Document:

Unassociated Document

    
      Exhibit 10.14.1

       

    

    Execution
Copy

    

    AMENDMENT
NO. 1 TO

    MEMBERSHIP
INTEREST PURCHASE AGREEMENT

    

    AMENDMENT NO. 1, dated October
5, 2009 (this “Amendment”), to the MEMBERSHIP INTEREST PURCHASE
AGREEMENT (as amended, modified or supplemented from time to time, the
“Purchase Agreement”)
dated November 10, 2008, by and among MDC Acquisition Inc., a
Delaware corporation (“MDC
Sub”); CPB Acquisition
Inc., a Delaware Corporation (“Acquisition Co.”); MDC Partners Inc., a Canadian
corporation (“MDC
Partners”); Crispin
& Porter Advertising, Inc. (d/b/a Crispin Porter & Bogusky), a
Florida corporation (“CPB
Inc.” or “Seller”); Charles Porter (“Porter”), Alex Bogusky (“Bogusky”), Jeff Hicks (“Hicks”), and Jeff Steinhour (“Steinhour”; together with
Porter, Bogusky and Hicks collectively referred to as the “Employee Members” and
individually as an “Employee Member”); MDC Sub, together
with the Acquisition Co., Employee Members and CPB Inc., collectively referred
to as the “Members” and
individually a “Member”)).

    

    W I T N E S S E T H :

    

    WHEREAS, the parties hereto
desire to amend the Purchase Agreement as hereinafter set forth and agree to
certain other matters contained herein;

    

    WHEREAS, pursuant to the Purchase
Agreement, CPB Inc. (the “Seller”) sold, and MDC Sub
purchased, an aggregate amount equal to 17% of the issued and outstanding
Membership Interests in the Company (the “Purchased Interests”);

    

    NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth in this
Amendment, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto do hereby agree
as follows:

    

    1.           Capitalized
terms used but not defined herein shall have the meanings ascribed to such terms
in the Purchase Agreement.

    

    2.           The
parties hereto agree that the “Final Purchase Payment” shall
be paid 100% in cash.  Therefore, the second sentence of Section
2(a)(ii) of the Purchase Agreement is hereby amended and restated in its
entirety as follows:

    

    “An
amount equal to 100% of the Final Purchase Payment paid in respect of the Period
Three Formula Amount shall be paid in cash by wire transfer notwithstanding MDC
Sub’s right to elect to pay a portion of such payment in shares of MDC Stock
pursuant to Section 10.5(e) of the LLC Agreement.”

    

    3.           Section
2(a)(iv) of the Purchase Agreement is hereby amended by deleting the second
sentence therein.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.           Pursuant
to prior agreements and the Purchase Agreement, MDC previously issued an
aggregate amount of 600,662 shares of MDC Partners’ Class A subordinate voting
shares to CPB Inc. (the “Restricted Shares”),
represented by Certificate No. A-32221 for 495,662 shares and Certificate No.
A-03328 for 105,000 shares.  With respect to the Restricted Shares,
CPB Inc. hereby agrees that, during the “Lock-Up Period” (as defined
below), CPB Inc.  (i) will not offer, pledge, sell, contract to sell,
sell any option or contract to purchase, purchase any option or contract to
sell, grant any option, right or warrant to purchase, lend, or otherwise
transfer or dispose of, directly or indirectly, the Restricted Shares; or (ii)
enter into any swap or other arrangement that transfers to another, in whole or
in part, any of the economic consequences of ownership of the Restricted
Shares.  The foregoing restriction is expressly agreed to preclude CPB
Inc. from engaging in any hedging or other transaction which is designed to or
which reasonably could be expected to lead to or result in a sale or disposition
of the Restricted Shares. Such prohibited hedging or other transactions would
include without limitation any short sale or any purchase, sale or grant of any
right (including without limitation any put or call option) with respect to any
of the Restricted Shares or with respect to any security that includes, relates
to, or derives any significant part of its value from the Restricted Shares. For
the purposes of this Amendment, the “Lock-Up Period” means (A) with
respect to 300,662 of the Restricted Shares, the period commencing on August 31,
2009 and ending on August 31, 2010 and (B) with respect to 300,000 of the
Restricted Shares, the period commencing on August 31, 2009 and ending on
February 28, 2011.

     

    5.           Except
as set forth above, the Purchase Agreement, as amended herein, shall remain in
full force and effect without further modification.

