Committee to the effect that, as of the date of such opinion, and subject to the assumptions, qualifications and limitations set forth therein, the Common Stock Merger Consideration to be received by the holders of shares
of Common Stock (other than as set forth in such opinion) was fair, from a financial point of view, to such holders. A true and complete copy of the written opinion will be provided to Parent as soon as practicable after the date hereof solely for
information purposes. 
 5.17 Brokers. No broker, finder or investment banker (other than the Financial Advisor, all of whose fees
expenses and other payments are obligations solely of the Company) is entitled to any brokerage, finders’ or other fee or commission from the Company or any of its Subsidiaries in connection with the transactions contemplated hereby based upon
arrangements made by or on behalf of the Company. Section 5.17 of the Company Disclosure Schedule sets forth all fees payable by the Special Committee, the Company or any of its Subsidiaries to the Financial Advisor in connection with the
negotiation, approval and execution of this Agreement, the performance of the Company’s obligations hereunder, and the consummation of the transactions contemplated hereby, and all arrangements for reimbursement by the Special Committee, the
Company or any of its Subsidiaries of the expenses of the Financial Advisor. 
  

 17 

 5.18 Information Supplied. None of the information supplied or to be supplied by the Company or
any of its Subsidiaries for inclusion or incorporation by reference in (i) the Schedule 13E-3, or (ii) the Company Information Statement will, at the time such document is filed with the SEC or any other regulatory authority, at any time
it is amended or supplemented or at the time it is first published, sent or given to the Company’s stockholders, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which they are made, not misleading. The Schedule 13E-3, the Company Information Statement and any other SEC filing in connection with the Merger will comply (with respect to
the Company and its Subsidiaries) in all material respects, as to form, with the applicable requirements of the Exchange Act and the rules and regulations thereunder. No representation or warranty is made by the Company with respect to statements
made or incorporated by reference in the Schedule 13E-3 or the Company Information Statement based on information supplied by Parent in writing specifically for inclusion or incorporation by reference therein. 
 ARTICLE VI 
 REPRESENTATIONS AND
WARRANTIES OF PARENT AND MERGER SUB 
 Parent and Merger Sub hereby represent and warrant to the Company as follows: 
 6.1 Organization, Good Standing and Qualification. Each of Parent and Merger Sub is a corporation or other legal entity duly organized, validly
existing and in good standing under the Laws of the jurisdiction of its incorporation or organization and has all requisite corporate or other business entity power and authority to own, lease and operate its properties and assets and to carry on
its businesses as now being conducted and is qualified to do business and is in good standing as a foreign corporation or other business entity in each jurisdiction where the ownership, leasing or operation of its properties or assets or conduct of
its business requires such qualification, except where the failure to be so qualified or in good standing or to have such power or authority, would not, individually or in the aggregate, reasonably be expected to have a Parent Material Adverse
Effect. Parent has heretofore delivered or made available to the Company accurate and complete copies of the certificate of incorporation and bylaws (or similar governing documents), as currently in effect, of Parent and Merger Sub. 
 6.2 Authority Relative to This Agreement. Each of Parent and Merger Sub has all necessary corporate power and authority, and has taken all action
necessary, to execute, deliver and perform its obligations under this Agreement and to consummate the transactions contemplated hereby in accordance with the terms hereof except for the adoption of this Agreement by Parent in its capacity as sole
stockholder of Merger Sub, which adoption shall be effected by written consent promptly following the execution of this Agreement. This Agreement has been duly and validly executed and delivered by Parent and Merger Sub and, assuming due
authorization, execution and delivery hereof by the Company, constitutes a valid and binding agreement of Parent and Merger Sub, enforceable against Parent and Merger Sub in accordance with its terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability relating to affecting creditors’ rights and to general equity principles. 
  

 18 

 6.3 Consents and Approvals. No filing with or notice to, and no permit, authorization,
registration, consent or approval of, any Governmental Entity is required on the part of Parent or Merger Sub or any of their Subsidiaries for the execution, delivery and performance by Parent and Merger Sub of this Agreement or the consummation by
Parent or Merger Sub of the transactions contemplated hereby, other than (i) any post-execution filings required under the Exchange Act, (ii) the filing of the Certificate of Merger pursuant to the DGCL, (iii) clearance required from
the Federal Antimonopoly Service of the Russian Federation under the Laws of the Russian Federation, or (iv) such filings, notices, permits, authorizations, registrations, consents or approvals, the failure of which to make, give or obtain
would not, individually or in the aggregate, reasonably be expected to have a Parent Material Adverse Effect. 
 6.4 Merger Sub. All
of the issued and outstanding capital stock of Merger Sub is, and at the Effective Time will be, owned by Parent or a direct or indirect wholly-owned Subsidiary of Parent. Merger Sub has not conducted any business prior to the date hereof and has
no, and prior to the Effective Time will have no, assets, liabilities or obligations of any nature other than those incident to its formation and pursuant to this Agreement and the Merger and the other transactions contemplated by this Agreement.

 6.5 Financing. Parent will have, as of the date on which it exercises its warrant to purchase shares of Series B Stock as described
in Section 7.4(a) below, available cash or other liquid assets to exercise such warrant. Additionally, Parent will have, as of the Closing Date, available cash or other liquid assets to (a) pay the aggregate Merger Consideration in full,
and (b) fulfill its covenant to ensure the Surviving Corporation can make all Option Cash Out Payments and Warrant Cash Out Payments, as described in Section 7.11. 
 6.6 Information Supplied. None of the information supplied or to be supplied by Parent or Merger Sub for inclusion or incorporation by reference
in (i) the Schedule 13E-3, or (ii) the Company Information Statement will, at the time such document is filed with the SEC or any other regulatory authority, at any time it is amended or supplemented or at the time it is first published,
sent or given to the Company’s stockholders, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances
under which they are made, not misleading. The Schedule 13E-3, the Company Information Statement and any other SEC filing in connection with the Merger will comply (with respect to Parent and Merger Sub) in all material respects, as to form, with
the applicable requirements of the Exchange Act and the rules and regulations thereunder. No representation or warranty is made by Parent or Merger Sub with respect to statements made or incorporated by reference in the Schedule 13E-3 or the
Company Information Statement based on information supplied by the Company in writing specifically for inclusion or incorporation by reference therein. 
 6.7 HSR Act. For the purposes of the Hart-Scott-Rodino Antitrust Improvement act of 1976, as amended, and the rules and regulations promulgated thereunder (collectively, the “HSR Act”), and
assuming the accuracy of the Company’s representations in Section 5.2: (i)

  

 19 

 
Parent beneficially owns, directly and through its Controlling interest in Moskovskaya Telecommunikatsionnaya Corporatsiya, a majority of the outstanding
voting securities of the Company, and (ii) the Merger and the transactions contemplated by this Agreement are not subject to the premerger notification and waiting period requirements of the HSR Act. 
 6.8 No Current Intention to Sell Company. As of the date of this Agreement, and to the Parent’s knowledge, neither the Parent nor any Person
Controlling Parent has the current intention to (i) sell, transfer or otherwise dispose of the shares of the capital stock of the Company (or, following the Effective Time, of the Surviving Corporation); (ii) following the Effective Time,
sell, lease, assign, transfer or otherwise dispose of all or a substantial portion of the Surviving Corporation’s assets; or (iii) following the Effective Time, cause the Surviving Corporation to consolidate with or merge into another
Person or permit one or more other Persons to consolidate with or merge into the Surviving Corporation, in each case except pursuant to this Agreement or pursuant to a transaction exclusively with one or more of Parent’s affiliates. 

6.9 Brokers. No broker, finder or investment banker is entitled to any brokerage, finders’ or other fee or commission from the Company or
any of its Subsidiaries in connection with the transactions contemplated hereby based upon arrangements made by or on behalf of Parent or Merger Sub. 
 ARTICLE VII 
 COVENANTS 
 7.1 Interim Operations. 
 (a) Except
as set forth in the corresponding section of the Company Disclosure Schedule or otherwise as expressly provided herein, subject to applicable Law, the Company covenants and agrees as to itself and its Subsidiaries that, from the date of this
Agreement until the Effective Time, the business of the Company and its Subsidiaries shall be conducted only in the ordinary course and, to the extent consistent therewith, the Company and its Subsidiaries shall use their respective commercially
reasonable efforts to preserve their business organizations intact and maintain their existing relations and goodwill with customers, suppliers, distributors, creditors, lessors, key employees and business associates and keep available the services
of the present key employees of the Company and its Subsidiaries. 
 (b) Without limiting the generality of Section 7.1(a) and in
furtherance thereof, except as set forth in the corresponding section of the Company Disclosure Schedule or as otherwise expressly provided herein, from the date of this Agreement until the Effective Time, the Company shall not and shall not permit
its Subsidiaries to (unless Parent shall otherwise approve in writing, in its sole discretion): 
 (i) adopt or propose any change in its
certificate of incorporation or By-Laws (or similar governing documents); 
  

 20 

 (ii) merge or consolidate the Company or any of its Subsidiaries with any other Person, except for any
such transactions among wholly-owned Subsidiaries of the Company; 
 (iii) acquire assets outside of the ordinary course of business from
any Persons with a purchase price in excess of $100,000 in the aggregate except pursuant to Contracts in effect as of the date of this Agreement; 
 (iv) other than (A) as required by the terms of Contracts in effect as of the date of this Agreement, (B) upon the exercise of outstanding Company Options or Company Common Warrants or warrants to purchase Series B Stock,
(C) pursuant to the terms of the Debentures (to the extent required by such terms) or (D) upon conversion of outstanding shares of Series A Stock and Series B Stock, in each case, in accordance with their terms, issue, sell, pledge,
dispose of, grant, transfer, lease, license, guarantee, encumber, or authorize the issuance, sale, pledge, disposition, grant, transfer, lease, license, guarantee or encumbrance of, any shares of capital stock of the Company or any Company
Subsidiary (other than the issuance of shares by a wholly-owned Subsidiary of the Company to the Company or another wholly-owned Subsidiary), or securities convertible or exchangeable or exercisable for any shares of such capital stock, or any
options, warrants or other rights of any kind to acquire any shares of such capital stock or such convertible or exchangeable securities; 
 (v) declare, set aside, make or pay any dividend or other distribution, payable in cash, stock, property or otherwise, with respect to any of its capital stock (except for (i) dividends or other distributions by any direct or indirect
wholly-owned Subsidiary of the Company to the Company or to any other direct or indirect wholly-owned Subsidiary of the Company, (ii) periodic dividends and other periodic distributions by non-wholly-owned Subsidiaries of the Company in the
ordinary course of business, and (iii) declaration and payment of scheduled dividends with respect to the Series A Stock); 
 (vi)
reclassify, combine, split, subdivide or redeem, purchase or otherwise acquire, directly or indirectly, any of its capital stock or securities convertible or exchangeable into or exercisable for any shares of its capital stock; 
 (vii) incur any third-party indebtedness for borrowed money or guarantee indebtedness or any other obligation of another Person other than in the
ordinary course of business consistent with past practice and in compliance with the Company’s existing Contracts; 
 (viii) enter into
any Contract that would have been a Material Contract had it been entered into prior to the execution of this Agreement, other than any such Contract (A) entered into in the ordinary course of business or (B) providing for any capital
expenditure to the extent permitted by Section 7.1(c)(ii); 
 (ix) other than in the ordinary course of business, amend or modify in
any material respect, or terminate or waive any material right or benefit under, any Material Contract; 
  

 21 

 (x) make any changes with respect to accounting policies or practices, except as required by changes in
GAAP or by Law; 
 (xi) settle any litigation or other proceedings before or threatened to be brought before a Governmental Entity or
arbitral proceeding for an amount payable by or on behalf of the Company or any Subsidiary in excess of $100,000 in the aggregate for all such litigation or proceedings (exclusive of any amounts to be received by the Company in reimbursement of such
settlement amount, whether under any insurance policy or indemnity, other than such amounts that are contested) or which would be reasonably likely to have any material adverse impact on the operations of the Company or any of its Subsidiaries or on
any current or future litigation or other proceeding of the Company or any of its Subsidiaries; 
 (xii) sell, lease, license or otherwise
dispose of any assets of the Company or its Subsidiaries except for sales of (A) products or services provided in the ordinary course of business or (B) other assets in aggregate amount not in excess of $100,000 in the aggregate, and other
than pursuant to Contracts in effect as of the date of this Agreement; 
 (xiii) engage in the conduct of any new line of business; or

 (xiv) agree, resolve or commit to do any of the foregoing. 
 (c) Without limiting the generality of Section 7.1(a) and in furtherance thereof, except as set forth in the corresponding section of the Company Disclosure Schedule or as otherwise expressly provided herein,
from the date of this Agreement until the Effective Time, the Company shall not and shall not permit its Subsidiaries to (unless Parent shall otherwise approve in writing, which approval shall not be unreasonably withheld or delayed and which shall
be subject to the procedures set forth on Schedule 7.1(c) of the Company Disclosure Schedule): 
 (i) other than pursuant to Contracts in
effect as of the date of this Agreement, make any loan, advance or capital contribution to or investment in any Person (other than a wholly-owned Subsidiary of the Company) outside the ordinary course of business; 
 (ii) make or authorize any capital expenditure in excess of $100,000 in the aggregate; 
 (iii) except as required by Law, make any material Tax election or take any material position on any material Tax Return filed on or after the date of
this Agreement or adopt any material method therefor that is inconsistent with elections made, positions taken or methods used in preparing or filing similar Tax Returns in prior periods; 
 (iv) other than pursuant to Contracts in effect as of the date of this Agreement or as otherwise required by Law, (A) enter into any new employment
or compensatory agreements with, or increase the compensation and employee benefits of, any employee, consultant, or director of the Company or any of its Subsidiaries (including entering into any bonus, severance, change of control, termination,
reduction-in-force or consulting agreement or other employee benefits arrangement or agreement pursuant to which such person has the right to any form of compensation from the Company or any of its Subsidiaries), (B) hire 

  

 22 

 
any employee to fill a position at the level of (i) executive officer or (ii) vice president or above who reports directly to an executive officer,
or (C) adopt or amend in any respect, or accelerate vesting or payment under, any Benefit Plan in the case of clauses (A) and (C) above other than in the ordinary course of business consistent with past practice; or 
 (v) agree, resolve or commit to do any of the foregoing. 
 7.2 Acquisition Proposals. 
 (a) The Company agrees that it shall not, it shall cause each its
Subsidiaries and their respective officers and directors not to, and it shall use its reasonable best efforts to cause its and its Subsidiaries’ respective employees, agents and representatives (including any investment banker, attorney,
consultant or accountant retained by it (collectively, “Representatives”)) not to, directly or indirectly, initiate, solicit or knowingly encourage or facilitate any inquiries or the making of any proposal or offer with respect to:
(i) a merger, reorganization, share exchange, consolidation or similar transaction involving the Company or any of its Subsidiaries; (ii) any purchase of more than 15% of the voting power of the then outstanding equity securities of the
Company or any of its Subsidiaries, or of the right to obtain more than 15% of the voting power of the then outstanding equity securities of the Company, or of more than 15% of the assets of the Company and its Subsidiaries (taken as a whole, based
on consolidated book value of the assets as recorded on the Company’s most recent balance sheet); (iii) the adoption by the Company of a plan of liquidation or recapitalization; or (iv) any combination of the foregoing (any such
proposal or offer being hereinafter referred to as an “Acquisition Proposal”). The Company further agrees that it shall not, it shall cause each of its Subsidiaries and their respective officers and directors not to, and it shall
use its reasonable best efforts to cause its and its Subsidiaries’ Representatives not to, directly or indirectly, engage in any negotiations concerning, or provide any information or data to, or have any discussions with, any Person relating
to an Acquisition Proposal, or otherwise knowingly encourage or facilitate any effort or attempt to make or implement an Acquisition Proposal; provided, however, that nothing contained in this Agreement shall prevent the Company or the
Special Committee or the Company Board from (x) complying with its disclosure obligations under Sections 14d-9 and 14e-2 of the Exchange Act with regard to an Acquisition Proposal; provided that if such disclosure has the effect of
withdrawing, modifying or qualifying the Recommendation in a manner adverse to Parent or the approval or recommendation of this Agreement by the Special Committee or the Company Board, Parent shall have the right to terminate this Agreement to the
extent set forth in Section 9.4 of this Agreement; and (y) at any time prior to, but not after, the condition set forth in Section 8.1(a) has been satisfied, (A) providing information in response to a request therefor by a Person
who has made an unsolicited bona fide written Acquisition Proposal that is or would reasonably be expected to lead to a Superior Proposal (as defined below) (a “Section 7.2(a)(y)(A) Acquisition Proposal”) if (x) the Company
receives from the Person so requesting such information an executed confidentiality agreement on customary terms no less favorable to the Company than the confidentiality agreement dated December 13, 2006 between Parent and the Company (the
“Confidentiality Agreement”) and (y) the Company furnishes to Parent, concurrently with furnishing it to such Person, the same information to the extent it has not been previously furnished to Parent, or (B) engaging in
any negotiations or discussions with any Person who has made an unsolicited bona fide written Section 7.2(a)(y)(A) Acquisition Proposal if the Company receives from such Person an executed confidentiality 

  

 23 

 
agreement as described in (A) above, in each case if and only to the extent that in each such case referred to in clause (A) or (B) above, the
Company shall have complied with all terms of this Section 7.2 and the Company Board or the Special Committee, as applicable, determines in good faith, after consulting with outside legal counsel, that the failure to take such actions is
reasonably likely to constitute a violation of its respective fiduciary duties to the Company’s stockholders (other than the Interested Stockholders) under applicable Law (including the Company Board’s and Special Committee’s duties
of good faith and candor to the Company’s stockholders). For purposes of this Agreement, “Superior Proposal” means an Acquisition Proposal involving the direct or indirect acquisition of (i) all of the shares of the
outstanding capital stock of the Company (provided however that such Acquisition Proposal is not required to be conditioned upon the acquisition of any shares of capital stock held by the Interested Stockholders), (ii) in excess of 50% of the
voting power of the shares of Common Stock outstanding and issuable upon exercise and/or conversion of outstanding securities exercisable and/or convertible into shares of Common Stock, or (iii) all or substantially all of the assets of the
Company, in each case which the Company Board or the Special Committee, as applicable, determines in good faith (after consideration of all relevant factors and consultation with its financial advisor and outside legal counsel) would, if
consummated, result in a transaction more favorable to the Company’s stockholders from a financial point of view (other than the Interested Stockholders) than the transaction contemplated by this Agreement after taking into account any changes
hereto agreed to by Parent. 
 (b) The Company agrees that it shall immediately cease and cause to be terminated any existing activities,
discussions or negotiations with any Person conducted heretofore with respect to any Acquisition Proposal. The Company agrees that it shall take the necessary steps to promptly inform the Company’s and its Subsidiaries’ officers and
directors (other than any directors designated by Parent) and their respective Representatives of the obligations undertaken in this Section 7.2. The Company shall notify Parent of the Company’s receipt of: (i) any Acquisition
Proposal (including the terms of such Acquisition Proposal and the identity of the Person making such Acquisition Proposal), (ii) any request for information relating to the Company (including non-public information) or for access to the
properties, books or records of the Company by any Person that has made an Acquisition Proposal, or (iii) an amendment to a previously disclosed Acquisition Proposal (including the terms of such amendment), in each case promptly (but in any
event no later than two (2) Business Days) after such receipt. The Company will keep Parent apprised of the status and details of each Acquisition Proposal on a current basis. The Company agrees promptly to request the return or destruction of
all information and materials provided prior to the date of this Agreement by it, its affiliates (other than Parent) or their respective Representatives with respect to the consideration or making of any Acquisition Proposal. 
 7.3 Information Statement; Stockholder Consent Solicitation; Recommendation; Record Date. 
 (a) The Company shall (i) as promptly as practicable following the date of this Agreement, prepare and file with the SEC (after Parent and Merger Sub
have had a reasonable opportunity to review and comment on) an information statement (together with any amendments thereto, the “Company Information Statement”) in preliminary form relating to the Merger and the other transactions
contemplated hereby, (ii) notify Parent promptly of the receipt 

  

