Dated 25 March 2002
SHARE OPTION AGREEMENT
between
PRIMACOM AG
AS THE ORIGINAL OPTION GRANTOR
and
PRIMACOM MANAGEMENT GmbH
and
X.X. XXXXXX EUROPE LIMITED
AS THE OPTION HOLDER
and
THE FINANCIAL INSTITUTIONS NAMED IN SCHEDULE 1
AS THE ORIGINAL SECOND SECURED LENDERS
LINKLATERS OPPENHOFF & XXXXXX
Mainzer Xxxxxxxxxxx 00
D-60325Frankfurt am Main
Xxxxxxxx 00 00 00
X-00000 Xxxxxxxxx xx Xxxx
Telephone: (49-69) 7 10 03-0
Facsimile: (00-00) 0 00 00-000
TABLE OF CONTENTS
PARTIES TO THIS AGREEMENT.................................................................................1
RECITALS ...............................................................................................1
1 DEFINITIONS....................................................................................2
2 AGREEMENT TO TRANSFER PMG SHARE(S).............................................................3
3 EXERCISE OF THE SHARE OPTION...................................................................4
4 EXERCISED SHARE(S) AND CONSIDERATION...........................................................5
5 REPRESENTATIONS AND WARRANTIES.................................................................6
6 UNDERTAKINGS OF PAG AND OF PMG.................................................................8
7 APPOINTMENT OF OPTION HOLDER..................................................................11
8 INSTRUCTIONS TO OPTION HOLDER.................................................................12
9 ASSIGNMENT AND TRANSFER OF THIS AGREEMENT.....................................................14
10 SHAREHOLDERS' APPROVAL........................................................................15
11 MISCELLANEOUS.................................................................................15
SCHEDULE 1...............................................................................................18
SCHEDULE 2...............................................................................................19
SCHEDULE 3...............................................................................................22
SCHEDULE 4...............................................................................................24
SCHEDULE 5...............................................................................................25
PARTIES TO THIS AGREEMENT
This
Share Option Agreement (this "AGREEMENT") is made on 25 March 2002 between:
(1)
PRIMACOM AG with business address at XxxxxxxxxXx 00, 00000 Xxxxx
(hereinafter referred to as "PAG");
(2) PRIMACOM MANAGEMENT GmbH with business address at XxxxxxxxxXx 00, 00000
Xxxxx (hereinafter referred to as "PMG");
(3) X.X. XXXXXX EUROPE LIMITED, with business address at 000 Xxxxxx Xxxx,
Xxxxxx XX0X 0XX, acting as fiduciary (TREUHANDER) for the Second Secured
Lenders (hereinafter referred to the "OPTION HOLDER"); and
(4) THE FINANCIAL INSTITUTIONS named in Schedule 1 (herein after referred to
as the "ORIGINAL SECOND SECURED LENDERS").
RECITALS
Whereas:
(A)
PrimaCom AG is a duly established and validly existing stock corporation
(AKTIENGESELLSCHAFT) under German law with its seat in Mainz and which is
registered with the commercial register of the Municipal Court
(AMTSGERICHT) in Mainz under HR B 7164. PAG is active in the holding of
shares in corporations and partnerships which directly or indirectly
render services in the field of cable television, communication and
information systems.
(B) PrimaCom Management GmbH is a duly established and validly existing
limited liability company (GESELLSCHAFT MIT BESCHRANKTER HAFTUNG) under
German law with its seat in Mainz and which is registered with the
commercial register of the Municipal Court (AMTSGERICHT) in Mainz under
HRB 7454. PMG is and its subsidiaries are active in the rendering of
services in the field of cable television, communication and information
systems.
(C) The nominal value of the entire issued share capital of PMG amounts to EUR
90,000. PAG is, at the date of this Agreement, the sole shareholder of PMG
and holds one share in PMG with a nominal value of EUR 90,000.
(D) PAG (and each other Option Grantor, if any) agrees to grant the Share
Option on the terms and conditions set out in this Agreement.
(E) The Original Second Secured Lenders have appointed the Option Holder to
act as their fiduciary under German law (TREUHANDER) on the terms set out
in this Agreement.
(F) The Original Second Secured Lenders have granted to PAG a loan facility of
EUR 375,000,000 under the Second Secured Facility Agreement dated on or
about the date of this Agreement.
(G) Pursuant to the Second Secured Facility Agreement, if and whenever the
Share Option granted by this Agreement is exercised, the loan (and other
outstandings) granted to PAG under the Second Secured Facility Agreement
will be reduced (and deemed repaid by PAG) in an amount equal to the
Converted Loan Amount relating to that exercise of the Share Option, in
the manner described in the Second Secured Facility Agreement.
Now, therefore, the Parties agree as follows:
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1 DEFINITIONS
BUSINESS DAY shall mean any day (other than Saturday or Sunday) on which banks
are open for general business in Frankfurt am Main and London.
CONVERTED LOAN AMOUNT shall have the meaning given in Clause 4.1.
DEED OF TRANSFER shall mean an instrument of transfer in all material respects
in the form set out in Schedule 2.
DEFAULT NOTICE shall mean any notice given to PAG by the Option Holder pursuant
to Clause 5.4 of this Agreement.
EARLY TRIGGER EVENT shall mean any breach of any of the representations,
statements or undertakings of PAG or PMG pursuant to Clause 5 or 6 of this
Agreement.
EXERCISE DATE shall mean, in respect of an exercise of the Share Option, the day
on which the relevant PMG Share(s) are (or are to be) transferred to the
relevant Transferee pursuant to that exercise of the Share Option.
EXERCISE PERIOD shall mean the period from (and including) 31 December 2004 to
the Second Secured Discharge Date.
EXERCISED SHARE(S) shall mean in respect of any exercise of the Share Option,
the portion of the PMG Share(s) which are identified in the relevant Trigger
Notice and are to be transferred to the Transferee.
OPTION GRANTOR means
(a) PAG; and
(b) any other shareholder in PMG who has acceded to this Agreement as an
Option Grantor in accordance with Clause 9.5 or 9.6.
OPTION PARTICIPATION PROPORTION shall mean, in respect of any Second Secured
Lender, an amount expressed as a percentage determined as described in Clause
8.7.
PARTY means a party to this Agreement.
PMG SHARE(S) shall mean, from time to time, the share(s) in the share capital of
PMG, being:
(a) the share in the share capital of PMG existing at the date of this
Agreement (held by PAG with a nominal value of EUR 90,000 and reduced by
any transfers of share(s) after the date of this Agreement pursuant to
Clause 3.3); and
(b) any share(s) in the share capital of PMG created after the date of this
Agreement either by transfer or by capital increase.
PMG SUBSIDIARIES shall mean all corporations and partnerships that are either
controlled by PMG or in which PMG holds an interest of more than 50% of the
share capital or similar right of ownership; "controlled" for this purpose shall
mean the power to direct the management of the entity whether through the
ownership of share capital, contract or otherwise.
SECOND SECURED FACILITY AGREEMENT shall mean the EUR 375,000,000 Second Secured
Facility Agreement dated on or about the date of this Agreement between PAG,
PMG, the Second Secured Lenders and others.
SECOND SECURED DISCHARGE DATE shall mean the date on which the Second Secured
Outstandings have been irrevocably repaid in full.
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SECOND SECURED LENDERS shall mean any financial institution:
(a) named in Schedule 1 (ORIGINAL SECOND SECURED LENDERS); or
(b) which has become a party hereto as a Second Secured Lender in accordance
with Clause 9.4,
which, in either case, has not ceased to be a party hereto in accordance with
the terms hereof.
SECOND SECURED OUTSTANDINGS shall mean the loan in the original amount of EUR
375,000,000 under the Second Secured Facility Agreement together with all
related amounts of principal and interest owing in respect of that loan
(including accrued but unpaid interest, and capitalised interest).
SENIOR FACILITY AGREEMENT shall mean the loan facility agreement dated 18.
September 2000 as amended and restated from time to time between PAG, PMG, XX
Xxxxxx Europe Limited as an agent and other parties.
SHARE OPTION shall mean the right of the Option Holder to acquire (or to direct
the transfer of) at one or several times up to 65% in aggregate of the total
issued share capital of PMG pursuant to Clause 2.1 of this Agreement upon giving
one or more Trigger Notices.
SHAREHOLDING PROPORTION means at any time and in relation to an Option Grantor,
the proportion (expressed as a percentage) that by (i) the aggregate nominal
value of the PMG Share(s) owned by that Option Grantor bears to (ii) the
aggregate nominal value of the entire issued share capital of PMG at that time.
TRANSFERRED SHARES shall mean any PMG Share(s) transferred pursuant to an
exercise of the Share Option in accordance with this Agreement.
TRANSFEREE shall mean, in respect of any exercise of the Share Option, the
person to whom the Exercised Share(s) are, or are to be, transferred on that
exercise of the Share Option.
TRIGGER NOTICE shall mean a notice in writing in all material respects in the
form set out in Schedule 3.
2 AGREEMENT TO TRANSFER PMG SHARE(S)
2.1 Subject to and on the terms and conditions of this Agreement, each Option
Grantor hereby agrees that it will, each time the Option Holder gives a
Trigger Notice, transfer to the Transferee identified in that Trigger
Notice that portion of the PMG Share(s) owned by it as is determined in
accordance with Clause 4.2.
2.2 The Option Holder may not exercise the Share Option, and no Option Grantor
is required to transfer any portion of the PMG Share(s), if and to the
extent that:
2.2.1 the aggregate nominal value of the Transferred Share(s) which
have been transferred by PAG pursuant to the Share Option exceeds
(or would on completion of such exercise and transfer exceed) 65%
of the aggregate nominal value of the issued share capital of PMG
at that time; or
2.2.2 on any Exercise Date the aggregate amount of the Converted Loan
Amount for each exercise of the Share Option on that date would
exceed (or would at completion of such exercise exceed) the total
amount of the Second Secured Outstandings on that date; or
2.2.3 Clause 8.6 would be breached.
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2.3 If one or more Trigger Notices have been given, and the exercise of the
Share Option requested in the Trigger Notice(s) would breach Clause 2.2
above, the portion of PMG Share(s) to be transferred (and the
corresponding Converted Loan Amounts) shall be reduced by the minimum
amount necessary (and if more than one exercise has been requested, pro
rata across each exercise of the Share Option then requested) to enable
compliance with Clause 2.2.
3 EXERCISE OF THE SHARE OPTION
3.1 The Share Option shall be exercisable one or more times (on one or more
days) by the Option Holder giving to each Option Grantor a Trigger Notice
in accordance with this Agreement:
3.1.1 on any Business Day during the Exercise Period; or
3.1.2 if an Early Trigger Event has occurred, on any Business Day on or
prior to the Second Secured Discharge Date.
