Document:

sni-ex1042_6.htm

 

Exhibit 10.42

MEMBERSHIP INTEREST PURCHASE AGREEMENT

THIS MEMBERSHIP INTEREST PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of this 25th day of February, 2016, by and among Cox TMI, Inc., a Delaware corporation (the “Seller”), Cox Communications, Inc., a Delaware corporation (“CCI” and, together with the Seller, the “Seller Parties”), Gulliver Media Holdings, LLC, a Delaware limited liability company (the “Purchaser”), Scripps Networks Interactive, Inc., an Ohio corporation (“SNI” and, together with the Purchaser, “Scripps”), and TCM Parent, LLC, a Delaware limited liability company (the “Company”). 

RECITALS

WHEREAS, the Seller and the Purchaser are the sole members of the Company, which is governed by that certain Amended and Restated Limited Liability Company Agreement of the Company dated as of December 8, 2009, as amended (the “Operating Agreement”). Capitalized terms used herein but not otherwise defined have the meanings ascribed to such terms in the Operating Agreement.

WHEREAS, the Seller’s Membership Interest constitutes 35% of the Membership Interests of the Members, and the Purchaser’s Membership Interest constitutes 65% of the Membership Interests of the Members.

WHEREAS, the Seller desires to sell all of the Seller’s Membership Interest (which constitutes 100% of the Seller Parties’ interest in the Company) to the Purchaser, and the Purchaser desires to purchase all of the Seller’s Membership Interest from the Seller, on the terms and conditions set forth in this Agreement (the “Purchase Transaction”).

NOW, THEREFORE, in consideration of the premises and the representations, warranties and agreements set forth below, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

ARTICLE I

SALE AND PURCHASE OF THE SELLER’S MEMBERSHIP INTEREST

Section 1.1 Purchase.  Subject to the terms and conditions of this Agreement, on February 25, 2016 or such date as the parties hereto may otherwise mutually agree in writing (in each case, the “Closing Date”), the Seller shall sell, assign, transfer, convey and deliver to the Purchaser free and clear of any lien, encumbrance, pledge, charge, security interest, mortgage, title retention agreement, option, equity or other adverse claim thereto (any of the foregoing being, “Liens”), and the Purchaser shall purchase, acquire and accept from the Seller, all of the Seller’s right, title and interest in and to the Seller’s Membership Interest and assume all obligations relating to events occurring after the Closing with respect to the Seller’s Membership Interest pursuant to the Operating Agreement.  The closing of the Purchase Transaction (the “Closing”) shall take place at the offices of Bass, Berry & Sims PLC, 150 Third Avenue South, Suite 2800, Nashville, Tennessee, at 10:00 a.m. Central Standard Time. The purchase price for the Seller’s Membership Interest shall be $99,000,000 (the “Purchase Price”).

Section 1.2 Closing Deliverables.  

(a) The Seller Parties shall deliver or cause to be delivered to the Purchaser:

(i) if so requested by the Purchaser prior to the Closing, at Closing, a certificate executed by a duly authorized officer of the Seller Parties certifying that each of the Seller Parties’ representations and warranties set forth in Article II is true, accurate and complete as of the Closing Date;

(ii) at Closing, an assignment, assumption, termination and acknowledgement agreement, substantially in the form attached hereto as Exhibit A (the “Assignment, Assumption, Guaranty Termination and Acknowledgement Agreement”), executed by a duly authorized officer of the Seller Parties, evidencing, among other things, (i) the transfer of the Seller’s entire Membership Interest to the Purchaser at the Closing, (ii) the termination of the Guaranty, dated as of January 15, 2015 (the “Guaranty”), by and between SNI and CCI and (iii) the continuation of the Tax Matters Agreement, dated as of December 15, 2009, by and among Scripps, the Seller Parties, Company, and TCM Sub, LLC (as amended, the “Tax Matters Agreement”) in full force and effect after the Closing as further described in Section 3 of the Assignment, Assumption, Guaranty Termination and Acknowledgement Agreement;

(iii) at Closing, a certification of non-foreign status of Seller, substantially in the form attached hereto as Exhibit B; 

 

(iv) at Closing, the resignation of each Member Representative designated by Seller, effective as of the Closing, substantially in the form attached hereto as Exhibit C (collectively, the “Representative Resignations”); and

(v) any other instructions, instruments, documents or agreements of conveyance or transfer necessary or desirable to transfer to and confirm in the Purchaser all right, title and interest in and to the Seller’s Membership Interest, as reasonably requested by the Purchaser. 

(b) Scripps shall deliver or cause to be delivered to the Seller: 

(i) at Closing, the Purchase Price in cash by wire transfer of immediately available funds in accordance with the wire transfer instructions provided by the Seller to the Purchaser prior to the Closing;

(ii) if so requested by the Seller prior to the Closing, at Closing, a certificate executed by a duly authorized officer of Scripps certifying that each of the Purchaser’s and SNI’s representations and warranties set forth in Article III is true, accurate and complete as of the Closing Date;

(iii) at Closing, the Assignment, Assumption, Guaranty Termination and Acknowledgement Agreement, executed by a duly authorized officer of the Purchaser, SNI and the Company;

(iv) at Closing, the Representative Resignations, executed by a duly authorized officer of the Company; and

(v) any other instructions, instruments, documents or agreements of assumption necessary or desirable to evidence the assumption by the Purchaser of the obligations relating to events occurring after the Closing with respect to the Seller’s Membership Interest pursuant to the Operating Agreement.

Section 1.3 Termination of Membership. Upon the consummation of the Purchase Transaction, the Seller shall immediately and automatically cease to be a Member and the Seller Parties shall have no further rights or obligations under the Operating Agreement (or any related agreement, other than the Tax Matters Agreement and the Distribution Agreements) or any further interest in or to the Company or the Company’s Subsidiaries (other than pursuant to the Distribution Agreements); except that, the confidentiality obligations in Section 13 of the Operating Agreement (as in effect as of the Closing) and the indemnification and exculpation rights under Section 6.11 of the Operating Agreement (as in effect as of the Closing) shall continue to apply to the parties hereto. For purposes of this Agreement, the “Distribution Agreements” shall mean any content, television programming service or network or channel distribution agreements between the Company (or any Affiliates of SNI) and CCI or any of its Affiliates, as the case may be, relating to the Company or any agreements for the purchase or sale of advertising on any content, television programming service, network or channel of the Company and its Subsidiaries.

Section 1.4 Condition to Closing.  Each party shall promptly notify the other parties in the event that it discovers that any of such party’s representations or warranties contained in Article II or III, as the case may be, is untrue, inaccurate or incomplete.  The parties’ obligations to consummate the Purchase Transaction shall be subject to the condition that each of the other parties’ representations and warranties set forth in Article II or III, as the case may be, is true, accurate and complete in all respects as of the Closing Date and the execution and delivery of all the documents to be delivered to such party as set forth in Section 1.2, as the case may be.  

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF THE SELLER PARTIES

The Seller Parties hereby make the following representations and warranties to the Purchaser, each of which is true and correct on the date hereof and the Closing Date and shall survive the Closing Date.  The Seller Parties jointly and severally agree to indemnify the Purchaser from and against any and all losses, claims, damages and liabilities for breach of the following representations and warranties.