 24 

 
of any comments from the SEC or its staff and of any request by the SEC or its staff for amendments or supplements to the Company Information Statement or
for additional information and shall supply Parent with copies of all correspondence between the Company or any of its Representatives, on the one hand, and the SEC or its staff, on the other hand, with respect to the Company Information Statement,
(iii) use its commercially reasonable efforts to have cleared by the SEC, and shall thereafter mail to its stockholders as promptly as reasonably practicable, the Company Information Statement, and (iv) otherwise use commercially
reasonable efforts to comply with all requirements of Law applicable to the Merger and the requirement of the DGCL that the Company’s stockholders be notified of action taken by written consent of the holders of a majority of the voting power
of the then outstanding voting securities of the Company. Parent and Merger Sub shall cooperate with the Company in connection with the preparation and filing of the Company Information Statement, including furnishing the Company upon request with
any and all information regarding Parent, Merger Sub or their respective affiliates, the plans of such Persons for the Surviving Corporation after the Effective Time, and all other matters and information as may be required to be set forth in the
Company Information Statement under the Exchange Act or the rules and regulations promulgated thereunder, including without limitation Rule 13e-3. The Company shall provide Parent and Merger Sub a reasonable opportunity to review and comment upon
the Company Information Statement, or any amendments or supplements thereto, or any SEC comments received with respect thereto, prior to filing the same with the SEC. 
 (b) In connection with the filing of the Company Information Statement, the Company, Parent and Merger Sub shall cooperate to (i) concurrently with the preparation and filing of the Company Information Statement,
jointly prepare and file with the SEC the Schedule 13E-3 (together with any amendments thereto, the “Schedule 13E-3”) relating to the Merger and the other transactions contemplated hereby and furnish to each other all information
concerning such party as may be reasonably requested in connection with the preparation of the Schedule 13E-3, (ii) respond as promptly as reasonably practicable to any comments received from the SEC with respect to such filings and shall
consult with each other prior to providing such response, (iii) as promptly as reasonably practicable after consulting with each other, prepare and file any amendments or supplements necessary to be filed in response to any SEC comments or as
required by Law, (iv) have cleared by the SEC the Schedule 13E-3 and (v) as promptly as reasonably practicable, to the extent required by applicable Law, prepare, file and distribute to the Company stockholders any supplement or amendment
to the Schedule 13E-3 if any event shall occur which requires such action. 
 (c) Neither the Company Board nor the Special Committee shall
modify, qualify or withdraw its recommendation of or relating to the Merger or adoption of this Agreement by the holders of shares of voting capital stock of the Company (such recommendation being the “Recommendation”), the
Recommendation shall be included in the Company Information Statement and the Schedule 13E-3, and the Company Board shall take all lawful action to solicit the adoption of this Agreement by the holders of shares of voting capital stock of the
Company. Notwithstanding the foregoing, the Company Board or the Special Committee may withdraw or modify the Recommendation and the Company shall not be required to include the Recommendation in the Company Information Statement or the Schedule
13E-3, or, if already so included, shall be permitted to amend or modify the same, in each case to the extent that the Company Board or the Special Committee determines in good faith, after 

  

 25 

 
consulting with outside legal counsel, that its failure to take such action is reasonably likely to constitute a violation of its respective fiduciary duties
to the Company’s stockholders (other than the Interested Stockholders) under applicable Law (including the Company Board’s and the Special Committee’s duties of good faith and candor to the Company’s stockholders); provided,
however, that prior to such withdrawal or modification, Parent shall have had written notice of the Company Board’s or the Special Committee’s, as applicable, intention to take the action referred to in this sentence at least two
(2) Business Days prior to the taking of such action by the Company Board or the Special Committee, as applicable. Notwithstanding any withdrawal or modification of the Recommendation, the Company shall submit the Agreement and the transactions
contemplated hereby to the holders of shares of voting capital stock of the Company for adoption and comply with Section 7.3(d) and Section 7.3(e), below. 
 (d) The Company shall establish in accordance with the DGCL one or more dates (each a “Record Date”) for the delivery of written consents or casting of votes at a special meeting of the Company’s
stockholders on such date as Parent shall determine after the date hereof after consultation with the Company, it being the agreement of the parties to this Agreement that the Record Date established for the purpose of Section 7.4(c) shall be a
date determined with the intention that the Written Consent shall be delivered by Parent (assuming compliance by the Company with its obligations under Sections 7.4(a) and (b)) as soon as reasonably practicable following the 20th SEC Business
Day from the date on which the definitive Company Information Statement is first mailed to the Company’s stockholders and filed as an amendment to the Schedule 13e-3. 
 (e) Whether or not Parent has requested a Record Date under Section 7.3(d), if requested by Parent, the Company shall convene, as promptly as
practicable after receipt of such request by Parent, a special meeting of the Company’s stockholders for the purpose of voting on the Merger on a date requested by Parent, provided that such date is prior to the Termination Date and permits the
Company to comply with its Charter, Bylaws and all applicable Law with respect to notice of and conduct of such a meeting. 
 7.4 Warrant
Exercise and Conversion of Series B Stock; Delivery of Consent. 
 (a) On or prior to the Record Date established for the purposes of this
Section 7.4, Parent shall execute and deliver (i) a written election to exercise that portion of its warrant to purchase Series B Stock that, based solely on the certificate provided by the Company pursuant to Section 7.4(b), below,
will ensure that, after such exercise and the conversion of the Series B Stock then held of record by Parent into shares of Common Stock, Parent shall, together with the shares of Common Stock it already holds of record, directly hold of record at
least a majority of the voting power of the then outstanding shares of voting capital stock of the Company, (ii) the warrant certificate representing the warrant to be so exercised, (iii) payment of the exercise price under the warrant in
immediately available funds for the purchase of such shares of Series B Stock issuable upon such warrant exercise, and (iv) a written request to convert all of the shares of Series B Stock issuable upon such warrant exercise, above, effective
immediately following the issuance of such shares of Series B Stock. Notwithstanding any terms or conditions in the warrants to purchase Series B Stock so exercised, the Company shall promptly (and no later than the Business Day prior to the Record
Date) following the Company’s receipt of the items listed above facilitate the issuance of the Series B Stock upon the warrant exercise described in Section 7.4(a)(i), 

  

 26 

 
(ii) and (iii) above, and facilitate the issuance by the Company’s Common Stock transfer agent to Parent of the Common Stock issuable upon the
conversion of shares of Series B Stock as described in Section 7.4(a)(iv) and accordingly ensure that Parent can vote such shares of the Company’s Common Stock on the Record Date. 
 (b) Parent may request at any time after the date hereof that the Company deliver a certification executed by an officer of the Company certifying, as of
a date specified in such request, as to (i) the number of each class or series of then issued and outstanding shares of capital stock of the Company and the voting power of such shares, (ii) the number of each class or series of shares of
capital stock of the Company then owned of record by Parent and the voting power of such shares, (iii) all then outstanding securities exercisable and/or convertible into shares of voting Common Stock; (iv) whether, as of the time of the
delivery of the certificate, the issuance of shares of common stock following the exercise of any exercisable securities or the conversion of any convertible securities is pending. The Company shall deliver such certificate no later than 5:00 p.m.
Eastern time on the second Business Day after the later of (x) the date of Parent’s request or (y) the date specified in Parent’s request. Furthermore, if, at any time after the date of this Agreement, the Company issues to any
Person other than Parent any shares of Common Stock upon the conversion of any convertible securities or upon exercise of any exercisable securities, the Company shall promptly notify Parent of such issuance, in writing. 
 (c) Parent shall execute and deliver to the Company as soon as practicable, and in any event not later than the three Business Days, after a Record Date
established under Section 7.3(d) for the delivery of written consents, and the Company shall accept from Parent, a written consent of the Company’s stockholders to the adoption of this Agreement and the Merger in the form attached hereto
as Exhibit B (the “Written Consent”) for the purpose of obtaining the Company Requisite Vote in reliance on the certificate delivered by the Company pursuant to Section 7.4(a). 
 (d) Following the delivery of the Written Consent, the Company shall comply with Section 228(e) of the DGCL. 
 7.5 Commercially Reasonable Efforts; Cooperation. 
 (a) Upon the terms and subject to the conditions of this Agreement, each of Parent, Merger Sub and the Company agrees to use its commercially reasonable efforts to take, or cause to be taken, all actions, and to do,
or cause to be done, all things necessary, proper or advisable on its part under this Agreement and any applicable Laws to consummate and make effective the Merger and the other transactions contemplated hereby as promptly as practicable including,
but not limited to, (i) the preparation and filing of all forms, registrations, notifications and notices required to be filed to consummate the transactions contemplated hereby (including making or causing to be made the filings required under
any applicable Laws in foreign jurisdictions governing antitrust or merger control matters as promptly as practicable and in any event, within ten Business Days after the date of this Agreement) and the taking of such actions as are necessary to
obtain any requisite approvals, consents, orders, exemptions or waivers by any third party or Governmental Entity, (ii) cooperating with the other in connection with the preparation and filing of any such forms, registrations and notices
(including, with respect to the 

  

 27 

 
party hereto making a filing, providing copies of all such documents to the non-filing party and its advisors prior to filing and, if requested, to accept
all reasonable additions, deletions or changes suggested in connection therewith) and in connection with obtaining any requisite approvals, consents, orders, exemptions or waivers by any third party or Governmental Entity, (iii) the
satisfaction of the conditions to the consummation of the Merger set forth in Article VIII, and (iv) the execution of any additional instruments, including the Certificate of Merger, necessary to consummate the transactions contemplated hereby.
Subject to the terms and conditions of this Agreement and the applicable provisions of the DGCL, each party hereto agrees to use commercially reasonable efforts to cause the Effective Time to occur as soon as practicable after the date hereof.
Notwithstanding anything in this Agreement to the contrary, no party to this Agreement shall be required to divest itself or any of its Subsidiaries of any assets, including any shares of any Subsidiary in order to comply with the obligations of
such party under this Agreement. 
 (b) The Company and Parent each shall, upon request by the other, furnish the other with all information
concerning itself, its Subsidiaries, directors, officers and stockholders and such other matters as may be reasonably necessary or advisable in connection with any statement, filing, notice or application made by or on behalf of Parent, the Company
or any of their respective Subsidiaries to any third party and/or any Governmental Entity in connection with the Merger and the transactions contemplated by this Agreement. 
 (c) Without limiting the generality of the foregoing, each of the Company and Parent shall provide promptly to any Governmental Antitrust Entity or
provide promptly to any other Person so that such Person may provide to a Governmental Antitrust Entity, information and documents requested by any Governmental Antitrust Entity or necessary, proper or advisable to permit consummation of the Merger
and the transactions contemplated by this Agreement. 
 7.6 Other Access and Investigation. Subject to applicable antitrust Laws
relating to the sharing of information, and to the provisions of the Confidentiality Agreement, upon reasonable notice, the Company shall, and shall cause its Subsidiaries to, afford Parent, and its officers, employees, counsel, accountants and
other authorized Representatives, reasonable access, during normal business hours throughout the period prior to the Effective Time, to its properties, books, contracts and records and, during such period, the Company shall, and shall cause its
Subsidiaries to, furnish promptly to Parent all information concerning its business, properties and personnel as may reasonably be requested (including information related to any exercises of exercisable securities and any conversions of convertible
securities into outstanding shares of voting capital stock of the Company as of or prior to the Effective Time); provided, however, that neither any investigation by Parent pursuant to this Section 7.6, nor Parent’s knowledge
or receipt of information related to the Company’s representations and warranties made herein, nor the knowledge or receipt of information of those members of the Company’s Board of Directors designated or nominated by Parent or any of
Parent’s Subsidiaries (in all cases, either as of the date hereof, or prior to the Effective Time) shall affect or be deemed to modify any representation or warranty made by the Company or affect or be deemed to modify the closing condition set
forth in Section 8.2(a) of this Agreement unless disclosed on the Company Disclosure Schedule; provided, further, that the foregoing shall not require the Company to permit any inspection, or to disclose any information, that in
the reasonable judgment of the Company would result in the disclosure of any trade secrets of third parties or 

  

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violate any of its obligations with respect to confidentiality or result in the loss of any attorney-client privilege. At the request of Parent, throughout
the period prior to the Effective Time, the Company shall use its commercially reasonable efforts to obtain waivers from Persons who are parties to Contracts with the Company or its Subsidiaries that contain confidentiality provisions in order for
Parent to be provided reasonable access to such Contracts. 
 7.7 Consents. Subject to other provisions contained in this Agreement,
Parent, Merger Sub and the Company each shall use commercially reasonable efforts to obtain consents of all third parties and Governmental Entities necessary, proper or advisable for the consummation of the transactions contemplated hereby.

 7.8 Public Announcements. The initial press release regarding this Agreement shall be a joint press release mutually agreed upon,
and thereafter Parent and the Company shall consult with one another before issuing any press release or otherwise making any public statements with respect to the transactions contemplated hereby, including the Merger, and shall not issue any such
press release or make any such public statement prior to such consultation, except as may be required by applicable Law or by obligations pursuant to any listing agreement with any national securities exchange, as determined in good faith by such
party. 
 7.9 Employee Benefits. 
 (a) Parent agrees that it shall cause the Surviving Corporation to honor, fulfill and discharge the Company’s obligations under each Benefit Plan in accordance with its terms as in effect immediately before the Effective Time, subject
to any amendment or termination thereof that may be permitted by such terms and provided, however, that nothing herein shall preclude Parent from substituting substantially equivalent Benefit Plans to the full extent permitted by applicable Law.

 (b) Without limiting the generality of Section 10.9, nothing expressed or implied in this Section 7.9 shall confer upon any
current or former employee of the Company or any of its Subsidiaries or upon any representative of any such person, or upon any collective bargaining agent, any rights or remedies, including any third party beneficiary rights or any right to
employment or continued employment for any specified period, of any nature or kind whatsoever under or by reason of this Agreement. 
 7.10
Indemnification; Directors’ and Officers’ Insurance. 
 (a) From and after the Effective Time, the Surviving Corporation
shall, and Parent shall cause the Surviving Corporation to, indemnify, defend and hold harmless all individuals who on or before the Effective Time were directors or officers of the Company (each, an “Indemnified Person” and,
collectively, the “Indemnified Persons”) to the fullest extent permitted under the DGCL, against any costs or expenses (including reasonable attorneys’ fees and expenses), judgments, fines, losses, claims, damages, liabilities
and amounts paid in settlement in connection with any actual or threatened claim, action, suit, proceeding or investigation, whether civil, criminal, administrative or investigative, arising out of, relating to or in connection with (i) any
acts or omissions occurring or alleged to occur prior to the Effective Time in their capacities as officers or directors of the Company or any of its Subsidiaries or 

  

 29 

 
taken by them at the request of the Company or any of its Subsidiaries (including, without limitation, acts or omissions in connection with such persons
serving as an officer, director or other fiduciary in any entity if such service was at the request or for the benefit of the Company or any of its Subsidiaries) or (ii) the adoption and approval of this Agreement, the Merger or the other
transactions contemplated by this Agreement or arising out of or pertaining to the transactions contemplated by this Agreement. In the event of any such claim, action, suit, proceeding or investigation, the Surviving Corporation shall, and Parent
shall cause the Surviving Corporation to, advance expenses reasonably incurred in the defense thereof; provided that any Person to whom expenses are advanced provides an undertaking, if and only to the extent required by the DGCL, to repay
such advances if it is ultimately determined that such Person is not entitled to indemnification. Without limiting the foregoing, Parent and the Surviving Corporation shall cause the certificate of incorporation and By-Laws of the Surviving
Corporation to include for a period of six (6) years, at a minimum, the indemnification and exculpation provisions of the certificate of incorporation and By-Laws of the Company as in effect at the Effective Time and shall cause such provisions
not to be amended, repealed or otherwise modified for a period of six (6) years from the Effective Time in any manner that would adversely affect the rights thereunder of any Indemnified Person who was entitled to rights thereunder as of the
Effective Time. In addition, Parent and Surviving Corporation agree that the indemnification and advancement obligations of the Company or any Subsidiary as set forth in indemnification agreements to which it is a party shall be continuing
obligations of the Surviving Corporation or such Subsidiary, as applicable, and shall not be amended, repealed or otherwise modified after the Effective Time, except as permitted by the terms and provisions of those agreements. 
 (b) The Surviving Corporation shall, and Parent shall cause the Surviving Corporation to, obtain (or if obtained by the Company prior to the Effective
Time, maintain in effect) a six-year “tail” directors’ and officers’ liability insurance policy covering the Indemnified Persons for the entire period of six (6) years after the Effective Time with terms and conditions at
least as favorable as the Company’s and its Subsidiaries’ existing directors’ and officers’ liability insurance (including for acts or omissions described in clauses (i) and (ii) in Section 7.10(a)) covering each
such Indemnified Person covered immediately prior to the Effective Time by the Company’s officers’ and directors’ liability insurance policy on terms with respect to coverage and amount no less favorable than those of such policy in
effect on the date hereof to the extent that such insurance coverage, can be purchased at a cost of not greater than six (6) times the most recently paid annual premium of the Company’s current insurance policies and, if such insurance
coverage cannot be so purchased or maintained at such cost, providing as much of such insurance as can be so purchased or maintained at such cost. 
 (c) If the Surviving Corporation, Parent, or any of their respective successors or assigns (i) shall consolidate with or merge into any other corporation or entity and shall not be the continuing or surviving corporation or entity of
such consideration or merger or (ii) shall transfer all or substantially all of its properties and assets to any individual, corporation or other entity, then, and in each such case, proper provisions shall be made so that the successors and
assigns of the Surviving Corporation or Parent, as applicable, shall assume all of the obligations set forth in this Section 7.10. 
  

 30 

 (d) The provisions of this Section 7.10 are intended to be for the benefit of, and shall be
enforceable by, each of the Indemnified Persons and their heirs and legal representatives. The indemnification provided for herein shall not be deemed exclusive of any other rights to which an Indemnified Party is entitled, pursuant to law, contract
or otherwise. 
 7.11 Funds for Cash Out Payments. Parent shall take such action as is necessary or appropriate to ensure that,
immediately following the Effective Time, the Surviving Corporation shall have sufficient cash to make any and all Option Cash Out Payments and Warrant Cash Out Payments that are owed and owing as of the Effective Time. 
 7.12 Takeover Statutes. If any Takeover Statute is or may become applicable to the Merger or the other transactions contemplated by this
Agreement, the Company and the Company Board (or the Special Committee) shall grant all approvals and take all actions as are necessary so that such transactions may be consummated as promptly as practicable on the terms contemplated by this
Agreement and otherwise act to eliminate or minimize the effects of such Takeover Statute on such transactions. 
 7.13 Director
Resignations. The Company shall use commercially reasonable efforts to obtain the written resignation from the Company Board of each member of the Company Board prior to the Effective Time, such resignations to take effect at the Effective Time.

 7.14 Obligation to Notify. Between the date of this Agreement and the Closing Date, each of the Company and Parent shall promptly
notify the other in writing if such party becomes aware of the occurrence or existence of any event, circumstance, fact or condition, or the failure of any event, circumstance, fact or condition to occur or exist, in each case which would give rise
to a right of the other party to terminate this Agreement under Article IX hereof; provided that the Company’s breach of its obligations under this Section 7.14 shall not be a breach that affects the determination of the
satisfaction of the condition to closing set forth in Section 8.2(b) of this Agreement unless such breach materially prejudices Parent and/or the Surviving Corporation and its Subsidiaries. 
 7.15 Debentures. The Company shall provide, or shall cause to be provided, in accordance with the terms of the Indenture, to the trustee
under such Indenture and to each holder of a Debenture, any notices required by the Indenture to be delivered prior to the Effective Time by virtue of the transactions contemplated hereby. Prior to the Effective Time, the Company
shall take such actions as are required under the Indenture to establish and evidence the rights of the holders of the Debentures issued under the Indenture to convert each such Debenture, after the Effective Time, into the
Common Stock Merger Consideration upon the terms and subject to the conditions and other provisions of the Indenture, including the execution and delivery of supplemental indentures, officers’ and independent accountants’ certificates
and opinions of counsel. Notwithstanding the foregoing, prior to the Effective Time, the Company shall take such actions as is required under the Indenture to cause the defeasance of the Debentures and the Indenture in accordance with their terms
effective as of the Effective Time provided Parent deposits with the trustee under the Indenture all funds required for such defeasance. 
  

