PROSPECTUS CB MezzCAP Limited Partnership EUR 137,800,000

Transcrição

PROSPECTUS
CB MezzCAP Limited Partnership
(a limited partnership established under the laws of Jersey)
EUR 137,800,000 Class A Floating Rate Notes due 2036
EUR 20,000,000 Class B Floating Rate Notes due 2036
EUR 10,500,000 Class C Floating Rate Notes due 2036
EUR 14,500,000 Class D Floating Rate Notes due 2036
EUR 7,700,000 Class E Floating Rate Notes due 2036
EUR 9,000,000 Class F 17% Notes due 2036
Class A Notes
Class B Notes
Class C Notes
Class D Notes
Class E Notes
Class F Notes
Interest Rate
3m EURIBOR +
0.28% p.a.
3m EURIBOR +
0.50% p.a.
3m EURIBOR +
0.70% p.a.
3m EURIBOR +
1.75% p.a.
3m EURIBOR +
3.90% p.a.
17%
Issue
Price
100%
Expected Ratings by
Moody's/S&P
Aaa/AAA
Scheduled
Maturity Date
25 January 2013
Legal Maturity
Date
25 October 2036
100%
Aa2/AA
25 January 2013
25 October 2036
100%
A2/A
25 January 2013
25 October 2036
100%
Baa2/BBB
25 January 2013
25 October 2036
100%
Ba1/BB
25 January 2013
25 October 2036
100%
not rated
25 January 2013
25 October 2036
CB MezzCAP Limited Partnership (acting through its general partner CB MezzCAP Limited) (the "Issuer") will
issue the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes, the Class E Notes and the Class F
Notes (together, the "Notes") at the issue price indicated above on 11 April 2006 (the "Issue Date").
Interest on the Notes will accrue on the outstanding principal amount of each of the Notes at a per annum rate
indicated in the table above. Interest will be payable on each Class of Notes quarterly in arrear in euro on the 25th
day of January, April, July and October of each year (subject to adjustment as specified herein for non-Business
Days) (each, a "Payment Date"), commencing in July 2006. The first Interest Accrual Period will commence on (and
include) the Issue Date and end on (but exclude) the first Payment Date. Each subsequent Interest Accrual Period will
commence on (and include) a Payment Date and end on (but exclude) the next following Payment Date. See "TERMS
AND CONDITIONS OF THE NOTES — Payments of Interest".
The Class A Notes are expected, on issue, to be assigned a "AAa" rating by Moody's Investors Service, Inc.
("Moody's") and a "AAA" rating by Standard and Poor's Rating Services, a division of The McGraw Hill
Companies, Inc. ("S&P", and together with Moody's, the "Rating Agencies"), the Class B Notes are expected, on
issue, to be assigned ratings of "Aa2" by Moody's and "AA" by S&P, the Class C Notes are expected, on issue, to be
assigned ratings of "A2" by Moody's and "A" by S&P, the Class D Notes are expected, on issue, to be assigned ratings
of "Baa2" by Moody's and "BBB" by S&P and the Class E Notes are expected, on issue, to be assigned ratings of
"Ba1" by Moody's and "BB" by S&P. It is a condition of the issue of the Notes that they receive these ratings. The
ratings by S&P reflect timely payment of interest and ultimate payment of principal on the Notes. The ratings by
Moody's address the expected loss posed to investors by the Legal Maturity Date. The Class F Notes will not be rated.
The Managers will purchase the Notes from the Issuer on the Issue Date and will offer the Notes, from time to time, in
negotiated transactions or otherwise at varying prices to be determined at the time of the sale. The Issuer will apply
the net proceeds from the issuance of the Notes towards the repayment of a bridge facility (the "Bridge Facility")
granted to the Issuer by Commerzbank Aktiengesellschaft pursuant to a bridge facility agreement dated 1 December
2005 (the "Bridge Facility Agreement") for the purpose of making payments to certain German small and medium
sized companies (the "Companies") under certain participation right agreements (the "Participation Right
Agreements" or the "Portfolio") against the receipt of certain participation rights ( Genussrechte, the "Participation
Rights").