Section 2.1 Existence and Power. 

(a) Each of the Seller Parties is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has the power, authority and capacity to execute and deliver this Agreement, to perform its obligations hereunder, and to consummate the transactions contemplated hereby.

(b) The execution and delivery of this Agreement by the Seller Parties and the consummation by the Seller Parties of the transactions contemplated hereby (i) do not require the consent, approval, authorization, order, registration or qualification of, or filing 

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with, any third party or any governmental authority or court, or body or arbitrator having jurisdiction over the Seller Parties; and (ii) do not and will not constitute or result in a breach, violation or default under any note, bond, mortgage, deed, indenture, lien, instrument, contract, agreement, lease or license, whether written or oral, express or implied, or with the Seller Parties’ certificates of incorporation or bylaws, or any statute, law, ordinance, decree, order, injunction, rule, directive, judgment or regulation of any court, administrative or regulatory body, governmental authority, arbitrator, mediator or similar body on the part of the Seller Parties or on the part of any other party thereto or cause the acceleration or termination of any obligation or right of the Seller Parties or any other party thereto.

Section 2.2 Valid and Enforceable Agreement; Authorization. This Agreement has been duly executed and delivered by each of the Seller Parties and constitutes a legal, valid and binding obligation of each of the Seller Parties, enforceable against each of the Seller Parties in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws of general application affecting enforcement of creditors’ rights generally and general principles of equity.  

Section 2.3 Title to Seller’s Membership Interest.  Seller’s Membership Interest constitutes all of Seller’s interests in the Company or the Company’s Subsidiaries, whether classified as a debt, equity, profit or participation interest or otherwise (but excluding the Distribution Agreements). The Seller is the sole legal and beneficial owner of and has good and valid title to the Seller’s Membership Interest free and clear of any Liens, and has not, in whole or in part, (a) assigned, transferred, hypothecated, pledged or otherwise disposed of the Seller’s Membership Interest or its rights in the Seller’s Membership Interest, or (b) given any person or entity any transfer order, power of attorney or other authority of any nature whatsoever with respect to the Seller’s Membership Interest. Other than this Agreement and the Operating Agreement, the Seller’s Membership Interest is not subject to any voting trust agreement or other contract restricting or otherwise relating to the voting, dividend rights or (other than pursuant to applicable securities laws) disposition of the Seller’s Membership Interest. Except pursuant to the Distribution Agreements (if applicable), the Company is not currently indebted to the Seller or any of its Affiliates for any amount, and there are no evidences of indebtedness of the Company held directly or indirectly by the Seller or any of its Subsidiaries.

Section 2.4 Distributions.  The Seller has received all distributions and reimbursements to which it has been entitled to receive through the date hereof in its capacity as a Member of the Company. The Seller acknowledges and agrees that, from and after the date hereof, the Seller shall not be entitled to receive any further distributions in its capacity as a Member of the Company. 

Section 2.5 Sophistication of Seller Parties.  The Seller Parties acknowledge and agree that, except as set forth in Article III of this Agreement, the Purchaser is not making, and the Seller Parties hereby disclaim, any express or implied warranties in connection with the Purchase Transaction.  The Seller Parties have such knowledge and experience in financial and business matters and in making investment decisions of this type that they are capable of evaluating the merits and risks of making their investment decision regarding the Purchase Transaction and of making an informed investment decision.  The Seller Parties and/or the Seller Parties’ advisor(s) have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Purchaser concerning the Seller’s Membership Interest and the Company and all such questions have been answered to the Seller Parties’ full satisfaction.  The Seller Parties are not relying upon the Purchaser to determine information that the Seller Parties should review, and the Seller Parties acknowledge and agree that the Purchaser is not acting in a fiduciary capacity and does not owe any fiduciary duty to the Seller Parties in connection with this Agreement or the consummation of the Purchase Transaction. The Seller Parties are not relying on the Company or the Purchaser with respect to the tax and other economic considerations of the Purchase Transaction, and the Seller Parties have relied on the advice of, or have consulted with, the Seller Parties’ own advisors.

Section 2.6 No Broker.  Neither the Seller Parties nor any Person acting on the Seller Parties’ behalf has engaged any third party as broker or finder or incurred or become obligated to pay any broker’s commission or finder’s fee in connection with the transactions contemplated by this Agreement.  

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

The Purchaser (and, for purpose of Section 3.1 and 3.2, SNI) hereby makes the following representations and warranties to the Seller Parties, each of which is true and correct on the date hereof and the Closing Date and shall survive the Closing Date.

Section 3.1 Existence and Power.  

(a) The Purchaser is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware, and SNI is corporation duly incorporated, validly existing and in good standing under the laws of the State of Ohio, and each of Purchaser and SNI has the power, authority and capacity to execute and deliver this Agreement, to perform the Purchaser’s obligations hereunder, and to consummate the transactions contemplated hereby.

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(b) The execution and delivery of this Agreement by the Purchaser and the consummation by the Purchaser of the transactions contemplated hereby (i) does not require the consent, approval, authorization, order, registration or qualification of, or filing with, any third parties or any governmental authority or court, or body or arbitrator having jurisdiction over the Purchaser; and (ii) does not and will not constitute or result in a breach, violation or default under any note, bond, mortgage, deed, indenture, lien, instrument, contract, agreement, lease or license, whether written or oral, express or implied, or with the Purchaser’s certificate of formation or limited liability company agreement, or any statute, law, ordinance, decree, order, injunction, rule, directive, judgment or regulation of any court, administrative or regulatory body, governmental authority, arbitrator, mediator or similar body on the part of the Purchaser or on the part of any other party thereto or cause the acceleration or termination of any obligation or right of the Purchaser or any other party thereto.

Section 3.2 Valid and Enforceable Agreement; Authorization.  This Agreement has been duly executed and delivered by Scripps and constitutes a legal, valid and binding obligation of Scripps, enforceable against Scripps in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws of general application affecting enforcement of creditors’ rights generally and general principles of equity.

Section 3.3 Sophistication of Purchaser.  The Purchaser acknowledges and agrees that, except as set forth in Article II of this Agreement, the Seller Parties are not making, and the Purchaser hereby disclaims, any express or implied warranties in connection with the Purchase Transaction.  Purchaser has such knowledge and experience in financial and business matters and in making investment decisions of this type that it is capable of evaluating the merits and risks of making its investment decision regarding the Purchase Transaction and of making an informed investment decision.  Purchaser and its advisor(s) have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Seller Parties concerning the Seller’s Membership Interest and all such questions have been answered to Purchaser’s full satisfaction.  Purchaser is not relying upon the Seller Parties to determine information that it should review, and Purchaser acknowledges and agrees that the Seller Parties are not acting in a fiduciary capacity and do not owe any fiduciary duty to Purchaser in connection with this Agreement or the consummation of the Purchase Transaction. Purchaser is not relying on the Seller Parties with respect to the tax and other economic considerations of the Purchase Transaction, and Purchaser has relied on the advice of, or has consulted with, the its own advisors.

Section 3.4 No Broker. Neither the Purchaser nor any Person acting on the Purchaser’s behalf has engaged any third party as broker or finder or incurred or become obligated to pay any broker’s commission or finder’s fee in connection with the transactions contemplated by this Agreement.  

