Document:

exv10w5

 

    Exhibit 10.05

 

    Summary of the share purchase agreement entered into in Madrid
    on November 25, 2009, as amended on January 29, 2010.

 

    PARTIES
    TO THE AGREEMENT:

 

    On the one part,

 

			
	 	    • 
	
    Promotora de Informaciones, S.A., with registered address at
    Calle Gran Vía, 32, and holding tax identification number
    A-28297059
    (“Prisa”), and

 

			
	 	    • 
	
    Sogecable, S.A.U., with registered address at Avenida de los
    Artesanos, 6, Tres Cantos, Madrid, and holding tax
    identification number
    A-79114815
    (“Sogecable”)

 

    Prisa and Sogecable hereafter will be named as seller

 

    And, on the other part,

 

			
	 	    • 
	
    Telefonica, S.A, (“Telefónica”), as
    purchaser.

 

    PURPOSE:

 

    The sale of shares of DTS Distribuidora de Television Digital,
    S.A., with registered address in Avenida de los Artesanos, 6,
    Tres Cantos (Madrid), which represents the 22% of its share
    capital, being such shares correctly issued, validly subscribed,
    entirely paid out and free of nay burden, rights in favour of
    third parties, claim and restrictions of any class.

 

    PRICE AND
    PAYMENT:

 

    The price is equal to the result of subtracting the greater of
    the following figures (a) the net debt of DTS Distribuidora
    de Television Digital, S.A., Canal Satélite Digital, S.L.,
    Centro de Asistencia Telefónica, S.A., Sociedad General del
    Cine, S.A., Compañía Independiente de Televisión,
    S.L., Cinemanía, S.L. y Vía de Atención
    Comunicación, S.L., as of December 31st, 2009 or
    (b) seventy five million euros (75,000,000 euros) from the
    firm value, determinated by the parties as an amount equal to
    two billion, three hundred fifty million euros (2,350,000,000
    euros).

 

    The price shall be paid in the following manner:

 

    (a) An amount equal to the principal amount outstanding and
    the accrued, but unpaid, interest corresponding to be
    subordinated loan agreement granted by Telefonica de Contenidos,
    S.A., in favour of Sogecable, S.A.U., will be satisfied in the
    form of assumption by Telefónica of the payment obligations
    of Sogecable on the closing date, in favour of Telefónica
    de Contenidos, S.A.

 

    (b) The rest will be paid in cash on the closing date in
    the following manner:

 

			
	 	    • 
	
    If the definitive net debt has not been calculated before the
    closing date, fifty million euros (50,000,000 euros) will be
    deposited in an escrow account to compensate any potential
    adjustment in the final amount to compensate any potential
    adjustments in the final amount and the remaining amount will be
    paid in the form of a bank transfer.

 

			
	 	    • 
	
    If in the other hand the definitive net debt has been calculated
    before the closing date, the payment shall be made in the form
    of a bank transfer.

 

    PRICE
    GUARANTEE:

 

			
	 	    • 
	
    If in the following twelve (12) months after the share
    purchase agreement, a third party has agreed to purchase shares
    in the company and the firm value determined that is less than
    the one determined by the parties, the seller will be obligated
    to pay the difference even if the referred purchase agreement

    

    1

 

			
	 	
	
     tales place after twelve months. This amount will be paid
    within the following five (5) days of the transmission of
    the shares between the seller and the third party.

 

    NOTARIAL
    FORM:

 

    The share purchase agreement will be raised into public status
    before the notary Mr. Rodrigo Tena Arregui by
    10.00 a.m. on the fifth business day from the notification
    of the completion or waiver of the conditions contained in the
    agreement. On the closing date and before the notary
    Mr. Rodrigo Tena Arregui, both parties will raise to public
    status the share purchase agreement in a public deed, time at
    which the seller will transfer both the property and possession
    of the shares to the purchaser.

 

    PRICE
    ADJUSTMENT AFTER CLOSING:

 

			
	 	    • 
	
    If the definitive net debt is calculated after the closing date,
    the difference between the estimated price and the final price
    will be paid in cash deposited in the escrow account within the
    next ten (10) business days following an agreement between
    the parties or a report by an audit company.

 

			
	 	    • 
	
    If the provisional net debt is lower that the definitive net
    debt, the purchaser will take 22% of the difference of the
    accrued interest over the cash deposited in the escrow account.
    After the adjustment in the price and interest accrued has been
    made, the resulting money in the escrow account will be returned
    to the seller. If there are not enough funds in the escrow
    account, the seller transfers the difference within the next ten
    (10) business days.

 

			
	 	    • 
	
    If the provisional net debt is higher that the definitive net
    debt, within the following ten (10) business days of the
    audit report, the purchaser will pay the seller 22% of the
    difference and the remaining funds in the escrow account will be
    transferred to the seller.

