Document:

Exhibit
10.3

     

    
      SECOND
AMENDMENT TO STOCK PURCHASE AGREEMENT

      

      This
amendment (the “Second Amendment”) is made on this 28th day of March, 2008, by
and between TELEFONICA DE ARGENTINA S.A., a company organized and existing under
the Argentine laws, domiciled at Avenida Ingeniero Huergo 723, P.B., City of
Buenos Aires, represented hereat by Mr. Alejandro Pinedo, in his capacity as
attorney-in-fact (hereinafter, “TASA”); and TELEFÓNICA DATACORP S.A., Sociedad
Unipersonal, a company organized and existing under the laws of the Kingdom of
Spain, domiciled at Gran Vía N° 28, Madrid, represented hereat by Mr. Claudio
Muñoz Zuñiga, in his capacity as Executive President, sufficiently empowered for
this act (hereinafter, “DATACORP” and jointly with TASA, the
“Parties”).

      

      WITNESSETH:

      

      
        
          	
                	
                  A)

                	
                  WHEREAS,
      on June 16, 2006, the Parties executed a stock purchase agreement
      (hereinafter, the “Stock Purchase
      Agreement”) whereby DATACORP sold to TASA all the shares of stock,
      irrevocable contributions and any other interests convertible into stock
      held by it in Telefónica Data Argentina S.A. (the
    “Company”).

                

        

      

      

      
        
          	
                	
                  B)

                	
                  WHEREAS,
      pursuant to Section 1.2 of the Stock Purchase Agreement, the performance
      of the Parties’ obligations was contingent upon the prior satisfaction or
      waiver of the conditions precedent set forth in such Section, which should
      have been fulfilled within a term of 12 months (the “Conditions
      Precedent”).

                

        

      

      

      
        
          	
                	
                  C)

                	
                  WHEREAS,
      in accordance with the provisions of Section 1.2(d) of the Stock Purchase
      Agreement, TASA and DATACORP have still not obtained the consent of the
      Communications Secretariat under the terms of Decree 764/00, and the
      obtention of such consent is not waivable by either
  Party.

                

        

      

      

      
        
          	
                	
                  D)

                	
                  WHEREAS,
      for the reason mentioned in the preceding paragraph, on June 15, 2007, the
      Parties agreed to extend the Stock Purchase Agreement until June 16, 2008
      (hereinafter, the “First
Amendment”).

                

        

      

      

      
        
          	
                	
                  E)

                	
                  WHEREAS,
      as a result of a demand made by a minority shareholder, DATACORP issued a
      Declaration of Acquisition dated March 14, 2008, all in accordance with
      the provisions of Decree 677/01 of the Republic of Argentina (the
      “Declaration of Acquisition”); therefore, DATACORP would become holder of
      14,948 additional shares of stock (the “Additional Shares”) representing
      1.8578% of the stock capital and voting power in the Company (hereinafter,
      the “Residual Interests Acquisition
Process”).

                

        

      

      

      
        
          	
                	
                  F)

                	
                  WHEREAS,
      the Parties wish to extend the terms and conditions agreed upon in regard
      to the Shares (as such term is defined in the Stock Purchase Agreement) to
      the Additional Shares.

                

        

      

      

      
        
          	
                	
                  G)

                	
                  WHEREAS,
      the Parties wish to re-extend the term set forth in Section 1.2 of the
      Stock Purchase Agreement.

                

        

      

       

      
 

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

         

      

      
        
          	
                	
                  H)

                	
                  WHEREAS,
      the Shares’ sales price as set forth in Section Three of the Stock
      Purchase Agreement obtained a fairness opinion by MBA Banco de Inversión
      S.A. and was determined based on the Company’s financial statements as of
      December 31, 2005 and in regard to 787,697 book-entry shares of Telefónica
      Data Argentina S.A, of $ 100 par value each, entitled to one vote per
      share, fully subscribed and paid in, representing 97.89% of the Company’s
      stock capital and voting
power.

                

        

      

      

      
        	
                 
      

              	
                I)

              	
                WHEREAS,
      the Parties wish to change the price set forth in Section Three of the
      Stock Purchase Agreement, in order to include the Additional Shares and
      consider the Company’s valuation made by MBA Banco de Inversión S.A. as a
      result of the Residual Interests Acquisition
  Process.

              

      

      

      
        	
                 
      

              	
                J)

              	
                WHEREAS,
      the referred price change is justified by the need that the transaction
      price reflect the Company’s current market valuation, which valuation was
      not adequately reflected by the price adjustment formula originally agreed
      upon in the Stock Purchase
Agreement.