The Issuer, its limited partner, its general partner and J.P. Morgan Corporate Trustee Services Limited (the
"Trustee") have entered into a trust agreement on 1 December 2005 (the "Trust Agreement") pursuant to which the
Issuer has granted to the Trustee for the benefit of the Noteholders and the other secured creditors of the Issuer a
security interest in the rights and claims of the Issuer arising under the Participation Right Agreements and under
certain of the transaction documents to which it is a party as well as the accounts of the Issuer. See "TRUST
AGREEMENT".
Application has been made to the Irish Financial Services Regulatory Authority (the "IFSRA"), as competent authority under
Directive 2003/71/EC, for the Prospectus to be approved. Application has been made to the Irish Stock Exchange for the
Notes to be admitted to the Official List and trading on its regulated market.
Lead Manager
COMMERZBANK
Co-Manager
FORTIS BANK
Arranger
COMMERZBANK
The date of this Prospectus is 20 April 2006.
Given the complexity of the Terms and Conditions of the Notes and the Transaction Documents, and the risks associated therewith, an
investment in the Notes is suitable only for experienced investors who understand and are in a position to evaluate such complexities and
risks.
For a discussion of certain significant factors affecting investments in the Notes, see "RISK FACTORS".
For the reference to the definitions of capitalised words and phrases appearing herein, see "INDEX OF DEFINED TERMS".
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Responsibility for the contents of this Prospectus. The Issuer accepts responsibility for the
information contained in this Prospectus with the exception of the information set out below in respect
of which responsibility is assumed by other parties.
The Trustee accepts responsibility for the information contained in the section entitled "The Trustee",
the Cash Administrator and the Account Bank accept responsibility for the information contained in
the section entitled "The Cash Administrator and the Account Bank", the Swap Counterparty accepts
responsibility for the information contained in the section entitled "The Swap Counterparty", the
Recovery Advisor accepts responsibility for the information contained in the section entitled "The
Recovery Advisor", the Financial Advisor accepts responsibility for the information contained in the
section entitled "The Financial Advisor", the Transaction Monitor accepts responsibility for the
information contained in the section entitled "The Transaction Monitor", the Tax Liquidity Facility
Provider accepts responsibility for the information contained in the section entitled "The Tax Liquidity
Facility Provider and each of the Companies accepts responsibility for the information contained in the
relevant company description set out in the section entitled "The Companies".
To the best of the knowledge and belief of the Issuer, the information contained in this Prospectus for
which it accepts responsibility is in accordance with the facts and does not omit anything likely to
affect the import of such information.
To the best of the knowledge and belief of the Trustee, the information contained in this Prospectus in
the section entitled "The Trustee" is in accordance with the facts and does not omit anything likely to
effect the import of such information.
To the best of the knowledge and belief of the Cash Administrator and the Account Bank, the
information contained in this Prospectus in the section entitled "The Cash Administrator and the
Account Bank" is in accordance with the facts and does not omit anything likely to effect the import of
such information.
To the best of the knowledge and belief of the Swap Counterparty, the information contained in this
Prospectus in the section entitled "The Swap Counterparty" is in accordance with the facts and does
not omit anything likely to effect the import of such information.
To the best of the knowledge and belief of the Recovery Advisor, the information contained in this
Prospectus in the section entitled "The Recovery Advisor" is in accordance with the facts and does not
omit anything likely to effect the import of such information.
To the best of the knowledge and belief of the Financial Advisor, the information contained in this
Prospectus in the section entitled "The Financial Advisor" is in accordance with the facts and does not
omit anything likely to effect the import of such information.
To the best of the knowledge and belief of the Transaction Monitor, the information contained in this
Prospectus in the section entitled "The Transaction Monitor" is in accordance with the facts and does
not omit anything likely to effect the import of such information.
To the best of the knowledge and belief of the Tax Liquidity Facility Provider, the information
contained in this Prospectus in the section entitled "The Tax Liquidity Facility Provider" is in
accordance with the facts and does not omit anything likely to effect the import of such information.
To the best of the knowledge and belief of each of the Companies, the information contained in this
Prospectus in the section entitled "The Companies" is, to the extent that the relevant Company's
description is concerned, in accordance with the facts and does not omit anything likely to effect the
import of such information.