 31 

 7.16 Other Exercisable/Convertible Securities. The Company shall provide, or shall cause to be
provided, to the holders of Series A Stock, Company Common Warrants and/or Company Options in accordance with the terms, rights, preferences and/or privileges of such securities, any notices required to be delivered to such holders prior to the
Effective Time by virtue of the transactions contemplated hereby. 
 ARTICLE VIII 
 CONDITIONS 
 8.1 Conditions to the
Obligations of the Company, Parent and Merger Sub to Effect the Merger. The respective obligation of each of the Company, Parent and Merger Sub to effect the Merger is subject to the satisfaction or waiver at or prior to the Closing of each of
the following conditions: 
 (a) Stockholder Approval. This Agreement shall have been duly adopted by holders of shares of Common Stock
constituting the Company Requisite Vote in accordance with applicable Law and the Company’s certificate of incorporation and By-Laws (“Company Stockholder Approval”) and at least 20 SEC Business Days shall have elapsed from the
date on which the definitive Company Information Statement was first mailed to the Company’s stockholders and filed as an amendment to the Schedule 13e-3. 
 (b) FAS Clearance. The FAS Clearance shall have been obtained. 
 (c) No Injunction. No
Governmental Entity of competent jurisdiction shall have enacted, issued, promulgated, enforced or entered any Law, rule, regulation, judgment, determination, decree, injunction or other order (whether temporary, preliminary or permanent) that is in
effect and restrains, enjoins or otherwise prohibits the consummation of the Merger (collectively, an “Injunction”). 
 8.2
Conditions to Obligations of Parent and Merger Sub. The obligation of Parent and Merger Sub to effect the Merger is also subject to the satisfaction or waiver by Parent at or prior to the Closing of the following conditions: 
 (a) Representations and Warranties. (i) Each representation and warranty of the Company set forth in Sections 5.2 and 5.17 of this Agreement
(collectively, the “Category I Specified Representations”) shall be true and correct in all respects, except for de minimus deviations, individually (A) on the date of this Agreement and (B) on the Closing Date with the
same effect as though such representations and warranties had been made on and as of the Closing Date (except to the extent that any such representation and warranty expressly speaks as of an earlier date, in which case as of such earlier date);
(ii) each representation and warranty of the Company set forth in Sections 5.3, 5.15 and 5.16 of this Agreement (collectively, the “Category II Specified Representations”) shall be true and correct in all respects, individually
and in the aggregate (A) on the date of this Agreement and (B) on the Closing Date with the same effect as though such representations and warranties had been made on and as of the Closing Date (iii) each representation and warranty
of the Company set forth in this Agreement other than a Category I Specified Representation or Category II Specified Representation shall 

  

 32 

 
be true and correct in all respects individually and in the aggregate (A) on the date of this Agreement and (B) as of the Closing Date with the
same effect as though such representation and warranty had been made on and as of the Closing Date (except to the extent that any such representation and warranty expressly speaks as of an earlier date, in which case as of such earlier date) (but
solely for purposes of this subparagraph (a)(iii) without giving effect to any materiality or Company Material Adverse Effect or similar qualification contained in such representations), except in the case of this subparagraph (a)(iii) for such
failures that individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect; and (iv) Parent shall have received at the Closing a certificate signed on behalf of the Company by the Chief Executive
Officer or Chief Financial Officer of the Company to the effect that the conditions set forth in Sections 8.2(a)(i), 8.2(a)(ii) and 8.2(a)(iii) have been satisfied. 
 (b) Performance of Obligations of the Company. (i) The Company shall have performed in all material respects all agreements and obligations required to be performed by it under this Agreement at or prior
to the Closing Date; and (ii) Parent shall have received a certificate signed on behalf of the Company by the Chief Executive Officer or Chief Financial Officer of the Company to the effect that the condition set forth in Section 8.2(b)(i)
has been satisfied. 
 (c) FAS Clearance. The FAS Clearance shall have been obtained and such FAS Clearance shall not include any
material restrictions on Parent’s ability to operate the business of the Company and its Subsidiaries as currently operated. 
 (d)
No Company Material Adverse Effect. Except as a result of any state of facts, change, development, event, effect, condition or occurrence set forth in the Company Disclosure Schedule, no Company Material Adverse Effect shall have occurred on
or after the date hereof. 
 (e) No Litigation. There shall not be any pending Action by any Governmental Entity seeking to
require Parent or the Company or any Subsidiary or affiliate thereof to divest any material assets of the Company or any of its Subsidiaries, including, without limitation, any shares of any Subsidiary or, in the case of Parent, any shares of the
Company, nor shall there be any Action pending in a court of competent jurisdiction brought by any Governmental Entity established under the federal laws of the United States challenging or seeking to restrain or prohibit the consummation of the
Merger or any of the other transactions contemplated by this Agreement. 
 8.3 Conditions to Obligation of the Company. The obligation
of the Company to effect the Merger is also subject to the satisfaction or waiver by the Company at or prior to the Effective Time of the following conditions: 
 (a) Representations and Warranties. (i) The representations and warranties of Parent and Merger Sub set forth in this Agreement shall be true and correct in all respects (A) on the date of this
Agreement and (B) on the Closing Date with the same effect as though such representations and warranties had been made on and as of the Closing Date (except to the extent that any such representation and warranty expressly speaks as of an
earlier date, in which case, as of such earlier date) (but solely for purposes of this subparagraph (a)(i) without giving effect to 

  

 33 

 
any materiality or Parent Material Adverse Effect or similar qualification contained in such representations), except in the case of this subparagraph (a)(i)
for such failures that individually or in the aggregate, would not reasonably be expected to have a Parent Material Adverse Effect; and (ii) the Company shall have received at the Closing a certificate signed on behalf of each of Parent and
Merger Sub by a senior executive officer of each to the effect that the condition set forth in Section 8.3(a)(i) has been satisfied. 
 (b) Performance of Obligations of Parent and Merger Sub. (i) Each of Parent and Merger Sub shall have performed in all material respects all agreements and obligations required to be performed by it under this Agreement at or
prior to the Closing Date, and (ii) the Company shall have received a certificate signed on behalf of each of Parent and Merger Sub by an executive officer of each to the effect that the condition set forth in Section 8.3(b)(i) has been
satisfied. 
 ARTICLE IX 
 TERMINATION 
 9.1 Termination by Mutual Consent. This Agreement may be terminated and the Merger may be abandoned at
any time prior to the Effective Time, whether before or after the adoption by the stockholders of the Company referred to in Section 8.1(a), by mutual written consent of the Company (by action of the Company Board, approved by the Special
Committee), and Parent. 
 9.2 Termination by Either Parent or the Company. This Agreement may be terminated and the Merger may be
abandoned at any time prior to the Effective Time by Parent or by the Company (provided that such action is approved by the Special Committee), if (a) the Merger shall not have been consummated by July 21, 2007 (the “Termination
Date”), or (b) any Injunction permanently restraining, enjoining or otherwise prohibiting consummation of the Merger shall have become final and non-appealable; provided, however, that the right to terminate this
Agreement pursuant to this Section 9.2 shall not be available to any party that has breached its obligations under this Agreement in any manner that shall have proximately contributed to the occurrence of the failure of the Merger to be
consummated (in the case of Section 9.2(a), by the Termination Date). 
 9.3 Termination by the Company. This Agreement may be
terminated and the Merger may be abandoned at any time prior to the Effective Time, by the Company (provided that such action is approved by the Special Committee) (i) in the case of subsections (a)-(d) of this Section 9.3, before or
after Company Stockholder Approval and (ii) and in the case of subsection (e), at any time prior to Company Stockholder Approval, if: 
 (a) any representations or warranties made by Parent or Merger Sub in this Agreement shall fail to be true or correct on or after the execution of this Agreement, (i) such that the conditions set forth in Section 8.3(a) would not
be satisfied, and (ii) such failures are not cured, or are not reasonably capable of being cured, by the Termination Date; 
  

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 (b) any of the covenants or agreements made by Parent or Merger Sub in this Agreement shall have been
breached after the execution of this Agreement (i) such that the conditions set forth in Section 8.3(b) would not be satisfied, and (ii) such breaches are not cured, or are not reasonably capable of being cured, by the date that is
thirty (30) days after the earlier of (1) the date Parent becomes aware of the existence of the breach and (2) the date Parent receives written notice from the Company of the Company’s belief that a breach has occurred, which
notice explains in reasonable detail the basis for such belief; 
 (c) a Parent Material Adverse Effect occurs and such Parent Material
Adverse Effect is not cured, or is not reasonably capable of being cured, within thirty (30) days after the earlier of (x) the date Parent becomes aware of the existence of the Parent Material Adverse Effect and (y) the date Parent
receives written notice from the Company of the Company’s belief that a Parent Material Adverse Effect has occurred, which notice explains in reasonable detail the basis for such belief; 
 (d) in violation of the Bridge Facility Agreement, Bridge Finance Lender fails to fund a Loan (as defined in the Bridge Facility Agreement) required
under the Bridge Facility Agreement following satisfaction of all of the conditions precedent to such Loan as provided in the Bridge Facility Agreement, provided, however, that no termination under this Section 9.3(d) shall be effective
unless the Company has provided Parent and Bridge Finance Lender with written notice of such violation and such violation has not been cured by Parent or Bridge Finance Lender within thirty (30) days of Parent’s and Bridge Finance
Lender’s receipt of such notice; 
 (e) the Company, having complied in all material respects with its obligations under this Agreement,
including without limitation its obligations under Section 7.2 of this Agreement, receives a Section 7.2(a)(y)(A) Acquisition Proposal, and all of the following additional conditions are satisfied: 
 (i) the Special Committee or Company Board determines that such Section 7.2(a)(y)(A) Acquisition Proposal constitutes a Superior Proposal;

 (ii) the Special Committee or Company Board give Parent written notice of the existence of, the nature of, and the identity of the Person
making such Section 7.2(a)(y)(A) Acquisition Proposal (including, to the knowledge of the Special Committee or Company Board, as the case may be, after reasonable inquiry of the Person who has made such Section 7.2(a)(y)(A) Acquisition
Proposal, all Persons Controlling such Person) and the material terms and conditions of such Section 7.2(a)(y)(A) Acquisition Proposal, including without limitation a copy of a proposed definitive written agreement to consummate the
transactions contemplated by such Section 7.2(a)(y)(A) Acquisition Proposal, executed by the Person making such Section 7.2(a)(y)(A) Acquisition Proposal (the “Specified Definitive Acquisition Agreement”), and the members
of the Special Committee and its financial advisor and outside legal counsel make themselves available to Parent as promptly as practicable for the purposes of engaging in good faith negotiations regarding executing a possible amendment to this
Agreement or an alternative transaction if so requested by Parent; 
  

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 (iii) the notice provided under Section 9.3(e)(ii) contains a written certification of the fact
that the Special Committee or Company Board has determined such Section 7.2(a)(y)(A) Acquisition Proposal to be a Superior Proposal and that the Specified Definitive Acquisition Agreement has been executed and delivered to the Company by the
Person making such Section 7.2(a)(y)(A) Acquisition Proposal; 
 (iv) on the third Business Day following the delivery to Parent of the
notice referred in Section 9.3(e)(ii) and the certification specified in Section 9.3(e)(iii), (A) the Special Committee or Company Board determines that, notwithstanding delivery of any written instrument executed by Parent and Merger
Sub that, if countersigned by the Company, would effect amendments to this Agreement, such Section 7.2(a)(y)(A) Acquisition Proposal continues to constitute a Superior Proposal and authorizes the Company’s officers and directors, on behalf
of the Company, to execute the Specified Definitive Acquisition Agreement and deliver it to the Person who executed it, and (B) the Specified Definitive Acquisition Agreement is so executed by the Company and becomes fully effective and
binding; and 
 (v) concurrently with the Company’s execution and delivery of the Specified Definitive Acquisition Agreement pursuant
to in Section 9.3(e)(iv), the Initial Termination Fee is paid to Parent, by a deposit of immediately available funds to an account theretofore designated by Parent, by the Person with whom the Company has entered into the Specified Definitive
Acquisition Agreement. 
 9.4 Termination by Parent. This Agreement may be terminated and the Merger may be abandoned at any time
prior to the Effective Time, by Parent, if: 
 (a) the Company Board or the Special Committee shall have withdrawn or adversely qualified or
modified the Recommendation; 
 (b) any representations or warranties made by the Company in this Agreement shall fail to be true or correct
on or after the execution of this Agreement, (i) such that the conditions set forth in Section 8.2(a) would not be satisfied, and (ii) such failures are not cured, or are not reasonably capable of being cured, by (A) in the case
of a failure to be true and correct of a Category I Specified Representation or a Category II Specified Representation, the date that is thirty (30) days after the earlier of (1) the date the Company becomes aware of the existence of the
failure to be true and correct and (2) the date the Company receives written notice from Parent of Parent’s belief that a failure to be true and correct has occurred, which notice explains in reasonable detail the basis for such belief, or
(B) in the case of all other failures of a representation or warranty of the Company to be true and correct, the Termination Date; 
 (c) any covenants or agreements made by the Company in this Agreement shall have been breached after the execution of this Agreement (i) such that the conditions set forth in Section 8.2(b) would not be satisfied, and
(ii) such breaches are not cured, or are not reasonably capable of being cured, by the date that is thirty (30) days after the earlier of (1) the date the Company becomes aware of the existence of the breach and (2) the date the
Company receives written notice from Parent of Parent’s belief that a breach has occurred, which notice explains in reasonable detail the basis for such belief; or 
  

 36 

 (d) if a Company Material Adverse Effect occurs and such Company Material Adverse Effect is not cured
within thirty (30) days after the earlier of (x) the date the Company becomes aware of the existence of the Company Material Adverse Effect and (y) the date the Company receives written notice from Parent of Parent’s belief that
a Company Material Adverse Effect has occurred, which notice explains in reasonable detail the basis for such belief. 
 9.5 Effect of
Termination and Abandonment. In the event of a termination of this Agreement and the abandonment of the Merger pursuant to this Article IX, the provisions of Sections 5.17, 6.9 and Article X of this Agreement shall survive the
termination of this Agreement, but in all other respects this Agreement shall become void and of no effect with no liability on the part of any party hereto (or of any of its directors, officers, employees, agents, legal and financial advisors or
other representatives); provided, however, that, except as otherwise provided herein, no such termination shall relieve any party hereto of any liability or damages resulting from any willful or intentional breach of this Agreement. 
 ARTICLE X 
 MISCELLANEOUS AND
GENERAL 
 10.1 Non-Survival of Representations and Warranties. None of the representations and warranties in this Agreement or in
any instrument delivered pursuant to this Agreement shall survive the Effective Time or the termination of this Agreement pursuant to the terms hereof. 
 10.2 Modification or Amendment. Subject to the provisions of applicable Law, at any time prior to the Effective Time, (i) this Agreement may be amended, modified or supplemented only in writing executed by
each of the parties hereto by action of the board of directors of each such party (in the case of the Company, approved by the Special Committee), and (ii) any provisions herein may be waived only in writing executed by the party or parties
against whom such waiver is asserted by action of such party or parties’ board of directors (in the case of the Company, approved by the Special Committee). 
 10.3 Waiver of Conditions. The conditions to each of the parties’ obligations to consummate the Merger are for the sole benefit of such party and may be waived by such party in whole or in part to the
extent permitted by applicable Law, in such party’s sole discretion. 
 10.4 Definitions. The definitions of capitalized terms
used in this Agreement are set forth and/or listed in Annex I. 
 10.5 Counterparts. This Agreement may be executed in any
number of counterparts, each such counterpart being deemed to be an original instrument, and all such counterparts shall together constitute the same agreement. 
 10.6 Governing Law and Venue; Waiver of Jury Trial. 
 (a) This Agreement shall be deemed to be made
and in all respects shall be interpreted, construed and governed by and in accordance with the Law of the state of Delaware without regard to the conflict of law principles thereof. The parties hereto hereby irrevocably submit exclusively to the
jurisdiction of the Chancery Courts of Delaware and the Federal courts 

  

 37 

 
of the United States of America located in the State of Delaware solely in respect of the interpretation and enforcement of the provisions of this Agreement
and of the documents referred to in this Agreement, and in respect of the transactions contemplated hereby, and hereby waive, and agree not to assert, as a defense in any action, suit or proceeding for the interpretation or enforcement hereof or of
any such document, that it is not subject thereto or that such action, suit or proceeding may not be brought or is not maintainable in said courts or that the venue thereof may not be appropriate or that this Agreement or any such document may not
be enforced in or by such courts, and the parties hereto irrevocably agree that all claims with respect to such action or proceeding shall be heard and determined in such a Delaware State or Federal court. The parties hereto hereby consent to and
grant any such court jurisdiction over the person of such parties for purposes of the foregoing, and consent to service of process in connection therewith by notice given in accordance with the notice procedures contained in Section 10.7 of
this Agreement. 
 (b) EACH PARTY HERETO ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO
INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO
THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (II) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (III) EACH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (IV) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.6. 
 (c) Parent hereby irrevocably appoints CT
Corporation System, at its office at 1209 Orange Street, Wilmington, DE 19801, its lawful agent and attorney to accept and acknowledge service of any and all process against it in any action, suit or proceeding arising in connection with this
Agreement and upon whom such process may be served, with the same effect as if Parent were a resident of the Delaware and had been lawfully served with such process in such jurisdiction. In the case of any service by the Company upon such agent and
attorney, the Company shall also deliver a copy thereof to Parent at the address and in the manner specified in Section 10.7. In the event that such agent and attorney resigns or otherwise becomes incapable of acting as such, Parent will
appoint a successor agent and attorney in Delaware with like powers. 
 10.7 Notices. Any notice, request, instruction or other
document to be given hereunder by any party to the others shall be in writing and delivered personally or sent by registered or certified mail, postage prepaid, facsimile or by overnight courier: 
  

 38 

 If to Parent or Merger Sub: 
 Renova Media Enterprises Ltd. 
 __________________________ 
 __________________________ 
 Attention: General Counsel 
 Facsimile:
___________________ 
 with a copy, which will not constitute notice, to: 
 DLA Piper US LLP 
 1251 Avenue of the
Americas, 29th Floor 
 New York, New York 10020-1104 
 Attention: Marjorie Adams, Esq. 
 Facsimile: (212) 335-4501 
 and 
 DLA Piper US LLP 
 2000 University Avenue 
 East Palo Alto, CA
94303 
 Attention: Henry Lesser, Esq. 
 Facsimile: (650) 833-2001 
 If to the Company: 
 Moscow CableCom Corp. 
 5 Waterside Crossing, Third Floor 
 Windsor, CT 06095 
 Attention: Chief Executive
Officer 
 Facsimile Number: (860) 298-0685 
 with a copy, which will not constitute notice, to: 
 Covington & Burling LLP 
 1330 Avenue of the Americas 
 New York, NY
10011 
 Attention: Scott Smith, Esq. 
 Facsimile: (646) 441-9056 
 and 
 Covington & Burling LLP 
 1201 Pennsylvania Avenue, NW 
 Washington, DC 20004 
 Attention: Ralph
Voltmer, Esq. 
 Facsimile: (202) 778-5479 
  

 39 

 or to such other persons or addresses as may be designated in writing by the Person to receive such notice as provided
above. Any notice, request, instruction or other document given as provided above shall be deemed given to the receiving party upon actual receipt, if delivered personally; three Business Days after deposit in the mail, if sent by registered or
certified mail; upon confirmation of successful transmission if sent by facsimile (provided that if given by facsimile such notice, request, instruction or other document shall be followed up within one Business Day by delivery pursuant to one of
the other methods described herein); or on the next Business Day after deposit with an internationally recognized overnight courier, if sent by such a courier. 
 10.8 Entire Agreement. This Agreement, including the schedules, exhibits and annexes hereto, constitute the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes
all other prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof; provided, however, that nothing in this Agreement shall be deemed to modify or supersede (i) the letter from
Parent to the Company dated November 10, 2006, described in Amendment #7 to Schedule 13D filed with the SEC by Parent and Victor Vekselberg on November 13, 2006, (ii) the Confidentiality Agreement, or (iii) any agreement between
Parent and/or an affiliate of Parent, on the one hand, and the Company or any of its Subsidiaries, on the other hand, effecting or relating to the borrowing of money or the issuance of equity securities by the Company or any of its Subsidiaries, and
each instrument referred to in (i), (ii) and (iii) of this proviso shall survive any termination of this Agreement. 
 10.9
Enforcement; No Third Party Beneficiaries. 
 (a) This Agreement and all of the provisions hereto shall be binding upon and inure to
the benefit of, and be enforceable by, the parties hereto and their respective successors and permitted assigns. Except as expressly set forth in Section 7.10 (Indemnification; Directors’ and Officers’ Insurance) of this Agreement,
this Agreement is not intended to, and does not, confer upon any Person other than the parties who are signatories hereto any rights or remedies hereunder. 
 (b) The parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is
accordingly agreed that the parties hereto shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in addition to any other remedy to which they
are entitled. 
 10.10 Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability
of any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof to any Person or any circumstance is determined by a court of competent jurisdiction to
be invalid, void or unenforceable the remaining provisions hereof, shall, subject to the following sentence, remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, 

  

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so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner adverse to either party. Upon such
determination, the parties shall negotiate in good faith in an effort to agree upon such a suitable and equitable provision to effect the original intent of the parties. 
 10.11 Interpretation; Absence of Presumption. 
 (a) For the purposes hereof, (1) words in the
singular shall be held to include the plural and vice versa and words of one gender shall be held to include the other gender as the context requires, (2) the terms “hereof”, “herein”, and
“herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole (including the schedules and annexes hereto) and not to any particular provision of this Agreement, and
Article, Section, paragraph, Schedule, and Annex references are to the Articles, Sections, paragraphs, Schedules and Annexes to this Agreement unless otherwise specified, (3) the word “including” and words of similar import
when used in this Agreement shall mean “including without limitation” unless the context otherwise requires or unless otherwise specified, (4) the word “or” shall not be exclusive, and (5) all references to any
period of days shall be deemed to be to the relevant number of calendar days unless otherwise specified. 
 (b) The parties have participated
jointly in negotiating and drafting this Agreement. In the event that an ambiguity or a question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall
arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement. 
 10.12 Fees and Expenses.