3.2 Each Trigger Notice shall set out:
3.2.1 the amount of the Converted Loan Amount (being the portion of the
Second Secured Outstandings that is requested to be deemed repaid
through the transfer of PMG Share(s));
3.2.2 the aggregate nominal value of the portion of the PMG Share(s) to
be transferred (which shall be calculated in accordance with
Clause 4.1);
3.2.3 (if there is at that time more than one holder of PMG Share(s))
the nominal value of the portion of the PMG Share(s) to be
transferred by each Option Grantor (which shall be calculated in
accordance with Clause 4.2);
3.2.4 the Transferee to which those PMG Share(s) shall be transferred
(which may be the Option Holder, a Second Secured Lender or any
third party); and
3.2.5 which Second Secured Lender's participation in the Second Secured
Outstandings will be reduced and deemed repaid on transfer of the
Exercised Share(s).
3.3 Upon an exercise of the Share Option, each Option Grantor shall in
collaboration with the relevant Transferee without undue delay (OHNE
SCHULDHAFTES ZOGERN), and in any event not later than 10 Business Days
following the delivery of the Trigger Notice (or such later date as the
Option Holder agrees), effect the transfer of the Exercised Share(s)
(together with all ancillary rights pertaining thereto, including dividend
rights for the entire fiscal year in which the Share Option is exercised
and all rights to undistributed profits) to the relevant Transferee, by
execution and notarisation of a Deed of Transfer.
3.4 If at the Exercise Date the acquisition of the Exercised Share(s) would
require the approval of the Merger Control Authorities, the transfer of
the Exercised Share shall be executed and notarised nevertheless but the
transfer shall be conditional upon the grant of such approval. PAG and the
Transferee should cooperate in good faith to obtain such approval in the
shortest time as possible. The exercise of the Share Option will not be
completed, and the corresponding reduction in the Second Loan Outstandings
will not take place, until such transfer is unconditionally completed.
3.5 PMG shall take any steps required in order to enable each Option Grantor
to comply with its obligations under this Agreement, in particular the
obligation under Clause 3.3, and
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shall, without limitation, consent to any division of PMG Share(s) as
required by section 17 German Limited Liability Companies Act (GmbHG)
without undue delay (OHNE SCHULDHAFTES ZOGERN) in order to enable each
Option Grantor to effect the transfer as required on exercise of the Share
Option.
4 EXERCISED SHARE(S) AND CONSIDERATION
4.1 The aggregate nominal value of the portion of the PMG Share(s) to be
transferred upon an exercise of the Share Option shall be calculated by
applying the following formula:
Converted Loan Amount
Excercised Share(s)= -------------------------------------------------
((EBITDA*12)-(Total Debt-Converted Loan Amount))
(----------------------------------------------)
( Total Nominal Value )
Where:
EXERCISED SHARE(S) shall mean, in respect of any exercise of the Share
Option, the aggregate nominal value of the PMG Share(s) to be transferred
to the Transferee.
CONVERTED LOAN AMOUNT shall mean, in respect of any exercise of the Share
Option, that portion of the Second Secured Outstandings in respect of
which the Share Option is exercised (as stated in the relevant Trigger
Notice).
EBITDA shall mean the EBITDA (as defined in the Second Secured Facility
Agreement) of the Financial Group:
4.1.1 as evidenced by the then most recent consolidated financial
statements delivered pursuant to sub-clauses 18.1.1 or 18.1.2 of
Clause 18.1 (FINANCIAL STATEMENTS) of the Second Secured Facility
Agreement (adjusted as described in the first paragraph of Clause
19 (FINANCIAL CONDITION) of the Second Secured Facility Agreement
to take account of any changes in the basis on which such
statements were prepared or in generally accepted accounting
principles); and
4.1.2 determined on a rolling 12 month basis (being the period of four
consecutive Quarterly Periods ending on the most recent Quarter
Day),
and for these purposes "Financial Group", "Quarterly Period" and "Quarter
Day" shall have the meanings given to those terms in the Second Secured
Facility Agreement.
TOTAL DEBT shall mean the Total Debt (as defined in the Second Secured
Facility Agreement) of the Financial Group as at the latest Quarter Day in
respect of which consolidated financial statements have been delivered
pursuant to sub-clauses 18.1.1 or 18.1.2 of Clause 18.1 (FINANCIAL
STATEMENTS) of the Second Secured Facility Agreement and as evidenced by
those statements (adjusted as described in the first paragraph of Clause
19 (FINANCIAL CONDITION) of the Second Secured Facility Agreement to take
account of any changes in the basis on which such statements were prepared
or in generally accepted accounting principles), and for these purposes
"Financial Group" and "Quarter Day" shall have the meanings given to those
terms in the Second Secured Facility Agreement.
TOTAL NOMINAL VALUE shall mean, at any time, the aggregate nominal value
of the entire share capital of PMG issued at that time.
4.2 The nominal value of the portion of the PMG Share(s) to be transferred by
each individual Option Grantor on an exercise of the Share Option shall be
determined as follows:
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4.2.1 If at the time of that exercise of the Share Option there is only
one Option Grantor, who holds all the PMG Share(s), that Option
Grantor shall transfer a portion of those PMG Share(s) with a
nominal value equal to that of the Exercised Share(s) (calculated
as described in Clause 4.1 and rounded down to the nearest EUR
50).
4.2.2 If at the time of that exercise of the Share Option, there is
more than one holder of the PMG Share(s), each Option Grantor
shall transfer a portion of the PMG Share(s) owned by it with a
nominal value in an amount equal to the Shareholding Proportion
of that Option Grantor of the nominal value of the Exercised
Share (calculated in accordance with Clause 4.1 above), provided
that:
(i) The Shareholding Proportion of that Option Grantor shall be
calculated immediately before that exercise of the Share
Option.
(ii) Subject to paragraph (iii) below, the nominal value of the
PMG Share(s) to be transferred by that Option Grantor shall
be rounded down to the nearest EUR 50.
(iii) The Option Holder may, following consultation with the
Option Grantors and the Second Secured Lenders who have
given Trigger Notice(s), reduce or increase the Converted
Loan Amount (by a maximum amount of EUR 1,000,000) or may
round down (to the nearest EUR 50) the nominal value of the
PMG Share(s) to be transferred by the individual Option
Grantors in order to divide most equitably and fairly the
aggregate nominal value of the Exercised Share(s) among the
Option Grantors, and to ensure that the aggregate of the
nominal value of the transferred shares is as close as
practicable to the aggregate nominal value of the Exercised
Share.
4.3 No amount shall be paid, and no liability shall be incurred, by the Option
Holder in respect of any exercise of the Share Option. The consideration
for an exercise of the Share Option shall be the reduction and deemed
repayment of the Second Secured Outstandings in accordance with the Second
Secured Facility Agreement in an amount equal to the Converted Loan Amount
for that exercise of the Share Option.
5 REPRESENTATIONS AND WARRANTIES
5.1 PAG and PMG shall be liable to the Option Holder and to each Second
Secured Lender for the correctness of the following statements at the date
of this Agreement and on each Exercise Date except stated explicitly
otherwise:
5.1.1 PMG is duly incorporated and validly existing under the
applicable laws of Germany and duly registered with Commercial
Register of the Municipal Court in Mainz under the registration
number HR B 7454. The extract from the Commercial Register, dated
5 February 2002 includes all shareholders' resolutions passed
which have to be registered. There are no shareholders'
resolutions pending as of the date of this Agreement that need to
be registered.
5.1.2 On the date of this Agreement, the share capital of PMG amounts
to EUR 90,000 and consists of one share with a nominal value of
EUR 90,000. The share capital of PMG has been fully and duly paid
and has not been repaid.
5.1.3 With respect to any of the PMG Share(s) to be transferred by PAG
pursuant to an exercise of the Share Option:
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(i) PAG is the sole owner of and has unrestricted valid legal
title in those PMG Share(s);
(ii) those PMG Share(s) are free and clear from any third party
right, any encumbrances, liens, pledges or restrictions
whatsoever;
(iii) those PMG Share(s) are freely transferable, except for any
transfer restrictions imposed by applicable German
Corporate Law provisions and the Articles of Association of
the PMG (as to be amended pursuant to Clause 6.3 of this
Agreement), and
(iv) those PMG Share(s) are validly issued and are not subject
to any additional capital contribution (NICHT
NACHSCHUBPFLICHTIG) and have not been subject to any
amortisation (EINZIEHUNG) or reimbursement
(EINLAGENRUCKERSTATTUNG).
5.1.4 With respect to each exercise of the Share Option, the relevant
Transferee has, or will upon transfer of ownership in the
relevant Exercised Share(s), acquire full, unrestricted and
unencumbered title to the relevant Exercised Share(s) that is to
be transferred by PAG.
5.1.5 PAG has the right and full corporate power to execute and to
perform its obligations under this Agreement and to freely
dispose of the Exercised Share(s) to be transferred by PAG
without consent of any third party and all necessary corporate,
shareholder or other action has been taken to authorise the
execution and performance of the same (except for such approval
of the shareholders meeting of PAG scheduled to be held on 5 June
2002).
5.1.6 Except for this Agreement, there are no options or rights of any
type whatsoever outstanding by virtue of which any person is
entitled to have issued or transferred to it any shares in PMG.
5.1.7 There are no silent partnership agreements, shareholder
agreements (other than the Articles (GESELLSCHAFTSVERTRAGE)) or
similar arrangements (other than permitted under the Second
Secured Facility or the Senior Facility Agreement) by which a
third party (other than PAG, PMG or PMG subsidiaries) is entitled
to a participation in the profits, revenues, assets or equity (or
the value thereof) of PMG or any of the PMG Subsidiaries or which
relate to the business of PMG or the business of any of the PMG
Subsidiaries.
5.1.8 The granting of the Share Option and the transfer of the
Exercised Shares thereunder does not conflict with the Articles
of Association (GESELLSCHAFTSVERTRAG) of PMG or any other
arrangement or agreement binding on PMG or PAG.
5.2 In relation to the statements of PAG and PMG set out in Clause 5.1:
5.2.1 Those statements constitute (and the Parties agree that those
statements shall constitute) agreements on the legal and factual
nature (BESCHAFFENHEITSVEREINBARUNG) of PMG and its shares. If
any such statement is inaccurate, the Parties hereby agree that
the consequences set out in Clauses 5.3 to 5.4 shall exclusively
apply and the statutory legal consequences shall not apply.
5.2.2 Without limiting Clause 5.2.1, even if a statement is found not
to be an agreement on the legal and factual nature
(BESCHAFFENHEITSVEREINBARUNG) of PMG and its shares, such
statement shall constitute an independent guarantee and again on
a
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breach of that guarantee the consequences set out in Clauses
5.3 to 5.4 shall exclusively apply and the statutory legal
consequences shall not apply.