ARTICLE IV

MISCELLANEOUS PROVISIONS

Section 4.1 Notice.  Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, or mailed first class mail (postage prepaid) with return receipt requested or sent by reputable overnight courier service (charges prepaid) to the address and to the attention of the person set forth in this Agreement. Notices will be deemed to have been given hereunder when delivered as evidenced by the records of the Person, mail service or overnight courier service making such delivery as set forth herein.

If delivered to the Purchaser, to:

Gulliver Media Holdings, LLC

c/o Scripps Networks Interactive, Inc.

9721 Sherrill Boulevard

Knoxville, TN 37932

Attention:   Cynthia Gibson, Executive Vice President, Chief Legal Officer

if to the Seller Parties, to:

Cox Communications, Inc.

Cox TMI, Inc.

6205-B Peachtree Dunwoody Road

Atlanta, GA 30328

Attention: Jennifer Hightower, Esq. 

Section 4.2 Entire Agreement.  This Agreement and the other documents and agreements executed in connection with the Purchase Transaction embody the entire agreement and understanding of the parties hereto with respect to the subject matter hereof 

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and supersede all prior and contemporaneous oral or written agreements, representations, warranties, contracts, correspondence, conversations, memoranda and understandings between or among the parties or any of their agents, representatives or affiliates relative to such subject matter, including, without limitation, any term sheets, emails or draft documents.

Section 4.3 Assignment; Binding Agreement.  This Agreement and the various rights and obligations arising hereunder shall not be assignable or transferrable by either party without the prior written consent of the other party; provided, however, that the Purchaser may assign its right to purchase the Seller’s Membership Interest to one or more controlled Affiliates of SNI in compliance with the Operating Agreement, but no such assignment shall relieve the Purchaser of any of its obligations hereunder. 

Section 4.4 Counterparts.  This Agreement may be executed in multiple counterparts, and on separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. Any counterpart or other signature hereupon delivered by facsimile shall be deemed for all purposes as constituting good and valid execution and delivery of this Agreement by such party. Facsimile signatures or signature received as a pdf attachment to electronic mail shall be treated as original signatures for all purposes hereunder.

Section 4.5 Governing Law.  This Agreement shall in all respects be construed in accordance with and governed by the substantive laws of the State of Delaware, without giving effect to principles of conflicts of laws.

Section 4.6 No Third Party Beneficiaries or Other Rights.  Except as provided in Sections 4.7 and 4.8, nothing herein shall grant to or create in any person not a party hereto, or any such person’s dependents or heirs, any right to any benefits hereunder, and no such party shall be entitled to sue any party to this Agreement with respect thereto. 

Section 4.7 General Release.  

(a) The Seller Parties do hereby release, waive and forever discharge Scripps, their Subsidiaries and their Affiliates (including the Company, its Subsidiaries and its Affiliates) and each of their successors, and all of the directors, officers, employees and agents of Scripps, their Subsidiaries and their Affiliates (including the Company and its Subsidiaries), and agree to hold them, and each of them, harmless from any and all claims or causes of action (“Claims”) that the Seller Parties may now have or know about, or hereafter may learn about, to the extent arising out of or in any way connected to the valuation of Seller’s Membership Interest or the Purchase Price, to Seller’s Membership Interest  or Seller’s status as a Member or Seller’s rights and obligations under the Operating Agreement or the Guaranty, or otherwise arising out of or in any way related, in whole or in part, to the Company’s business, operations, cash distributions or governance (such Claims, the “Seller Parties’ Claims”).  The Seller Parties agree that the Seller Parties will not file any claim, charge, or lawsuit for the purpose of obtaining any monetary awards in connection with any such Seller Parties’ Claims.  The Seller Parties acknowledge that the foregoing release includes, but is not limited to, any claim arising under any federal, state, or local law, whether statutory or judicial, or ordinance, or any administrative regulation.  Notwithstanding the foregoing, nothing in this Section 4.7 shall release, waive or discharge Scripps from (A) any Claims either Seller Party has or may have arising from or relating to this Agreement, the Tax Matters Agreement, the Assignment, Assumption, Guaranty Termination and Acknowledgment Agreement or the Distribution Agreements, or (B) any indemnification obligations owed by the Company to Seller’s Member Representatives as set forth in the Operating Agreement, or (C) any Claims any Seller Party or any of their Affiliates has or may have, other than the Seller Parties’ Claims.

(b) Each of Scripps and the Company and their respective Affiliates does hereby release, waive and forever discharge the Seller Parties and their Affiliates and each of their respective successors, and all of the directors, officers, employees and agents of the Seller Parties and their  Affiliates, and agrees to hold them, and each of them, harmless from any and all Claims that Scripps and the Company  may now have or know about, or hereafter may learn about, to the extent arising out of or in any way connected to Seller’s Membership Interest or Seller’s status as a Member or Seller’s, the Purchaser’s and the Company’s rights and obligations under the Operating Agreement or the Guaranty, or otherwise arising out of or in any way related, in whole or in part, to the Company’s business, operations, cash distributions or governance (such Claims, the “Purchaser Claims”).  Each of Scripps and the Company agrees that it will not file any claim, charge, or lawsuit for the purpose of obtaining any monetary awards in connection with any Purchaser Claims.  Each of Scripps and the Company acknowledges that the foregoing release includes, but is not limited to, any claim arising under any federal, state, or local law, whether statutory or judicial, or ordinance, or any administrative regulation.  Notwithstanding the foregoing, nothing in this Section 4.7 shall release, waive or discharge the Seller Parties from any Claim the Company, Purchaser or SNI has or may have arising from or relating to this Agreement, the Tax Matters Agreement or the Distribution Agreements, or any Claims that the Company, Scripps or any of their Affiliates has or may have, other than the Purchaser Claims.

Section 4.8 Confidentiality.  The parties shall not disclose to any Person or make any announcement, press release or other public statement relating in any manner to this Agreement or any of the terms hereof, except (a) with mutual written consent, (b) as required by applicable law, in which case such party shall, to the extent permitted and practicable, allow the other party a reasonable 

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time to review and comment on the form and substance of the information to be disclosed or released, (c) SNI, or its Affiliates, may disclose the Purchase Transaction (and its financial impact) and the Purchase Price in its securities law filings and other periodic reports with the Securities and Exchange Commission, or (d) to a party’s and its Affiliates’ legal, financial and accounting advisors on a need-to-know basis, provided that the Person receiving such information is advised of the confidential nature of such information and agrees to keep such information confidential or is subject to a legal or ethical duty of confidentiality. 

Section 4.9 Waiver; Consent.  This Agreement and its terms may not be changed, amended, waived, terminated, augmented, rescinded or discharged (other than in accordance with its terms), in whole or in part, except by a writing executed by the parties hereto. 

Section 4.10 Survival.  The parties’ representations, warranties and related covenants set forth in this Agreement shall survive the Closing for the applicable statute of limitations, except that the Seller Parties’ representations and warranties set forth in Section 2.3, and the Seller Parties’ covenants with respect thereto, shall survive the Closing indefinitely. All other covenants herein shall survive the Closing until fully performed.

