Document:

EX-4.38

 Exhibit 4.38 

/ Sberbank of Russia Letterhead / 

AMENDING AGREEMENT No. 5 

to Non-Revolving Loan Facility Agreement No. 8508 dated October 9, 2012 

 

			
	The City of Moscow		October 31, 2014

 SBERBANK OF RUSSIA, an open joint stock company (Sberbank of Russia JSC) (company name in Russian:

 “

”), (the “Lender”), as represented by Fedor V. Sapronov, Managing Director and Director of the Lending and Project Financing Group of the Corporate Financing Department of Sberbank of Russia, acting
by virtue of the Lender’s Articles of Association and under Power of Attorney No. 413-D dated August 22, 2014, on the one hand; and SOUTHERN KUZBASS COAL COMPANY OAO, an open joint stock company (Southern Kuzbass OAO), (company
name in Russian:

 “

 “

”) (the “Borrower”), as represented by Alexey I. Lyapin, Deputy Managing Director for Economics and Finance, acting under a Power of Attorney w/o number dated November 01, 2013, on the other
hand;  
 the Lender and the Borrower being hereinafter collectively referred to as the “Parties”; 

have entered into this amending agreement No.5 (the “Amending Agreement”) to the Non-Revolving Loan Facility Agreement No. 8508
dated October 9, 2012 (the “Loan Agreement”) and agreed upon the following: 
  

	 	1.	The Borrower represents and warrants that as of the date of execution of this Agreement it is not aware of any corporate or other similar agreements signed between its shareholders or between its shareholders and third
parties that would restrict its rights as a Lender’s contractor or would otherwise influence its ability to sign a Loan Agreement or fulfill its obligations under the Loan Agreement and other agreements signed between it and the Lender.

  

	 	2.	Add Sub-clauses (d), (e), (f) and (g) into Clause 9 “SECURITY” of the Loan Agreement as follows: 

“(d) Pledge ordinary shares of Mechel Mining OAO, an open joint stock company (Mechel Mining OAO, located at 1 Krasnoarmeyskaya Moscow
125993, Russia, registered under number (OGRN) 1085406013846, Taxpayer Number (INN) 5406437129), (company name in Russian: OAO

, address in Russian: 125993,

,

,

,

.. 1), 

  
 1 

 

			
	Lender		Borrower
	<Signature>		<Signature>

 Amending Agreement No.5 dated October “31”, 2014 to
Non-Revolving Loan Facility Agreement No. 8508 dated October 9, 2012 

 
hereinafter referred to as the “Issuer”, owned by Mechel OAO as its property, its nominal value equal to 7.37 (Seven 37/100 rubles) per one ordinary share in the quantity making not
less than 25 (Twenty-five) percent plus 1 (One) ordinary share of the total number of the listed ordinary shares of Mechel Mining OAO as of the date of the securities pledge agreement. 

Further on in case of additionally issued and listed ordinary shares of Mechel Mining OAO the Borrower undertakes within 10 (Ten) business days
from the date the respective report on shares issuance has been registered with the authorized state bodies to ensure for the Lender to be provided with such quantity of ordinary shares of Mechel Mining OAO that the ordinary shares pledged with the
Lender would make 25 (Twenty-five) percent plus 1 (One) ordinary share of the total number of the listed ordinary shares of Mechel Mining OAO after such additional listing. 

(e) Pledge movable estate owned by Lender as its property. 

The net book value of the pledge asset as of June 30, 2014 is 360,695, 662.50 (Three hundred sixty million six hundred ninety-five
thousand six hundred and sixty-two 50/100) rubles. 
 The value of the pledge asset shall be defined based on its net book value as of
June 30, 2014 with the application of the pledge discount equal to 40 (Forty) percent. 
 (f) Mecheltrans OOO, a limited liability
company (Mecheltrans OOO, located at corpus 4 house 9, Ostrovityanova str., Moscow 117437, Russia, registered under number (OGRN) 1027739053374, Taxpayer Number (INN) 7728246919), (company name in Russian: OOO

 address in Russian: 117437,

,

,

.. 9

.. 4), guarantees for the full amount of the Borrower’s obligations hereunder. 
 (g) Bratsk Ferroalloy
Plant OOO, a limited liability company (Bratsk Ferroalloy Plant OOO, located at P 01 11 01 00, Bratsk 665716, Irkutsk region, Russia, registered under number (OGRN) 10338008455760, Taxpayer Number (INN) 380450001), (company name in
Russian: OOO

, address in Russian:

,

, 665716,

,

), guarantees for the full amount of the Borrower’s obligations hereunder. 
  