5.3 If any of the statements set out in Clause 5.1 is not correct in any
material respect when made or deemed repeated:
5.3.1 PAG and PMG shall notify the Option Holder of any such breach
without undue delay (OHNE SCHULDHAFTES ZOGERN), but in any case
within 10 Business Days after PAG or PMG has become aware of that
breach stating the nature thereof and the amount involved to the
extent that such amount has been determined at the time when such
notice is given.
5.3.2 PAG and PMG shall put the Option Holder and the Second Secured
Lenders without undue delay (OHNE SCHULDHAFTES ZOGERN) in the
position it would be in had the representation or warranty been
correct.
5.3.3 If PAG and PMG are unable to cure the defect or violation within
20 Business Days from obtaining knowledge of the relevant defect
or violation (or within any other period on which the Parties may
agree upon), PAG and PMG shall compensate the Option Holder and
the Second Secured Lenders in money accordingly provided however
any liability of PMG under this Clause 5.3.3 shall be limited to
the amount legally permitted to pay under the Act on Companies
with Limited Liability (GmbHG).
5.3.4 No Party shall have the right to withdraw from the Option
Agreement (AUSSCHLUB DES RUCKTRITTS).
5.4 The claims of the Option Holder and the Second Secured Lenders resulting
from a breach of any of the statements set out in Clause 5.1 shall, in
respect of any particular exercise of the Share Option, become time-barred
24 months after the relevant Exercise Date. The limitation period shall be
interrupted by means of a written Default Notice. Section 203 German Civil
Code (BGB) shall apply (but so that the limitation period shall lapse not
before 6 months have expired since the other party has finally refused any
further negotiation with respect to the respective warranty claim). For
the avoidance of doubt the limitation period provided for in this section
shall only apply to claims pursuant to this Clause 5.
5.5 Claims of the Option Holder and the Second Secured Lenders pursuant to
this Clause 5 shall only be made up to an aggregate amount equal to the
total amount of the Second Secured Outstandings.
6 UNDERTAKINGS OF PAG AND OF PMG
6.1 During the period from the date of this Agreement until the earlier to
occur of (i) the exercise in full of the Share Option and (ii) the end of
the Exercise Period PAG undertakes to the Option Holder and the Second
Secured Lenders:
6.1.1 Not to dispose of the PMG Share(s) or parts thereof or any
interest therein, including without limitation, not to sell,
transfer or encumber the PMG Share(s) nor to grant option rights
or any other rights to third parties in respect to the PMG Shares
except in accordance with this Agreement or with the prior
written consent of the Option Holder.
6.1.2 Not to vote its share in favour of an amendment of PMG's Articles
of Association (GESELLSCHAFTSVERTRAG) or the Rules of Procedure
(GESCHAFTSORDNUNG DER
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GESCHAFTSFUHRUNG) except in accordance with this Agreement or
with the prior written consent of the Option Holder.
6.1.3 Not to vote its share in favour of a shareholders' resolutions
that might have a material adverse effect on the Share Option and
the Transferred Shares and in particular (but without
limitation), not to:
(i) increase or decrease the share capital of PMG except with
the prior written consent of the Option Holder and each
Second Secured Lender,
(ii) vote in favour of any cancellation or amortisation of
shares,
(iii) other than in respect of any such agreement which is
permitted under the Second Secured Facility Agreement or
the Senior Facility Agreement, vote in favour of any kind
of business agreement, profit and loss transfer agreement,
silent partnership agreement, profit pooling agreement or
any similar agreement or any agreement which might have a
similar effect except with the prior written consent of the
Option Holder and each Second Secured Lender that shall not
be unreasonably withheld; or
(iv) pass any shareholders' resolution by which PMG or the
management of PMG would be required to enter into any
agreement or other arrangement which would cause a material
adverse effect on the business of PMG or any of the PMG
Subsidiaries or to refrain from entering into such
agreements or arrangements if such refraining would have a
material adverse effect on the business of PMG or any of
the PMG Subsidiaries.
6.1.4 To waive pre-emption rights (VORKAUFSRECHTE) if any regarding the
PMG Share(s) in respect of any transfer on exercise of the Share
Option.
6.1.5 To consent to and to procure that PMG consents to any transfer of
shares pursuant to this Agreement as may be required by PAG's or
PMG's Articles of Association and to procure (by no later than
the day on which the condition in Clause 10 (SHAREHOLDER'S
APPROVAL) is fulfilled) the amendment of PMG's Articles of
Association to provide that, until the exercise in full of the
Share Option or the end of the Exercise Period, the consent of
the Option Holder is required to the transfer of any PMG
Share(s). If the Commerical Register should refuse to register
the requirement of the Option Holder's consent to share
transfers, this shall not be deemed a breach of this undertaking
in Clause 6.1.5, provided that PAG and PMG have used their best
efforts to have the amendment registered. In this case, the
Parties agree to use their best efforts to amend the PMG's
Articles of Association in a manner that corresponds closely as
possible to the intention of the amendment refused by the
commercial register.
6.1.6 To inform the Option Holder without undue delay (OHNE
SCHULDHAFTES ZOGERN) of all actions and circumstances concerning
PMG which might have a material adverse effect on the Share
Option. In particular, PAG shall notify the Option Holder
forthwith of any ordinary or extraordinary shareholders meeting
at which a shareholders' resolution is intended to be adopted
which might have a material adverse effect on the Share Option.
6.1.7 Upon request of the Option Holder, to provide and to procure that
PMG provides all information reasonably requested to enable the
Option Holder and the Second Secured Lenders to produce a
info-memorandum (the content of which shall not exceed
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the information as required by the Sales Prospectus Ordinance
(VERKPROSPVO)) on PMG and the PMG Subsidiaries for potential
Transferees. In addition, PAG shall provide and to procure that
PMG provides all relevant information and reasonable assistance
to enable selected, creditable and honestly interested potential
Transferees to carry out due diligence in respect of PMG and the
PMG Subsidiaries, provided that such potential Transferees and
all advisors to such potential Transferees have entered into
confidentially agreements (customary for such a kind of
transaction) with PAG.
6.2 During the period from the date of this Agreement until the earlier of (i)
the exercise in full of the Share Option and (ii) the end of the Exercise
Period, PMG undertakes to the Option Holder and the Second Secured
Lenders:
6.2.1 To continue to conduct and develop its business and to procure
that PMG Subsidiaries continue to conduct and develop their
respective businesses in the field of cable television,
communication and information systems with the diligence and care
of a prudent businessman.
6.2.2 Upon request of the Option Holder, to provide and to procure that
PMG Subsidiaries provide all information reasonably requested to
enable the Option Holder and the Second Secured Lenders to
produce a info-memorandum (the content of which shall not exceed
the information as required by the Sales Prospectus Ordinance
(VERKPROSPVO)) on PMG and the PMG Subsidiaries for potential
Transferees. In addition, PMG shall provide and to procure that
PMG Subsidiaries provide all relevant information and reasonable
assistance to enable selected, creditable and honestly interested
potential Transferees to carry out due diligence in respect of
PMG and the PMG Subsidiaries, provided that such potential
Transferees and all advisors to such potential Transferees have
entered into confidentially agreements (customary for such a kind
of transaction) with PAG.
6.2.3 To inform the Option Holder without undue delay (OHNE
SCHULDHAFTES ZOGERN) of all actions and circumstances concerning
PMG or any of the PMG Subsidiaries, as the case may be, which
might have a material adverse effect on the Share Option.
6.3 PAG undertakes on request of the Option Holder but not later than 31.
December 2004 (effectiveness of the amendment) to amend the Articles of
Association (GESELLSCHAFTSVERTRAG) in all material respects in the form
set out in Schedule 5.
6.4 Any breach of any of the undertakings of PAG or PMG according to this
Section 6 of this Agreement shall be deemed an Early Trigger Event that,
if not cured within a period of 21 days (the "CURE PERIOD") following the
respective breach, shall entitle the Option Holder to exercise the Share
Option pursuant to Clause 2.3 of this Agreement, regardless whether such
breach has than been cured after the Cure Period.
6.5 During the period from the date of this Agreement until (i) the exercise
in full of the Share Option and (ii) the end of the Exercise Period, each
Option Grantor (other than PAG) undertakes to the Option Holder and the
Second Secured Lenders:
6.5.1 To notify the Option Holder of any transfer by it of any PMG
Share(s) (and its compliance with Clause 9.5 in respect of that
transfer).
6.5.2 To consent to any transfer of shares pursuant to this Agreement
as may be required by PMG's Articles of Association.
- 10 -
6.5.3 To waive pre-emption rights (VORKAUFSRECHTE) if any regarding the
PMG Share(s) in respect of any transfer on exercise of the Share
Option.
6.5.4 To provide such information and other assistance as the Option
Holder may reasonably request in order to enable the transfer of
PMG Share(s) on an exercise of the Share Option.
6.6 None of the undertakings of PAG and PMG according to this Clause 6 shall
prevent or limit PAG and PMG to fulfil their respective obligations under
the Second Secured Facility Agreement and the Senior Facility Agreement.
7 APPOINTMENT OF OPTION HOLDER
7.1 The Second Secured Lenders herewith appoint the Option Holder to act as
fiduciary (TREUHANDER). The Option Holder shall hold the Share Option as
German law trustee (TREUHANDER) for the benefit of the Second Secured
Lenders, each in its Relevant Proportion.
7.2 The Second Secured Lenders empower and authorise the Option Holder
(subject to the provisions of this Agreement) to accept the Share Option
on their behalf and to give Trigger Notices as further set out below.
7.3 The Option Holder shall be released from the restrictions set forth in
Section 181 of the German Civil Code (BGB) to allow it to perform its
duties and obligations as Option Holder as set out herein.
7.4 The Option Holder may:
7.4.1 assume unless it has, in its capacity as Option Holder, actual
knowledge or actual notice to the contrary, that:
(i) any representation made by PAG or PMG in, or pursuant to,
this Agreement is true;
(ii) a person purporting to be an authorised signatory of PAG,
PMG or any Option Grantor or any Second Secured Lender or
any other person is duly authorised to act in that capacity
by or on behalf of such person;
(iii) none of PAG, PMG, any Option Grantor or any Second Secured
Lender is in breach of any of its respective obligations
hereunder;
7.4.2 rely as to any matters of fact which might reasonably be expected
to be within the knowledge of PMG or PAG upon a certificate
signed by or on behalf of PMG or PAG, respectively;
7.4.3 rely upon any communication or document believed by it to be
genuine;
7.4.4 engage and pay for the advice or services of, and rely and act on
the opinion of advice (howsoever given) of, or any information
obtained from, any lawyers, accountants, surveyors or other
professional advisers or experts whose advice or services may to
it seem necessary, expedient or desirable.