 (a) The Surviving Corporation shall pay all charges and expenses, including those of the Paying Agent, in connection with the transactions
contemplated in Article IV. Whether or not the Merger is consummated, all costs and expenses incurred in connection with this Agreement and the Merger and the other transactions contemplated by this Agreement shall be paid by the party incurring
such expense, except that expenses incurred in connection with the filing fee for the Schedule 13E-3 and printing and mailing the Company Information Statement and the Schedule 13E-3 shall be shared equally by Parent and the Company unless a
Superior Proposal is consummated, in which case the Company shall be responsible for the expenses incurred in connection with the filing fee for the Schedule 13E-3 and printing and mailing the Company Information Statement and the Schedule 13E-3.

 (b) Nothing in this Section 10.12 shall affect Parent’s right to receive and retain the Initial Termination Fee in the event it
becomes payable under Section 9.3(e). In addition, if, within twelve (12) months of a termination of this Agreement under Section 9.3(e), the Company enters into a definitive agreement that provides for an Alternative Proposal (other
than the Alternative Proposal provided in the Specified Definitive Acquisition Agreement), then immediately upon the execution of such definitive agreement, the Company shall be obligated to pay Parent by a deposit of immediately available funds to
an account theretofore designated by Parent, the sum of One Million Five Hundred Thousand Dollars ($1,500,000); provided, however, that for the purposes of this Section 10.12, any references to “15%” in the definition of Alternative
Proposal shall be deemed replaced with “50%”. 
  

 41 

 10.13 Assignment. This Agreement shall not be assignable by any party hereto; provided, however,
that Parent may designate, by written notice to the Company, another Subsidiary of Parent to be a constituent corporation in lieu of Merger Sub, whereupon all references herein to Merger Sub shall be deemed references to such other Subsidiary,
except that all representations and warranties with respect to Merger Sub as of the date of this Agreement shall be deemed representations and warranties with respect to such other Subsidiary as of the date of such designation. Any purported
assignment in violation of this Agreement will be void ab initio. 
 [the rest of this page is intentionally left blank]

  

 42 

 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized officers
of the parties hereto as of the date first written above. 
  

			
	MOSCOW CABLECOM CORP.
		
	By:	 	 /s/ Andrew Intrater

	Name:	 	Andrew Intrater
	Title:	 	Chairman
	
	RENOVA MEDIA ENTERPRISES LTD.
		
	By:	 	 /s/ Vladimir Kuznetsov

	Name:	 	Vladimir Kuznetsov
	Title:	 	Chairman of the Supervisory Board
	
	GALAXY MERGER SUB CORPORATION
		
	By:	 	 /s/ Andrey Osipov

	Name:	 	Andrey Osipov
	Title:	 	President

 [Merger Agreement Signature Page] 
  

 43 

 ANNEX AND EXHIBITS 
  

			
	Annex I	 	Glossary of Defined Terms
		
	Exhibit A	 	Certificate of Incorporation
		
	Exhibit B	 	Form of Written Consent of Stockholder

  

 44 

 ANNEX I 
 GLOSSARY OF DEFINED TERMS 
 As used in this Agreement, the following terms shall have the
meanings set forth below: 
 “Acquisition Proposal” shall have the meaning set forth in Section 7.2(a). 
 “Action” shall mean any civil, criminal or administrative suit, claim, hearing, inquiry, action, proceeding or publicly announced
investigation. 
 “Benefit Plans” shall mean with respect to the Company and each Subsidiary of the Company, (i) all
employee benefit plans (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended ERISA, (ii) each loan to any current or former non-officer employee, officer or directors or director and any
stock option, stock purchase, phantom stock, stock appreciation right, equity based award, supplemental retirement, severance, termination, change in control, sabbatical, medical, dental, vision care, disability, employee relocation, cafeteria
benefit (Code Section 125) or dependent care (Code Section 129), life insurance or accident insurance plans, programs or arrangements, (iii) all bonus, pension, profit sharing, savings, deferred compensation or incentive plans,
programs, policies, agreements or arrangements, (iv) other fringe, welfare or employee benefit plans, programs, policies, agreements or arrangements, and (v) any current or former employment or, consulting, retention, executive
compensation or severance agreements or arrangements, written or otherwise, for the benefit of, or relating to, any present or former employee, consultant or director of the Company with respect to which the Company or any Company Subsidiary has or
could reasonably have any liability. 
 “Bridge Facility Agreement” shall have the meaning set forth in the seventh
paragraph of the Recitals. 
 “Bridge Finance Lender” shall have the meaning set forth in the seventh paragraph of the
Recitals. 
 “Business Day” shall mean any day other than a Saturday, Sunday, U.S. Federal holiday or any other day on which
banking institutions in New York City, United States of America or Moscow, Russian Federation, are authorized or obligated by Law to be closed. 
 “By-Laws” shall have the meaning set forth in Section 2.2. 
 “Category I Specified
Representations” shall have the meaning set forth in Section 8.2(a). 
 “Category II Specified
Representations” shall have the meaning set forth in Section 8.2(a). 
 “Certificate” shall have the meaning
set forth in Section 4.1(a)(iii). 
 “Certificate of Merger” shall have the meaning set forth in Section 1.3.

  

 I-1 

 “Charter” shall have the meaning set forth in Section 2.1. 
 “Closing” shall have the meaning set forth in Section 1.2. 
 “Closing Date” shall have the meaning set forth in Section 1.2. 
 “Code” shall mean the U.S. Internal Revenue Code, as amended. 
 “Common Stock” shall mean the common stock, par value $0.01 per share, of the Company. 
 “Common Stock Merger Consideration” shall have the meaning set forth in Section 4.1(a)(i). 
 “Company Board” shall have the meaning set forth in the Recitals. 
 “Company Common Warrant” shall have the meaning set forth in Section 4.4(b). 
 “Company Disclosure Schedule” shall have the meaning set forth in the opening paragraph of ARTICLE V. 
 “Company Information Statement” shall have the meaning set forth in Section 7.3(a). 
 “Company Material Adverse Effect” shall mean any state of facts, change, development, event, effect, condition or occurrence (including,
without limitation, any breach of a representation or warranty contained herein by the Company) that, individually or in the aggregate, materially and adversely affects (i) the business, assets, liabilities, property, financial condition or
results of operations of the Company and its Subsidiaries, taken as a whole or (ii) the ability of the Company to perform its obligations hereunder or to consummate the Merger and the other transactions contemplated by this Agreement;
provided, however, that none of the following shall be deemed in and of themselves, either alone or in combination, to constitute, and none of the following shall be taken into account, alone or in combination, in determining whether
there has been or will be, a Company Material Adverse Effect: (1) any change in general economic or political conditions not specifically relating to the Company or any Company Subsidiary and not disproportionately adversely affecting the
Company or any Company Subsidiary, (2) any change in prevailing interest rates or currency exchange rates, (3) any change in GAAP, (4) any change proximately resulting from the execution of this Agreement, the consummation of the
transactions contemplated hereby and the announcement hereof, (5) any change resulting from the Company’s failure to meet internal forecasts or third party analyst estimates or projections, provided however that the exception in this
clause (5) shall not in any way prevent or otherwise affect a determination that any change, effect, event, occurrence, state of facts or development underlying such failure constitutes a Company Material Adverse Effect, and (6) only for
the purposes of Section 8.2 and Section 9.3, (i) any change resulting from actions taken by the City of Moscow or its employees and agents in compliance with and in furtherance of Decree #2114RP dated October 17, 2006,
(ii) any change resulting from (x) private civil litigation commenced by a stockholder or purported stockholder of the Company or (y) any Action pending in a court of competent jurisdiction brought by any Governmental Entity other
than a Governmental Entity established under the federal laws of the United States, in each 

  

 I-2 

 
case challenging this Agreement or the transactions contemplated hereby, or (iii) any change or development arising out of or resulting from any review
by the Russian tax authorities of the Company’s value added tax payments during the Company’s 2004 and 2006 fiscal years. 
 “Company Option” shall have the meaning set forth in Section 4.4(a). 
 “Company Reports”
shall mean each registration statement, report, notification, proxy statement or information statement filed by the Company since December 31, 2003, including without limitation the Company’s Annual Reports on Form 10-K for the years ended
December 31, 2003, December 31, 2004 and December 31, 2005, respectively, and the Company’s Reports on Form 10-Q for the quarterly periods ended March 31, 2004, June 30, 2004, September 30,
2004, March 31, 2005, June 30, 2005, September 30, 2005, March 31, 2006, June 30, 2006, and September 30, 2006, respectively and the Company’s reports on Form 8-K, each in the form
(including exhibits, annexes and any amendments thereto) filed with the SEC, which, together with any such reports filed subsequent to the date hereof. 
 “Company Requisite Vote” shall mean the affirmative vote of the holders of a majority of the outstanding voting power of the then outstanding shares of Common Stock and Series B Stock, voting together
as a single class. 
 “Company Restricted Stock” shall have the meaning set forth in Section 4.4(d). 
 “Company Stockholder Approval” shall have the meaning set forth in Section 8.1(a). 
 “Company Sub” shall mean ZAO ComCor-TV, a closed joint stock company duly organized and validly existing under the Laws of the Russian
Federation, and a wholly-owned direct Subsidiary of the Company. 
 “Confidentiality Agreement” shall have the meaning set
forth in Section 7.2(a). 
 “Contract” shall mean any note, bond, mortgage, indenture, lease, license, contract,
agreement or other instrument or obligation, whether written or oral. 
 “Control” (including the terms
“Controlling,” “Controlled by” and “under common Control with”) shall mean the possession, directly or indirectly or as trustee or executor, of the power to direct or cause the direction of the management and policies
of a person, whether through the ownership of voting securities, as trustee or executor, by contract or credit arrangement or otherwise; 
 “Debenture” shall have the meaning set forth in Section 4.4(e). 
 “DGCL” shall mean the
Delaware General Corporation Law, as amended. 
 “Dissenting Common Shares” shall have the meaning set forth in
Section 4.1(a)(i). 
 “Dissenting Common Stockholders” shall have the meaning set forth in Section 4.1(a)(i).

 “Dissenting Series A Shares” shall have the meaning set forth in Section 4.1(a)(ii). 
  

 I-3 

 “Dissenting Series A Stockholders” shall have the meaning set forth in
Section 4.1(a)(ii). 
 “Effective Time” shall have the meaning set forth in Section 1.3. 
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 
 “ERISA Affiliate” shall mean any trade or business (whether or not incorporated) which is treated as a single employer with the Company (within
the meaning of Section 414(b), (c), (m) or (o) of the Code. 
 “Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended (including the rules and regulations promulgated thereunder). 
 “Excluded Common Shares”
shall have the meaning set forth in Section 4.1(a)(i). 
 “Excluded Series A Shares” shall have the meaning set forth
in Section 4.1(a)(ii). 
 “FAS Clearance” shall mean any clearance required from the Federal Antimonopoly Service of
the Russian Federation under the laws of the Russian Federation for the transactions contemplated by this Agreement. 
 “Financial
Advisor” shall have the meaning set forth in Section 5.16. 
 “GAAP” shall mean U.S. generally accepted
accounting principles. 
 “Governmental Consents” shall mean all notices, reports, and other filings required to be made
prior to the Effective Time by the Company or Parent or any of their respective Subsidiaries with, and all consents, registrations, approvals, permits, clearances and authorizations required to be obtained prior to the Effective Time by the Company
or Parent or any of their respective Subsidiaries from, any Governmental Entity in connection with the execution and delivery of this Agreement and the consummation of the Merger and the other transactions contemplated hereby. 
 “Governmental Entity” shall mean any court, tribunal, arbitrator, authority, agency, commission, governmental or regulatory body,
official or other instrumentality of the United States, the Russian Federation, any other foreign country or any domestic or foreign state, county, city or other political subdivision. 
 “Governmental Antitrust Entity” shall mean any Governmental Entity with jurisdiction over enforcement of any applicable antitrust and
merger control Laws. 
 “HSR Act” shall have the meaning set forth in Section 6.7. 
 “Indemnified Persons” shall have the meaning set forth in Section 7.10. 
 “Indenture” shall mean the Indenture, dated as of February 26, 1998, between
the Company and The Chase Manhattan Bank, as Trustee, in respect of $4,311,000, aggregate principal amount, 10 1/2% Convertible Subordinated Debentures Due 2007. 
  

 I-4 

 “Initial Termination Fee” shall mean Four Million Five Hundred Thousand Dollars
($4,500,000). 
 “Injunction” shall have the meaning set forth in Section 8.1(b). 
 “Insolvency Proceeding” shall mean a proceeding pending before any Governmental Entity that involves any bankruptcy, arrangement,
reorganization or similar proceeding relating to the insolvency of the Company and/or the inability of the Company to pay its debts as they become due. 
 “Intellectual Property” shall mean all U.S. and foreign (i) trademarks, service marks, trade names, Internet domain names, designs, slogans, and general intangibles of like nature, together with
all goodwill related to the foregoing and including any registrations, renewals and applications for any of the foregoing; (ii) patents (including any registrations, renewals and applications therefor, (iii) copyrights (including any
registrations, renewals and applications therefor), and (iv) Trade Secrets, in each case to the extent recognized as intellectual property under applicable Law. 
 “Interested Stockholders” shall mean Parent, Moskovskaya Telecommunikationnaya Corporatsiya (“COMCOR”), any affiliate of Parent or COMCOR (other than the Company) and any officers or
directors of Parent, COMCOR or such affiliates (other than the Company). 
 “Knowledge of the Company” or “to the
Company’s Knowledge” or words of similar import shall mean the personal knowledge, after reasonable inquiry, of the executives of the Company and of the Company’s Subsidiaries named in the Company Disclosure Schedule. 

“Law” shall mean any order, writ, injunction, judgment, arbitration award, agency requirement, decree, law (including the common
law), statute, ordinance, rule or regulation, concession, franchise, permit, license or other governmental authorization or approval of any Governmental Entity. 
 “Lien” shall mean, with respect to any asset (including any security) any option, claim, mortgage, lien, pledge, charge, security interest or encumbrance or restrictions of any kind in respect of such
asset, other than: (i) statutory Liens of landlords, statutory Liens of banks and statutory rights of set-off of banks, statutory Liens of carriers, warehousemen, mechanics, repairmen, workmen and materialmen, retention of title arrangements
and other Liens imposed by Law, in each case incurred in the ordinary course of business (A) for amounts not yet overdue or (B) for amounts that are overdue and that (in the case of such amounts overdue for a period in excess of 30 days)
are being contested in good faith by appropriate proceedings, so long as such reserves or other appropriate provisions, if any, will have been made for any such contested amounts; (ii) easements, rights-of-way, restrictions, encroachments, and
other minor defects or irregularities in title, in each case which do not and will not interfere in any material respect with the ordinary conduct of the business of the Company or any of its Subsidiaries; (iii) any zoning or similar Law or
right reserved to or vested in any governmental office or agency to control or regulate the use of any real property; and (iv) Liens that do not either adversely affect the value of the real property subject to such Lien or prohibit or
interfere with the operations of that real property or the business of the Company or the Subsidiaries. 
  

 I-5 

 “Material Contract” shall mean any Contract currently in effect to which the Company or
any of its Subsidiaries is a party or by which any of them or any of their respective properties or assets may be bound that (i) is required to be described in, or filed as an exhibit to, any Company Report, (ii) provides for, or has
provided for, the receipt or payment by the Company or any of its Subsidiaries of more than $250,000 per year, (iii) provides for the receipt or payment by the Company or any of its Subsidiaries of more than $500,000 in the aggregate during the
term (whether fixed or indefinite) of the Contract, (iv) provides for the receipt by the Company or any of its Subsidiaries of more than $250,000 in the aggregate during the balance of the term (whether fixed or indefinite) of the Contract
and does not provide the other party to the contract with the right to terminate the Contract for a payment of less than $50,000; (v) provides for the payment by the Company or any of its Subsidiaries of more than
$250,000 in the aggregate during the balance of the term (whether fixed or indefinite) of the Contract and does not provide the Company or a Company Subsidiary with the right to terminate the Contract for a payment of less
than $50,000, or (vi) if terminate, would reasonably be expected to result in a Company Material Adverse Effect. 
 “Merger” shall have the meaning set forth in the Recitals. 
 “Option Cash Out Payment” shall have
the meaning set forth in Section 4.4(a). 
 “Parent Material Adverse Effect” shall mean any state of facts, change,
development, event, effect, condition or occurrence (including, without limitation, any breach of a representation or warranty contained herein by Parent) that, individually or in the aggregate, materially and adversely affects the ability of the
Parent to perform timely its obligations hereunder or to consummate the Merger and the other transactions contemplated by this Agreement; provided, however, that only for the purposes of Section 8.3(a) and Section 9.4, a
state of facts, change, development, event, effect, condition or occurrence resulting from (x) private civil litigation commenced by a stockholder or purported stockholder of the Company or (y) any Action pending in a court of competent
jurisdiction brought by any Governmental Entity other than a Governmental Entity established under the federal laws of the United States, in each case challenging this Agreement or the transactions contemplated hereby, shall not be deemed in and of
itself to constitute, and shall not be taken into account in determining whether there has been or will be, a Parent Material Adverse Effect. 
 “Paying Agent” shall have the meaning set forth in Section 4.2(a). 
 “Payment Fund” shall
have the meaning set forth in Section 4.2(a). 
 “Person” shall mean any individual, corporation (including
not-for-profit), general or limited partnership, limited liability company, joint venture, estate, trust, association, organization, Governmental Entity or other entity of any kind or nature. 
 “Preferred Stock” shall mean the preferred stock, par value $0.01 per share, of the Company. 
 “Record Date” shall have the meaning set forth in Section 7.3(d). 
 “Representatives” shall have the meaning set forth in Section 7.2(a). 
  

