Exhibit 4.25
NOTARIAL DEED
INVESTMENT AND RESTRUCTURING AGREEMENT
THIS AGREEMENT dated for reference the 1st day of October, 2001,
BY AND AMONG:
XXXXXX PARK INTERNATIONAL LIMITED, a body corporate organized under
the laws of the British Virgin Islands, having an address x/x Xxxxx
0000 Xxxxxxxxx Xxxxx, 000 Xxxx Xxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxx
Xxxxxxxx, X0X 0X0
AND:
GARDA INVESTMENTS CORP., a body corporate organized under the laws of
the British Virgin Islands, having an address x/x Xxxxx 0000 Xxxxxxxxx
Xxxxx, 000 Xxxx Xxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxx Xxxxxxxx, X0X 0X0
AND:
MFC BANCORP LTD., a body corporate organized under the laws of the
Yukon Territory, having an address x/x Xxxxx 0000 Xxxxxxxxx Xxxxx, 000
Xxxx Xxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxx Xxxxxxxx, X0X 0X0
AND:
GLAMIOX BETEILIGUNGSVERWALTUNGS GMBH, a body corporate organized under
the laws of Austria, having an address c/o Deloitte & Touche GmbH,
Xxxxxxxxxxxxxxxx 00, X-0000 Xxxxxx, Xxxxxxx
AND:
XXXXX GMBH, a body corporate organized under the laws of Austria,
having an office at Xxxxxxxxx Xxxxx, 00xx Xxxxx, Xxxxxxxxxx 00-00,
X-0000 Xxxxxx, Xxxxxxx
AND:
XXXXXXXX X. XXXXX, businessman, of Xxxxxxxxxxxxx Xxxxxx 00, 0000
Xxxxxx, Xxxxxxx
AND:
XXXXXXXX XXXXX, businessman, of Xxxxxxxxxxxxx Xxxxxx 00, 0000 Xxxxxx,
Xxxxxxx
AND:
XXXXXXXXX XXXXXXXXXX, businessman, of Xxxxxxx 0, 0000 Xxxxxxxx,
Xxxxxxx
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WHEREAS:
X. Xxxxx is a corporation whose principal activities, directly and through its
Subsidiaries, include the production, purchase and sale of pulp and paper, the
purchase and sale of wood products and the smelting of aluminum;
X. Xxxxxx Park is a wholly-owned Subsidiary of MFC, a merchant banking company
that provides financing and specialized banking and corporate finance services
directly and through Subsidiaries, including Xxxxxx Park;
C. Holdco II is a wholly-owned Subsidiary of Holdco I and Holdco I is a
wholly-owned Subsidiary of Xxxxxx Park; and
D. The Parties hereto have agreed to enter into this investment and
restructuring agreement pursuant to which: (i) Xxxxx shall complete a corporate
restructuring and a restructuring of its outstanding indebtedness; (ii) Holdco
II shall acquire all of the capital of Xxxxx; (iii) Xxxxxx Park shall invest in
Holdco II in order to improve the business operations and profitability thereof;
and (iv) the Finance Investors shall each initially receive nominal share
capital in Holdco II in the proportions set out in the Agreed Capital Ratio,
which allocations may be subject to adjustment, all upon and subject to the
terms and conditions set out in this Agreement and the agreements contemplated
herein.
NOW THEREFORE the Parties hereto acknowledge, declare, covenant and agree as
follows:
ARTICLE 1
INTERPRETATION
SECTION 1.1. DEFINITIONS. When used in this Agreement (including the
recitals and schedules hereto) or in any amendment hereto, the following terms
shall, unless otherwise expressly provided, have the following meanings,
respectively:
"AFFILIATE" means, with respect to any Person, any Person directly or indirectly
Controlling, Controlled by or under direct or indirect common Control with such
other Person;
"AGREED CAPITAL RATIO" means the percentage of the nominal share capital of
Holdco II to be allocated among JJHovis, Xxxxxxxxxx and Holdco I, being 4% to
JJHovis, 0.5% to Xxxxxxxxxx and 95.5% to Holdco I;
"AGREEMENT" means this investment and restructuring agreement concluded by and
among the Parties hereto, the Schedules hereto and, upon receipt and approval
thereof by Xxxxxx Park, Holdco I and Holdco II in accordance with the terms
hereof, the Disclosure Statement;
"ALUMETAL" means Alumetal S.P., a body corporate organized under the laws of
Poland, registered in the 8th Commercial Department of the Commercial Register
of the District Court Bielsko-Biala under number RHB 3618;
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"APPLICABLE LAW" means, with respect to any Person, any statute, law, ordinance,
rule, administrative interpretation, regulation, order, writ, injunction,
directive, judgment, decree or other requirement (including any Environmental
Law), all as in effect as of the Closing, of any Governmental Authority
applicable to such Person or any of its Affiliates or any of their respective
properties, assets, officers, directors, employees, consultants or agents (in
connection with such officer's, director's, employee's, consultant's or agent's
activities on behalf of such Person or any of its Affiliates);
"ASSOCIATE" means with respect to any Person (a) any other Person of which such
Person is an officer or partner or is, directly or indirectly, the beneficial
owner of ten percent (10%) or more of any class of equity securities issued by
such other Person, (b) any trust or other estate in which such Person has a ten
percent (10%) or more beneficial interest or as to which such Person serves as
trustee or in a similar fiduciary capacity, and (c) any relative or spouse of
such Person, or any relative of such spouse, who has the same home as such
Person or who is a director or officer of such Person or any Affiliate thereof;
"BANK AUSTRIA" means Bank Austria Aktiengesellschaft;
"BANKING DAY" means any day on which banks are open for business in Vienna,
Austria;
"BUSINESS" means the business as heretofore or currently conducted by the Xxxxx
Group, including the manufacture, purchase and sale of pulp and paper, the
purchase and sale of wood products and the smelting of aluminum;
"CALL AGREEMENT" means a call agreement to be concluded between Holdco I and the
Finance Investors;
"CHF" means Swiss Francs;
"CLOSING" has the meaning ascribed to such term in Section 6.1 hereof;
"CLOSING DATE" means the third Banking Day following the day on which the last
of the conditions precedent set out in Article 5 hereof has been satisfied or
waived, or such later date, subject to Article 7 hereof, as may be agreed upon
by the Parties hereto;
"CLOSING STEPS" means the steps required to be completed on or before the
Closing Date, as more particularly described, and substantially in the sequence
set out, in Article 6 hereof;
"CONFIDENTIAL INFORMATION" means all information of a confidential or
proprietary nature relating to the business, financial or other affairs of any
Party which is not publicly known and includes, without limitation, in respect
of the business and affairs of MFC, Xxxxxx Park, Holdco I and Holdco II, all
such information, whether transmitted in writing, orally, visually,
electronically or by any other means, by any of MFC, Xxxxxx Park, Holdco I or
Holdco II to any other Party hereto in connection with the transactions
contemplated by this Agreement and the Owners' Agreement including, without
limitation, all analyses, compilations, forecasts, studies, financing proposals,
investment and/or restructuring proposals and documentation and draft
documentation relating to or proposed in connection therewith;
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"CONSTATING DOCUMENTS" means, in respect of any Person and as the context
requires, the statutes, constating documents and by-laws, and all amendments
thereto, of such Person;
"CONTAMINANT" means any pollutant, contaminant, waste, hazardous substance,
hazardous material, toxic substance or dangerous good defined, judicially
interpreted or identified in any Environmental Laws, including any that may
impair the quality of any waters;
"CONTROL" over a Person means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of such
Person, whether through the ownership of voting securities or other equity
interests, representation on its board of directors or body performing similar
functions, by contract or otherwise. The terms "CONTROLLING" and "CONTROLLED"
will have corollary meanings;
"DISCLOSURE STATEMENT" means the disclosure statement to be delivered by Xxxxx,
the Xxxxx Stockholders and Finance Investors to Xxxxxx Park, Holdco I and Holdco
II which, upon acceptance and approval by Xxxxxx Park, Holdco I and Holdco II,
shall form a part of this Agreement, such disclosure statement to address
certain matters and qualify certain representations concerning Xxxxx, the Xxxxx
Group and the Business, and the Finance Companies and their respective
businesses, as contemplated herein;
"DISPOSAL" or "DISPOSED" and correlative terms means any disposal by any means,
including dumping, incineration, spraying, pumping, injecting, depositing or
burying;
"ENVIRONMENTAL LAWS" means all national, federal, territorial, provincial,
state, municipal or local statutes, regulations, laws, guidelines, policies or
rules and any order (draft or otherwise), judgment, injunction, decree, award or
writ of any Governmental Authority and the civil or common law, relating in
whole or in part to the environment, and includes those laws relating to the
storage, generation, use, handling, manufacture, processing, transportation,
import, export, treatment, Release or Disposal of any Contaminant and any laws
relating to asbestos or asbestos-containing materials in the environment, in the
workplace or in any building;
"EARN IN" means the culmination of certain rights of the Finance Investors to
earn additional nominal share capital of Holdco II upon the happening of certain
events, all as set out in Schedule "A" hereto;
"ENVIRONMENTAL LIABILITIES" means all Liabilities of a Person (whether such
Liabilities are owed by such Person to Governmental Authorities, third parties
or otherwise) whether currently in existence or arising hereafter that arise
under or relate to any Environmental Laws;
"FINANCE COMPANIES" means ICM, JHT, GBT, HPP, Xxxxx Impex and Xxxxx Canada;
"FINANCE INVESTORS" means JJHovis and Xxxxxxxxxx;
"FINANCIAL STATEMENTS" means, in respect of Xxxxx, the Xxxxx Group and each of
the Finance Companies, financial statements prepared in accordance with or
reconciled to GAAP, including, without limitation, consolidated and
unconsolidated balance sheets, statements of earnings and statements of changes
in financial position;
"FIRMENBUCH" means the Austrian commercial register maintained by the court in
Vienna;
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"GAAP" means accounting principles consistently applied and having general
acceptance among accounting professionals in Austria, from time to time;
"GBT" means Global Bulk Transport GmbH, a body corporate organized under the
laws of Austria, registered under number FN 193086a;
"GOVERNMENTAL AUTHORITY" means any governmental authority, quasi-governmental
authority, instrumentality, court, government or self-regulatory organization,
commission, tribunal or organization or any regulatory, administrative or other
agency, or any political or other subdivision, department or branch of any of
the foregoing;
"GRANDFATHER CONTRIBUTION" has the meaning ascribed to such term in Section 2.2
hereof, payable in Euro or the equivalent amount in CHF;
"HOLDCO I" means Garda Investments Corp., a body corporate organized under the
laws of the British Virgin Islands, registered under number 461461;
"HOLDCO II" means Glamiox Beteiligungsverwaltungs GmbH, a limited liability
company under the laws of Austria, registered under number FN 202518x in the
Firmenbuch;
"HOLDCO II CAPITAL RESTRUCTURING" means the proposed Holdco II capital
restructuring more particularly described in Article 2 hereof in connection with
the transactions contemplated in Article 6 hereof, that shall result in the
Agreed Capital Ratio;
"HOLDCO II FINANCE INVESTORS SHARES" means such portion of the capital of Holdco
II to be allocated to the Finance Investors which, in aggregate, will result in
the Agreed Capital Ratio;
"XXXXX" means Xxxxx GmbH, registered under number FN 356673k;
"XXXXX CANADA" means Xxxxx Canada Inc., a body corporate organized under the
laws of Canada, registered under number 1469204;
"XXXXX CAPITAL" means all of the nominal share capital ("Geschaeftsanteile") of
Xxxxx, consisting, as at the date of this Agreement, of Euro 1,750,000 and to
consist at Closing of Euro 1,750,000 plus the amount of the anticipated increase
in Xxxxx nominal share capital to be effected in accordance with Article 2
hereof;
"XXXXX CLOSING STOCKHOLDERS" means the Finance Investors, being JJHovis and
Xxxxxxxxxx;
"XXXXX CREDIT FACILITIES" means all existing credit agreements, arrangements or
facilities between any member of the Xxxxx Group as borrower, covenantor or
guarantor with any lender, for borrowed money;
"XXXXX GROUP" means Xxxxx and the Xxxxx Subsidiaries;
"XXXXX IMPEX" means Xxxxx Impex Trading srl, a body corporate organized under
the laws of Romania, registered under number J40/209/1997;
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"XXXXX INDEBTEDNESS" means the indebtedness of the Xxxxx Group arising under the
Xxxxx Credit Facilities;
"XXXXX LENDERS" means the creditors under the Xxxxx Credit Facilities as more
particularly described in Schedule "G" hereto;
"XXXXX REORGANIZATION" means a restructuring and reorganization involving Xxxxx,
the Xxxxx Subsidiaries, the Finance Companies, all companies set out in the
corporate chart attached to Schedule "F" and Alumetal, which shall include,
without limitation, the direct or indirect acquisition by Xxxxx of the Finance
Companies, the transfer of Alumetal to Holdco II, the adoption and
implementation of rules of governance, control and management of Xxxxx and each
Xxxxx Subsidiary and amendments to the Constating Documents of the members of
the Xxxxx Group and Finance Companies to reflect the terms and conditions of the
Owners' Agreement or as otherwise agreed by the Parties, all on or before the
Closing Date;
"XXXXX OPENING STOCKHOLDERS" means, collectively, JJHovis and Xxxxxxxx Xxxxx,
being the holders of all of the Xxxxx Capital as at the date of this Agreement;
"XXXXX STOCKHOLDERS" means, collectively, the Xxxxx Closing Stockholders and the
Xxxxx Opening Stockholders;
"XXXXX SUBSIDIARIES" means all direct and indirect Subsidiaries of Xxxxx
including, without limitation, those entities described in Schedule "F" hereto;
"HPP" means Xxxxx Pulp and Paper GmbH, a body corporate organized under the laws
of Austria, registered under number FN 119481h;
"ICM" means IC Management Service GmbH, a body corporate organized under the
laws of Austria, registered under number FN 157535w;
"INFORMATION DOCUMENTS" means, collectively, at any time and in any form,
information provided by Xxxxx, the Xxxxx Stockholders and/or the Finance
Investors or on behalf of Xxxxx, the Xxxxx Stockholders and/or the Finance
Investors, to Xxxxxx Park and/or MFC, in writing, in respect of the Xxxxx Group,
the Finance Companies, Alumetal and/or the Business or businesses of the Finance
Companies or Alumetal, including, without limitation, all summaries, historical
information, certificates and Financial Statements of Xxxxx, any member of the
Xxxxx Group, the Finance Companies and Alumetal, all as from time to time
updated, amended or replaced;
"INSURANCE POLICIES" means all policies of insurance held by Xxxxx with respect
to receivables due or accruing due to Xxxxx from time to time including all
schedules and endorsements thereto;
"INTERIM PERIOD" means the period from and including the date of this Agreement
to and including the Closing Date;
"JHT" means X X Trade & Financial Services GmbH, a body corporate organized
under the laws of Austria, registered under number FN 162523f;
"JJHOVIS" means Xxxxxxxx X. Xxxxx;
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"LIABILITY" means, with respect to any Person, any liability or obligation of
such Person of any kind, character or description, whether known or unknown,
absolute or contingent, accrued or unaccrued, liquidated or unliquidated,
secured or unsecured, joint or several, due or to become due, vested or
unvested, executors, determined, determinable or otherwise and whether or not
the same is required to be accrued on the financial statements of such Person;
"MANAGING DIRECTOR" means any person authorized by Law to represent a Limited
Liability Company (i.e.: Geschaeftsfuehrer);
"MATERIAL AGREEMENTS" means all agreements material to the business of Xxxxx
including, without limitation: (i) all agreements or commitments involving an
obligation to pay Euro 100,000 or more or of a duration greater than one year
(excluding trading contracts entered into in the ordinary course of business
where (a) payments to suppliers are not past due or outside of normal credit
terms and/or (b) where payment from purchasers is secured); (ii) all agreements
or commitments that affect the ownership of, or title to, or any interest in any
real or personal property; (iii) all material agreements relating to long term
take-off agreements and/or agency agreements; (iv) the Insurance Policies; and
(v) all agreements or commitments entered into outside of the ordinary course of
business;
"MATERIAL ADVERSE CHANGE" means, in relation to the Xxxxx Group and the Finance
Companies, any change (or any condition, event or development involving a
prospective change) in the business, operations, affairs, assets, liabilities
(including any contingent liabilities that may arise through outstanding,
pending or threatened litigation or otherwise), capitalization, financial
condition, licenses, permits, rights or privileges, or prospects of any member
of the Xxxxx Group and the Finance Companies which could reasonably be expected
to materially and adversely affect the Xxxxx Group and the Finance Companies,
taken as a whole;
"MFC" means MFC Bancorp Ltd., a body corporate organized under the laws of the
Yukon Territory, Canada, registered under number 25686;
"OWNERS' AGREEMENT" means an owners' agreement to be concluded between Holdco I,
Holdco II, the Finance Investors and Xxxxx in substantially the form appended as
Schedule "H" hereto;
"PARTY" or "PARTIES" shall refer to any Party or Parties to this Agreement with
the exception of MFC;
"PERSON" means an individual, corporation, firm, partnership, limited liability
company, limited liability partnership, association, syndicate, trust, estate or
other entity or organization, including a Governmental Authority;
"PROCEEDING" means any legal or regulatory proceedings to which any member of
the Xxxxx Group is a party;
"RELEASE" means releasing, spilling, leaking, pumping, pouring, emitting,
emptying, discharging, injecting, migrating, escaping, leaching, disposing,
dumping, depositing, spraying, burying, abandoning, incinerating, seeping or
placing, or any similar action defined in any Environmental Laws;
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"SERVICE CONTRACTS" means personal service contracts, in a form and upon terms
satisfactory to Xxxxxx Park, Holdco I and Holdco II, in their sole discretion,
between: (i) JJHovis and Xxxxx and/or Holdco II; and (ii) Xxxxxxxxxx and Xxxxx
and/or Holdco II.
"XXXXXXXXXX" means Xxxxxxxxx Xxxxxxxxxx;
"SUBSIDIARY" means any corporation, partnership, association or other business
entity of which more than 50% of the total voting power of shares of capital
stock entitled (without regard to the occurrence of any contingency) to vote in
the election of directors, managers or trustees thereof, or persons performing
similar functions, is at the time owned or Controlled, directly or indirectly,
by any Person, or one or more of the other Subsidiaries of that Person, or a
combination thereof;
"XXXXXX PARK" means Xxxxxx Park International Limited, a body corporate
organized under the laws of the British Virgin Islands, registered under number
187373;
"TARGET PERIOD" has the meaning ascribed to such term in Schedule "A" hereto;
"TAX" means all taxes wheresoever imposed of any nature including any income
tax, alternative or add-on minimum tax, profits or excess profits tax, franchise
tax, gross income, adjusted gross income or gross receipts tax, employment
related tax (including employee withholding or employer payroll tax or employer
health tax), capital tax, real or personal property tax or ad valorem tax, sales
or use tax, excise tax, stamp tax or duty, any withholding or back up
withholding tax, value added tax, severance tax, prohibited tax, premiums tax,
occupation tax, customs and import duties, together with any interest or any
penalty, addition to tax or additional amount imposed by any Governmental
Authority responsible for the imposition of any such tax or in respect of or
pursuant to any Applicable Law;
"TAX RETURN" means all returns, reports, forms or other information required to
be filed with respect to any Tax;
"TRANSFER INSTRUMENT" means, collectively, resolutions and transfer documents
sufficient to effect the conveyance of the Xxxxx Capital to Holdco II and result
in the Agreed Capital Ratio; and
"U.S. GAAP" means generally accepted accounting principles, in the United
States, consistently applied, that are in effect from time to time.
SECTION 1.2. HEADINGS, ETC. The division of this Agreement into
Articles and Sections and the insertion of headings are for convenience of
reference only and shall not affect the construction or interpretation of this
Agreement.
SECTION 1.3. GENDER AND NUMBER. In this Agreement, words importing the
singular number include the plural and vice versa, and words importing gender
include the masculine, feminine and gender neutral as the context requires.
SECTION 1.4. ACCOUNTING TERMS. All accounting terms not specifically
defined herein shall be construed in accordance with GAAP.
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SECTION 1.5. SCHEDULES. The following schedules and other documents
attached or referred to in this Agreement are an integral part of this
Agreement:
Schedule A - Capital Earn In and Adjustment
Schedule B - Xxxxx and Xxxxx Stockholders Joint and Several Representations and
Warranties
Schedule C - Xxxxx Stockholders Representations and Warranties
Schedule X - Xxxxxx Park, Holdco I and Holdco II Representations and Warranties
Schedule E - Finance Investors Representations and Warranties
Schedule F - List of Xxxxx Subsidiaries and corporate chart
Schedule G - List of Xxxxx Group Lenders
Schedule H - Form of Owners Agreement
Schedule I - Form of Opinion(s) of Counsel to the Xxxxx Group
Schedule J - Intentionally blank
Schedule K - List of Trade Marks of Xxxxx and Xxxxx Group
Schedule L - List of Accounts Receivable and Payable of Xxxxx and the Finance
Companies (other than Xxxxx Impex)
Schedule M - Relevant Litigation, including employee related litigation
Schedule N - Bank Status as of September 25, 2001, including credit and loan
facilities and collateral provided
by Xxxxx, the Xxxxx Group, the
Xxxxx Stockholders and Persons
related thereto and of open foreign
exchange transactions and
derivative transactions
Schedule O - List of Loans and Guarantees
from Third Parties to or for Xxxxx
or any member of the Xxxxx Group,
including from the Xxxxx
Stockholders, other than credit and
loan facilities listed in Schedule
"G"
Schedule P - Organizational Chart of Xxxxx
Schedule Q - List of Persons having Powers to represent Xxxxx, other than those
listed in the Firmenbuch
Schedule R - List of Material Agreements
ARTICLE 2
RESTRUCTURING OF CAPITAL OF HOLDCO II AND
ACQUISITION OF XXXXX CAPITAL
SECTION 2.1. Subject to the terms and conditions hereof, and prior to
the Closing Date, each of Holdco I, Holdco II and Xxxxx shall have complied with
all legal requirements and executed and delivered all Transfer Instruments
necessary or desirable to effect the acquisition by Holdco II of the Xxxxx
Capital, either: (i) by way of a capital increase and issue; or (ii) by way of a
transfer of existing capital of Holdco II from the holdings of Holdco I under,
amongst others, Sections 19(1) and (2) of the Austrian Reorganization Tax Act,
(making use of the option of continuation of book value, "Buchwertfortfuhrung"),
such increased capital or existing and fully paid in capital, as the case may
be, to be issued and/or delivered to the Xxxxx Closing Stockholders in the
respective proportions set out in the Agreed Capital Ratio, in exchange for the
Xxxxx Capital, to the extent possible, on the Closing Date, provided that Holdco
II shall be
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registered as the sole shareholder of Xxxxx in the Firmenbuch, and application
for such registration shall have been made prior to or shall be made as soon as
reasonably practicable following, the Closing. The Xxxxx Closing Stockholders
covenant that all of the capital of Xxxxx shall be transferred to Holdco II free
and clear of all mortgages, liens, charges, pledges, security interests,
encumbrances, claims or demands whatsoever. JJHovis and Xxxxxxxx Xxxxx agree
that Xxxxx and the Xxxxx Group shall be forever entitled to use the name Xxxxx
in the names and business operations of Xxxxx, the Xxxxx Group and any future
Xxxxx Subsidiaries.
SECTION 2.2. Subject to the terms and conditions hereof, Xxxxxx Park
agrees to contribute into the free capital reserves (ungebundene
Kapitalruecklagen) of Holdco II, equity capital in the sum of Euro 7,965,000
(the "Grandfather Contribution") prior to the Closing Date and prior to the
transfer of Xxxxx to Holdco II. The amount of the Grandfather Contribution to be
provided by Xxxxxx Park shall be reduced by the amount, if any, of capital
contributed by Holdco I, in the course of the Holdco II Capital Restructuring,
in order to facilitate or maintain the Agreed Capital Ratio upon completion
thereof.
SECTION 2.3. From and after the Closing, provided the conditions as set
out in Sections 2.2 and 2.3 of Schedule "A" are fulfilled, the Finance Investors
shall be transferred additional nominal share capital in Holdco II as an
adjustment of the consideration payable for the transfer of Xxxxx to Holdco II,
all in accordance with, and subject to the provisions of Article 6 hereof and
Schedule "A" hereto.
SECTION 2.4. MFC shall, as its sole undertakings in this Agreement: (i)
guarantee to JJHovis and Xxxxxxxxxx the payment of the Grandfather Contribution
to Holdco II; (ii) in the event of an earn in of additional share capital of
Holdco II as described in Schedule "A", guarantee the delivery of such
additional share capital in Holdco II from Holdco I to JJHovis and Xxxxxxxxxx;
and (iii) guarantee compliance with the obligations of Holdco I in respect of
the Put Option (as such term is defined in Schedule "A" hereto) pursuant to
Section 2.7 of Schedule "A", all in accordance with the terms and conditions of
this Agreement.
SECTION 2.5. Prior to Closing: (i) JJHovis shall pay Euro 160,000 to
Xxxxx; (ii) and Xxxxxxxxxx, upon becoming a shareholder of Xxxxx, shall pay Euro
20,000 to Xxxxx, in both instances as payment for an unpaid portion of the
nominal share capital of Xxxxx.
SECTION 2.6. Notwithstanding any other provisions hereof, the
transactions contemplated herein shall occur in substantially the sequence set
out in Article 6 hereof.
ARTICLE 3
REPRESENTATIONS AND WARRANTIES
SECTION 3.1. Xxxxx and the Xxxxx Closing Stockholders hereby, in the
form of an independent guarantee (selbstaendiges Schuldversprechen) as of the
date of the Agreement, the Closing Date and the effective date of the transfer
of Xxxxx to Holdco II, jointly and severally represent and warrant as set out in
Schedule "B" hereto (subject only to the qualifications to such representations
and warranties that will be set out in the Disclosure Statement and are accepted
and approved by Xxxxxx Park, Holdco I and Holdco II, pending receipt of which
such representations and warranties shall be unqualified) and acknowledge that
Xxxxxx Park, Holdco I
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and Holdco II are relying on such representations and warranties in entering
into and performing their obligations under this Agreement.
SECTION 3.2. The Xxxxx Stockholders hereby, as of the date of the
Agreement, the Closing Date and the effective date of the transfer of Xxxxx to
Holdco II, further jointly and severally represent and warrant as set out in
Schedule "C" hereto and acknowledge that Xxxxxx Park, Holdco I and Holdco II are
relying on such representations and warranties in entering into and performing
their obligations under this Agreement. Notwithstanding anything else to the
contrary set out herein, Xxxxxxxx Xxxxx shall be liable only regarding
representations and warranties set out in Schedule "C" hereto given with regard
to the ownership and status of his Xxxxx Capital.
SECTION 3.3. Xxxxxx Park, Holdco I and Holdco II hereby, in the form of
an independent guarantee (selbstaendiges Schuldversprechen), as of the date of
the Agreement, the Closing Date and the effective date of the transfer of Xxxxx
to Holdco II, jointly and severally represent and warrant as set out in Schedule
"D" hereto and acknowledge that Xxxxx, the Xxxxx Stockholders and the Finance
Investors are relying on such representations and warranties in entering into
and performing their obligations under this Agreement.
SECTION 3.4. The Finance Investors hereby, as of the date of the
Agreement, the Closing Date and the effective date of the transfer of Xxxxx to
Holdco II, jointly and severally represent and warrant as set out in Schedule
"E" hereto (subject only to the qualifications to such representations and
warranties that will be set out in the Disclosure Statement and are accepted and
approved by Xxxxxx Park, Holdco I and Holdco II, pending receipt of which such
representations and warranties shall be unqualified) and acknowledge that Xxxxxx
Park, Holdco I and Holdco II are relying on such representations and warranties
in entering into and performing their obligations under this Agreement.
SECTION 3.5. Any claims by any Party arising from any representations
or warranties set out herein are subject to a limitation period
("Verjaehrungsfrist") ending December 31st, 2004, provided that any claim
resulting from a breach of warranty regarding a tax matter shall be subject to a
limitation period of six months following the date of a final and binding tax
assessment concerning the relevant taxes or public charges. The limitations set
out in this Section 3.5 shall not apply in respect of claims relating to tax
evasion or arising out of gross negligence.
SECTION 3.6. MFC hereby represents and warrants as follows:
(i) MFC's financial statements for the year ended December 31,
2000 have been prepared in accordance with U.S. generally
accepted accounting principles and present fairly in all
material respects the financial position of MFC and the
results of its operations and cash flows for the fiscal year
ended on December 31, 2000.
(ii) MFC's interim financial statements for the period ended June
30, 2001 have been prepared in accordance with U.S. generally
accepted accounting principles and present fairly in all
material respects the financial position of MFC as of such
dates and the results of operations and cash flows for the
six-month period ended on June 30, 2001.
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(iii) All statements of fact set forth in all documents filed by MFC
with all regulatory authorities are true and correct in all
material respects as at the date given.