7.5 The Option Holder accepts no responsibility for the accuracy and/or
completeness of any information supplied by PMG, PAG or any other person
in connection with, or for the legality, validity, effectiveness, adequacy
or enforceability of, this Agreement and shall not be liable or
responsible for any losses to any person, howsoever caused, as a result of
taking
- 11 -
or omitting to take any action whatsoever in relation to this Agreement or
otherwise, save in the case of gross negligence or wilful misconduct.
7.6 Each of the Second Secured Lenders hereto agrees that it will not assert
or seek to assert against any director, officer or employee of the Option
Holder any claim it might have against any of them in respect of the
matters referred to in Clause 7.5.
7.7 The Option Holder, and every attorney, agent or other person appointed by
it hereunder, shall have the right to be indemnified by the Second Secured
Lenders (each in their respective Option Participation Proportions)
against all claims, demands, liabilities, proceedings, costs, fees,
charges, losses and expenses incurred by it in relation to or arising out
of the taking or holding of the Share Option, the exercise or purported
exercise of any of the rights, trusts, powers and discretions vested in
any of them or any other matter or thing done or omitted to be done in
connection with this Agreement or pursuant to any law or regulation
(otherwise than as a result of its gross negligence or wilful misconduct).
8 INSTRUCTIONS TO OPTION HOLDER
8.1 Subject to Clause 8.3, the Option Holder may only, and shall, give a
Trigger Notice to the Option Grantor(s) on the instruction of a Second
Secured Lender.
8.2 Subject to Clause 8.3, each Second Secured Lender may instruct the Option
Holder to give one or more Trigger Notices to the Option Grantor(s). A
Second Secured Lender gives such an instruction to the Option Holder by
giving to the Option Holder a completed Trigger Notice.
8.3 Unless the Original Second Secured Lenders agree otherwise, a Second
Secured Lender may only give a Trigger Notice to the Option Holder if that
Second Secured Lender has obtained legal opinions from three legal firms
of international repute that the proposed exercise of the Share Option in
no way impairs the rights or security ranking of those Second Secured
Lenders who do not elect to give a Trigger Notice to the Option Holder.
8.4 When a Second Secured Lender gives a Trigger Notice to the Option Holder:
8.4.1 The Second Secured Lender shall give to the Option Holder one
original Trigger Notice for each Option Grantor at that time.
8.4.2 The Second Secured Lender shall complete Part I of the Trigger
Notice.
8.4.3 The Option Holder shall complete Part II of the Trigger Notice
for each Option Grantor in accordance with Clause 4.2.
8.5 If, at the time a Second Secured Lender (the "EXERCISING LENDER") gives a
Trigger Notice to the Option Holder, no other Second Secured Lender has
given a Trigger Notice (except for any which has already been passed on to
the Option Grantor(s) by the Option Holder in accordance with this
Agreement):
8.5.1 The Option Holder shall promptly copy to each other Second
Secured Lender the Trigger Notice given by the Exercising Lender.
8.5.2 The Option Holder shall notify each Second Secured Lender of the
day (the "PROPOSED TRIGGER NOTICE DELIVERY DATE") on which it
will give that Trigger Notice to the Option Grantor(s) (which day
shall be not less than 15 and not more than 20 Business Days
after the date of so notifying the Second Secured Lenders, or
such other period as all the Second Secured Lenders agree).
- 12 -
8.5.3 Any other Second Secured Lender may (subject to the term of this
Agreement) give a Trigger Notice to the Option Holder no later
than 7 Business Days before the Proposed Trigger Notice Delivery
Date.
8.5.4 A Second Secured Lender may revoke a Trigger Notice given by it
at any time more than 5 Business Days before the proposed Trigger
Notice Delivery Date. On or after the day 5 Business Days before
the proposed Trigger Notice Delivery Date a Second Secured Lender
may only revoke a Trigger Notice with the consent of all the
other Second Secured Lenders who have given Trigger Notices to be
passed on to the Option Grantor(s) on that Trigger Notice
Delivery Date.
8.5.5 The Option Holder shall promptly notify the other Second Secured
Lenders upon any Second Secured Lender revoking a Trigger Notice.
Such other Second Secured Lenders may revoke Trigger Notices
given by them at any time more than 3 Business Days before the
proposed Trigger Notice Delivery Date (or on such later date as
may be agreed by all Second Secured Lenders).
8.5.6 On the Proposed Trigger Notice Delivery Date, the Option Holder
shall pass on to the Option Grantor(s) each Trigger Notice so
delivered to it and not revoked by the Exercising Lender and any
other Second Secured Lender.
8.6 A Second Secured Lender may not give a Trigger Notice to the Option
Holder, and the Option Holder is not required to give a Trigger Notice to
the Option Grantor(s), if and to the extent that:
8.6.1 the aggregate nominal value of all the Transferred Share(s) which
have been transferred pursuant to each exercise of the Share
Option at the request of that Second Secured Lender exceeds (or
would on completion of such exercise and transfer exceed) its
Option Participation Proportion (calculated pursuant to Clause
8.7) of 65% of the aggregate nominal value of the issued share
capital of PMG at that time; or
8.6.2 on any Exercise Date the aggregate amount of the Converted Loan
Amount for each exercise of the Share Option at the request of
that Second Secured Lender on that date would exceed (or would on
completion of such exercise exceed) the total amount of the share
of that Second Secured Lender in the Second Secured Outstandings
on that date.
8.7 The Option Participation Proportion of a Second Secured Lender at any time
shall be the amount (expressed as a percentage) calculated by applying the
following formula:
Option Participation Proportion = Initial Participation PLUS
Additional Participation LESS Transferred Participation
Where:
INITIAL PARTICIPATION means the amount (expressed as a percentage) of
participation in this option identified for that Second Secured Lender in
Schedule 1.
ADDITIONAL PARTICIPATION means the amount (expressed as a percentage) of
participation in this option transferred to that Second Secured Lender in
accordance with this Agreement.
- 13 -
TRANSFERRED PARTICIPATION means the amount (expressed as a percentage) of
participation in this option transferred by that Second Secured Lender to
another person in accordance with this Agreement.
8.8 After a Second Secured Lender has given a Trigger Notice to the Option
Holder (and the Share Option has been exercised as a result) that Second
Secured Lender may no longer transfer its participation in this option to
the extent so utilised.
8.9 Neither the Option Holder nor any Second Secured Lender shall be liable to
any other Second Secured Lender for any cost, loss or liability suffered
by that other Second Secured Lender as a result of giving any Trigger
Notice or of any exercise of the Share Option, in each case, in accordance
with this Agreement.
9 ASSIGNMENT AND TRANSFER OF THIS AGREEMENT
9.1 The Option Holder may transfer its rights and obligations under this
Agreement by way of assumption of contract (VERTRAGSUBERNAHME) to any
affiliate of the Option Holder or to any Second Secured Lender or (with
the consent of the Second Secured Lenders) to any third party. PAG, PMG
and each Option Grantor irrevocably grants its respective approval for any
such transfer, regardless to whom the rights and obligations under this
Agreement are transferred. For the avoidance of doubts, the rights and
obligations under the Option Agreement may only be transferred together
and the Transferee should be deemed for the purposes of this Agreement
successor to all rights and duties of the Option Holder. However, if any,
the right to consent to share transfers pursuant to the Articles of
Association of PMG amended pursuant to Clause 6.1.5 shall rest with X.X.
Xxxxxx Europe Limited, that shall act on the instruction of the new Option
Holder. If X.X. Xxxxxx ceases to exist and its rights under the Articles
of Association are not assumed automatically by its legal successor, PAG
agrees to amend the Articles of Association of PMG to state the person to
whom this right of X.X. Xxxxxx will have been transferred.
9.2 The Option Holder shall notify each Second Secured Lender, each Option
Grantor and PMG of any such transfer pursuant to Clause 9.1 within 10
Business Days after such transfer becoming effective.
9.3 PAG and PMG shall not be entitled to assign all or any parts of their
rights and obligations under this Agreement.
9.4 Each Second Secured Lender (each a "TRANSFEROR") may transfer its rights
and obligations hereunder by way of assumption of contract
(Vertragsubernahme) in whole or in part to a third party (the
"TRANSFEREE"). PAG, PMG and each Option Grantor irrevocably grant their
respective approval for any such transfer, regardless of to whom the
rights and obligations under this Agreement will be transferred. For the
avoidance of doubt, the rights and obligations under this Agreement may
only be transferred together. The Transferor shall notify the Option
Holder of such transfer within 10 Business Days after such transfer became
effective. Any such transfer will be effected by way of a duly executed
transfer certificate (the "TRANSFER CERTIFICATE") attached hereto as
Schedule 4. Each such transfer will identify (for the purpose of Clause
8.7) the amount of the Transferor's participation in the Share Option
which is being transferred to the Transferee. A Second Secured LenDER
shall (and may only) transfer its participation in the Share Option at the
same time and in the same proportion as it transfers its participation in
the Second Secured Outstandings.
- 14 -
9.5 No Second Secured Lender may give a Trigger Notice requesting a transfer
of PMG Share(s) to a Transferee unless that Transferee is (or will, on or
before acquiring PMG Share(s), accede to this Agreement as) an Option
Grantor.
9.6 No Option Grantor (during the period until the earlier of (i) the exercise
of the Share Option in full and (ii) the end of the Exercise Period) may
or shall transfer any PMG Share(s) to any person, (whether pursuant to
this Agreement or otherwise) unless such person is (or will, before
acquiring the PMG Share(s) accede to this Agreement as) an Option Grantor.
10 SHAREHOLDERS' APPROVAL
Unless the parties agree otherwise, this Agreement shall not become
effective until it has been approved by the shareholders' meeting of PAG
and the Option Holder has confirmed that the approval by shareholders
meeting is in form and substance satisfactory to the Option Holder. This
confirmation shall be made not later than 6 weeks after the shareholders'
meeting, and if not been made within this period deemed to be finally not
given.
11 MISCELLANEOUS
11.1 PAG may, at any time before the commencement of the Exercise Period,
request that the Second Secured Lenders agree to cancel the Share Option
granted under this Agreement and to replace it with an equivalent option
to acquire (or direct the transfer of) shares in PAG. The Second Secured
Lenders agree to consider any such request in good faith, but any such
replacement arrangement would require the consent of all the Second
Secured Lenders, each acting in its absolute discretion.