              

      

       

      NOW, THEREFORE, the Parties
agree as follows:

      

      ONE

      

      Subject to
the satisfaction of the Conditions Precedent contemplated in Section 1.2 of the
Stock Purchase Agreement, including the conclusion of the Residual Interests
Acquisition Process, and the provisions of Section Four of this Second
Amendment, DATACORP agrees to sell to TASA the 14,948 Additional Shares
representing 1.8578% of Telefónica Data Argentina S.A.’s stock capital, to be
acquired by DATACORP as a result of the above mentioned Process, under the terms
and conditions set forth in the Stock Purchase Agreement, as amended
herein.

       

      TWO

      

      The
Parties agree to re-extend the term set forth in Section 1.2 of the Stock
Purchase Agreement, as amended by the “First Amendment”, dated June 15, 2007,
for an additional 6-month term counted from June 17, 2008; therefore, such term
shall expire on December 17, 2008.

       

      THREE

      

      The
Parties agree to include the Residual Interests Acquisition Process and the
relevant approval of this “Second Amendment” to the Stock Purchase Agreement by
TASA’s Audit Committee and Board of Directors, as Conditions Precedent for the
closing of the Stock Purchase Agreement.

      

      Therefore,
the Parties agree to amend Sections 1.2 and 1.3 of the Stock Purchase

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      Agreement
as follows:

      

      “1.2 Conditions
Precedent

      

      The
performance of the Parties’ obligations set forth herein is subject to the prior
satisfaction as of the Closing Date, or the waiver by the Party in whose favor
the unfulfilled condition has been granted-exception made of the one
contemplated in paragraph (d)-of the conditions precedent detailed below (the
“Conditions Precedent”), which shall be fulfilled before December 17,
2008.

       

      
        	
                 
      

              	
                (a)

              	
                That
      DATACORP has title to and is holder of all the Shares and rights related
      thereto;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                That
      the representations and warranties made by DATACORP herein are true,
      accurate and complete;

              

      

      

      
        	
                 
      

              	
                (c)

              	
                That
      the representations and warranties made by TASA herein are true, accurate
      and complete;

              

      

      

      
        	
                 
      

              	
                (d)

              	
                That
      TASA and DATACORP have obtained the consent of the Communications
      Secretariat under the terms of Decree 764/00. This condition precedent is
      not waivable by either of the Parties (the “SECOM’s
    Consent”);

              

      

      

      
        	
                 
      

              	
                (e)

              	
                That
      the Audit Committee and Board of Directors of TASA approve the terms and
      conditions of the Second Amendment to the Stock Purchase Agreement dated
      March 28, 2008; and

              

      

      

      
        	
                 
      

              	
                (f)

              	
                That
      DATACORP has completed the residual interests acquisition process whereby
      it shall have acquired 14,948 shares of the Company of 100 pesos par value
      each, held by the Company’s minority shareholders (the “Acquired Shares”)
      by means of the execution of the acquisition deed set forth in Section 29
      of Decree 677/01 (the “Residual Interests Acquisition Process”). This
      condition precedent may be waived by DATACORP, in which case the Closing
      (as such term is defined below) shall take place only in connection with
      the Shares.

              

      

      

      If upon
expiration of the term, i.e., by December 17, 2008, the Conditions Precedent set
forth in paragraphs (a), (b), (c), (d) and (e) shall have been fulfilled, the
closing of the transaction shall take place in regard to the 787,697 book-entry
shares of Telefónica Data Argentina S.A, of $ 100 par value each and entitled to
one vote per share, representing 97.89% of the Company’s stock capital and
voting power.

      

      This
agreement shall be terminated by operation of law if upon expiration of the
above mentioned term the Conditions Precedent set forth in paragraphs (a), (b),
(c), (d) and (e) shall have not been fulfilled”.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      “1.3 Closing

      

      The
closing of the transaction hereunder shall take place at Av. Ingeniero Huergo
723, 21st Floor, City of Buenos Aires, within five (5) business days following
the date all the Conditions Precedent set forth in Section 1.2 shall have been
satisfied, or within five (5) business days counted as from December 17, 2008,
in connection with the 787,697 book-entry shares of Telefónica Data Argentina
S.A, of $ 100 par value each and entitled to one vote per share, representing
97.89% of the stock capital and voting power of the Company, whatever occurs
first (the “Closing Date”).