ARTICLE 4
COVENANTS
SECTION 4.1 CONDUCT OF THE BUSINESS. Other than with the express
written approval of Xxxxxx Park, during the Interim Period Xxxxx shall, and
Xxxxx shall cause the Xxxxx Group to, and the Xxxxx Opening Stockholders shall,
and upon transfer of the interest of Xxxxxxxx Xxxxx in Xxxxx to JJHovis, the
Xxxxx Closing Stockholders shall, cause Xxxxx and the Xxxxx Group to, conduct
the Business in the ordinary course consistent with past practice and shall use
their respective best efforts to preserve intact the organization, relationships
with third parties and goodwill of the Xxxxx Group and keep available the
services of the present officers, employees, agents and other personnel of the
Business and, without limiting the foregoing, during the Interim Period, other
than with the express written approval of Xxxxxx Park:
(i) Xxxxx and the Xxxxx Group shall not, and the Xxxxx Opening
Stockholders shall not, and upon transfer of the interest of
Xxxxxxxx Xxxxx in Xxxxx to JJHovis, the Xxxxx Closing
Stockholders shall not, cause Xxxxx or any member of the Xxxxx
Group to:
(a) adopt any material change in any method of accounting
or accounting practice used by Xxxxx other than by
reason of a contemplated change in accounting
methodology from GAAP to U.S. GAAP;
(b) amend its Constating Documents;
(c) except in the ordinary course of business consistent
with past practice or as required by collective
bargaining agreements in effect, enter into or amend
any (individual or collective) employment, bonus,
severance or retirement or employee benefit plan,
contract, policy, practice or arrangement, or
increase any salary or other form of compensation
payable or to become payable to any executives or
employees of the Xxxxx Group;
(d) sell, mortgage, pledge or otherwise dispose of any
substantial assets or properties of the Xxxxx Group;
(e) declare, set aside or pay any management fee or
dividend or make any other distribution with respect
to the Xxxxx Capital or otherwise make a distribution
or payment to any of the Xxxxx Stockholders or any
Associate or Affiliate thereof;
(f) amalgamate, merge or consolidate with or agree to
amalgamate, merge or consolidate with, or purchase or
agree to purchase all or substantially all of the
assets of, or otherwise acquire, any corporation,
partnership or other business organization or
division thereof;
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(g) except as required by this Agreement, authorize for
issuance, issue, sell or deliver any capital stock of
any member of the Xxxxx Group, of any class, or any
securities or obligations convertible into shares of
such capital stock, or commit to doing any of the
foregoing;
(h) split, combine or reclassify any of the capital of
any member of the Xxxxx Group, or redeem or otherwise
acquire, directly or indirectly, any such capital;
(i) incur or agree to incur any debts or guarantee any
debts for borrowed money, including any debt to any
Xxxxx Stockholder, or to any Affiliate or Associate
of any Xxxxx Stockholder, except debts incurred in
the ordinary course of business consistent with past
practice and not to exceed in aggregate Euro
1,000,000;
(j) make any loan, advance or capital contribution to or
investment in any Person other than loans, advances
and capital contributions to or investments in joint
ventures or other similar arrangements in which a
member of the Xxxxx Group has an equity interest in
the ordinary course of business and travel advances
made in the ordinary course of business by members of
the Xxxxx Group to its employees to meet business
expenses expected to be incurred by such employees;
(k) other than the proposed settlement of outstanding
litigation involving August Ristelhueber GmbH & Co.
KG on terms satisfactory to Xxxxxx Park, enter into
any settlement with respect to any Proceeding, or
consent to any order, decree or judgment relating to
or arising out of any such Proceeding;
(l) take any action to terminate, dismiss or cause the
retirement of any key employee of any member of the
Xxxxx Group;
(m) fail in any material respect to comply with any
Applicable Laws; and
(n) make, or make any commitments for, capital
expenditures exceeding 100,000 Euros for all such
commitments taken in the aggregate.
(ii) During the Interim Period, other than with the express written
approval of Xxxxxx Park, Xxxxx and the Xxxxx Group shall, and
the Xxxxx Opening Stockholders shall, and upon transfer of the
interest of Xxxxxxxx Xxxxx in Xxxxx to JJHovis, the Xxxxx
Closing Stockholders shall, cause Xxxxx and the Xxxxx Group
to:
(a) file all Tax Returns required to be filed and make
timely payment of all applicable Taxes when due;
(b) promptly notify Xxxxxx Park in writing of any action
or circumstance that results in, or could reasonably
be expected to result in, a Material Adverse Change
or the occurrence of any breach by Xxxxx or any Xxxxx
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Stockholder of any representation or warranty, or any
covenant or agreement contained in this Agreement;
and
(c) promptly notify Xxxxxx Park in writing of the
commencement of any Proceeding or the threat thereof
by or against Xxxxx, any member of the Xxxxx Group or
any Xxxxx Stockholder.
SECTION 4.2. During the Interim Period, Xxxxx will allow Xxxxxx Park
and its agents reasonable access to the files, books, records, properties,
assets, operations, personnel and offices of the Xxxxx Group and the Finance
Companies and will provide Xxxxxx Park with any and all information reasonably
requested relating to Taxes, commitments, contracts, leases, licenses, real
property, personnel and intangible property, financial condition, results of
operations, business and prospects (including forecasts and projections), of the
Xxxxx Group and the Finance Companies and will cause its accountants, agents and
other advisors to co-operate with Xxxxxx Park and its agents in making all such
information available.
SECTION 4.3. Xxxxx, the Finance Investors and Xxxxxxxx Xxxxx, for so
long as he is a shareholder of Xxxxx, shall promptly inform Xxxxxx Park in
writing, during the Interim Period, of the full particulars of any material
change or of any change in any material fact contained or referred to in the
Information Documents, which is, or may be, of such a nature as to make any
statement of such fact a misrepresentation or untrue, false or misleading or
result in a misrepresentation therein or in this Agreement or any other
agreement to which Xxxxxx Park, and/or Holdco II, Xxxxx and/or the Finance
Investors are party. If Xxxxx, the Xxxxx Stockholders or the Finance Investors
are uncertain as to whether a material change (actual, anticipated or
threatened) as aforesaid has occurred, such Party, as applicable, shall promptly
inform Xxxxxx Park of the full particulars of the event giving rise to the
uncertainty. In the event that, in the reasonable opinion of Xxxxxx Park, such a
material change has occurred, Xxxxxx Park may terminate its obligations under
this Agreement in the manner contemplated by Article 7 hereof.
SECTION 4.4. During the Interim Period, other than with the express
written approval of Xxxxxx Park, the Finance Investors shall cause each of the
Finance Companies to conduct their respective businesses in the ordinary course
consistent with past practices and shall cause each of the Finance Companies to
use their respective best efforts to preserve intact the organizations,
relationship with third parties and goodwill of each of the Finance Companies
and keep available the services of the present officers, employees, agents and
other personnel of each of the Finance Companies and, without limiting the
generality of the foregoing, during the Interim Period, shall cause each of the
Finance Companies, other than with the express written approval of Xxxxxx Park
to comply with each of the covenants relating to the conduct of Business set out
in Section 4.1 hereof, mutatis mutandis, as though such provisions made
reference to the Finance Companies rather than the Xxxxx Group and made
reference to the Finance Investors rather than the Xxxxx Opening Stockholders
and/or the Xxxxx Closing Stockholders, as the case may be. For greater
certainty, each of the restrictions set out in Section 4.1(i)(a) through (n) and
4.1(ii)(a) through (c) inclusive shall apply to the Finance Companies, mutatis
mutandis.
SECTION 4.5. On or before the Closing Date, the nominal share capital
of Holdco II being a nominal share capital of Euro 35,000, will be fully paid in
and Holdco II's Constating Documents will substantially reflect the applicable
terms and conditions outlined in the Owners' Agreement.
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SECTION 4.6. Each of the Parties hereto shall keep all Confidential
Information secret and confidential and shall not, without the prior written
consent of the Party or Parties whose Confidential Information may be affected,
disclose any such information to anyone except to those employees, directors,
officers, agents and outside advisors ("Representatives") who require such
Confidential Information to perform their duties in connection with this
Agreement, the Owners' Agreement and the transactions contemplated hereby and
thereby. Without limiting the generality of the foregoing, no Party hereto will
disclose any terms or conditions of this Agreement and/or the Owners' Agreement
to any Person except its Representatives. Each Party hereto covenants and agrees
to be responsible for any breach of this Agreement by any of its
Representatives. Confidential Information may be disclosed without such prior
written consent only if required by law. If any Party is requested in any
proceeding to disclose any Confidential Information, such person will provide
the other Parties whose Confidential Information is affected with prompt prior
notice to enable such Parties to seek a protective order or other appropriate
remedy and/or waive compliance with the provisions of this Agreement. In the
event that such protective order is unavailable or another appropriate remedy is
not obtained, the Parties hereto covenant and agree that they and their
Representatives will furnish only that portion of the Confidential Information
which such Party is advised by written opinion of counsel is legally required to
be so disclosed, that such Party will give the other Parties hereto whose
Confidential Information is affected written notice of the information to be
disclosed as far in advance as practicable, and will exercise best efforts to
obtain a protective order or other reliable assurance that confidential
treatment will be accorded to the Confidential Information so disclosed.
SECTION 4.7. During the Interim Period, Xxxxx and the Xxxxx
Stockholders shall not, directly or indirectly, through any officer, director,
employee, agent, representative or advisor:
(a) engage in any discussions or negotiations relating to any
transactions similar to, or that may be entered into as an
alternative to, the transactions contemplated by this
Agreement and/or the Owners' Agreement;
(b) solicit, initiate, invite or encourage the initiation of any
inquiries or proposals regarding any transactions similar to
or alternative to the transactions contemplated by this
Agreement and/or the Owners' Agreement from any Person; or
(c) accept, approve, recommend or enter into an agreement,
arrangement or understanding with any Person relating to or
contemplating any transaction similar to or alternative to the
transactions contemplated by this Agreement and/or the Owners
Agreement.
ARTICLE 5
CONDITIONS
SECTION 5.1. The obligations of Xxxxxx Park, Holdco I and Holdco II
hereunder, including, without limitation, the obligation of Holdco II to
authorize the issue of, or the obligation of Holdco I to transfer, the Holdco II
Finance Investors Shares to the Finance Investors, and/or of Holdco II to accept
the transfer of the Xxxxx Capital, shall be subject to the accuracy of the
representations and warranties of Xxxxx, the Xxxxx Stockholders and the Finance
Investors herein
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contained as of the date hereof and as of the Closing Date, to the due
fulfillment of and compliance with the covenants of Xxxxx, the Xxxxx
Stockholders and the Finance Investors herein contained and to the following
additional conditions:
1. On or before October 25, 2001 Xxxxxx Park, Holdco I and Holdco
II shall have received the Disclosure Statement and on or
before the Closing Date Xxxxxx Park, Holdco I and Holdco II
shall, in their sole discretion, have approved and accepted
the contents thereof and shall have notified Xxxxx, the Xxxxx
Stockholders and the Finance Investors in writing of such
approval and acceptance.
2. on or before the Closing Date, Xxxxxx Park, Holdco I and
Holdco II shall have completed their due diligence review of
the operations and financial condition of the Xxxxx Group and
the Finance Companies and shall be satisfied, in its sole
discretion, with the results of such review, and shall have so
advised each of the other Parties, in writing;
3. on or before the Closing Date, the Closing Steps shall have
each occurred to the satisfaction of Xxxxxx Park, Holdco I and
Holdco II, in substantially the sequence and as described in
Article 6 hereof;
4. on or before the Closing Date, Xxxxx shall have completed or
agreed to complete a restructuring of the Xxxxx Indebtedness
on terms and conditions satisfactory to Xxxxxx Park, Holdco I
and Holdco II in their sole discretion, pursuant to which
Xxxxx shall, amongst other things, have provided a complete
list of all lenders, providing substantial credit or loan
facilities, to Xxxxx and Xxxxx Group which are entitled to
terminate or materially amend or change any such credit or
loan facilities due to change of control or change of
ownership clauses, and all such clauses shall be waived by the
respective lenders;
5. on or before the Closing Date, Xxxxx shall have completed the
Xxxxx Reorganization;
6. on or before the Closing Date, Holdco I, Holdco II, Xxxxx and
the Finance Investors shall have entered into the Owners'
Agreement;
7. on or before the Closing Date, Xxxxxxxxxx, JJHovis, Xxxxx
and/or Holdco II shall have entered into the Service
Contracts;
8. on or before the Closing Date, Holdco I and the Finance
Investors shall have entered into a Call Agreement granting
Holdco I the irrevocable right to purchase all of the nominal
share capital of the Finance Investors in Holdco II for a
fixed purchase price of Euro 160,000 for the interest held by
JJHovis and Euro 20,000 for the interest held by Xxxxxxxxxx
if: (i) the Finance Investors did not successfully achieve the
Earn In within the Target Period; or (ii) the right to Earn In
is terminated prior to expiration of the Target Period;
9. on or before the Closing Date, the transactions contemplated
by this Agreement, including, without limitation, the Xxxxx
Reorganization and the execution and delivery by the Parties
hereto of this Agreement and by Holdco I, Holdco II, Xxxxx
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and the Financial Investors of the Owners' Agreement shall
have been approved in writing by the Xxxxx Lenders, upon terms
and conditions satisfactory to Xxxxxx Park, in its sole
discretion;
10. the representations and warranties of Xxxxx, the Xxxxx
Stockholders and the Finance Investors herein contained shall
be true and correct in all materials respects on the Closing
Date, with the same force and effect as if such
representations and warranties were made on the Closing Date
and each of Xxxxx, the Xxxxx Stockholders and the Finance
Investors shall have delivered to Xxxxxx Park, Holdco I and
Holdco II, in the case of Xxxxx a certificate signed by each
of the Managing Directors of Xxxxx, dated the Closing Date,
and in respect of the Xxxxx Stockholders and the Finance
Investors, certificates from such Parties, in each case
addressed to Xxxxxx Park, Holdco I and Holdco II, certifying,
for and on behalf of each such Party that, to the best of its
knowledge, information and belief, after having made due
enquiry:
(a) the representations and warranties of Xxxxx, the
Xxxxx Stockholders and the Finance Investors, as
applicable, contained in this Agreement are true and
correct in all material respects as of the Closing
Date with the same force and effect as if made at and
as of the Closing Date after giving effect to the
transactions contemplated hereby; and
(b) Xxxxx, the Xxxxx Stockholders and the Finance
Investors, as applicable, have each duly complied
with all covenants and satisfied all the conditions
herein contained to be performed or satisfied by it
at or prior to the Closing Date, except to the extent
that the same have been waived by Xxxxxx Park
pursuant to Section 7.1.
11. on or before the Closing Date, any waiting period applicable
to the transactions contemplated hereby under any applicable
merger control law shall have terminated or expired and any
consent to be obtained from any competent merger control
authority shall have been obtained, upon terms satisfactory to
Xxxxxx Park, in its sole discretion;
12. as at the Closing Date, no law or decision of any court or
Governmental Authority shall have been enacted or entered
which prohibits, restrains, enjoins or restricts the
consummation of the transactions contemplated by this
Agreement or the agreements contemplated hereby;
13. on or before the Closing Date, there shall have been obtained
from all appropriate Governmental Authorities all permits,
consents, approvals, certificates, registrations and
authorizations, if any, as are required to be obtained to
permit the change of ownership of the Xxxxx Capital
contemplated hereby;
14. on or before the Closing Date, JJHovis shall have delivered a
document executed by Bank Austria providing that the Xxxxx
Capital held by JJHovis and which had previously been pledged
to Bank Austria has been released from such pledge and that it
does not hold any further interest in such Xxxxx Capital;
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15. as at the Closing Date, the Xxxxx Capital to be acquired at
Closing by Holdco II shall be the only share capital
(Geschaeftsanteile) of Xxxxx and shall have been paid in, in
the amount shown in the "Firmenbuch", which shall be not less
than Euro 1,529,055.50 currently paid in, plus Euro 160,000 to
be paid by JJHovis and Euro 20,000 to be paid by Xxxxxxxxxx
pursuant to Section 2.5 of this Agreement plus any amount
resulting from a capital increase in Xxxxx in the course of
the Xxxxx Reorganization;
16. on or before the Closing Date, the Articles of Association
(Gesellschaftsvertrag) of Holdco II and Xxxxx shall have been,
to the extent practicable, conformed to incorporate the
relevant provisions applicable to each such corporation set
out in the Owners' Agreement, and the Parties shall have
completed all formalities, including, without limitation,
attending upon the notarization of this Agreement and the
Owners' Agreement, as Xxxxxx Park deems necessary or desirable
to give full legal effect to this Agreement and the Owners'
Agreement;
17. during the Interim Period, there shall not have occurred any
Material Adverse Change;
18. on and dated as at the Closing Date, Xxxxxx Park, Holdco I and
Holdco II shall have received favourable legal opinions from
counsel to the Xxxxx Group, dated the Closing Date, in form
and content satisfactory to Xxxxxx Park, in its sole
discretion, with respect, inter alia, to the matters set out
in Schedule "I" hereto;
19. on or before the Closing Date, JJHovis and Xxxxxxxxxx shall
have delivered to Holdco I a notarized power of attorney with
respect to the undertaking set out in Section 2.5 of the
Owners' Agreement and the letter in the form of Schedule "C"
to the Owners' Agreement.
SECTION 5.2. The obligations of Xxxxx and the Xxxxx Stockholders hereunder shall
be subject to the condition that, on or before the Closing Date, Xxxxxx Park,
Holdco I and Holdco II shall have provided to Xxxxx and the Xxxxx Stockholders
written confirmation of the completion of, or of the agreement to complete, the
restructuring of the Xxxxx Indebtedness, as contemplated by and in accordance
with Section 5.1(4) of this Agreement, a result of which shall be the
termination following Closing of all personal liability of JJHovis in relation
to that portion of the Xxxxx Indebtedness that is in favour of Creditanstalt Ag.
ARTICLE 6
CLOSING
SECTION 6.1. Subject to the satisfaction or waiver of all conditions
precedent set out in Article 5, the closing (the "Closing") shall be held on the
Closing Date.
SECTION 6.2. On or before the Closing Date, the following shall occur
or have occurred in substantially the following sequence:
1. Xxxxxxxx Xxxxx shall transfer or have transferred all of his
interest in Xxxxx, including all capital of Xxxxx held by
Xxxxxxxx Xxxxx to JJHovis, free and clear of
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all mortgages, liens, charges, pledges, security interests,
encumbrances, claims or demands whatsoever;
2. the Finance Investors shall transfer or have transferred all
of their interests in ICM and HPP, including all capital of
ICM and HPP, which capital shall be fully paid in, to Xxxxx,
free and clear of all mortgages, liens, charges, pledges,
security interests, encumbrances, claims or demands
whatsoever, in consideration of share capital of Xxxxx to be
issued in the course of a capital increase thereof in
connection with the acquisition of the interests of the
Finance Investors in ICM and HPP;
3. To the extent legally possible, Xxxxx shall have caused Xxxxx
Poland Sp.z o.o. to transfer or have transferred all of its
interest in Alumetal, including all capital of Alumetal to
Holdco II, free and clear of all mortgages, liens, charges,
pledges, security interests, encumbrances, claims or demands
whatsoever, in consideration of One (1) Euro;
4. the Finance Investors shall transfer or have transferred all
of their interest in JHT, GBT, Xxxxx Impex and Xxxxx Canada,
including all capital of JHT, GBT, Xxxxx Impex and Xxxxx
Canada to Xxxxx free and clear of all mortgages, liens,
charges, pledges, security interests, encumbrances, claims or
demands whatsoever, in consideration of one (1) Euro;
5. JJHovis shall contribute or have contributed Euro 160,000 and
Xxxxxxxxxx shall contribute or have contributed Euro 20,000,
as payment into the nominal share capital, to Xxxxx;
6. the Grandfather Contribution shall be advanced by Xxxxxx Park
to Holdco II;
7. the Finance Investors and all other Persons so required shall
have executed all corporate acts necessary or desirable to
fully effect the Holdco II Restructuring and in consequence
thereof, the Finance Investors shall transfer or have
transferred, subject only to any post-closing registration
requirements, all of their interests in Xxxxx, including all
of the Xxxxx Capital, to Holdco II, free and clear of all
mortgages, liens, charges, pledges, security interests,
encumbrances, claims or demands whatsoever, in consideration
of capital of Holdco II in the applicable proportions of the
Agreed Capital Ratio;
8. the Parties hereto shall have, in the form required by law,
executed all documents, agreements, certificates, instruments
and applications required under the Applicable Law, to effect
the share transfers, capital increases and subscriptions for
capital provided for in this Agreement; and
9. the Parties hereto shall deliver or have delivered each of the
documents, agreements, certificates and instruments required
to be delivered as conditions to Closing pursuant to Article 5
hereof.
SECTION 6.3. The Closing shall not occur, nor shall the documents
tabled for delivery at the Closing be delivered, until all conditions of the
Closing have been fulfilled or waived, all
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Closing Steps have been completed and all things are done as need be done to
permit contemporaneous closing of the transactions contemplated by and provided
for herein.
ARTICLE 7
TERMINATION OF THE AGREEMENT
SECTION 7.1. Xxxxx, the Xxxxx Stockholders and the Finance Investors
jointly and severally agree that the conditions contained in Article 5 hereof
will be complied with so far as the same relate to acts to be performed or
caused to be performed by Xxxxx, by the Xxxxx Stockholders, or by the Finance
Investors, that they will use their best efforts to cause such conditions to be
complied with and that if any of the said conditions are not complied with,
Xxxxxx Park, Holdco I and Holdco II may give notice to Xxxxx, the Xxxxx
Stockholders and the Finance Investors as hereinafter provided terminating their
obligations hereunder and in such event the obligations of the Parties hereunder
and pursuant to any documents or agreements contemplated hereby shall be at an
end. It is understood that Xxxxxx Park, Holdco I and Holdco II may waive in
whole or in part non-compliance with any of the conditions contained herein or
extend the time for compliance therewith without prejudice to their rights in
respect of any other condition or conditions or any other or subsequent breach
or non-compliance, provided that any such waiver or extension shall be binding
upon Xxxxxx Park, Holdco I and Holdco II only if the same is in writing.
SECTION 7.2. Any termination pursuant to the provisions hereof shall be
effected by notice in writing delivered or telecopied to Xxxxx and the Xxxxx
Stockholders at their respective addresses as herein set out. The right of
Xxxxxx Park, Holdco I and Holdco II to so terminate this Agreement is in
addition to such other remedies as they may have in respect of any default,
misrepresentation, act or failure to act of Xxxxx and the Xxxxx Stockholders in
respect of any of the matters contemplated by this Agreement.
SECTION 7.3. The termination of this Agreement by either of Xxxxxx
Park, Holdco I or Holdco II will terminate and cancel all obligations of each of
the Parties hereto in accordance with the provisions of this Article 7.
SECTION 7.4. Each of Xxxxxx Park, Holdco I and Holdco II may terminate
this Agreement by notice in writing to each of the remaining Parties hereto if
all of the conditions to Closing set out in Article 5 hereof are not satisfied,
or waived in writing by each of Xxxxxx Park, Holdco I and Holdco II, on or
before November 15, 2001 but in no event prior to a 30 day period following
proper and complete notification of the transaction to the competent authority
(Kartellgericht beim Oberlandesgericht Wien), except when approval by such
competent authority is granted prior to the expiry of such period of time, and
this Agreement shall automatically terminate if all of the conditions to Closing
set out in Article 5 hereof are not satisfied, or waived in writing by each of
Xxxxxx Park, Holdco I and Holdco II, on or before December 31, 2001.
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ARTICLE 8
EXPENSES
SECTION 8.1. All costs and expenses of or incidental to this Agreement
are to be assumed and paid by the Party incurring same, with each Party to bear
its own costs in respect thereof. For greater certainty, the Parties acknowledge
that the legal fees of Xx. Xxxxx incurred up to September 30, 2001 will be paid
by Xxxxx and thereafter will be borne by JJHovis.
ARTICLE 9
REMEDIES AND INDEMNIFICATION
SECTION 9.1. If any representation or warranty by Xxxxx, any of the
Xxxxx Stockholders or any of the Finance Investors provided for in this
Agreement is inaccurate, such Parties shall jointly and severally indemnify
Xxxxxx Park and Holdco II from and after the Closing for any financial prejudice
which would not exist or arise if such representation and warranty were
accurate, provided that Xxxxxxxx Xxxxx shall severally so indemnify such Parties
only, and only in respect of any representation or warranty personally made by
him, such indemnity obligations to exist and apply regardless of whether or not
any inaccuracy is attributable to negligence or otherwise.
Xxxxxx Park and Holdco II shall give Xxxxx, the Xxxxx Stockholders
and/or the Finance Investors or any Person designated by any such Party the
opportunity to repair or remedy any breach of a warranty or representation
within 30 days. The failure to do so does not bar any claims of Xxxxxx Park
and/or Holdco II for indemnification. Xxxxxx Park and Holdco II shall co-operate
with and provide reasonable assistance to Xxxxx, the Xxxxx Stockholders, the
Finance Investors or the Person designated by any such Party in any effort to
effect such repair.
Xxxxxx Park and/or Holdco II shall only be entitled to assert claims
under this Article 9 for a breach of representations and warranties if the
amount of the financial prejudice exceeds Euro 50,000 in each individual case.
To the extent that several claims of the same or a similar nature are based on
the same kind of factual circumstances, such claims shall constitute one
individual claim within the meaning of the preceding sentence. Upon the
occurrence of one or more claims of a similar or dissimilar nature, and whether
based upon similar or divergent factual circumstances, where the amount of the
financial prejudice incurred by Xxxxxx Park and/or Holdco II exceeds in
aggregate, under all such claims, Euro 200,000, Xxxxxx Park and/or Holdco II, as
the case may be, shall be entitled to assert claims under this Article 9 for the
full amount of all such claims.
All claims made by Xxxxxx Park and/or Holdco II hereunder shall be made
in writing as set out in Article 10 hereof from such Party to Xxxxx, the Xxxxx
Stockholders and/or the Finance Investors, as the case may be, describing in
reasonable detail the nature of the claim and including if possible a good faith
estimate of the amount involved; such notice shall be made no later than 90 days
after the date on which Xxxxxx Park and/or Holdco II, as the case may be, has
gained knowledge of the basis for its claim.
ARTICLE 10
NOTICE
SECTION 10.1. Any notice required or permitted to be given hereunder to
Xxxxx shall be given to Xxxxx by delivering a notice in writing addressed to
Xxxxx at its office at Xxxxxxxxx Xxxxx, 00xx Xxxxx, Xxxxxxxxxx 00-00, X-0000
Xxxxxx, Xxxxxxx, Attention: Xxxxxxxx Xxxxx or by
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forwarding a telecopy to Xxxxx at such address (telecopier no. 43 1 24025 255).
Any notice required or permitted to be given hereunder to Xxxxxxxx Xxxxx in his
individual capacity as a Xxxxx Stockholder shall be given by delivering a single
notice in writing addressed to Xxxxxxxx Xxxxx at Austria 1180 Vienna,
Schonbrunner Graben 94 or by forwarding a telecopy to Xxxxxxxx Xxxxx at such
address (telecopier no. 43 1 24025 255). Any notice required or permitted to be
given hereunder to JJHovis in his individual capacity, as a Finance Investor, as
a Xxxxx Closing Stockholder and/or as an Optionee (as such term is defined in
Schedule "A" hereto) shall be given by delivering a single notice in writing
addressed to JJHovis at Austria 1180 Vienna, Schonbrunner Graben 94 or by
forwarding a telecopy to JJHovis at such address (telecopier no. 43 1 24025
255). Any notice required or permitted to be given hereunder to Xxxxxxxxxx in
his individual capacity, as a Finance Investor, as a Xxxxx Closing Stockholder
and/or as an Optionee shall be given by delivering a single notice in writing
addressed to Xxxxxxxxxx at Austria 8101 Gratkorn, Augasse 6 or by forwarding a
telecopy to Xxxxxxxxxx at such address (telecopier no. 43 3124 23199). Any
notice required or permitted to be given hereunder to Xxxxxx Park, Holdco I or
Holdco II shall be given by delivering a notice in writing addressed to Xxxxxx
Park, Holdco I or Holdco II at their respective addresses set out on the first
page of this Agreement, Attention: President, in each case with a copy to
Sangra, Moller at Suite 1000, 000 Xxxx Xxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxx
Xxxxxxxx, X0X 0X0 or by forwarding a telecopy to Xxxxxx Park, Holdco I or Holdco
II at such address (telecopier no. (000) 000-0000 in respect of Xxxxxx Park and
Holdco I and telecopier no. Deloitte & Touche, Vienna, 0043-1-58854-5699
(Attention: X. Xxxxxx) in respect of Holdco II), with a copy to Sangra, Moller
at its address (telecopier no. (000) 000-0000). Any such notice shall be deemed
to have been given and received at the time of delivery or at the time the
telecopy was sent, as the case may be.
ARTICLE 11
MISCELLANEOUS
SECTION 11.1. Time shall be of the essence of this Agreement.