11.2 All costs and expenses (including legal and notarial fees, taxes thereon
and travel expenses) reasonably incurred by the Option Holder, the Second
Secured Lenders or any Option Grantor in connection with:
11.2.1 the preparation, negotiation, printing, execution of this
Agreement and any other document referred to in it,
11.2.2 any transfer of any portion of the PMG Share(s) on exercise of
the Share Option but only to the extent that such costs and
expenses
(i) relate to the transfer of shares by PAG; and
(ii) do not exceed the costs and expenses of 1 exercise of the
Share Option by each of the Second Secured Lenders per
year; and
(iii) do not occur with respect to the three legal opinions to be
provided pursuant to Clause 8.3 and do not constitute legal
fees incurred in connection with the exercise of the Share
Option,
shall be paid by PAG promptly on demand whether or not this Agreement is
signed. The parties will consult in good faith to reduce such costs and
expenses to the extent legally practicable. PAG shall not be liable for
any costs in connection with the transfer of the Share Option according to
Clause 9.4 and the transfer of the
Share Option Agreement according to
Clause 9.1.
11.3 Neither the Option Holder nor any Second Secured Lender shall be liable
for any loss or damage suffered by PAG, PMG or any Option Grantor except
for any loss or damage which are suffered as a result of gross negligence
or wilful misconduct of the Option Holder, in which case the Option Holder
shall be solely liable for any such loss or damage.
- 15 -
11.4 Obligations and Payments
11.4.1 Except as otherwise specifically provided in this Agreement, in
the event that one of the parties to this Agreement is in default
with payments under this Agreement, it shall pay default interest
at a rate per annum equal to Basiszinssatz plus 2% Interest shall
be compounded quarterly and shall be calculated on the basis of
actual days elapsed divided by 365. The right to claim further
damages, if any, shall remain unaffected.
11.4.2 PAG and PMG are jointly and severally liable for each other's
obligations under this Agreement.
11.4.3 Any rights of retention of PAG or PMG are excluded.
11.5 Agreement, Amendments, Notices
11.5.1 This Agreement constitutes the full understanding of the parties
and the complete and exclusive statement of the terms and
conditions of the agreement relating to the subject matter hereof
and supersedes any and all prior agreements, whether written or
oral, that may exist between the parties with respect hereto. The
headings in this Agreement are only inserted for convenience and
the purpose of easier orientation and are of no consequences for
the contents and the interpretation of this Agreement.
11.5.2 Each of the parties shall execute and deliver all such further
documents and agreements and do such further acts as are
reasonably required hereby and are not inconsistent with any
other provisions of this Agreement.
11.5.3 Amendments and supplements to or assignments of this Agreement
(including the Schedules) shall only be valid if agreed in
writing, and must be notarised if required by law. This also
applies to amendments, supplements or a cancellation of this
provision.
11.5.4 Any notices or other communication under or in connection with
this Agreement shall be made in writing and must be either handed
over personally or sent by registered letter or telecopy to the
addresses specified at the beginning of this Agreement or to any
other addresses notified by the parties in writing at a later
point of time and:
(i) If to PAG
Attn: Xxxx Xxxxxxxx
address: XxxxxxxxxXx 00, 00000 Xxxxx.
fax: x00 (0000) 0000 000
with a copy to
Xxxxx & XxXxxxxx Xxxxx Amereller Xxxxx
Attn. Dr. Xxxxxxx Deilmann
Xxxxx Xxxxxxx 0, 00000 Xxxxxxxxxx.
fax: x00 (000) 00000-000
(ii) If to PMG
Attn: Frau Xxxx Xxxx
- 16 -
address: XxxxxxxxxXx 00, 00000 Xxxxx.
fax: x00 (0000) 0000 000
with a copy to Xxxxx & XxXxxxxx Xxxxx Amereller Xxxxx
Attn. Dr. Xxxxxxx Deilmann
Xxxxx Xxxxxxx 0, 00000 Xxxxxxxxxx.
fax: x00 (000) 00000-000
(iii) If to Option Holder
Attn: Xxxxx Xxxxxx
address: 000 Xxxxxx Xxxx, Xxxxxx XX0X 0XX
fax: x00 (00) 0000 0000
(iv) If to any Second Secured Lender or Option Grantor, then as
notified in writing to the Option Holder from time to time.
11.6 No failure to exercise, nor any delay in exercising, on the part of the
Option Holder or any Second Secured Lender, any option right or remedy
under this Agreement shall operate as a waiver thereof, nor shall a single
or a partial exercise of any right or remedy prevent any further or other
exercise thereof or the exercise of any other right or remedy. The rights
and remedies hereunder are cumulative and not exclusive of any rights or
remedies provided by law, except for provided expressly otherwise.
11.7 The Parties agree to keep confidential all information obtained in
connection with this Agreement and its performance (except as provided
elsewhere in this Agreement) as long as and to the extent that it has not
been made known to the public without fault of the parties. Nothing in
this Clause shall be understood to prevent
11.7.1 any Party from filing a claim against the other Party on the
basis of this Agreement and information obtained in connection
with this Agreement; and
11.7.2 any Party to disclose the content of this Agreement as required
by applicable law, or the rules of any stock exchange or
governmental or other regulatory authority, in particular to
disclose this Agreement to PAG's shareholder meeting
11.8 If a provision of this Agreement should be or become fully or partly
invalid or not contain a necessary regulation, the validity of the other
provisions of this Agreement will not be affected thereby and, therefore,
shall remain in force. The invalid provision shall be replaced and the gap
shall be filled by a legally valid arrangement that corresponds as closely
as possible to the intention of the parties or what would have been the
intention of the parties according to the aim, purpose and economic effect
of this Agreement, if they had been aware of the gap.
11.9 If there would be a change in the applicable tax laws, the Parties will in
good faith consider to adjust the terms and conditions of this Agreement
to achieve a most efficient tax treatment, but no Party shall be obliged
to agree on any amendment or modification of this Agreement.
11.10 This Agreement shall be governed by, and construed in accordance with the
law of the Federal Republic of Germany. The place of jurisdiction for all
Parties hereunder shall be Frankfurt am Main, Germany.
- 17 -
SCHEDULE 1
ORIGINAL SECOND SECURED LENDERS
NAME INITIAL PARTICIPATION
----
X.X. Xxxxxx Xxxxx Bank 40%
Barclays Bank PLC 15%
Dresdner Bank London Branch 15%
Xxxxxx Commercial Paper Inc. 15%
The Toronto-Dominion Bank 15%
- 18 -
SCHEDULE 2
FORM OF DEED OF TRANSFER
ROLL OF DEEDS NO.__________
DONE
AT __________, ON THIS __ DAY OF _______ 200_
Before me, the undersigned Notary
[...]
in the district of the [COURT] in [...]
with the office in [...]
There appeared today:
1. [...], not acting in his own name but in the name of
[
PRIMACOM AG, Mainz, registered in the Commercial Register of the Lower
Court of Mainz in section B under HRB no. 7164, address Xxxxxxxxxxxx 00,
00000 Xxxxx] [OR: DETAILS OF OTHER OPTION GRANTOR]
(hereinafter referred to as: "THE TRANSFEROR")
by virtue of a written power of attorney dated [...], the original of
which has been presented at notarization, a copy of which is attached to
this deed and I, the Notary hereby certify that this copy is a true and
complete copy of the original. and
2. [...], not acting in his own name but in the name of
[...]
(hereinafter referred to as: "THE TRANSFEREE")
by virtue of a written power of attorney dated [...], the original of
which has been presented at notarization, a copy of which is attached to
this deed and I, the Notary hereby certify that this copy is a true and
complete copy of the original.
The appeared persons identified themselves by their identity cards to the
satisfaction of the Notary.
- 19 -
The Notary explained the potential ban on his participation according to sec. 3
sub-sec. 1 no. 7 BeurkG (NOTARIZATION ACT). The persons appearing answered in
the negative the Notary's question of whether grounds for a ban on his
participation in the meaning that provision exist.
The appeared persons asked the notarization to be done in English. The Notary
who is fluent in the English language ascertained that the appeared persons have
sufficient command of the English language.
Now thereupon, the persons appearing requested the notarization of the
following:
TRANSFER OF SHARES.
I.
RECITALS
1. PRIMACOM MANAGEMENT GmbH is registered in the Commercial Register of the
Municipal Court of Mainz in section B under HRB no. 7454 with a share
capital of EUR 90,000 (the "COMPANY").
2. The Transferor holds one share in PMG in the nominal amount of EUR [...]
(the "EXISTING SHARE").
3. On [...] the Transferor and X.X. Xxxxxx Europe Limited (the "OPTION
HOLDER") are parties to an agreement (the "
SHARE OPTION AGREEMENT"), under
which the Transferor granted an option to the Option Holder to acquire up
to 65% of the share capital of PMG (the "OPTION"). Upon exercise of the
Option, the Transferor is obliged to transfer a share in PMG, as
determined by an notice of exercise of the Share Option under the
Share
Option Agreement (the "TRIGGER NOTICE"), to a transferee as set out in the
Trigger Notice.
4. The Option Holder exercised the Option on [...] in the nominal amount of
EUR [...]. The Trigger Notice dated [...], sets out that the Transferor is
obliged to transfer a share in PMG in the nominal amount of EUR [...] to
the Transferee.
II.
TRANSFER OF A SHARE
1. The Transferor hereby divides the Existing Share into a share with a
nominal value of EUR [...] (the "NEW SHARE") and a share with a nominal
value of EUR [...].
2. The Transferor hereby transfers the New Share to the Transferee. The
Transferee accepts the transfer of the New Share. The New Share is
assigned together with all rights and duties, in particular the right to
profits of the current fiscal year of PMG and all not distributed profits.
- 20 -
3. The consent of PMG pursuant to Section 17 of the Limited Liability Company
Act (GmbHG) is attached hereto as Exhibit A. The Transferee shall inform
PMG about the aforementioned share transfer by submitting a certified copy
of this deed.
4. The aforementioned transfer is made in fulfillment of the obligations of
the Transferor under the
Share Option Agreement.
III.
COSTS, MISCELLANEOUS
1. [The costs of this deed shall be borne by the Transferor.] [DELETE IF
TRANSFEROR IS NOT PAG:]- The Notary advised the appeared persons that the
parties hereof - regardless of the provisions in this deed - are liable
for the costs thereof.
2. The Notary advised the appeared persons that the managing directors of PMG
have to submit a list of shareholders to the Commercial Register that
reflects the new shareholding in PMG.
3. The Notary advised the appeared persons that he is obliged pursuant to
sec. 54 EStDV (Income-Tax Implementation Ordinance) to submit one copy of
this deed to the tax authorities.
