Document:

Exhibit 10.1

 

EXECUTION VERSION

 

This AMENDMENT NO. 2 (this “Amendment”) is entered into on December 22, 2015 (the “Effective Date of this Amendment”) between CTC Media, Inc., a corporation organized and existing under the law of the State of Delaware (the “Seller”), and UTV-Management LLC, a company organized and existing under the law of the Russian Federation (the “Purchaser”, and together with the Seller, the “Parties”), and amends the Framework Agreement between the Parties dated September 24, 2015, as amended by Amendment No. 1 thereto dated December 15, 2015 (as amended, the “Framework Agreement”).

 

R E C I T A L S

 

WHEREAS, the Seller and the Purchaser are party to the Framework Agreement; and

 

WHEREAS, the Parties desire to amend the Framework Agreement as hereinafter set forth;

 

NOW, THEREFORE, for and in consideration of the mutual covenants and undertakings herein provided, the Parties hereby agree as follows:

 

1.                                      DEFINED TERMS; INTERPRETATION

 

1.1                               In this Amendment, unless the contrary intention appears, a reference to a section is a reference to a section of this Amendment.

 

1.2                               The headings in this Amendment do not affect its interpretation.

 

1.3                               For purposes of this Amendment, unless otherwise defined herein, capitalized terms used but not otherwise defined herein shall have the meanings set forth in Section 1.01 of the Framework Agreement.

 

1.4                               The rules of interpretation set forth in Section 1.02 of the Framework Agreement shall apply mutatis mutandis to this Amendment as fully as if expressly set forth herein.

 

2.                                      AMENDMENT

 

2.1                               The amendments set out in section 2.2 shall be effective from the Effective Date of this Amendment.

 

2.2                               The Parties hereby agree that the Framework Agreement will be amended as follows:

 

(i)                                    Amendment to Section 2.02 of the Framework Agreement. The Parties hereby agree that the reference to “December 21, 2015” set forth in Section 2.02 of the Framework agreement shall be amended to read “December 23, 2015”.

 

(ii)                                 Amendment to Section 2.01(c) of the Framework Agreement. The Parties hereby agree to amend Section 2.01(c) of the Framework Agreement as follows:

 

(a)                                 by replacing each reference to “as of the fifth (5th) Business Day prior to the scheduled Closing Date” with “as of December 14, 2015”; and

 

(b)                                 by replacing the reference to “the third (3rd) Business Day prior to the scheduled Closing Date” at the end of Section 2.01(c) with “as of December 21, 2015”.

 

1

 

(iii)                               Waiver of the Purchase Price Adjustment Pursuant to Section 2.02(c)(ii) of the Framework Agreement.

 

(a)                                 Pursuant to Section 2.01(c)(ii) of the Framework Agreement, the Purchase Price shall be subject to adjustment as follows: to the extent that the aggregate Indebtedness of the Acquired Companies organized under the laws of Kazakhstan exceeds the aggregate principal amount of USD 1.5 million and (y) to the extent the Kazakh Cash is less than USD 2.7 million, calculated as of the fifth (5th) Business Day prior to the scheduled Closing Date, then the Purchase Price shall be decreased in US dollars by such amount(s) multiplied by a coefficient of 0.45. Pursuant to Section 2.01(c) of the Framework Agreement, the Parties shall confirm such adjustment (if any) to the Purchase Price no later than the third (3rd) Business Day prior to the scheduled Closing Date.

 

(b)                                 The Seller hereby requests that the Purchaser waive any contractual rights to the adjustment of the Purchase Price contemplated by Section 2.01(c)(ii) of the Framework Agreement (“Kazakhstani Indemnity Adjustment Rights”). Under Section 10.01 of the Framework Agreement, the waiver of any term of the Framework Agreement may be effected by an instrument in writing signed by the waiving Party referring specifically to the term or condition to be waived and to the circumstances of such waiver.

 

(c)                                  By execution of this Amendment, and subject to paragraph (d) below, the Purchaser hereby expressly waives the Kazakhstani Indemnity Adjustment Rights.

 

(d)                                 The Parties agree that, to the extent that at the time of the determination of the Net Cash Flow Shortfall pursuant to Section 2.01(d) of the Framework Agreement (i) the aggregate Indebtedness of the Acquired Companies organized under the laws of Kazakhstan (“Kazakh Indebtedness”) exceeds the aggregate principal amount of USD 0.890 million and/or (ii) the Kazakh Cash is less than USD 2.155 million, each calculated as of the Closing, then the Purchaser shall have a right to reduce the Purchase Price (by deduction from the Holdback Amount) by an amount equal to (x) the principal amount of Kazakh Indebtedness in excess of USD 0.890 million principal amount and/or (y) the amount that the Kazakh Cash is less than USD 2.155 million , in each case multiplied by a coefficient of 0.45.