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Where information has been sourced from the Trustee, the Cash Administrator, the Account Bank, the
Swap Counterparty, the Recovery Advisor, the Financial Advisor, the Transaction Monitor, the Tax
Liquidity Facility Provider and any of the Companies, such information has been accurately
reproduced and, as far as the Issuer is aware and is able to ascertain from such information provided
by the Trustee, the Cash Administrator, the Account Bank, the Swap Counterparty, the Recovery
Advisor, the Financial Advisor, the Transaction Monitor the Tax Liquidity Facility Provider and any
of the Companies (as applicable), no facts have been omitted which would render the reproduced
information inaccurate or misleading.
THE NOTES REPRESENT OBLIGATIONS OF THE ISSUER ONLY, AND DO NOT REPRESENT
OBLIGATIONS OF THE TRUSTEE, THE LEAD MANAGER AND ARRANGER, THE COMANAGER, THE CASH ADMINISTRATOR, THE ACCOUNT BANK, THE PAYING AGENTS,
THE INVESTMENT BOARD, THE FINANCIAL ADVISOR, THE RECOVERY ADVISOR, THE
TRANSACTION MONITOR, THE SWAP COUNTERPARTY OR ANY OF THEIR RESPECTIVE
AFFILIATES OR ANY AFFILIATE OF THE ISSUER OR ANY OTHER THIRD PERSON OR
ENTITY. THE NOTES WILL NOT BE INSURED OR GUARANTEED BY ANY
GOVERNMENTAL AGENCY OR INSTRUMENTALITY OR BY THE TRUSTEE, THE LEAD
MANAGER AND THE ARRANGER, THE CO-MANAGER, THE CASH ADMINISTRATOR, THE
ACCOUNT BANK, THE PRINCIPAL PAYING AGENT, THE INVESTMENT BOARD, THE
FINANCIAL ADVISOR, THE RECOVERY ADVISOR, THE TRANSACTION MONITOR, THE
SWAP COUNTERPARTY OR ANY OF THEIR RESPECTIVE AFFILIATES OR ANY AFFILIATE
OF THE ISSUER OR BY ANY OTHER PERSON OR ENTITY EXCEPT AS DESCRIBED
HEREIN.
The Notes will be governed by the laws of the Federal Republic of Germany ("Germany").
Each Class of the Notes will be initially represented by a temporary global note in bearer form (each, a
"Temporary Global Note") without interest coupons attached. The Temporary Global Note will be
exchangeable, as described herein for a permanent global note in bearer form (each, a "Permanent
Global Note", and together with the Temporary Global Notes, the "Global Notes" and each a "Global
Note") without interest coupons attached. The Temporary Global Notes will be exchangeable not
earlier than 40 days and not later than 180 days after the Issue Date, upon certification of non-U.S.
beneficial ownership, for interests in the Permanent Global Notes. The Notes will be deposited with
JPMorgan Chase Bank, N.A. (London Branch), as common depositary for Euroclear Bank S.A./N.V.,
as operator of the Euroclear Systems and Clearstream Banking, société anonyme. The Notes
represented by Global Notes may be transferred in book-entry form only. The Notes will be issued in
denominations of EUR 100,000. The Global Notes will not be exchangeable for definitive securities.
See "TERMS AND CONDITIONS OF THE NOTES – Denomination and Form".
In this Prospectus, references to "euro", "€" or "EUR" are to the single currency which was introduced
in Germany as of 1st January 1999.
THE NOTES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") AND INCLUDE
NOTES IN BEARER FORM THAT ARE SUBJECT TO U.S. TAX LAW REQUIREMENTS.
SUBJECT TO CERTAIN EXCEPTIONS, THE NOTES MAY NOT BE OFFERED, SOLD OR
DELIVERED, DIRECTLY OR INDIRECTLY, WITHIN THE UNITED STATES OR TO U.S.
PERSONS (AS DEFINED IN REGULATION S OF THE SECURITIES ACT).
The Jersey Financial Services Commission (the "Commission") has given and has not withdrawn its
consent under Article 10 of the Control of Borrowing (Jersey) Order 1958 to the creation by the Issuer
of the limited partnership interests in the Issuer. The Commission is protected by the Control of
Borrowing (Jersey) Law 1947, as amended, against liability arising from the discharge of its functions
under that Law.