Section 4.11 Further Assurances.  Each party hereto hereby agrees to execute and deliver, or cause to be executed and delivered, such other documents, instruments and agreements, and take such other actions, as either party may reasonably request in connection with the transactions contemplated by this Agreement.  Notwithstanding anything to the contrary contained herein, “Affiliate” when used with respect to any of the Seller Parties shall not include the Company and its Subsidiaries or SNI and its Subsidiaries, and “Affiliate” when used with respect to any of Scripps shall not include CCI or any of its Subsidiaries (other than the Company and its Subsidiaries).

Section 4.12 Costs and Expenses.  Each party hereto shall each pay their own respective costs and expenses, including, without limitation, any commission or finder’s fee to any broker or finder, incurred in connection with the negotiation, preparation, execution and performance of this Agreement.

Section 4.13 Severability.  If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby; provided that the parties shall negotiate in good faith with respect to an equitable modification of the provision or application thereof held to be invalid.

(Signatures appear on the next page.)

 

 

 

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IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed as of the date first above written.

 

	
THE COMPANY:

	
 

	
TCM PARENT, LLC

	
 

	
By:
	
 
	
 /s/ Lori A. Hickok

	
Name:
	
 
	
Lori A. Hickok

	
Title:
	
 
	
VP & Chief Financial Officer

	
 

	
SCRIPPS:

	
 

	
SCRIPPS NETWORKS INTERACTIVE, INC.

	
 

	
By:
	
 
	
/s/ Lori A. Hickok

	
Name:
	
 
	
Lori A. Hickok

	
Title:
	
 
	
EVP, Chief Financial Officer

	
 

	
GULLIVER MEDIA HOLDINGS, LLC

	
 

	
By:
	
 
	
/s/ Lori A. Hickok

	
Name:
	
 
	
Lori A. Hickok

	
Title:
	
 
	
Chief Financial Officer

	
 

	
THE SELLER PARTIES:

	
 

	
COX TMI, INC.

	
 

	
By:
	
 
	
/s/ Charles Bowen

	
Name:
	
 
	
Charles Bowen

	
Title:
	
 
	
Assistant Secretary

	
 

	
COX COMMUNICATIONS, INC.

	
 

	
By:
	
 
	
/s/ Charles Bowen

	
Name:
	
 
	
Charles Bowen

	
Title:
	
 
	
Assistant Secretary

 

 

 

[Signature Page to Membership Interest Purchase Agreement]

 

Exhibit A

Form of Assignment, Assumption, Guaranty Termination and Acknowledgment Agreement

ASSIGNMENT AND ASSUMPTION,

GUARANTY TERMINATION 

AND

ACKNOWLEDGMENT AGREEMENT

THIS ASSIGNMENT AND ASSUMPTION, GUARANTY TERMINATION AND ACKNOWLEDGMENT AGREEMENT (this “Agreement”), dated as of February 25, 2016 (the “Effective Date”), is made by and among by and among Cox TMI, Inc., a Delaware corporation (the “Seller”), Cox Communications, Inc., a Delaware corporation (“CCI” and, together with the Seller, the “Seller Parties”), Gulliver Media Holdings, LLC, a Delaware limited liability company (the “Purchaser”), Scripps Networks Interactive, Inc., an Ohio corporation (“SNI” and, together with the Purchaser, “Scripps”), and TCM Parent, LLC, a Delaware limited liability company (the “Company”).  Capitalized terms used herein but not otherwise defined have the meanings ascribed to such terms in the Purchase Agreement.

WHEREAS, Seller Parties, Scripps and the Company are parties to that certain Membership Interest Purchase Agreement, dated as of the date hereof (the “Purchase Agreement”), pursuant to which, among other things, Seller has agreed to sell and Purchaser has agreed to purchase all of Seller’s Membership Interest in the Company on the terms and conditions set forth in the Purchase Agreement; and

WHEREAS, Section 1.2 of the Purchase Agreement requires that the parties to the Purchase Agreement enter into this Agreement at Closing in order to assign Seller’s Membership Interests to Purchaser and for Purchaser to assume such Membership Interest and the rights and obligations related thereto, to terminate that Guaranty Agreement, dated January 15, 2015 (the “Guaranty”), by and between CCI and SNI, and to acknowledge the survival of the Tax Matters Agreement, dated December 15, 2009 (as amended, the “Tax Matters Agreement”), by and among Scripps, the Seller Parties, the Company, and TCM Sub, LLC.

NOW, THEREFORE, pursuant to the terms and conditions of the Purchase Agreement and in consideration of the mutual covenants and agreements contained therein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is hereby agreed that:

1. Assignment of Seller’s Membership Interest.  Seller hereby sells, assigns, transfers, conveys and delivers the Seller’s Membership Interest, in whole and free and clear of any Liens, to the Purchaser and does hereby irrevocably constitute and appoint the Purchaser as its attorney-in-fact, with full power of substitution in the premises, to transfer such Membership Interest on the books of the Company.  Purchaser hereby accepts from Seller all of Seller’s right, title and interest in and to the Seller’s Membership Interest and assumes all of the obligations relating to events occurring after the Closing with respect to the Seller’s Membership Interest pursuant to the Operating Agreement.

2. Termination of Guaranty.  The parties hereto hereby agree that from and after the Effective Date, (a) the Guaranty shall be terminated in all respects and shall be of no further force of effect; and (b) no party under the Guaranty shall have any liabilities or obligations, and each party thereunder shall be forever released and discharged in all respects from any and all obligations under or with respect to the Guaranty.

3. Acknowledgement of Survival of Tax Matters Agreement.  Seller Parties, Scripps and the Company hereby acknowledge and agree that, notwithstanding the sale and purchase of the Seller’s Membership Interest and the termination of Seller’s membership in the Company, each of the provisions of the Tax Matters Agreement shall remain in full force and effect until the all statutes of limitations, including any extensions or tolling thereof, for all tax years, including the portion of the tax year including the Closing, during which Seller Parties and Scripps were both Members of the Company have expired.

4. Miscellaneous Provisions

a. Further Assurances. Each party hereto hereby agrees to execute and deliver, or cause to be executed and delivered, such other documents, instruments and agreements, and take such other actions, as either party may reasonably request in connection with the transactions contemplated by this Agreement.

b. Governing Law.  This Agreement shall in all respects be construed in accordance with and governed by the substantive laws of the State of Delaware, without giving effect to principles of conflicts of laws.

c. Severability.  If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the 

 

remaining provisions contained herein shall not be affected or impaired thereby; provided that the parties shall negotiate in good faith with respect to an equitable modification of the provision or application thereof held to be invalid.

d. Counterparts.  This Agreement may be executed in multiple counterparts, and on separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. Any counterpart or other signature hereupon delivered by facsimile shall be deemed for all purposes as constituting good and valid execution and delivery of this Agreement by such party.

(Signature page follows.)

 

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DULY EXECUTED and delivered by the parties effective as of the date set forth above.

 

	
THE COMPANY:

	
 

	
TCM PARENT, LLC

	
 

	
By:
	
 
	
 

	
Name:
	
 
	
 

	
Title:
	
 
	
 

	
 

	
SCRIPPS:

	
 

	
SCRIPPS NETWORKS INTERACTIVE, INC.

	
 

	
By:
	
 
	
 

	
Name:
	
 
	
 

	
Title:
	
 
	
 

	
 

	
GULLIVER MEDIA HOLDINGS, LLC

	
 

	
By:
	
 
	
 

	
Name:
	
 
	
 

	
Title:
	
 
	
 

	
 

	
THE SELLER PARTIES:

	
 

	
COX TMI, INC.