 

    REPRESENTATIONS
    AND WARRANTIES:

 

    The share purchase agreement contains the usual representations
    and warranties of this type of agreement relating to:
    (i) its capacity and representation of the parties,
    (ii) ownership over the interests and shares of the
    affiliate of the company, (iii) share capital of the
    company and its affiliates, (iv) constitution, valid
    existence and legal capacity to develop its business activity,
    (v) articles of association, charters and account book,
    (vi) financial statements, (vii) loans and warranties
    granted by the company and its affiliates,
    (viii) administrative authorisations and licenses,
    (ix) intellectual and industrial property,
    (x) litigations and (xi) situation of the company, its
    affiliates and the business from December 31st, 2009.

 

    UNDERTAKINGS
    OF THE PARTIES:

 

			
	 	    • 
	
    Prisa and Sogecable assume joint and several liability and
    undertake to indemnify the purchaser
    and/or the
    company with regards to any damages that might result from the
    following scenarios:

 

			
	 	    • 
	
    Breach, inaccuracy, misrepresentation or incomplete
    representations and warranties made by the seller;

 

			
	 	    • 
	
    Breach by the seller of nay promise or obligation contained in
    the share purchase agreement;

 

			
	 	    • 
	
    Any contingency that affects the company or its affiliates, due
    to any cause with or without breach by the seller related
    Audiovisual Sport, S.L.; claims arisen by copyright,
    intellectual or industrial property and management agencies
    related to a breach of contract before the closing date in
    excess of sixty million euros (60,000,000 Euros).

 

			
	 	    • 
	
    Litigations and claims against the company or its affiliates
    except those specifically mentioned in the share purchase
    agreement.

 

			
	 	    • 
	
    The sellers undertake not only to include the obligation to
    indemnify the purchaser and /or the company and its affiliates
    but also to maintain the buyer
    and/or the
    company
    and/or its
    affiliates free from any claim.

    

    2

 

 

			
	 	    • 
	
    The right to exercise any claims related to the above
    undertakings are subject to a time period of three
    (3) years, starting from the closing date, with the
    exception of:

 

			
	 	    • 
	
    The responsibilities related to the following representations
    and warranties: (i) the legal capacity and representation
    of the parties, (ii) the ownership of the interest and
    shares of the affiliates of the company, and (iii) the
    share capital of the company and its affiliates which are not
    subject to time limit.

 

			
	 	    • 
	
    Claims related to tax, employment law and administrative damages
    are subject to each own time limit period.

 

			
	 	    • 
	
    The claimant will not have the right to claim for damages not
    contained in the share purchase agreement unless each claim
    individually valued is in excess of five thousand euros (5,000
    euros) and the total sum of the damages is in excess of five
    million euros (5,000,000 euros).

 

			
	 	    • 
	
    The parties agree that their responsibilities will be limited to
    the price stated in the share purchase agreement.

 

    MANAGEMENT
    OF THE COMPANY BY THE SLLER UNTIL THE CLOSING DATE:

 

    From the signature of the share purchase agreement till the
    closing date, the seller undertakes, among other things, to:

 

			
	 	    • 
	
    Operate exclusively in the course of ordinary business;

 

			
	 	    • 
	
    Keep the organisation in similar terms to the current one and
    maintain intact the reputation of the company in all aspects;

 

			
	 	    • 
	
    Maintain the assets of the company in the same state of sue and
    conservation with the only exception of the wear away due to
    their common use;

 

			
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    Maintain the company’s clients, moneylenders, suppliers and
    other professionals to which it has commercial relations;

 

			
	 	    • 
	
    Ensure that the company and its affiliates, unless expressly
    authorised, abstain from burdening its assets or give up any
    rights.

 

    CONDITIONS
    PRECEDENT:

 

    The completion of the share purchase agreement is subject to the
    completion of, among others, the following conditions precedent:

 

			
	 	    • 
	
    The approval by Prisa’s financial creditors of the
    transaction and release of the personal guarantees granted by
    the company and its affiliates in favour of Prisa.

 

			
	 	    • 
	
    The approval of the transaction by the relevant antitrust
    authorities.

 

			
	 	    • 
	
    All the assets and rights necessary to develop the business must
    belong to the company on the closing date. If after the closing
    date the seller or nay of its affiliates realises that some
    assets or rights related to the business have not been
    transferred, the seller will inform the purchaser and the
    company so the assets and rights can be transferred. The seller
    will not perceive consideration for this transmission.