 

(iv)                              Waiver of the Litigation Indemnity Pursuant to Section 2.02(c)(iv) of the Framework Agreement.

 

(a)                                 Pursuant to Section 2.01(c)(iv) of the Framework Agreement, the Purchase Price shall be subject to adjustment by the amount of the Litigation Indemnity to the extent that there is any such amount outstanding as of the fifth (5th) Business Day prior to the scheduled Closing Date. Pursuant to Section 2.01(c) of the Framework Agreement, the Parties shall confirm such adjustment (if any) to the Purchase Price no later than the third (3rd) Business Day prior to the scheduled Closing Date.

 

2

 

(b)                                 The Seller has informed the Purchaser that, as at the date of this Amendment, the parties to the claim disclosed in Section 3.17 of the Disclosure Schedule and Section 3.17 of the Supplemental Disclosure Schedule have reached agreement in principle on a settlement of such claim, pursuant to which an Acquired Company shall enter into a distribution agreement with respect to CTC-International programming in the United States of America and make a settlement payment in the amount of USD 100,000 (the “USD 100,000 Settlement).  The Seller hereby requests that the Purchaser waive any contractual rights to an adjustment of the Purchase Price with respect to the Litigation Indemnity as contemplated by Section 2.01(c)(iv) of the Framework Agreement (“Litigation Indemnity Adjustment Rights”). Under Section 10.01 of the Framework Agreement, the waiver of any term of the Framework Agreement may be effected by an instrument in writing signed by the waiving Party referring specifically to the term or condition to be waived and to the circumstances of such waiver.

 

(c)                                  By execution of this Amendment, and subject to paragraph (d) below, the Purchaser hereby expressly waives the Litigation Indemnity Adjustment Rights.

 

(d)                                 The Parties agree that the Purchaser shall have the right to reduce the Purchase Price (by deduction from the Holdback Amount) by the following amounts:  (i) the amount of the USD 100,000 Settlement; (ii) any other amounts paid out in connection with such claims between the date hereof and the date of the determination of the Net Cash Flow Shortfall pursuant to Section 2.01(d) of the Framework Agreement; and/or (iii) any amount outstanding in respect of the Litigation Indemnity (which, for the avoidance of doubt, shall continue to apply until such date) at the time of such determination.

 

(v)                                 Waivers Under Sections 2.03(a) and (b) of the Framework Agreement.

 

(a)                                 Pursuant to Section 2.03(a) of the Framework Agreement, at Closing the Seller shall comply with its obligations set out in Schedule 2.03 of the Framework Agreement.  Pursuant to paragraph 5 of Schedule 2.03 to the Framework Agreement, at Closing the Seller shall procure the passing of resolutions of the CEO of the Target revoking (i) all existing authorities to operate any bank accounts of the Acquired Companies and (ii) all existing powers of attorney to act for any Acquired Company in each case held by, inter alia, any employee of the Seller.  Pursuant to Section 2.03(b) of the Framework Agreement, if any of the obligations of the Seller under Section 2.03(a) and Schedule 2.03 to this Agreement is not complied with on the Closing Date, the Purchaser may defer Closing.

 

(b)                                 The Seller has informed the Purchaser that, as at the Closing Date, the individual named on Exhibit 1 hereto will also hold the positions and authorities with the Acquired Companies as set out on Exhibit 1 (the “Continuing Engagement”).

 

(c)                                  The Seller hereby requests that the Purchaser waive any contractual rights against the Seller for failure to comply at Closing with Section 2.03(a) of the

 

3

 

Framework Agreement that would arise solely as a result of the Continuing Engagement.  By execution of this Amendment, the Purchaser hereby expressly waives its contractual rights against the Seller that would arise solely as a result of the Continuing Engagement and further agrees not to defer the Closing pursuant to Section 2.03(b) of the Framework Agreement solely as a result of the Continuing Engagement.

 

(vi)                              Waiver of Condition Precedent Set Forth in Section 7.02(k) of the Framework Agreement.