SECTION 11.2. It is understood and agreed that all warranties,
representations, covenants, indemnities and agreements of the Parties herein
contained or contained in any certificates or documents submitted pursuant to or
in connection with the transactions herein referred to shall survive the
acquisition by Holdco II of the Xxxxx Capital, the completion of the other
transactions contemplated herein, and the termination of this Agreement and
shall continue in full force and effect for the benefit of the Parties
regardless of any investigation by or on behalf of the Parties with respect
thereto for a period of three years following the Closing Date.
SECTION 11.3. This Agreement shall be governed by the laws of the
Federal Republic of Germany as in force and effect as of the date of signing of
this Agreement. In addition, the Parties acknowledge that to the extent certain
corporate matters comprising part of the Xxxxx Reorganization must comply with
and be governed by Austrian Law, such matters shall be so governed.
SECTION 11.4. The English version of this Agreement and all agreements
to be delivered in connection herewith shall be the only governing version and
shall be authoritative.
SECTION 11.5. The Parties and MFC irrevocably agree that any disputes
which may arise out of or in connection with this Agreement, or any transaction
contemplated hereby shall be settled by arbitration in Vienna, Austria, in
accordance with the following rules.
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The arbitral tribunal shall consist of two arbitrators and the
presiding arbitrator, each of whom shall be fluent in English and may be of
German, Austrian, U.S. or Canadian nationality. The Party intending to institute
arbitration proceedings shall inform the other Party in writing of its intention
and, at the same time, designate one arbitrator. The other Party shall, within
30 days after receipt of this notice, designate a second arbitrator. If, within
such time period, the other Party has not designated a second arbitrator, then
at the request of the Party intending to institute arbitration proceedings, the
second arbitrator shall be appointed by the International Chamber of Commerce,
acting as appointing authority. The two arbitrators thus appointed shall choose
the presiding arbitrator. If, within 30 days after the appointment of the second
of the two arbitrators, the two arbitrators have not agreed upon the choice of
the presiding arbitrator, then at the request of either Party to the arbitration
proceedings, the presiding arbitrator shall be appointed by the International
Chamber of Commerce.
All submissions and awards in relation to arbitration under this
Agreement shall be made in English and all arbitration proceedings and all
pleadings shall be in English. Original documents in English or German may be
submitted as evidence in their original language; witnesses not fluent in
English may give evidence in their native tongue (with appropriate translation).
Original documents in a language other than English or German shall be submitted
as evidence in English translation accompanied by the original or a true copy
thereof.
The Parties to this Agreement hereby adopt the rules of the International
Chamber of Commerce as the procedural rules governing arbitrations hereunder,
insofar as such rules are not inconsistent with any provision of this Section
11.5, which shall be controlling. The arbitration panel may, at the request of a
Party, order provisional or conservatory measures and shall have the authority
to award specific performance, provided, however, that until the complete
establishment of the arbitration panel, the ordinary courts shall remain
competent for provisional or conservatory measures. Any award shall be final and
not subject to appeal and the Parties hereby waive all challenge to any award of
an arbitral panel under this Section 11.5.
Any award shall be made in the currency in which the obligation would
have been paid, if the obligation with respect to which the award is made was an
obligation to pay money or in Euro in all other cases.
SECTION 11.6. Unless otherwise indicated, all currency amounts referred
to in this Agreement are in Euros.
SECTION 11.7. All of the terms and provisions of this Agreement shall
be binding upon and enure to the benefit of and be enforceable by the Parties
hereto and their respective successors and assigns but shall not be assignable
by the Parties hereto prior to the Closing Date without the prior written
consent of the other Parties hereto.
SECTION 11.8. Each Party covenants and agrees that, from time to time
subsequent to the Closing Date, it will, at the request and expense of the
requesting Party, execute and deliver all such documents and do all such other
acts and things as any Party hereto, acting reasonably, may from time to time
request be executed or done in order to better evidence or perfect or effectuate
any provision of this Agreement or of any agreement or other document executed
pursuant to this Agreement or any of the respective obligations intended to be
created hereby or thereby.
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SECTION 11.9. All terms and conditions of this Agreement shall be
construed as conditions, and any breach or failure by Xxxxx, the Xxxxx
Stockholders or the Finance Investors to comply with any of such terms and
conditions on or prior to Closing shall entitle Xxxxxx Park, Holdco I and Holdco
II to terminate their obligations hereunder and JJHovis and Xxxxxxxxxx shall be
entitled to terminate their obligations hereunder in the event that Holdco II
has not received the Grandfather Contribution on or prior to Closing. Any
non-defaulting party may waive, in whole or in part, or extend the time for
compliance with, any terms and conditions without prejudice to its rights in
respect of any other terms and conditions or any other or subsequent breach or
non-compliance, provided that to be binding any such waiver or extension must be
in writing and signed by the Party whose right is being waived.
SECTION 11.10. No amendment of any provision of this Agreement shall be
effective unless the same is in writing and signed by each Party thereto which
is then a Party to or the respective document being amended.
SECTION 11.11. Should any provision or part of a provision of this
Agreement be or become invalid or unenforceable, or should this Agreement
contain an unintended contractual gap, then the validity or enforceability of
the remainder of the Agreement shall not be affected. Any such invalid or
unenforceable provision shall be deemed replaced by, or any gap deemed to be
filled with, an appropriate provision, which, in accordance with the economic
purpose and object of the provision and/or Agreement and as far as legally
permissible, shall come closest to the Parties' original intention, or that
intention which the Parties would have had, had they considered the issue.
SECTION 11.12. This Agreement may be executed in any number of
counterparts by one or more Parties hereto and such counterparts, each of which
when so executed and delivered, shall be deemed to be an original and all of
which when taken together shall constitute one and the same instrument. An
executed counterpart of this Agreement may be delivered by facsimile transfer or
similar form of electronic communication from one Party to the other provided
that an original executed counterpart is promptly delivered to such receiving
Party.
XXXXXX PARK INTERNATIONAL LIMITED
By: /s/ XXXXX XXXXXX
--------------------------
Name: XXXXX XXXXXX
--------------------------
Title: VICE-PRESIDENT
--------------------------
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GARDA INVESTMENTS CORP.
By: /s/ XXXXX XXXXXX
----------------
Name: XXXXX XXXXXX
----------------
Title: VICE-PRESIDENT
----------------
GLAMIOX BETEILIGUNGSVERWALTUNGS GMBH
By: /s/ XXXXX XXXXXX
----------------
Name: XXXXX XXXXXX
----------------
Title: VICE-PRESIDENT
----------------
MFC BANCORP LTD.
By: /s/ XXXXX XXXXXX
----------------
Name: XXXXX XXXXXX
----------------
Title: VICE-PRESIDENT
----------------
XXXXX GMBH
By: /s/ XXXXXXXX X. XXXXX
---------------------
Name: XXXXXXXX X. XXXXX
---------------------
Title: PRESIDENT
---------------------
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SIGNED, SEALED and DELIVERED by )
XXXXXXXX X. XXXXX in the )
presence of: )
)
)
Signature )
____________________________________)
Name ) /s/ XXXXXXXX X. XXXXX
---------------------
XXXXXXXX X. XXXXX
Address ____________________________)
)
____________________________________)
)
____________________________________)
Occupation )
SIGNED, SEALED and DELIVERED by )
XXXXXXXX XXXXX in the )
presence of: )
)
____________________________________)
Signature )
____________________________________) /s/ XXXXXXXX XXXXX
------------------
Name ) XXXXXXXX XXXXX
Address ____________________________)
)
____________________________________)
)
____________________________________)
Occupation )
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SIGNED, SEALED and DELIVERED by )
XXXXXXXXX XXXXXXXXXX in the )
presence of: )
)
____________________________________)
Signature )
____________________________________)
Name ) /s/ XXXXXXXXX XXXXXXXXXX
-----------------------
XXXXXXXXX XXXXXXXXXX
Address ____________________________)
)
____________________________________)
)
____________________________________)
Occupation )
SCHEDULE A
CAPITAL EARN IN AND ADJUSTMENT
ARTICLE 1 - DEFINITIONS
1.1 DEFINITIONS. In this Schedule "A", unless something in the subject
matter or context is inconsistent therewith, the following capitalized
words and terms shall have the following meanings, respectively:
(a) "2001 HOLDCO II STATEMENTS" means the audited consolidated
financial statements of Holdco II for the year ended December
31, 2001 prepared in accordance with U.S. GAAP;
(b) "CONSOLIDATED HOLDCO II NET WORTH" means, with respect to
Holdco II, the aggregate shareholders' equity, excluding: (i)
goodwill and/or any intangible assets; (ii) any net gains
incurred as a result of the Xxxxx Reorganization; and (iii)
the portion of net income (or loss) of Holdco II allocable to
minority interests in unconsolidated Persons to the extent
that cash dividends or distributions have not actually been
received by Holdco II or one of its Subsidiaries in respect as
at December 31 in each year, on a consolidated basis,
determined in accordance with U.S. GAAP consistently applied,
less any shareholders' equity attributable to capital
contributions made subsequent to the Closing Date by Xxxxxx
Park, Holdco I, or their Affiliates or third parties and
"CONSOLIDATED (2001) HOLDCO II NET WORTH" means, such amount
calculated as at December 31, 2001, and in each case as
determined pursuant to Holdco II's annual audited financial
statements in respect of such financial year;
(c) "EVENT OF DEFAULT" means if any representation or warranty set
out in Schedules "B", "C" or "E" to the Agreement or in any
Information Document should at any time be false or
misleading, in any material respect, or if Xxxxx, any Xxxxx
Stockholder or any of JJHovis or Xxxxxxxxxx fails to perform
any material covenant under and/or commits any breach of any
material provision of the Agreement including, without
limitation, any material provision of this Schedule "A",
provided that if such misrepresentation, breach or failure is
capable of remedy, whether by payment of money or otherwise,
such misrepresentation, breach or failure remains unremedied
for fifteen Banking Days following notice thereof to JJHovis
or Xxxxxxxxxx;
(d) "FISCAL YEAR" Means a period of one year ending on December 31
in each such year;
(e) "HOLDCO II CAPITAL RIGHTS" means all of the collective Holdco
II capital owned by JJHovis and Xxxxxxxxxx upon or after
Closing, together with all other rights to acquire additional
Holdco II capital, contingent or otherwise, held or to be held
by JJHovis and Xxxxxxxxxx including, without limitation, all
of their collective and
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individual rights to acquire Holdco II capital as provided for
in the Agreement and in this Schedule "A";
(f) "HOLDCO II FINANCIAL STATEMENTS" means, for the purposes of
any exercise of the Put Option, the consolidated audited
financial statements of Holdco II for the Fiscal Year ended
immediately prior to any exercise of the Put Option, prepared
in accordance with US GAAP;
(g) "OPTIONEES" means, in this Schedule "A", collectively, JJHovis
and Xxxxxxxxxx;
(h) "PUT DATE" means any day within the 10 day period, in each of,
2004, 2005 and 2006, respectively, immediately following the
date of publication of the audited consolidated financial
statements of Holdco II in the Firmenbuch for the immediately
preceding fiscal year;
(i) "PUT OPTIONS" means collectively the put options granted in
favour of the Optionees in accordance with Section 2.7 of this
Schedule "A" and "PUT OPTION" means any such option;
(j) "PUT PRICE" means the amount payable to the Optionees upon
their exercising the Put Option, which shall be 44% (or, in
the event that the Consolidated (2001) Holdco II Net Worth is
zero or negative, 42%) to JJHovis and 5% (or, in the event
that the Consolidated (2001) Holdco II Net Worth is zero or
negative, 4.75%) to Xxxxxxxxxx, of the Consolidated Holdco II
Net Worth adjusted for (i.e. excluding) the Grandfather
Contribution.
(k) "TARGET DATES" means any of December 31, in each of 2003,
2004, 2005 and 2006, and "LAST TARGET DATE" means December 31,
2006;
(l) "TARGET PERIOD" means the period commencing on October 1, 2001
and ending on December 31, 2006;
(m) "TARGET PERIOD FINANCIAL STATEMENTS" means audited financial
statements of Holdco II for each Fiscal Year in the Target
Period prepared in accordance with U.S. GAAP (other than for
the quarterly period ending December 31, 2001); and
(n) "U.S. GAAP" means generally accepted accounting principles in
the United States consistently applied, that are in effect
from time to time;
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ARTICLE 2
ADJUSTMENT OF CONSIDERATION FOR
TRANSFER OF XXXXX TO HOLDCO II
2.1 ACKNOWLEDGEMENT OF EXISTING CAPITAL. The Parties each hereby
acknowledge and agree that immediately after Closing (and after all
Holdco II capital, if any, issued in connection with the Holdco II
Capital Restructuring has been duly registered at the Firmenbuch) the
nominal share capital of Holdco II shall consist of a minimum of Euro
35,000, which shall all be owned by the shareholders of Holdco II as
follows:
NAME OWNED CAPITAL
---- -------------
Holdco I Euro 33,425
JJHovis Euro 1,400
Xxxxxxxxxx Euro 175
provided that, if Holdco II acquires Xxxxx by way of issuance of new
Holdco II nominal share capital in the course of a capital increase
(instead of by way of delivery of existing capital from Holdco I to the
Xxxxx Closing Stockholders) in exchange for the contribution of Xxxxx,
the nominal share capital of Holdco II will, upon registration at the
Firmenbuch, be an increased amount to that set out above, but, under
all circumstances, such nominal share capital shall be allocated such
that the Agreed Capital Ratio will be established at and/or following
Closing.
2.2 EARN IN OF CAPITAL BY JJHOVIS ON TARGET DATE. Subject to Section 2.9
hereof, if, on any of the Target Dates, the Consolidated Holdco II Net
Worth is equal to or greater than Euro 23,500,000, Holdco I shall, upon
receipt of written notice from JJHovis served on Holdco I within ten
Banking Days of publication of the Target Period Financial Statements
in the Firmenbuch (the "Earn In Request Period") , transfer to JJHovis,
under the Austrian Reorganization Tax Act as final further
consideration for the transfer of the Xxxxx Capital to Holdco II,
nominal share capital ("Geschaftsanteile") in a fixed amount of Euro
14,000 (notwithstanding any Holdco II capital increase made subsequent
to the date of signing of this Agreement). Following any Earn In,
JJHovis shall forever have no further rights to acquire any capital of
Holdco II pursuant to this Schedule "A" or otherwise pursuant to this
Agreement.
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2.3 EARN IN OF CAPITAL BY XXXXXXXXXX ON TARGET DATE. Subject to Section 2.
9 hereof, if, on any of the Target Dates, the Consolidated Holdco II
Net Worth is equal to or greater than Euro 23,500,000, Holdco I shall
upon receipt of written notice from Xxxxxxxxxx served on Holdco I
within the Earn In Request Period, transfer to Xxxxxxxxxx, under the
Austrian Reorganization Tax Act as final further consideration for the
transfer of the Xxxxx Capital to Holdco II, nominal share capital
("Geschaftsanteile") in a fixed amount of Euro 1,575, (notwithstanding
any Holdco II capital increase subsequent to the date of signing of
this Agreement). Following any Earn In, Xxxxxxxxxx shall forever have
no further rights to acquire any capital of Holdco II pursuant to this
Schedule "A" or otherwise pursuant to this Agreement.
2.4 PROPORTIONATE RIGHT OF JJHOVIS TO TOP UP. In the event that the
Consolidated Holdco II Net Worth on the Last Target Date is less than
Euro 23,500,000 (such difference herein being the "Target Deficiency"),
JJHovis may, at his option, pay as capital contribution to Holdco II in
cash by way of U.S. dollars or Euros an amount equal to 90% of the
Target Deficiency (the "Xxxxx Deficiency Payment") within two months of
the completion of the Target Date Financial Statements (the "Top Up
Deadline"). In the event that JJHovis pays the Xxxxx Deficiency Payment
on or before the Top Up Deadline, he shall be entitled to receive the
capital in Holdco II as set out in section 2.2 above. In the event that
JJHovis fails to pay the Xxxxx Deficiency Payment as aforesaid before
the Top Up Deadline, any and all rights he may have to make such
contribution shall be terminated and extinguished.
2.5 PROPORTIONATE RIGHT OF XXXXXXXXXX TO TOP UP. In the event that the
Consolidated Holdco II Net Worth on the Last Target Date is less than
Euro 23,500,000, Xxxxxxxxxx may, at his option, pay as capital
contribution to Holdco II in cash by way of U.S. dollars or Euros an
amount equal to 10% of the Target Deficiency (the "Xxxxxxxxxx
Deficiency Payment") on or before the Top Up Deadline. In the event
that Xxxxxxxxxx makes the Xxxxxxxxxx Deficiency Payment on or before
the Top Up Deadline, he shall be entitled to receive the capital in
Holdco II as set out in section 2.3 above. In the event that Xxxxxxxxxx
fails to pay the Xxxxxxxxxx Deficiency Payment as aforesaid before the
Top Up Deadline, any and all rights he may have to make such
contribution shall be terminated and extinguished.
2.6 TERMINATION OF RIGHT TO EARN CAPITAL. Any and all rights of JJHovis and
Xxxxxxxxxx to receive any additional capital pursuant to this Schedule
"A" or otherwise pursuant to this Agreement shall be automatically
terminated and forever extinguished without further action of the
Parties, and each of JJHovis and Xxxxxxxxxx shall have no further
rights thereto, if the Earn In has not been requested within the Earn
In Request Period following the Last Target Date, and, in the event of
a Target Deficiency, if the Xxxxx Deficiency Payment and/or the
Xxxxxxxxxx Deficiency Payment, as applicable, as provided for in
sections 2.4 and 2.5 above, is not paid as required pursuant thereto.
A-5
2.7 PUT OPTION. Subject to Section 2.9 hereof and this Section 2.7, each of
the Optionees shall have the right on any Put Date to require Holdco I
to purchase all, but not less than all, of their Holdco II Capital
Rights at the Put Price, such sale and transfer to be completed within
sixty (60) Banking Days of completion of the applicable Holdco II
Financial Statements. Following any such exercise of a Put Option, the
exercising Optionee shall forever have no further rights to acquire any
capital of Holdco II pursuant to this Schedule "A" or otherwise
pursuant to this Agreement, and such exercising Optionee's only
continuing right in connection with his Holdco II Capital Rights will
be to receive the Put Price. The right of an Optionee to exercise a Put
Option shall expire and terminate on the first date that such Optionee
is eligible to give notice, within an Earn In Request Period, requiring
Holdco I to transfer additional nominal share capital of Holdco II to
such Optionee, regardless of whether such notice is given.
2.8 NON-TRANSFERABILITY OF PUT OPTION. The Put Option granted to the
Optionees in Section 2.7 above shall not be transferrable and may be
exercised only by the Optionees with the exception that an Optionee may
transfer his Put Option or portion thereof to any "Permitted
Transferee", as such term is defined in the Owners' Agreement, provided
that:
(a) such Permitted Transferee shall agree to assume and be bound
by all of the terms and obligations contained in this
Agreement in respect of the Put Option and the Owners'
Agreement as if such Permitted Transferee had entered into
each of this Agreement and the Owners' Agreement as an
original party thereto; and
(b) such Permitted Transferee has acquired, in addition to the Put
Option or portion thereof, an equivalent proportion of the
nominal share capital of Holdco II held by the transferring
Optionee, in accordance with the requirements and restrictions
set out in the Owners' Agreement.
2.9 TERMINATION UPON DEFAULT. The rights of each of JJHovis and Xxxxxxxxxx:
(i) to acquire additional capital of Holdco II hereunder; and (ii) to
exercise the Put Option pursuant to this Schedule "A", shall
automatically terminate and be of no further force and effect, upon the
occurrence of any Event of Default without any further action of the
parties. However, the termination of the right to acquire additional
capital pursuant to Subsection 2.9(i) of this Schedule "A" shall only
be automatically terminated in case of a wilful or negligent false
representation or warranty.
SCHEDULE B
XXXXX AND XXXXX CLOSING STOCKHOLDERS JOINT AND SEVERAL
REPRESENTATIONS AND WARRANTIES
1. The Agreement has been duly authorized, executed and delivered on behalf of
Xxxxx and is a legal, valid and binding obligation of Xxxxx enforceable in
accordance with its terms, except as enforcement thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium and other laws relating
to or affecting the rights of creditors generally, and except as limited by
the application of equitable principles when equitable remedies are sought
and by the fact that rights to indemnity, contribution and waiver, and the
ability to sever unenforceable terms, may be limited by Applicable Law;
2. Other than as set out in the Disclosure Statement, Xxxxx and each Xxxxx
Subsidiary has been duly incorporated, amalgamated, continued or organized
and is validly existing and in good standing under the laws of its
respective jurisdiction of incorporation, amalgamation, continuance or
organization, as the case may be, and has all requisite corporate power and
authority to carry on its business as now conducted and as presently
proposed to be conducted, to own, lease and operate its properties and
assets and, with respect to Xxxxx, to carry out the provisions of the
Agreement;
3. The Xxxxx Closing Stockholders own or, at the Closing Date, will own the
share capital of Xxxxx free and clear of all mortgages, liens, charges,
pledges, security interests, encumbrances, claims or demands whatsoever.