 

    ADDITIONAL
    OBLIGATIONS:

 

			
	 	    • 
	
    While having control over the company, the seller undertakes to
    develop, through its stake in the company, on Spanish territory
    that: any type of activity related to the pay per view
    distribution, any activity related to digital pay per view
    television and rendering advice about the business of pay per
    view to any company unless it held a minority stake in a
    particular entity.

 

			
	 	    • 
	
    The parties shall no take part in the following activities in
    Spain: contract administrators, directors or collaborators,
    clients or suppliers of the company or its affiliates unless
    they are no longer under contract;

    

    3

 

			
	 	
	
     use or register denominations, symbols or any other industrial
    property right used by the company or its affiliates, even if
    using them is not illegal but would cause confusion; disclose to
    any third party parties and to Imagenio any other activities of
    affiliates of the purchaser that carry out activities related to
    pay per view television, information relative to the company,
    its affiliates or any business they carry out.

 

    APPLICABLE
    LAW:

 

    The agreement will be governed and construed in accordance with
    Spanish Law.

 

    DISPUTE
    RESOLUTION:

 

			
	 	    • 
	
    Ant dispute that might arise between the parties in connection
    with the validity, performance, construction, execution or
    resolution of the agreements referred above will be submitted to
    arbitration in accordance with the Regulations of Mediation and
    Arbitration International Court (CIMA).

 

			
	 	    • 
	
    The arbitration will be decided by three (3) arbitrators,
    to be designated one by each of the parties and the third one
    (the chairman) by the arbitrators previously designated by the
    parties. The arbitration process will be hold in Madrid and will
    be conducted either in Spanish or English.

 

			
	 	    • 
	
    Only if it is necessary and as a subsidiary measure, the parties
    agree to commit themselves to the exclusive jurisdiction of the
    Courts in Madrid.

    

    4exv10w6

 

    Exhibit 10.06

 

    Summary of the master agreement entered into in Madrid on
    April 14, 2010

 

    PARTIES
    TO THE AGREEMENT:

 

			
	 	    • 
	
    Mediaset, S.p.A., with registered address at via Paleocapa, 3,
    Milano, and holding tax identification number 090323101154
    (“Mediaset”),

 

			
	 	    • 
	
    Gestevision Telecinco, S.A., with registered address at
    carretera de Fuencarral- Alcobendas, 4, 28049 Madrid, and
    holding tax identification number
    A-79075438
    (“Telecinco”),

 

			
	 	    • 
	
    Promotora de Informaciones, S.A., with registered address at
    Calle Gran Vía, 32, and holding tax identification number
    A-28297059
    (“Prisa”), and

 

			
	 	    • 
	
    Sogecable, S.A.U., with registered address at Avenida de los
    Artesanos, 6, Tres Cantos, Madrid, and holding tax
    identification number
    A-79114815
    (“Sogecable”)

 

    TERM
    SHEET:

 

    In Madrid, on December 18th, Mediaset, Telecinco, Prisa and
    Sogecable signed a term sheet which stated the basis,
    fundamental principles, guidelines and rules governing the
    integration of Telecinco and Sogecuatro, the acquisition of the
    22% Digital + share capital by Telecinco and the celebration of
    a wide range of commercial agreements.

 

    PURPOSE:

 

    Establish the procedure, calendar and remaining terms upon which
    the parties will execute and complete the integration between
    Telecinco and Sogecuatro, the acquisition of the 22% Digital +
    share capital by Telecinco and the celebration/suscription of a
    wide range of commercial agreements.

 

    CONDITIONS
    FOR THE CLOSING:

 

    The integration of Telecinco and Sogecuatro, the acquisition of
    the 22% of Digital + share capital by Telecinco and the
    celebration/suscription of a wide range of commercial agreements
    are subject to the completion of, among others, the following
    conditions precedent:

 

			
	 	    • 
	
    The registration in the Commercial Register of the monetary
    capital increase for the amount of five hundred millions euros
    (500,000,000 Euros) (including the premium) and the commitment
    of Mediaset to exercise all its subscription rights attached to
    its current participation in Telecinco corresponding to the
    afore-mentioned monetary capital increase;

 

			
	 	    • 
	
    The completion of the segregation transaction related to the
    activity integrated by the rights and assets regarding to the
    business of television through ground waves so that that branch
    of business activity, together with all its assets and rights,
    will be transferred to Telecinco;

 

			
	 	    • 
	
    The completion of the acquisition by Telefónica, S.A., of a
    22% stake in Digital + share capital;

 

			
	 	    • 
	
    The approval by antitrust authorities, regulatory and Stock
    Exchange authorities for the integration of Telecinco and
    Sogecuatro, the acquisition of the 22% Digital + share capital
    by Telecinco and the celebration of a wide range of commercial
    agreements;

 

			
	 	    • 
	
    The approval and registration by the CNMV of the prospectus
    about the quote of new shares that Telecinco will issue through
    means of the monetary capital increase;

 

			
	 	    • 
	
    That Prisa and Sogecable obtain from their financial creditors
    the necessary waivers to execute the operation.