 

(a)                                 The Seller has informed the Purchaser that, notwithstanding Section 7.02(k) of the Framework Agreement, a guaranty by the Target of the obligations of the Seller in respect of the Seller’s Management Incentive Plan relating to the individual named on Exhibit 2 hereto in the maximum amount as set out on Exhibit 2 (the “Target’s Guaranty”) shall not have been terminated or released as of Closing. By execution of this Amendment, and subject to paragraph (b) below, the Purchaser hereby expressly waives the condition precedent set forth in Section 7.02(k) of the Framework Agreement as it relates to the Target’s Guaranty.

 

(b)                                 The Parties agree that, to the extent there is any amount outstanding in respect of the Target’s Guaranty at the time of the determination of the Net Cash Flow Shortfall pursuant to Section 2.01(d) of the Framework Agreement, the Purchaser shall have a right to deduct such amount from the Holdback Amount at such time.

 

(vii)         Amendment With Respect to 5% Resolution

 

(a)                                 The definition of “5% Resolution” provided in Section 1.01 of the Framework Agreement shall be amended by deleting such definition in its entirety and replacing it with the following:

 

““5% Resolution” means the written resolutions of Seller and Purchaser as participants of Target (i) to increase the charter capital of Target through the contribution by the Purchaser (or its Affiliate, as designated by Purchaser) in the form of a Russian-law-governed promissory note whereby the Purchaser (or such Affiliate) shall acquire Participation Interests with the result that (immediately upon such issuance) the Purchaser (singly, or together with such Affiliate) holds 80% of the total participation interests of the Target and (ii) to approve the pledge of the Sale Participation Interests by Purchaser in favour of Purchaser’s creditor, substantially in the form set out in Schedule 1.01(h).”

 

(b)                                 Schedule 1.01(h) to the Framework Agreement shall be amended by deleting such Schedule in its entirety and replacing it with the form documents set out in Exhibit 3 to this Amendment.

 

4

 

3.                                      MISCELLANEOUS

 

3.1                               Generally.  The provisions of Article X (Miscellaneous) of the Framework Agreement shall apply mutatis mutandis to this Amendment as fully as if expressly set forth herein.

 

3.2                               Governing Law.  The validity, construction, interpretation, and effect of this Amendment and all actions, proceedings or counterclaims (whether based on contract, tort or otherwise) arising out of or relating to this Amendment shall be governed by, and construed in accordance with the laws of the State of Delaware, without giving effect to any choice or conflict of laws provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware.

 

3.3                               Integration.  The Framework Agreement, as amended by this Amendment, and the other Transaction Documents constitute the entire agreement between the Parties with respect to the matters contained herein and therein and all prior contracts or arrangements between them with respect to such matters are superseded.  Any oral or written representation, warranty, course of dealing or trade usage not contained or referenced herein or therein will not be binding on the Parties.

 

3.4                               Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall be an original but all of which, taken together, shall constitute only one legal instrument.

 

3.5                               References to the Framework Agreement.  On and after the Effective Date of this Amendment, each reference in the Framework Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Framework Agreement shall mean and be a reference to the Framework Agreement as amended by this Amendment.

 

3.6                               Effect of this Amendment.  Except as otherwise expressly provided in this Amendment (which shall be read as one with the Framework Agreement as if fully set forth herein):

 

(a)                                 this Amendment shall not operate as a waiver of any right, power or remedy of any Party, nor constitute a waiver of any provision of the Framework Agreement; and

 

(b)                                 the Framework Agreement shall remain unchanged and in full force and effect and is hereby ratified and confirmed in all respects.

 

5

 

IN WITNESS WHEREOF the Parties hereto have caused this Amendment to be duly executed by their respective authorized officers as of the date first above written.

 

	
 
    	
PURCHASER:
    
	
 
    	
 
    
	
 
    	
UTV-MANAGEMENT LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SELLER:
    
	
 
    	
 
    
	
 
    	
