Document:

Exhibit 10.57.1

 

Confidential
Materials omitted and filed separately with the Securities and Exchange
Commission. Asterisks denote omissions.

 

Supplementary
Agreement to Agreement No VT-23/0106 dated January 30, 2006.

 

	
  Moscow

  	
  December 26, 2007

  

 

CTC Media, Inc., hereinafter
referred to as “CTC”, represented by its
President and Chief Executive Officer Mr. A.E. Rodnyansky, acting pursuant
to the resolution of the Board of Directors of 02.08.04 and Chief Operating
Officer V.S. Khanumyan, acting pursuant to the power of attorney No 99NP of September 21,
2004, as a first party,

 

Closed Joint Stock Company “Video
International “Trend” (OGRN 1027700294071 of October 9, 2002),
hereinafter referred to as the “Agency”,
represented by its Deputy General Director for Sales and Regional Network
Development Ms. T.A. Vavilova, acting pursuant to the power of attorney of
April 5, 2007, as a second party,

 

and Closed Joint
Stock Company “Video International Group of Companies”, hereinafter referred to as the “Company”, represented by its General Director Mr. S.A.
Vasiliev, acting pursuant to the Charter, as a third party,

 

hereinafter referred to as
the “Parties”, executed this Supplementary
Agreement to Agreement No VT-23/0106 dated January 30, 2006 (hereinafter
referred to as the “Agreement”) as
follows:

 

1. The Parties agree that, provided the exclusivity
condition is satisfied as set forth in the Agreement, and also subject to the
provisions as to the amounts of Regional Advertising time to be made available
on the TV Channels launched by the Broadcasters, the Agency/Agency Companies
shall make every effort to sell the Regional Advertising time of the
Broadcasters, listed in section 2, such that the Actual Gross Revenues
(inclusive of the fee of the Agency/Agency Companies at a rate set forth in
section 7 of the Agreement), received by the Broadcasters from the sale of the
regional advertising on the TV Channels during the period of January 1,
2008 through December 31, 2008 and calculated for the calendar year in
accordance with the methodology adopted by the Parties is at least RUR [**], inclusive of VAT calculated at the rate established
under the Russian laws then in effect.

 

2.                                      In connection
with the above the Parties also agreed on the following distribution of the
gross sales revenues (inclusive of the fee of the Agency/Agency Companies at a
rate set forth in section 7 of the Agreement) of the Broadcasters regional
advertising on the TV Channels during the period of January 1, 2008
through December 31, 2008.

 

1

 

Distribution
of Base Revenue Amounts Among Broadcaster Companies in 2008

 

	
  Item

  	
   

  	
  City/TV Channel

  	
   

  	
  Broadcasting Company

  	
   

  	
  TV Channel Sales

  Revenues (VAT

  inclusive), inclusive

  Agency’s/Agency

  Companies’ Fees

  
	
  1

  	
   

  	
  Moscow / CTC

  	
   

  	
  OOO “Marathon-TV”

  	
   

  	
  [**]

  
	
  2

  	
   

  	
  Moscow / Domashny

  	
   

  	
  OAO “Teleexpress”

  	
   

  	
  [**]

  
	
  3

  	
   

  	
  St.- Petersburg / CTC

  	
   

  	
  ZAO “Telecompany “Channel 6”

  	
   

  	
  [**]

  
	
  4

  	
   

  	
  St.- Petersburg / Domashny

  	
   

  	
  ZAO “Nevsky channel”

  	
   

  	
  [**]

  
	
  5

  	
   

  	
  Kazan / CTC

  	
   

  	
  ZAO “Channel 6”

  	
   

  	
  [**]

  
	
  6

  	
   

  	
  Kazan / Domashny

  	
   

  	
  ZAO “Variant”

  	
   

  	
  [**]

  
	
  7

  	
   

  	
  Samara / CTC

  	
   

  	
  ZAO “Radio-Volga-TV”

  	
   

  	
  [**]

  
	
  8

  	
   

  	
  Samara / Domashny

  	
   

  	
  ZAO “Orion TV”

  	
   

  	
  [**]

  
	
  9

  	
   

  	
  Nizhniy Novgorod / CTC

  	
   

  	
  OOO “NTK”

  	
   

  	
  [**]

  
	
  10

  	
   

  	
  Omsk / CTC

  	
   

  	
  ZAO “Zodiac”

  	
   

  	
  [**]

  
	
  11

  	
   

  	
  Rostov – on – Don / Domashny*

  	
   

  	
  OOO “YuRkH”

  	
   

  	
  [**]

  
	
  12

  	
   

  	
  Rostov – on – Don / CTC

  	
   

  	
  OOO “Programma, Service, Montazh”

  	
   