    

    1

 

 

    COLLABORATION:

 

    The parties to the transaction shall cooperate in good faith to
    fulfill all Conditions Precedent as soon as possible and ensure
    that all authorizations, agreements and documents are timely
    fulfilled by the obliged party for the closing date.

 

    INFORMATION:

 

    The parties will keep each other informed at any time and share
    all the relevant information regarding to the master agreement.

 

    Moreover, the parties commit themselves to notify each other
    (i) all the relevant communications with third parties to
    the agreement, (ii) the compliance of the afore-mentioned
    conditions precedent and (iii) the reception of decisions
    to give way to the completion of the conditions.

 

    INTEGRATION:

 

    On the closing date, Telecinco and Prisa will proceed with the
    integration of Sogecuatro in Telecinco, by means of exchange the
    100% of Sogecuatro share capital on a debt free basis for newly
    issued Telecinco’s shares, correctly issued, validly
    subscribed and entirely paid out, resulting from the above
    referred monetary capital increase.

 

    SALE AND
    PURCHASE AGREEMENT OF DIGITAL +:

 

    On the closing date, Telecinco will acquire from Prisa a 22%
    stake in the share capital of Digital +, on a debt free basis
    and the amendment of the First Shareholders’ Agreement of
    Digital + will come into effect.

 

    COMMERCIAL
    AGREEMENTS:

 

    The parties will negotiate in good faith the following
    agreements and endorse them before April 30th, 2010, with
    the exception of the agreement related to an option for the
    carriage of DTT 24h news channel which will be subscribed before
    May 15th, 2010:

 

			
	 	    • 
	
    Option agreement for the carriage of two pay DTT channels;

 

			
	 	    • 
	
    Exclusive agency agreement for the sale of advertising space in
    Digital +.

 

    CONSERVATION
    OF THE BUSINESS UNTIL THE CLOSING DATE:

 

    Until the closing date, the business of Sogecuatro and its
    affiliates will be driven and governed by, among others, the
    following principles:

 

			
	 	    • 
	
    To operate exclusively in the course of business in a prudent
    and diligent manner and according the going concern principle;

 

			
	 	    • 
	
    To maintain a similar administrative organisation and the
    reputation of the company;

 

			
	 	    • 
	
    To maintain its employees and salaries for new hires;

 

			
	 	    • 
	
    Not to alter or modify its articles of association;

 

			
	 	    • 
	
    Not to split up, merge, give up or reorganise the assets of the
    company in any way.

 

    COMPLETATION
    OF THE OPERATION, CLOSING AND SUBSEQUENT ACTS:

 

			
	 	    • 
	
    The closing will take place on or before December 22nd,
    2010. The date at which it actually takes place on will be named
    as the closing date.

 

			
	 	    • 
	
    If the closing date will not take place of the afore-mentioned
    date and no extension is granted, the contract will became null
    and void.

    

    2

 

 

			
	 	    • 
	
    The parties into the agreement must immediately notify the other
    party whether a condition is fulfilled or waived no later then
    five (5) days after it takes place so that on the following
    five (5) business days an extraordinary general meeting of
    Telecinco can take place and therefore execute the integration
    of Telecinco and Sogecuatro.

 

			
	 	    • 
	
    At the closing, the parties into the agreement will sign all the
    necessary documents for the integration of Telecinco and
    Sogecuatro, the acquisition of the 22% Digital + share capital
    by Telecinco and the celebration of a wide range of commercial
    agreements.

 

    DAMAGES:

 

    The party “in malis” will be responsible for
    indemnifying the other party for all damages that might be
    caused and provide all the necessary remedies.

 

    DISPUTE
    RESOLUTION:

 

			
	 	    • 
	
    Ant dispute that might arise between the parties in connection
    with the validity, performance, construction, execution or
    resolution of the agreements referred above shall be submitted
    to arbitration in accordance with the Regulations of Mediation
    and Arbitration International Court (CIMA).

 

			
	 	    • 
	
    The arbitration shall be decided by three (3) arbitrators,
    to be designated one by each of the parties and the third one
    (the chairman) by the arbitrators previously designated by the
    parties. The arbitration process shall be held in Madrid and
    shall be conducted either in Spanish or English.

 

			
	 	    • 
	
    Only if it is necessary and as a subsidiary measure, the parties
    agree to commit themselves to the exclusive jurisdiction of the
    Courts in Madrid.

 

    APPLICABLE
    LAW:

 

    The agreement will be governed and construed in accordance with
    Spanish Law.

    

    3

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