4. Other than disclosed in the Disclosure Statement or expressly highlighted
in the legal opinion(s) of counsel(s) to Xxxxx, and accepted in writing by
Xxxxxx Park, none of Xxxxx or any member of the Xxxxx Group have issued
share certificates or certificates representing share capital or dividend
coupons;
5. Xxxxx and each Xxxxx Subsidiary has conducted and is conducting its
respective business in compliance in all material respects with all
Applicable Laws, rules and regulations of each jurisdiction in which its
respective business is carried on and is duly licensed, registered or
qualified in all jurisdictions in which it owns, leases, or operates its
property or carries on business to enable its business to be carried on as
now conducted and its property and assets to be owned, leased and operated,
and all such licenses, registrations and qualifications are valid and
subsisting and in good standing and none of the same contains any
burdensome term, provision, condition or limitation which has a material
adverse effect on the operation of its respective business as now carried
on;
6. Xxxxx has no Subsidiaries other than the Xxxxx Subsidiaries. Other than as
set out in the Disclosure Statement, Xxxxx or the Xxxxx Subsidiaries are
the owners, beneficially and of record, of the issued and outstanding
shares in the capital of each Xxxxx Subsidiary as set out in Schedule "F"
to the Agreement, in each case free and clear of all mortgages, liens,
charges, pledges, security interests, encumbrances, claims or demands
whatsoever, other than as set out in the Disclosure Statement, and no
Person, firm or corporation has any agreement or option, or right or
privilege (whether pre-emptive or contractual) capable of becoming an
agreement (including convertible securities and warrants) for the purchase
from Xxxxx of any interest in any of the issued and outstanding shares in
the capital of any Xxxxx Subsidiary or for the
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purchase, subscription or issuance of any unissued shares, securities or
warrants of any Xxxxx Subsidiary, other than as set out in the Disclosure
Statement;
7. As at the date hereof the nominal share capital ("Geschaftsanteile") of
Xxxxx consists of Euro 1,750,000 and on the Closing Date the nominal share
capital ("Geschaftsanteile") of Xxxxx shall consist of a minimum of Euro
1,750,000, which, as at the date of the Agreement is fully issued and is
paid in in an amount of Euro 1,529,055.50 and, as of the Closing Date, will
be paid in as to a further Euro 180,000 resulting from a cash contribution
of the Finance Investors plus an amount equal to the value of any further
contribution in kind pursuant to any increase in the capital of Xxxxx as
contemplated by Section 6.2(2) of this Agreement and, no Person, firm or
corporation now has any agreement or option, or right or privilege (whether
pre-emptive or contractual) capable of becoming an agreement (including
convertible securities or warrants) for the purchase, subscription or
issuance of any unissued shares, securities or warrants of Xxxxx, other
than as set out in the Agreement;
8. Other than as set out in the Disclosure Statement, subsequent to the
respective dates as of which information is given in the Information
Documents:
(i) there has not been any Material Adverse Change; and
(ii) the consolidated financial position of the companies of the Xxxxx
Group is disclosed in the individual Financial Statements of each of
these companies as of August 31, 2001;
9. Other than S.C. Xxxxx X.X., as disclosed to Xxxxxx Park, none of Xxxxx nor
any Xxxxx Subsidiary has, directly or indirectly, declared or paid any
dividend or declared or made any other distribution on any of its capital
of any class, or, directly or indirectly, redeemed, purchased or otherwise
acquired any of its capital, or agreed to do any of the foregoing during
its last three completed fiscal years preceding the date of the Agreement;
10. Other than as set out in the Disclosure Statement, there is not, in the
Constating Documents of Xxxxx or any Xxxxx Subsidiary or in any agreement,
mortgage, note, debenture, indenture or other instrument or document to
which Xxxxx or any Xxxxx Subsidiary is a party, any restriction upon or
impediment to the declaration or payment of dividends by any member of the
Xxxxx Group or the payment of dividends by Xxxxx to the holders of the
Xxxxx Capital;
11. Since June 30, 2001, the Xxxxx Group has carried on the Business in the
ordinary course;
12. There is no action, proceeding or investigation (whether or not purportedly
on behalf of Xxxxx or any Xxxxx Subsidiary) pending or, to the knowledge of
Xxxxx and its directors and officers after having made due enquiry,
threatened against or affecting Xxxxx or any Xxxxx Subsidiary, at law or in
equity or before or by any Governmental Authority which either: (i) could
reasonably be expected to result in a Material Adverse Change; or (ii)
which questions the validity of the creation, issuance and sale or transfer
of the capital of Holdco II or the transfer of the Xxxxx Capital, pursuant
to or in connection with the Agreement;
13. Xxxxx and, to the best of the knowledge of JJHovis and Xxxxxxxxxx, each
Xxxxx Subsidiary has duly and on a timely basis filed all Tax Returns to be
filed by it, has paid all Taxes due
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and payable by it and has paid all assessments and re-assessments and all
other Taxes, governmental charges, penalties, interest and other fines due
and payable by it and which are claimed by any Governmental Authority to be
due and owing and adequate provision has been made for Taxes payable for
any fiscal period ended for which Tax Returns are not yet required to be
filed; there are no agreements, waivers or other arrangements providing for
an extension of time with respect to the filing of any Tax Return or
payment of any Tax, governmental charge or deficiency by Xxxxx or any Xxxxx
Subsidiary; there are no actions, suits, proceedings, investigations or
claims threatened or pending against Xxxxx or any Xxxxx Subsidiary in
respect of Taxes, governmental charges or assessments or any matters under
discussion with any Governmental Authority relating to Taxes, governmental
charges or assessments asserted by any such authority;
14. Neither Xxxxx nor any Xxxxx Subsidiary is in default or breach of, and the
execution and delivery of the Agreement by Xxxxx, the performance and
compliance with the terms of the Agreement and the sale of the Xxxxx
Capital to Holdco II by the Xxxxx Stockholders, will not result in any
breach of, be in conflict with or constitute a default under or create a
state of facts which after notice or lapse of time, or both, would
constitute a default under:
(i) any term or provision of the Constating Documents of Xxxxx or of any
Xxxxx Subsidiary;
(ii) any resolutions passed or consented to by the directors or
shareholders of Xxxxx or any Xxxxx Subsidiary;
(iii) any material mortgage, note, indenture, contract, agreement (written
or oral), instrument, lease or other document to which Xxxxx or any
Xxxxx Subsidiary is a party; or
(iv) any judgement, decree, order, statute, rule or regulation applicable
to Xxxxx or any Xxxxx Subsidiary;
15. Other than VB Investmentbank AG, as disclosed to Xxxxxx Park, there is no
Person, firm or corporation acting or purporting to act for Xxxxx or any
Xxxxx Subsidiary entitled to any brokerage or finder's fee in connection
with the Agreement or any of the transactions contemplated hereunder, and
in the event any Person, firm or corporation acting or purporting to act
for Xxxxx or any Xxxxx Subsidiary establishes a claim for any such fee from
Xxxxxx Park or Holdco II, Xxxxx covenants to indemnify and hold harmless
Xxxxxx Park and Holdco II with respect thereto and with respect to all
costs reasonably incurred in the defence thereof;
16. None of the directors or senior officers of Xxxxx, any holder of 10% or
more of the outstanding Xxxxx Capital or any Associate or Affiliate of any
of the foregoing Persons, other than by way of such position or share
capital holding, has had any material interest, direct or indirect, in any
transaction within the three years prior to the date of the Agreement or in
any proposed transaction with Xxxxx or any of the Xxxxx Subsidiaries;
17. Xxxxx and each Xxxxx Subsidiary has obtained all approvals, authorizations,
certificates, consents, licenses, orders and permits or other similar
authorizations of all Governmental Authorities, or from any other Person,
that are required under any Environmental Laws, a
B-4
true and complete list of which is set out in the Disclosure Statement, and
all of which are in full force and effect;
18. Xxxxx and each Xxxxx Subsidiary is in compliance with all material terms
and conditions of all approvals, authorizations, certificates, consents,
licenses, orders and permits or other similar authorizations of all
Governmental Authorities required under all Environmental Laws. Xxxxx and
each Xxxxx Subsidiary is also in compliance with all other limitations,
restrictions, conditions, standards, requirements, schedules and timetables
required or imposed under all Environmental Laws;
19. Other than as set out in the Disclosure Statement, there are no past or
present events, conditions, circumstances, incidents, actions or omissions
that constituted, constitute or may, after the Closing Date, constitute a
violation by Xxxxx or a Xxxxx Subsidiary or the Business of any
Environmental Law or that may give rise to any Environmental Liabilities of
Xxxxx or a Xxxxx Subsidiary or the Business, or otherwise form the basis of
any claim, action, demand, suit, proceeding, hearing, study or
investigation relating to or in any way affecting Xxxxx or a Xxxxx
Subsidiary or the Business (i) under any Environmental Laws or (ii) based
on or related to the manufacture, processing, distribution, use, treatment,
storage (including underground storage), Disposal, transport, handling,
emission, discharge, Release or threatened Release of any Contaminants;
20. Except as disclosed in the Disclosure Statement:
(i) neither Xxxxx nor any Xxxxx Subsidiary has been charged with or
convicted of an offence for non-compliance with or breach of any
Environmental Laws or fined or otherwise sentenced for non-compliance
with or breach of any Environmental Laws or settled any prosecution
short of conviction for non-compliance with or breach of any
Environmental Laws;
(ii) neither Xxxxx nor any Xxxxx Subsidiary has caused or permitted, or has
any knowledge of, the Release or Disposal of any Contaminant relating
to Xxxxx or a Xxxxx Subsidiary or the Business or of any Release or
Disposal from any facility owned or operated by any other Person for
which Xxxxx or a Xxxxx Subsidiary may have any Liability; and
(iii) all Contaminants generated, handled, stored, treated, processed,
transported or Disposed of by or on behalf of Xxxxx or a Xxxxx
Subsidiary have been generated, handled, stored, treated, processed,
transported or Disposed of in compliance with all applicable
Environmental Laws;
21. To the best of the knowledge of JJHovis and Xxxxxxxxxx, copies of all
environmental audits, environmental assessments and environmental studies
related in any way to Xxxxx or a Xxxxx Subsidiary, the Business or the
operation of the Business done by or on behalf of Xxxxx or a Xxxxx
Subsidiary or any other Person (other than Xxxxxx Park or its Associates or
Affiliates) have been provided to Xxxxxx Park;
B-5
22. The Financial Statements of the companies comprising the Xxxxx Group as at
December 31, 2000: (i) have been prepared on a consistent basis and are
based on the books and records of the Xxxxx Group in accordance with GAAP
and present fairly the financial position and results of operations as of
the dates indicated or for the periods indicated; (ii) contain and reflect
all necessary adjustments and accruals for a fair presentation of its
financial position and the results of its operations for the periods
covered by such Financial Statements; (iii) contain and reflect adequate
provisions for all reasonably anticipated liabilities (including Taxes)
with respect to the periods then ended and all prior periods; and (iv) with
respect to contracts and commitments for the sale of goods or the provision
of services by the Xxxxx Group, contain and reflect adequate reserves for
all reasonably anticipated material losses and costs and expenses in excess
of expected receipts;
23. The Financial Statements of the companies comprising the Xxxxx Group as at
and for the period ended August 31, 2001: (i) have been prepared on a
consistent basis and are based on the books and records of the Xxxxx Group
in accordance with GAAP and present fairly the financial position and
results of operations as of the dates indicated or for the periods
indicated; (ii) contain and reflect all necessary adjustments and accruals
for a fair presentation of its financial position and the results of its
operations for the periods covered by such Financial Statements; (iii)
contain and reflect adequate provisions for all reasonably anticipated
liabilities (including Taxes) with respect to the periods then ended and
all prior periods; and (iv) with respect to contracts and commitments for
the sale of goods or the provision of services by the Xxxxx Group, contain
and reflect adequate reserves for all reasonably anticipated material
losses and costs and expenses in excess of expected receipts;
24. To the best of the knowledge of JJHovis and Xxxxxxxxxx, there are no
Liabilities of the individual companies of the Xxxxx Group other than: (i)
any Liabilities accrued as Liabilities on the individual Financial
Statements of each of these companies as of August 31, 2001; (ii)
Liabilities incurred since the date of such balance sheets that do not, and
could not, individually or in the aggregate result in a Material Adverse
Change; and (iii) other Liabilities disclosed in the Disclosure Statement;
25. Other than as set out in the Disclosure Statement, there are no collective
agreements to which Xxxxx or a Xxxxx Subsidiary is a party or that relate
to the Business, no collective agreement restricts the relocation or
closing of any part of the Business, no trade union, council of trade
unions, employee bargaining agency or affiliated bargaining agent holds
bargaining rights with respect to any employees of Xxxxx or a Xxxxx
Subsidiary by way of certification, interim certification, voluntary
recognition or successor rights, or has applied or, to the knowledge of
Xxxxx or a Xxxxx Subsidiary, threatened to apply to be certified as the
bargaining agent of any of such employees, no material work stoppage or
other material labour dispute in respect of Xxxxx or a Xxxxx Subsidiary or
the Business is pending or, to the knowledge of Xxxxx or a Xxxxx
Subsidiary, threatened, there are no outstanding arbitration awards, labour
grievances, arbitration proceedings or other proceedings under any
collective agreement pertaining to Xxxxx or a Xxxxx Subsidiary or the
Business, neither Xxxxx nor a Xxxxx Subsidiary has committed any breach of
any collective agreements pertaining to Xxxxx or a Xxxxx Subsidiary or the
Business, neither Xxxxx nor a Xxxxx Subsidiary is aware of any grievances
or arbitration proceedings under any collective agreements pertaining to
Xxxxx or a Xxxxx Subsidiary or the Business, and there are no written or
oral agreements or courses of conduct
B-6
that modify any collective agreement pertaining to Xxxxx or a Xxxxx
Subsidiary or the Business;
26. Other than as set out in the Disclosure Statement, the Xxxxx Group and
their Affiliates have complied and are currently complying, in respect of
all employees of the Xxxxx Group and their Affiliates, with all Applicable
Laws respecting employment and employment practices and the protection of
the health and safety of employees;
27. There are no notices of assessment, provisional assessment, reassessment,
supplementary assessment, penalty assessment or increased assessment
(collectively, the "Assessments") or any other communications related
thereto that Xxxxx or a Xxxxx Subsidiary has received from any workers'
compensation board or similar authority in any jurisdictions where Xxxxx or
a Xxxxx Subsidiary conducts business, and there are no Assessments that are
unpaid or will be unpaid on the Closing Date, and there are no facts or
circumstances that could reasonably be expected to result in a material
increase in Liability to Xxxxx or a Xxxxx Subsidiary from any applicable
workers' compensation legislation, regulations or rules after the Closing
Date. The accident cost experience relating to the Business is such that
there are no material pending or possible Assessments and there are no
claims or potential claims that may materially adversely affect the
accident cost experience of Xxxxx or a Xxxxx Subsidiary;
28. There have not been any control or profit transfer agreements concluded by
Xxxxx or any member of the Xxxxx Group;
29. There have been no bankruptcy, composition (other than regarding HPP),
creditor protection or insolvency proceedings filed or initiated against
Xxxxx or any member of the Xxxxx Group. Furthermore, there are no grounds
that would justify initiating such proceedings;
30. Other than as disclosed in the Disclosure Statement, no member of the Xxxxx
Group owns any real estate in Austria;
31. Schedule "K" contains a complete and accurate list of all trade marks and
alike and license agreements in respect thereof owned by Xxxxx and Xxxxx
Group;
32. Schedule "L" contains a complete and accurate list of all accounts
receivables and accounts payable of Xxxxx and the Finance Companies (other
than Xxxxx Impex) as of the date or dates indicated therein ;
33. Schedule "M" contains a complete and accurate list of all relevant
litigation matters, including all employee related litigation;
34. Schedule "N" contains the accurate bank status as of September 25, 2001,
including but not limited thereto, of all credit and loan facilities and
collateral provided by Xxxxx, the Xxxxx Group, the Xxxxx Stockholders and
Persons related thereto and of open foreign exchange transactions and
derivative transactions;
35. Schedule "O" contains an accurate list of all loans from third parties to
Xxxxx or any member of the Xxxxx Group, including from the Xxxxx
Stockholders, other than credit and loan facilities listed in Schedule "G";
B-7
36. Schedule "P" contains an accurate organizational chart of Xxxxx;
37. Schedule "Q" contains an accurate list of persons that have been granted
powers to represent Xxxxx, other than those listed in the Firmenbuch;
38. Alumetal, to the best of the knowledge of the Xxxxx Closing Stockholders
will be in a position on Closing to pay the remaining purchase price for
the acquisition of its own shares from its future cash flow;
39. To the best of the knowledge of the Xxxxx Closing Stockholders, after
having made due enquiry, there is no action, proceeding, investigation or
other circumstance in place, pending or threatened against or affecting
Alumetal which questions the validity of, or could reasonably expected to
negatively impact upon the completion of, the pending purchase of Alumetal
by Xxxxx Poland Sp.z o.o; and
40. There do not exist any liabilities of Xxxxx in favour of S.C. Xxxxx X.X.
other than those shown in the S.C. Xxxxx X.X. acquisition agreement dated
June 29, 2000, relating to the remaining investment obligations set out
therein.
41. There does not exist any obligation on the part of any company within the
Xxxxx Group to pay bonuses to employees or managing directors of any member
of the Xxxxx Group.
42. Xxxxx maintains Insurance Policies in respect of receivables due or
accruing due to Xxxxx in such amount or amounts, with such deductible
amount or amounts and upon terms as, in each case, are maintained by
prudent owners and operators of facilities or businesses similar to the
business of Xxxxx, all premiums and fees in respect of such Insurance
Policies have been paid to date and Xxxxx has received no notice from any
insuror or agent in respect of any breach of any such policy or any
notification of denial of coverage in respect thereof.
43. Xxxxx is not party to any Material Agreements other than as disclosed in
Schedule "R" or elsewhere in this Agreement and, other than as set out in
the Disclosure Statement, Xxxxx has performed all of its material
obligations required to be performed by it and is entitled to all benefits
under, and is not in default or alleged to be in default in respect of any
Material Agreement to which it is a party or by which it is bound, all such
Material Agreements are in good standing and in full force and effect, and
no event, condition or occurrence exists that, after notice or lapse of
time or both, would constitute a material default under any of the
foregoing.
SCHEDULE C
XXXXX STOCKHOLDERS REPRESENTATIONS AND WARRANTIES
1. The Xxxxx Stockholders are the legal and beneficial owners of record with a
good and marketable title thereto of the Xxxxx Capital, free and clear of
all mortgages, liens, charges, pledges, security interests, encumbrances,
claims or demands whatsoever and any and all approvals, authorizations or
consents necessary to enable the Xxxxx Stockholders to validly execute,
deliver and perform the Agreement have been obtained;
2. The Xxxxx Capital is or will be paid in, in the amount shown in the
Firmenbuch and will be held by the Xxxxx Closing Stockholders immediately
prior to Closing on the Closing Date.
3. No Person, firm or corporation now has or, at the Closing Date, will have
(except (i) JJHovis from Xxxxxxxx Xxxxx; and (ii) Holdco II pursuant to the
Agreement) any agreement or option, or right or privilege (whether
pre-emptive or contractual) capable of becoming an agreement (including
convertible securities or warrants), for the purchase and/or acquisition
from the Xxxxx Stockholders of any Xxxxx Capital;
4. Other than VB Investmentbank AG, there is no Person, firm or corporation
acting or purporting to act for the Xxxxx Stockholders entitled to any
brokerage or finder's fee in connection with the Agreement or any of the
transactions contemplated hereunder, and in the event any Person, firm or
corporation acting or purporting to act for the Xxxxx Stockholders
establishes a claim for any such fee from Xxxxxx Park, Holdco I or Holdco
II, the Xxxxx Stockholders covenant to indemnify and hold harmless Xxxxxx
Park, Holdco I and Holdco II with respect thereto and with respect to all
costs reasonably incurred in the defence thereof; and
5. To the best of the knowledge of each of the Xxxxx Stockholders, after
having made due enquiry, there is no action, proceeding or investigation
pending or threatened which in their respective opinions questions the
validity of any action taken or to be taken by each respective Xxxxx
Stockholder pursuant to or in connection with the Agreement.
SCHEDULE X
XXXXXX PARK, HOLDCO I AND HOLDCO II REPRESENTATIONS AND WARRANTIES
1. The Agreement has been duly authorized, executed and delivered on behalf of
each of Xxxxxx Park, Holdco I and Holdco II and is a legal, valid and
binding obligation of each of Xxxxxx Park, Holdco I and Holdco II
enforceable in accordance with its terms, except as enforcement thereof may
be limited by bankruptcy, insolvency, reorganization, moratorium and other
laws relating to or affecting the rights of creditors generally, and except
as limited by the application of equitable principles when equitable
remedies are sought and by the fact that rights to indemnity, contribution
and waiver, and the ability to sever unenforceable terms, may be limited by
Applicable Law; and
2. Each of Xxxxxx Park and Holdco I has been duly incorporated, amalgamated,
continued or organized and is validly existing and in good standing under
the laws of its respective jurisdiction of incorporation, amalgamation,
continuance or organization, as the case may be, and has all requisite
corporate power and authority to carry on its business as now conducted and
as presently proposed to be conducted, to own, lease and operate its
properties and assets and, with respect to Xxxxx, to carry out the
provisions of the Agreement.
3. On or before the Closing, and subject to the terms and conditions of the
Agreement, Xxxxxx Park shall have contributed or caused to be contributed,
the Grandfather Contribution, to Holdco II, in accordance with Articles 2
and 6 of the Agreement.
SCHEDULE E
FINANCE INVESTORS REPRESENTATIONS AND WARRANTIES
1. Each of the Finance Companies has been duly incorporated, amalgamated,
continued or organized and is validly existing and in good standing under
the laws of its respective jurisdiction of incorporation, amalgamation,
continuance or organization, as the case may be, and has all requisite
corporate power and authority to carry on its business as now conducted and
as presently proposed to be conducted, to own, lease and operate its
properties and assets;
2. Each of the Finance Companies has conducted and is conducting its
respective business in compliance in all material respects with all
Applicable Laws, rules and regulations of each jurisdiction in which its
respective business is carried on and is duly licensed, registered or
qualified in all jurisdictions in which it owns, leases, or operates its
property or carries on business to enable its business to be carried on as
now conducted and its property and assets to be owned, leased and operated,
and all such licenses, registrations and qualifications are valid and
subsisting and in good standing and none of the same contains any
burdensome term, provision, condition or limitation which has a material
adverse effect on the operation of its respective business as now carried
on;
3. The Finance Investors own or, at the Closing Date, will own the share
capital of the Finance Companies free and clear of all mortgages, liens,
charges, pledges, security interests, encumbrances, claims or demands
whatsoever.
4. Other than as disclosed in the Disclosure Statement or expressly
highlighted in the Legal Opinion(s) of counsel(s) to the Finance Companies,
and accepted in writing by Xxxxxx Park, none the Finance Companies have
issued share certificates or certificates representing share capital or
dividend coupons;
5. None of the Finance Companies has any Subsidiaries;
6. Other than as set out in the Disclosure Statement, subsequent to the
respective dates as of which information is given in the Information
Documents:
(i) there has not been any Material Adverse Change; and
(ii) the financial position of each of the Finance Companies is as
disclosed in the individual Financial Statements of the Finance
Companies as of June 30, 2001;
7. None of the Finance Companies has, directly or indirectly, declared or paid
any dividend or declared or made any other distribution on any of its
shares or securities of any class, or, directly or indirectly, redeemed,
purchased or otherwise acquired any of its shares or securities, or agreed
to do any of the foregoing during its last three completed fiscal years
preceding the date hereof;
8. There is not, in the Constating Documents of any of the Finance Companies
or in any agreement, mortgage, note, debenture, indenture or other
instrument or document to which any of the Finance Companies is a party,
any restriction upon or impediment to the declaration or payment of
dividends by any of the Finance Companies;
E-2
9. Other than as disclosed in the Disclosure Statement, since June 30, 2001,
each of the Finance Companies has carried on its respective business in the
ordinary course;
10. There is no action, proceeding or investigation (whether or not purportedly
on behalf of any of the Finance Companies) pending or, to the knowledge of
any of the Finance Investors after having made due enquiry, threatened
against or affecting any of the Finance Companies, at law or in equity or
before or by any Governmental Authority which either: (i) could reasonably
be expected to result in a Material Adverse Change; or (ii) which questions
the validity of the Xxxxx Reorganization or any action taken or to be taken
pursuant to or in connection with the Agreement;
11. Each of the Finance Companies has duly and on a timely basis filed all Tax
Returns to be filed by it, has paid all Taxes due and payable by it and has
paid all assessments and re-assessments and all other Taxes, governmental
charges, penalties, interest and other fines due and payable by it and
which are claimed by any Governmental Authority to be due and owing and
adequate provision has been made for Taxes payable for any fiscal period
ended for which Tax Returns are not yet required to be filed; there are no
agreements, waivers or other arrangements providing for an extension of
time with respect to the filing of any Tax Return or payment of any Tax,
governmental charge or deficiency by any of the Finance Companies; there
are no actions, suits, proceedings, investigations or claims threatened or
pending against any of the Finance Companies in respect of Taxes,
governmental charges or assessments or any matters under discussion with
any Governmental Authority relating to Taxes, governmental charges or
assessments asserted by any such authority;
12. None of the Finance Companies is in default or breach of, and the execution
and delivery of this Agreement by Xxxxx and the Finance Investors, the
performance and compliance with the terms of this Agreement and the
completion of the Xxxxx Reorganization will not result in any breach of, be
in conflict with or constitute a default under or create a state of facts
which after notice or lapse of time, or both, would constitute a default
under:
(i) any term or provision of the Constating Documents or of any of the
Finance Companies;
(ii) any resolutions passed or consented to by the directors or
shareholders of any of the Finance Companies;
(iii) any material mortgage, note, indenture, contract, agreement (written
or oral), instrument, lease or other document to which any of the
Finance Companies is a party; or
(iv) any judgement, decree, order, statute, rule or regulation applicable
to any of the Finance Companies;
13. There is no Person, firm or corporation acting or purporting to act for any
of the Finance Companies or any of the Finance Investors entitled to any
brokerage or finder's fee in connection with this Agreement or any of the
transactions contemplated hereunder, and in the event any Person, firm or
corporation acting or purporting to act for any of the Finance Companies
establishes a claim for any such fee from Xxxxxx Park or Holdco II, the
Finance
E-3
Investors jointly and severally covenant to indemnify and hold harmless
Xxxxxx Park and Holdco II with respect thereto and with respect to all
costs reasonably incurred in the defence thereof;
14. None of the directors or senior officers of any of the Finance Companies,
any holder of 10% or more of the outstanding capital of any of the Finance
Companies or any Associate or Affiliate of any of the foregoing Persons or
companies has had any material interest, direct or indirect, in any
transaction within the three years prior to the date hereof or in any
proposed transaction which has materially affected or will materially
affect any of the Finance Companies;
15. Each of the Finance Companies has obtained all approvals, authorizations,
certificates, consents, licenses, orders and permits or other similar
authorizations of all Governmental Authorities, or from any other Person,
that are required under any Environmental Laws, a true and complete list of
which is set out in the Disclosure Statement and all of which are in full
force and effect;
16. Each of the Finance Companies is in compliance with all material terms and
conditions of all approvals, authorizations, certificates, consents,
licenses, orders and permits or other similar authorizations of all
Governmental Authorities required under all Environmental Laws. Each of the
Finance Companies is also in compliance with all other limitations,
restrictions, conditions, standards, requirements, schedules and timetables
required or imposed under all Environmental Laws;
17. There are no past or present events, conditions, circumstances, incidents,
actions or omissions that constituted, constitute or may, after the Closing
Date, constitute a violation by any of the Finance Companies or any of
their respective businesses of any Environmental Law or that may give rise
to any Environmental Liabilities of any of the Finance Companies or any of
their respective businesses or otherwise form the basis of any claim,
action, demand, suit, proceeding, hearing, study or investigation relating
to or in any way affecting any of the Finance Companies or any of their
respective businesses (i) under any Environmental Laws or (ii) based on or
related to the manufacture, processing, distribution, use, treatment,
storage (including underground storage), Disposal, transport, handling,
emission, discharge, Release or threatened Release of any Contaminants;
18. Copies of all environmental audits, environmental assessments and
environmental studies or evaluations related in any way to any of the
Finance Companies, any of their respective businesses or the operation of
such businesses done by or on behalf of any of the Finance Companies or any
other Person (other than Xxxxxx Park or its Associates and Affiliates) have
been provided to Xxxxxx Park;
19. The Financial Statements of each of the Finance Companies as at and for the
year ended December 31, 2000 and June 30, 2001: (i) have been prepared on a
consistent basis and are based on the books and records of each of the
Finance Companies in accordance with GAAP and present fairly the financial
position and results of operations as of the dates indicated or for the
periods indicated; (ii) contain and reflect all necessary adjustments and
accruals for a fair presentation of its financial position and the results
of its operations for the periods covered by such Financial Statements;
(iii) contain and reflect adequate provisions for all
E-4
reasonably anticipated liabilities (including Taxes) with respect to the
periods then ended and all prior periods; and (iv) with respect to
contracts and commitments for the sale of goods or the provision of
services by each of the Finance Companies, as applicable, contain and
reflect adequate reserves for all reasonably anticipated material losses
and costs and expenses in excess of expected receipts;
20. To the best of the knowledge of each of the Finance Investors, there are no
Liabilities of any of the Finance Companies other than: (i) any Liabilities
accrued as Liabilities on the individual balance sheets of each of the
Finance Companies as of June 30, 2001; (ii) Liabilities incurred since the
date of such balance sheets that do not, and could not, individually or in
the aggregate result in a Material Adverse Change; and (iii) other
Liabilities disclosed in the Disclosure Statement;
21. Other than as set out in the Disclosure Statement, there are no collective
agreements to which any of the Finance Companies is a party or that relate
to their respective businesses, no collective agreement restricts the
relocation or closing of any part of their respective businesses, no trade
union, council of trade unions, employee bargaining agency or affiliated
bargaining agent holds bargaining rights with respect to any employees of
any of the Finance Companies by way of certification, interim
certification, voluntary recognition or successor rights, or has applied
or, to the knowledge of each of the Finance Investors, threatened to apply
to be certified as the bargaining agent of any of such employees, no
material work stoppage or other material labour dispute in respect of any
of the Finance Companies or their respective businesses is pending or, to
the knowledge of each of the Finance Investors, threatened, there are no
outstanding arbitration awards, labour grievances, arbitration proceedings
or other proceedings under any collective agreement pertaining to any of
the Finance Companies or their respective businesses, none of the Finance
Investors or Finance Companies has committed any breach of any collective
agreements pertaining to any of the Finance Companies or their respective
businesses, none of the Finance Companies is aware of any grievances or
arbitration proceedings under any collective agreements pertaining to any
of the Finance Companies or their respective businesses, and there are no
written or oral agreements or courses of conduct that modify any collective
agreement pertaining to any of the Finance Companies or their respective
businesses.
22. Other than as set out in the Disclosure Statement, each of the Finance
Companies and its Affiliates have complied and are currently complying, in
respect of all employees of each of the Finance Companies and their
Affiliates, with all Applicable Laws respecting employment and employment
practices and the protection of the health and safety of employees, except
for such instances which are not, in the aggregate, material;
23. There are no notices of assessment, provisional assessment, reassessment,
supplementary assessment, penalty assessment or increased assessment
(collectively, the "Assessments") or any other communications related
thereto that any of the Finance Companies has received from any workers'
compensation board or similar authority in any jurisdictions where any of
the Finance Companies conducts business, there are no Assessments that are
unpaid on the Closing Date, and there are no facts or circumstances that
could reasonably be expected to result in a material increase in Liability
to any of the Finance Companies from any applicable workers' compensation
legislation, regulations or rules after the Closing Date. The accident cost
experience relating to their respective businesses is such that there are
no material pending or possible Assessments and there are no claims or
potential claims that may materially adversely affect the accident cost
experience of any of the Finance Companies;
E-5
24. To the knowledge of the Finance Investors, after having made due enquiry,
there is no action, proceeding or investigation pending or threatened which
in its opinion questions the validity of any action taken or to be taken by
the Finance Investors pursuant to or in connection with the Agreement.
SCHEDULE F
LIST OF XXXXX SUBSIDIARIES
------------------------------ ------------------------------------ ---------------------- -----------------------------------
NAME OF XXXXX SUBSIDIARY SHARE CAPITAL JURISDICTION OF CAPITAL HOLDINGS
(AMOUNT PAID IN) INCORPORATION
OR ORGANIZATION
------------------------------ ------------------------------------ ---------------------- -----------------------------------
XXXXX CZ spol. s.r.o. CZK 156,000 Czech Republic 78% - XXXXX GmbH
22,000 11% - Ing. Miroslav Ludma
22,000 11% - Ing. Xxxxxx Xxxxx
Total: 200,000
Fully paid in
------------------------------ ------------------------------------ ---------------------- -----------------------------------
PLN 50,000 Poland 100% - XXXXX GmbH
Total: 50,000
XXXXX Poland Sp.z o.o.
Fully paid in
------------------------------ ------------------------------------ ---------------------- -----------------------------------
PLN 474,000 Poland 61% - XXXXX GmbH
303,000 39% - Bacler brothers
KOLMET Sp.z o.o.
Total: 777,000
Fully paid in
------------------------------ ------------------------------------ ---------------------- -----------------------------------
PLN 67,000 Poland 67% - XXXXX GmbH
33,000 33% - Xxxxx brothers
UNIMETAL Sp.z o.o Total: 100,000
Fully paid in
------------------------------ ------------------------------------ ---------------------- -----------------------------------
HUF 55,400,000 Hungary 93% - XXXXX GmbH
4,400,000 7% - Employees
METALKO Kft.
Total: 59,800,000
Fully paid in
------------------------------ ------------------------------------ ---------------------- -----------------------------------
F-2
------------------------------ ------------------------------------ ---------------------- -----------------------------------
NAME OF XXXXX SUBSIDIARY SHARE CAPITAL JURISDICTION OF CAPITAL HOLDINGS
(AMOUNT PAID IN) INCORPORATION
OR ORGANIZATION
------------------------------ ------------------------------------ ---------------------- -----------------------------------
ROL 115,284,800,840 Romania 74.99% - XXXXX GmbH
27,115,519,690 17.64% - S.I.F. Banat Crisana
11,342,010,240 7.37% - Other shareholders
S.C. XXXXX X.X.
Total: 153,742,330,720
Fully paid in
------------------------------ ------------------------------------ ---------------------- -----------------------------------
IBT TOB USD 13,000 Ukraine 65% - Xxxxx GmbH
7,000 35% - Ing-Xxxxxx
Total: 20,000
Fully paid in
------------------------------ ------------------------------------ ---------------------- -----------------------------------
BAUXITE MINING AG (in EUR 70,000 Austria 99% - XXXXX GmbH
foundation)
Total: 70,000 1% - XX Xxxxx
Fully paid in
------------------------------ ------------------------------------ ---------------------- -----------------------------------
GUJARAT MINING MINERALS INR 1,000,000 India 99.80% (99,800 shares) - Bauxite
IMPEX PVT. LTD. Mining AG
Total: 1,000,000
Paid in: 896,000 .10% (100 shares) Xx. Xxxxxxxxxx
(= approx. USD 20,000) X. Xxxxx
.10% (100 shares) Prathkumar X.
Xxxxxxxx
------------------------------ ------------------------------------ ---------------------- -----------------------------------
HALLMARK XXXXX Pvt. Ltd. INR 6,400,000 India 40% - XXXXX GmbH
Paid in: 2,921,260
9,600,000 60% - HALLMARK Pvt. Ltd.
Paid in: 4,305,000
Total: 16,000,000
Total paid in: 7,226,260
------------------------------ ------------------------------------ ---------------------- -----------------------------------
F-3
------------------------------ ------------------------------------ ---------------------- -----------------------------------
NAME OF XXXXX SUBSIDIARY SHARE CAPITAL JURISDICTION OF CAPITAL HOLDINGS
(AMOUNT PAID IN) INCORPORATION
OR ORGANIZATION
------------------------------ ------------------------------------ ---------------------- -----------------------------------
ALUMINIUM HOV s.r.l. ROL 2,500,000 Romania 100% - XXXXX GmbH
Total: 2,500,000
Paid in: USD 10,674
------------------------------ ------------------------------------ ---------------------- -----------------------------------
ALUMETAL Sp. z.o.o PLN 24,020,000 Poland 100% - XXXXX Poland
Total: 24,020,000 (20% thereof eventually to be
owned by DI Xxxxxx Xxxxxx)
Fully paid in
------------------------------ ------------------------------------ ---------------------- -----------------------------------
SCHEDULE G
LIST OF XXXXX GROUP AND FINANCE COMPANY LENDERS
XXXXX GMBH:
CREDITANSTALT XX
Xxxxxxxxxxxxx Xxxx(xxxx)x 00
0000 Xxxxxxxxxx
RAIFFEISEN ZENTRALBANK AG
Xx Xxxxxxxxx 0
0000 Xxxx
BANK AUSTRIA AKTIENGESELLSCHAFT
Regionaldirektion Wien-Nord
Xxxxxxxxxxxx 00
0000 Xxxx
ERSTE BANK
Xxxxxx 00
0000 Xxxx
BANK FUR TIROL UND VORARLBERG
Aktiengesellschaft
Xxxxxxxxxx 00
0000 Xxxx
AARGAUISCHE KANTONALBANK
Xxxxxxxxxxxxxx 00
XX- 0000 Xxxxx
BNP PARIBAS (SUISSE) SA
Aeschengraben 26
XX-0000 Xxxxx
BANQUE CANTONALE DE GENEVE
International Department
Trade & Commodities Finance
Xxx xx xx Xxxxxxxxxx 0
X.X. Xxx 0000
XX-0000 XXXXXX 0
MEDIOFACTORING S.P.A.