 I-6 

 “Recommendation” shall have the meaning set forth in Section 7.3(c). 
 “Record Date” shall have the meaning set forth in Section 7.3(d). 
 “Schedule 13E-3” shall have the meaning set forth in Section 7.3(b). 
 “SEC” shall mean the United States Securities and Exchange Commission. 
 “SEC Business Day” shall mean any day other than a Saturday, Sunday, U.S. Federal holiday or any other day on which the SEC is obligated
by Law to be closed. 
 “Section 7.2(a)(y)(A) Acquisition Proposal” shall have the meaning set forth in Section 7.2(a).

 “Securities Act” shall mean the Securities Act of 1933, as amended (including the rules and regulations promulgated
thereunder). 
 “Series A Stock” shall have the meaning set forth in Section 4.1(a)(ii). 
 “Series A Merger Consideration” shall have the meaning set forth in Section 4.1(a)(ii). 
 “Series B Stock” shall mean the Series B Convertible Preferred Stock, par value $0.01 per share, of the Company. 
 “Special Committee” shall have the meaning set forth in the Recitals. 
 “Specified Definitive Acquisition Agreement” shall have the meaning set forth in Section 9.3(e). 
 “Subsidiary” shall mean, with respect to any party, any corporation or other organization, whether incorporated or unincorporated or
domestic or foreign to the United States, of which (x) such party or any other Subsidiary of such party is a general partner or (y) at least a majority of the total voting power of the securities (or other interests having by their terms
ordinary voting power to elect at least a majority of the board of directors or others performing similar functions with respect to such corporation or other organization) is, directly or indirectly, owned or controlled by such party or by any one
or more of its Subsidiaries, or by such party and one or more of its Subsidiaries. 
 “Superior Proposal” shall have the
meaning set forth in Section 7.2(a). 
 “Surviving Corporation” shall have the meaning set forth in Section 1.1.

 “Takeover Statute” shall have the meaning set forth in Section 5.15. 
 “Tax” (including, with correlative meaning, the term “Taxes”) shall mean all U.S. federal, state, local and foreign
(including taxes imposed by the Russian Federation and the City of Moscow) income, profits, franchise, gross receipts, environmental, customs duty, capital stock, severances, stamp, payroll, sales, employment, unemployment, disability, use,
property, withholding, excise, production, value added, occupancy and other taxes, duties or assessments 

  

 I-7 

 
of any nature whatsoever, together with all interest, penalties and additions imposed with respect to such amounts and any interest in respect of such
penalties and additions, whether disputed or not. 
 “Tax Return” shall mean all returns and reports (including elections,
declarations, disclosures, schedules, estimates and information returns) required to be filed with, or supplied to, any Tax authority under applicable Law. 
 “Termination Date” shall have the meaning set forth in Section 9.2. 
 “Trade
Secrets” shall mean all inventions, trade secrets and other confidential information, know-how, proprietary processes, formulae, algorithms, models, and methodologies. 
 “Warrant Cash Out Payment” shall have the meaning set forth in Section 4.4(b). 
 “Written Consent” shall have the meaning set forth in Section 7.4(b). 
  

 I-8 

 EXHIBIT A 
 CERTIFICATE OF INCORPORATION 
 OF 
 MOSCOW CABLECOM CORP. 
 FIRST: The name of the corporation is
Moscow CableCom Corp. 
 SECOND: The address of the corporation’s registered office in the State of Delaware is
Corporation Trust Center, 1209 Orange Street, in the City of Wilmington (19801), County of New Castle. The name of the corporation’s registered agent at such address is The Corporation Trust Company. 
 THIRD: The purpose of the corporation is to engage in any lawful act or activity for which corporations may be organized under the Delaware
General Corporation Law. 
 FOURTH: The total number of shares of stock which the corporation is authorized to issue is
             shares of common stock, having a par value of $.01 per share. 
 FIFTH: The business and affairs of the corporation shall be managed by or under the direction of the board of directors, and the directors need not be elected by ballot unless required by the by-laws of the corporation.

 SIXTH: In furtherance and not in limitation of the powers conferred by the laws of the State of Delaware, the board of
directors is expressly authorized to make, amend and repeal the by-laws. 
 SEVENTH: A director of the corporation shall not be
personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, 

  

 A- 1 

 
except for liability (i) for any breach of the director’s duty of loyalty to the corporation or its stockholders, (ii) for acts or omissions
not in good faith or which involve intentional misconduct or a knowing violation of law, (iii) under Section 174 of the Delaware General Corporation Law, or (iv) for any transaction from which the director derived an improper personal
benefit. If the Delaware General Corporation Law is amended to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of a director of the corporation shall be eliminated or limited to the
fullest extent permitted by the Delaware General Corporation Law, as so amended. Any repeal or modification of this provision shall not adversely affect any right or protection of a director of the corporation existing at the time of such repeal or
modification. 
 EIGHTH: The corporation reserves the right to amend and repeal any provision contained in this Certificate of
Incorporation in the manner from time to time prescribed by the laws of the State of Delaware. All rights herein conferred are granted subject to this reservation. 
 NINTH: The name and mailing address of the incorporator is as follows: 
 Bruce
S. Pailet 
 Robinson & Cole LLP 
 One Commercial Plaza 
 Hartford, Connecticut 06103 
  

 A- 2 

 EXHIBIT B 
 FORM OF WRITTEN CONSENT OF STOCKHOLDER 
 OF 
 MOSCOW CABLECOM CORP. 
 The
undersigned, being the holder of at least a majority of the voting power of the outstanding shares of capital stock of Moscow CableCom Corp., a Delaware corporation (the “Corporation”), does hereby consent to the adoption of and does
hereby adopt the following resolutions by written consent in lieu of a meeting pursuant to Section 228 of the Delaware General Corporation Law: 
 WHEREAS, the Agreement and Plan of Merger, attached hereto as Exhibit A, by and among Parent, a Bahamian corporation, Galaxy Merger Sub Corporation, a Delaware corporation and a wholly owned subsidiary of
Parent, and the Corporation (the “Merger Agreement”) has been approved and declared advisable by the Board of Directors of the Corporation, and the Board has directed that the Merger Agreement be executed by a duly authorized officer of
the Corporation and thereafter submitted to the stockholders for their approval; it is hereby 
 RESOLVED, that the
Merger Agreement be, and hereby is, adopted, and the Merger (as defined in the Merger Agreement) be, and hereby is, approved. 
 The
Secretary of the Corporation is hereby authorized to file an executed copy of this Consent in the minute book of the Corporation. 
 IN
WITNESS WHEREOF, the undersigned hereby consents to, approves and adopts the foregoing actions. 
  

					
		 	RENOVA MEDIA ENTERPRISES LTD.
			
	Dated:                     , 2007	 	By:	 	  

		 	Name:	 	
		 	Title:	 	

  

 B- 1Bridge Facility Agreement, dated February 21, 2007

 Exhibit 10.2 
 EXECUTION 
 BRIDGE FACILITY AGREEMENT 
 This Bridge Facility Agreement (“Agreement”) is made as of February 21, 2007 by and between MOSCOW CABLECOM CORP., a Delaware
corporation (the “Company”), ZAO COMCOR-TV, a closed joint stock company organized under the laws of the Russian Federation and a wholly-owned subsidiary of the Company (“Borrower” and together with the Company, the
“Obligors”), and RME FINANCE LTD, a company incorporated under the laws of Cyprus (the “Lender”). In consideration of the mutual covenants contained in this Agreement and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 ARTICLE I 
 LOANS 
 1.1. TERM LOANS 
 On the terms and subject to the conditions of this Agreement, from the date hereof through the Availability End Date, the Lender agrees to make to the
Borrower up to nine (9) working capital bridge loans (each a “Loan” and collectively, the “Loans”) in an aggregate principal amount not to exceed the Total Commitment, as adjusted from time to time in
accordance with the terms of this Agreement, in nine (9) tranches, Tranche I, Tranche II, Tranche III, Tranche IV, Tranche V, Tranche VI, Tranche VII, Tranche VIII and Tranche IX. The aggregate principal amount of the Loan advanced under each
tranche shall not exceed the Tranche Commitment in effect on the Funding Date of such Loan. Borrower may request, prior to the Availability End Date, one (1) Loan under each tranche during the Availability Periods specified below: 

 

			
	 Tranche
	  	 Availability Period

	Tranche I	  	The date that is 3 Business Days after the Closing Date to February 28, 2007
	Tranche II	  	March 15, 2007 to March 31, 2007
	Tranche III	  	April 15, 2007 to April 30, 2007
	Tranche IV	  	May 15, 2007 to May 31, 2007
	Tranche V	  	June 15, 2007 to June 30, 2007
	Tranche VI	  	July 15, 2007 to July 31, 2007
	Tranche VII	  	August 15, 2007 to August 31, 2007
	Tranche VIII	  	September 15, 2007 to September 30, 2007
	Tranche IX	  	October 15, 2007 to October 31, 2007

 When the Borrower desires to obtain a Loan, the Borrower shall notify Lender (which notice shall
be irrevocable) by facsimile transmission to be received no later than 1:00 p.m. New York City time five (5) Business Days before the proposed Funding Date on which the Loan is to be made, provided, however, that the notice for
the Loan under Tranche I shall be delivered by the Borrower no later than 9.00 p.m. New York City time on the date hereof. The notice shall specify a proposed Funding Date that is within the Availability Period for such Loan and shall be signed by
the General Director of the Borrower. Lender shall be entitled to rely on any notice given by a person who Lender believes to be the General Director of the Borrower or a designee thereof, and the Borrower shall indemnify and hold Lender harmless
for any damages or loss suffered by Lender as a result of such reliance. 
 1.2. NOTES 
 The Borrower’s unconditional and absolute obligation to repay to the Lender the principal of the Loans and interest thereon shall be evidenced by one
or more unsecured subordinated promissory notes (as the same may be amended, supplemented or otherwise modified from time to time in accordance with the terms hereof, and together with any renewals thereof or substitutions therefor, each a
“Note”, and collectively, the “Notes”), in substantially the 

 
form of Exhibit A hereto with appropriate insertions. The date and amount of each repayment and prepayment of principal thereon received by the Lender
with respect to each Note shall be recorded by the Lender in its records or, at its option, on the schedule attached to the applicable Note. The aggregate unpaid principal amount so recorded shall be prima facie evidence of the principal amount
owing and unpaid on such Note to the Lender absent manifest error. The failure to so record any such amount or any error in so recording any such amount, however, shall not limit or otherwise affect the Borrower’s obligations hereunder or under
any Note to repay the principal amount of the Loan together with all interest accruing thereon. 
 1.3. CLOSING 
 The closing (the “Closing”) will take place at the offices of Porzio,
Bromberg & Newman P.C., 156 W. 56th Street, New York, New York 10019 upon the satisfaction of the
conditions to Closing set forth in this Agreement on the date hereof, or such other place, time and date as shall be mutually agreed to by the Borrower and the Lender (the “Closing Date”). On or before the Funding Date of each Loan,
the Borrower shall deliver to the Lender a Note with respect to such Loan, dated as of the Funding Date, in the principal amount equal to the amount of such Loan. The Borrower shall deliver each Note against receipt by the Borrower from the Lender
of an amount equal to the Loan corresponding to the tranche for with the Loan is made, by wire transfer in immediately available funds in U.S. dollars to an account designated in writing by the Borrower in its request for such Loan. 
 1.4. USE OF PROCEEDS 
 The proceeds of the Loans
shall be used solely for the purpose of funding the Borrower’s capital expenditures, operations and working capital requirements and of the Borrower, in each case, incurred in the ordinary course of business as presently conducted, and
consistent with Schedule 7.1 of the Company Disclosure Schedules (as defined below). None of the proceeds of any Loan will be used to prepay or repurchase outstanding debt, make any payments to stockholders, directors, officers, employees,
contractors or affiliates (other than ordinary course of business operating expenses, salary and wage payments), or make any dividend or other distribution with respect to capital stock, or for any personal, family or household purposes;
provided, however, the Borrower may use proceeds of the Loans to repay existing intercompany debt owing to the Company up to the amount set forth on Section 1.4 of the Disclosure Schedule. 
 1.5. SUBORDINATION 
 The Notes and the
indebtedness evidenced by each Note are subordinated to all Senior Debt pursuant to the terms of a Subordination Agreement, dated as of the date hereof, by and between the Lender and the Agent under the 2004 Facility Agreement (as that term is
defined therein). 
 ARTICLE II 
 REPAYMENT; PREPAYMENTS; INTEREST 
 2.1. REPAYMENT OF THE LOAN 
 The Borrower shall repay the aggregate outstanding principal amount of the Loans, together with all accrued but unpaid interest thereon, and all other
obligations arising under this Agreement or the other Transaction Documents, in full, in lawful money of the United States of America, on the earliest of (the “Maturity Date”): (a) October 31, 2009, (b) the second
anniversary of the Availability End Date, or (c) the date upon which the Loans become or are declared due and payable pursuant to Article VII of this Agreement or pursuant to any Note or other Transaction Document. 
  

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 2.2. PREPAYMENTS 
 (a) The Borrower shall have the right to prepay the principal amount of each Loan, in whole or in part, at any time without penalty or premium so long as the Borrower does each of the following: (i) except in
connection with a prepayment as contemplated by Section 7.1(h) (in which case the Borrower shall provide as much prior notice as is reasonably practicable under the circumstances), provides Lender with not less than five (5) Business
Days’ prior written notice of its intent to prepay the Loans, which notice shall be irrevocable and shall state the principal amount to be prepaid, date on which prepayment will be made and shall state that the Borrower terminates the unfunded
portion of the Total Commitment and any right to receive Loans or other extensions of credit from Lender (the “Prepayment Notice”), and (ii) tenders to Lender payment, in respect of the Loans being prepaid: (i) the
principal amount of the Loans to be prepaid, (ii) all accrued and unpaid interest, fees and expenses then outstanding hereunder or any Transaction Document on the date of prepayment; and (iii) all other amounts, if any, that shall have
become due and payable hereunder, under the Notes or under any other Transaction Document. 
 (b) Restrictions on prepayment: 
 (i) No amounts paid or prepaid with respect to any Loan may be reborrowed. 
 (ii) No amounts of the Commitment cancelled may be subsequently reinstated. 
 2.3. INTEREST 
 (a) The Loans shall bear interest on the outstanding principal amount
thereof at a rate of ten percent (10%) per annum from the Closing Date. All accrued interest on the Loans shall be, at the option of the Borrower (unless required to be paid earlier by the terms hereof or any Note): (i) upon not less than
five (5) Business Days’ prior written notice to the Lender, paid by the Borrower to the Lender in arrears on the last day of each calendar quarter, or (ii) if not paid pursuant to clause (i) above, capitalized with, and added to,
the principal amount of such Loan on the last day of each calendar quarter, and shall thereafter be deemed for all purposes to be a part of the principal amount thereof (and the principal amount shall be increased by the amount of such capitalized
interest at the end of such calendar quarter); provided that (1) interest accrued pursuant to Section 2.3(b) shall be payable on demand, and (2) in the event of any repayment or prepayment of the Loans, accrued interest on the
principal amount repaid or prepaid (not previously capitalized and added to the principal amount of the Loans) shall be payable on the date of such repayment or prepayment. All computations of interest shall be made on the basis of a year of 360
days, and actual days elapsed. 
 (b) Notwithstanding the rate of interest specified above, after an Event of Default and during the
continuance thereof (regardless of whether the Loans have been accelerated), the Borrower agrees to pay interest (after as well as before judgment to the extent permitted by applicable law) on all unpaid principal, interest or other amounts owing
under the Transaction Documents, at a rate of thirteen percent (13%) per annum. Unpaid interest on such amounts will continue to accrue and will (to the extent permitted by applicable law) be compounded daily. 
 2.4. USURY 
 Notwithstanding anything herein to
the contrary, if at any time the interest rate applicable to the Loan, together with all fees, charges and other amounts which are treated as interest on the Loans under applicable law shall exceed the maximum lawful rate (the “Maximum
Rate”) which may be contracted for, charged, taken, received or reserved by the Lender in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with all charges payable in respect thereof,
shall be limited to the Maximum Rate. 
  

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 2.5 TAX GROSS UP 
 Any and all payments or reimbursements made hereunder, under the Notes, under the Guaranty or any other Loan Document shall be made free and clear of and without deduction for any and all Taxes or other charges or
withholding and all liabilities with respect thereto of any nature whatsoever imposed by any taxing authority, excluding such taxes to the extent imposed on the Lender’s gross or net income by the jurisdiction in which the Lender is organized,
doing business or otherwise is subject to tax without regard to the transactions contemplated by this Agreement (any such taxes described herein as “Excluded Taxes”). Except with respect to Excluded Taxes, if any Obligor shall be
required by law to deduct any such amounts from or in respect of any sum payable hereunder to the Lender, then the sum payable hereunder or under such other Transaction Document shall be increased as may be necessary so that, after making all
required deductions, the Lender receives an amount equal to the sum it would have received had no such deductions been made. Each Obligor shall (within three (3) Business Days of demand by the Lender) pay to the Lender an amount equal to the
loss, liability or cost that the Lender determines will be or has been, directly or indirectly, suffered for or on account of any Tax (other than Excluded Taxes) in respect of a Loan Document. 
 2.6 OBLIGATIONS ABSOLUTE. 
 The payment obligations of
the Obligors hereunder and under the Transaction Documents shall be absolute, unconditional and irrevocable under all circumstances whatsoever, including, the existence of any claim, set-off, defense or other rights which an Obligor may have at any
time against the Lender or any other Person whether in connection with this Agreement or any related or unrelated transaction. 
 ARTICLE
III 
 CONDITIONS TO CLOSING AND FUNDING 
 3.1. CONDITIONS TO CLOSING. The obligation of the Lender to make the Tranche I Loan, is subject to the fulfillment to the Lender’s satisfaction, on or prior to the Closing Date, of each of the following conditions, unless
otherwise waived in writing by the Lender: 
 (a) Loan Documents. The Lender shall have received, in form and substance satisfactory to
the Lender each of the following: 
 (i) this Agreement; 
 (ii) the Tranche I Note; 
 (iii) the Guaranty; 
 (iv) certificates of the Secretary of the Borrower and the Company with
respect to incumbency and resolutions authorizing the execution and delivery of this Agreement and the other Transaction Documents; and 
 (v) such other documents, instruments and certificates as the Lender may reasonably request. 
 (b)
Execution of Merger Agreement. The Merger Agreement shall have been fully executed and delivered. 
 (c) Consents and Waivers.
The Obligors shall have obtained all necessary consents or waivers, if any, from all parties governmental and private to any Material Contracts to which either Obligor is a party or by which it is bound immediately prior to the Closing in order that
the transactions contemplated by the Transaction Documents may be consummated. 
  