	 	3.	Restate Clause 10.2 of the Loan Agreement as below: 

 “10.2. If the Borrower fails to repay
the loan principal as it comes due, the Borrower shall pay to the Lender a penalty at the annual interest rate determined under Clause 4.1 hereof and applicable as of the date when such payment amount becomes overdue, multiplied by two (2). 

If the Borrower fails to pay the interest or Fees as they come due, the Borrower shall pay under the Lender’s request to the Lender a
penalty: 
  

	 	•	 	at the annual interest rate determined under Clause 4.1 hereof and applicable as of the date when such payment amount becomes overdue, multiplied by two (2) during the period from the Date of the Loan Agreement signing
up to October 01, 2014 (inclusively); 

  
 2 

 

			
	Lender		Borrower
	<Signature>		<Signature>

 Amending Agreement No.5 dated October “31”, 2014 to
Non-Revolving Loan Facility Agreement No. 8508 dated October 9, 2012 

	 	•	 	at the annual interest rate determined under Clause 4.1 hereof and applicable as of the date when such payment amount becomes overdue during the period from October 01, 2014 (not inclusively) up to the date when
such overdue payment is made in full (inclusively). 

 Such penalty shall incur as annual interest on the overdue payment
amount for each day of delay in payment, for the entire period starting from, but excluding, the date when such amount first becomes overdue and up to and including the date when such overdue payment is made in full. 

As used herein, the date when an amount payable hereunder becomes overdue means the Payment Date on which the Borrower defaults on its
respective payment obligation”. 
  

	 	4.	The Parties have agreed that in accordance with Clause 2 of Article 425 of the civil Code of the Russian Federation the terms of the Loan Agreement mentioned in Clause 3 of this Amending Agreement shall apply to the
legal relations between the Parties to the Loan Agreement starting from October 1, 2014. 

  

	 	5.	This Amending Agreement is made in two counterparts having equal legal force, one for the Lender and one for the Borrower. 

  

	 	6.	This Amending Agreement shall take effect as of the date of its execution by both Parties. 

  

	 	7.	Parties’ Location and Bank Details 

 LENDER: 

Location and mailing address: 19 Vavilov Str., Moscow 117997, Russia (

, 117997,

,

,

 19) 
 Taxpayer Number (INN): 7707083893 

Company Number (OGRN): 1027700132195 

Taxpayer Record Validity Code (KPP): 775001001 

Russian National Company and Business Classification Code (OKPO): 00032537 

For payments in RUR: 

Receiver: Sberbank of Russia JSC, account No.30301810000006000014; Correspondent Account No.30101810400000000225 with OPERU of the Moscow GTU
of the Bank of Russia; BIC 044525225 
 For payments in USD: 

Account with Institution: IRVTUS3N, Bank of New York Mellon, New York, NY 

Beneficiary Institution: SABRRUMM, SBERBANK, MOSCOW. 

Sender to Receiver Information:/BNF/ 30301840300006000014 

For payments in EUR: 

Account with Institution: DEUTDEFF, Deutsche Bank AG, Frankfurt am Main. 

Beneficiary Institution: SABRRUMM, SBERBANK, MOSCOW. 

No.30301978400001000014 with Sberbank, Moscow, SWIFT SABRRUMM 

Sender to Receiver Information:/BNF/ 30301978900006000014 

Tel: (495) 747-37-98; Fax: (495) 957-55-68 

  
 3 

 

			
	Lender		Borrower
	<Signature>		<Signature>

 Amending Agreement No.5 dated October “31”, 2014 to
Non-Revolving Loan Facility Agreement No. 8508 dated October 9, 2012 

 BORROWER: 

Location and mailing address: 6 Yunosti Str., Mezhdurechensk, Kemerovo Region, 652877, Russia (

, 652877,

,

,

,

.. 6) 
 Taxpayer Number (INN): 4214000608 

Company Number (OGRN): 1024201388661 

Current Account No.40702810026070100405 with Kemerovo Branch No.8615 of Sberbank of Russia 