  	
  [**]

  
	
  13

  	
   

  	
  Vladivostok / CTC

  	
   

  	
  OOO “CTC-Voskhod”

  	
   

  	
  [**]

  
	
  14

  	
   

  	
  Vladivostok / CTC

  	
   

  	
  OOO “Kontinent-50”

  	
   

  	
  [**]

  
	
  15

  	
   

  	
  Perm / CTC

  	
   

  	
  ZAO “TV-Maxima”

  	
   

  	
  [**]

  
	
  16

  	
   

  	
  Perm / Domashny

  	
   

  	
  OOO “Telecompaniay “T-8”

  	
   

  	
  [**]

  
	
  17

  	
   

  	
  Volgograd / CTC

  	
   

  	
  OOO “CTC-Volgograd”

  	
   

  	
  [**]

  
	
  18

  	
   

  	
  Voronezh / CTC

  	
   

  	
  OOO “VTK”

  	
   

  	
  [**]

  
	
  19

  	
   

  	
  Voronezh /Domashny*

  	
   

  	
  OOO “PKF “Radiosvyaz”

  	
   

  	
  [**]

  
	
  20

  	
   

  	
  Tver / CTC

  	
   

  	
  ZAO “TRK “Guberniya”

  	
   

  	
  [**]

  
	
  21

  	
   

  	
  Ufa / CTC

  	
   

  	
  OOO “CTC-Ufa”

  	
   

  	
  [**]

  
	
  22

  	
   

  	
  Barnaul / CTC

  	
   

  	
  OOO “Vega TV”

  	
   

  	
  [**]

  
	
  23

  	
   

  	
  Barnaul /Domashny

  	
   

  	
  OOO “Vecher”

  	
   

  	
  [**]

  
	
  24

  	
   

  	
  Novosibirsk / CTC

  	
   

  	
  OOO “Television station “Mir”

  	
   

  	
  [**]

  
	
  25

  	
   

  	
  Kemerovo / Domashny

  	
   

  	
  OOO “TVTz-Tom”

  	
   

  	
  [**]

  
	
  26

  	
   

  	
  Stavropol/ Domashny*

  	
   

  	
   

  	
   

  	
  [**]

  
	
  27

  	
   

  	
  Ekaterinburg/CTC

  	
   

  	
  ZAO “Regionalnaya telekommpaniya”

  	
   

  	
  [**]

  
	
  28

  	
   

  	
  Irkutsk/CTC

  	
   

  	
  OOO “Irkutsk-CTC”

  	
   

  	
  [**]

  
	
  29

  	
   

  	
  Irkutsk/Domashny

  	
   

  	
  OOO “Irkutsk-TV”

  	
   

  	
  [**]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TOTAL

  	
   

  	
   

  	
   

  	
  [**]

  

 

* By their agreement the Parties approved the
wording of the Agency Agreement (attached hereto as Exhibit 1), which is
recommended to the said Broadcasters to be entered into with the Agency and
which will grant to the latter right till December 31, 2010 to contract on
exclusive basis 

 

2

 

outside the territory defined in the respective
agreements the placement of third party advertising in the regional broadcasts
of the TV Channels’ Broadcasters (hereinafter the “regional advertising”). The
Parties agree that the changes to the agreed wording will only be possible
subject to the consent of the Parties to this Supplementary Agreement.

 

3.                                       The Parties further agree that effective January 21,
2008 the terms of settlements between the Broadcasters and the Agency Companies
will change as follows:

 

The
payments in Russian Rubles under Client Agreements shall be made to the Agency’s
current account.

 

The
Agency shall be required to transfer the amounts received under such Client
Agreements in full to the respective Broadcaster within five banking days.

 

The Broadcaster shall be required no later than the
day immediately following the date of receipt of the funds to its current
account to remit to the Agency’s bank account the amount equal to 15% (Fifteeen
Percent) of the funds received in payment of the Agency Fee.

 

All arrangements relating to the settlements between
the Broadcasters and the Agency Companies shall be set forth in the
agreements/supplementary agreements to the contracts between the Broadcasters
and the Agency Companies in the form agreed by the Parties hereto.