4. This Agreement shall be governed by German law.
This deed was read aloud to the persons appearing in the presence of the Notary,
approved by them and signed by them and the Notary in their own hand as follows:
- 21 -
SCHEDULE 3
FORM OF TRIGGER NOTICE
TRIGGER NOTICE
PART I
Whereas, X.X. Xxxxxx Europe Limited (the "OPTION HOLDER") and certain banks (the
"SECOND SECURED LENDERS") have entered into an agreement (the "
SHARE OPTION
AGREEMENT") with
PrimaCom AG ("PAG") dated on or about 25 March 2002 under which
PAG and the other Option Grantors grant an option to the Option Holder, acting
as fiduciary (TREUHANDER) for the Second Secured Lenders, to acquire (or direct
the transfer of) up to 65% of the share capital of PrimaCom Management GmbH (the
"COMPANY") upon exercise by the Option Holder according to Section 3 of the
Share Option Agreement (the "SHARE OPTION").
1. We, the undersigned Second Secured Lender, hereby instruct the Option
Holder according to Section 8 of the
Share Option Agreement to exercise
the Share Option pursuant to Section 3 of the
Share Option Agreement.
2. An amount of EUR ______ of our Second Secured Outstandings (the "CONVERTED
LOAN AMOUNT") shall be converted into shares in PMG with an aggregate
nominal amount of EUR _______ (the "EXERCISED SHARES").
3. The Exercised Share(s) shall be transferred to:
Name: ___________________________
Address: ___________________________
Representative: ___________________________
4. The Converted Loan Amount will be set off against our repayment claim
under the Second Secured Facility.
__________, the ___ day of __________ 200_
SECOND SECURED LENDER
--------------------
[...]
--------------------------------------------------------------------------------
PART II
Pursuant to the instruction above, we, the undersigned Option Holder hereby
declare that we exercise the Share Option pursuant to Section 3 of the Share
Option Agreement.
2. The nominal value of the share(s) in the Company to be transferred to the
Transferee identified in paragraph 3 of Part I above by each Option
Grantor is as follows:
[Option Grantor] [EUR..........]
- 22 -
[Option Grantor] [EUR..........]
__________, the ___ day of __________ 200_
OPTION HOLDER
--------------------
[...]
- 23 -
SCHEDULE 4
FORM OF TRANSFER CERTIFICATE
[REQUIRES NOTARISATION]
This Agreement is dated [ ] and made between:
(1) [Second Secured Lender] ("Transferor"), and
(2) [Transferee]
PREAMBLE
(A) Pursuant to a share option agreement dated [ ] (the "SHARE OPTION
AGREEMENT") between
PrimaCom AG, PrimaCom Management GmbH, X.X. Xxxxxx
Europe Limited (in its capacity as option holder (the "OPTION HOLDER"))
and certain financial institutions as Second Secured Lenders, including
[INSERT NAME OF TRANSFEROR], a copy of which is attached to this transfer
certificate,
PrimaCom AG has agreed, under certain circumstances, to
transfer a certain amount of shares it holds in its subsidiary, PrimaCom
Management GmbH, to the Option Holder or a third party named by the Option
Holder.
(B) The Transferor wishes to transfer its rights and obligations under the
Share Option Agreement to the Transferee by way of this agreement.
Now it is agreed as follows:
1 ASSIGNMENT/TRANSFER
The Transferor hereby assigns to the Transferee all of its rights and
claims (present and future) under the Share Option Agreement. Furthermore,
the Transferor transfers all of its present and future obligations under
the Share Option Agreement to the Transferee. The Transferee accepts such
assignment and transfer.
Such transfer and assignment is equal to [*] % (the "TRANSFERRED
PARTICIPATION") in the share option granted pursuant to the Share Option
Agreement.
2 ACCESSION TO SHARE OPTION AGREEMENT
The parties hereto agree, that the Transferee shall be bound by the terms
of the Share Option Agreement and will become party thereto as a Second
Secured Lender.
3 GOVERNING LAW
This Transfer Certificate will be governed by and construed in accordance
with German law.
Signatures:
- 24 -
SCHEDULE 5
ARTICLES OF ASSOCIATION OF PMG
TRANSLATION FOR CONVENIENCE PURPOSE ONLY
GESELLSCHAFTSVERTRAG ARTICLES OF ASSOCIATION
SECTION 1 SECTION 1
FIRMA UND SITZ NAME AND REGISTERED SEAT
1.1 Die Firma der Gesellschaft lautet 1.1 The name of the Company is
PRIMACOM MANAGEMENT GmbH
PRIMACOM MANAGEMENT GmbH
1.2 Die Gesellschaft hat ihren Sitz ist Mainz.
1.2 The registered seat of the Company is Mainz.
SECTION 2 SECTION 2
GEGENSTAND DER GESELLSCHAFT OBJECT OF THE COMPANY
2.1 Gegenstand des Unternehmens ist: 2.1 The object of the Company is
2.1.1 Management von Kabelvisions-, Kommunikations- 2.1.1 the management of cable vision-,
und Informationssystemen, insbesondere von communication- and information-systems, in
Breitbandkommunikationsnetzen zur Verbreitung particular broad-band communication networks
von Horfunk- und Fernsehprogrammen; for the distribution of radio- and
television programs;
2.1.2 Wahrnehmung von Beratungsaufgaben im 2.1.2 to take consulting mandates in the area of
Kommunikationsbereich sowie auf dem Gebiet communication and in the area of receiving
der Empfangs- und Sendetechnologie, and broadcasting technology, including
einschlieBlich der Projektierung der projecting of setting up and operating of
Errichtung und des Betriebs von Anlagen fur information and communication facilities;
Information und Kommunikation;
2.1.3 Erlangung von Betriebsrechten fur 2.1.3 obtaining licenses for operating information
Kommunikations- und Informationssy- and communication systems.
- 25 -
steme.
2.2 Die Gesellschaft kann alle Geschafte betreiben, 2.2 The Company can undertake all transactions which
die dem Gesellschaftszweck unmittelbar zu dienen would serve the object of the Company directly.
geeignet sind. Sie kann im In- und Ausland The Company may establish branches domestically
Zweigniederlassungen errichten sowie sich an and abroad and participate in companies
gleichartigen oder ahnlichen Unternehmen im In- domestically and abroad with the same or a
und Ausland beteiligen. similar object.
SECTION 3 SECTION 3
STAMMKAPITAL SHARE CAPITAL
3.1 Das Stammkapital der Gesellschaft betragt EUR 3.1 The share capital of the Company is EUR 90,000.00
90.000,-- (in Worten Euro neunzigtausend). (in words Euro ninety- thousand).
3.2 Einzelne volleingezahlte Geschaftsanteile konnen 3.2 Individual fully paid in shares may be merged by
durch Gesellschafterbeschluss mit einfacher a shareholders' resolution with a simple majority
Mehrheit der Stimmen und Zustimmung des of the votes and consent of the concerned
betroffenen Gesellschafters vereinigt werden. shareholder.
SECTION 4 SECTION 4
GESCHAFTSJAHR FISCAL YEAR
4.1 Das Geschaftsjahr der Gesellschaft ist das 4.1 The fiscal year of the Company is the calendar
Kalenderjahr. year.
4.2 Das erste Geschaftsjahr beginnt spatestens mit dem 4.2 The first fiscal year shall begin at latest with
Tage der Eintragung der Gesellschaft in das the registration of the Company in the Commercial
Handelsregister und endet am darauffolgenden 31. Register and shall end on the following December
Dezember. 31.
SECTION 5 SECTION 5
VERTRETUNG UND GESCHAFTSFUHRUNG REPRESENTATION AND MANAGEMENT
5.1 Die Gesellschaft hat drei Geschaftsfuhrer. Je 30% 5.1 The Company has three managing directors. Each
der Beteiligung am Stammkapital der Gesellschaft 30% shareholdering in the Company grants the
gewahren das Recht zur Bestellung eines right to appoint one Managing Director. This
Geschaftsfuhrers. Dieses Recht steht auch also applies to a group of shareholders holding
Gesellschaftern zu die together 30 or more
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zusammen 30 oder mehr Prozent am Stammkapital percent of the shares in the Company. Each
der Gesellschaft halten. Jeder Gesellschafter shareholder or shareholder group may at any
bzw. jeder Gesellschaftergruppe kann den von time and without giving any reason dismiss
ihr bestellten Geschaftsfuhrer jederzeit und the managing director nominated by it and
ohne Grunde anzugeben abberufen und einen nominate another managing director.
neuen Geschaftsfuhrer bestimmen.
5.2 Gesellschafter oder Gesellschaftergruppen, die 5.2 Each shareholder or each group of shareholders
gemaB Ziffer 5.1 Geschaftsfuhrer bestellt haben, having appointed a Managing Director according to
konnen jeweils die Abberufung der anderen, nicht para. 5.1 may demand for a dismissal of the other
von ihnen bestellten chaftsfuhrer verlangen, wenn managing directors not having been appointed by
hierfur ein wichtiger Xxxxx vorliegt, der in der them, but only for reason which might be in the
Person oder dem Verhalten des Geschaftsfuhrers person of the managing director or in his/her
liegt, insbesondere, (aber nicht hierauf management of the Company, in particular (but not
beschrankt), wenn ein Geschaftsfuhrer gegen limited to), if the Managing Director violates
wesentliche Pflichten aus den Gesetzen, dem material obligations under the applicable laws,
Gesellschaftsvertag, einer von den Gesellschaftern this articles of association, any rules of
gegebenenfalls zu beschlieBenden Geschaftsordnung procedure (GESCHAFTSORDNUNG) adopted by the
und den Beschlussen und Weisungen der shareholders, and the resolutions and directions
Gesellschafterversammlung verstoBt. of the shareholders meeting.
5.3 Die Gesellschaft wird vertreten durch zwei 5.3 The Company shall be represented by two Managing
Geschaftsfuhrer gemeinsam oder durch einen Directors acting jointly or by one Managing
Geschaftsfuhrer gemeinsam mit einem Prokuristen. Director acting together with a "Procurist".
5.4 Die Gesellschafterversammlung kann die Vertretung 5.4 The shareholders' meeting may resolve by a 75%
mit 75% der Stimmen abweichend regeln, majority of the votes a different representation
insbesondere Einzelvertretung anordnen und von den rules, in particular authorize managing directors
Beschrankungen des Section 181 des Burgerlichen to represent the Company individually and release
Gesetzbuches befreien. from the restrictions of Section 181 German Civil
Code.
5.5 Die Geschaftsfuhrer uben ihr Amt in 5.5 The Managing Directors shall in exercising their
Ubereinstimmung mit dem Gesetz, diesem office complying with the law, this articles of
Gesellschaftsvertrag, einer von den association, any rules of procedure adopted by
Gesellschaftern gegebenenfalls zu beschlieBenden the shareholders, and the resolutions and
Geschaftsordnung und den Beschlussen und Weisungen directions of the shareholders meeting.
der Gesellschafterversammlung aus.
