DTV » Topics » Amendment No. 1 to the Voting and Right of First Refusal Agreement

This excerpt taken from the DTV 8-K filed Oct 2, 2009.


AMENDMENT NO. 2 TO VOTING AND RIGHT OF FIRST REFUSAL AGREEMENT

        THIS AMENDMENT NO. 2 TO THE VOTING AND RIGHT OF FIRST REFUSAL AGREEMENT (this "Amendment"), dated as of October 2, 2009, is made by and among Liberty Entertainment, Inc., a Delaware corporation ("Splitco"), The DIRECTV Group, Inc., a Delaware corporation ("DIRECTV"), DIRECTV, a Delaware corporation formed as a direct, wholly-owned Subsidiary of DIRECTV ("Holdings"), Dr. John C. Malone ("Dr. Malone"), Mrs. Leslie Malone, The Tracy L. Neal Trust A (the "Tracy Trust") and The Evan D. Malone Trust A (the "Evan Trust," and together with Dr. Malone, Mrs. Malone and the Tracy Trust, collectively, the "Malones" and each a "Malone").


RECITALS

        A.    Splitco, DIRECTV, Holdings and each Malone entered into that certain Voting and Right of First Refusal Agreement, dated as of May 3, 2009 and that certain Amendment No. 1 to the Voting and Right of First Refusal Agreement, dated as of July 29, 2009 (collectively, the "Malone Agreement").

        B.    Splitco, Holdings and each Malone now intend to amend certain provisions of the Malone Agreement as set forth herein.

        C.    Section 13(j) of the Malone Agreement requires that prior to the Merger Effective Time, any amendment to the Malone Agreement be by written agreement of (i) Holdings, (ii) Members holding a majority of the Member Shares, and (iii) Splitco.

        NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of Splitco, Holdings and each Malone hereby agrees as follows:

        SECTION 1. Defined Terms.    Terms defined in the Malone Agreement are used in this Amendment with the same meaning, unless otherwise indicated.

        SECTION 2. Amendments to Malone Agreement.    The Malone Agreement is hereby amended as follows:

            2.1   The definition of "Malone Child Attribution Person" in Section 1 of the Malone Agreement is hereby amended by deleting such definition and replacing it in its entirety to read as follows:

                ""Malone Child Attribution Person" means any Person who, with respect to a Malone Child, (i) is related to the Malone Child, as described in Section 355(d)(7)(A) of the Code, or (ii) otherwise is treated as one Person with the Malone Child for all purposes of Section 355(e) of the Code."

            2.2   The definition of "Malone Related Person" in Section 1 of the Malone Agreement is hereby amended by deleting such definition and replacing it in its entirety to read as follows:

                ""Malone Related Person" means any Person who (i) is related to a Malone, as described in Section 355(d)(7)(A) of the Code, or (ii) otherwise is treated as one Person with a Malone for all purposes of Section 355(e) of the Code."

        SECTION 3. Effect on Malone Agreement.    Other than as specifically set forth herein, all other terms and provisions of the Malone Agreement shall remain unaffected by the terms of this Amendment, and shall continue in full force and effect.

        SECTION 4. Severability.    If any term or other provision of this Amendment is determined by a court of competent jurisdiction to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other terms, provisions and conditions of this Amendment shall nevertheless remain



in full force and effect. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Amendment so as to effect the original intent of the parties as closely as possible to the fullest extent permitted by applicable law in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible.

        SECTION 5. Captions.    The captions herein are included for convenience of reference only and will be ignored in the construction or interpretation hereof.

        SECTION 6. Counterparts.    This Amendment may be executed in counterparts (each of which shall be deemed to be an original but all of which taken together shall constitute one and the same agreement) and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties.

        SECTION 7. Successors and Assigns.    This Amendment shall be binding upon, inure to the benefit of, and be enforceable by, the parties hereto and their respective successors and permitted assigns, including, in the case of any Malone, any trustee, executor, heir, legatee or personal representative succeeding to the ownership of the Malone Liberty Shares, Malone Splitco Shares and Member Shares (and any other Malone Holdings Shares) (including upon the death, disability or incapacity of any Malone).

        SECTION 8. Governing Law.    This amendment shall be governed by and construed in accordance with the laws of the state of Delaware.