CTC   MEDIA, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

6exhibit101talencompanyma

Exhibit 10.1        Talen Energy    2015 Stock Incentive Plan      Restricted Stock Unit Agreement   (Matching Grants on Purchased Shares)      Participant:     Date of Grant:      Number of RSUs:          1. Grant of RSUs.  The Company hereby grants the number of restricted   stock units (“RSUs”) listed above to the Participant, on the terms and conditions hereinafter set   forth.  This grant is made pursuant to the terms of the Talen Energy 2015 Stock Incentive Plan   (the “Plan”), which Plan, as amended from time to time, is incorporated herein by reference and   made a part of this Agreement.  Each RSU represents the unfunded, unsecured right of the   Participant to receive a Share on the date(s) specified herein.  Capitalized terms not otherwise   defined herein shall have the same meanings as in the Plan.   2. Vesting/Form and Timing of Issuance or Transfer.   (a) Subject to the Participant’s continued Employment with the Company and   its Affiliates through the second anniversary of the Date of Grant (the “Vesting Date”) and the   Participant not engaging in any Prohibited Activity prior to the Vesting Date, 100% of the RSUs   shall vest upon the Vesting Date, and the Company shall, within 30 days following the Vesting   Date issue or cause there to be transferred to the Participant the corresponding number of   Shares equal to the number of Vested RSUs.  Notwithstanding the preceding sentence, 100%   of the outstanding RSUs shall vest upon (i) a Change in Control or (ii) the Participant’s   termination of Employment due to death or Disability (each of the events described under   clause (i) and (ii) being an “Acceleration Event”).  The Shares underlying any portion of the   RSUs that vest in accordance with the preceding sentence shall be delivered to the Participant   within 30 days following the occurrence of the Acceleration Event. In the event that the   Participant engages in any Prohibited Activity prior to the Vesting Date, all Unvested RSUs held   by Participant pursuant to this Restricted Stock Unit Agreement will be immediately forfeited   without consideration.  Upon the Participant’s termination of Employment with the Company or   any Affiliate for any reason other than due to an Acceleration Event, all RSUs that did not   become vested on or prior to such date shall immediately terminate and be forfeited without   consideration and no Shares shall be delivered hereunder.   (b) Upon the issuance or transfer of Shares in accordance with Section 2(a)   of this Agreement, the number of RSUs equal to the number of Shares issued or transferred to   the Participant, along with the number of RSUs equal to the number of Shares withheld by the   Company to satisfy any applicable tax withholding obligations under Section 9, shall be   extinguished.   (c) For purposes of this Agreement:   (i)   “Prohibited Activity” shall mean any of the following: (x) Participant’s sale or   transfer of Participant’s Purchased Shares (as defined below) to a third party prior to the     

 

   2   Vesting Date, (y) Participant’s transfer of any Purchased Shares into or out of the   brokerage account designated by the Company prior to the Vesting Date, or (z)   Participant’s entering into hedging or similar transactions with any Purchased Shares or   holding such Purchased Shares in margin accounts; provided, however, that clauses (x)   and (y) shall not be deemed to be violated as a result of any transfer that occurs by will   or by the laws of descent and distribution, or, subject to the Committee’s approval, to a   trust or estate planning vehicle for the benefit of the Participant’s immediate family.   (ii)  “Purchase Date” shall mean the date(s) upon which the Participant   purchased shares of Company common stock on the open market on a post-tax basis as   identified on Exhibit A hereto (such shares, the “Purchased Shares”).   (iii)  “Unvested RSUs” shall mean, on a given date, the number of RSUs which   remain unvested.   (iv)  “Vested RSUs” shall mean, on a given date, the number of RSUs which are   then vested, but for which Shares have not yet been delivered.   3. Dividend Equivalent RSUs.  RSUs shall not pay cash dividends.  The   Participant shall be entitled to receive additional RSUs equal to the number of whole Shares   that could have been purchased on the date that any dividends on Shares may be paid, at the   Fair Market Value of Shares on that date, as if the dollar amount of any ordinary dividends that   are declared on Shares applied to the Shares underlying the RSUs.  All such additional RSUs   shall be subject to the same terms and conditions applicable herein to the underlying RSUs ,   including  such RSUs becoming Vested RSUs.  Notwithstanding the foregoing, if on any date   while RSUs are outstanding hereunder the Company shall pay any extraordinary dividend on   the Shares, the Committee shall equitably adjust the outstanding RSUs pursuant to Section 10   of the Plan.   4. No Right to Continued Employment.  The granting of RSUs evidenced by   this Agreement shall impose no obligation on the Company or any Affiliate to continue the   Employment of the Participant and shall not lessen or affect the Company’s or its Affiliate’s right   to terminate the Employment of such Participant.   5. No Rights of a Shareholder.  The Participant shall not have any rights as   a shareholder of the Company until the Shares have been issued or transferred to such   Participant.   6. Legend on Certificates.  Any Shares issued or transferred to the   Participant pursuant to Section 2 of this Agreement shall be subject to such stop transfer orders   and other restrictions as the Committee may deem advisable under the Plan or the rules,   regulations, and other requirements of the Securities and Exchange Commission, any stock   exchange upon which such Shares are listed, and any applicable federal or state laws or   relevant securities laws of the jurisdiction of the domicile of the Participant, and the Committee   may cause a legend or legends to be put on any certificates representing such Shares to make   appropriate reference to such restrictions.   7. Transferability.  RSUs may not be assigned, alienated, pledged, attached,   sold or otherwise transferred or encumbered by the Participant otherwise than by will or by the   laws of descent and distribution, and any purported assignment, alienation, pledge, attachment,   sale, transfer or encumbrance not permitted by this Section 7 shall be void and unenforceable     

