Opinion ID: 1435659
Heading Depth: 1
Heading Rank: 1

Heading: BACKGROUND Events Prior to 2004

Text: In 2002, a shareholders agreement dated March 26, 1998, (the 1998 Agreement) set forth the terms of the ownership of Kyivstar's shares. The 1998 Agreement contemplated the existence of five stakeholders, including Telenor and Storm. At some point in early 2002, however, Telenor and Storm agreed to attempt to buy out the other three stakeholders. By August of that year, they had nearly succeeded: only Omega JSC (Omega) remained. In light of Kyivstar's newly altered ownership structure and in anticipation of Omega's eventual capitulation, Storm and Telenor negotiated an interim voting agreement between themselves (the Voting Agreement), which supplemented and altered their rights and obligations as to each other under the 1998 Agreement. The Voting Agreement was executed on September 2, 2002. Valeriy Nilov, Storm's General Director, signed for Storm. Three days earlier, Storm had sent Telenor a copy of a unanimous resolution by Storm shareholders authorizing Nilov to do so. See Storm LLC, Notice Regarding Resolutions Adopted by Written Polling, Aug. 30, 2002, at 2-3 (Authorization of the General Director of ... `Storm', Nilov Valeriy Vladimirovich, to execute and deliver [ inter alia, the Voting Agreement] and ... take or cause to be taken any and all other actions, as are required or desirable in connection with this Resolution and the above-referenced agreements.). The Voting Agreement contained a promise by each of the parties to execute a new shareholders agreement once Storm bought Omega's shares or the 1998 Agreement was terminated, whichever occurred first. See Voting Agreement § 2.05 (providing that, within three days after the earlier of either condition, the Shareholders [viz., Telenor and Storm] agree to, and to cause [Kyivstar] to, execute and deliver the New Shareholders Agreement). A form for the contemplated new shareholders agreement was attached to the Voting Agreement as an exhibit. It was in all substantive respects but onea provision setting forth the terms of material breach, which was later amended at Storm's request identical to what would be the 2004 Agreement. On October 29, 2002, Storm sent Telenor a document, signed by Nilov, entitled Certificate of Senior Officer of Purchaser. The Certificate included, among other things, a copy of the Storm shareholders resolution authorizing Nilov to execute the Voting Agreement, and minutes of a meeting occurring on October 7, 2002, which confirmed the resolutions adopted by written polling on August 30, 2002. The Certificate provided that those documents constitute[ ] valid approval under the laws of Ukraine of [Storm's] execution, delivery and performance of [ inter alia, the Voting Agreement] and any other documents in implementation of [ inter alia, the Voting Agreement].