    

    6.           This
Amendment may be executed in one or more counterparts, and each such counterpart
shall be deemed an original instrument, but all such counterparts taken together
shall constitute but one agreement.  Facsimile signatures shall
constitute an original.

    

    7.           This
Amendment, including the other documents referred to herein that form a part
hereof, contains the entire understanding of the parties hereto with respect to
the subject matter contained herein and therein.  This Amendment
supersedes all prior agreements and understandings between the parties with
respect to the subject matter contained in this Amendment.

    

    

    *                      *                      *                      *                      *

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, the
undersigned have executed this Amendment No. 1 to the Purchase Agreement, as of
the day and year first above written.

     

    
      
        	 	MDC ACQUISITION
      INC.	 
	 	 	 	 
	
                 

              	
                By:
      

              	 /s/ Michael
      Sabatino	 
	 	 	Name: 
      Michael Sabatino	 
	 	 	Title:   
      President	 
	 	 	 	 

      

    

    
      	 	
              CPB
      ACQUISITION INC.

            	 
	 	 	 	 
	
               

            	
              By:
      

            	 /s/ Michael
      Sabatino	 
	 	 	Name: 
      Michael Sabatino	 
	 	 	Title:   
      President	 
	 	 	 	 

    

    
      	 	
              MDC
      PARTNERS INC.

            	 
	 	 	 	 
	
               

            	
              By:
      

            	 /s/ Mitchell Gendel	 
	 	 	Name: 
      Mitchell Gendel	 
	 	 	Title:   
      General Counsel	 
	 	 	 	 

    

    
      	 	
              
                CRISPIN
      & PORTER ADVERTISING, INC.

              

            	 
	 	 	 	 
	
               

            	
              By:
      

            	 /s/  Charles
      K. Porter	 
	 	 	Name: 
      Charles K. Porter	 
	 	 	Title:   
      CEO	 
	 	 	 	 

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	 	
                                          
                                            

                                              Employee
      Members:

                                            

                                          

                                        	 
	 	 	 	 
	
                                           

                                        	
                                          By:
      

                                        	 /s/ Charles K. Porter	 
	 	 	Charles
      Porter	 
	 	 	 	 
	 	By:	 /s/ 
      Alex Bogusky	 
	 	 	Alex
      Bogusky	 
	 	 	 	 
	 	By:	 /s/
      Jeff Hicks	 
	 	 	Jeff
      Hicks	 
	 	 	 	 
	 	

                                          By:
      

                                        	 /s/
      Jeff Steinhour	 
	 	 	Jeff
      SteinhourUnassociated Document

    Exhibit 10.14.2

     

    Execution
Copy

    

    AMENDMENT
NO. 2 TO

    MEMBERSHIP
INTEREST PURCHASE AGREEMENT

    

    AMENDMENT NO. 2, dated
December 1, 2009 (this “Amendment”), to the MEMBERSHIP INTEREST PURCHASE
AGREEMENT dated November 10, 2008 (as amended, modified or supplemented
from time to time, the “Purchase Agreement”), by and
among MDC Acquisition
Inc., a Delaware corporation (“MDC Sub”); CPB Acquisition Inc., a
Delaware Corporation (“Acquisition Co.”); MDC Partners Inc., a Canadian
corporation (“MDC
Partners”); Crispin
& Porter Advertising, Inc. (d/b/a Crispin Porter & Bogusky), a
Florida corporation (“CPB
Inc.” or “Seller”); Charles Porter (“Porter”), Alex Bogusky (“Bogusky”), Jeff Hicks (“Hicks”), and Jeff Steinhour (“Steinhour”; together with
Porter, Bogusky and Hicks collectively referred to as the “Employee Members” and
individually as an “Employee Member”); MDC Sub, together
with the Acquisition Co., Employee Members and CPB Inc., collectively referred
to as the “Members” and
individually a “Member”)).

    

    W I T N E S S E T H :

    

    WHEREAS, the parties hereto
desire to amend the Purchase Agreement as hereinafter set forth and agree to
certain other matters contained herein;

    

    WHEREAS, pursuant to the Purchase
Agreement, CPB Inc. (the “Seller”) sold, and MDC Sub
purchased, an aggregate amount equal to 17% of the issued and outstanding
Membership Interests in the Company (the “Purchased
Interests”);

    

    NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth in this
Amendment, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto do hereby agree
as follows:

    

    1.           Capitalized
terms used but not defined herein shall have the meanings ascribed to such terms
in the Purchase Agreement.