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 (d) Corporate Proceedings. All corporate and other proceedings taken or required to be taken by
the Obligors in connection with the transactions contemplated by this Agreement and the other Transaction Documents to be consummated prior to the Closing shall have been taken, and the Lender shall have received such other documents, in form and
substance reasonably satisfactory to the Lender and its counsel, as to such other matters incident to the transactions contemplated hereby as the Lender may reasonably request.
 3.2. CONDITIONS TO FUNDING EACH LOAN. The obligation of the Lender to make each Loan, including the Tranche I Loan, is subject to the fulfillment to the Lender’s satisfaction, on or prior to the
Funding Date for such Loan, of each of the following conditions, unless otherwise waived in writing by the Lender: 
 (a) Delivery of a
Note. The Borrower shall have executed and delivered a Note prepared by the Lender setting forth the terms of the Loan. 
 (b)
Representations and Warranties Correct; No Default. The representations and warranties of the Obligors set forth in Article IV hereof (including without limitation the representations set forth in the Merger Agreement incorporated herein)
shall be true and correct when made, and shall be true and correct on the Closing Date and each Funding Date with the same force and effect as if they had been made on and as of the Closing Date and each Funding Date. No Event of Default, or any
other event which, with the giving of notice, the lapse of time, or both, would constitute an Event of Default, shall have occurred and be continuing on the date of this Agreement, on the Closing Date, on the date any request for a Loan is submitted
to Lender, or on any Funding Date. 
 (c) Performance. All covenants, agreements and conditions contained in this Agreement to be
performed or complied with by the Obligors on or prior to the Closing Date or any Funding Date shall have been performed or complied with by the Obligors. 
 (d) No Impediments. Neither the Obligors, nor the Lender shall be subject to any order, decree or injunction of a court or administrative or governmental body or agency of competent jurisdiction directing that
the transactions provided for in the Transaction Documents or any material aspect thereof not be consummated as contemplated by the Transaction Documents. There shall not be any action, suit, proceeding, complaint, charge, hearing, inquiry or
investigation before or by any court or administrative or governmental body or agency pending or, to the Obligors’ best knowledge, threatened, wherein an unfavorable order, decree or injunction would prevent the performance of any of the
Transaction Documents or the consummation of any material aspect of the transactions or events contemplated thereby, declare unlawful any aspect of the transactions or events contemplated by the Transaction Documents, cause any material aspect of
the transactions contemplated by the Transaction Documents to be rescinded or have a Material Adverse Effect. 
 (e) Satisfaction of
Milestones. With respect to Tranches II through IX, the Borrower shall have delivered a certificate of the General Director of the Borrower, in form and substance satisfactory to the Lender, certifying that the Borrower has, for the immediately
preceding calendar month, achieved or exceeded the required operating benchmarks set forth on Schedule I hereto, together with such supporting information, worksheets and documentation as the Lender may reasonably request in connection
therewith. 
 (g) Availability Period. The Availability End Date shall not have occurred. 
 ARTICLE IV 
 REPRESENTATIONS AND
WARRANTIES OF THE OBLIGORS 
 The Borrower, on behalf of itself, and the Company, on behalf of itself and the Borrower hereby:
(a) represent and warrant that each Obligor has read and is aware of all of the terms, conditions, representations, warranties, covenants and other undertakings set forth in the Merger Agreement, (b) represent and warrant that each of the
representations and warranties set forth in Article V of the Merger Agreement, as qualified or limited by the Company Disclosure Schedule (as that term is defined in the Merger Agreement), are true, correct and complete, and (c) make, for
purposes of this Agreement, and incorporate herein by this reference as though fully set forth 

  

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herein, each of the representations and warranties set forth in Article V of the Merger Agreement with the intent that such representations shall have
independent force and effect under this Agreement notwithstanding the cancellation, expiration or termination of the Merger Agreement, the enforceability of any term or provision thereof, or any determination that the Merger Agreement is no longer
in force or effect. Without limiting the generality of the foregoing, the Obligors shall be deemed to have made each of the representations and warranties set forth in Article V of the Merger Agreement as of the Closing Date, date of delivery of
each request for a Loan and as of each Funding Date. 
 Except as set forth in (i) the Company Reports (as defined below) filed prior to
the date hereof; or (ii) the applicable section of the disclosure schedule delivered by the Company to Lender on the date hereof (the “Disclosure Schedule”) (it being understood that any matter disclosed in any section or
subsection of the Disclosure Schedule with respect to the corresponding section or subsection of this Agreement shall be deemed to be disclosed under any other section or subsection of this Agreement, as long as the relevance of such disclosure to
such other section or subsection of the Agreement is reasonably apparent, the Obligors hereby jointly and severally represent and warrants to the Lender as follows: 
 4.1. AUTHORIZATION 
 Each of the Obligors has all requisite corporate power and authority
(i) to execute and deliver, and to perform and observe their respective obligations under, the Transaction Documents to which it is a respective party, and (ii) to consummate the transactions contemplated hereby and thereby. This Agreement
has been duly and validly executed and delivered by the Obligors. 
 4.2. BINDING OBLIGATIONS; NO MATERIAL ADVERSE CONTRACTS; NO CONSENTS

 The Transaction Documents constitute valid and binding obligations of the Obligors enforceable in accordance with their respective
terms subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to affecting creditors’ rights and to general equity principles. Except as set forth in
Section 4.2 of the Disclosure Schedule, the execution, delivery and performance by the Obligors of the Transaction Documents and compliance therewith will not result in any violation of and will not conflict with, or result in a breach
of any of the terms of, or constitute a default, or accelerate or permit the acceleration of any rights or obligations, under, any provision of state, local, federal or foreign Law to which any Obligor is subject, the Certificate of Incorporation,
as amended, or the By-Laws, as amended, of any Obligor, or any Material Contract judgment, decree, order, rule or regulation or other restriction to which any Obligor is a party or by which it is bound, result in the creation of any mortgage,
pledge, lien, encumbrance or charge upon any of the properties or assets of such Obligor pursuant to any such term. No stockholder of the Obligors has or will have any preemptive rights or rights of first refusal by reason of the issuance of the
Notes. No filing with or notice to, and no permit, authorization, registration, consent or approval of, any governmental entity is required on the part of either Obligor or any of their respective Subsidiaries for the execution, delivery and
performance by Obligors of this Agreement or the consummation by the Obligors of the transactions contemplated hereby except such filings, notices, permits, authorizations, registrations, consents or approvals, the failure of which to make, give or
obtain would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 4.3 ABSENCE OF CERTAIN CHANGES OR EVENTS.

 Since December 31, 2005 and through the date hereof and each Funding Date, except as disclosed in the Company Reports and
Section 4.3 of the Disclosure Schedule, each of the Company and its Subsidiaries has conducted its business only in the ordinary course of such business, and there has not been any change in or effect on the business, assets, liabilities,
property, financial condition or results of operations of any of the Company and its Subsidiaries that individually or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect. 
  

 6 

 ARTICLE V 
 AFFIRMATIVE COVENANTS 
 The Obligors hereby jointly covenant and agree, so long as any obligations
hereunder, under any Note or any other Transaction Document remain outstanding or the Lender has any obligation to make additional Loans, as follows: 
 5.1. MAINTENANCE OF CORPORATE EXISTENCE; TAXES 
 (a) The Obligors shall maintain in full force and effect their
respective corporate existence, rights and franchises and all terms of licenses and other rights to use licenses, trademarks, trade names, service marks, copyrights, patents, processes or any other Intellectual Property owned or possessed by it and
necessary to the conduct of its business, except where failure to maintain such rights, franchises and terms of licenses and other rights to use such Intellectual Property could not reasonably be expected to have a Material Adverse Effect.

 (b) The Obligors shall (i) promptly pay and discharge, or cause to be paid and discharged when due and payable, all lawful
Taxes, assessments and governmental charges or levies imposed upon the income, profits, assets, property or business of the Obligors and the Subsidiaries, (ii) withhold and promptly pay to the appropriate tax authorities all amounts required to
be withheld from wages, salaries and other remuneration to employees, and (iii) promptly pay all claims or indebtedness (including, without limitation, claims or demands of workmen, materialmen, vendors, suppliers, mechanics, carriers,
warehousemen and landlords) which, if unpaid might become a Lien upon the assets or property of the Obligors; provided, however, that any such Tax, Lien, assessment, charge or levy need not be paid if (1) the validity thereof
shall be contested timely and in good faith by appropriate proceedings, (2) the Obligors shall have set aside on its books adequate reserves with respect thereto, and (3) the failure to pay shall not be prejudicial in any material respect
to the holders of the Notes, and provided further that the Obligors will pay or cause to be paid any such tax, lien, assessment, charge or levy forthwith upon the commencement of proceedings to foreclose any lien which may
have attached as security therefore. Except to the extent prohibited by Article VI of this Agreement, the Obligors shall pay or cause to be paid all other indebtedness incident to the operations of the Obligors or the Subsidiaries. 
 5.2. BASIC FINANCIAL INFORMATION 
 The Obligors
shall furnish the following reports to the Lender, so long as it is a holder of any Note: 
 (a) as soon as practicable, but in any event
within 90 days after the end of each fiscal year of the Obligors, (i) audited balance sheets of the Obligors as at the end of such year, together with audited statements of income and retained earnings and statements of cash flows of the
Obligors for such year, together with notes related thereto, each prepared in accordance with GAAP, consistently applied, and setting out in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and
certified by certified independent public accountants of established national reputation, and (ii) a report of the principal financial officer of the Company containing a management discussion and analysis of the Company’s consolidated
financial condition at the end of such year and the results of operations for such year, including, but not limited to, a description of significant events with respect to the Company and its Subsidiaries, if any, during the preceding year and any
planned or anticipated significant activities or events during the upcoming months; 
 (b) as soon as practicable, but in any event
within 45 days after the end of each of the first three fiscal quarters of the Obligors in each year, (i) an unaudited balance sheet at the end of such quarter, and unaudited statements of income, of profit and loss and of changes in financial
condition of the Obligors (including cash flow statements) for such period and for the current fiscal year to date, in each case prepared in accordance with GAAP, consistently applied (other than for accompanying notes and subject to changes
resulting from year-end audit adjustments), and (ii) a report of the principal financial officer of the Company containing a management discussion and analysis of the Company’s consolidated financial condition at the end of such quarter
and the results of 

  

 7 

 
operations for such quarter and the year to date, including, but not limited to, a description of significant events with respect to the Company and its
Subsidiaries, if any, during such periods and any planned or anticipated significant activities or events during the upcoming months; and 
 (c) with reasonable promptness such other information and financial data concerning the Obligors as any Person entitled to receive materials under this Section 5.2 may reasonably request. 
 5.3. NOTICE OF ADVERSE CHANGE 
 The Obligors
shall promptly give notice to the Lender (but in any event within two days) after becoming aware of the existence of any condition or event which constitutes, or the occurrence of, any of the following: 
 (a) any Event of Default or any default that with the passage of time or the giving of notice would constitute an Event of Default; 
 (b) the institution or threatening of institution of any action, suit or proceeding against the Obligors or any Subsidiary before any court,
administrative agency or arbitrator, including, without limitation, any action of a foreign government or instrumentality, which, if adversely decided, could reasonably be expected to have a Material Adverse Effect; 
 (c) any information relating to the Obligors or any Subsidiary which could reasonably be expected to have a Material Adverse Effect; or 

(d) any failure by the Obligors or any Subsidiary to comply with the provisions of Section 5.4 below. 
 Any notice given under this Section 5.3 shall specify the nature and period of existence of the condition, event, information, development or
circumstance, the anticipated effect thereof and what actions the Company and the Borrower, as the case may be, has taken and proposes to take with respect thereto. 
 5.4. COMPLIANCE WITH AGREEMENTS; COMPLIANCE WITH LAWS 
 The Company shall, and shall cause its
Subsidiaries to, comply with the terms and conditions of all Material Contracts. The Company shall, and shall cause each Subsidiary to, duly comply with any Laws relating to the conduct of their respective businesses, properties or assets, in each
case except for any such noncompliance that could not reasonably be expected to have a Material Adverse Effect. 
 5.5. PROTECTION OF LICENSES

 The Company shall, and shall cause its Subsidiaries to, maintain, defend and protect to the best of their ability licenses and
sublicenses (and to the extent the Company or a Subsidiary is a licensee or sublicensee under any license or sublicense, as permitted by the license or sublicense agreement), trademarks, trade names, service marks, patents and applications therefore
and other proprietary information or Intellectual Property owned or used by it or them and shall keep duplicate copies of any licenses, trademarks, service marks or patents owned or used by it, if any, at a secure place selected by the Company.

 5.6. ACCOUNTS AND RECORDS; INSPECTIONS 
 (a) The Company shall keep true records and books of account in which full, true and correct entries will be made of all dealings or transactions in relation to the business and affairs of the Company and its Subsidiaries in accordance
with GAAP applied on a consistent basis. 
  

 8 

 (b) The Obligors shall permit the Lender or any of such Lender’s officers, employees or
representatives during regular business hours of the Obligors, upon reasonable notice and as often as the Lender may reasonably request, to visit and inspect the offices and properties of the Obligors and to make extracts or copies of the books,
accounts and records of the Obligors or the Subsidiaries, and to discuss the affairs, finances and accounts of the Obligors and the Subsidiaries, with the Obligors’ directors and officers, its independent public accountants, consultants and
attorneys. 
 (c) Nothing contained in this Section 5.6 shall be construed to limit any rights that the Lender may have with
respect to the books and records of the Obligors and the Subsidiaries, to inspect its properties or to discuss its affairs, finances and accounts. 
 5.7. MAINTENANCE OF OFFICE 
 The Obligors will maintain its principal office at the address of the Obligors set forth in
Section 10.4 of this Agreement where notices, presentments and demands in respect of this Agreement, the Notes and the other Transaction Documents may be made upon the Obligors, until such time as the Obligors shall notify the Lender in
writing, at least 30 days prior thereto, of any change of location of such office. 
 5.8. FURTHER ASSURANCES 
 From time to time the Obligors shall execute and deliver to the Lender such other instruments, certificates, agreements and documents and take such other
action and do all other things as may be reasonably requested by the Lender in order to implement or effectuate the terms and provisions of this Agreement and the transactions contemplated hereby. 
 5.9. SEC REPORTS 
 The Company will file, on a
timely basis, any SEC Reports and keep all such SEC Reports and public information current, provided that, without limiting any obligations or requirements of the Merger Agreement, if the Company is unable to timely file any such SEC Report,
so long as the Company files a Form 12b-25 in the time frame required by Rule 12b-25 promulgated under the Securities Exchange Act of 1934, as amended, the Company shall not be in violation of this Section 5.9 if it is using reasonable
diligence to file such SEC Report as soon as practicable. The Company agrees that none of the SEC Reports filed by the Company will, at the time of filing, contain any untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they are made, not misleading. 
 ARTICLE VI 
 NEGATIVE COVENANTS 
 Each Obligor hereby covenants and agrees, so long as any obligations hereunder, under any Note or any other Transaction Document remain outstanding, or
the Lender has any obligation to make additional Loans, it will not, and will not permit any of its Subsidiaries, directly or indirectly, without the prior written consent of the Lender: 
 6.1. STAY, EXTENSION AND USURY LAWS 
 At any time insist upon, plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereinafter in force, which may affect the covenants or the performance of the Notes, this Agreement or the other Transaction Documents,
the Obligors hereby expressly waiving all benefit or advantage of any such law, or by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Lender but will suffer and permit the execution of every such
power as though no such law had been enacted. 
  

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 6.2. LIENS 
 Except as otherwise provided in this Agreement or any other Transaction Document, create, incur, assume or permit to exist any Lien on any part of its properties or assets, or on any interest it may have therein, now
owned or hereafter acquired. 
 6.3. INDEBTEDNESS 
 Create, incur, assume, suffer, permit to exist, or guarantee, directly or indirectly, any indebtedness, excluding: 
 (a) indebtedness existing on the date hereof and described in Section 6.3 of the Disclosure Schedule; 
 (b) indebtedness incurred by the Borrower relating to vendor financing provided that such vendor financing is incurred in its ordinary course of business for the purposes of building out the Broadband Cable Network and has been
consented to by the Lender; 
 (c) indebtedness relating to amounts owed to an Obligor; 
 (d) indebtedness relating to trade credit in the ordinary course of business; or 
 (e) the Notes. 
 6.4. ARM’S LENGTH
TRANSACTIONS 
 Enter into any transaction, contract or commitment or take any action other than at Arm’s Length, unless such
transaction, contract or arrangement is entered into with an Obligor. 
 6.5. LOANS AND ADVANCES 
 Make any advance or loan to, or guarantee any obligation of, or make any investment in any Person, except for an intercompany loans or advances in the
ordinary course of business and those provided for in this Agreement. 
 6.6. OTHER BUSINESS 
 Enter into or engage, directly or indirectly, in any business other than the business currently conducted or proposed to be conducted as disclosed to the
Lender prior to the date hereof by the Obligors. 
 6.7. OTHER NEGATIVE PLEDGES 
 (a) Except as set forth in Section 7.1 of the Company Disclosure Schedule, the business of the Company and the Subsidiaries shall be conducted only
in the ordinary course and, to the extent consistent therewith, the Company and its Subsidiaries shall use their respective commercially reasonable efforts to preserve their business organizations intact and maintain their existing relations and
goodwill with customers, suppliers, distributors, creditors, lessors, key employees and business associates and keep available the services of the present key employees of the Company and the Subsidiaries. 
  

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 (b) Without limiting the generality of Section 6.7(a) and in furtherance thereof, the Company shall
not and shall not permit its Subsidiaries to (unless the Lender shall otherwise approve in writing, in its sole discretion): 
 (i) adopt or propose any change in its certificate of incorporation or By-Laws (or similar governing documents); 
 (ii) merge or consolidate the Company or any of its Subsidiaries with any other Person, except for any such transactions among wholly-owned Subsidiaries of the Company; 
 (iii) acquire assets outside of the ordinary course of business from any Persons with a purchase price in excess of $100,000 in the
aggregate except pursuant to Contracts in effect as of the date of this Agreement; 
 (iv) other than (A) as required by
the terms of Contracts in effect as of the date of this Agreement, (B) upon the exercise of outstanding Company Options or Company Common Warrants or warrants to purchase Series B Stock, (C) pursuant to the terms of the Debentures (to the
extent required by such terms) or (D) upon conversion of outstanding shares of Series A Stock and Series B Stock, in each case, in accordance with their terms, issue, sell, pledge, dispose of, grant, transfer, lease, license, guarantee,
encumber, or authorize the issuance, sale, pledge, disposition, grant, transfer, lease, license, guarantee or encumbrance of, any shares of capital stock of the Company or any Subsidiary (other than the issuance of shares by a wholly-owned
Subsidiary of the Company to the Company or another wholly-owned Subsidiary), or securities convertible or exchangeable or exercisable for any shares of such capital stock, or any options, warrants or other rights of any kind to acquire any shares
of such capital stock or such convertible or exchangeable securities; 
 (v) declare, set aside, make or pay any dividend or
other distribution, payable in cash, stock, property or otherwise, with respect to any of its capital stock (except for (i) dividends or other distributions by any direct or indirect wholly-owned Subsidiary of the Company to the Company or to
any other direct or indirect wholly-owned Subsidiary of the Company, (ii) periodic dividends and other periodic distributions by non-wholly-owned Subsidiaries of the Company in the ordinary course of business and (iii) declaration and
payment of scheduled dividends with respect to the Series A Stock); 
 (vi) reclassify, combine, split, subdivide or redeem,
purchase or otherwise acquire, directly or indirectly, any of its capital stock or securities convertible or exchangeable into or exercisable for any shares of its capital stock; 
 (vii) incur any third-party indebtedness for borrowed money or guarantee indebtedness or any other obligation of another Person other than
in the ordinary course of business consistent with past practice and in compliance with the Company’s existing Contracts; 
 (viii) enter into any Contract that would have been a Material Contract had it been entered into prior to the execution of this Agreement, other than any such Contract (A) entered into in the ordinary course of business or
(B) providing for any capital expenditure to the extent permitted by Section 6.7(c)(ii); 
 (ix) other than in the
ordinary course of business, amend or modify in any material respect, or terminate or waive any material right or benefit under, any Material Contract; 
 (x) make any changes with respect to accounting policies or practices, except as required by changes in GAAP or by Legal Requirement; 
 (xi) settle any litigation or other proceedings before or threatened to be brought before a Governmental Entity or arbitral proceeding for
an amount payable by or on behalf of the Company or any Subsidiary in excess of $100,000 in the aggregate for all such litigation or proceedings (exclusive of any amounts to be received by the Company in reimbursement of such settlement amount,
whether under any insurance policy or indemnity, other than such amounts that are contested) or which would be reasonably likely to have any material adverse impact on the operations of the Company or any of its Subsidiaries or on any current or
future litigation or other proceeding of the Company or any of its Subsidiaries; 
  