Xxx Xxxxx xx Xxxxx, 00
00000 Xxxxxx
OBERBANK
Xxxxxxxxxx 00-00
0000 Xxxx
G-2
SOCIETE GENERALE
Xxxxx-Xxxxx-Xxxxxxx 00
0000 Xxxx
ALLGEMEINE XXXXXXXXX XXXXXXXXXXXXXX
Xxxxxxxxx 00
0000 xxxx
P.S.K. OSTERREICHISCHE POSTSPARKASSE AG
Xxxxx-Xxxx-Xxxxx 0
0000 Xxxx
BANQUE COMMERCIALE ET DE GESTION RIVAUD
00-00, Xxx xxx Xxxxxxxxx
X-00000 Xxxxx
METALKO KFT::
RAIFFEISEN BANK RT.
Gyori u.26
HU-2800 Tatabanya
S.C. XXXXX X.X.:
BANCA COMERCIALA ROMANA S.A.
Xxxxxxx Xx (Xxx)
Xxxxx Xxxxxxx xx.0
XX-0000 XXX
ALUMETAL SP Z.O.O:
SG SOCIETE GENERALE
Katowice
Rynek 7
PL-40 092 Katowice
BANK XXXXXX X.X.
Head Office
ul.Warszawska 00
XX-00 000 Xxxxxxxx
UNIMETAL SP Z.O.O:
BANK GOSPODARKI ZYWNOSCIOWEJ SPOLKA AKOYJNA
Oddizial w Wadowicach
pl.Xxxx Pawla nr.4
IC MANAGEMENT SERVICE GMBH:
RAIFFEISEN ZENTRALBANK AG
Xx Xxxxxxxx 0
0000 Xxxx
G-3
CREDITANSTALT XX
XxXxxxxxxxxx Xxxx(xxxx)x 00
0000 Xxxxxxxxxx
XX TRADE & FINANCIAL SERVICES GMBH:
XXXXX XXXX
Xxxxxx 00
0000 Xxxx
GLOBAL BULK TRANSPORT GMBH:
BANK AUSTRIA AKTIENGESELLSCHAFT
Stadtdirektion Wien Nord
Nogorlogacco 10
1020 Wien
XXXXX PULP AND PAPER GMBH:
CREDITANSTALT XX
XxXxxxxxxxxx Xxxx(xxxx)x 00
0000 Xxxxxxxxxx
SCHEDULE H
FORM OF OWNERS AGREEMENT
OWNERS' AGREEMENT
THIS AGREEMENT made effective the 1st day of October, 2001.
AMONG:
GLAMIOX BETEILIGUNGSVERWALTUNGS GmbH, a body corporate organized under
the laws of Austria and having an address at c/o Deloitte & Touche
GmbH, Xxxxxxxxxxxxxxxx 00, X-0000 Xxxxxx, Xxxxxxx
AND:
XXXXXXXX X. XXXXX, a businessperson having a residential address at
Xxxxxxxxxxxxx Xxxxxx 00, 0000 Xxxxxx, Xxxxxxx
AND:
XXXXXXXXX XXXXXXXXXX, a businessperson having a residential address at
Xxxxxxx 0, 0000 Xxxxxxxx, Xxxxxxx
AND:
GARDA INVESTMENTS CORP., a body corporate organized under the laws of
the British Virgin Islands and having an address at c/o 1000 - 000
Xxxx Xxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxx Xxxxxxxx, Xxxxxx, X0X 0X0
WHEREAS:
A. The Capital of Holdco II consists of Euro 35,000 and is currently owned by
Holdco I, and the Shareholders of Holdco II as at the date of the completion of
the Xxxxx Reorganization (as such term is defined in the Investment and
Restructuring Agreement) will be as follows:
NAME OWNED CAPITAL
---- -------------
Holdco I Euro 33,425
JJHovis Euro 1,400
Xxxxxxxxxx Euro 175
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B. The parties wish to work closely together with respect to the operations of
Holdco II and Xxxxx; and
C. The Shareholders wish to establish their respective rights and obligations
with respect to: (i) the Capital of Holdco II owned and to be owned by each of
them; (ii) the management and control of Holdco II and Xxxxx; and (iii) other
matters relating to Holdco II, Xxxxx and the subsidiaries of Xxxxx, all as set
forth in this Agreement.
NOW THEREFORE THIS AGREEMENT WITNESSES that the parties hereto acknowledge,
declare, covenant and agree as follows:
ARTICLE 1 - DEFINITIONS AND INTERPRETATION
1.1 DEFINITIONS. In this Agreement, and in the recitals, unless something in the
subject matter or context is inconsistent therewith, the following capitalized
words and terms shall have the following meanings, respectively:
(a) "ACT OF INSOLVENCY" means, when used in relation to a Shareholder,
that without the prior written consent of all of the other
Shareholders:
(i) the Shareholder becomes bankrupt or, as an insolvent
debtor, takes the benefit of any legislation now or
hereafter in force for bankrupt or insolvent debtors;
(ii) a receiver or other officer with like powers is appointed
for the Shareholder for the substantial part of the assets
of the Shareholder unless the appointment of such receiver
or other officer with like powers is being disputed in good
faith by appropriate proceedings and such proceedings
effectively postpone enforcement of such appointment; or
(iii) a resolution is passed or an order is made or a petition is
filed for the cancellation, dissolution, liquidation,
revocation or winding-up of a Shareholder, unless such
action is being disputed in good faith by appropriate
proceedings and such proceedings effectively postpone
enforcement of the action,
provided that an Act of Insolvency shall be deemed not to have occurred if such
Act of Insolvency occurs through the failure of any of the other Shareholders to
perform its obligations hereunder;
(b) "AGREEMENT" means this owners' agreement made effective October 1,
2001 among Holdco II, JJHovis, Xxxxxxxxxx and Holdco I, including
all schedules hereto, as amended from time to time;
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(c) "BOARD" means the managing directors of Holdco II or Xxxxx, as
applicable, as may be appointed from time to time by resolution of
the Shareholders (Vorstand, within the meaning of Sections 15-28
of the GmbHG);
(d) "BUSINESS DAY" means any day on which banks are open for business
in Vienna, Austria;
(e) "CAPITAL" means the nominal share capital of Holdco II and, with
respect to each Shareholder, means the Capital of such Shareholder
in Holdco II;
(f) "EARN IN PERIOD" means the period during which JJHovis and/or
Xxxxxxxxxx are entitled to the earn in of Capital pursuant to the
terms of Schedule "A" to the Investment and Restructuring
Agreement. For greater certainty, the Earn In Period shall end,
inter alia, upon any event that results in the termination of the
entitlement to the earn in of Capital pursuant to the terms of
Schedule "A" to the Investment and Restructuring Agreement;
(g) "FIRMENBUCH" means the commercial register maintained by the court
in Vienna;
(h) "GAAP" means generally accepted accounting principles in the
United States consistently applied, that are in effect from time
to time;
(i) "GMBHG" means the Austrian Limited Liability Companies Act, as
amended, supplemented or restated from time to time; provided that
a reference to a specific section of the GmbHG is made to the
section of the GmbHG in effect as of the date of this Agreement;
(j) "GOVERNMENTAL APPROVAL" means the consent of any Governmental
Authority which may be required at any time and from time to time
to ensure that the acquisition of the Capital of a Shareholder is
not in contravention of any law, regulation or published policy
of, or administered by, such Governmental Authority or which may
be required in order to ensure that, notwithstanding the purchase
of the Capital of a Shareholder, the holding or continued holding
by Holdco II of any franchise, licence, permit or other permission
or authority required to carry on its business is unaffected;
(k) "GOVERNMENTAL AUTHORITY" means any legislative, executive,
judicial or administrative body, court or person whether federal,
state or local and any governmental authority, governmental
tribunal or governmental commission of any kind whatsoever having
jurisdiction in the relevant circumstances;
(l) "HOLDCO I" means Garda Investments Corp.;
(m) "HOLDCO II" means Glamiox Beteiligungsverwaltungs GmbH;
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(n) "XXXXX" means Xxxxx GmbH, a body corporate organized under the
laws of Austria;
(o) "XXXXX GROUP" has the meaning ascribed thereto in the Investment
and Restructuring Agreement;
(p) "IMPORTANT REASONS" means any Act of Insolvency, any seizure of
Capital if such seizure remains uncured as set forth in Section
7.1(d) of this Agreement, important reasons with respect to any
Shareholder (wichtiger Xxxxx in der Person des Gesellschafters)
within the meaning of German law and any foreclosure in respect of
a Shareholder (Ausschluss aus der Gesellschaft);
(q) "INFORMATION" means any and all information in respect of Holdco
II and Xxxxx furnished by any of the parties hereto to another,
and, where applicable, to its respective directors, officers,
employees, agents or representatives in any and all analyses,
compilations, data studies or other documents, whether in oral or
written form or on computer disks or other forms of electronic
storage, prepared by any of the parties hereto or its respective
representatives containing or based upon any such information;
(r) "INVESTMENT AND RESTRUCTURING AGREEMENT" means an investment and
restructuring agreement dated for reference October 1, 2001 among
Xxxxxx Park International Limited, Holdco I, MFC, Holdco II, Xxxxx
GmbH, JJHovis, Xxxxxxxx Xxxxx and Xxxxxxxxxx whereby, among other
things, the Shareholders agreed to subscribe for and purchase
Capital of Holdco II on the terms and conditions set out therein;
(s) "JJHOVIS" means Xxxxxxxx X. Xxxxx;
(t) "MAJOR SHAREHOLDER" means Holdco I;
(u) "MANAGING DIRECTOR" means a person appointed as a managing
director of Holdco II or Xxxxx, as applicable, by resolution of
the Shareholders;
(v) "MFC" means MFC Bancorp Ltd., a body corporate organized under the
laws of the Yukon Territory in Canada;
(w) "NOMINEE" means a person nominated for appointment as a managing
director of Holdco II or Xxxxx, as applicable, pursuant to the
terms of this Agreement and who, upon nomination, is appointed as
a managing director by resolution of the Shareholders;
(x) "PERMITTED TRANSFEREE" means, in respect of any Shareholder:
(i) a body corporate of which such Shareholder is the sole
owner;
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(ii) a trust of which such Shareholder is the sole beneficiary;
or
(iii) any person who is the sole owner of such Shareholder.
(y) "PERSON" includes an individual, sole proprietorship, partnership,
unincorporated association, unincorporated syndicate,
unincorporated organization, trust, body corporate, and a natural
person in his capacity as trustee, executor, administrator or
other legal representative;
(z) "PROKURIST" means a person appointed as a Prokurist (within the
meaning of Austrian law) of Holdco II or Xxxxx, as applicable;
(aa) "RULES OF PROCEDURE" means, for Holdco II, the rules of procedure
of Holdco II in substantially the form as set forth in Schedule
"A" hereto and, for Xxxxx and any company in the Xxxxx Group,
rules of procedure in substantially the same form as set forth in
Schedule "A" hereto;
(bb) "SHAREHOLDER" means any person who from time to time owns Capital
in Holdco II and is bound by the provisions of this Agreement and
the articles of association (Gesellschaftsvertrag) of Holdco II,
the Shareholders as at the date of the completion of the Xxxxx
Reorganization (as such term is defined in the Investment and
Restructuring Agreement) being Holdco I, JJHovis and Xxxxxxxxxx;
(cc) "XXXXXXXXXX" means Xxxxxxxxx Xxxxxxxxxx; and
(dd) "TRIGGERING EVENT" has the meaning ascribed thereto in Section 7.1
hereof.
ARTICLE 2 - COVENANTS
2.1 VOTING TO GIVE EFFECT TO AGREEMENT. The Shareholders shall exercise all of
their voting rights with respect to the Capital and other powers of control
available to them in relation to Holdco II, Xxxxx and the Xxxxx Group in order
to give full effect to this Agreement and ensure that the affairs of Holdco II,
Xxxxx and the Xxxxx Group are conducted pursuant to the terms hereof.
2.2 ARTICLES OF ASSOCIATION (GESELLSCHAFTSVERTRAG). The articles of association
(Gesellschaftsvertrag) of Holdco II, Xxxxx and/or the Xxxxx Group, as
applicable, shall be amended, as required, to conform to and comply with the
terms of this Agreement. The articles of association (Gesellschaftsvertrag) of
Holdco II shall, inter alia:
(a) provide for the possibility of dividing shares as required by
Section 79(1) of the GmbHG;
(b) contain a provision whereby the Shareholders may make
distributions other than pro rata to the respective percentage of
the nominal share capital of Holdco II (such latter provision
translated into German as: "Die Gesellschafter koennen von
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ihren Geschaeftsanteilen an der Gesellschaft abweichende
Gewinnausschuettungen beschliessen"); and
(c) provide for the compulsory forfeiture of Capital by a Shareholder
upon the occurrence or existence of any Important Reasons with
respect to such Shareholder.
2.3 DISTRIBUTIONS OF FREE CAPITAL RESERVES (UNGEBUNDENE KAPITALRUECKLAGEN). The
parties agree that any future distributions of free capital reserves
(ungebundene Kapitalruecklagen) of Holdco II in excess of retained earnings
(i.e., profit reserves) of Holdco II up to the aggregate amount of contributions
to the free capital reserves (ungebundene Kapitalruecklagen) directly or
indirectly (e.g., including grandfather contributions) made by Shareholders,
including any distribution of such free capital reserves (ungebundene
Kapitalruecklagen) when distributing liquidation proceeds or when making
payments in the course of a decrease of the share capital, will be made pro rata
to the amounts contributed by the Shareholders or any shareholder thereof to the
free capital reserves (ungebundene Kapitalruecklagen) of Holdco II prior to such
distributions. The same shall apply in the case of a sale of all of the share
capital of Holdco II, in which event the proceeds of the sale, up to the
aggregate amount of contributions to the free capital reserves (ungebundene
Kapitalruecklagen) directly or indirectly (e.g., including grandfather
contributions) made by Shareholders, will be allocated first pro rata to those
Shareholders who directly or indirectly (e.g., including grandfather
contributions) contributed to the free capital reserves (ungebundene
Kapitalruecklagen) of Holdco II. For greater certainty, the transfer of capital
of Xxxxx to Holdco II pursuant to the terms of the Investment and Restructuring
Agreement is not considered to be a contribution to the free capital reserves
(ungebundene Kapitalruecklagen) within the context of this Section 2.3.
2.4 DISTRIBUTION OF PROCEEDS. In the event of the distribution of capital of
Holdco II during the Earn In Period when distributing liquidation proceeds or
making payments in the course of a decrease of the share capital with respect to
Holdco II, such distribution, after making the distributions of free capital
reserves (ungebundene Kapitalruecklagen) pursuant to Section 2.3 hereof, shall
be made pro rata to the Capital of Holdco II owned by the Shareholders; provided
that, for the purpose of such distribution, JJHovis and Xxxxxxxxxx shall be
deemed to own the percentage of the Capital of Holdco II derived by giving
effect to the percentage of the maximum earn in of Capital achieved by JJHovis
and Xxxxxxxxxx pursuant to Sections 2.2 and 2.3 of Schedule "A" to the
Investment and Restructuring Agreement calculated by dividing the Consolidated
Holdco II Net Worth (as such term is defined in Schedule "A" to the Investment
and Restructuring Agreement) on the date of assessment of the proceeds of such
distribution by Euro 23,500,000.
2.5 DISTRIBUTION OF SPECIFIC CONTRIBUTION. JJHovis and Xxxxxxxxxx each hereby
acknowledge and agree that the 100% shareholder of Holdco I has contributed or
will contribute Euro 7,965,000 to the free capital reserves (ungebundene
Kapitalruecklagen) of Holdco II on or before the Closing Date (as such term is
defined in the Investment and Restructuring Agreement), which has been or will
be allocated to the capital reserve account of Holdco II. JJHovis and Xxxxxxxxxx
each hereby covenant and agree to vote in favour of and entirely for the benefit
of Holdco I in respect of all resolutions concerning the distribution of free
capital reserves
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(ungebundene Kapitalruecklagen) amounting to Euro 7,965,000, in excess of
retained earnings, to Holdco I, provided such resolutions are not passed prior
to the earlier of: (i) the termination of the Target Period (as such term is
defined in Schedule"A" to the Investment and Restructuring Agreement); or (ii)
any earn in of Capital being effected pursuant to Sections 2.2 and 2.3 of
Schedule "A" to the Investment and Restructuring Agreement prior to the
termination of the Target Period (as such term is defined in Schedule "A" to the
Investment and Restructuring Agreement), and each of JJHovis and Xxxxxxxxxx
hereby irrevocably constitutes and appoints Holdco I and any other person
appointed by Holdco I as its true and lawful attorney-in-fact and agent for, in
the name of and on behalf of each of JJHovis and Xxxxxxxxxx, to act and vote and
otherwise exercise all powers exercisable with respect to any approval of the
Shareholders required under this Section 2.5 or take part in or consent to any
such Shareholders' action, and when so acting or refraining from acting, neither
Holdco I nor any person appointed by Holdco I shall incur any liability or
responsibility of any kind whatsoever to JJHovis or Xxxxxxxxxx. In addition,
JJHovis and Xxxxxxxxxx each hereby jointly and severally covenant and agree to
deliver to Holdco I, on or prior to the Closing Date (as such term is defined in
the Investment and Restructuring Agreement), a letter substantially in the form
as set forth in Schedule "C" hereto. For greater certainty, Holdco I covenants
and agrees that, it will not, prior to the earlier of the dates in (i) and (ii)
above, and unless otherwise specifically contemplated pursuant to the terms of
this Agreement, act or vote to distribute in its favour the Euro 7,965,000
contribution to the free capital reserves (ungebundene Kapitalruecklagen) of
Holdco II referred to above.
2.6 EXAMINATION BY SHAREHOLDERS. The Shareholders shall be permitted to examine
the books, accounts and other records of Holdco II, Xxxxx and the Xxxxx Group
during normal business hours and shall be provided at least monthly all relative
or substantial information including interim management reports, operating
reports, trading reports, financial reports and such other information as they
may reasonably require to keep them properly advised about the business and
prospects of Holdco II, Xxxxx and the Xxxxx Group.
2.7 NOMINEES AND PROKURISTS. Holdco I, JJHovis and Xxxxxxxxxx each severally
covenants and agrees to ensure that its Nominees and its Prokurists shall
operate in accordance with and to give effect to the terms of this Agreement,
the Rules of Procedure and the articles of association (Gesellschaftsvertrag) of
Holdco II, Xxxxx and the Xxxxx Group.
2.8 SURVIVAL. The covenants, representations and warranties contained in this
Agreement shall survive the execution and delivery of this Agreement and,
notwithstanding such execution and delivery and regardless of any investigation
made by or on behalf of any party hereto with respect thereto, shall continue in
full force and effect for the benefit of each party hereto to which such
covenants, representations and warranties were made until the expiry of three
years following the termination of this Agreement.
ARTICLE 3 - MANAGEMENT OF HOLDCO II AND XXXXX
3.1 ADOPTION OF RULES OF PROCEDURE. The Shareholders covenant to adopt the Rules
of Procedure for Holdco II and to cause Xxxxx and each company in the Xxxxx
Group to adopt Rules of Procedure as soon as practicable following the entering
into of this Agreement and all
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future managing directors and Prokurists shall be bound by the inclusion of a
reference to the Rules of Procedure and the articles of association
(Gesellschaftsvertrag) of Holdco II, Xxxxx and the Xxxxx Group in their
appointment and in their service and/or employment contracts. BOARD. Subject to
the terms of this Agreement, the business and affairs of Holdco II and Xxxxx
shall be managed by their respective managing directors. The Board shall consist
of such Nominees as certain Shareholders may nominate and as the Shareholders
shall appoint from time to time in accordance with the provisions of this
Article 3. Other than from time to time as agreed upon by the Shareholders of
Holdco II or the Shareholders of Xxxxx with respect to the day-to-day business
of Holdco II and Xxxxx, respectively, or other than as set forth in this
Agreement, the Rules of Procedure or the articles of association
(Gesellschaftsvertrag) of Holdco II and/or Xxxxx, decisions of the Board shall
require the unanimous consent of all of the managing directors. In the event the
managing directors are not able to reach such unanimous consent, where required,
each managing director is entitled to refer a matter to the decision of the
Major Shareholder, which decision shall be binding on the managing directors.
The non compliance of a managing director with such decision is considered an
important reason (wichtiger Xxxxx) for removal as managing director. Regardless
of such internal rules, the powers of the managing directors to represent and to
legally bind Holdco II and/or Xxxxx, as applicable, are set forth in Section 3.3
hereof.
3.3 NOMINEES, COMPOSITION OF BOARD AND POWER OF REPRESENTATION
(VERTRETUNGSBEFUGNIS). During the Earn In Period, JJHovis and Xxxxxxxxxx shall
each be entitled to nominate and appoint one Nominee to the Board of Holdco II
and, directly or indirectly, one Nominee to the Board of Xxxxx. Holdco I shall,
at any time, be entitled to nominate and appoint any number of Nominees to the
Board of Holdco II and, directly or indirectly, to the Board of Xxxxx. The
Nominees shall be appointed by way of resolutions of the Shareholders of Holdco
II and by resolutions of the shareholder of Xxxxx, respectively. However, any
person to be appointed as a Nominee must be fit and proper and shall not be
likely to act contrary to the best interests of Holdco II, Xxxxx and/or the
Xxxxx Group. In particular with regard to Section 18 of the GmbHG, the parties
hereto agree to the following general and specific rules of representation:
(a) Holdco II and Xxxxx shall be legally represented by one or more
managing directors, or one managing director together with a
Prokurist; provided that, in the event more than one managing
director of Holdco II and/or Xxxxx is appointed, a Nominee
nominated by JJHovis and/or Xxxxxxxxxx shall only be entitled to
represent Holdco II or Xxxxx, as applicable, together with a
Nominee or a Prokurist nominated by Holdco I and, except as set
forth in (b) below, vice versa (i.e., two signatures);
(b) Notwithstanding the foregoing, any Nominee nominated by Holdco I
for the Board of Holdco II or directly or indirectly for the Board
of Xxxxx who is also the President or a Vice-President of MFC,
shall be entitled, in principle, to act alone only: (i) in the
event that the Board does not comply with decisions, orders and/or
instructions of the Shareholders owning a majority of the
outstanding Capital and/or resolutions adopted at a meeting of
Shareholders; (ii) in the event of urgent matters material for
Holdco II and/or Xxxxx, as applicable, which require
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immediate attention; or (iii) in the event that neither JJHovis
nor Xxxxxxxxxx has nominated any Nominees to the Board; and
(c) When appointing Nominees, the afore-mentioned powers shall be
registered in the Firmenbuch.
To the extent possible, the rules, procedures and concepts set forth above in
this Section 3.3 shall also apply, with any necessary modifications, to the
management of each of the companies in the Xxxxx Group.
3.4 APPOINTMENT OF INITIAL NOMINEES. The following individuals shall initially
be nominated by the following Shareholders and initially be appointed as the
Nominees to the Boards of Holdco II and Xxxxx by resolution of the Shareholders
of Holdco II and the shareholder of Xxxxx, respectively:
HOLDCO II
NAME OF SHAREHOLDER NAME OF NOMINEE
------------------- ---------------
Holdco I Xxxxxxx Xxxxx
Xxxxxxx Xxxxxxx
Xxxxx Xxxxxx
JJHovis Xxxxxxxx X. Xxxxx
Xxxxxxxxxx Xxxxxxxxx Xxxxxxxxxx
XXXXX
NAME OF SHAREHOLDER NAME OF NOMINEE
------------------- ---------------
Holdco I Xxxxxxx Xxxxx
Xxxxxxx Xxxxxxx
Xxxxx Xxxxxx
JJHovis Xxxxxxxx X. Xxxxx
Xxxxxxxxxx Xxxxxxxxx Xxxxxxxxxx
3.5 APPOINTMENT OF PROKURISTS. Holdco I, JJHovis and Xxxxxxxxxx and/or their
Nominees of Holdco I shall be entitled to nominate Prokurists for each of Holdco
II and Xxxxx and the Shareholders and/or the Nominees, as applicable, shall
appoint such nominated Prokurists. The Prokurists nominated by Holdco I or a
Nominee of Holdco I and appointed as Prokurists shall be conferred the powers
required under Section 18(3) of the GmbHG. Any Prokurist nominated by JJHovis
and/or Xxxxxxxxxx and/or a Nominee of JJHovis and/or Xxxxxxxxxx shall be
conferred the
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power to represent Holdco II or Xxxxx only together with a Nominee of Holdco I.
The powers of any existing Prokurist(s) of Holdco II and/or Xxxxx, as
applicable, shall be amended or restricted such that they can represent Holdco
II and/or Xxxxx only together with a Nominee nominated by Holdco I.
3.6 MANAGING DIRECTORS AND PROKURISTS TO ACT IN BEST INTERESTS. Each managing
director and each Prokurist in exercising his powers and discharging his duties
shall act honestly and in good faith with a view to the best interests of Holdco
II and/or Xxxxx, as applicable, and exercise the care, diligence and skill that
a reasonably prudent person would exercise in comparable circumstances. Any acts
mentioned in Section 18(4) of the GmbHG shall be notified immediately to all
managing directors.
3.7 DISCLOSURE OF CONFLICTS OF INTERESTS. A managing director of the Board of
Holdco II and/or Xxxxx (the "Executive") who is a party to a material contract
or proposed material contract with Holdco II and/or Xxxxx and/or any of their
subsidiaries (a "Material Contract") or is a director, officer or senior manager
of, or has a material interest in any person who is a party to a Material
Contract shall promptly, fully and frankly disclose in writing to Holdco II
and/or Xxxxx, as applicable, or request to have entered in the minutes of
meetings of the Board, the nature and extent of his interest.
3.8 RESTRICTION OF POWERS OF BOARD. To the extent that this Agreement, the Rules
of Procedure or the articles of association (Gesellschaftsvertrag) of Holdco II
or Xxxxx, as applicable, specifies that any matters may only be or shall be
dealt with or approved by or shall require action by the Shareholders, the
discretion and powers of the Board to manage and to supervise the management of
the business and affairs of Holdco II and/or Xxxxx, as applicable, with respect
to such matters are correspondingly restricted.
3.9 REMOVAL OF MANAGING DIRECTORS. Each Shareholder shall at any time and from
time to time be entitled to request the removal as a managing director of a
Nominee nominated to the Board by such Shareholder. Such managing directors
shall be removed as managing directors by resolutions of the Shareholders of
Holdco II and by resolutions of the shareholder of Xxxxx, respectively.
ARTICLE 4 - OPERATION AND FINANCE
4.1 BANK ACCOUNTS. Holdco II and Xxxxx shall maintain bank accounts at such bank
or trust company as its respective Board shall from time to time determine. All
bank accounts shall be kept in the name of Holdco II or Xxxxx, as applicable,
and all cheques, bills, notes, drafts or other instruments shall require the
signatures of such individuals as its respective Board may from time to time
determine.
4.2 ACCOUNTING RECORDS. Proper books of account shall be kept by Holdco II and
Xxxxx and entries shall be made therein of all matters, terms, transactions and
things as are usually written and entered into books of account in accordance
with GAAP and each of the parties hereto shall at all times furnish to the
others correct information, accounts and statements of and concerning
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all transactions pertaining to Holdco II and Xxxxx without any concealment or
suppression. Within sixty (60) days of the end of the fiscal year of Holdco II
and Xxxxx, the books and accounts and the annual financial statements of Holdco
II shall be prepared in accordance with GAAP and audited and certified by an
internationally recognized accounting firm and thereupon be submitted to the
Board of Holdco II for submission to the Shareholders' meeting.
4.3 ADDITIONAL BORROWING. The parties hereto agree that all funds required for
the purposes of Holdco II, Xxxxx and/or the Xxxxx Group shall be obtained, to
the greatest extent possible, by borrowing from a bank or other third party
lender or otherwise accessing the capital markets. The decision whether such
funds are required, from whom such funds will be borrowed and the terms and
conditions of such borrowing shall be determined from time to time by the Board
of Holdco II.