	
 

	
By:
	
 
	
 

	
Name:
	
 
	
 

	
Title:
	
 
	
 

	
 

	
COX COMMUNICATIONS, INC.

	
 

	
By:
	
 
	
 

	
Name:
	
 
	
 

	
Title:
	
 
	
 

 

 

 

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Exhibit B

Form of Certification of Non-Foreign Status

Certification of Non-Foreign Status

Section 1445 of the Internal Revenue Code (“Section 1445”) provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person.  To inform the transferee that withholding of tax is not required upon the disposition of a U.S. real property interest by Cox TMI, Inc., a Delaware corporation (“Transferor”), the undersigned hereby certifies the following on behalf of Transferor:

1. Transferor is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations);

2. Transferor is not a disregarded entity as defined in Treasury Regulation § 1.1445-2(b)(2)(iii);

3. Transferor’s U.S. employer identification number is 83-0480083; and

4. Transferor’s office address is 6305 Peachtree Dunwoody Road, Atlanta, GA 30328.

Transferor understands that this certification may be disclosed to the Internal Revenue Service by the transferee and that any false statement contained herein could be punished by fine, imprisonment or both.

Under penalties of perjury, in my capacity as an officer, and on behalf, of Transferor, I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct, and complete, and I further declare that I have authority to sign this document on behalf of Transferor.

 

	
Cox TMI, Inc.

	
 
	
 
	
 

	
By:
	
 
	
 

	
Name:
	
 
	
 

	
Date:
	
 
	
 

 

 

Exhibit C

Form of Resignation

 

Resignation

This resignation is provided pursuant to the Amended and Restated Limited Liability Company Agreement of the Company dated as of December 8, 2009, as amended (the “Operating Agreement”) of TCM Parent, LLC, a Delaware limited liability company (the “Company”). Capitalized terms used herein without definition have the meanings given to them in the Operating Agreement.

The undersigned hereby resigns as a Member Representative, effective immediately upon consummation of the sale by Cox TMI to Gulliver Media of Cox TMI’s Membership Interest, pursuant to the Membership Interest Purchase Agreement dated as of February 25, 2016, by and between Cox TMI and Gulliver Media.  This resignation includes the undersigned’s resignation from all committees established by the Board and from the board of managers (or similar governing bodies) of each subsidiary of the Company.

The Company hereby releases, waives and relinquishes any and all claims that it or any of its Subsidiaries may have now or in the future have or claim to have, or previously had, directly or indirectly, against the undersigned arising under, resulting from, or in connection with the undersigned’s serving as a Member Representative of the Company and in any similar capacity for any Subsidiary of the Company.

 

	
 

	
Name:
	
 
	
 

 

 

The Company hereby acknowledges and accepts, and agrees to, this Resignation agreement as of the date set forth above.

 

	
TCM PARENT, LLC

	
 
	
 
	
 

	
By:
	
 
	
 

	
Name:
	
 
	
 

	
Title:sni-ex1043_19.htm

 

Exhibit 10.43

PURCHASE AGREEMENT

This Purchase Agreement (“Agreement”) is made as of the 23rd day of February, 2016, by and between FSN Southern Holdings, Inc., a Colorado corporation (“Fox”), Scripps Networks, LLC, a Delaware limited liability company (“SNLLC”), and FOX-BRV Southern Sports Holdings, LLC, a Delaware limited liability company (the “Company”). 

RECITALS

A. Fox and SNLLC are the sole members of the Company, which is governed by that certain Operating Agreement of the Company dated January 23, 2007, as amended (the “Operating Agreement”). Capitalized terms used herein without definition have the meanings given to them in the Operating Agreement. 

B. SNLLC acquired its Membership Interest from BRV, Inc., a Delaware corporation, as a result of internal corporate and asset restructurings by The E. W. Scripps Co., an Ohio corporation and formerly a parent company of SNLLC and BRV, Inc. As a result of such restructurings, SNLLC is directly owned by Network Holdings, Inc., a Delaware corporation, which in turn is owned by Scripps Networks Interactive, Inc., an Ohio corporation (“SNI”). 

C. SNLLC’s Membership Interest constitutes 7.25% of the Membership Interests; and Fox’s Membership Interest constitutes 92.75% of the Membership Interests. 

D. SNLLC desires to sell to Fox, and Fox desires to purchase from SNLLC, all of SNLLC’s Membership Interest, on the terms and subject to the conditions set forth in this Agreement. 

NOW, THEREFORE, the parties hereto agree as follows: 

ARTICLE I.

INTERPRETATION

1.1 Interpretation. For purposes of this Agreement, (a) the term “including” shall be deemed to be followed by the words “without limitation”; (b) the terms “herein,” “hereof,” “hereby,” “hereto” and “hereunder” shall refer to this Agreement as a whole; (c) references to Articles, Sections and Exhibits are to Articles, Sections and Exhibits of or to this Agreement; (d) the singular shall include the plural, and vice versa; (e) the masculine shall include the feminine and neuter; (f) the term “or” shall not be exclusive and (g) references to statutes shall include amendments to and judicial interpretations of such statutes. 

ARTICLE II.

PURCHASE AND SALE

2.1 Purchase Price. On the terms and subject to the conditions hereof, at the Closing (as defined in Section 2.2), SNLLC shall assign, sell, transfer and deliver to Fox, free and clear of any lien, security interest, pledge, claim or encumbrance (except as provided by applicable securities laws or the Operating Agreement) (collectively, “Liens”), and Fox shall purchase from SNLLC, all of SNLLC’s Membership Interest (the “Sale”), at a purchase price equal to Two Hundred Twenty Five Million dollars ($225,000,000) (the “Purchase Price”), payable as set forth below in Section 2.3(b). 

2.2 Closing Date. The closing of the Sale (the “Closing”) shall take place at the offices of Jenner & Block LLP, 633 West 5th Street, Los Angeles, California, at 10:00 a.m., California time, on February 24, 2016, unless the parties otherwise mutually agree in writing (the “Closing Date”). 

2.3 Deliveries at the Closing. At the Closing:

(a) SNLLC and Fox, as applicable, shall deliver or cause to be delivered to the other:

(i) if so requested by the other party prior to the Closing, a certificate executed by a duly authorized officer of the requested party certifying that each of such party’s representations and warranties set forth in Section 3.1 or Section 3.2, as the case may be, is true, accurate and complete as of the Closing Date; 

 

 

(ii) an assignment of interests, substantially in the form attached hereto as Exhibit A, executed by a duly authorized officer or manager of SNLLC, evidencing transfer of SNLLC’s entire Membership Interest to Fox as of the Closing Date; 

(iii) a certification of non-foreign status of SNLLC’s direct corporate parent, substantially in the form attached hereto as Exhibit B; and 

(iv) a copy of the written notice of removal that, as of the Closing Date, has been duly delivered by SNLLC to each of the BRV Board Members; and 

(b) subject to (i) satisfaction of the condition set forth in Section 3.4 and (ii) delivery by the parties of the documents set forth in Section 2.3(a), Fox shall deliver to SNLLC the Purchase Price, by wire transfer of immediately available funds to the account designated by SNLLC by notice to Fox on or prior to the date hereof. 