        SECTION 9. Jurisdiction.    All actions and proceedings arising out of or relating to this Amendment shall be heard and determined in the Court of Chancery of the State of Delaware, or, if the Court of Chancery lacks subject matter jurisdiction, in any federal court sitting in the State of Delaware, and the parties hereto hereby irrevocably submit to the exclusive jurisdiction of such courts (and, in the case of appeals, appropriate appellate courts there from) in any such action or proceeding and irrevocably waive the defense of an inconvenient forum to the maintenance of any such action or proceeding. The consents to jurisdiction set forth in this paragraph shall not constitute general consents to service of process in the State of Delaware and shall have no effect for any purpose except as provided in this paragraph and shall not be deemed to confer rights on any Person other than the parties hereto. The parties hereto agree that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by applicable Law. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AMENDMENT.

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        IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first above written.

  LIBERTY ENTERTAINMENT, INC.

 

By:

 

/s/ CHARLES Y. TANABE

Name: Charles Y. Tanabe
Title: Executive Vice President

 

DIRECTV

 

By:

 

/s/ LARRY D. HUNTER

Name: Larry D. Hunter
Title: Chief Executive Officer

 

/s/ JOHN C. MALONE

Dr. John C. Malone, individually

 

/s/ LESLIE MALONE

Mrs. Leslie Malone, individually

 

THE TRACY L. NEAL TRUST A

 

By:

 

/s/ DAVID THOMAS

Name: David Thomas
Title: Trustee

 

THE EVAN D. MALONE TRUST A

 

By:

 

/s/ DAVID THOMAS

Name: David Thomas
Title: Trustee

 

THE DIRECTV GROUP, INC.

 

By:

 

/s/ LARRY D. HUNTER

Name: Larry D. Hunter
Title: Chief Executive Officer



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AMENDMENT NO. 2 TO VOTING AND RIGHT OF FIRST REFUSAL AGREEMENT
RECITALS
This excerpt taken from the DTV DEFA14A filed Jul 30, 2009.

Amendment No. 1 to the Voting and Right of First Refusal Agreement

        On July 29, 2009, LEI, DIRECTV, Holdings, Dr. John C. Malone, Mrs. Leslie Malone, The Tracy L. Neal Trust A and The Evan D. Malone Trust A entered into Amendment No. 1 (the "Malone Agreement Amendment") to the Malone Agreement. The Malone Agreement Amendment corrects certain typographical errors and contains conforming changes based on the final provisions of the Holdings amended and restated certificate of incorporation.

        The foregoing description of the Malone Agreement Amendment is only a summary, does not purport to be complete and is qualified in its entirety by reference to the Malone Agreement Amendment, which is attached as Exhibit 10.2 to this Current Report on Form 8-K and is incorporated herein by reference, and to the Malone Agreement which is filed as Exhibit 10.3 to the May 4, 2009 8-K.

ITEM 5.03    Amendments to Articles of Incorporation or By-laws; Changes in Fiscal Year

        In connection with the Merger Agreement Amendment, DIRECTV has amended its By-Laws to require a Supermajority Vote by its Board to (i) approve the new President and Chief Executive Officer as described above, (ii) expand the size of the Board of Directors beyond twelve members, and (iii) approve the next individual appointed by the Board of Directors of DIRECTV to serve as an independent director and fill the vacancy currently existing on the Board of Directors.

        The foregoing description of the amendment to the By-Laws is only a summary, does not purport to be complete and is qualified in its entirety by reference to the amendment to the By-Laws, which is attached as Exhibit 3.1 to this Current Report on Form 8-K and is incorporated herein by reference.

ITEM 8.01    Other Events

        Mr. Mark D. Carleton has informed the Board of Directors of DIRECTV that he intends to resign from the Board of Directors of DIRECTV effective upon the appointment of Paul A. Gould to the Board of Directors of DIRECTV, so long as Mr. Gould qualifies as an independent director under NASDAQ rules, or, in the event that Mr. Gould is not so appointed, an individual appointed by the Board of Directors of DIRECTV who qualifies as an independent director under NASDAQ rules and whose appointment has been approved by both DIRECTV and LEI.

3



ITEM 9.01    Financial Statements and Exhibits

  (d ) Exhibits.

 

3.1

 

Certificate of Amendment to the By-laws of The DIRECTV Group, Inc.

 

10.1

 

Amendment No. 1, dated as of July 29, 2009, to the Agreement and Plan of Merger, dated as of May 3, 2009, by and among Liberty Media Corporation, Liberty Entertainment, Inc., The DIRECTV Group,  Inc., DIRECTV, DTVG One, Inc. and DTVG Two, Inc.

 

10.2

 

Amendment No. 1, dated as of July 29, 2009, to the Voting and Right of First Refusal Agreement, dated as of May 3, 2009, by and among Liberty Entertainment, Inc., The DIRECTV Group, Inc., DIRECTV, Dr. John C. Malone, Mrs. Leslie Malone, The Tracy L. Neal Trust A and The Evan D. Malone Trust A.