    

    2.         On
or prior to December 1, 2009, MDC Sub shall pay to Seller an amount equal to
$35.9 million (the “2009
Installment Payment”), as an initial installment of the final payment in
respect of the Period Three Formula Amount.

    

    3.           Section
2(a)(ii) of the Purchase Agreement is hereby amended and restated as
follows:

    

    “On or
prior to April 1, 2010, a payment in an amount equal to the “Period Three Formula Amount”,
calculated in accordance with Section 10.4.3(c) of the LLC Agreement, minus
$40.1 million (such net amount, the “Final Purchase Payment”),
payable in cash.  In the event that the Period Three Formula Amount is
equal to less than zero, there shall be no repayment obligation by the Seller to
MDC Sub.”

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    4.           In
connection with the “Final
Purchase Payment” of the Put/Call Purchase Price payable to Seller, the
following terms and conditions shall apply:

    

    
      	
               
      (1)  

            	
              On
      or prior to December 18, 2009, MDC Sub shall pay to Seller an additional
      amount equal to the amount of the discretionary incentive bonus pool
      payable to the Company’s employees, inclusive of applicable payroll taxes,
      in respect of 2009 (the “2009 Additional
      Payment”).  CPB Inc. will promptly pay the related
      incentive payments to employees of the Company, as determined by it,
      together with applicable payroll taxes;
and

            

    

    

    
      	
               
      (2)  

            	
              PBT
      for YP+1 (2009) shall be that amount of PBT for such calendar year as
      determined and calculated in accordance with Section 10.4(b)(x) of the LLC
      Agreement.  For the avoidance of doubt, PBT for 2009 shall be
      reduced by an amount equal to the 2009 Additional Payment (without
      duplication).

            

    

    

    5.           Except
as set forth above, the Purchase Agreement, as amended herein, shall remain in
full force and effect without further modification.

    

    6.           This
Amendment may be executed in one or more counterparts, and each such counterpart
shall be deemed an original instrument, but all such counterparts taken together
shall constitute but one agreement.  Facsimile signatures shall
constitute an original.

    

    7.           This
Amendment, including the other documents referred to herein that form a part
hereof, contains the entire understanding of the parties hereto with respect to
the subject matter contained herein and therein.  This Amendment
supersedes all prior agreements and understandings between the parties with
respect to the subject matter contained in this Amendment.

    

    

    *                      *                      *                      *                      *

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, the
undersigned have executed this Amendment No. 2 to the Purchase Agreement, as of
the day and year first above written.

     

    
       

      
        
          	 	MDC ACQUISITION
      INC.	 
	 	 	 	 
	
                   

                	
                  By:
      

                	 /s/ Michael
      Sabatino	 
	 	 	Name: 
      Michael Sabatino	 
	 	 	Title:   
      President	 
	 	 	 	 

        

      

      
        	 	
                CPB
      ACQUISITION INC.

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	 /s/ Michael Sabatino 	 
	 	 	Name: 
      Michael Sabatino	 
	 	 	Title:   
      President	 
	 	 	 	 

      

      
        	 	
                MDC
      PARTNERS INC.

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	 /s/ David B.
      Doft	 
	 	 	Name:  David B.
      Doft	 
	 	 	Title:   
      Chief Financial Officer	 
	 	 	 	 

      

      
        	 	
                
                  CRISPIN
      & PORTER ADVERTISING, INC.

                

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	 /s/ Charles K. Porter	 
	 	 	Name: 
      Charles K. Porter	 
	 	 	Title:   
      CEO	 
	 	 	 	 

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	 	
                                            
                                              

                                                Employee
      Members:

                                              

                                            

                                          	 
	 	 	 	 
	
                                             

                                          	
                                            By:
      

                                          	 /s/ Charles Porter	 
	 	 	Charles
      Porter	 
	 	 	 	 
	 	By:	 /s/
      Alex Bogusky	 
	 	 	Alex
      Bogusky	 
	 	 	 	 
	 	

                                            By:
      

                                          	 /s/
      Jeff Hicks	 
	 	 	Jeff
      Hicks	 
	 	 	 	 
	 	By:	 /s/
      Jeff Steinhour	 
	 	 	Jeff
      Steinhour

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