      

      On the
Closing Date:

      

      
        	
                 
      

              	
                (i)

              	
                DATACORP
      shall send the notice required under Section 215 of the Business Companies
      Law 19,550, as amended, by delivering a letter in the form of Exhibit 1.3
      to the Stock Purchase Agreement, giving notice to the company of the
      transfer of the Shares to TASA, and requesting the registration of the
      change of ownership of the Shares in the name of TASA in the Shareholders’
      Register; and

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                TASA
      shall pay the Price to DATACORP, as set forth in Section
      Three.”

              

      

       

      FOUR

      

      Section
Three of the Stock Purchase Agreement shall be amended and replaced in full by
the following text:

      

      “Three: Price.

      

      The sales
price of the Shares, i.e. for an amount of 787,697 Shares, is
US$ 56,041,216 (fifty-six million forty-one thousand two hundred and
sixteen U.S. dollars) (the “Price of the Shares ”) and the sales price of the
Additional Shares acquired by DATACORP from the Company’s minority shareholders,
i.e. for an amount of 14,948 Shares, is US$ 1,063,485(one million
sixty-three thousand four hundred and eighty-five U.S. dollars) (the “Price of
the Additional Shares” and together with the Price of the Shares, the
“Price”).

      

      Notwithstanding
the foregoing, the Price of the Additional Shares may be reviewed, in the event
that the Argentine Securities Commission does not approve the amount initially
tendered by DATACORP under the Residual Interests Acquisition Process, taking as
Price such amount as is finally approved by the Argentine Securities Commission.
For purposes of converting the amount that is finally approved to U.S. dollars,
the average between the buying and selling ARS/USD exchange rate prevailing two
business days before the Closing Date shall be taken into account.

      

      The Price
shall be valid since the date of this Agreement until three months after the
conclusion of the Residual Interests Acquisition Process, even if the Residual
Interests Acquisition Process ends without the minority shareholders’ shares
having been acquired 

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (the
“Price Validity Term”).

      

      The Price
shall be paid by TASA to DATACORP on the Closing Date.

      

      Payment
shall be made in such account as designated by DATACORP in writing, and
crediting of such transfer shall be regarded as sufficient receipt
thereof.

      

      The
Parties agree to negotiate in good faith any adjustments to the Price that may
be necessary in case that, Condition Precedent 1.2 (f) having been satisfied and
the Price Validity Term having elapsed, the SECOM’s Consent contemplated in
Condition Precedent 1.2 (d) shall have not been obtained.

      

      FIVE

      

      This
“Second Amendment” shall form a sole and single agreement together with the
Stock Purchase Agreement and its First Amendment, so that any reference to the
Stock Purchase Agreement, unless otherwise expressly set forth, shall be deemed
to refer to the Stock Purchase Agreement as amended by this “Second
Amendment”.

       

      SIX

      

      All the
terms and conditions of this Stock Purchase Agreement not expressly amended by
this Second Amendment or the First Amendment shall remain in full force and
effect.

       

      SEVEN

      

      Sections
Ten and Eleven of the Stock Purchase Agreement shall apply mutatis mutandis to this
Second Amendment to the Stock Purchase Agreement.

      

       

      In witness
whereof, 2 (two) identical counterparts are signed on this 28th day of March,
2008.

      

      Telefónica
de Argentina, S.A.

      

      

      

      

      Name:
Alejandro Pinedo

      Title:
Attorney-in-fact

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      Telefónica
Datacorp, S.A. Unipersonal

       

      

      

      Name:
Claudio Muñoz Zúñiga

      Title:
Attorney-in-fact

       

       

       

       

      
        6EX-10.1

 

Exhibit 10.1

April 15, 2008

Mr. Weston M. Hicks

56 Twin Oak Road

Short Hills, NJ 07078

Dear Weston:

     Reference is made to the letter agreement, dated October 7, 2002 (the “Letter Agreement”),
confirming the terms of your employment with Alleghany Corporation (“Alleghany”), and the
Restricted Stock Unit Matching Grant Agreement, dated October 7, 2002 (the “Matching Agreement”),
granting you restricted stock unit matching grants.

     In order to conform the provisions of your Letter Agreement and the Matching Agreement with
the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and the Treasury
Regulations thereunder (collectively, the “Code’), you and Alleghany agree that your Letter
Agreement and Matching Agreement shall be amended, effective as of January 1, 2008, as follows:

     1. The second sentence of the paragraph of the Letter Agreement, denominated “Severance
Protection,” shall be amended to read as follows:

“Such payments will be subject to normal withholding and other taxes, and will be
paid in accordance with Alleghany’s normal payroll practice applicable to senior
executives of Alleghany, as in effect on December 31, 2008.”