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 (xii) sell, lease, license or otherwise dispose of any assets of the Company or its
Subsidiaries except for sales of (A) products or services provided in the ordinary course of business or (B) other assets in aggregate amount not in excess of $100,000 in the aggregate, and other than pursuant to Contracts in effect as of
the date of this Agreement; 
 (xiii) engage in the conduct of any new line of business; or 
 (xiv) agree, resolve or commit to do any of the foregoing. 
 (c) Without limiting the generality of Section 6.7(a) and in furtherance thereof, the Company shall not and shall not permit its Subsidiaries to (unless the Lender shall otherwise approve in writing, which
approval shall not be unreasonably withheld or delayed): 
 (i) other than pursuant to Contracts in effect as of the date of
this Agreement and disclosed on the Disclosure Schedule, make any loan, advance or capital contribution to or investment in any Person (other than a wholly-owned Subsidiary of the Company) outside the ordinary course of business; 
 (ii) make or authorize any capital expenditure in excess of $100,000 in the aggregate; 
 (iii) except as required by Law, make any material Tax election or take any material position on any material Tax Return filed on or after
the date of this Agreement or adopt any material method therefor that is inconsistent with elections made, positions taken or methods used in preparing or filing similar Tax Returns in prior periods; 
 (iv) other than pursuant to Contracts in effect as of the date of this Agreement and identified on the Disclosure Schedule or as otherwise
required by Law, (A) enter into any new employment or compensatory agreements with, or increase the compensation and employee benefits of, any employee, consultant, or director of the Company or any Subsidiary (including entering into any
bonus, severance, change of control, termination, reduction-in-force or consulting agreement or other employee benefits arrangement or agreement pursuant to which such person has the right to any form of compensation from the Company or any
Subsidiary), (B) hire any employee to fill a position at the level of (i) executive officer or (ii) vice president or above who reports directly to an executive officer, or (C) adopt or amend in any respect, or accelerate vesting
or payment under, any Benefit Plan in the case of clauses (A) and (C) above other than in the ordinary course of business consistent with past practice; or 
 (v) agree, resolve or commit to do any of the foregoing. 
 ARTICLE VII 
 EVENTS OF DEFAULT 
 7.1. EVENTS OF DEFAULT 
 If any of the following events shall occur and be continuing, an
“Event of Default” shall be deemed to have occurred: 
 (a) if the Borrower shall default in the payment of any part of
the principal or interest of any Note, when the same shall become due and payable, whether at maturity or at a date fixed for payment or prepayment or by acceleration or otherwise; 
  

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 (b) if the Obligors shall default in the performance of any of the covenants contained in Articles V
or VI and, in a case of a default under Section 5.1 through and including Section 5.7 (exclusive of Section 5.1(c)), such default shall have continued without cure for fifteen (15) days after written notice (“Default
Notice”) is given to the Borrower with respect to such covenant by the Lender (and the Borrower shall give to all of the holders of the Notes at the time outstanding prompt written notice of the receipt of such Default Notice, specifying
the default referred to therein); provided, however, that such 15 day grace period shall not apply in the event the Borrower fails to give notice as provided in Section 5.3; provided, further, that no Loans may be
requested and Lender shall have no obligation to fund Loans during such grace period; 
 (c) except as provided in Section 7.1(b),
if the Company or the Borrower shall default in the performance of any other agreement contained in any Transaction Document or in any other agreement executed in connection with this Agreement and such default shall not have been remedied to the
satisfaction of the Lender within 15 days after notice thereof shall have been given to the Borrower; provided, however, that such 15 day grace period shall not apply in the event the Borrower fails to give notice as provided in
Section 5.3; provided, further, that no Loans may be requested and Lender shall have no obligation to fund Loans during such grace period; 
 (d) if any representation or warranty made by the Obligors or any of their officers in any Transaction Document or in or any certificate delivered pursuant thereto shall prove to have been incorrect in any
material respect when made or deemed made; 
 (e) if any default shall occur under any indenture, mortgage, agreement, instrument or
commitment evidencing, or under which there is at the time outstanding, any indebtedness of the Company or its Subsidiaries, in excess of $250,000, or which results in such indebtedness, in an aggregate amount (with other defaulted indebtedness) in
excess of $250,000 becoming (or being declared by its holders or, on its behalf, by an agent or trustee therefore to be) due and payable prior to its due date; 
 (f) if a Change of Control occurs; 
 (g) if there shall occur a termination of the Merger Agreement
under Section 9.4 (other than 9.4(a)) thereof; 
 (h) if there shall occur a termination of the Merger Agreement under
Section 9.3(e) thereof and the Lender has not, within five (5) Business Days after such termination, waived in writing the Event of Default that would result from such termination with the passage of time; provided, however,
such termination shall not be an Event of Default hereunder until ten (10) Business Days shall have passed after the date of such termination and the Loans shall not have been prepaid in accordance with Section 2.2 hereof; provided,
further, that no Loans may be requested and Lender shall have no obligation to fund Loans from and after the date of such termination; 
 (i) if any of the Company or its Subsidiaries shall default in the observance or performance of any term or provision of any other Material Contract to which it is a party or by which it is bound which default could reasonably be
expected to have a Material Adverse Effect and such default is not waived or cured within the applicable grace period; provided, however, that no Loans may be requested and Lender shall have no obligation to fund Loans during such
grace period;
 (j) if a final judgment which, either alone or together with other outstanding final judgments against the Company and
its Subsidiaries, exceeds an aggregate of $250,000 shall be rendered against the Company or any Subsidiary and such judgment shall have continued undischarged or unstayed for 10 days after entry thereof; provided, further, that no
Loans may be requested and Lender shall have no obligation to fund Loans during such grace period; 
 (j) if the Company or any
Subsidiary shall generally not pay its debts as such debts become due, or otherwise become insolvent, or shall make an assignment for the benefit of creditors generally, or shall admit in writing its inability to pay its debts generally; or if any
proceeding shall be instituted by or against the Company or 

  

 13 

 
any Subsidiary seeking to adjudicate it as bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection,
relief or composition of it or its debts under any law relating to bankruptcy, insolvency or the reorganization or relief of debtors, or seeking entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar
official for it or for any substantial part of its property and, in the case of such proceeding instituted against it (but not instituted by it) that is being diligently contested by it in good faith, either such proceeding shall remain undismissed
or unstayed for a period of 45 days (provided that no Loans may be requested and Lender shall have no obligation to fund Loans prior to the dismissal of such proceeding) or any of the actions sought in such proceeding (including, without limitation,
the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or any substantial part of its property) shall occur; or if any writ of attachment or execution or any similar process
shall be issued or levied against it or any substantial part of its property which is either not released, stayed, bonded or vacated within 45 days after its issue or levy or any of the actions sought or relief sought in any proceeding pursuant to
which such writ or similar process shall be issued or initiated shall occur or be granted; or if the Company or any Subsidiary takes corporate action in furtherance of any of the aforesaid purposes or conditions; 
 (k) if any provision of any Transaction Document shall for any reason cease to be valid and binding on, or enforceable against, the Obligors; or

 (l) any Transaction Document (or any financing statement) which purports to provide for the priority in right of payment of the
Borrower’s obligations under the Transaction Documents to or in favor of the Lender shall cease to preserve such priority. 
 7.2. REMEDIES

 Upon the occurrence and during the continuance of an Event of Default, the Lender may at any time, at its option, by written notice or
notices to the Obligors (a) declare the Notes to be due and payable, whereupon the same shall forthwith mature and become due and payable, together with interest accrued thereon, without presentment, demand, protest or notice, all of which are
hereby waived by the Obligors; and (b) declare any other amounts payable to the Lender under this Agreement or the other Transaction Documents or as contemplated hereby or thereby immediately due and payable; provided, however,
that upon the occurrence of an Event of Default under Section 7.1(j), the Notes, together with interest accrued thereon, and all other amounts owing hereunder or under any other Transaction Document shall automatically become and be due and
payable, without presentment, demand, protest or notice of any kind, or any other action of the Lender of any kind, all of which are hereby waived by the Obligors. 
 7.3. ENFORCEMENT 
 In case any one or more Events of Default shall occur and be continuing, the Lender or its agents may
proceed to protect and enforce the rights of the Lender (granted to it or to its agent) by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement in favor of the Lender or its agent
which is contained in any of the Transaction Documents or in any Note or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law (including, without
limitation, the right to enforce the Guaranty in accordance with its terms). In case of a default in the payment of any principal of or interest on the Note, the Obligors will pay to the holder thereof such further amount as shall be sufficient to
cover the cost and the expenses of collection, including, without limitation, reasonable attorney’s fees, expenses and disbursements. No course of dealing and no delay on the part of the Lender or its agents in exercising any rights shall
operate as a waiver thereof or otherwise prejudice the Lender’s or its agent’s rights. No right conferred hereby or by the Notes or any other Transaction Document upon any holder thereof shall be exclusive of any other right referred to
herein or therein or now available at law or in equity, by statute or otherwise. 
  

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 ARTICLE VIII 
 INDEMNIFICATION 
 To the greatest extent permitted by applicable law, the Obligors agree jointly and
severally to indemnify the Lender and each of its officers, directors, agents, partners and stockholders, against and hold it and them harmless from all Losses arising out of or resulting from: (i) the breach of any representation or warranty
of the Obligors in any Transaction Document or in any agreement, certificate or instrument delivered pursuant thereto; (ii) the breach of any agreement by the Obligors contained in any Transaction Document or any agreement, certificate of
instrument delivered pursuant thereto; (iii) all obligations, demands, claims, and liabilities claimed or asserted by any other party in connection with the transactions contemplated by this Agreement. 
 ARTICLE IX 
 AMENDMENT AND WAIVER

 No amendment of any provision of this Agreement, including any amendment of this Article IX, shall be valid unless the same shall be
in writing and signed by the Obligors and the Lender. No waiver by any party of any default, misrepresentation, or breach of warranty or covenant hereunder or under any other Transaction Document, whether intentional or not, shall be deemed to
extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or thereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence. 
 ARTICLE X 
 MISCELLANEOUS

 10.1. GOVERNING LAW 
 This
Agreement and the rights of the parties hereunder shall be governed in all respects by the laws of the State of New York wherein the terms of this Agreement were negotiated, excluding to the greatest extent permitted by law any rule of law that
would cause the application of the laws of any jurisdiction other than the State of New York. 
 10.2. SUCCESSORS AND ASSIGNS 
 Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon and enforceable by and against,
the parties hereto and their respective successors, assigns, heirs, executors and administrators. No party may assign any of its rights hereunder without the prior written consent of the other parties; provided, however, that the
Lender may assign any of its rights under any of the Transaction Documents to (a) any Affiliate of the Lender or (b) any Person to whom such Lender shall transfer the Notes, provided, that in each case the transferee will be subject
to the applicable terms of the Transaction Documents to the same extent as if such transferee were an original Lender hereunder. 
 10.3. ENTIRE
AGREEMENT 
 This Agreement (including the Exhibits and/or Schedules hereto), the other Transaction Documents and any other documents
delivered pursuant hereto and simultaneously herewith constitute the full and entire understanding and agreement between the parties with regard to the subject matter hereof and thereof. 
  

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 10.4. NOTICES 
 All notices, demands or other communications given hereunder shall be in writing and shall be sufficiently given if transmitted by facsimile or delivered either personally or by a nationally recognized courier service
marked for next business day delivery or sent in a sealed envelope by first class mail, postage prepaid and either registered or certified, return receipt requested, addressed as follows: 
 (a) if to the Company: 
 MOSCOW CABLECOM CORP. 
 153 East 53rd Street, 58th Floor, 
 New York, NY 10022 
 Attention: Chief Financial Officer 
 Facsimile: 860-298-0685 
 (b) if to the Borrower: 
 ZAO
COMCOR-TV 
 Neglinnaya Street, 17, Building 2 
 103051, Moscow, Russian Federation 
 Attention: Mr. Mikhail Silin 
 General Director 
 Facsimile: 7-495-231-3086 
 (b) if to the Lender: 
 RME FINANCE LTD 
 3, Chrysanthou Mylona Street 
 P.C. 3030, Limassol 
 Republic of Cyprus 
 Attention: Director 
 with a
copy to: 
 RME MANAGEMENT LIMITED 
 Representative Office in Russia 
 Obraztsova Street, 4A 
 Moscow 127055, Russian Federation 
 Attention: Head of Representative Office 
 Facsimile: 7-495-657-9672 
 Any such notice, demand or communication shall be deemed to have been given
(i) on the date of delivery, if delivered personally, (ii) on the date of facsimile transmission, receipt confirmed, (iii) one business day after delivery to a nationally recognized overnight courier service, if marked for next day
delivery, or (iv) five business days after the date of mailing, if mailed. 
 (c) Copies of any notice, demand or communication given to the Company and the Borrower shall also be delivered to Porzio, Bromberg & Newman P.C., 156 W. 56th Street, New York, New York 10019, Attn: Christopher F. Schultz, Esq., or such other address as may be directed. 
  

 16 

 10.5. DELAYS, OMISSIONS OR WAIVERS 
 No delay or omission to exercise any right, power or remedy accruing to the Lender upon any breach or default of the Obligors under this Agreement shall
impair any such right, power or remedy of the Lender nor shall it be construed to be a waiver of any such breach or default, or an acquiescence, therein, or of or in any similar breach or default thereafter occurring. Any permit, consent or approval
of any kind or character on the part of the Lender of any breach or default under this Agreement must be made in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or
by law or otherwise afforded to the Lender, shall be cumulative and not alternative. The Lender shall have all other rights and remedies not inconsistent herewith as provided under the Uniform Commercial Code in effect from time to time, by law, or
in equity. No exercise by the Lender of one right or remedy shall be deemed an election, and no waiver by the Lender of any Event of Default shall be deemed a continuing waiver. 
 10.6. INDEPENDENCE OF COVENANTS AND REPRESENTATIONS AND WARRANTIES 
 All covenants hereunder
shall be given independent effect so that if a certain action or condition constitutes a default under a certain covenant, the fact that such action or condition is permitted by another covenant shall not affect the occurrence of such default. In
addition, all representations and warranties hereunder shall be given independent effect so that if a particular representation or warranty proves to be incorrect or is breached, the fact that another representation or warranty concerning the same
or similar subject matter is correct or is not breached will not affect the incorrectness of or a breach of a representation and warranty hereunder. 
 10.7. RIGHTS AND OBLIGATIONS; SEVERABILITY 
 Unless otherwise expressly provided herein, the Lender’s rights and
obligations hereunder are several rights and obligations, not rights and obligations jointly held with any other Person. In case any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby. 
 10.8. JURISDICTION 
 (a) Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the
United States District Court for the Southern District of New York (the “Court”) in any action or proceeding arising out of or relating to this Agreement or any of the other Transaction Documents to which it is a party or to whose benefit
it is entitled, or for recognition or enforcement of any judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such Court. Each of
the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the right that any party may otherwise have to bring any action or proceeding relating to this
Agreement or any of the other Transaction Documents in the courts of any other jurisdiction. 
 (b) Each of the parties hereto
irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or in relation to this
Agreement or any other Transaction Document to which it is a party in such Court. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in such Court. 
 10.9. WAIVER OF JURY TRIAL 
 EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO ANY TRANSACTION
DOCUMENT OR THE ACTIONS OF ANY PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF. 
  

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 10.10. TITLES AND SUBTITLES 
 The titles of the articles, sections and subsections of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement. 
 10.11. COUNTERPARTS 
 This Agreement may be
executed in any number of counterparts, including by facsimile copy, each of which shall be deemed an original, but all of which together shall constitute one instrument. 
 10.12. MARSHALLING; RECOURSE TO SECURITY; PAYMENTS SET ASIDE 
 The Lender shall not be under any
obligation to marshal any assets in favor of the Obligors or any of its Affiliates or any other party or against or in payment of any or all of the Loans or other obligations hereunder. Recourse to security shall not be required at any time. To the
extent that the Borrower makes a payment or payments to the Lender or the Lender enforces its security interests, if any, or exercises its rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then to
the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all liens, rights and remedies therefor, shall be revived and continued in full force and effect as if such payment had not been made or such
enforcement or setoff had not occurred. 
 10.13. ENGLISH LANGUAGE VERSION CONTROLS 
 The parties may execute a copy of this Agreement in both the English and the Russian language. The parties hereto acknowledge and agree that, in the event
of a discrepancy or conflict, between the English and the Russian language versions, in all cases, the English language version shall control and prevail in all respects. 
 ARTICLE XI 
 CERTAIN DEFINED TERMS 
 For purposes of this Agreement, the following terms have the meanings indicated (unless otherwise expressly provided herein): 
 “2004 Facility Agreement” means that certain Facility Agreement, dated as of August 24, 2004 by and among the RME FINANCE LTD,
formerly known as AMATOLA ENTERPRISES LIMITED, the Company, the Borrower, and the other parties thereto, as the same may be amended, modified, supplemented or restated from time to time. 
 “Affiliate” has the meaning specified in Rule 501(b) under the Securities Act. 
 “Availability End Date” means the earliest to occur of: (a) October 31, 2007, (b) the occurrence of an Event of Default,
(c) the date that is ninety (90) days after the effective date of a termination of the Merger Agreement pursuant to Sections 9.1 or 9.3 thereof (other than a termination pursuant to Section 9.3(e)), (d) the date that is sixty
(60) days after the effective date of a termination of the Merger Agreement pursuant to Section 9.2 thereof, (e) the effective date of a termination of the Merger Agreement pursuant to Sections 9.3(e) or Section 9.4 thereof, or
(f) the occurrence of the Closing, as that term is defined in the Merger Agreement. 
  

 18 

 “Benefit Plans” shall mean with respect to the Company and each Subsidiary of the
Company, (i) all employee benefit plans (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended ERISA, (ii) each loan to any current or former non-officer employee, officer or directors or
director and any stock option, stock purchase, phantom stock, stock appreciation right, equity based award, supplemental retirement, severance, termination, change in control, sabbatical, medical, dental, vision care, disability, employee
relocation, cafeteria benefit (Code Section 125) or dependent care (Code Section 129), life insurance or accident insurance plans, programs or arrangements, (iii) all bonus, pension, profit sharing, savings, deferred compensation or
incentive plans, programs, policies, agreements or arrangements, (iv) other fringe, welfare or employee benefit plans, programs, policies, agreements or arrangements, and (v) any current or former employment or, consulting, retention,
executive compensation or severance agreements or arrangements, written or otherwise, for the benefit of, or relating to, any present or former employee, consultant or director of the Company with respect to which the Company or any Company
Subsidiary has or could reasonably have any liability. 
 “Board of Directors” means the board of directors of an Obligor.

 “Business Day” shall mean any day other than a Saturday, Sunday, U.S. Federal holiday or any other day on which banking
institutions in New York City, United States of America or Moscow, Russian Federation, are authorized or obligated by Law to be closed. 
 “Change of Control” means the occurrence of any of the following: (a) the Borrower ceases to be a wholly-owned Subsidiary of the Company; (b) any “person” or “group” (within the meaning of
Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of a sufficient number of shares of all
classes of Voting Stock then outstanding of the Company, empowering such “person” or “group” to elect a majority of the Board of Directors of the Company, who did not have such power before such transaction, (c) an Obligor
consolidates with, or merges with or into, another Person (other than a direct or indirect wholly owned Subsidiary where the Obligor is the surviving entity and no default or Event of Default exists or would exist immediately after giving effect
thereto) or sells, assigns, conveys, transfers, leases or otherwise disposes of all or substantially all of an Obligor’s assets or the assets of the Company and its Subsidiaries taken as a whole to any Person, or any Person consolidates with,
or merges with or into, an Obligor, in any such event pursuant to a transaction in which the outstanding Voting Stock of the Obligor, as the case may be, is converted into or exchanged for cash, securities or other property, or (d) an Obligor,
either individually or in conjunction with one or more Subsidiaries sells, assigns, conveys, transfers, leases or otherwise disposes of, or the Subsidiaries sell, assign, convey, transfer, lease or otherwise dispose of, all or substantially all of
the properties and assets of the Company and its Subsidiaries, taken as a whole (either in one transaction or a series of related transactions), including capital stock of the Subsidiaries, to any Person (other than an Obligor or a wholly owned
Subsidiary of an Obligor), provided that the aforesaid shall not apply to any merger or consolidation of an Obligor or the Subsidiaries with the Lender or any Affiliate of the Lender. For purposes of this definition, the term “Voting
Stock” of an Obligor means securities of any class of capital stock of such Obligor entitling the holders thereof to vote in the election of members of the Board of Directors. 
 “Code” means the Internal Revenue Code of 1986, as amended, and any applicable rules and regulations thereunder, and any successor to
such statute, rules or regulations. Any reference herein to a specific section, rule or regulation of the Code shall be deemed to include any corresponding provisions of future law. 
 “Common Stock” means the common stock, $0.01 par value, of the Company (now or hereafter issued). 
 “Company Options” means outstanding stock option to purchase shares of Common Stock 
 “Company Reports” means each registration statement, report, notification, proxy statement or information statement filed by the Company
since December 31, 2003 including without limitation the Company’s Annual Reports on Form 10-K for the years ended December 31, 2003, December 31, 2004 and December 31, 2005, respectively, and the Company’s Reports
on Form 10-Q for the quarterly periods ended March 31, 2004, June 30, 2004, September 30, 2004, March 31, 2005, June 30, 2005, September 30, 2005, March 31, 2006, June 30,
2006, and September 30, 2006, respectively and the Company’s reports on Form 8-K, each in the form (including exhibits, annexes and any amendments thereto) filed with the SEC, together with any such reports filed subsequent to the date
hereof. 
  