ARTICLE 5 - RESTRICTIONS ON TRANSFER OF CAPITAL
5.1 NO DEALING WITH CAPITAL. Each of the Shareholders covenants that it will not
sell, assign, donate, encumber, transfer, mortgage, pledge, charge, subject to a
security interest, hypothecate, or otherwise dispose of or in any way
whatsoever, directly or indirectly, deal with the ownership of any Capital,
securities convertible into Capital now or hereafter owned by it, except in
accordance with the terms of this Agreement or the Investment and Restructuring
Agreement, or except with the prior written unanimous consent of the other
Shareholders. For greater certainty, the provisions of Article 6 hereof shall
not apply to any transfer or contribution of Capital made pursuant to the terms
of the Investment and Restructuring Agreement or pursuant to Section 5.2 hereof.
5.2 TRANSFER TO PERMITTED TRANSFEREE. Notwithstanding the provisions of Section
5.1 hereof and any other provisions of this Agreement which restrict the
disposition of or dealing with Capital, a Shareholder shall at any time or from
time to time have the right, without the approval of the other Shareholders, to
dispose of all or any Capital held by such Shareholder to a Permitted
Transferee, provided that at the time of such disposition:
(a) such Permitted Transferee shall agree with the other parties
hereto in writing and in form and substance satisfactory to the
other Shareholders, acting reasonably, to assume and be bound by
all of the terms and obligations contained in this Agreement as if
such Permitted Transferee had entered into this Agreement in the
place and stead of the Shareholder from whom such Capital is
acquired;
(b) the Permitted Transferee agrees to remain a Permitted Transferee
of the Shareholder from whom such Capital is acquired for so long
as the Permitted Transferee is an owner of any Capital; and
(c) (c) the Shareholders receive in form and substance satisfactory to
them, acting reasonably, evidence that the Permitted Transferee is
a Permitted Transferee of the Shareholder from whom Capital is to
be acquired and that the Agreements
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referred to in Subsections 5.2(a) and (b) above, are legal, valid
and binding obligations of the Permitted Transferee.
5.3 CONTINUING LIABILITY OF SHAREHOLDERS. Notwithstanding a disposition of
Capital to a Permitted Transferee, a disposing Shareholder shall vis-a-vis the
other parties hereto remain liable as principal obligant under all covenants of
such disposing Shareholder contained in this Agreement, and the disposing
Shareholder agrees to unconditionally guarantee and underwrite to the other
parties hereto the due performance by the Permitted Transferee of all
obligations imposed on such Permitted Transferee under this Agreement.
ARTICLE 6 - RIGHT OF FIRST REFUSAL
6.1 NOTICE OF PROPOSED SALE. If any Shareholder (in this Article 6 referred to
as the "Offeror") receives a bona fide written offer (in this Article 6 referred
to as the "Offer") from any person, firm or corporation dealing at arm's length
with the Offeror to purchase all or any part of the Capital owned by such
Shareholder, which is acceptable to the Shareholder, such Shareholder shall give
notice of such Offer (in this Article 6 referred to as the "Notice") to the
other Shareholders and shall set out in the Notice the amount of Capital to be
sold pursuant to the Offer (in this Article 6 referred to as the "Offered
Capital") and the terms upon which and the price at which (in this Article 6
referred to as the "Offered Capital Purchase Price") such Offered Capital will
be sold pursuant to the Offer. An Offer shall not provide for any consideration
other than cash consideration.
6.2 RIGHT TO PURCHASE OFFERED CAPITAL. Upon the Notice being given, the other
Shareholders (in this Article 6 sometimes collectively referred to as the
"Offerees" and sometimes individually referred to as an "Offeree") shall have
the right to purchase all, but not less than all, of the Offered Capital for the
Offered Capital Purchase Price. The Offerees shall be entitled to purchase the
Offered Capital pro rata based upon the amount of the Capital owned by each
Offeree or to purchase in such other proportion as the Offerees may agree in
writing.
6.3 NOTICE OF PURCHASE AND ADDITIONAL PURCHASES. Within ten Business Days of
having been given the Notice, each Offeree desiring to purchase all of the
Offered Capital that it is entitled to purchase in accordance with the
provisions of Section 6.2 hereof shall give notice thereof to the Offeror and to
the other Offerees. If any Offeree does not give such notice, the Offered
Capital that it had been entitled to purchase (in this Section 6.3 referred to
as the "Rejected Capital") may instead be purchased by the Offerees who did give
such notice, pro rata based upon the amount of the Capital owned by such
Offerees as between themselves or in such other proportion as such Offerees may
agree in writing, and, within five Business Days of the expiry of the ten
Business Day period specified in this Section 6.3, each Offeree who desires to
purchase all of the Rejected Capital that it is entitled to purchase in
accordance with the provisions of this Section 6.3 shall give an additional
notice thereof to the Offeror and to the other Offerees. If any Offeree entitled
to give the said additional notice does not do so, the Rejected Capital that it
had been entitled to purchase may instead be purchased by the Offerees who did
give such notice, and so on from time to time until the Offerees are willing to
purchase all of the Offered Capital or until they are not willing to purchase
any more. If the Offerees are
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willing to purchase all, but not less than all, of the Offered
Capital, the transaction of purchase and sale shall be completed
in accordance with the terms set out in the Notice.
6.4 WHAT CAPITAL CAN BE SOLD TO THIRD PARTY. If the Offerees do not give notice
in accordance with the provisions of Section 6.3 hereof that they are willing to
purchase all of the Offered Capital, the rights of the Offerees, subject as
hereinafter provided, to purchase the Offered Capital shall forthwith cease and
determine and the Offeror may sell the Offered Capital to the third party
purchaser within 60 days after the expiry of the ten Business Day period or five
Business Day periods, as the case may be, specified in Section 6.3 hereof, for a
price not less than the Offered Capital Purchase Price and on other terms no
more favourable to such person than those set forth in the Notice, provided that
the person to whom the Offered Capital is to be sold agrees prior to such
transaction to be bound by this Agreement and to become a party hereto in place
of the Offeror with respect to the Offered Capital. If the Offered Capital is
not sold within such 60 day period on such terms, the rights of the Offerees
pursuant to this Article 6 shall again take effect and so on from time to time.
ARTICLE 7 - TRIGGERING EVENTS
7.1 TRIGGERING EVENTS DEFINED. A Triggering Event is the occurrence of any one
of the following events with respect to a Shareholder (the "Defaulting
Shareholder"):
(a) the occurrence or existence of Important Reasons that result in
the forfeiture of Capital (Einziehung von Geschaeftsanteilen) of
the Shareholder or foreclosure (Ausschliessung als Gesellschafter)
with respect to the Shareholder;
(b) an Act of Insolvency;
(c) a default occurs which is not remedied or cured within fifteen
(15) days of its occurrence under any loan or obligation for which
security has been granted by way of a mortgage, hypothecation or a
pledge of, or the granting of a security interest in any Capital
held by the Shareholder (including any loan or obligation for
which security has been granted) with the result that, absent any
provision of this Agreement and upon compliance with applicable
law, the lender or obligee could realize upon such security; or
(d) the Capital of the Shareholder is seized and such seizure is not
lifted within one month from the date of seizure.
A Defaulting Shareholder shall give notice to the other parties then bound by
this Agreement that an event has occurred with respect to such Defaulting
Shareholder which constitutes a Triggering Event or which would, if such event
is not corrected or remedied or otherwise resolved to the satisfaction of the
other Shareholders and Holdco II as contemplated above, constitute such a
Triggering Event. Such notice shall be given forthwith after the occurrence of
the particular event.
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7.2 OBLIGATION OF A DEFAULTING SHAREHOLDER FOLLOWING TRIGGERING EVENT. Upon the
occurrence of a Triggering Event, the Defaulting Shareholder shall forthwith
offer to sell all of its Capital to the other Shareholders (in such case, the
"Non-Defaulting Shareholders") by notarized notice to the Non-Defaulting
Shareholders (the "Sale Notice"). The purchase price for such Capital shall be
determined in accordance with Section 7.6 hereof and shall be payable by way of
certified cheque or bank draft. The offer set out in the Sale Notice shall be
irrevocable. Upon the Sale Notice being given, the Non-Defaulting Shareholders
or a person or persons named by a resolution of the Non-Defaulting Shareholders
(including but not limited to Holdco II or any third party), in the sole
discretion of the Non-Defaulting Shareholders, shall have the right to purchase
all, but not less than all, of the Defaulting Shareholder's Capital, pro rata
based upon the amount of Capital owned by each Non-Defaulting Shareholder or in
such other proportion as the Non-Defaulting Shareholders may agree, by notarized
acceptance of the offer to the Defaulting Shareholder within fifteen (15) days
after receipt of the Sale Notice (the "Notice Period"). If no notarized
acceptance is given under this Section 7.2, the Non-Defaulting Shareholders
shall be deemed to have rejected the offer made available to it to purchase the
Capital of the Defaulting Shareholder. If no Sale Notice is given by a
Defaulting Shareholder under this Section 7.2, the Non-Defaulting Shareholders
shall have the right to request the purchase of the Capital of the Defaulting
Shareholder. The completion of a purchase and sale of the Defaulting
Shareholder's Capital under this Section 7.2 shall take place on the 15th day
after the expiry of the Notice Period, provided that if the purchase price of
the Capital has not been determined by such day, the completion shall take place
on the 10th day after the date on which the purchase price has been conclusively
determined pursuant to Section 7.6 hereof.
Regardless of the terms and conditions set out in this Section 7.2, Holdco II
may upon the occurrence of a Triggering Event, prior to the receipt of the Sale
Notice and at any time until completion of the purchase as described above, pass
a resolution to forfeit the Capital of the Defaulting Shareholder. The
compensation to be paid for such forfeited Capital shall be determined in
accordance with Section 7.6 hereof.
7.3 CAPITAL/VOTING/NOMINEES OF DEFAULTING SHAREHOLDER. Notwithstanding anything
to the contrary herein contained, upon a Triggering Event:
(a) the Defaulting Shareholder shall not have any rights to or
interests in Capital contained in Schedule "A" to the Investment
and Restructuring Agreement;
(b) the Defaulting Shareholder shall not be entitled to nominate any
person as a Nominee or Prokurist and such Defaulting Shareholder
in conjunction with the other Shareholders shall cause such
Nominee or Prokurist of the Defaulting Shareholder to forthwith
resign or be removed and a Nominee or Prokurist of such Defaulting
Shareholder shall be replaced with such person or persons as may
be designated by the Non-Defaulting Shareholders provided that if
such Triggering Event is subsequently remedied, the Defaulting
Shareholder shall again be entitled to nominate a person as
Nominee or Prokurist as provided hereunder and all of the
Shareholders shall take all necessary steps in this regard; and
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(c) the Defaulting Shareholder shall not be entitled to vote its
Capital or to notice of meetings of Shareholders and, where a vote
of the Shareholders is required, the Non-Defaulting Shareholders
shall be deemed to own all of the Capital, provided that if such
Triggering Event is subsequently remedied, such Defaulting
Shareholder shall again be entitled to vote its Capital and to
notice of meetings of Shareholders. In addition, the Defaulting
Shareholder hereby irrevocably gives its proxy to the
Non-Defaulting Shareholders to vote its Capital in any matter that
such Shareholders determine and hereby appoints such Shareholders
as its attorney to execute all necessary documents on behalf of
the Defaulting Shareholder to give effect to such proxy.
7.4 OTHER REMEDIES. Upon the occurrence of any Triggering Event, in addition to
the rights in Section 7.2 hereof, the Non-Defaulting Shareholders shall be
entitled to bring any action at law as may be permitted in order to recover
damages or to bring any proceedings in the nature of specific performance,
injunction or other remedy, it being acknowledged by the Shareholders that
damages at law may be an inadequate remedy for a default, breach or threatened
breach of this Agreement.
7.5 NON-WAIVER. No consent or waiver of any breach or Triggering Event by any
Shareholder in the performance of its obligations under this Agreement shall be
deemed to be construed to be consent to or waiver of any other breach or
Triggering Event by that Shareholder of the same or any other obligations of
that Shareholder under this Agreement. Failure by any Shareholder to complain of
any act or failure to act of the other Shareholder or to declare a Triggering
Event in respect of the other Shareholder, irrespective of how long such failure
continues, shall not constitute a waiver by that Shareholder of its rights under
this Agreement.
7.6 DETERMINATION OF PURCHASE PRICE. For the purposes of Section 7.2 hereof, the
"purchase price" for the Defaulting Shareholder's Capital shall be equal to: (i)
the portion of the Consolidated Holdco II Net Worth (as such term is defined in
the Investment and Restructuring Agreement) less the amount of any capital
contributions made directly or indirectly (e.g., including grandfather
contributions) to the free capital reserves (ungebundene Kapitalruecklagen) of
Holdco II after the effective date of this Agreement attributable to the
Defaulting Shareholder's Capital as at the applicable date; plus (ii) the whole
amount of any capital contributions made directly or indirectly (e.g., including
grandparent contributions) to the free capital reserves (ungebundene
Kapitalruecklagen) of Holdco II by the Defaulting Shareholder after the
effective date of this Agreement. For greater certainty, the transfer of the
capital of Xxxxx to Holdco II pursuant to the terms of the Investment and
Restructuring Agreement is not considered to be such capital contributions.
ARTICLE 8 - GENERAL SALE PROVISIONS
8.1 APPLICATION OF GENERAL SALE PROVISIONS. Except as may otherwise be provided
in this Agreement, the provisions of this Article 8 shall apply to any purchase
and sale of Capital (in this Article 8 referred to as the "Sold Capital")
pursuant to this Agreement.
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8.2 REQUIREMENTS OF VENDOR. On the date of closing (in this Article 8 referred
to as the "Completion Date"), a Shareholder selling Sold Capital pursuant to the
terms of this Agreement (in this Article 8 also referred to as a "Vendor") shall
deliver or cause to be delivered to the purchaser(s) appropriate transfers duly
executed by the Vendor and duly notarized (if required), together with a
representation and warranty executed by the Vendor in favour of the purchaser(s)
that the Sold Capital is owned by the Vendor with good and marketable title
thereto, free and clear of any mortgage, lien, charge, pledge, hypothecation,
security interest, encumbrance, restriction, covenant, right, demand or adverse
claim of any kind.
8.3 REQUIREMENTS OF PURCHASER. On the Completion Date, the Shareholder(s)
purchasing the Sold Capital (in this Article 8 referred to as the
"Purchaser(s)") shall pay the purchase price for the Sold Capital on closing by
negotiable cheque certified by an Austrian or German bank or an official bank
draft drawn on a bank in Austria or Germany.
8.4 COVENANTS OF THE PARTIES. The parties hereto covenant and agree that from
and after the occurrence of an event giving rise to a transaction of purchase
and sale pursuant to the terms hereof, they shall do all things necessary or
desirable to cause the transaction of purchase and sale to be completed as soon
as possible.
8.5 NO JOINT LIABILITY. For greater certainty, the parties hereto acknowledge
and agree that the Purchasers in any transaction of purchase and sale
contemplated in this Agreement are not jointly liable for the payment of the
purchase price for the Sold Capital but are only liable for their proportionate
share thereof.
8.6 DATE OF CLOSING. For the purposes of this Agreement the closing of any
transaction of purchase and sale contemplated in this Agreement, as the case may
be, shall take place at Holdco II's registered office at 2:00 p.m. Central
European Time on the Completion Date or at such other place and time as
otherwise mutually agreed upon by the parties hereto, subject only to
registration in the Firmenbuch.
8.7 GOVERNMENTAL APPROVALS. If any Governmental Approval is required by the
Purchaser(s) under any provision of this Agreement, then, notwithstanding
anything contained in this Agreement, the time period specified in this
Agreement for acceptance of any offer by the Purchaser(s) shall be extended for
an additional sixty (60) days to permit the Purchaser(s) to obtain the necessary
Governmental Approval. Any such application for Governmental Approval shall be
the sole responsibility of the Purchaser(s) who shall also be responsible for
all costs and expenses incurred in connection therewith. The other Shareholders
and Holdco II shall use reasonable efforts to cooperate with the Purchaser(s) in
any application for Governmental Approval.
ARTICLE 9 - RELATIONSHIP OF SHAREHOLDERS
9.1 PLACE AND QUORUM FOR MEETINGS OF SHAREHOLDERS. Meetings of Shareholders
shall be held at the head office of Holdco II or at any other place agreed to by
all of the managing directors of Holdco II. A quorum for all meetings of
Shareholders shall be Shareholders present
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and representing by proxy or in person not less than a majority of the Capital
entitled to vote at such meeting. However, should quorum not be reached, a
second meeting may be convened pursuant to the GmbHG and such second meeting
shall not require a quorum if the Shareholders are informed about this
consequence when convening such meeting (Section 38 of the GmbHG).
9.2 RESOLUTIONS. Resolutions of the Shareholders shall be passed either in
meetings of Shareholders or by means of verbal, written or electronic
communication, provided that the resolutions shall be recorded in writing as
soon as reasonably practicable upon the date of passing of such resolutions.
9.3 MAJORITY OF VOTES. Except as may be otherwise provided in this Agreement,
all decisions of the Shareholders shall be decided by a majority of votes cast
or by such greater percentage as may be required by law.
9.4 MINORITY SHAREHOLDERS. For the purposes of conferring to JJHovis and
Xxxxxxxxxx such minority rights as provided for in the GmbHG and as finally
listed in Schedule "B" hereto ("Minority Rights"), JJHovis and Xxxxxxxxxx shall,
until the conclusion of the Earn In Period, be deemed to own such percentage of
Capital as would be required to exercise any of the Minority Rights, despite any
scenario in which the earn in of Capital pursuant to Schedule "A" to the
Investment and Restructuring Agreement has not yet been effected. For greater
certainty, the conferring of the Minority Rights shall not be deemed to confer
any additional voting rights or rights to dividends other than resulting from
the actual Capital owned by JJHovis and/or Xxxxxxxxxx.
9.5 DISCLAIMER. Nothing contained in this Agreement shall or shall be deemed to
constitute the parties hereto as agent of the other nor any other relationship
whereby any party hereto could be held liable for any act or omission of the
other, save as specifically provided by this Agreement. None of the parties
hereto shall have any authority to act for the other or to incur any obligation
on behalf of the other with respect to the subject matter of this Agreement,
save as specifically provided by this Agreement. Each party hereto covenants to
indemnify the other parties and hold them harmless from all claims, losses,
costs, charges, fees, expenses, damages, obligations and responsibilities
incurred by such parties by reason of any action or omission of the other party
outside the scope of the authority specifically provided by this Agreement.
9.6 ENCUMBRANCES. No party hereto shall sell, transfer, assign, pledge,
hypothecate, mortgage, or in any other manner encumber its Capital, except as
specifically provided in this Agreement, without the written consent of the
other parties. Notwithstanding the foregoing, any party hereto may pledge or
hypothecate its Capital to a bank, trust company or similar entity as security
for loans, provided that where a fixed charge or security interest is given, the
lender shall acknowledge and agree in writing with the other parties hereto to
be bound by the provisions of this Agreement in the event of realization of its
security.
9.7 COMPETITIVE BUSINESSES. Unless otherwise specifically provided for in this
Agreement, any Shareholder of Holdco II may independently engage in, be
concerned with or interested in, lend money to, or guarantee the debts or
obligations of any business endeavour, whether or not
H-18
competitive with the business of Holdco II and Xxxxx, without consulting the
other parties hereto and without in any way being accountable to the other
parties.
Each of JJHovis and Xxxxxxxxxx hereby severally covenants and agrees with the
other parties hereto that: (i) during the Earn In Period; (ii) so long as he is
a managing director of Holdco II and/or Xxxxx or for two years thereafter; or
(iii) so long as he is a Shareholder of Holdco II or a shareholder of Xxxxx, he
shall not, for whatever reason and with or without cause, either individually or
in partnership or jointly or in conjunction with any person or persons, as
principal, agent, employee, shareholder, owner, investor, partner or in any
other manner whatsoever, directly or indirectly, carry on or be engaged in or be
concerned with or interested in or advise, lend money to, guarantee the debts or
obligations of or permit his name or any part thereof to be used or employed by
any person or persons engaged in or concerned with or interested in any business
or operations competitive with Holdco II or Xxxxx within Germany or any
jurisdiction in which Xxxxx or any subsidiary of Xxxxx carries on business.
9.8 BODY CORPORATE AND REGISTERED SEAT. The parties hereto agree that for the
duration of this Agreement, Holdco II and Xxxxx shall remain bodies corporate
and, unless there is a good business reason, the registered seats of Holdco II
and Xxxxx shall not be changed.
9.9 GOOD FAITH. Each party hereto shall act honestly and in good faith and in
the best interest of Holdco II and shall exercise the degree of care, diligence
and skill that a reasonably prudent person would exercise in comparable
circumstances.
ARTICLE 10 - CONFIDENTIALITY
10.1 CONFIDENTIALITY. The Information shall be kept confidential and shall not,
without the prior consent of the other parties, be disclosed by a party hereto
or its representatives in any manner or in part and shall not be used by a party
hereto or its representatives, directly or indirectly, for any purpose other
than the business of Holdco II, provided that nothing in this Agreement shall
restrict or prohibit any of the parties from making such releases or other form
of disclosure as: (i) may be required pursuant to any laws, regulations or
policies (including those of any stock exchange or quotation system) applicable
to it; or (ii) may be made by a party pursuant to customary written
confidentiality agreements entered into by parties to consider business
opportunities.
The parties hereto each agree to furnish the Information only to the respective
representatives of a party hereto, including but not limited to its legal
counsel, accountants and auditors, who need to know the Information for the
purposes of understanding the business of Holdco II and who are informed of the
confidential nature of the Information and agree to be bound by the terms
hereof. The parties hereto each agree to be responsible for any breach of this
Agreement by any of their respective representatives provided that such breach
occurs while such representative is employed by or is under contract to such
party. Each of the parties hereto shall make all reasonable necessary and
appropriate efforts to safeguard the Information and the existence of
discussions from disclosure to anyone other than as permitted hereby. The
foregoing shall be inoperative as to such portions of the Information which: (i)
are or become generally available
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to the public other than as a result of disclosure by the parties hereto or
their respective representatives; (ii) are or become available to any of the
parties hereto on a non-confidential basis from a source other than the other
parties hereto or their representatives; or (iii) are or become known to any of
the parties hereto on a non-confidential basis prior to its disclosure by the
other parties hereto or their representatives.
ARTICLE 11 - GENERAL PROVISIONS
11.1 NOTICES. Unless a particular provision of this Agreement requires delivery
in a specified manner, all notices, demands, approvals, consents or requests and
other communications which may or are required or permitted to be given under
this Agreement shall be given or made in writing and shall be delivered
personally, transmitted by facsimile or sent by registered mail, charges
prepaid, to each of the parties hereto as follows:
GLAMIOX BETEILIGUNGSVERWALTUNGS GMBH
c/o Deloitte & Touch GmbH
Xxxxxxxxxxxxxxxx 00
X-0000 Xxxxxx, Xxxxxxx
Fax No.: 0000-0-00000-0000
Attention: X. Xxxxxx
GARDA INVESTMENTS CORP.
c/o Suite 1000 - 000 Xxxx Xxxxxxx Xxxxxx
Xxxxxxxxx, Xxxxxxx Xxxxxxxx
Xxxxxx X0X 0X0
Fax No.: (000) 000-0000
Attention: H.S. Sangra
and, in the case of each of Holdco II and/or
Holdco I, with a copy to:
SANGRA, MOLLER
Suite 1000 - 000 Xxxx Xxxxxxx Xxxxxx
Xxxxxxxxx, Xxxxxxx Xxxxxxxx
Xxxxxx X0X 0X0
Fax No.: (000) 000-0000
Attention: H.S. Sangra
XXXXXXXX X. XXXXX
Xxxxxxxxxxxxx Xxxxxx 00
0000 Xxxxxx, Xxxxxxx
Fax No.: 00 0 00000000
XXXXXXXXX XXXXXXXXXX
Xxxxxxx 0
X-00
0000 Xxxxxxxx, Xxxxxxx
Fax No.: 00 0000 00000
Any such notice or other communication shall be deemed to have been given and
received on the day on which it was delivered or transmitted so long as the
delivery or transmission occurs during normal business hours, or, if mailed, on
the seventh postal delivery day next following mailing. During any period of
disruption of postal service, notices shall be delivered personally or
transmitted by facsimile.
Any party hereto may change its address for delivery for the purposes of this
Section 11.1 to any other address by giving notice to the other parties hereto
in accordance with this Section 11.1.
11.2 ADDITIONAL DOCUMENTS. The parties hereto shall sign such further and other
documents, cause such meetings to be held, resolutions passed and by-laws
enacted, exercise their vote and influence, do and perform and cause to be done
and performed such further and other acts and things as may be necessary or
desirable in order to give full effect to this Agreement and every part thereof.
11.3 ENTIRE AGREEMENT. This Agreement represents the entire agreement between
the parties hereto pertaining to the subject matter of this Agreement and
supersedes all prior agreements, understandings, negotiations and discussions
whether oral or written of the parties thereto and there are no warranties,
representations or other agreements between the parties hereto in connection
with the subject matter of this Agreement except as specifically set forth in
this Agreement.
11.4 ENUREMENT. This Agreement shall enure to the benefit of and be binding upon
and enforceable by the parties hereto and, where the context so permits, their
respective heirs, executors, administrators, successors, legal representatives
and permitted assigns.
11.5 NO THIRD PARTY BENEFICIARIES. This Agreement shall not confer any rights or
remedies upon any person other than the parties hereto and their respective
successors and permitted assigns.
11.6 ECONOMIC LOSS. Except for willful misconduct, the parties shall not be
liable towards each other for any indirect or consequential damage or loss such
as, but not limited to, loss of profit, loss of production or loss of
opportunity.
11.7 AGREEMENT TO GOVERN. In case of any conflict or uncertainty between this
Agreement and the by-laws of Holdco II, the Investment and Restructuring
Agreement or any other agreements between the parties with respect to Holdco II,
the parties agree that this Agreement shall take precedence over and govern all
such agreements and by-laws.
11.8 GOVERNING LAW AND ARBITRATION. (a) This Agreement shall be governed by and
construed in accordance with the federal laws of Germany as in force and effect
as of the effective date of this Agreement excluding, however, German rules of
conflicts of law.
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(b) The parties irrevocably agree that any disputes which may arise
out of or in connection with this Agreement, the articles of
association (Gesellschaftsvertrag) of Holdco II, Xxxxx and/the
Xxxxx Group, the Rules of Procedure, meetings of the Board or
meetings of the Shareholders, or any transaction contemplated
hereby, shall be settled by arbitration in Vienna, Austria, in
accordance with the rules set forth in this Section 11.8.
(c) The arbitral tribunal shall consist of two arbitrators and the
presiding arbitrator, each of whom shall be fluent in English and
may be of Austrian, German, Canadian or U.S. nationality. The
party intending to institute arbitration proceedings shall inform
the other parties in writing of its intention and, at the same
time, designate one arbitrator. The other parties involved shall,
within 30 days after receipt of this notice, collectively
designate a second arbitrator by mutual agreement. If, within such
time period, the other parties have not designated a second
arbitrator, then at the request of the party intending to
institute arbitration proceedings, the second arbitrator shall be
appointed by the International Chamber of Commerce, acting as
appointing authority. The two arbitrators thus appointed shall
choose the presiding arbitrator. If, within 30 days after the
appointment of the second of the two arbitrators, the two
arbitrators have not agreed upon the choice of the presiding
arbitrator, then at the request of any of the parties to the
arbitration proceedings, the presiding arbitrator shall be
appointed by the International Chamber of Commerce.
(d) All submissions and awards in relation to arbitration under this
Agreement shall be made in English and all arbitration proceedings
and all pleadings shall be in English. Original documents in
English or German may be submitted as evidence in their original
language; witnesses not fluent in English may give evidence in
their native tongue (with appropriate translation). Original
documents in a language other than English or German shall be
submitted as evidence in English translation accompanied by the
original or a true copy thereof.
(e) The parties to this Agreement hereby adopt the rules of the
International Chamber of Commerce as the procedural rules
governing arbitrations hereunder, insofar as such rules are not
inconsistent with any provision of this Section 11.8, which shall
be controlling. The arbitration panel may, at the request of a
party, order provisional or conservatory measures and shall have
the authority to award specific performance, provided, however,
that until the complete establishment of the arbitration panel,
the ordinary courts shall remain competent for provisional or
conservatory measures. Any award shall be final and not subject to
appeal and the parties hereby waive all challenge to any award of
an arbitral panel under this Section 11.8.
(f) Any award shall be made in the currency in which the obligation
would have been paid, if the obligation with respect to which the
award is made was an obligation to pay money or in Euros in all
other cases.
(g) To the extent legally required, the parties undertake to set up an
arbitration agreement substantially as set forth in this Section
11.8 in a separate agreement.
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11.9 LANGUAGE. The governing language of this Agreement, all meetings of the
Board and meetings of Shareholders shall be English. If for official reasons
certain agreements of Holdco II or its by-laws have to be executed in German or
any other language, such agreements and by-laws shall be translated into English
and the parties agree that internally such English versions shall prevail and
govern for all purposes.
