Document:

Press Release

 Exhibit 10.1 

 

 

 SOHU.COM Announces Signing of Non-Binding Term Sheet 

for Strategic Investment in Sogou Search Business 

BEIJING, CHINA, August 9, 2010 – Sohu.com Inc. (NASDAQ: SOHU), China’s leading online media, communications, search,
online games and wireless value-added services group, today announced that it has entered into a preliminary, non-binding term sheet for the possible sale to strategic investors, including Alibaba
Group1 and Yunfeng Fund
L.P.2 (collectively referred to as “Ali”), of a
minority interest of preferred shares in Sohu’s Sogou online search business. The non-binding term sheet also contemplates that certain members of Sohu’s executive management, including Dr. Charles Zhang, Sohu’s Chairman and
Chief Executive Officer, will participate in the transaction as investors. If the proposed transaction is completed, Sogou will use the net proceeds from investors to further develop its business. 

Proposed terms would involve issuing Sogou shares to Ali and Dr. Charles Zhang’s investment fund, representing approximately 16 percent,
respectively, of Sogou on a fully-diluted basis. Sohu would then maintain 68 percent of Sogou. The amount of the proposed investment and pricing were not announced. Sohu and Sogou would also establish a share incentive program for Sogou management
and key employees as well as certain members of Sohu’s executive management. The non-binding term sheet is subject, among other things, to the proposed strategic investors’ satisfactory completion of due diligence and the parties’
negotiation, preparation, and execution of definitive investment documentation. Key pricing and other terms also are subject to approval by Sohu’s audit committee, which is composed solely of independent directors. Sohu’s audit committee
and full board, with Dr. Charles Zhang abstaining, have given preliminary approval to the proposed transaction, subject to the completion and review of a third-party appraisal of the Sogou search business. 

There can be no assurance that definitive investment documents will be entered into by the parties, or that the proposed transaction will be completed.

  
  

	1
	 Alibaba Group is a family of Internet-based businesses that includes business-to-business international trade, online retail and payment platforms and
data-centric cloud computing services. 

	2
	 A venture capital fund, started by Mr. Jack Ma and Mr. Feng Yu. 

 

 4 

 Safe Harbor Statement 

This announcement may contain forward-looking statements. Statements that are not historical facts, including statements about Sohu’s beliefs and
expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We
caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, the risk that the proposed
investment transaction, which is non-binding on the parties, will be abandoned by the parties and never completed. 
 About Sohu.com 

 Sohu.com Inc. (NASDAQ: SOHU) is China’s premier online brand and indispensable to the daily life of millions of Chinese, providing a
network of web properties and community based/web 2.0 products which offer the vast Sohu user community a broad array of choices regarding information, entertainment and communication. Sohu has built one of the most comprehensive matrices of Chinese
language web properties and proprietary search engines, consisting of the mass portal and leading online media destination www.sohu.com; interactive search engine www.sogou.com; #1 games information portal www.17173.com; the top real estate website
www.focus.cn; #1 online alumni club www.chinaren.com; wireless value-added services provider www.goodfeel.com.cn; leading online mapping service provider www.go2map.com; and developer and operator of online games www.changyou.com. 

Sohu corporate services consist of brand advertising on its matrix of websites as well as paid listing and bid listing on its in-house developed search
directory and engine. Sohu also offers wireless value-added services such as news, information, music, ringtone and picture content sent over mobile phones. The Company’s massively multiplayer online role-playing game (MMORPG) subsidiary,
Changyou.com (NASDAQ: CYOU), currently operates five online games, including the in-house developed Tian Long Ba Bu, one of the most popular online games in China, and the licensed Blade Online, Blade Hero 2, Da Hua Shui Hu and Zhong Hua Ying Xiong.
Sohu.com, established by Dr. Charles Zhang, one of China’s internet pioneers, is in its fourteenth year of operation. 
 For
investor and media inquiries, please contact: 
 In China: 

Ms. Li Mei 
 Sohu.com Inc. 

Tel: +86 (10) 6272-6596 
 E-mail:
ir@contact.sohu.com 
  

 5 

 Mr. Chen Yuan Yuan 

Christensen 
 Tel: +86 (10) 5971-2001

 E-mail: ychen@ChristensenIR.com 

In the United States: 
 Mr. Jeff
Bloker 
 Christensen 
 Tel: +1
(480) 614-3003 
 E-mail: jbloker@ChristensenIR.com 
  

 6Form of Letter Agreement dated June 29, 2010

 Exhibit 10.1 

FORM OF LETTER AGREEMENT 

            , 2010 

HAND DELIVERED 
 [Officer Name]