IMPORTANT ADDITIONAL INFORMATION FILED WITH THE SEC

Nothing in this communication shall constitute a solicitation to buy or an offer to sell shares of Liberty Entertainment, Inc., DIRECTV, The DIRECTV Group, Inc. or any of the Liberty Media tracking stocks. The offer and sale of shares in the proposed business combination with Liberty Entertainment, Inc. will only be made pursuant to one or more effective registration statements. Investors and security holders are urged to carefully read the registration statements of Liberty Entertainment, Inc. and DIRECTV filed with the SEC, including the proxy statement/prospectuses contained therein, because they contain important information about these transactions. Investors and security holders are able to obtain free copies of the registration statements and the proxy statements/prospectuses and other documents filed with the SEC by Liberty Entertainment, Inc., DIRECTV, Liberty Media Corporation and The DIRECTV Group, Inc., as the case may be, through the web site maintained by the SEC at www.sec.gov. In addition, investors and security holders will be able to obtain free copies of the Registration Statements and the Proxy Statements/Prospectuses from Liberty Media Corporation by contacting Liberty Media Corporation, 12300 Liberty Boulevard, Englewood, Colorado 80112, Attention: Investor Relations, Telephone (720) 875-5408 or from The DIRECTV Group, Inc. by contacting The DIRECTV Group, Inc., 2230 E. Imperial Highway, El Segundo, CA 90245, Attn: Investor Relations, Telephone (310) 964-0808.

PARTICIPANTS IN A SOLICITATION

The directors and executive officers of The DIRECTV Group, Inc. and other persons may be deemed to be participants in the solicitation of proxies in respect of proposals to approve the transactions. Information regarding the directors and executive officers of each of The DIRECTV Group, Inc. and DIRECTV and other participants in the proxy solicitation and a description of their respective direct and indirect interests, by security holdings or otherwise are available in the proxy materials filed with the SEC.

4



SIGNATURE

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

    THE DIRECTV GROUP, INC.
(Registrant)

Date: July 30, 2009

 

By:

 

/s/ LARRY D. HUNTER

    Name:   Larry D. Hunter
    Title:   Chief Executive Officer

6



EXHIBIT INDEX

Exhibit No.
  Exhibit
    3.1   Certificate of Amendment to the By-laws of The DIRECTV Group, Inc.

 

10.1

 

Amendment No. 1, dated as of July 29, 2009, to the Agreement and Plan of Merger, dated as of May 3, 2009, by and among Liberty Media Corporation, Liberty Entertainment, Inc., The DIRECTV Group,  Inc., DIRECTV, DTVG One, Inc. and DTVG Two, Inc.

 

10.2

 

Amendment No. 1, dated as of July 29, 2009, to the Voting and Right of First Refusal Agreement, dated as of May 3, 2009, by and among Liberty Entertainment, Inc., The DIRECTV Group, Inc., DIRECTV, Dr. John C. Malone, Mrs. Leslie Malone, The Tracy L. Neal Trust A and The Evan D. Malone Trust A.



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SIGNATURE
EXHIBIT INDEX
This excerpt taken from the DTV 8-K filed Jul 30, 2009.

Amendment No. 1 to the Voting and Right of First Refusal Agreement

        On July 29, 2009, LEI, DIRECTV, Holdings, Dr. John C. Malone, Mrs. Leslie Malone, The Tracy L. Neal Trust A and The Evan D. Malone Trust A entered into Amendment No. 1 (the "Malone Agreement Amendment") to the Malone Agreement. The Malone Agreement Amendment corrects certain typographical errors and contains conforming changes based on the final provisions of the Holdings amended and restated certificate of incorporation.

        The foregoing description of the Malone Agreement Amendment is only a summary, does not purport to be complete and is qualified in its entirety by reference to the Malone Agreement Amendment, which is attached as Exhibit 10.2 to this Current Report on Form 8-K and is incorporated herein by reference, and to the Malone Agreement which is filed as Exhibit 10.3 to the May 4, 2009 8-K.

ITEM 5.03    Amendments to Articles of Incorporation or By-laws; Changes in Fiscal Year

        In connection with the Merger Agreement Amendment, DIRECTV has amended its By-Laws to require a Supermajority Vote by its Board to (i) approve the new President and Chief Executive Officer as described above, (ii) expand the size of the Board of Directors beyond twelve members, and (iii) approve the next individual appointed by the Board of Directors of DIRECTV to serve as an independent director and fill the vacancy currently existing on the Board of Directors.