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5.6 Die Geschaftsfuhrer bedurfen fur Rechtsgeschafte 5.6 The Managing Directors need the prior approval of
und MaBnahmen, die uber den gewohnlichen the shareholders meeting by simple majority for
Geschaftsbetrieb hinausgehen, und / oder die nicht legal transactions and measures which are not in
wie unter fremden Dritten abgeschlossen werden the ordinary course of business and/ or which are
bzw. keine marktubliche Gegenleistung enthalten, not entered into an arms' length basis (i.e. do
der vorherigen Genehmigung der not provide for a consideration as usual on the
Gesellschafterversammlung mit einfacher Mehrheit. market). This applies in particular to the
Dies gilt insbesondere fur die nachfolgenden following measures and legal transactions:
MaBnahmen und Rechtsgeschafte:
5.6.1 Eroffnung, SchlieBung, Verlegung oder 5.6.1 the opening, closing, relocation and sale of
VerauBerung von Betriebsstatten, die business sites, the setting up or
Errichtung oder Aufgabe von Zweigniederlassungen abandonment of branch offices and the
und die Aufnahme eines neuen oder starting of a business line or giving up an
die Aufgabe eines bestehenden existing business line of the company,
Geschaftszweiges der Gesellschaft;
5.6.2 jede Form der Eingehung oder Beendigung einer 5.6.2 any kind of entering into or ending of a
Beteiligung an anderen Gesellschaften participation in other companies as well as
sowie die Ausubung von Gesellschafterrechten in the exercise of shareholder rights in such
solchen Tochtergesellschaften; subsidiaries;
5.6.3 Erwerb, die VerauBerung oder Belastung von 5.6.3 the acquisition, sale or encumbering of real
Grundstucken und grundstucksgleichen Rechten; estate and real estate like rights; the
der Erwerb einschlieBlich des Mietkaufs, die acquisition including the hire-purchase, the
VerauBerung sowie die Verfugung in sonstiger sale and disposal otherwise of tangible
Xxxxx von bzw. uber Wirtschaftsguter des assets insofar that the value in the
beweglichen Anlagevermogens, soweit der Xxxx individual case or within a business year as
im Einzelfall oder innerhalb eines an aggregate exceeds EUR 2,000,000 or the
Geschaftsjahres insgesamt EUR 2.000.000 Company has as a result an obligation to the
ubersteigt oder daraus eine Verpflichtung der same extent.
Gesellschaft in xxxxxxxx Hohe entsteht;
5.6.4 Abschluss von Leasing-, Miet- und 5.6.4 the conclusion of leasing, rental and
Pachtvertragen sowie sonstiger tenancy agreements as well as any kind of
Dauerschuldverhaltnisse, mit denen eine other long term obligations, associated with
Gesamtverpflichtung von mehr als an aggregate liability of more
- 28 -
EUR 500.000 pro Geschaftsjahr verbunden ist than EUR 500,000 per business year
5.6.5 der AbschluB, die Beendigung oder Anderung 5.6.5 the conclusion, termination or changing of
von fur den Geschaftsbetrieb der Gesellschaft agreements material for the business
wesentlichen Vertragen; operations of the company;
5.6.6 Eingehung und Beendigung von 5.6.6 the entering into and termination of any
Beschaftigungsverhaltnissen einschlieBlich employment-contracts, including consultancy
Beratervertrage, sofern die Jahresleistung agreements, to the extent that the annual
einschlieBlich Nebenleistungen EUR 500.000 outlay inclusive fringe benefits exceeds EUR
(brutto) ubersteigt sowie die Erhohung der 500.000 (gross) as well as the increase in
Vergutungen bei solchen the remuneration for such
Beschaftigungsverhaltnissen; employment-contracts;
5.6.7 Aufnahme von Krediten oder die Eingehung 5.6.7 the taking of loans or other liabilities,
einer Verschuldung in sonstiger Xxxxx, including the assumption of surety ships or
einschlieBlich Ubernahme von Burgschaften guarantees; the alteration of such loan
oder Garantien, die Anderung von solchen agreements (with the exception of immaterial
Kreditvertragen (mit Ausnahme von changes in interest rates); the granting of
unwesentlichen Anderungen von Kreditzinsen); loans, including the granting of employee
die Gewahrung von Krediten, einschlieBlich loans;
der Gewahrung von Arbeitnehmerdarlehen;
5.6.8 Erteilung und Entgegennahme von Auftragen 5.6.8 the giving and acceptance of mandates
auBerhalb des gewohnlichen Geschaftsbetriebes; outside the normal course of business;
5.6.9 Erhebung von Klagen vor ordentlichen 5.6.9 the commencement of proceedings before a
Gerichten oder Schiedsgerichten oder das court of law or the arbitration courts or
Eintreten in Vergleichsverhandlungen mit the start of composition proceedings for
einen Gegenstandswert von mehr als matter in excess of EUR 500,000 with the
EUR 500.000 mit Ausnahme von exception of debt collections in the normal
Forderungseintreibungen im gewohnlichen course of business;
Geschaftsbetrieb;
5.6.10 die Gewahrung von Prokuren und 5.6.10 the granting of power of general commercial
Handlungsvollmacht representation power (PROKURA) and other
commercial representation
- 29 -
power (HANDLUNGSVOLLMACHT)
5.6.11 Abschluss von Vereinbarungen mit Glaubigern 5.6.11 the making of arrangements with creditors
der Gesellschaft, mit dem Ziel die eine for the purpose of avoiding insolvency or
Insolvenz, Auflosung oder Liquidation der the dissolution, liquidation or winding up
Gesellschaft oder einer ihrer of the Company or any of its Subsidiaries;
Tochtergesellschaften zu vermeiden;
5.6.12 die Aufstellung und Anderung samtlicher 5.6.12 setting up Business plans of the Company and
Geschaftsplane der Gesellschaft (Business any amendments thereto.
Plan)
5.6.13 alle sonstigen MaBnahmen, die die 5.6.13 all other measures, which the shareholders
Gesellschafter durch Gesellschafterbeschluss have declared through a shareholders
fur zustimmungspflichtig erklart haben. resolution as requiring consent.
5.7 Fur die folgenden Rechtsgeschafte und MaBnahmen 5.7 The Managing Directors need the prior approval of
bedurfen die Geschaftsfuhrer der vorherigen the shareholders meeting by 75% majority for the
Genehmigung der Gesellschafterversammlung mit 75% following legal transactions and measures:
Mehrheit:
5.7.1 Beantragung der Eroffnung eines 5.7.1 The filing of a petition for the
Insolvenzverfahrens, soweit die commencement of insolvency proceedings,
Geschaftsfuhrer nicht durch zwingende unless the managing directors are under a
gesetzliche Vorschriften hierzu gezwungen statutory obligation to make such filing;
sind;
5.7.2 Abschluss, Anderung oder Beendigung von 5.7.2 Entering into, modifying or termination of
Rechtsgeschaften oder MaBnahmen mit any transaction or agreement with a
Gesellschaftern oder mit verbundenen shareholder or any of its affiliates which
Unternehmen der Gesellschafter, die uber den are not in the ordinary course of business
gewohnlichen Geschaftsbetrieb hinausgehen or that are not entered into an arms' length
oder nicht wie unter fremden Dritten basis (i.e. do not provide for a
abgeschlossen werden bzw. keine marktubliche consideration as usual on the market.) and
Gegenleistung enthalten sowie der Abschluss, the entering into, modifying or termination
Anderung oder Beendigung von Vertragen, nach of contracts under which business and
denen Geschaftsbetriebs- und administration expenses of
PrimaCom AG are
Verwaltungsaufwendungen der
PrimaCom AG von reimbursed by the Company or its
der Gesellschaft und ihren subsidiaries provided always that such
Tochtergesellschaften erstattet wer- expenses do not exceed at any time an amount
of EUR 5,000,000 per year. Upon request of
- 30 -
den, vorausgesetzt, daB diese Aufwendungen zu
PrimaCom AG, which may be raised from time
xxxxxx Zeit einen Betrag von EUR 5.000.000 to time but in no event earlier than
pro Jahr ubersteigen. Auf Verlangen der beginning of the year 2010, the
PrimaCom AG, das von Zeit zu Zeit, aber nicht shareholders will review this limit of EUR
vor dem Jahr 2010 gestellt werden darf, 5,000,000 in order to amend the amount to
werden die Gesellschafter diese Begrenzung reflect a possible increase in the costs of
auf EUR 5.000.000 uberprufen mit dem Ziel, living since March 2002.
diesen Betrag entsprechend einer moglichen
Steigerung der Lebenshaltungskosten seit Marz
2002 anzupassen.
5.8 Soweit die Zustimmung zu einer MaBnahme oder 5.8 To the extent, that legal transactions and
einen Rechtsgeschaft nach diesem Gesellschaftsvertrag measures requires an approval by a majority of
der Mehrheit von 75% der Stimmen bedarf, bedarf 75% of the votes according to these Articles of
auch ein Gesellschafterbeschluss, der die Association, a resolution to instruct the
Geschaftsfuhrer anweist, ein solches managing directors to enter into such legal
Rechtsgeschaft oder eine solche MaBnahme transaction or carry out such measure, shall
vorzunehmen, der Mehrheit von 75% der Stimmen. require a majority of 75% of the votes as well.
5.9 Geschaftsfuhrer bedurfen zu MaBnahmen und 5.9 Managing Directors do not require the approval of
Rechtsgeschafte, zu denen die Gesellschaft nach the shareholders' meeting for legal transactions
den am 25. Marz 2002 geschlossenen and measures to which the Company is obliged by
Kreditvereinbarungen zwischen der PrimaCom AG, der the Loan Facility Agreements, entered into on or
Gesellschaft und deren Tochtergesellschaften about 25 March 2002 between PrimaCom AG, the
einerseits und zwei Gruppen xxx Xxxxxx jeweils Company and their subsidiaries on the one hand
unter der Fuhrung von u.a. X.X. Xxxxxx als Agent and two groups of banks, each with X.X. Xxxxxx
andererseits (Urkundsnummern [ ] des Notars / acting as agent on the other hand (notarial deed
der Notare [ ], Basel, verpflichtet ist, numbers [ ] of notary (ies) [ ], Basel.
nicht der Genehmigung der Instructions to Managing Directors by the
Gesellschafterversammlung. Weisungen der shareholders' meeting, that would lead to a
Gesellschafterversammlung, die zu einer Verletzung violation of the Company's obligations under such
der Verpflichtungen unter diesen Loan Facility Agreements, may only passed with a
Kreditvereinbarungen fuhren, konnen nur mit einer majority of 75% of the votes.
Mehrheit von 75% der Stimmen beschlossen werden.