Nothing in this Prospectus or anything communicated to holders of, or investors in, the Notes (or any
such potential holders or investors) is intended to constitute, or should be construed as, advice on the
merits of the purchase of, or subscription for, the Notes or the exercise of any rights attached thereto
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for the purposes of the Financial Services (Jersey) Law 1998, as amended.
An investment in the Notes is only suitable for financially sophisticated investors who are capable of
evaluating the merits and risks of such investment and who have sufficient resources to be able to bear
any losses which may result from such investment. If you are in any doubt about the contents of this
document, you should consult your stockbroker, bank manager, solicitor, accountant or other financial
advisor. It should be remembered that the price of securities and the income from them can go down
as well as up. See "RISK FACTORS".
The investments described in this Prospectus do not constitute a collective investment fund for
the purpose of the Collective Investment Funds (Jersey) Law 1988, as amended, on the basis that
they are investment products designed for financially sophisticated investors with specialist
knowledge of, and experience of investing in, such investments, who are capable of fully
evaluating the risks involved in making such investments and who have an asset base sufficiently
substantial as to enable them to sustain any loss that they might suffer as a result of making such
investments. These investments are not regarded by the Commission as suitable investments for
any other type of investor.
No person has been authorised to give any information or to make any representation other than as
contained in this Prospectus and, in connection with the issue and sale of the Notes, if given or made,
such information or representation must not be relied upon as having been authorised by the Issuer,
the Trustee, the Lead Manager or the Arranger.
Neither the delivery of this Prospectus nor any offering, sale or delivery of any Notes shall, under any
circumstances, create any implication (i) that the information in this Prospectus is correct as of any
time subsequent to the date hereof or, as the case may be, subsequent to the date on which this
Prospectus has been most recently amended or supplemented, or (ii) that there has been no adverse
change in the financial situation of the Issuer since the date of this Prospectus or, as the case may be,
the date on which this Prospectus has been most recently amended or supplemented, or the date of the
most recent financial information which is contained in this Prospectus by reference or (iii) that any
other information supplied in connection with the issue of the Notes is correct at any time subsequent
to the date on which it is supplied or, if different, the date indicated in the document containing the
same.
No action has been taken by the Issuer other than as set out in this Prospectus that would permit a
public offering of the Notes, or possession or distribution of this Prospectus or any other offering
material in any country or jurisdiction where action for that purpose is required. Accordingly, no
Notes may be offered or sold, directly or indirectly, and neither this Prospectus (nor any part thereof)
nor any Prospectus, prospectus, form of application, advertisement or other offering materials may be
issued, distributed or published in any country or jurisdiction except in compliance with applicable
laws, orders, rules and regulations, and the Issuer has represented that all offers and sales by it have
been made on such terms.
This Prospectus does not constitute an offer to sell or the solicitation of an offer to buy any securities
other than the securities to which it relates or an offer to sell or the solicitation of an offer to buy any
of the securities offered hereby in any circumstances in which such offer or solicitation is unlawful.
The distribution of this Prospectus (or of any part thereof) and the offering and sale of the Notes in
certain jurisdictions may be restricted by law. Persons into whose possession this Prospectus (or any
part thereof) comes are required by the Issuer to inform themselves about and to observe any such
restrictions. This Prospectus does not constitute, and may not be used for, or in connection with, an
offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not authorised
or to any person to whom it is unlawful to make such offer or solicitation. For a further description of
certain restrictions on offerings and sales of the Notes and distribution of this Prospectus (or of any
part thereof) see "SUBSCRIPTION AND SALE".
In connection with the issue of the Notes, the Lead Manager (or persons acting on its behalf)
may overallot or effect transactions with a view to supporting the price of the Notes at a level
higher than that which might otherwise prevail. However, there is no assurance that the Lead
Manager (or persons acting on its behalf) will undertake stabilisation action. Any stabilisation
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action may begin at any time after the adequate public disclosure of the final terms of the offer
of the Notes and, if begun, may be ended at any time, but it must end no later than the earlier of
30 days after the Issue Date and 60 days after the date of the allotment of the Notes.