 Dear [Officer Name]: 
 Fifth Third
Bancorp (the “Company”) is a participant the Capital Purchase Program (“CPP”) established by the United States Department of Treasury (“Treasury”) under its Troubled Asset Relief Program (“TARP”) pursuant to
the Emergency Economic Stabilization Act of 2008 (“EESA”). 
 For the Company to participate in the CPP in December 2008, the Company
was required to establish specified standards for incentive compensation to its Senior Executive Officers and to make changes to its compensation arrangements to comply with EESA and, pursuant to those changes, entered into a letter agreement with
you (“Prior Agreement”). This letter supersedes and replaces the Prior Agreement between you and the Company. 
 The American Recovery
and Reinvestment Act of 2009 (the “ARRA”) amended and replaced the executive compensation provisions of EESA in their entirety and directed the Secretary of the Treasury to establish executive compensation and corporate governance
standards applicable to TARP Recipients, including the Company, and makes these standards applicable to both Senior Executive Officers and certain Most Highly-Compensated Employees. On June 15, 2009, the Secretary of the Treasury established
these standards by promulgating an Interim Final Rule under 31 C.F.R. Part 30 (the “Interim Final Rule”). The EESA executive compensation standards, as amended and replaced by the ARRA, and the Interim Final Rule are collectively referred
to as the “TARP Compensation Standards”. 
 Among other things, the TARP Compensation Standards: 

 

	(1)	prohibit the Company from paying any Golden Parachute Payment to any Senior Executive Officer or any of the five next Most Highly-Compensated Employees during the TARP
Period; 

  

	(2)	prohibit the Company from paying or accruing any Bonus Payment during the TARP Period to any Senior Executive Officer or any of the twenty (20) next Most
Highly-Compensated Employees of the Company; 

  

	(3)	require the Company to recover or “clawback” any Bonus Payment paid or accrued during the TARP Period to any Senior Executive Officer or any of the twenty
(20) next Most Highly-Compensated Employees of the Company, including, without limitation, any amounts paid under the Fifth Third Bancorp Variable Compensation Plan, if the payments were based on materially inaccurate financial statements or
any other materially inaccurate performance metric criteria; 

  

	(4)	prohibit the Company from providing Gross-Ups to its Senior Executive Officer or the twenty (20) next Most Highly-Compensated Employees; and

  

	(5)	prohibit the Company from maintaining any Senior Executive Officer Compensation Plan or any Employee Compensation Plan that would encourage excessive risk or
manipulation of earnings. 

 This letter sets forth the agreement between the Company and you as to the amendment of the
compensation plans or arrangements in which you participate, are eligible to participate or may become eligible to participate, and the agreements to which the Company and you are party that: (i) provide for payment of a Bonus or Incentive
Compensation; (ii) provide a Golden Parachute Payment; and (iii) provide other Compensation or benefits the payment or accrual of which by the Company are restricted by the TARP Compensation Standards (“Benefit Plans”). In
consideration of the benefits you received and will receive as a result of the Company’s participation in TARP, you agree to consent to such modifications or 

 
amendments to each of the Company’s Benefit Plans to the extent necessary to comply with the TARP Compensation Standards. The requirements of this letter shall apply to you for so long you
are a Senior Executive Officer or a Most Highly-Compensated Employee during the TARP Period. 
 This letter shall be interpreted as follows:

  

	 	•	 	 Capitalized terms not defined herein shall have the meanings ascribed to them in the Interim Final Rule and shall be interpreted and construed
consistent with such Interim Final Rule. 

  

	 	•	 	 The term “Company” includes any entities treated as a single employer with the Company under 31 C.F.R. § 30.2.

  

	 	•	 	 The determination of whether you are or remain a Senior Executive Officer or a Most Highly-Compensated Employee shall be made pursuant to 31 C.F.R.
§ 30.3. 

  

	 	•	 	 Provisions of this letter are intended to, and will be interpreted, administered and construed to, comply with Section 111 of EESA and the TARP
Compensation Standards (and, to the maximum extent consistent with the preceding, to permit operation of the Benefit Plans in accordance with their terms before giving effect to this letter). The Interim Rule is subject to revision by Treasury. This
letter agreement shall be amended as may be necessary to fully comply with the TARP Compensation Standards and any further interpretations thereunder as well as any amendments to existing applicable law or regulation or any new law or regulation.

 To the extent not subject to federal law, this letter will be governed by and construed in accordance with the laws of the
State of Ohio without regard the provisions thereof that would apply the law of any other State. This letter may be executed in two or more counterparts, each of which will be deemed to be an original. A signature transmitted by facsimile shall be
deemed an original signature. 
 The Company appreciates the concessions you are making and looks forward to your continued leadership during
these financially turbulent times. 
  

			
	 FIFTH THIRD BANCORP

		
	By:	 	  

	Name:	 	Teresa J. Tanner
	Title:	 	Executive Vice President &
		 	Chief Human Resources Officer

  

			
	I acknowledge and accept the foregoing terms
	and intend to be legally bound by the same.
	
	  

	[Officer Name]
		
	Date:

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