 

4.                                      The Parties agree
that effective January 1, 2008 the time to be allocated for the regional
advertising and made available to the Agency/Agency Companies for placement of
regional advertising under Client Agreements in the Network Program Blocks and
Regional Broadcast Windows shall be equal to:

 

·                  for CTC Channel Broadcasters -  3.75% (Three and Seventy Five Hundredths
percent) of the length of the respective Network Program Block (in accordance
with the provisions of the “network affiliation” agreement) during each
astronomical hour (excluding the length of the Regional Window) plus all
advertising time in the Regional Broadcast Windows (in accordance with the
Broadcaster’s programming schedule) permitted under applicable law, except as
provided otherwise in the contracts between the Broadcaster and the
Agency/Agency Companies;

 

·                  for Domashny Broadcasters - 4.58% (Four and Fifty
Eight Hundredth percent) of the length of the Domashny Network Program
Block  (in accordance with the provisions
of the “network affiliation” agreement, made with a particular Broadcaster for
broadcasting Domashny TV Channel programming) during each astronomical hour
(excluding the length of the Regional Window) plus all advertising time in the
Regional Broadcast Windows (in 

 

3

 

accordance with the
Broadcaster’s programming schedule) permitted under applicable law, except as
provided otherwise in the contracts between the Broadcaster and the
Agency/Agency Companies.

 

5.                                      In
all other matters not covered by and not inconsistent with this Supplementary
Agreement the Parties shall be governed by the provisions of the Agreement.

 

6.                                      This
Supplementary Agreement shall come into effect upon signing by the authorized
representative of the Parties .

 

6.                                      This
Supplementary Agreement is executed in three counterparts with one for each
Party.

 

SIGNATURES OF THE PARTIES

 

 

	
  On behalf of CTC

  	
   

  	
  On behalf of the Company

  	
   

  
	
  /s/ A.E.
  Rodnyansky

  	
   

  	
  /s/ S.A.
  Vasiliev

  	
   

  
	
  (A.E.
  Rodnyansky) seal here 

  	
  (S.A.
  Vasiliev) seal here

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ V.S.
  Khanumyan

  	
   

  	
   

  
	
  (V.S.
  Khanumyan)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  On behalf of the Agency

  	
   

  
	
   

  	
  /s/
  T.A. Vavilova

  	
   

  
	
   

  	
  (T.A.
  Vavilova) seal here

  

 

4Exhibit 10.58.1

 

APPENDIX 1

to Agency Agreement No C-25-400/07 dated July 11, 2007
(hereinafter the “Agency Agreement”)

 

	
   

  	
  Moscow

  	
  December 20,
  2007

  

 

Closed Joint Stock Company “Network of Television
Stations” (OGRN 1027700151852),
hereinafter referred to as the “Principal”,
represented by its General Director A.E. Rodnyansky, acting pursuant to the
Charter on one side, and Closed Joint Stock
Company “Kompaniya TSV” (OGRN 5077746859757), hereinafter referred
to as the “Agent”, represented by
the General Director S.A.
Vasiliev, acting pursuant to the Charter, on the other side, hereinafter
referred to as the “Parties”, executed this Appendix 1 (“Appendix”) to the
Agency Agreement as follows.

 

The
Parties agree on the principal factors to be considered in determining the
price in connection with the placement of Advertising within the Network
Program Blocks when contracting by the Agent with the Clients.

 

1.             Whenever the Agent contracts the
placement of Advertising it shall be guided by the combination of technical,
sociological and economic factors that define the conditions required for the
provision of advertising services in that particular transaction.  The initial reference basis for pricing the
services to be provided in that particular transaction shall be determined by
the Agent in consultations with the Client at the time of developing the media
strategy and shall comprise the data on timing and geographical region for a
particular advertising campaign, the Client’s overall advertising budget,
target audience of advertising or publicity materials, information on the
Client competitors’ market and any other details required for structuring a
particular advertising campaign.

 

2.             The Parties agree that the pricing
of services in a particular transaction shall be based on a
multi-factor/multi-functional approach and shall take into account the lack of
a universal unit measure, by applying which the quantitative assessment of the
services would be possible.

 

The
price (amount) of the agreement shall be such that the willing Parties agree
based on the market prices for the services that exist at the time of the
transaction in a particular region as a result of the interplay of supply and
demand as well as other conditions and considerations that have relevance for
the transaction.

 

3.             When entering into an agreement
with a Client and pricing the services, the Agent shall take into consideration
the following factors:

 

3.1.          Demand
for media advertising services in the market.

 

3.1.1        Macroeconomic
factors:

 

·                  Purchasing power

·                  Per capita income growth

·                  Consumer basket/consumer price index for target groups.

 

a)             expert
assessments of the market maturity for certain industries/manufacturing sectors
(monopoly, polypoly sectors, etc.) and the need for marketing and advertising
support of sales;

 

b)            expert
assessments of the advertiser’s expenditures (budgets) for marketing and medial
advertising services, including on television, in the past, current and future
periods;

 

c)             number
of market (market sector) players and their media activity.