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TABLE OF CONTENTS
SECTION
PAGE
TRANSACTION STRUCTURE.........................................................................................................8
OUTLINE OF THE TRANSACTION ................................................................................................9
RISK FACTORS ..............................................................................................................................29
TERMS AND CONDITIONS OF THE NOTES ...............................................................................42
TRUST AGREEMENT ....................................................................................................................59
PARTICIPATION RIGHT AGREEMENTS.....................................................................................74
TAX LIQUIDITY FACILITY AGREEMENT................................................................................ 121
CERTAIN OTHER TRANSACTION AGREEMENTS .................................................................. 136
1. Financial Advisory Agreement................................................................................................... 136
2. Recovery Advisory Agreement .................................................................................................. 139
3. Transaction Monitoring Agreement............................................................................................ 143
4. Investment Advisory Agreement ................................................................................................ 147
5. Tax Reimbursement Agreement ................................................................................................. 151
6. Cash Administration Agreement ................................................................................................ 152
7. Hedging Arrangements .............................................................................................................. 159
THE COMPANIES ........................................................................................................................ 161
THE ISSUER ................................................................................................................................. 189
THE GENERAL PARTNER .......................................................................................................... 192
THE TRUSTEE.............................................................................................................................. 194
THE CASH ADMINISTRATOR AND THE ACCOUNT BANK ................................................... 195
THE SWAP COUNTERPARTY .................................................................................................... 196
THE RECOVERY ADVISOR ........................................................................................................ 197
THE FINANCIAL ADVISOR ........................................................................................................ 198
THE TRANSACTION MONITOR................................................................................................. 199
THE TAX LIQUIDITY FACILITY PROVIDER............................................................................ 200
RATINGS ...................................................................................................................................... 201
TAXATION ................................................................................................................................... 202
SUBSCRIPTION AND SALE ........................................................................................................ 210
USE OF PROCEEDS ..................................................................................................................... 215
GENERAL INFORMATION ......................................................................................................... 216
INDEX OF DEFINED TERMS ...................................................................................................... 218
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TRANSACTION STRUCTURE
Diagrammatic Overview of Parties and Transaction
(as of the close of business on the Issue Date)
The following diagrammatic overview of the parties and the transaction structure appears for
convenience only. It is necessarily incomplete and is qualified in its entirety by reference to the more
detailed information appearing elsewhere in this Prospectus. Investors may therefore not solely rely
on the following diagrammatic overview and are urged to carefully review the entire Prospectus.
Jersey Charitable
Trust
Jersey Charitable
Trust
100%
100%
CB Mezz CAP
Limited
(General Partner)
CB MezzCAP VerwaltungsGesellschaft mbH
(Limited Partner)
99.9999%
Company 1
Investment Board
Company 2
Class A Notes
Class B Notes
Tax contributions
Company 3
Participation Rights
Company 4
Funding Payments
Company 5
Trustee
0.0001%
Interest + Principal
Class C Notes
Interest +
Principal
Class D Notes
(Issuer)
Interest +
Principal
Company 6
Issue proceeds
Class E Notes
Fixed
Liquidity
Floating
(Cash Collateralised subject to Rating Trigger )
Company ...
Liquidity Facility
Provider
Swap Counterparty
Cash Administrator
Financial Advisor
Class F Notes
Transaction Monitor
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Recovery Advisor
Disposal Advisor
OUTLINE OF THE TRANSACTION
The following outline of the transaction appears for convenience only. It is necessarily incomplete and
is qualified in its entirety by reference to the more detailed information appearing elsewhere in this
Prospectus. Investors may therefore not solely rely on the following outline of the transaction and are
urged to carefully review the entire Prospectus.
1. Parties
Issuer
CB MezzCAP Limited Partnership, a limited partnership organised
under the laws of Jersey with registration number LP 688 and
having its registered office at 26 New Street, St. Helier, Jersey,
Channel Islands.
Limited Partner
The sole limited partner of the Issuer is CB MezzCAP
Verwaltungsgesellschaft mbH, a limited liability company
organised under the laws of Germany with registration number
HRB 75531 and having its registered office at Neue Mainzer
Straße 75, 60311 Frankfurt am Main.
General Partner
The sole general partner of the Issuer is CB MezzCAP Limited, a
limited liability company organised under the laws of Jersey with
registration number 90779 and having its registered office at
26 New Street, St. Helier, Jersey, Channel Islands.
Companies
35 corporations and partnerships which are organised under
German law and have granted the Participation Rights to the Issuer
in the period from December 2005 to February 2006.