Tel: (384-75) 7-22-37, 7-23-96; Fax: (384-75) 7-22-41 

Email: mechel@mechel.com; prl@uk.mechel.com 

Parties’ Signatures 
  

			
	LENDER		BORROWER
		
	 Managing Director
 Deputy Director of
the Lending and Project Financing Group of the Financing Department
 Sberbank of Russia
		 Deputy Managing Director for Economics and Finance
  

Southern Kuzbass OAO

		
	 /s/ Fedor V. Sapronov
  

/seal/
		 /s/ Alexey I. Lyapin
  

/seal/

  
 4 

 

			
	Lender		Borrower
	<Signature>		<Signature>

 Amending Agreement No.5 dated October “31”, 2014 to
Non-Revolving Loan Facility Agreement No. 8508 dated October 9, 2012eixQ12015ex10-1

Exhibit 10.1

EDISON INTERNATIONAL
2015 Executive Annual Incentive Program
		
	1.
	PURPOSE

The purpose of this Edison International 2015 Executive Annual Incentive Program (this “Program”) is to promote the success of Edison International, a California corporation, (the “Corporation”), by motivating the executives selected to participate in this Program and set forth in Section 3.1 below (each, a “Participant”) to maximize the performance of the Corporation and rewarding them with cash bonuses directly related to such performance.  This Program is intended to provide bonuses that qualify as performance-based compensation within the meaning of Section 162(m) (“Section 162(m)”) of the United States Internal Revenue Code of 1986, as amended (the “Code”).  This Program is adopted under Section 5.2 of the Corporation’s 2007 Performance Incentive Plan (the “Plan”).  Capitalized terms are defined in the Plan if not defined herein.
		
	2.
	ADMINISTRATION

This Program shall be administered by the Compensation and Executive Personnel Committee of the Board (the “Committee”), which shall consist solely of two or more members of the Board who are “outside directors” within the meaning of Section 162(m).  Action of the Committee with respect to the administration of this Program shall be taken pursuant to a majority vote or by the unanimous written consent of its members.  The Committee shall have the authority to construe and interpret this Program and any agreements or other document relating to Awards under the Program, may adopt rules and regulations relating to the administration of this Program, and shall exercise all other duties and powers conferred on it by this Program.  Any decision or action of the Committee within its authority hereunder shall be conclusive and binding upon all persons.  Neither the Board nor the Committee, nor any person acting at the direction thereof, shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with this Program (or any Award made under this Program).
		
	3.
	AWARDS

		
	3.1
	Award Grants; Maximum Annual Incentive Amount.  Each “Award” granted to a Participant under this Program represents the opportunity to receive a cash payment determined under this Section 3 (an “Annual Incentive”), subject to the terms and conditions of this Program.  The maximum amount of the Annual Incentive payable to each Participant (the “Maximum Annual Incentive Amount”) shall be determined by multiplying (i) the Annual Incentive Pool (as defined in Section 3.2 below), by (ii) the Participant’s “Annual Incentive Percentage” as set forth in the following table:  

	
		
	

Participant
	Annual Incentive Percentage

	Theodore F. Craver, Jr.
	42%

	Pedro J. Pizarro
	15%

	Ronald L. Litzinger
	15%

	Adam S. Umanoff
	14%

	William J. Scilacci, Jr.
	14%

In no case, however, shall the amount of any Annual Incentive exceed the applicable limit set forth in Section 5.2.3 of the Plan.
		
	3.2
	Annual Incentive Pool.  As soon as practicable after the end of the Corporation’s 2015 fiscal year (the “Performance Period”), the Committee shall determine the amount of the Corporation’s earnings from continuing operations (after interest, taxes, depreciation and amortization, and determined on a consolidated basis) for the Performance Period (the “Performance Level”).  The “Annual Incentive Pool” shall be determined by multiplying (i) the Performance Level, by (ii) one and one-half percent (1.5%).  No Participant shall receive any payment under this Program unless and until the Committee has certified, by resolution or other appropriate action in writing, that the amount of the Performance Level has been accurately determined in accordance with the terms, conditions and 

limits of this Program and that any other material terms previously established by the Committee or set forth in this Program applicable to the Award were in fact satisfied.
		