     2. A new paragraph, designated “Meaning of Termination,” is added to the Letter
Agreement, which paragraph shall read as follows:

“Meaning of Termination. References to your employment being
“terminated” and other words of similar import shall be interpreted and
applied consistent with Section 409A of the Code.”

     3. A new paragraph, designated “Required Deferral,” is added to the Letter Agreement,
which paragraph shall read as follows:

“Required Deferral. Notwithstanding anything herein to the contrary,
if on the date your employment is terminated you are a “specified

 

 

employee,” then any payments that are required to be made to you pursuant to
this Agreement as a result of your employment being terminated that
constitute the deferral of compensation (within the meaning of Treasury
Regulation Section 1.409A-1(b)) and that would in the absence of this
paragraph have been paid to you within six months and one day of the date
your employment is terminated (the “Deferred Compensation Payments”) shall
not be paid to you at the time herein provided but shall instead be
accumulated and paid to you in a lump sum with interest thereon at a rate
equal to the yield per annum on 6-month Treasury bills (secondary market) on
the date your employment is terminated (as reported by the Federal Reserve
Board) from the date payment would have been made to you hereunder until the
date paid, such payment to be made on the earlier of (i) the day after the
date that is six (6) months from the date your employment terminated or (ii)
if you shall die prior to the expiration of such six (6) month period, as
soon as practicable following the date of your death (with payment being
made to your estate). For these purposes, you will be a “specified
employee” if, on the date your employment is terminated you are an
individual who is, under the method of determination adopted by the
Compensation Committee of the Board of Directors of Alleghany (the
“Committee”) designated as, or within the category of employees deemed to
be, a “specified employee” within the meaning and in accordance with
Treasury Regulation Section 1.409A-1(i). The Committee shall determine in
its sole discretion all matters relating to who is a “specified employee”
and the application of and effects of the change in such determination.”

     4. The restricted stock unit matching grant agreement in the form of Exhibit C attached to the
Letter Agreement and the Matching Agreement are both amended by adding new paragraphs (e) and (f)
to Section 4, Vesting of Restricted Stock Units, which paragraphs shall read as follows:

“(e) Notwithstanding anything herein to the contrary, if on the date Participant’s
employment is terminated Participant is a “specified employee,” then any payments
that are required to be made to Participant pursuant to this Agreement as a result
of Participant’s employment being terminated that constitute the deferral of
compensation (within the meaning of Treasury Regulation Section 1.409A-1(b)) and
that would in the absence of this paragraph (e) have been paid to Participant within
six months and one day of the date Participant’s employment is terminated (the
“Deferred Compensation Payments”) shall not be paid to Participant at the time
herein provided but shall instead be accumulated and paid to Participant in a lump
sum with interest thereon at a rate equal to the yield per annum on 6-month Treasury
bills (secondary market) on the date Participant’s employment is terminated (as
reported by the Federal Reserve Board) from the date payment would have been made to
Participant hereunder

-2-

 

until the date paid, such payment to be made on the earlier of (i) the day after the
date that is six (6) months from the date Participant’s employment terminated or
(ii) if Participant shall die prior to the expiration of such six (6) month period,
as soon as practicable following the date of Participant’s death (with payment being
made to Participant’s estate). For these purposes, Participant will be a “specified
employee” if, on the date Participant’s employment is terminated Participant is an
individual who is, under the method of determination adopted by the Committee,
designated as, or within the category of employees deemed to be, a “specified
employee” within the meaning and in accordance with Treasury Regulation Section
1.409A-1(i). The Committee shall determine in its sole discretion all matters
relating to who is a “specified employee” and the application of and effects of the
change in such determination.

(f) References to Participant’s employment being “terminated” and other words of
similar import shall be interpreted and applied consistent with Section 409A of the
Code.”

     Except as herein above amended, the Letter Agreement and the Matching Agreement shall remain
in full force and effect.

     If the foregoing accurately express our mutual agreement regarding the amendment of your
Letter Agreement and the Matching Agreement, please execute the enclosed copy of this letter in the
space provided below and return it to me.

	 	 	 	 	 
	 	Sincerely yours,

ALLEGHANY CORPORATION

 	 
	 	By:  	/s/ Dan R. Carmichael
 	 
	 	 	Dan R. Carmichael 	 
	 	 	Chairman of Compensation Committee 	 
	 

	 	 	 	 	 
	AGREED AND ACCEPTED:

 	 
	/s/ Weston M. Hicks
 	 
	Weston M. Hicks 	 
	 	 	 
	 

-3-

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