11.10 PARTIAL INVALIDITY. Should any provision or part of a provision of this
Agreement be or become invalid or unenforceable, or should this Agreement
contain an unintended contractual gap, then the validity or enforceability of
the remainder of this Agreement shall not be affected. Any such invalid or
unenforceable provision shall be deemed to be replaced by, or any gap deemed to
be filled with, an appropriate provision, which, in accordance with the economic
purpose and object of the provision and/or Agreement and as far as legally
permissible, shall come closest to the parties' original intention, or that
intention which the parties would have had, had they considered the issue.
11.11 AMENDMENT AND WAIVER. No amendment or waiver of any provision of this
Agreement shall be binding on any party hereto unless consented to in writing by
such party. No waiver of any provision of this Agreement shall constitute a
waiver of any other provision, nor shall any waiver constitute a continuing
waiver unless otherwise expressly provided.
11.12 ARTICLES, SECTIONS, HEADINGS AND SCHEDULES. The division of this Agreement
into Articles and Sections and the insertion of headings and Schedules, are for
convenience of reference only and shall not affect the interpretation of this
Agreement. Unless otherwise indicated, any reference in this Agreement to an
Article, Section or Schedule refers to the specified Article or Section of or
Schedule to this Agreement.
11.13 NUMBER AND GENDER. In this Agreement, words importing the singular number
shall include the plural and vice versa, and words importing the use of any
gender shall include the masculine, feminine and neuter genders.
11.14 CALCULATION OF TIME. When calculating the period of time within which or
following which any act is to be done or step taken pursuant to this Agreement,
the date which is the reference date in calculating such period shall be
excluded. If the last day of such period is not a Business Day, then the time
period in question shall end on the first Business Day following such
non-business day.
11.15 LEGISLATION REFERENCES. Any references in this Agreement to any law,
by-law, rule, regulation, order or act of any government, governmental body or
other regulatory body shall be construed as a reference thereto as amended or
re-enacted from time to time or as a reference to any successor thereto.
11.16 EXPENSES. Except as otherwise provided for herein, each of the parties
hereto shall bear its own expenses in relation to this Agreement.
H-23
11.17 COUNTERPARTS. This Agreement may be executed in several counterparts, each
of which so executed shall be deemed to be an original and such counterparts
together shall be but one and the same instrument.
11.18 TRANSMISSION BY FACSIMILE. The parties hereto agree that this Agreement
may be transmitted by facsimile or such similar device and that the reproduction
of signatures by facsimile or such similar device will be treated as binding as
if originals and each party hereto undertakes to provide each and every other
party hereto with a copy of the Agreement bearing original signatures forthwith
upon demand.
IN WITNESS WHEREOF this Agreement has been executed effective the day and year
first above written.
GLAMIOX BETEILIGUNGSVERWALTUNGS GMBH
By:_________________________________
Name:_______________________________
Title:______________________________
GARDA INVESTMENTS CORP.
By:_________________________________
Name:_______________________________
Title:______________________________
SIGNED, SEALED and DELIVERED by )
XXXXXXXX X. XXXXX in the presence of: )
)
)
___________________________________________ ) _________________________
Signature ) XXXXXXXX X. XXXXX
___________________________________________ )
Name )
___________________________________________ )
Address )
___________________________________________ )
)
___________________________________________ )
Occupation )
H-24
SIGNED, SEALED and DELIVERED by )
XXXXXXXXX XXXXXXXXXX in the )
presence of: )
) ______________________________
) XXXXXXXXX XXXXXXXXXX
)
Signature )
___________________________________________ )
Name )
___________________________________________ )
Address )
___________________________________________ )
)
___________________________________________ )
Occupation )
SCHEDULE "A"
RULES OF PROCEDURE FOR
THE MANAGEMENT OF GLAMIOX BETEILIGUNGSVERWALTUNGS GMBH (THE "COMPANY")
The shareholders have adopted the following rules of procedure for the
management board of the Company according to Article ? paragraph (?) of the
articles of association of the Company.
ARTICLE 1
PRINCIPLES OF MANAGEMENT
(1) The managing directors of the Company shall conduct the business of the
Company with the care of a correct and diligent businessman according
to statutory law, the articles of association of the Company and these
rules of procedure.
(2) The managing directors of the Company shall act on the basis of
resolutions passed by them on the relevant matter. Other than from time
to time as agreed upon by the shareholders of the Company with respect
to the day-to-day business of the Company, decisions of the management
board of the Company shall require the unanimous consent of the
managing directors of the Company. In the event the managing directors
are not able to reach such unanimous consent, where required, each
managing director is entitled to refer a matter to the decision of the
shareholders of the Company owning a majority of the outstanding share
capital of the Company, which decision shall be binding on the managing
directors. The non compliance of a managing director such decision is
considered an important reason for removal as managing director.
Regardless of such internal rules, the powers to represent and to
legally bind the Company are set forth in Article 3 of the Owners'
Agreement made effective October 1, 2001 among the Company, Xxxxxxxx X.
Xxxxx, Xxxxxxxxx Xxxxxxxxxx and Garda Investments Corp. (the "Owners'
Agreement").
(3) The managing directors of the Company shall report to the shareholders
on an ongoing basis in particular by submitting to the shareholders
monthly reports of Xxxxx GmbH.
(4) In preparing the Company's annual financial statements, the managing
directors of the Company shall apply GAAP (as such term is defined in
the Owners' Agreement). However, in the event that GAAP (as such term
is defined in the Owners' Agreement) and past practice conflict, then
GAAP (as such term is defined in the Owners' Agreement) shall prevail.
ARTICLE 2
RESPONSIBILITY OF MANAGING DIRECTORS
(1) The managing directors of the Company carry joint responsibility for
the management of the Company. They shall cooperate in managing the
Company and inform each other on an ongoing basis about any important
issues that appear in connection with their activities as managing
directors of the Company. For greater certainty, during the Earn In
Period
A-2
(as such term is defined in the Owners' Agreement), the managing
directors shall inform Xxxxxxxx X. Xxxxx and Xxxxxxxxx Xxxxxxxxxx prior
to any substantial acquisition and disposition of assets.
(2) Without prejudice to their joint responsibility according to the
preceding paragraph, the managing directors of the Company may agree to
divide certain tasks among themselves which they will each carry out on
the basis of guidelines to be agreed upon in connection with the
division of these tasks among themselves. Each managing director shall
report on the accomplishment of any such tasks allocated to it to the
other managing directors of the management board on an ongoing basis.
For greater certainty, for any period which they are managing directors
of the Company, JJHovis shall be responsible for the trade department
and Xxxxxxxxxx shall be responsible for the finance department.
Regardless of this allocation of tasks, further managing directors may
be responsible for the same departments as well.
ARTICLE 3
RESOLUTIONS, MEETINGS
(1) Resolutions of the managing directors of the Company shall be passed in
meetings which can be called by any managing directors of the Company,
or, if it is not possible to find a date and time at which all managing
directors will be available in due time, by telephone or video
conference.
(2) Shareholders owning more than 10% of the capital of the Company and,
during the Earn In Period (as such term is defined in the Owners'
Agreement), Xxxxxxxx X. Xxxxx and Xxxxxxxxx Xxxxxxxxxx (such
Shareholders, Xxxxxxxx X. Xxxxx and Xxxxxxxxx Xxxxxxxxxx being
collectively referred to as "Permitted Persons"), shall have the right
to attend meetings of the managing directors of the management board of
the Company. The managing directors of the management board shall see
to it that the Permitted Persons are informed about the date, time and
location of or the manner of communication at such meetings.
(3) All managing directors of the Company must participate in the passing
of the resolutions, unless: (i) an absent managing director expressly
consents to the other managing directors passing a resolution without
him; (ii) the absent managing director grants proxy to another managing
director; or (iii) the absent managing director instructs another
managing director on how to vote for him.
(4) The managing directors of the Company shall prepare written minutes of
their resolutions. The written minutes may be executed by facsimile.
(5) Resolutions of the management board of the Company are in general
passed by a simple majority of the votes cast unless otherwise provided
for by these rules of procedure or the Owners' Agreement.
A-3
ARTICLE 4
SHAREHOLDERS' APPROVAL
(1) The prior approval of the shareholders of the Company (acting by means
of a shareholders' resolution) by a simple majority of the votes
present is required for the following matters:
(a) Management of the Company, if and to the extent the following
matters are concerned:
(i) disposition of, including encumbrances of or
conclusion of agreements affording rights to third
parties with regard to a material part of the assets
of the Company or Xxxxx or any subsidiary of the
Company;
(ii) establishment, acquisition and sale of enterprises,
acquisition, change, transfer or termination of
participation in enterprises, setting up, sale,
discontinuance or closure of branches,
establishments, parts of establishments or plants by
the Company, Xxxxx GmbH or any subsidiary of the
Company;
(iii) other than in the ordinary course of business, grant
of security interests, in particular the assumption
of "Burgschaften" and guarantees, in respect of, and
the assumption of, third party liabilities;
(iv) grant of loans and taking out of loans (with the
exception of customary customer loans);
(v) conclusion and termination of intercompany agreements
(Unternehemensvertrage), in particular loss and
profit transfer agreements;
(vi) approval of the business plan of the Company, Xxxxx
or any subsidiary of the Company for each following
business year;
(vii) assumption of obligations arising out of bills of
exchange;
(viii) acquisition, sale, encumbrance and disposal of real
property, rights to a real property or rights to a
real property right, and assumption of obligations to
make such dispels by the Company in excess of Euro
100,000;
(ix) conclusion, amendment and termination of contracts
for the performance of continuing obligations, i.e.
contracts with a term longer than twelve months (e.g.
lease, leasing, service and license agreements)
involving in each individual case expenses in excess
of an amount of Euro 100,000;
A-4
(x) assertion of claims, recognition of claims, waiver of
claims, exercise of election rights and declarations
of approval for tax purposes, insofar as an amount of
more than Euro 100,000 in any particular case is
involved;
(ii) grant and revocation of registered powers of attorney
(Prokura), commercial powers of attorney
(Handlungsvollmacht) and other powers of attorney
(including powers of attorney related to bank
accounts);
(iii) grant, modification and termination of pension
commitments and employee profit participations;
(iv) investments outside the approved business plan that
exceed an amount of Euro 50,000 in each case;
(v) other than in the ordinary course of business,
forward exchange transactions, including currency
futures trading for hedging purposes and any other
kind of similar speculative transactions; or
(vi) conclusion of agreements with related entities
(nahestehende Personen) within the meaning of Section
1 of the German Foreign Tax Act
(Au(beta)ensteuergesetz - AstG), except for
agreements with related entities that are direct or
indirect subsidiaries of the Company.
(b) Exercise of voting rights as shareholder of Xxxxx GmbH or any
subsidiary of Xxxxx GmbH, if and to the extent the following
matters are concerned:
(i) disposition of, including encumbrances of, or
conclusion of agreements affording rights to third
parties with regard to, a substantial part of the
assets of Xxxxx or any subsidiary of the Company;
(ii) disposition of, including encumbrances of, or
conclusion of agreements affording rights to third
parties with regard to, all of or part of the
interest of Xxxxx or any subsidiary of the Company;
(iii) appointment of any officers, managing directors,
supervisory board members or auditors; or
(iv) disposition of, including encumbrances of, or
conclusion of agreements affording rights to third
parties with regard to, the Company's interest in
Xxxxx GmbH or any subsidiary of the Company or Xxxxx
GmbH.
(2) The prior approval of the shareholders of the Company (acting by means
of a shareholders' resolution) by all of the votes present is required
for the repayment of the Grandfather Contribution (as such term is
defined in the Investment and Restructuring Agreement dated for
reference October 1, 2001 among Xxxxxx Park International Limited,
Garda Investments Corp., MFC Bancorp Ltd., the Company, Xxxxx GmbH,
Xxxxxxxx X. Xxxxx, Xxxxxxxx Xxxxx and Xxxxxxxxx Xxxxxxxxxx) during the
Earn In Period (as such term is defined in the Owners' Agreement).
A-5
ARTICLE 5
URGENT MATTERS
(1) In case of urgent matters that do not allow to wait for a necessary
resolution of the members of the management board of the Company to be
passed, each member of the management board may, after having consulted
with as many other members of the management board as possible take,
with respect to the powers conferred to him or them, the actions
necessary to prevent damages to the Company and least likely to make
such action irrevocable.
(2) Such member(s) of the management board shall inform the other members
of the management board of the situation and the action taken
immediately.
(3) The members of the management board shall pass a resolution on how to
proceed with the issue in question as soon as possible thereafter.
ARTICLE 6
EFFECTIVENESS
These rules of procedure have become effective at the time of their adoption by
the shareholders.
SCHEDULE "B"
MINORITY RIGHTS
Section 37(1) of the GmbHG
Section 37(3) of the GmbHG
Sections 45-48 of the GmbHG
SCHEDULE "C"
LETTER TO GARDA INVESTMENTS CORP.
FROM XXXXXXXX X. XXXXX AND XXXXXXXXX XXXXXXXXXX
We each hereby acknowledge and agree that the 100% shareholder of Garda
Investments Corp. has contributed or will contribute Euro 7,965,000 to the free
capital reserves (ungebundene Kapitalruecklagen) of Glamiox
Beteiligungsverwaltungs GmbH on or before the Closing Date (as such term is
defined in the Investment and Restructuring Agreement), which has been or will
be allocated to the capital reserve account of Glamiox Beteiligungsverwaltungs
GmbH. In addition, we each hereby acknowledge and agree that the articles of
association (Gesellschaftsvertrag) of Glamiox Beteiligungsverwaltungs GmbH
contain a provision whereby the shareholders of Glamiox Beteiligungsverwaltungs
GmbH may make distributions other than pro rata to the respective percentage of
the nominal share capital of Glamiox Beteiligungsverwaltungs GmbH. We each
hereby irrevocably confirm that we will vote in favour of and entirely for the
benefit of Garda Investments Corp. in respect of any resolution concerning the
distribution of free capital reserves (ungebundene Kapitalruecklagen) amounting
to Euro 7,965,000, in excess of retained earnings to Garda Investments Corp.,
provided such resolution is not made prior to the earlier of: (i) the
termination of the Target Period (as such term is defined in Schedule "A" (the
"Schedule") to the Investment and Restructuring Agreement); or (ii) any earn in
of capital of Glamiox Beteiligungsverwaltungs GmbH being effected pursuant to
Sections 2.2 and 2.3 of the Schedule prior to the termination of the Target
Period (as such term is defined in the Schedule).
Power of Attorney attached in notarized form.
SCHEDULE I
FORM OF OPINION(S) OF COUNSEL TO THE XXXXX GROUP
1. Xxxxx has been duly organized and is validly existing under the laws of
Austria and is duly qualified as a corporation to do business under the
laws of each jurisdiction in which the nature of its business or the
property owned or leased by it makes such qualification necessary;
2. Each of the Finance Companies, Xxxxx Poland Sp.z o.o., Alumetal Sp. z.o.o.,
S.C. Xxxxx X.X., Metalko Kft. and Kolmet Sp.z o.o. (collectively, the
"Opinion Subsidiaries") has been duly incorporated, amalgamated, continued
or organized and is duly qualified as a corporation to do business under
the laws of each jurisdiction in which the nature of its business or the
property owned or leased by it makes such qualification necessary;
3. Xxxxx and each Opinion Subsidiary has all necessary corporate power and
authority to own, lease and operate its respective properties and assets
and to conduct its respective businesses at and in the places where such
properties and assets are now owned, leased or operated or such businesses
are now conducted;
4. Xxxxx is shown on the share register, or any comparable register which
evidences the ownership of shares or the holding of sharecapital, of each
Opinion Subsidiary as the registered holder of the issued and outstanding
capital stock or sharecapital of each Xxxxx Subsidiary as set out in
Schedule "F" to the Agreement and such issued and outstanding capital stock
and sharecapital of each Opinion Subsidiary is validly issued and
outstanding as fully paid and non-assessable;
5. As at the Closing Date, the fully-issued and authorized Xxxxx Capital
consists of Euro 1,750,000 which is fully issued and is paid in in the sum
of Euro 1,529,055.50 plus Euro 160,000 paid by JJHovis and Euro 20,000 paid
by Xxxxxxxxxx plus such amount by which the Xxxxx Capital has been
increased in the course of the Xxxxx Reorganization ("Increased Capital");
due application for registration of the Increased Capital has been filed
with the Firmenbuch;
6. All necessary corporate action has been taken by Xxxxx to issue the
additional Xxxxx Capital contemplated by the Agreement and such additional
Xxxxx Capital has been validly issued and is outstanding as fully paid;
7. All necessary corporate action has been taken by Xxxxx to approve the
transfer of the Xxxxx Capital as consideration for: (i) the shares
subscribed for by the Xxxxx Closing Stockholders in Holdco II; or (ii) the
capital of Holdco II transferred from Holdco I, as the case may be;
8. The Agreement has been duly authorized by all necessary corporate action on
the part of Xxxxx, has been duly executed and delivered by and on behalf of
Xxxxx and constitutes a legal, valid and binding obligation of Xxxxx
enforceable in accordance with its terms, except as enforcement thereof may
be limited by bankruptcy, insolvency and other similar laws affecting the
enforcement of creditors' right generally, except that specific performance
and injunction are equitable remedies which may only be granted in the
discretion of a court of competent jurisdiction and except as rights to
indemnity, contribution and waiver of contribution may be limited under
Applicable Law;
I-2
9. The execution and delivery of the Agreement, the fulfillment of the terms
thereof and the sale of the Xxxxx Capital by the Closing Xxxxx Stockholders
to Holdco II does not and will not conflict with and does not and will not
result in a breach of, and does not and will not create a state of facts
which after notice or lapse of time or both will result in a breach of, any
of the terms, conditions or provisions of the Constating Documents of Xxxxx
or any Xxxxx Subsidiary, respectively, or any resolution passed or
consented to by the directors or shareholders of Xxxxx or any Opinion
Subsidiary, or any license, permit, agreement or instrument issued to Xxxxx
or any Opinion Subsidiary, respectively, or to which Xxxxx or any Xxxxx
Subsidiary is a party and of which such counsel has knowledge;
10. There is not, to the knowledge of such counsel after having made due
enquiry, any action, suit or proceeding pending or threatened before any
court, governmental agency or body, to which Xxxxx or any Xxxxx Subsidiary
is a party or of which any of their respective property is subject, which
might result in any Material Adverse Change, except as approved by Xxxxxx
Park in writing and listed in an exhibit to this Opinion; and
11. As to such other matters as counsel to Xxxxxx Park may reasonably request.
SCHEDULE J
INTENTIONALLY BLANK
SCHEDULE K
LIST OF TRADE MARKS OF XXXXX AND XXXXX GROUP
TRADE XXXX CLASS XXX.XX. OWNER LICENCEES
---------- ----- ------- ----- ---------
CLINETT word-pictural 16 NOM No. 173.356 HPP Neumuller KG
trademark
CLINETT word trademark 16 NOM No. 173.357 HPP Neumuller KG
FINO word-pictural 16 RegNo. AM 2628/99 HPP
trademark
GREIF ZU word-pictural 16 NOM No. 96.405 Xxxxx GmbH Neumuller KG
trademark
PLUS word-pictural 16 RegNo. AM 1371/99 HPP
trademark
PREMIUM word-pictural 16 RegNo. AM 1372/99 HPP Neumuller KG
trademark
SANETT word trademark 16 NOM No. 182.830 HPP
SCALA word-pictural 16 RegNo. AM 2627/99 HPP
trademark
Take it GREIF ZU word-pictural 16 NOM No. 182.831 HPP Neumuller KG
trademark
Take it GREIF word-pictural 16 NOM No. 184.869 Xxxxx GmbH Neumuller KG
ZU Selection trademark
UMWELT NATUR word-pictural 16 RegNo. AM 2629/99 HPP
trademark
SCHEDULE L
LIST OF ACCOUNTS RECEIVABLE AND PAYABLE OF XXXXX
AND THE FINANCE COMPANIES (OTHER THAN XXXXX IMPEX)
SUMMARY ACCOUNTS PAYABLE AS OF
30.09.2001 XXXXX GMBH.
ATS
33000 Verb.LL Inld. ATS -4,462,344
33001 Verb.LL Inld. DEM -4,951
33002 Verb.LL Inld. USD -1,602,988
33005 Verb.LL Inld. CHF 0
33099 Verb.LL Inld. EUR -29,635,321
33100 Verb.LL Inld. Factorbank 1,663
33200 Verb.LL EU ATS 149,991
33201 Verb.LL EU DEM -13,424,070
33202 Verb.LL EU USD -12,610,886
33203 Verb.LL EU ITL -47,216,448
33204 Verb.LL EU BEF 0
33210 Verb.LL EU GBP -59,048
33212 Verb.LL EU NLG 0
33299 Verb.LL EU EUR -15,704,801
33300 Verb.LL Drittld. ATS -959,747
33301 Verb.LL Drittld. DEM -15,870,525
33302 Verb.LL Drittld. USD -44,773,589
33305 Verb.LL Drittld. CHF -725,452
33306 Verb.LL Drittld. CZK -47,883
33311 Verb.LL Drittld. HUF -1,446
33315 Verb.LL Drittld. PLN -17,000
33399 Verb.LL Drittld. EUR -7,728,043
33401 Verb.LL Kompen. DEM -10,307,679
33402 Verb.LL Kompen. USD -3,007
33415 Verb.LL Kompen. PLN -27,195
33499 Verb.LL Kompen. EUR -8,374,422
33500 Verb.LL Ausland 0
33510 Verb.LL Ausland 0
34000 Verb.LL nahest.Untern. ATS 0
34002 Verb.LL nahest.Untern. USD 0
34015 Verb.LL nahest.Untern. PLN -6,279,578
34099 Verb.LL nahest.Untern. EUR 0
34401 Verb.geg.Untern.m.Beteil. DEM -1,896,723
34402 Verb.geg.Untern.m.Beteil. USD -3,124,996
34415 Xxxx.xxx.Xxxxxx.x.Xxxxxx. XXX 0
00000 Xxxx.xxx.Xxxxxx.x.Xxxxxx. EUR 0
---------------
-224,706,488 ATS
===============
-16,330,057 EUR
===============
L-2
SUMMARY ACCOUNTS RECEIVABLE AS OF
30.09.2001 XXXXX GMBH. (DETAILS WILL
FOLLOW BY COURIER)
ATS
20000 Ford. LL Inld. ATS 2,129,597
20001 Ford. LL Inld. DEM 1,241,488
20002 Ford. LL Inld. USD 2,695,397
20003 Ford. LL Inld. ITL 0
20099 Ford. LL Inld. EUR 5,407,161
20203 Xxx.Xxxx. (ATS) 24,127,382
21000 Ford. LL EU ATS 105,000
21001 Ford. LL EU DEM 6,190,796
21002 Ford. LL EU USD 44,268,849
21003 Ford. LL EU ITL 68,299,832
21005 Ford. LL EU CHF 2,574,470
21009 Ford. LL EU FRF 23
21010 Ford. LL EU GBP 0
21099 Ford. LL EU EURO 93,561
21100 Ford. LL Drittld. ATS 548,499
21101 Ford. LL Drittld. DEM 6,621,885
21102 Ford. LL Drittld. USD 35,002,794
21105 Ford. LL Drittld. CHF -172,216
21109 Ford. LL Drittld. FRF 1,503,233
21199 Ford. LL Drittld. EURO 7,717,774
21301 Ford. LL Komp. DEM 84,632,063
21302 Ford. LL Komp. USD 13,592,603
21399 Ford. LL Komp. EURO 7,388,017
21600 Ford. LL Mediafac.ATS 0
21601 Ford. LL Mediafac.DEM 0
21602 Ford. LL Mediafac.USD 870,978
21603 Ford. LL Mediafac. ITL 1
21609 Ford. LL Mediafac. FRF 0
21699 Ford. LL Mediafac. EURO 15,082,917
21750 Ford. LL Factorbank -331,795
22000 Ford. LL nahest.Untern.ATS 0
22001 Ford. LL nahest.Untern. DEM 3,480,884
22002 Ford. LL nahest.Untern. USD 269,190
22003 Ford. LL nahest.Untern. ITL 2,289,948
22009 Ford. LL nahest.Untern. FRF 0
22099 Ford. LL nahest.Untern. EURO 4,294,725
22100 Ford. LL nahest.Untern.ATS 0
22500 Ford. LL xxx.Xxxxxx.x.Xxx. ATS 27,290
22501 Ford. LL xxx.Xxxxxx.x.Xxx. DEM 10,018,236
22502 Ford. LL xxx.Xxxxxx.x.Xxx. USD 9,594,204
22515 Ford. LL xxx.Xxxxxx.x.Xxx. PLN 334,825
22519 Ford. XX xxx.Xxxxxx.x.Xxx. XXX 0
00000 Xxxx. XX xxx.Xxxxxx.x.Xxx. EURO 16,462,038
----------------
376,361,649 ATS
================
27,351,268 EUR
================
L-3
SUMMARY ACCOUNTS RECEIVABLE AS OF
30.9.2001
ATS EUR
IC Managementservice GmbH. 52,941,052 3,847,376
JH Trade & Financial Services GmbH. 32,316,285 2,348,516
Global Bulk Transport GmbH. 50,735,156 3,687,068
SUMMARY ACCOUNTS PAYABLE AS OF
30.9.2001
ATS EUR
IC Managementservice GmbH. -1,070,975 -77,831
JH Trade & Financial Services GmbH. -4,544,818 -330,285
Global Bulk Transport GmbH. -4,135,373 -300,529
SCHEDULE M
RELEVANT LITIGATION, INCLUDING EMPLOYEE RELATED LITIGATION
PARTIES AMOUNT CLAIMED COURT RECORD NO. DATE OF CLAIM STATUS
------- -------------- ----- ---------- ------------- ------
Xxxxx/Xxxxx GmbH 35,790.43 euro OLG Wien XX Xxxx - 26 Cg 04.10.00 Appeal lodged by
135/00a (1st opponent
Instance)
Xxxx Emballagen 4,834.56 euro BG Wien 15 C 150/01 w 21.01.01
GmbH/Xxxxx GmbH
Ristelhueber GmbH Co. 255,648.50 euro XX Xxxx 11 Cg 40/00 w 27.04.00 Proposal of
KG/Xxxxx GmbH settlement ( euro
61,000 to 153,000)
SCHEDULE N
BANK STATUS AS OF SEPTEMBER 25, 2001, INCLUDING CREDIT AND LOAN FACILITIES
AND COLLATERAL PROVIDED BY XXXXX, THE XXXXX GROUP, THE XXXXX STOCKHOLDERS
AND PERSONS RELATED THERETO AND OF OPEN FOREIGN EXCHANGE TRANSACTIONS AND
DERIVATIVE TRANSACTIONS
BALANCE OF BANK-ACCOUNTS AS OF
30.09.2001
Account-No. Currency Credit-Line in EURO Amount in Currency Amount in ATS
----------------------------------------------------------------------------------------------
XXXXX
RAIFFEISENZENTRALBANK 170-50.718.584 USD 2,180,185.02 -847,527.02 -12,772,123.59
--------------------------------------------------------------------
3-00.718.585 EUR -220,894.02 -3,039,568.03
--------------------------------------------------------------------
270-50.718.584 USD 1,453,456.68 -765,658.66 -11,538,377.90
--------------------------------------------------------------------
70-50.718.584 USD 570,921.35 -548,800.62 -8,270,355.02
--------------------------------------------------------------------
73-50.718.584 CHF -3,512.31 -32,741.98
--------------------------------------------------------------------
2-00.718.585 EUR 32,488.21 447,047.91
--------------------------------------------------------------------
4-00.718.585 EUR 0.00 0.01
--------------------------------------------------------------------
370-50.718.584 USD 249,285.78 3,756,704.76
--------------------------------------------------------------------
5-00.718.585 EUR 50,564.78 695,787.33
--------------------------------------------------------------------
6-00.718.585 EUR 502.19 6,910.29
--------------------------------------------------------------------
470-50.718.584 USD 46,144.54 695,392.31
--------------------------------------------------------------------
-------------------------------------------
-14,239,632.29
------------------------------- -------------------------------------------
BANK AUSTRIA 000-000-000/00 EUR 2,180,185.00 -125,140.59 -1,721,972.59
000-000-000/00 USD -1,928,517.64 -29,062,513.72
---------------------------------------------------------------
2,180,185.00 -30,784,486.31
----------------------------------------------------------------------------------------------
(table continued)
Amount in EURO ATS EUR Securities
-------------------------------------------------------------------------------------
-928,186.42 Confirmed export L/Cs and assignement
-220,894.02 of accounts receivable
-838,526.62 assignement of US Steel receivables
-601,030.14 pledged goods/repayable if sold
-2,379.45 xxxxx xxxx of Exchange
32,488.24
0.00
273,010.38
50,564.84
502.19
50,536.13
--------------------------
-1,034,834.44
--------------------------
-125,140.63 unsecured
-2,112,055.24 no contract existing
--------------------------
-2,237,195.87
--------------------------
N-2
CA EISENSTADT 0963-66166 EUR 18,168,208.00 -1,345,788.32 -18,518,450.85
----------------------------------------------------------
0963-66166 CHF -7,735,537.05 -72,111,178.42
----------------------------------------------------------
0963-66166 USD -3,118,618.69 -46,997,184.05
----------------------------------------------------------
0963-66166/02 EUR 0.00 0.00
----------------------------------------------------------
0963-66166/33 EUR 0.00 0.00
----------------------------------------------------------
0963-66166/66 EUR 0.00 0.00
----------------------------------------------------------
0963-66166/04 USD -18,861.11 -284,234.51
----------------------------------------------------------
0963-66166/06 CHF -28,171.03 -262,612.17
----------------------------------------------------------
0963-66166/69 USD -1,160,189.83 -17,483,912.08
----------------------------------------------------------
0963-66166/69 EUR -32,627.20 -448,960.02
----------------------------------------------------------
00000-000-000 EUR 1,604,280.55 22,075,381.65
----------------------------------------------------------
0004-24259/01 EUR -5,668,481.07 -78,000,000.07
--------------------------------------------------------------
18,168,208.00 -212,031,150.52
--------------------------------------------------------------------------------------------
OBERBANK LINZ 711 2285 69 ATS -1,937.66 -1,937.66
------------------------------- ----------------------------------------
O VERKEHRSKREDITBANK ATS -1.65 -1.65
------------------------------- ----------------------------------------
SOCIETE GENERALE 10142 299 900 EUR -714.59 -9,833.03
-------------------------------------- ----------
10142 299 800 USD -129.23 -2,070.08
--------------------------------------
----------------------
-11,903.11
--------------------------------------------------------------
BANK X.XXXXX U VLBG. 130-033342 ATS 385,166.02 -70,619.00 -70,619.00
330-043534 EUR 7,308.06 100,561.15
--------------------------------------
330-604905 USD -307,838.10 -4,639,080.72
-------------------------------------------------------------
385,166.02 -4,609,138.57
--------------------------------------------------------------------------------------------
(table continued)
-1,345,788.31 93.3 6.8 assigned receivable
-5,240,523.71 118.7 8.6 used but not secured
-3,415,418.56 16.0 1.2 pledge of goods (est.pulp value ATS 5 Mio)
0.00 12.0 0.9 IPU Xxxxxxxx Xxxxx private
0.00 20.5 1.5 Guarantee Xxxxxxxx Xxxxx private
0.00 1.0 0.1 Xx.Xxxxx sen.