 19 

 “Company Warrants” means each warrant to purchase shares of Common Stock

 “Contracts” means any note, bond, mortgage, indenture, lease, license, contract, agreement or other instrument or
obligation, whether written or oral. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended and
any applicable rules and regulations thereunder, and any successor to such statute, rules or regulations. Any reference herein to a specific section, rule or regulation of ERISA shall be deemed to include any corresponding provisions of future law.

 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and any applicable rules and regulations
thereunder, and any successor to such statute, rules or regulations. Any reference herein to a specific section, rule or regulation of the Exchange Act shall be deemed to include any corresponding provisions of future law. 
 “Funding Date” means any date on which a Loan is made to or on account of the Borrower under this Agreement. 
 “GAAP” means generally accepted accounting principles in the United States. 
 “Guaranty” means the Continuing Unconditional Guaranty, dated as of the date hereof, by the Company in favor of the Lender, as the same
may be amended, modified, supplemented, restated or extended from time to time. 
 “Intellectual Property” means any and all
patents, patent applications, trademarks, copyrights, trademark registrations and applications therefore, patent, trademark or trade name licenses, service marks, domain names, contracts with employees or others relating in whole or in part to
disclosure, assignment or patenting of any inventions, discoveries, improvements, processes, formulae or other know-how, and all patent, trademark or trade names or copyright licenses which are in force. 
 “IRS” means the Internal Revenue Service. 
 “Laws” means any federal, state, local, municipal, foreign or other law, statute, constitution, principle of common law, resolution, ordinance, code, order, edict, judgment, decree, rule, regulation,
ruling or requirement issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any governmental entity. 
 “Lien” means with respect to any asset (including any security) any option, claim, mortgage, lien, pledge, charge, security interest or encumbrance or restrictions of any kind in respect of such
asset, other than: (i) statutory Liens of landlords, statutory Liens of banks and statutory rights of set-off of banks, statutory Liens of carriers, warehousemen, mechanics, repairmen, workmen and materialmen, retention of title arrangements
and other Liens imposed by law, in each case incurred in the ordinary course of business (A) for amounts not yet overdue or (B) for amounts that are overdue and that (in the case of such amounts overdue for a period in excess of 30 days)
are being contested in good faith by appropriate proceedings, so long as such reserves or other appropriate provisions, if any, will have been made for any such contested amounts and such Liens do not have priority over any Liens of Lender;
(ii) easements, rights-of-way, restrictions, encroachments, and other minor defects or irregularities in title with respect to real property, in each case which do not and will not interfere in any material respect with the ordinary conduct of
the business of the Company or any Subsidiary; (iii) any zoning or similar law or right reserved to or vested in any governmental office or agency to control or regulate the use of any real property; and (iv) Liens that do not either
adversely affect the value of the real property subject to such Lien or prohibit or interfere with the operations of that real property or the business of the Company or the Subsidiaries. 
  

 20 

 “Losses” means any claims, losses, damages, liabilities (or actions in respect thereof),
obligations, penalties, awards, judgments, expenses (including, without limitation, reasonable fees and expenses of counsel) or disbursements. 
 “Material Adverse Effect” means any state of facts, change, development, event, effect, condition or occurrence (including, without limitation, any breach of a representation or warranty contained herein by the Company)
that, individually or in the aggregate, materially and adversely affects (i) the business, assets, liabilities, property, financial condition or results of operations of the Company, the Borrower and their respective Subsidiaries, taken as a
whole or (ii) the ability of the Company or its Subsidiaries to perform its obligations hereunder or under the Notes the Guaranty or the other Transaction Documents, provided, however, that none of the following shall be deemed in
and of themselves, either alone or in combination, to constitute, and none of the following shall be taken into account, alone or in combination, in determining whether there has been or will be, a Material Adverse Effect: (1) any change in
general economic or political conditions not specifically relating to the Company or the Borrower and not disproportionately adversely affecting the Company or the Borrower, (2) any change in prevailing interest rates or currency exchange
rates, (3) any change in GAAP, (4) any change proximately resulting from the execution of the Merger Agreement, the consummation of the transactions contemplated thereby and the announcement thereof, and (5) any change resulting from
the Company’s failure to meet internal forecasts or third party analyst estimates or projections, provided however that the exception in this clause (5) shall not in any way prevent or otherwise affect a determination that any change,
effect, event, occurrence, state of facts or development underlying such failure constitutes a Material Adverse Effect. 
 “Merger
Agreement” means the Agreement and Plan of Merger, dated as of the date hereof, by and among Renova Media Enterprises Ltd., the Company and Galaxy Merger Sub Corporation, a Delaware corporation, as the same may be amended, modified or
supplemented from time to time in accordance with the terms thereof. 
 “Person” means any individual, corporation, limited
liability company, partnership, association, trust or any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 
 “Preferred Stock” means the Series A Stock and the Series B Stock. 
 “SEC” means the Securities and Exchange Commission. 
 “SEC Reports” means any reports, statements, releases or other documents required to be filed by the Borrower with the SEC under the Exchange Act. 
 “Securities Act” means the Securities Act of 1933, as amended, and any applicable rules and regulations thereunder, and any successor to
such statute, rules or regulations. Any reference herein to a specific section, rule or regulation of the Securities Act shall be deemed to include any corresponding provisions of future law. 
 “Senior Debt” means any and all loans, advances, obligations and liabilities of the Company and the Borrower now existing or hereafter
arising, primary or secondary, arising under or relating to the 2004 Facility Agreement, any Finance Document (as that term is defined in the 2004 Facility Agreement) and any and all documents, instruments and agreements entered into in connection
therewith, in each case as amended from time to time including (i) all principal of and interest (including any interest which accrues after the commencement of any case, proceeding or other actions relating to the bankruptcy, insolvency or
reorganization of the Borrower, the Company or any other “Obligor” as that term is defined therein) on any loans or other extensions of credit under the 2004 Facility Agreement, or any notes or instruments issued thereunder and any and all
costs of collection, fees and expenses associated therewith, (ii) all other amounts payable by the Borrower, the Company or any other Obligor thereunder. 
 “Series A Stock” means the Series A Convertible Preferred Stock, $.01 par value, of the Company (now or hereafter issued). 
 “Series B Stock” means the Series B Convertible Preferred Stock, $.01 par value, of the Company (now or hereafter issued). 

 

 21 

 “Subsidiary” means any entity in which the Company or the Borrower, directly or
indirectly, owns securities having a majority of the voting power in the election of directors or persons serving equivalent functions. 
 “Tax” (including, with correlative meaning, the term “Taxes”) shall mean all U.S. federal, state, local and foreign (including taxes imposed by the Russian Federation and the City of Moscow) income,
profits, franchise, gross receipts, environmental, customs duty, capital stock, severances, stamp, payroll, sales, employment, unemployment, disability, use, property, withholding, excise, production, value added, occupancy and other taxes, duties
or assessments of any nature whatsoever, together with all interest, penalties and additions imposed with respect to such amounts and any interest in respect of such penalties and additions, whether disputed or not. 
 “Tax Return” means all returns and reports (including elections, declarations, disclosures, schedules, estimates and information
returns) required to be filed with, or supplied to, any Tax authority under applicable Law. 
 “Total Commitment” means an
extension of credit in an amount not to exceed Forty-Five Million Dollars (US$45,000,000.00), minus an amount equal to the aggregate Warrant Proceeds paid to the Company after the date hereof. 
 “Tranche Commitment” means, as of any date of determination, an amount equal to: (a) Five Million Dollars (US$5,000,000.00),
minus (b) the quotient obtained by dividing (i) the aggregate amount of Warrant Proceeds paid to the Company between the Closing Date and such date of determination, by (ii) the difference between 9 and the number of tranches
of Loans funded prior to such date of determination. 
 “Transaction Documents” means, collectively, (a) this
Agreement, (b) the Notes, (c) the Guaranty, and (d) any other document, instrument or agreement entered into in connection with this Agreement, all as amended, modified, supplemented, restated or extended from time to time.

 “Warrant Proceeds” means the cash proceeds paid to the Company by Renova Media Enterprises Ltd. or any of its affiliates,
or their successor or assigns, in connection with the exercise of warrants issued by the Company to purchase its capital stock. 
 [Remainder of Page Left Blank] 
  

 22 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

  

			
	MOSCOW CABLECOM CORP.
		
	By:	 	 /s/ Andrew Intrater

	Name:	 	Andrew Intrater
	Title:	 	Chairman
	
	ZAO COMCOR-TV
		
	By:	 	 /s/ Mikhail Silin

	Name:	 	Mikhail Silin
	Title:	 	General Director
		
	By:	 	 /s/ Elena Shatalova

	Name:	 	Elena Shatalova
	Title:	 	Chief Accountant
	
	RME FINANCE LTD
		
	By:	 	 /s/ Vladimir Kuznetsov

	Name:	 	Vladimir Kuznetsov
	Title:	 	Attorney in Fact

 Signature Page to Bridge Facility Agreement 

 EXHIBIT A 
 TO BRIDGE FACILITY AGREEMENT 
 FORM OF 
 SUBORDINATED PROMISSORY NOTE 
 THIS SUBORDINATED PROMISSORY NOTE IS SUBORDINATED IN ALL RESPECTS TO
THE INDEBTEDNESS, LIABILITIES AND OBLIGATIONS OWING BY THE BORROWER ARISING UNDER OR IN CONNECTION WITH THAT CERTAIN FACILITY AGREEMENT DATED AS OF AUGUST 26, 2004, AS AMENDED FROM TIME TO TIME (THE “FACILITY AGREEMENT”), AND MAY BE
COLLECTED AND ENFORCED ONLY IN ACCORDANCE WITH THE TERMS OF THE SUBORDINATION AGREEMENT, DATED AS OF FEBRUARY 21, 2007, BY AND AMONG THE HOLDER, AS DEFINED BELOW, AND THE AGENT UNDER THE FACILITY AGREEMENT (THE “SUBORDINATION AGREEMENT”).

 TRANCHE      
 SUBORDINATED PROMISSORY NOTE 
 ZAO COMCOR-TV 
  

			
	 $
                            
	  	No. N-    

                          , 2007 
 ZAO COMCOR-TV, a corporation organized under the laws of the Russian Federation (the “Borrower”), for value received, hereby promises to
pay to the order of RME FINANCE LTD, a company incorporated under the laws of Cyprus, or its registered assigns (the “Holder”), on the Maturity Date, the principal amount of
[                        ] ($            ), as adjusted
from time to time pursuant to the terms hereof (the “Principal Amount”) and all accrued but unpaid interest thereon as hereinafter provided. 
 This Tranche     Subordinated Promissory Note (this “Note”) was issued by the Borrower pursuant to a certain Bridge Facility Agreement dated as of February 21, 2007
among Moscow CableCom Corp. (the “Company” and together with the Borrower, the “Obligors”), the Borrower and the Holder (together with the Schedules and Exhibits thereto, the “Loan Agreement”). The
Holder is entitled to the benefits of the Loan Agreement, including, without limitation, the rights upon the occurrence and during the continuance of an Event of Default and the benefits of guaranties referred to therein or below. Reference is made
to the Loan Agreement and the documents entered into pursuant thereto or in connection therewith with respect to certain additional rights of the Holder and obligations of the Obligors and the Subsidiaries not expressly set forth herein. Capitalized
terms used herein but not otherwise defined herein shall have the meaning ascribed thereto in the Loan Agreement. All such rights of Holder and obligations of Borrower set forth in the Loan Agreement are incorporated herein by reference. 

ARTICLE I 
 PAYMENT OF
PRINCIPAL AND INTEREST; METHOD OF PAYMENT 
 1.1. Payment of the Principal Amount and accrued interest on this Note shall be
made in cash, in immediately available funds, in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts. Interest (computed on the basis of a 360-day year of
twelve 30-day months) shall accrue on the unpaid portion of the Principal Amount from time to time outstanding at the Stated Interest Rate (as defined below), and shall be, at the option of the Borrower (unless required to be paid earlier by the
terms of the Loan Agreement): (a) upon not less than five (5) Business Days’ prior written notice to the Holder, paid by the Borrower to the Holder in arrears on the last day of each calendar quarter, or (b) if not paid pursuant
to clause (a) above, capitalized with, and added to, the Principal Amount on the last day of 

  

 1 

 
each calendar quarter, and shall thereafter be deemed for all purposes to be a part of the Principal Amount (and the Principal Amount shall be increased by
the amount of such capitalized interest at the end of such calendar quarter). On the Maturity Date the outstanding Principal Amount, as so adjusted, together with all accrued and unpaid interest thereon, and all other amounts due hereunder or under
the other Transaction Documents shall be immediately due and payable. Both principal hereof and interest hereon are payable at such address as the Holder shall designate from time to time by written notice to the Borrower. The Borrower will pay or
cause to be paid all sums becoming due hereon for principal and interest by check or wire transfer, at the Holder’s election, and, without any requirement for the presentation of this Note or making any notation thereon, except that the Holder
hereof agrees that, subject to Section 3.10 hereof, it shall surrender this Note to the Borrower for cancellation promptly following payment of the final amount due. Prior to any sale or other disposition of this instrument, the Holder hereof
agrees to endorse hereon the amount of principal paid hereon and the last date to which interest has been paid hereon and to notify the Borrower of the name and address of the transferee; provided however, failure to provide such notice shall not
impair or limit Holder’s rights or remedies hereunder. As used herein, the “Stated Interest Rate” means the rate of (i) ten percent (10%) per annum prior to the occurrence of an Event of Default, and
(ii) thirteen percent (13%) per annum after the occurrence of an Event of Default and during the continuance thereof (regardless of whether the Loans have been accelerated), in each case subject to the limitations of applicable law.

 1.2. If this Note or any portion hereof becomes due and payable on a Saturday, Sunday or public holiday under the laws of the State
of New York, the due date hereof shall be extended to the next succeeding full business day and interest shall be payable at the Stated Interest Rate per annum during such extension. All payments received by the Holder shall be applied first to the
payment of all accrued interest payable hereunder or in such other order as Holder shall determine in its sole discretion. 
 1.3 Subject to the restrictions imposed under the Subordination Agreement, the Borrower shall have the right to prepay the Principal Amount of this Note, in whole or in part, at any time without penalty or premium, subject to
Section 2.2(a) of the Loan Agreement. Any prepayment of principal shall be accompanied by a payment of all interest accrued and unpaid on the portion of the principal amount being prepaid. In addition, this Note is subject to mandatory
prepayment as provided in the Loan Agreement. 
 ARTICLE II 
 [RESERVED] 
 ARTICLE III 
 MISCELLANEOUS 
 3.1. Default. Subject to the terms of the Loan Agreement, upon the occurrence of any one or more of the Events of Default specified in the Loan Agreement all amounts then remaining unpaid on this Note may be declared to be, or
automatically become, immediately due and payable as provided in the Loan Agreement. 
 3.2. Collection Costs. In the event that
this Note shall be placed in the hands of an attorney for collection by reason of any event of default hereunder, the undersigned agrees to pay reasonable attorney’s fees, expenses and disbursements and any other reasonable expenses incurred by
the Holder or its agent in connection with the collection of this Note. In addition, the undersigned shall be responsible for all other expenses of the Holder and its agent, if any, to the extent provided by the Loan Agreement. 
 3.3. Rights Cumulative; Specific Performances. The rights, powers and remedies given to the Holder under this Note shall be in addition to
all rights, powers and remedies given to it by virtue of the Loan Agreement, Transaction Documents, any document or instrument executed in connection therewith, or any statute, regulation or other applicable law. 
  

 2 

 3.4. No Waivers. Any forbearance, omission, failure or delay by the Holder in exercising any
right, power or remedy under this Note, the Loan Agreement, any documents or instruments executed in connection therewith or otherwise available to the Holder shall not be deemed to be a waiver of such right, power or remedy, nor shall any single or
partial exercise of any right, power or remedy preclude the further exercise thereof. 
 3.5. Amendments in Writing. Subject to
the terms of the Loan Agreement, no amendment, modification or waiver of any provision of this Note shall be effective unless it shall be in writing and signed by the Holder, and any such amendment, modification or waiver shall apply only in the
specific instance for which given. 
 3.6. Governing Law; Jurisdiction. (a) This Note and the rights of the holders hereof
shall be governed by, and construed in accordance with, the laws of the State of New York wherein the terms of this Note were negotiated, excluding to the greatest extent permitted by law any rule of law that would cause the application of the laws
of any jurisdiction other than the State of New York. 
 (b) Each of the parties hereto hereby irrevocably and unconditionally submits,
for itself and its property, to the exclusive jurisdiction of the United States District Court for the Southern District of New York (the “Court”) in any action or proceeding arising out of or relating to this Agreement or any of
the other Transaction Documents to which it is a party or to whose benefit it is entitled, or for recognition or enforcement of any judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such Court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the right that
any party may otherwise have to bring any action or proceeding relating to this Agreement or any of the other Transaction Documents in the courts of any other jurisdiction. 
 (c) Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection
that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or in relation to this Agreement or any other Transaction Document to which it is a party in such Court. Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in such Court. 
 3.7. No Counterclaims. The Borrower waives the right to interpose counterclaims or set-offs of any kind and description in any litigation arising hereunder (whether or not arising out of or relating to
this Note). 
 3.8. Successors. The term “Holder” as used herein shall be deemed to include the Holder and its
successors, endorsees and assigns. 
 3.9. Certain Waivers. The Borrower hereby waives presentment, demand for payment, protest,
notice of protest and notice of non-payment hereof. 
 3.10. Mutilated, Lost, Stolen or Destroyed Notes. In case this Note shall
be mutilated, lost, stolen or destroyed, the Borrower shall issue and deliver in exchange and substitution for and upon cancellation of the mutilated Note, or in lieu of and substitution for the Note, mutilated, lost, stolen or destroyed, a new Note
of like tenor and representing an equivalent right or interest, but only upon receipt of evidence reasonably satisfactory to the Borrower of such loss, theft or destruction and an indemnity, if requested, also reasonably satisfactory to it (but
without requirement of posting any bond). 
 3.11. Maintenance of Office. The Borrower covenants and agrees that so long as this
Note shall be outstanding, it will maintain its principal office at the address set forth in Section 10.4 of the Loan Agreement (or such other place as the Borrower may designate in writing at least 30 days prior to any change of location of
such office to the Holder of this Note) where notices, presentations and demands to or upon the Borrower in respect of this Note may be given or made. 
  

 3 

 3.12. WAIVER OF JURY TRIAL. THE BORROWER IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS NOTE OR ANY OTHER TRANSACTION DOCUMENT TO WHICH IT IS A PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT
THEREOF. 
 IN WITNESS WHEREOF, ZAO COMCOR-TV has caused this Note to be signed by its authorized officer and to be dated the day and year
first above written. 
  

					
	ATTEST [SEAL]	 	ZAO COMCOR-TV.
			
		 	By:	 	  

		 	 Name:
 Title:
	 	

  

 4 

 ATTACHMENT I 
 TO TRANCHE      PROMISSORY NOTE 
 Assignment 
 For value received, the undersigned hereby assigns subject to the provisions of the Loan Agreement, to
            
$                             principal amount of the Subordinated Promissory Note evidenced hereby
and hereby irrevocably appoints                              attorney to transfer the Note on the
books of the within named corporation with full power of substitution in the premises. 
 Dated: 
 In the presence of: 
  
 _________________________    _______ 
  

 5

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