 

   3   against the Company or any Affiliate; provided that the designation of a beneficiary shall not   constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.   8. Notices.  Any notice under this Agreement shall be addressed to the   Company in care of its General Counsel at the principal executive office of the Company and to   the Participant at the address appearing in the personnel records of the Company for the   Participant or to either party at such other address as either party hereto may hereafter   designate in writing to the other.  Any such notice shall be deemed effective upon receipt   thereof by the addressee.   9. Withholding.  The Participant shall be required to pay to the Company or   any Affiliate applicable withholding taxes with respect to any issuance or transfer under this   Agreement or under the Plan, and the Company or any Affiliate shall have the right and is   hereby authorized to withhold from any issuance or transfer due under this Agreement or under   the Plan or from any compensation or other amount owing to the Participant an amount in   respect of such withholding taxes, and to take such action as may be necessary in the opinion   of the Company to satisfy all obligations for the payment of such withholding taxes.   10. Choice of Law.  THE INTERPRETATION, PERFORMANCE AND   ENFORCEMENT OF THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE   STATE OF DELAWARE WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.   11. RSUs Subject to Plan.  By entering into this Agreement, the Participant   agrees and acknowledges that the Participant has received and read a copy of the Plan and   agrees that all RSUs and Shares received in respect of RSUs are subject to the Plan.  The   terms and provisions of the Plan, as may be amended from time to time, are hereby   incorporated by reference.  In the event of a conflict between any term or provision contained   herein and a term or provision of the Plan, the applicable terms of the Plan will govern and   prevail.     12. Modifications.  Notwithstanding any provision of this Agreement to   contrary, the Company reserves the right to modify the terms and conditions of this Agreement   including, without limitation, the timing or circumstances of the issuance or transfer of Shares to   the Participant hereunder, to the extent such modification is determined by the Company to be   necessary to comply with applicable law or preserve the intended deferral of income recognition   with respect to the RSUs until the issuance or transfer of Shares hereunder.   13. Signature in Counterparts.  This Agreement may be signed in   counterparts, each of which shall be an original, with the same effect as if the signatures thereto   and hereto were upon the same instrument.   14. Compliance with IRC Section 409A.  Notwithstanding anything herein to   the contrary, (i) if at the time of the Participant’s termination of employment with the Company   and its Affiliates the Participant is a “specified employee” as defined in Section 409A of the   Code and the deferral of the commencement of any payments or benefits otherwise payable   hereunder as a result of such termination of employment is necessary in order to prevent any   accelerated or additional tax under Section 409A of the Code, then the Company will defer the   commencement of the payment of any such payments or benefits hereunder (without any   reduction in such payments or benefits ultimately paid or provided to the Participant) until the   date that is six months and one day following the Participant’s termination of employment with   the Company and its Affiliates (or the earliest date as is permitted under Section 409A of the     

 

   4   Code) and (ii) if any other payments or other benefits due to the Participant hereunder could   cause the application of an accelerated or additional tax under Section 409A of the Code, such   payments or other benefits shall be deferred if deferral will make such payment or other benefits   compliant under Section 409A of the Code, or otherwise such payment or other benefits shall be   restructured, to the extent possible, in a manner, determined by the Committee, that does not   cause such an accelerated or additional tax.  The Company shall use commercially reasonable   efforts to implement the provisions of this Section 14 in good faith; provided that neither the   Company, the Committee nor any of the Company’s employees, directors or representatives   shall have any liability to the Participant with respect to this Section 14.                   Sincerely,        Talen Energy Corporation                     ______________________________       Paul Farr        President & Chief Executive Officer                                                                 

 

   5      Exhibit A         Talen Energy     2015 Stock Incentive Plan      Restricted Stock Unit Agreement   (Matching Grants on Purchased Shares)               Granted to: Participant Name      SSN: SSN or I-Number            Date of Award: Grant date      Purchased Shares: Number of Purchased Shares purchased      Purchase Date(s): Date(s) upon which Purchased Shares were purchased      Restricted Stock Units: Number of shares granted

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00252-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00252-of-00352.parquet"}]]