2.4 Termination of Membership. Upon consummation of the Sale, SNLLC immediately and automatically shall cease to be a Member, shall have no further interest in or to the Company, its subsidiaries or the Networks and shall have no further rights or obligations as a Member under the Operating Agreement; provided, however that (a) the foregoing shall not affect any of SNLLC’s rights, under the Operating Agreement or applicable law, in its capacity as a Person who formerly was a Member, or any rights or exculpation of SNLLC or any individual director, officer, employee or agent of SNLLC under Section 2.2(a) of the Operating Agreement (the “Continuing Rights”), and (b) SNLLC’s obligations under Section 2.6 of the Operating Agreement, including the exceptions thereto, shall continue to apply to SNLLC, as if SNLLC were to remain a Member after the Closing, but solely in respect of proprietary information and trade secrets disclosed to SNLLC prior to the Closing. For purposes of this Section 2.4, Sections 2.2(a) and 2.6 of the Operating Agreement, as in effect on the date hereof, are incorporated herein by this reference; and the parties’ rights and obligations under this Section 2.4 shall not be affected by any subsequent amendment to the Operating Agreement. 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

3.1 SNLLC’s Representations and Warranties. SNLLC hereby represents and warrants to Fox, as of the date hereof and as of the Closing Date, as follows: 

(a) Organization; Status. SNLLC is a limited liability company validly existing and in good standing under the laws of the State of Delaware. SNLLC is a disregarded entity for tax purposes, directly and wholly owned by Networks Holdings, Inc., a Delaware corporation. SNLLC is not a Member in Bankruptcy. 

(b) Corporate Power and Authority. SNLLC has full limited liability company power and authority to enter into and perform its obligations under this Agreement. All actions necessary to authorize the execution, delivery and performance of this Agreement by SNLLC have been taken. This Agreement has been duly executed and delivered by a duly authorized officer or manager of SNLLC. 

(c) Enforceability. This Agreement constitutes a legal, valid and binding obligation of SNLLC, enforceable against SNLLC in accordance with its terms, except as such enforceability may be affected by applicable bankruptcy, reorganization, insolvency, moratorium or similar laws affecting creditors’ rights generally, and except that the availability of equitable remedies is subject to judicial discretion. 

(d) No Conflicts or Consents. No consent or approval of any Person other than SNLLC is required in connection with the execution, delivery or performance of this Agreement by SNLLC or in connection with SNLLC’s consummation of the Sale; and such actions and transaction do not and will not (i) violate or conflict with the Certificate of Incorporation, bylaws or other organizational documents of SNLLC or any material agreement to which SNLLC is a party or by which it is bound or (ii) result in or require the grant or creation of any Lien attributable to SNLLC upon SNLLC’s Membership Interest or any asset of the Company. 

(e) Valid Title. SNLLC has good and valid title to, and upon consummation of the Sale pursuant hereto Fox shall acquire, SNLLC’s Membership Interest, free and clear of all Liens. No Person, other than SNLLC, has any right, title or interest in or to SNLLC’s Membership Interest. SNLLC has not offered, sold or otherwise transferred SNLLC’s Membership Interest, in whole or in part, to any of its Affiliates or any third party. Other than this Agreement and the Operating Agreement, SNLLC’s Membership Interest is not subject to any voting trust agreement or other Contract restricting or otherwise relating to the voting, dividend rights or disposition of SNLLC’s Membership Interest. 

(f) Sole Interest. SNLLC’s Membership Interest constitutes all of SNLLC’s interests in the Company, the Company’s subsidiaries and the Networks (whether classified as a debt, equity, profit or participation interests or otherwise). The Company is not currently indebted to SNLLC or any of its Affiliates for any amount, and there are no evidences of indebtedness of the Company (including any Default Promissory Notes) held directly or indirectly by SNLLC or any Affiliate thereof. 

2

 

(g) Board Members. As of or prior to the Closing, SNLLC will have delivered to each of the BRV Board Members written notice of such Board Member’s removal by SNLLC in accordance with Section 4.3 of the Operating Agreement, which removal shall be effective as of or prior to the Closing Date. 

(h) Financial Advisors. No Person has acted, directly or indirectly, as a broker, finder or financial advisor for SNLLC in connection with the transactions contemplated by this Agreement, and no Person is entitled to any fee or commission or like payment in respect thereof. 

(i) Knowledge and Information. SNLLC has extensive experience operating and investing in media businesses, including television networks. SNLLC has knowledge of the legal, financial and operational status of the Company and has had the opportunity to receive and review all of the information of the Company that SNLLC considered necessary or appropriate to make its own determination as to the value of SNLLC’s Membership Interest and to decide to sell its Membership Interest at the Purchase Price and on the other terms set forth herein. SNLLC is not relying upon the Company or Fox to determine the information that SNLLC should review, and SNLLC acknowledges and agrees that Fox is not acting in a fiduciary capacity and does not owe any fiduciary duty to SNLLC in connection with this Agreement or the consummation of the Sale. SNLLC is capable of evaluating the risks and merits of engaging in the Sale, and it has not been induced by, and has not relied on, any representation, warranty, statement or agreement, whether express or implied, and whether made in writing or orally, by the Company, Fox or any of Fox’s Affiliates or any Person acting on any of such Persons’ behalf, except for Fox’s representations and warranties expressly set forth in Section 3.2. 

3.2 Fox’s Representations and Warranties. Fox hereby represents and warrants to SNLLC, as of the date hereof and as of the Closing Date, as follows: 

(a) Organization; Status. Fox is a corporation validly existing and in good standing under the laws of the State of Colorado. 

(b) Corporate Power and Authority. Fox has full corporate power and authority to enter into and perform its obligations under this Agreement. All actions necessary to authorize the execution, delivery and performance of this Agreement by Fox have been taken. This Agreement has been duly executed and delivered by a duly authorized officer of Fox. 

(c) Enforceability. This Agreement constitutes a legal, valid and binding obligation of Fox, enforceable against Fox in accordance with its terms, except as such enforceability may be affected by applicable bankruptcy, reorganization, insolvency, moratorium or similar laws affecting creditors’ rights generally, and except that the availability of equitable remedies is subject to judicial discretion. 

(d) Financial Advisors. No Person has acted, directly or indirectly, as a broker, finder or financial advisor for Fox in connection with the transactions contemplated by this Agreement, and no Person is entitled to any fee or commission or like payment in respect thereof. 

(e) No Conflicts or Consents. No consent or approval of any Person other than Fox is required in connection with the execution, delivery or performance of this Agreement by Fox or in connection with Fox’s consummation of the Sale; and such actions and transaction do not and will not violate or conflict with the Certificate of Incorporation, bylaws or other organizational documents of Fox or any material agreement to which Fox is a party or by which it is bound. 