-20,656.13 Xxxx of Exchange
-19,084.77
-1,270,605.44
-32,627.20
1,604,280.55
-5,668,481.07
--------------------
-15,408,904.64
--------------------
-140.82
--------------------------------------------------
-0.12 Guarantee Xxxxx GmbH
--------------------------------------------------
-714.59
-150.44
--------------------
-865.03
-------------------- --------------------------------------------------
-5,132.08 pledged goods
7,308.06 Xxxx of exchange
-337,135.14 Guarantee Xxxxxxxx Xxxxx private
--------------------
-334,959.16
--------------------
N-3
--------------------------------------------------------------
ALLG.SPARKASSE OO,WIEN 4000-005797 ATS 872,074.00 -215,158.84 -215,158.84
0043-224328 ATS -12,000,000.00 -12,000,000.00
--------------------------------------
4006-900058 ATS 6,000,000.00 6,000,000.00
--------------------------------------
-------------------------------------------------------------
872,074.00 -6,215,158.84
--------------------------------------------------------------------------------------------
---------------------
PSK BANK 9.702.378 ATS -1,468.99 -1,468.99
------------------------------- ----------------------------------------
CASSA DI RISPARMIO 2091-5017657 USD 0.00 -0.01
2091-5017657 DEM 0.00 0.14
--------------------------------------
401230/27 DEM 33,723.12 464,040.35
------------------------------- ----------------------
XXXXX XX XXXXXX 000 00000 EUR 399.42 5,496.26
--------------------------------------
------------------------------- ----------------------------------------
BANQUE RIVAUD 0100 295 91 82 FRF -3,481.85 -7,304.06
--------------------------------------
Spesen EUR 348.87 4,800.55
--------------------------------------
-----------------------------------------
-3,132.98 -2,503.51
------------------------------- -----------------------------------------
XXXXX CANTONALE DE GENEVE T 3247.08.62 USD -286,759.90 -4,321,434.95
--------------------------------------
T 3247.08.63 EUR 72,996.12 1,004,448.31
--------------------------------------
----------------------
-3,316,986.64
------------------------------- ----------------------
BNP XXXXXXX (XXX) 00000/0 F USD 5,813,826.73 143,676.19 2,165,181.77
--------------------------------------
79527/50 J USD
--------------------------------------
(table continued)
-------------------- --------------------------------------------------
-15,636.20 6.0 0.4 Deposit
-872,074.01 xxxxx xxxx of exchange max 12.0 Mio ATS
436,037.01 aval Xxxxxxxx Xxxxx private
--------------------
-451,673.21
--------------------
--------------------------------------------------
-106.76
--------------------------------------------------
-0.00
0.01
33,723.13
-------------------- --------------------------------------------------
399.43
--------------------------------------------------
-530.81
348.87
--------------------
-181.94
--------------------
-314,050.93 on a case by case basis
72,996.11 L/C assigned and paid
--------------------
-241,054.82
--------------------
157,349.90 Structured Trade Finance
0.00
N-4
00000-0 XXX 1,639.92 22,565.69
--------------------------------------
-------------------- ---------------------
5,813,826.73 2,187,747.46
--------------------------------------------------- ---------------------
UBS 247-540269.60 USD 2,972.13 44,657.57
247-540269.61 EUR -34.41 -473.48
--------------------------------------
---------------------
44,184.09
------------------------------- ---------------------
AARGAUISCHE KANTONALBANK 16126.711.54 EUR -26.59 -365.93
16126.712.45 USD -570.80 -8,601.88
--------------------------------------
---------------------
-8,967.81
------------------------------- ---------------------
BANQUE UNEXIM 10.300.808-0 EUR 0.00 just opened
USD 0.00 just opened
------------------------------- ----------------------------------------
MEDIO FACTORING EUR 7,267,283.41 -3,851,660.00 -3,851,660.00
-------------------------------
(table continued)
1,639.91 on a case by case basis
---------------------
158,989.81
---------------------
3,245.39
-34.41
---------------------
3,210.98
---------------------
-26.59
-625.12
---------------------
-651.72
---------------------
--------------------------------
-3,851,660.00 100 % Non-recourse Factoring
as of 25.September 2001
--------------------------------
3
-23,365,905.16
N-5
BALANCE OF BANK-ACCOUNTS PER USD-Exchange Rate
30.09.2001
Account-No. Currency xx.XX Konto Kredit-Line in EUR Amount in Currency
---------------------------------------------------------------------------------------------------------------------------
JH TRADE
ERSTE BANK 320513-42718 USD 32751 3,633,641.70 15,442.14
----------------------------------------------------------------
19053112202 USD 32752 -553,680.00
----------------------------------------------------------------
300010-46068 EUR 32753 -848,870.44
---------------------------------------------------------------------------------------------------------------------------
3,633,641.70
---------------------------------------------------------------------------------------------------------------------------
GLOBAL BULK
BANK AUSTRIA 000-000-000 EUR 32358 3,633,641.70 -3,519,999.70
----------------------------------------------------------------
000-000-000 EUR 32356 -41,837.46
----------------------------------------------------------------
000-000-000 EUR 32355 17,444.10
----------------------------------------------------------------
000-000-000 USD 32352 42.23
---------------------------------------------------------------------------------------------------------------------------
3,633,641.70
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
IC MANAGEMENT
RAIFFEISENZENTRALBANK 70-50.649.904 USD 32501 5,813,826.73 -1,064,624.56
----------------------------------------------------------------
2-00.649.905 EUR 32503 -2,224,625.34
----------------------------------------------------------------
BANK AUSTRIA 644 164 113 EUR 28013 160.48
---------------------------------------------------------------------------------------------------------------------------
5,813,826.73
---------------------------------------------------------------------------------------------------------------------------
TOTAL
(table continued)
0.9131 per 30.9.01
Amount in ATS Amount in EURO Securities
-----------------------------------------------------------------------------
232,711.07 16,911.77 assigned accounts receivable
-8,343,886.65 -606,373.89
-11,680,711.92 -848,870.44 xxxx of exchange, aval Xxxxx GmbH
------------------------------------------
-19,791,887.50 -1,438,332.56
------------------------------------------
-48,436,251.88 -3,519,999.70 assigned accounts receivable
-575,696.17 -41,837.47
240,036.05 17,444.10 xxxx of exchange, aval Xxxxx GmbH
636.40 46.25
------------------------------------------
-48,771,275.60 -3,544,346.82
------------------------------------------
----------------------------------------------------------------------------
-16,043,755.70 -1,165,945.20 assigned accounts receivable
-30,611,511.98 -2,224,625.33 xxxx of exchange
2,208.31 160.48 Guarantee Xxxxx GmbH
------------------------------------------
-46,653,059.37 -3,390,410.05
------------------------------------------
------------------
-8,373,089.43
------------------
N-6
BALANCE OF BANK-ACCOUNTS AS OF USD-Exchange Rate
30.09.2001
Account-No. Currency Kredit-Line in EUR Amount in Currency
------------------------------------------------------------------------------------------------------------------------------------
METALKO
RAIFFEISENBANK TATABANYA 00000000-00254770-00100000 HUF 35 Mio HUF -32,109,365.06
---------------------------------------------------------------------------
HUF 100 Mio HUF -66,603,064.00
---------------------------------------------------------------------------
12028003-00254770-00200000 DEM 1,100.00
---------------------------------------------------------------------------
12025003-00254770-00900006 EUR 100.00
---------------------------------------------------------------------------
KERESKEDELMI ES HITELBANK 00000000-36013144 HUF 644,814.00
---------------------------------------------------------------------------
---------------------------------------------------------------------------
--------------------------------------------------------------------------- ---------------------------------------------
0.00
--------------------------------------------------------------------------- ---------------------------------------------
KOLMET
RAIFFEISENBANK POLSKA/POZNAN 17501019-10.10.019486.000 PLN 844.72
---------------------------------------------------------------------------
17501019-10.10.019486.016 EUR 0.00
---------------------------------------------------------------------------
WYCLAG Z RACHUNKU BANKOWEGO 00000000-0000000-128-00-0-99 PLN 5,067.58
---------------------------------------------------------------------------
10901418-2047834-128-00-0-787 USD 427.75
--------------------------------------------------------------------------- ---------------------------------------------
0.00
--------------------------------------------------------------------------- ---------------------------------------------
UNIMETAL
BANK GOSPODARKI 00000-0000-00 PLN 25.000 USD 274.05
---------------------------------------------------------------------------
84619-2701-12-787 USD 107.87
---------------------------------------------------------------------------
BANK HANDLOWY W WARSZAWIE SA 46335201 PLN 290.03
--------------------------------------------------------------------------- ---------------------------------------------
0.00
------------------------------------------------------------------------------------------------------------------------------------
XXXXX POLAND
RAIFFEISENBANK KRAKAU 00000000-10.35.0215806.300 PLN 30,920.31
---------------------------------------------------------------------------
BANK GOSPODARKI 91457-2701-1100 PLN 155,495.08
--------------------------------------------------------------------------- ---------------------------------------------
0.00
--------------------------------------------------------------------------- ---------------------------------------------
---------------------------------------------------------------------------
S.C. XXXXX X.X.
BCR DEJ Loan old Investment ROL -27,000,000,000.00 -27,000,000,000.00
---------------------------------------------------------------------------
Loan new Investment ROL -30,000,000,000.00 -30,000,000,000.00
---------------------------------------------------------------------------
(table continued)
0.9131 per 30.9.01
Amount in ATS Amount in EURO Securities
-----------------------------------------------------------------------------------------
-124,672.36 unsecured
-258,602.46 Factoring accounts receivable
562.42
100.00
2,503.65
---------------------------------------------------
0.00 -380,108.75
---------------------------------------------------
218.39
0.00
1,310.13
468.46
---------------------------------------------------
0.00 1,996.98
---------------------------------------------------
70.85 Pledge on casting line of Xx.Xxxxx
118.14
74.98
---------------------------------------------------
0.00 263.97
-----------------------------------------------------------------------------------------
7,993.88
40,200.38
---------------------------------------------------
0.00 48,194.26
---------------------------------------------------
-966,010.73 mortgage on plant & equi.
-1,073,345.26 mortgage on plant & equi.
N-7
BCR DEJ 251.1-3.29 USD 0.00
---------------------------------------------------------------------------
2511.1-3.21 DEM 2,852.27
---------------------------------------------------------------------------
2511.1-3.25 ITL 5,370.68
---------------------------------------------------------------------------
2511.1-3.17 ATS 1,225.00
---------------------------------------------------------------------------
2511.1-3.1 ROL 2,698,645,376.84
---------------------------------------------------------------------------
2511.1-3.21 EUR 76,805.32
---------------------------------------------------------------------------
GBT 0.71
---------------------------------------------------------------------------
SEK 26.53
---------------------------------------------------------------------------
CHF 1.03
---------------------------------------------------------------------------
BANCA TRANSILVANIA 2511000052523192 ROL 263,480,543.00
---------------------------------------------------------------------------
BANC POST DEJ 262102.102131000076014 ROL 1,677,324.84
---------------------------------------------------------------------------
DEM 6.01
---------------------------------------------------------------------------
ITL 2,533.00
---------------------------------------------------------------------------
251101.202131000076013516 EUR 15.46
---------------------------------------------------------------------------
BRD GHERLA 2511009 ROL 78,919,389.24
---------------------------------------------------------------------------
2511002 USD 7.00
---------------------------------------------------------------------------
EXMIN BANK BUCARESTI ROL 333,133.00
---------------------------------------------------------------------------
TREZOREIA DEJ ROL 66,797,891.66
---------------------------------------------------------------------------
EXMIN BANK CLUJ 25111131000001301711 ROL 1,210,980.00
--------------------------------------------------------------------------- ---------------------------------------------
-57,000,000,000.00
------------------------------------------------------------------------------------------------------------------------------------
XXXXX CZ
---------------------------------------------------------------------------
RAIFFEISEN BANK PRAHA 1011002954 CZK 390,515.10
---------------------------------------------------------------------------
1011004853 EUR 677.90
--------------------------------------------------------------------------- ---------------------------------------------
0.00
--------------------------------------------------------------------------- ---------------------------------------------
IBT-TOB
----------------------------------
26003246189025 EUR 0.26
----------------------------------
KOMMERZBANK "PRIVATBANK" 26002246189004 UAH -40.000 DEM 17,403.15
--------------------------------------------------------------------------- ---------------------------------------------
0.00
--------------------------------------------------------------------------- ---------------------------------------------
BAUXITE MINING AG
----------------------------------
RAIFFEISENZENTRALBANK WIEN 1-00.686.261 EUR 71,819.19
---------------------------------------------------------------------------
--------------------------------------------------------------------------- ---------------------------------------------
0.00
--------------------------------------------------------------------------- ---------------------------------------------
(table continued)
0.00
1,458.34
2.77
89.02
96,552.61
76,805.32
1.14
2.72
0.70
9,426.85
60.01
3.07
1.31
15.46
2,823.59
7.67
11.92
2,389.91
43.33
--------------------------------
0.00 -1,849,660.25
-----------------------------------------------------------------------------------------
11,499.27
19.96
---------------------------------------------------
0.00 11,519.23
---------------------------------------------------
0.26
3,265.00 Deposit from Xx.Xxxxxxxx
---------------------------------------------------
0.00 3,265.26
---------------------------------------------------
71,819.19
---------------------------------------------------
0.00 71,819.19
---------------------------------------------------
N-8
GUJARAT MINING MINERALS IMPEX XXX.XXX
ICICI Bank 05/57 RS 59,401.00
---------------------------------------------------------------------------
State Bank of Saurashtra C&I/106 RS 9,351.00
--------------------------------------------------------------------------- ---------------------------------------------
0.00
--------------------------------------------------------------------------- ---------------------------------------------
HALLMARK XXXXX XXX.XXX will be mailed by the 18.10.2001
THE COSMOS COOPERATIVE BANK LTD
---------------------------------------------------------------------------
--------------------------------------------------------------------------- ---------------------------------------------
0.00
--------------------------------------------------------------------------- ---------------------------------------------
ALUMINUM HOV S.R.L.
----------------------------------
BCR SUD DEJ 2511.1-8581.1 ROL 21,780,107.00
--------------------------------------------------------------------------- ---------------------------------------------
0.00
--------------------------------------------------------------------------- ---------------------------------------------
ALUMETAL SP.Z.O.O.
----------------------------------
SOCIETE GENERALE Loan PLN -1,000,000.00 -1,000,000.00
---------------------------------------------------------------------------
11950008130 USD 0.00
----------------------------------
11950008101 PLN 176,500.77
---------------------------------------------------------------------------
11950008190 EUR 82,939.61
---------------------------------------------------------------------------
BANK PRZEMYSLOWO-HANDLOWY 10601116-380000035519 EUR 81,245.21
---------------------------------------------------------------------------
10601116-380000035506 USD 20,319.64
---------------------------------------------------------------------------
10601116-320000553437 PLN 2,864.14
---------------------------------------------------------------------------
BANK XXXXXX Loan USD -1,300,000.00 -1,300,000.00
---------------------------------------------------------------------------
Loan blocked and not used USD -1,000,000.00 0.00
---------------------------------------------------------------------------
2228188583 PLN 28,548.55
------------------------------------------------------------------------------------------------------------------------------------
-3,300,000.00
------------------------------------------------------------------------------------------------------------------------------------
TOTAL
(table continued)
1,354.02
213.15
---------------------------------------------------
0.00 1,567.18
---------------------------------------------------
---------------------------------------------------
0.00 0.00
---------------------------------------------------
779.25
---------------------------------------------------
0.00 779.25
---------------------------------------------------
------------------
-258,531.54 assigned account receivable
0.00
45,631.02
82,939.61
81,245.21
22,253.47
740.47
-1,423,721.39 Scrap Inventory balance unsec.
0.00
7,380.70
---------------------------------------------------
0.00 -1,442,062.46
---------------------------------------------------
------------------
-3,532,426.15
------------------
SCHEDULE O
LIST OF LOANS AND GUARANTEES FROM THIRD PARTIES TO OR FOR XXXXX OR ANY
MEMBER OF THE XXXXX GROUP, INCLUDING FROM THE XXXXX STOCKHOLDERS, OTHER
THAN CREDIT AND LOAN FACILITIES LISTED IN SCHEDULE "G"
As of 30.September 2001
Xxxxx GmbH.:
LOAN from XXXXX GMBH. TO XXXXXXXX XXXXX EUR 181.682,09
GUARANTEE (Bid Bond) by RAIFFEISEN ZENTRALBANK OSTERREICH AG for Xxxxx GmbH. to
OIL & NATURAL GAS CORP, India, USD 5.600,-- valid until 21.11.2001 (Goods:
Proppants)
GUARANTEE (Bid Bond) by RAIFFEISEN ZENTRALBANK OSTERREICH AG for
Xxxxx GmbH. to BERHANENA, Ethiopia, USD 8.316,-- valid until 1.1.2002 (Goods:
Paper)
GUARANTEE (Bid Bond) by RAIFFEISEN ZENTRALBANK OSTERREICH AG for Xxxxx GmbH. to
ETHIOPIAN PULP & PAPER SC, Ethiopia, USD 11.660,-- valid until 26.11.2001
(Goods: Pulp) GUARANTEE (Dodumentary Guarantee) by RAIFFEISEN ZENTRALBANK
OSTERREICH AG for Xxxxx GmbH. to TECHNOSTEEL (MAGNITOGORSK), Germany, USD
26.000,-- valid until 21.10.2001 (Goods: Steel)
GUARANTEE by CREDITANSTALT AG for Xxxxx GmbH. to XXXXXX XXXXXXXXX (Rental fee
apartment Xxxxxxxx Xxxxx) EUR 4.407.,61 valid until 25.8.2003
GUARANTEE by CREDITANSTALT AG for Xxxxx GmbH. to XXXXX PROJEKT AG (Rental fee
office Millennium Tower) EUR 50.582,30 valid until 31.12.2001
GUARANTEE by CREDITANSTALT AG for Xxxxx GmbH. to Hauptzollamt (Customs Office
Vienna) EUR 3.481,68 valid until further notice;
GUARANTEE by XXXXX GMBH. to ERSTE BANK AG. (loans to JH TRADE & FINANCIAL
SERVICES GMBH. based on assigned and insured accounts receivable - coverage
80%!Xxxxxxx Kreditversicherung) loan EUR 1,437.200,40 (up to max EUR
3,633.641,71) valid until existing outstanding loan;
GUARANTEE by XXXXX GMBH. to RAIFFEISEN ZENTRALBANK OSTERREICH AG (loans to IC
Managementservices GmbH. based on assigned and insured accounts receivable -
coverage 80%!Osterr.Kreditversicherungs AG) loan EUR 3,363.724,80 (up to max.
EUR 5,813.826,73) valid until existing outstanding loan;
GUARANTEE by XXXXX GMBH. to BANK AUSTRIA AG (LOANS TO GLOBAL BULK TRANSPORT
GMBH. BASED ON ASSIGNED AND INSURED ACCOUNTS RECEIVABLE - coverage 80%! Gothaer
Versicherung) loan EUR 3,544.393,07 (up to max. EUR 3,633.641,71) valid until
existing outstanding loan;
GUARANTEE by XXXXX GMBH. to RAIFFEISEN ZENTRALBANK OSTERREICH AG (LOANS TO FS
FINANCIAL SERVICES GMBH. BASED ON ASSIGNED AND INSURED ACCOUNTS RECEIVABLE -
coverage 90%!Osterreichische Kontrollbank AG) loan EUR 1,132.608,51 valid until
existing outstanding loan;
GUARANTEE (Performance an Payment) by XXXXX GMBH. to MEDIOFACTORING (FACTORING
WITHOUT RECOURSE TO FS FINANCIAL SERVICES GMBH. BASED ON ASSIGNED AND INSURED
ACCOUNTS RECEIVABLE - coverage 100%! Prisma Kreditversicherungs AG15% and
MedioFactoring 85%) up to EUR 2,556.459,41 valid until existing outstanding
loan;
O-2
GUARANTEE (Payment) by XXXXX GMBH. to US STEEL, SK-KOSICE FOR XXXXX & XXXXX, XX
valid for shipments of steel to Xxxxx & Dilta in 2001; as of
30.9.2001 outstanding amount SKK 14,981.251,60 = EUR 343.443,15 (up to max.
turnover in 2001 SKK 319,000.000 = appx. EUR 7,3 mio; 60 days payment term!);
GUARANTEE (Payment) by XXXXX GMBH. to RAIFFEISEN - LEASING S.R.O., CZ-PRAHA
(LEASING TO ALFUN S.R.O.) EUR 148.132,10 valid until 30.9.2003;
IC-Managementservice GmbH.:
Car-Leasing to Xxxxx Xxxxxxxxx, Residual Value due on 15.12.2001
(DEM 10.205,80) EUR 5.218,14
SCHEDULE P
ORGANIZATIONAL CHART OF XXXXX
[ORGANIZATIONAL CHART OF XXXXX]
SCHEDULE Q
LIST OF PERSONS HAVING POWERS TO REPRESENT XXXXX, OTHER THAN THOSE
LISTED IN THE FIRMENBUCH
NONE
SCHEDULE R
LIST OF MATERIAL AGREEMENTS
Rent agreement, Millennium Tower
Trade Xxxx License agreement - Neumuller
Matroz Contract (duration 3 years, begin 2001)
Working contract Xx. Xxxxxxxxxxxx (duration 5 years, began with 2000)
Working/commission contract Xx. Xxxxx (Somes)
Working/commission contract Xxx. Xxxxx (Xxxxx)
Consultancy agreement Xx. Xxxxxx (continuous prolongation each year)
Consultancy agreement Mr. Ishkov
Consultancy agreement Xx. Xxxxxxxxx
Commission agreement - Xx. Xxxxx
Commission agreement - Xx. Xxxxxxxxx (steel team)
Insurance agreements as set out below:
------------------------------------------------------------------------------------------------------
COMPANY INSURANCE COMPANY TYPE OF INSURANCE
------------------------------------------------------------------------------------------------------
XXXXX GMBH Wr. Stadtische Car insurance
------------------------------------------------------------------------------------------------------
UNIQA Transport insurance
------------------------------------------------------------------------------------------------------
Allianz Soll&Haben Vers. fur den Fachhandel
------------------------------------------------------------------------------------------------------
Allianz Business liability insurance
------------------------------------------------------------------------------------------------------
Prisma Loan insurance
------------------------------------------------------------------------------------------------------
Chubb Consequential loss liability
insurance
------------------------------------------------------------------------------------------------------
IC MANAGEMENTSERVICE GMBH OKV Export credit insurance
------------------------------------------------------------------------------------------------------
UNIQA Transport insurance
------------------------------------------------------------------------------------------------------
OKV Credit sale insurance
------------------------------------------------------------------------------------------------------
JH TRADE AND FINANCIAL SERVICES GMBH Xxxxxxx Export credit insurance
------------------------------------------------------------------------------------------------------
UNIQA Transport insurance
------------------------------------------------------------------------------------------------------
GLOBAL BULK TRANSPORT GMBH Gothaer Credit Credit sale insurance
------------------------------------------------------------------------------------------------------
UNIQA Transport insurance
------------------------------------------------------------------------------------------------------
BAUXITE MINING AG UNIQA Transport insurance
------------------------------------------------------------------------------------------------------
R-2
S.C. XXXXX X.X. Omniasig S.A. All Risk Insurance
------------------------------------------------------------------------------------------------------
ALUMETAL SP.Z.O.O. STU Hestia 40% All Risk Insurance
------------------------------------------------------------------------------------------------------
TUiR Xxxxx 40%
------------------------------------------------------------------------------------------------------
PZU 20%
------------------------------------------------------------------------------------------------------
Energo-Asikuracja S.A. Car insurance
------------------------------------------------------------------------------------------------------
Energo-Asikuracja S.A. Car insurance
------------------------------------------------------------------------------------------------------
Energo-Asikuracja S.A. Car insurance
------------------------------------------------------------------------------------------------------
Energo-Asikuracja S.A. Car insurance
------------------------------------------------------------------------------------------------------
PZU Pension fund
------------------------------------------------------------------------------------------------------
PZU Life insurance for employees
------------------------------------------------------------------------------------------------------
XXXXX POLAND SP.Z.O.O. PZU Office insurance
------------------------------------------------------------------------------------------------------
PZU Car insurance
------------------------------------------------------------------------------------------------------
KOLMET SP.Z.O.O. Polonia Office insurance
------------------------------------------------------------------------------------------------------
(inkl. Monitoring)
------------------------------------------------------------------------------------------------------
Polonia All-Risk insurance
------------------------------------------------------------------------------------------------------
Hestia Machinery insurance
------------------------------------------------------------------------------------------------------
S.C. XXXXX IMPEX - TRADING SRL. Astra S.A. Car insurance
------------------------------------------------------------------------------------------------------
Astra S.A. Office Equipment
------------------------------------------------------------------------------------------------------
METALKO KFT AXA Colonia All Risk Insurance
------------------------------------------------------------------------------------------------------
Generali-Providencia Liability insurance
------------------------------------------------------------------------------------------------------
Generali-Providencia EDP insurance
------------------------------------------------------------------------------------------------------
XXXXX CZ SPOL.S.R.O. UNIQA Car insurance
------------------------------------------------------------------------------------------------------
Leasing agreements as set out below:
XXXXX GMBH VIENNA:
LEASING AGREEMENTS
WITH FOR
GE Capital Bank Ford Scorpio GL 2,3
BMW Leasing BMW 521 i
Ford Bank Ford Mondeo Ghia Traveller
Ford Bank Ford Mondeo Edition 1,8TD
Raiffeisen Leasing Renault Safra V6
XXXXX ZILINA:
LEASING AGREEMENT
WITH FOR
Tatra Leasing Xxxxx Xxxxxxx 1,9 TDI
XXXXX GMBH VIENNA: (MIETKAUF!!!!!!)
LEASING AGREEMENT
WITH FOR
R-3
Bank Austria Creditanstalt
Mobilien Leasing GmbH 1 Kompressor
GA 250-7,5 CE 380-415/50 1
Adsorptionstrockner BD 780
400/50 CE 1 Vorfilter DD
900 F CE 1 Mikrofilter PD
900 F CE (S.C.Xxxxx X.X.)
XXXXX POLAND KRAKOW
LEASING AGREEMENT
WITH FOR
Raiffeisen Leasing Ford Focus
Raiffeisen Leasing Ford Galaxi
KOLMET
LEASING AGREEMENT
WITH FOR
LG Leasing Polska Sp.z.o.o. 2 Forklifts
METALKO
LEASING AGREEMENT
WITH FOR
XX Xxxxx Kft Forklift Hercu D 30