	3.3
	Committee Discretion.  Notwithstanding the foregoing provisions, the Committee shall retain discretion to reduce (but not increase) the Maximum Annual Incentive Amount otherwise payable to any one or more Participants pursuant to Sections 3.1 and 3.2.  The Committee may exercise such discretion on any basis it deems appropriate (including, but not limited to, its assessment of the Corporation’s performance relative to its operating or strategic goals for the Performance Period and/or the Participant’s individual performance for such period).  For purposes of clarity, if the Committee exercises its discretion to reduce the amount of any Annual Incentive payable hereunder, it may not allocate the amount of such reduction to Annual Incentives payable to other Participants.

		
	3.4
	Payment of Annual Incentives.  Any Annual Incentives shall be paid as soon as practicable following the certification of the Committee’s findings under Section 3.2 and its determination of the final Annual Incentive amount (after giving effect to any exercise of its discretion to reduce Annual Incentives pursuant to Section 3.3) and in all events no later than March 15, 2016; in each case subject (i) to tax withholding pursuant to Section 4.6, and (ii) in the case of a Participant eligible to defer compensation under the EIX 2008 Executive Deferred Compensation Plan (the “EDCP”), to any timely deferral election the Participant may have made pursuant to the terms of the EDCP.

		
	3.5
	Termination of Employment.

		
	(a)
	Except as provided in Section 3.5(b), in the event that a Participant’s employment with the Corporation and its Subsidiaries terminates at any time during the Performance Period, the Participant’s Award will immediately terminate upon such termination of employment, and the Participant will not be entitled to any Annual Incentive payment in respect of such Award; provided that the Committee may, in its discretion, award a full or partial Annual Incentive for the Performance Period to any Participant whose termination of employment during the Performance Period is due to the Participant’s death, permanent and total disability, or Retirement (with the amount of any such Bonus not to exceed the amount the Participant would have been entitled to had he or she remained employed for the entire Performance Period).  For purposes of this Section 3.5, the term “Retirement” with respect to a Participant shall mean a termination of the Participant’s employment on or after the first day of the month in which the Participant (A) attains age 65 or (B) attains age 61 with five “years of service,” as that term is defined in the Edison 401(k) Savings Plan.

		
	(b)
	In the event that the Participant’s employment with the Corporation and its Subsidiaries terminates during the Performance Period in circumstances that entitle the Participant to severance benefits pursuant to the Corporation’s 2008 Executive Severance Plan, and in such circumstances the Participant satisfies the applicable conditions for receiving severance benefits under that plan (including, without limitation, any requirement to execute and deliver a release of claims), then the provisions of this Section 3.5(b) shall control over Section 2.3.1(b) of the 2008 Executive Severance Plan to determine the Participant’s annual incentive for the year in which such termination of employment occurs.  If a Participant’s Annual Incentive is to be determined pursuant to this Section 3.5(b), the Participant’s Annual Incentive shall equal the lesser of (A) or (B); where (A) is determined by multiplying (i) the Participant’s highest base salary rate in effect during the 24 months preceding the termination of the Participant’s employment, by (ii) the highest target annual incentive percentage in effect for the Participant during those 24 months, by (iii) a fraction (not greater than 1) the numerator of which is the number of weekdays in the Performance Period from January 1, 2015 through the Participant’s last day of employment prior to such termination and the denominator of which is the number of weekdays in the entire Performance Period; and (B) is determined by multiplying (i) the Participant’s Annual Incentive Percentage, by (ii) one and one-half percent (1.5%), by (iii) the Corporation’s earnings from continuing operations (after interest, taxes, depreciation and amortization, and determined on a consolidated basis) for the portion of the Performance Period through and ending on the last day of the month in which the Participant’s  termination of employment occurs.  In no case, however, shall the amount of any Annual Incentive exceed the applicable limit set forth in Section 5.2.3 of the Plan. 

		
	(c)
	No Participant shall receive any payment under this Section 3.5 unless and until the Committee has certified, by resolution or other appropriate action in writing, the amount of the Annual Incentive due in accordance with the terms, conditions and limits of this Program.  Any Annual Incentive amount due pursuant to this Section 3.5 shall be paid as soon as practicable following the Committee’s certification of such amount and in all events no later than March 15, 2016; subject (i) to tax withholding pursuant to Section 4.6, and (ii) in the case of a 

2

Participant eligible to defer compensation under the EDCP, to any timely deferral election the Participant may have made pursuant to the terms of the EDCP. 
		