(f) Knowledge and Information. Fox has extensive experience operating and investing in media businesses, including television networks. Fox has knowledge of the legal, financial and operational status of the Company and has had the opportunity to receive and review all of the information of the Company that Fox considered necessary or appropriate to make its own determination as to the value of SNLLC’s Membership Interest and to decide to buy SNLLC’s Membership Interest at the Purchase Price and on the other terms set forth herein. Fox is not relying upon SNLLC to determine the information that Fox should review, and Fox acknowledges and agrees that SNLLC is not acting in a fiduciary capacity and does not owe any fiduciary duty to Fox in connection with this Agreement or the consummation of the Sale. Fox acknowledges that SNLLC is not making any representations or warranties with respect to the business, operations, prospects, assets, liabilities, obligations or condition, financial or otherwise, of the Company, its subsidiaries or the Networks. Fox is capable of evaluating the risks and merits of engaging in the Sale, and it has not been induced by, and has not relied on, any representation, warranty, statement or agreement, whether express or implied, and whether made in writing or orally, by SNLLC or any Person acting on SNLLC’s behalf, except for SNLLC’s representations and warranties expressly set forth in Section 3.1. 

(g) No Registration. Fox acknowledges that SNLLC is selling, and Fox will acquire, SNLLC’s Membership Interest without registration under the Securities Act of 1933, as amended, or under similar provisions of any state securities law. Fox is acquiring SNLLC’s Membership Interest for its own account, for investment and with no view to the distribution of SNLLC’s Membership Interest. Fox shall not transfer or attempt to transfer SNLLC’s Membership Interest in the absence of registration under such Securities Act and any applicable state securities laws or an available exemption from such registration. 

(h) Adequate Funds. Fox has sufficient funds readily available to pay the Purchase Price at the Closing. 

3

 

3.3 Survival. The parties’ representations, warranties and related covenants set forth in this Agreement shall survive the Closing for the applicable statute of limitations, except that SNLLC’s representations and warranties set forth in Sections 3.1(e), and SNLLC’s covenants with respect thereto, shall survive the Closing indefinitely. All other covenants herein shall survive the Closing until fully performed. 

3.4 Condition to Closing. SNLLC shall promptly notify Fox prior to the Closing Date in the event that it discovers that any of SNLLC’s representations or warranties contained in Section 3.1 is untrue, inaccurate or incomplete. Fox’s obligation to consummate the Sale shall be subject to the condition that each of SNLLC’s representations and warranties set forth in Section 3.1 is true, accurate and complete in all respects as of the Closing Date. In the event that this closing condition is not satisfied but Fox, acting in its sole discretion, determines to consummate the Sale, SNLLC shall use its commercially reasonable efforts, including by taking take all actions reasonably requested by Fox and shall cooperate fully with Fox and the Company, to cause the applicable representation or warranty to be true, accurate and complete in all respects as soon as reasonably practicable following the Closing, all of which efforts shall be taken at SNLLC’s sole cost and expense. 

3.5 Indemnification. 

(a) Each of SNLLC and Fox shall indemnify and hold the other party and its Affiliates, including in the case of Fox, the Company and its subsidiaries (collectively, the “Indemnified Persons”), harmless from and against any Damages suffered or incurred by any of the Indemnified Persons pursuant to a third party claim arising out of or resulting from an inaccuracy or breach of any of the indemnifying party’s representations and warranties set forth in Section 3.1 or 3.2, as the case may be. Additionally, SNLLC shall indemnify and hold Fox and its Affiliates harmless from and against any costs or other Damages suffered or incurred by any of such Indemnified Persons to remove any Lien applicable to SNLLC’s Membership Interest. 

(b) None of the officers of Fox, nor any of the Board Members appointed by Fox, is actually aware of any breach of SNLLC’s representations or warranties set forth in Section 3.1; and none of the officers of SNLLC, nor any of the Board Members appointed by SNLLC, is actually aware of any breach of Fox’s representations or warranties set forth in Section 3.2. Notwithstanding the foregoing, the Indemnified Persons’ rights to indemnification hereunder shall not be affected by any investigation conducted or knowledge held or acquired by an Indemnified Person at any time, whether prior to, on or after the execution of this Agreement or the Closing. 

(c) The indemnification provided by this Section 3.5 shall not limit the Indemnified Persons’ rights or remedies with respect to any claim arising under or in respect of this Agreement, including any claim for breach of contract, fraud or misrepresentation. 

ARTICLE IV.

RELEASE

4.1 Release. From and after the Closing and payment of the Purchase Price, excluding any claims under this Agreement and the Continuing Rights, each party (including the Company with respect to the release of SNLLC), on behalf of itself and its current, former and future Affiliates, hereby fully releases, waives and forever discharges the other party and its Affiliates (including the BRV Board Members in the case of SNLLC) from any and all action or manner of action, cause or cause of action, in law or in equity, suits, debts, demands, damages, judgments, obligations or liabilities of any nature, including reasonable attorneys’ fees and costs, whether known or unknown, accrued or unaccrued, fixed or contingent, arising from the beginning of time until and through the date hereof under the Operating Agreement or in connection with the Company (collectively, “Claims”), including Claims arising out of or related to, in part or in whole, directly or indirectly, the Company’s business, operations, governance, distributions or other matters. 

4.2 Waiver of Statutory Protections. Each of the parties hereto acknowledges and understands that the release provided by such party in Section 4.1 is a full and general release and includes a release of all Claims, including unknown Claims. By entering into this Agreement and providing the release set forth in Section 4.1 and the waivers set forth in this Section 4.2, such party is waiving, on behalf of itself and its Affiliates, significant legal rights that such Persons otherwise would have and that, in the future, such Persons might come to know certain facts or circumstances that, if known as of the date hereof, might have caused such party or its Affiliates not to provide the release set forth in Section 4.1 or the waivers set forth in this Section 4.2. Despite such possibility, such party, on behalf of itself and its Affiliates, does hereby voluntarily and intentionally, with full understanding of the significance and consequences of such action and after having consulted with legal counsel of its own choosing regarding same, waive the rights that could have been provided by California Civil Code Section 1542 or by any other statute, legal decision or common law principle of similar effect. California Civil Code Section 1542 reads as follows: 

4

 

SECTION 1542. (GENERAL RELEASE - CLAIMS EXTINGUISHED.) A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 

ARTICLE V.

COVENANTS

5.1 Further Assurances. From time to time, whether prior to, on or after the Closing, as and when reasonably requested by either party, the non-requesting party shall execute, acknowledge, deliver, file or record all such certificates, agreements, instruments or documents, and shall take or cause to be taken all such further or other actions, as the requesting party may reasonably deem necessary or desirable to carry out the intent and purposes of this Agreement, including the consummation the Sale or, if applicable, removal of any Lien on SNLLC’s Membership Interest. SNLLC’s obligations hereunder shall be in addition to any obligation it may have under Section 3.4, if applicable. 

5.2 Distributions. From and after the date hereof, SNLLC shall not be entitled to receive any distributions from the Company, including any distribution of Excess Cash in respect of the current fiscal quarter of the Company. The Company believes in good faith that it has made all distributions of Excess Cash that SNLLC was entitled on or prior to December 31, 2015 to receive pursuant to the Operating Agreement. 