XXXXXXX 0 XXXXXXX 0
- 00 -
XXXXXXXXXXXXXXXXXXXXXXXXX SHAREHOLDERS' MEETING
6.1 Jedes Jahr finden mindestens zwei ordentliche 6.1 Each year two ordinary shareholders' meetings
Gesellschafterversammlungen statt. Eine davon shall be held. One of the shareholders' meetings
findet in den ersten 6 Monaten des Geschaftsjahres shall be held within the first 6 months of the
statt. business year.
6.2 Die Gesellschafterversammlungen finden am Sitz der 6.2 Shareholders' meetings shall be held at the
Gesellschaft statt. Wenn samtliche Gesellschafter business seat of the Company. The shareholders'
zustimmen, kann die Gesellschafterversammlung an meeting may be held at any other place within the
jedem anderen Ort in der Bundesrepublik Federal Republic of Germany, if all shareholders
Deutschland stattfinden. agree.
6.3 Eine auBerordentliche Gesellschafterversammlung 6.3 An extraordinary shareholders meeting shall be
ist von dem Geschaftsfuhrer innerhalb von 2 Wochen called by the Managing Director within a period
einzuberufen, entweder wenn es das Interesse der of 2 weeks, if it is either in the interests of
Gesellschaft erfordert oder wenn ein oder mehrere the Company or demanded by one or several
Gesellschafter dies verlangen, die mit mindestens shareholders who participate in at least 10% of
10% des Stammkapitals an der Gesellschaft the share capital of the company.
beteiligt sind.
6.4 Die Gesellschafterversammlung ist von den 6.4 A shareholders meeting shall be called by the
Geschaftsfuhrern unter Angabe der Tagesordnung mit Managing Directors by registered mail with a
eingeschriebenen Brief mit einer Ladungsfrist von notice period of 3 weeks from dispatch of the
3 Wochen, beginnend mit dem Tag der Absendung der notice. The notice shall set forth the agenda of
Ladung, einzuberufen. Kommt der Geschaftsfuhrer the meeting. If the Managing Director does not
einem Verlangen gemaB Absatz 2 nicht binnen call such a meeting upon a demand in accordance
von 2 Wochen nach, so ist der entsprechende with sub-section 2 above within 2 weeks, the
Gesellschafter befugt, selbst eine respective shareholder shall be authorized to
Gesellschafterversammlung einzuberufen. call for such a shareholders' meeting himself.
6.5 Die Gesellschafterversammlung ist beschlussfahig, 6.5 The shareholders' meeting has a quorum if at
wenn mindestens 3/4 des Stammkapitals der least 3/4 of the share capital is represented. If
Gesellschaft vertreten ist. Ist eine the shareholders meeting does not have a quorum,
Gesellschafterversammlung nicht beschlussfahig, so a new shareholders' meeting shall be called
ist umgehend zu einer neuen without undue delay with a notice period of 3
Gesellschafterversammlung mit einer Ladungsfrist weeks, which will have a quorum regardless of the
von 3 Wochen einzuladen, die ohne Rucksicht auf share capital representation provided this was
die Hohe des vertretenen Stammkapitals indicated in the notice of meeting.
beschluss-
- 32 -
fahig ist, wenn hierauf in der Ladung
hingewiesen wurde.
6.6 Die Gesellschafterversammlung wahlt einen 6.6 The shareholders' meeting shall appoint a
Vorsitzenden, der die Versammlung leitet und die chairman, who shall chair the meeting and shall
hieruber jeweils anzufertigende Niederschrift sign the minutes recorded each time. Every
unterzeichnet. Jedem Gesellschafter ist eine shareholder shall be provided with a copy of the
Abschrift der Niederschrift zu ubersenden. minutes.
SECTION 7 SECTION 7
BESCHLUSSFASSUNG RESOLUTIONS
7.1 Die Beschlussfassung erfolgt in 7.1 Resolutions shall be passed at shareholders' meetings. If all
Gesellschafterversammlungen. Die shareholders agree in this procedure, resolutions may also be
Gesellschafter dem Verfahren zustimmen, im passed in a circulation process, in writing, by telex or by
Umlaufverfahren schriftlich, per Fernschreiber fax to the extent that such a procedure is
oder per Telefax gefasst werden, sofern ein permitted by law. The Managing Directors have to
solches Verfahren gesetzlich zulassig ist. In set a time limit for the submission of the
diesem Fall haben die Geschaftsfuhrer eine Xxxxx written votes, that should not be shorter than
fur den Eingang der Stimmen zu bestimmen, die tree banking days.
nicht kurzer als drei Bankarbeitstage sein soll.
7.2 Gesellschafterbeschlusse werden mit einfacher der 7.2 Shareholders' resolutions require a simple
Mehrheit der in der Gesellschafterversammlung majority of the votes attending at the meeting
vertretenen Stimmen gefasst, soweit nicht Gesetz provided these Articles of Association or the law
oder Gesellschaftsvertrag eine abweichende does not require a different majority. Each EUR
Mehrheit vorsehen. Je EUR 50 eines 50 of share capital is entitled to one vote.
Geschaftsanteils gewahren eine Stimme.
SECTION 8 SECTION 8
JAHRESABSCHLUSS, GEWINNVERWENDUNG ANNUAL ACCOUNTS, PROFIT DISTRIBUTION
8.1 Die Geschaftsfuhrer haben gemaB den gesetzlichen 8.1 The Managing Directors shall pursuant to the
Bestimmungen den Jahresabschluss samt Anhang sowie statutory provisions prepare within the first 3
einen Lagebericht in den ersten 3 Monaten des months of the following business year the annual
darauf folgenden Geschaftsjahres zu erstellen und accounts, including supplements and the
den Gesellschaftern unverzuglich zur Be- management report, and submit them without undue
delay to the shareholders for
- 33 -
schlussfassung vorzulegen. approval.
8.2 Die Gesellschafter stellen den Jahresabschluss 8.2 The shareholders shall approve the annual
fest und beschlieBen die Verwendung des accounts and resolve on the distribution of the
Ergebnisses mit einer Mehrheit von 75% der Stimmen. profits with a majority of 75% of the votes.
SECTION 9 SECTION 9
VERAUBERUNG VON GESCHAFTSANTEILEN DISPOSITION OF SHARES
Solange die XX Xxxxxx Europe Limited, der als Option To the extent that XX Xxxxxx Europe Limited, that has
Holder zugunsten verschiedener Banken ein vertragliches been granted in its capacity as Option Holder for the
Erwerbsrecht auf bis zu 65% des Stammkapitals der benefit of several banks an contractual option to
Gesellschaft eingeraumt wurde, dieses Erwerbsrecht acquire up to 65% of the share capital of the Company,
nicht vollstandig ausgeubt hat oder das Erwerbsrecht has not exercised that option in full or this options
nicht erloschen ist, bedarf jede VerauBerung oder has not expired, any sale or pledge or other kind of
Verpfandung oder sonstige Verfugung uber disposal or transfer of shares or parts thereof,
Geschaftsanteile oder Teile von solchen, einschlie- including the grant of a sub-participation and all
Blich die Einraumung einer Unterbeteiligung und legal transactions which constitute a third party
aller Verpflichtungsgeschafte, die ein Recht auf eine right of acquisition, requires the consent of JP
Verfugung begrunden, der Zustimmung der XX Xxxxxx Xxxxxx Europe Limited.
Europe Limited.
SECTION 10 SEC. 10
WETTBEWERB COMPETITION
Die Gesellschafter sind von einem Wettbewerbsverbot The shareholders are released from the prohibition
befreit, solange sie nicht Geschaftsfuhrer sind. Durch against competition, if they are not Managing
Gesellschafterbeschluss konnen auch Gesellschafter die Directors. The shareholders resolution may release
Geschaftsfuhrer sind vom Wettbewerbsverbot befreit shareholders who are managing directors from such
werden. Im Falle der Befreiung vom Wettbewerbsverbot competition prohibition. In the case of such a
ist zwischen der Gesellschaft und der befreiten Person release from the competition prohibition, there shall
eine xxxxx und eindeutige Aufgabenabgrenzung dergestalt be a clear and unambiguous allocation of the business
vorzunehmen, daBeine spatere willkurliche Zuordnung which does not allow any subsequent arbitrary
der Geschafte nicht mehr moglich ist. Die Befreiung vom assignment of business. There shall be no remuneration
Wettbewerbsverbot erfolgt unentgeltlich. for the release from the competition prohibition.
- 34 -
SECTION 11 SECTION 11
VEROFFENTLICHUNGEN ANNOUNCEMENTS
Die Veroffentlichungen der Gesellschaft erfolgen nur im Announcements of the Company shall be only made in the
Bundesanzeiger. Bundesanzeiger (Federal Gazette).
SECTION 12 SECTION 12
SCHLUSSBESTIMMUNGEN FINAL PROVISIONS
12.1 Falls einzelne Bestimmungen dieses Vertrages 12.1 If individual provisions of these Articles are
unwirksam sein sollten oder dieser Vertrag Xxxxxx invalid or if these Articles contain any gaps,
enthalt, wird dadurch die Wirksamkeit der ubrigen the validity of the other provisions shall not be
Bestimmungen nicht beruhrt. Die unwirksame affected thereby. The invalid provision shall be
Bestimmung ist durch Gesellschafterbeschluss durch replaced by the shareholders resolution with a
eine wirksame Bestimmung zu ersetzen, die dem mit valid provision which reflects the intended
der unwirksamen Bestimmung beabsichtigten economic purpose of the invalid provision as far
wirtschaftlichen Xxxxx moglichst nahe kommt. as possible. The same shall apply accordingly if
Entsprechendes gilt, wenn dieser Vertrag Xxxxxx those Articles contain any gaps.
enthalten sollte.
12.2 Die Rechtsverhaltnisse der Gesellschaft und der 12.2 The legal relationship of the Company and the
Gesellschafter im Rahmen der Gesellschaft sowie shareholders within the association as well as
ihre Rechtsverhaltnisse in diesem Rahmen between the shareholders shall be governed by the
zueinander unterliegen den Gesetzen der laws of the Federal Republic of Germany. The same
Bundesrepublik Deutschland. Entsprechendes gilt applies accordingly for the interpretation and
fur die Auslegung und die Durchfuhrung dieser enforcement of the legal relations.
Rechtsverhaltnisse.
12.3 Die durch die Grundung der Gesellschaft 12.3 The Company shall bear the formation costs, such
verursachten Notar-, Gerichts-, Behorden-, as notarisation fees, court fees, governmental
Veroffentlichungskosten tragt die Gesellschaft bis agency fees and publication costs of up to EUR
zu EURO 1.500,--. 1,500.00.
12.4 Im Falle unterschiedlicher Auslegung der 12.4 In case of any different interpretation of the
vorstehenden Texte in deutscher und in englischer text above in German and English language, the
Sprache, ist die deutsche Fassung maBgeblich. German wording shall be decisive.
**** ****
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