 

3.2           Broadcast
advertising offering

 

3.2.1        The
Principal’s programming policy.

 

3.2.2        Alternative
programming broadcasted simultaneously with the Network Program Blocks on other
TV channels;

 

3.2.3        Changes
in the technical capabilities of the Principal;

·                  Extended reach with better signal;

·                  Extended reach with more powerful transmitters;

·                  Potential new station additions to CTC Network;

·                  Licenses obtained for new frequencies.

3.2.4        Best
advertising length based on TV viewership patterns;

 

3.2.5        The
actual and projected rating (by hour-long time slots, by each city and by
each target audience) of the programs and advertising blocks within the Network
Program Blocks as well as estimated total TV viewing audience.

 

Target Audience means all of the potential
television viewers with identical sociographic and psychographic
characteristics:

 

·                  sex;

·                  region or area of residence;

·                  income level;

·                  educational level;

·                  occupation;

·                  number of members in the household;

·                  children;

·                  religion;

·                  consumer habits and  behavior patterns.

 

The projected rating shall be determined based on
historic data available for the previous periods that are projected onto the
advertising placement period based on the planned line-up of the Network
Program Blocks as adjusted for seasonal fluctuations and other factors.

 

The data for the rating calculation shall be sourced
from the independent market research company.

 

The frequency with which such data is made available
shall be determined by the independent market research company.

 

3.3           Specific
conditions for a particular contract — the extent of the planned advertising
campaign.

 

3.4           Target
group for the advertising campaign — standard groups commonly used by the
Clients for assessing the anticipated efficiency:

 

·                  6 - 54  All

·                  11 -  25 All

·                  11 - 34 All

·                  11 -  34 All Moscow

·                  14 - 24  All

·                  18 - 35 Females

·                  18 - 35 All

·                  18 - 54 Females

·                  18 - 54 Males

·                  18  + All

·                  18  + All Moscow

 

 

 

·                  18  -  44 Females

·                  18  -  44 All

·                  20 - 39 All

·                  25  + Females

·                  6  + All

 

The figures designate age limits.

 

3.5           Planned
Reach of Advertising Campaign

 

Reach means a number of people within a target
group, who viewed the broadcast for at least one minute (thousand people).

 

3.6           Planned
Frequency

 

                Frequency
means average number of viewings of the monitored broadcasts by each TV viewer
within the selected target audience.

 

3.7
          Positioning

 

Positioning
means that certain advertising and publicity materials should be placed in the
opening, closing or other particular position within an advertising block.

 

3.8.
         Fixed placement

 

Fixed
placement means that certain advertising and publicity materials are to be
placed in particular programs or advertising blocks or on dates as are
designated by the Client.

 

3.9           Floating placement

 

Floating
placement means that certain advertising and publicity materials are to be
placed in programs and on dates selected independently of the Client based on
certain general requirements of the Advertising Order.

 

3.10         Seasonal
considerations for advertising campaign.

 

Seasonal variations in demand from the Clients
for placement of advertising and publicity materials within the Network Program
Blocks.

 

3.11
        Competitive requirements for
advertising campaign:

 

·                  Advertising and publicity materials placed by
the Client with the requirement not to have advertising of competing products
or producers within the same programs or advertising blocks.

 

·                  Advertising and publicity materials placed by
the Client with the requirement to have the Client’s advertising placed in
certain programs or advertising blocks together with the advertisements for
certain products or services.

 

3.12         Advertising
in the same commercial of the goods and/or services of several advertisers or
several advertised items.

 

3.13         Placement
of advertising inside the programs and in the inter-program advertising blocks.

 

3.14.        Placement of advertising within certain
time intervals (including prime time). 
Prime-time means an interrupted time intervals having the largest
viewership.

 

3.15.        The
terms of payment for the advertising campaign.

 

 

3.16.        Number
of business days to the first showing of advertising in the Network Program
Blocks.

 

3.17         Social
significance of the advertising — The significance of each particular
advertising campaign and its charity or other purposes of public value or
promotion of the national interests.

 

4.             The Agent shall be required to
follow the Principal’s pricing policy as currently approved or in place and the
Principal’s instruction to price each particular contract (transaction) for
advertising placement in the broadcast of the TV channels based on the above
factors, which have a substantial impact on the form of delivering the
advertising and on contractual price of the respective contract (transaction).

 

5.             This Appendix
shall come into effect simultaneously with and shall be an integral part of the
Agency Agreement.

 

6.
            This Appendix is made and
executed in two equally binding counterparts with one for each

 

Signatures of the Parties:

 

	
  Agent:

  	
  Principal:

  
	
   

  	
  /s/ S.A. Vasiliev

  	
   

  	
   

  	
  /s/ A.E. Rodnyansky

  	
   

  
	
   

  	
  (S.A. Vasiliev) seal
  here

  	
   

  	
   

  	
  (A.E. Rodnyansky) seal
  here

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