	3.6
	Adjustments.  The Committee shall adjust the Performance Level, Annual Incentive Pool and other provisions applicable to Awards granted under this Program to the extent (if any) it determines that the adjustment is necessary or advisable to preserve the intended incentives and benefits to reflect (1) any material change in corporate capitalization, any material corporate transaction (such as a reorganization, combination, separation, merger, acquisition, or any combination of the foregoing), or any complete or partial liquidation of the Corporation, (2) any change in accounting policies or practices, (3) the effects of any special charges to the Corporation’s earnings, or (4) any other similar special circumstances.

		
	3.7
	Change in Control.  If a Change in Control of EIX occurs at any time during the Performance Period, the Performance Period for all outstanding Awards will be shortened so that the Performance Period will be deemed to have ended on the last day prior to such Change in Control of EIX.  The Annual Incentive Pool and the Annual Incentives payable with respect to each Award will be determined in accordance with the foregoing provisions of this Section 3 based on such shortened Performance Period.  Such Annual Incentives shall be paid (subject to tax withholding pursuant to Section 4.6) as soon as practicable following the date of the Change in Control of EIX.  For purposes of this Section 3.7, “Change in Control of EIX” shall have the meaning ascribed to such term in the Corporation’s 2015 Long-Term Incentives Terms and Conditions. 

		
	4.
	GENERAL PROVISIONS

		
	4.1
	Rights of Participants.

		
	(a)
	No Right to Continued Employment.  Nothing in this Program (or in any other documents evidencing any Award under this Program) will be deemed to confer on any Participant any right to continue in the employ of the Corporation or any Subsidiary or interfere in any way with the right of the Corporation or any Subsidiary to terminate his or her employment at any time.

		
	(b)
	Program Not Funded.  No Participant or other person will have any right or claim to any specific funds, property or assets of the Corporation by reason of any Award hereunder.  To the extent that a Participant or other person acquires a right to receive payment pursuant to any Award hereunder, such right shall be no greater than the right of any unsecured general creditor of the Corporation.

		
	4.2
	Non-Transferability of Benefits and Interests.  Except as expressly provided by the Committee in accordance with the provisions of Section 162(m), all Awards are non-transferable, and no benefit payable under this Program shall be subject in any manner to sale, transfer, anticipation, alienation, assignment, pledge, encumbrance or charge.  This Section 4.2 shall not apply to an assignment of a contingency or payment due (a) after the death of a Participant to the deceased Participant’s legal representative or beneficiary or (b) after the disability of a Participant to the disabled Participant’s personal representative.  

		
	4.3
	Force and Effect.  The various provisions herein are severable in their entirety.  Any determination of invalidity or unenforceability of any one provision will have no effect on the continuing force and effect of the remaining provisions.

		
	4.4
	Governing Law.  This Program will be construed under the laws of the State of California.

		
	4.5
	Construction.  

		
	(a)
	Section 162(m).  It is the intent of the Corporation that this Program, Awards and Annual Incentives paid hereunder will qualify as performance-based compensation or will otherwise be exempt from deductibility limitations under Section 162(m).  Any provision, application or interpretation of this Program inconsistent with this intent to satisfy the standards in Section 162(m) shall be disregarded.

		
	(b)
	Section 409A.  It is the intended that Awards under this Program qualify as “short-term deferrals” within the meaning of the guidance provided by the Internal Revenue Service under Section 409A of the Code and this Program shall be interpreted consistent with that intent.

3

		
	4.6
	Tax Withholding.  Upon the payment of any Annual Incentive, the Corporation shall have the right to deduct the amount of any federal, state or local taxes that the Corporation or any Subsidiary may be required to withhold with respect to such payment. 

		
	4.7
	Amendment or Termination of Program.  The Board or the Committee may at any time terminate, amend, modify or suspend this Program, in whole or in part.  Notwithstanding the foregoing, no amendment may be effective without Board and/or shareholder approval if such approval is necessary to comply with the applicable rules of Section 162(m).

		
	4.8
	Claw-Back.  Notwithstanding any provision of the Program to the contrary, the Program, any Award under the Program, and any payment of an Annual Incentive under the Program, shall be subject to any recoupment, “clawback” or similar provisions of applicable law, as well as the Corporation’s Incentive Compensation Clawback Policy, as in effect from time to time, and any other recoupment or similar policies of the Corporation that may be in effect from time to time.

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00244-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00244-of-00352.parquet"}]]