5.3 Confidentiality. The parties shall not disclose to any Person or make any announcement, press release or other public statement relating in any manner to this Agreement or any of the terms hereof, except (a) with mutual written consent, (b) as required by Applicable Law, in which case the disclosing party shall, to the extent permitted and practicable, allow the other party a reasonable time to review and comment on the form and substance of the information to be disclosed or released, (c) SNI may disclose the Sale (and its financial impact) and the Purchase Price in its securities law filings and other periodic reports with the SEC or (d) to a party’s and its Affiliates’ legal, financial and accounting advisors on a need-to-know basis, provided that the Person receiving such information is advised of the confidential nature of such information and agrees to keep such information confidential or is subject to a legal or ethical duty of confidentiality. The parties’ obligations herein with respect to confidential or proprietary information shall survive the Closing indefinitely and are in addition to, and shall not limit or otherwise affect, any other confidentiality obligations that a party may owe to the other, or its Affiliates, whether pursuant to a written agreement, Applicable Law or otherwise. 

5.4 No Related Party Agreements. None of SNLLC nor any of its Affiliates has any Affiliated System that is carrying the Networks’ Programming, nor does SNLLC nor any of its Affiliates have any rights or obligations under the Television Rights Agreements. Accordingly, Sections 8.3 and 5.7(a)(vi) of the Operating Agreement are inapplicable to the Sale and the parties hereto agree that (a) SNLLC is not required to enter into an Affiliation Agreement with the Company and (b) Fox is not required to assume any obligations or liabilities of SNLLC under any Television Rights Agreement. 

ARTICLE VI.

MISCELLANEOUS

6.1 Expenses. All expenses incurred by or on behalf of a party hereto in connection with the authorization, preparation and consummation of this Agreement, including all fees and expenses of agents, representatives, counsel and accountants engaged by such party in connection with the authorization, preparation, execution and consummation of this Agreement shall be borne solely by the party incurring such expense. 

6.2 Amendment; Waiver. This Agreement may be modified or amended only by a writing duly executed by or on behalf of both of the parties hereto. The observance of any term of this Agreement may be waived only by the party entitled to enforce such term, but any such waiver shall be effective only if in a writing signed by the party against which such waiver is to be asserted. Except as otherwise specifically provided herein, no delay on the part of either party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party hereto of any right, power or privilege hereunder operate as a waiver of any other right, power or privilege hereunder nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder. 

6.3 Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matters hereof and supersedes any prior agreement or understanding, whether or not written, between them with respect to such subject matters. 

5

 

6.4 Severability. If any provisions of this Agreement, or the application of such provision to any Person or circumstance, shall be held invalid, the remainder of this Agreement or the application of such provision to other Persons or circumstances shall not be affected thereby, provided that the parties shall negotiate in good faith with respect to an equitable modification of the provision or application thereof held to be invalid. 

6.5 Notices. All notices, requests, demands, consents and other communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given (a) when personally delivered to an officer of the receiving party, (b) five (5) business days after such notice is mailed, certified mail return receipt requested, first-class postage prepaid or (c) the next business day after such notice is sent by commercial courier, to the intended recipient at the address specified below: 

If to SNLLC, to: 

Scripps Networks, LLC 

9721 Sherrill Blvd 

Knoxville TN 37932 

Attention: Executive Vice President, Chief Legal Officer 

If to Fox, to: 

FSN Southern Holdings, Inc.

c/o Fox Sports Net, Inc. 

10201 West Pico Boulevard 

Los Angeles, CA 90064 

Attention: President 

with a copy (which shall not constitute notice) to: 

Fox Networks Group 

10201 West Pico Boulevard 

Los Angeles, CA 90064 

Attention: Executive Vice President and General Counsel 

or to such other address as a party shall have last designated by notice to the other party. 

6.6 Assignment. This Agreement and the rights and obligations hereunder shall not be assignable or transferable by either party without the prior written consent of the other party; provided, however that Fox may designate an Affiliate to purchase SNLLC’s Membership Interest in compliance with the Operating Agreement, which designation shall not relieve Fox of any of its obligations or liabilities hereunder. 

6.7 Third Party Beneficiaries. Except as provided in Section 3.5, 5.3 or ARTICLE IV, this Agreement is for the benefit of the parties hereto, and nothing herein expressed or implied shall give or be construed to give to any Person, other than the parties any legal or equitable rights hereunder. 

6.8 Governing Law. This Agreement, the rights and obligations of the parties relating hereto and any claims or disputes arising hereunder shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to the conflict of laws principles thereof (except that Section 5-1401 of the New York General Obligations Law shall apply). 

6.9 Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement. 

6.10 Headings. The Article and Section headings in this Agreement are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof. 

[signature page follows]

 

 

 

6

 

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the date set forth in the Preamble hereto. 

 

	
Scripps Networks, LLC

	
 
	
 
	
 

	
By:
	
 
	
/s/ Cynthia L. Gibson

	
Name:
	
 
	
Cynthia L. Gibson

	
Title:
	
 
	
EVP, CLO

	
 

	
FSN Southern Holdings, Inc.

	
 
	
 
	
 

	
By:
	
 
	
/s/ Rita L. Tuzon

	
Name:
	
 
	
Rita L. Tuzon

	
Title:
	
 
	
EVP and General Counsel

	
 

	
FOX-BRV Southern Sports Holdings, LLC

	
 
	
 
	
 

	
By:
	
 
	
/s/ Rita L. Tuzon

	
Name:
	
 
	
Rita L. Tuzon

	
Title:
	
 
	
EVP and General Counsel

 

 

 

[Signature Page to Purchase Agreement]

 

EXHIBIT A 

FORM OF ASSIGNMENT OF INTEREST

ASSIGNMENT OF INTEREST

Reference is hereby made to the Purchase Agreement dated as of February 23, 2016 (the “Agreement”), by and between Scripps Networks, LLC, a Delaware limited liability company, and FSN Southern Holdings, Inc., a Colorado corporation. Capitalized terms used but not defined herein shall have the meanings given to them in the Agreement, except where the context otherwise requires.

FOR VALUE RECEIVED, SNLLC hereby sells, assigns and transfers SNLLC's Membership Interest, in whole, to Fox and does hereby irrevocably constitute and appoint Fox as its attorney-in-fact, with full power of substitution in the premises, to transfer such Membership Interest on the books of the Company.

 

	
Scripps Networks, LLC

	
 

	
By:
	
 
	
 

	
Name:
	
 
	
 

	
Title:
	
 
	
 

 

 

 

EXHIBIT B 

FORM OF CERTIFICATION OF NON-FOREIGN STATUS

Certification of Non-Foreign Status

Section 1445 of the Internal Revenue Code (“Section 1445”) provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person. To inform the transferee that withholding of tax is not required upon the indirect disposition of a U.S. real property interest by Networks Holdings, Inc., a Delaware corporation (“Transferor”), the undersigned hereby certifies the following on behalf of Transferor:

1. Transferor is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations);

2. Transferor is not a disregarded entity as defined in Treasury Regulation § 1.1445-2(b)(2)(iii);

3. Transferor's U.S. employer identification number is 62-1282758; and

4. Transferor's office address is c/o Scripps Networks, LLC, 9721 Sherrill Blvd Knoxville TN 37932.

Transferor understands that this certification may be disclosed to the Internal Revenue Service by the transferee and that any false statement contained herein could be punished by fine, imprisonment or both.

Under penalties of perjury, in my capacity as an officer, and on behalf, of Transferor, I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct, and complete, and I further declare that I have authority to sign this document on behalf of Transferor.

 

	
Networks Holdings, Inc.

	
 

	
By:
	
 
	
 

	
Name:
	
 
	
 

	
Title:

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