        The foregoing description of the amendment to the By-Laws is only a summary, does not purport to be complete and is qualified in its entirety by reference to the amendment to the By-Laws, which is attached as Exhibit 3.1 to this Current Report on Form 8-K and is incorporated herein by reference.

ITEM 8.01    Other Events

        Mr. Mark D. Carleton has informed the Board of Directors of DIRECTV that he intends to resign from the Board of Directors of DIRECTV effective upon the appointment of Paul A. Gould to the Board of Directors of DIRECTV, so long as Mr. Gould qualifies as an independent director under NASDAQ rules, or, in the event that Mr. Gould is not so appointed, an individual appointed by the Board of Directors of DIRECTV who qualifies as an independent director under NASDAQ rules and whose appointment has been approved by both DIRECTV and LEI.

3



ITEM 9.01    Financial Statements and Exhibits

  (d ) Exhibits.

 

3.1

 

Certificate of Amendment to the By-laws of The DIRECTV Group, Inc.

 

10.1

 

Amendment No. 1, dated as of July 29, 2009, to the Agreement and Plan of Merger, dated as of May 3, 2009, by and among Liberty Media Corporation, Liberty Entertainment, Inc., The DIRECTV Group,  Inc., DIRECTV, DTVG One, Inc. and DTVG Two, Inc.

 

10.2

 

Amendment No. 1, dated as of July 29, 2009, to the Voting and Right of First Refusal Agreement, dated as of May 3, 2009, by and among Liberty Entertainment, Inc., The DIRECTV Group, Inc., DIRECTV, Dr. John C. Malone, Mrs. Leslie Malone, The Tracy L. Neal Trust A and The Evan D. Malone Trust A.

IMPORTANT ADDITIONAL INFORMATION FILED WITH THE SEC

Nothing in this communication shall constitute a solicitation to buy or an offer to sell shares of Liberty Entertainment, Inc., DIRECTV, The DIRECTV Group, Inc. or any of the Liberty Media tracking stocks. The offer and sale of shares in the proposed business combination with Liberty Entertainment, Inc. will only be made pursuant to one or more effective registration statements. Investors and security holders are urged to carefully read the registration statements of Liberty Entertainment, Inc. and DIRECTV filed with the SEC, including the proxy statement/prospectuses contained therein, because they contain important information about these transactions. Investors and security holders are able to obtain free copies of the registration statements and the proxy statements/prospectuses and other documents filed with the SEC by Liberty Entertainment, Inc., DIRECTV, Liberty Media Corporation and The DIRECTV Group, Inc., as the case may be, through the web site maintained by the SEC at www.sec.gov. In addition, investors and security holders will be able to obtain free copies of the Registration Statements and the Proxy Statements/Prospectuses from Liberty Media Corporation by contacting Liberty Media Corporation, 12300 Liberty Boulevard, Englewood, Colorado 80112, Attention: Investor Relations, Telephone (720) 875-5408 or from The DIRECTV Group, Inc. by contacting The DIRECTV Group, Inc., 2230 E. Imperial Highway, El Segundo, CA 90245, Attn: Investor Relations, Telephone (310) 964-0808.

PARTICIPANTS IN A SOLICITATION

The directors and executive officers of The DIRECTV Group, Inc. and other persons may be deemed to be participants in the solicitation of proxies in respect of proposals to approve the transactions. Information regarding the directors and executive officers of each of The DIRECTV Group, Inc. and DIRECTV and other participants in the proxy solicitation and a description of their respective direct and indirect interests, by security holdings or otherwise are available in the proxy materials filed with the SEC.

4



SIGNATURE

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

    THE DIRECTV GROUP, INC.
(Registrant)

Date: July 30, 2009

 

By:

 

/s/ LARRY D. HUNTER

    Name:   Larry D. Hunter
    Title:   Chief Executive Officer

6



EXHIBIT INDEX

Exhibit No.
  Exhibit
    3.1   Certificate of Amendment to the By-laws of The DIRECTV Group, Inc.

 

10.1

 

Amendment No. 1, dated as of July 29, 2009, to the Agreement and Plan of Merger, dated as of May 3, 2009, by and among Liberty Media Corporation, Liberty Entertainment, Inc., The DIRECTV Group,  Inc., DIRECTV, DTVG One, Inc. and DTVG Two, Inc.

 

10.2

 

Amendment No. 1, dated as of July 29, 2009, to the Voting and Right of First Refusal Agreement, dated as of May 3, 2009, by and among Liberty Entertainment, Inc., The DIRECTV Group, Inc., DIRECTV, Dr. John C. Malone, Mrs. Leslie Malone, The Tracy L. Neal Trust A and The Evan D. Malone Trust A.



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