Investment Board
The initial members of the Investment Board are Stephanie
Gaubatz, James Fairrie and Cord Rodewald.
Financial Advisor
CBG Commerz Beteiligungsgesellschaft Holding mbH, Frankfurt
am Main
Recovery Advisor
Ernst & Young AG Wirtschaftsprüfungsgesellschaft, Frankfurt am
Main
Disposal Advisor
Ernst & Young Corporate Finance Beratung GmbH, München
Transaction Monitor
Commerzbank Aktiengesellschaft, London Branch
Liquidity Facility Provider
Commerzbank Aktiengesellschaft
Trustee
J.P. Morgan Corporate Trustee Services Limited, London
Swap Counterparty
AIG Financial Products Corp.
Cash Administrator
JPMorgan Chase Bank, N.A. (London Branch)
Account Bank
Principal Paying Agent
Corporate Administrator
Bedell Trust Company Limited, Jersey
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Irish Listing Agent and Irish J.P. Morgan Bank (Ireland) Plc
Paying Agent
Arranger
Lead Manager
Co-Manager
Fortis Bank nv-sa.
2. Notes
Issue
EUR 137,800,000 Class A Notes
EUR 20,000,000 Class B Notes
EUR 10,500,000 Class C Notes
EUR 14,500,000 Class D Notes
EUR 7,700,000 Class E Notes
EUR 9,000,000 Class F Notes
Issue Price
Class A: 100 per cent.
Class B: 100 per cent.
Class C: 100 per cent.
Class D: 100 per cent.
Class E: 100 per cent.
Class F: 100 per cent.
Denomination
The Notes will be issued in denominations of EUR 100,000.
Status
The Notes constitute direct and unsubordinated obligations of the
Issuer ranking pari passu amongst themselves and at least pari
passu with all current and future obligations of the Issuer (subject
to the Priority of Payments). The Notes are unsecured (provided
that the Noteholders will benefit from certain security interests
granted by the Issuer to the Trustee) and constitute limited
recourse obligations of the Issuer.
Form and Clearing
The Notes will initially be represented by the Temporary Global
Notes which will be exchangeable for the Permanent Global Notes
as described in the terms and conditions of the Notes. Definitive
notes and coupons will not be issued.
The Global Notes will be kept in custody by JPMorgan Chase
Bank, N.A. (London Branch) as common depositary for Euroclear
Bank S.A./N.V., as operator of the Euroclear Systems and
Clearstream Banking, société anonyme.
Interest
Class A:
Class B:
Class C:
Class D:
Class E:
Class F:
EURIBOR + 0.28% p.a.
17% p.a.
Interest will be payable quarterly in arrear on each Payment Date.
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Payment Dates
Each 25th of January, April, July and October of each year,
beginning in July 2006, or if any such day is not a Business Day,
the next succeeding day which is a Business Day unless the
payment would thereby fall into the next calendar month, in which
case the payment shall be made on the immediately preceding
Business Day.
Determination Dates
The first Business Day preceding 15 January, 15 April, 15 July and
15 October of each year, beginning in July 2006.
On each Determination Date, the Cash Administrator shall
establish, based upon the funds credited to the Issuer Accounts as
of such Determination Date, the amounts to be paid under the
Priority of Payments on the next following Payment Date.
Scheduled Maturity Date
On 25 January 2013 (subject to adjustment for non-Business Days
and unless previously redeemed), the Notes shall be redeemed in
full at their Note Principal Amount plus accrued interest. In the
event of insufficient funds pursuant to the Priority of Payments,
certain Notes will remain outstanding thereafter and will amortise
according to the Priority of Payments on the subsequent Payment
Dates until the Legal Maturity Date. No event of default shall
occur under the Notes as a consequence of such deferral of
redemption. See "TERMS AND CONDITIONS OF THE NOTES
– Scheduled Maturity Date". Two Participation Rights in the
aggregate initial nominal amount of EUR 11,500,000 are
scheduled to mature on 20 February 2013. The amortisation of the
Class F Notes and partially of the Class E Notes is therefore
expected to be deferred accordingly to the next following Payment
Date.
Legal Maturity Date
On 25 October 2036 (subject to adjustment for non-Business Days
and unless previously redeemed), the Notes shall be redeemed in
full at their Note Principal Amount plus accrued interest. See
"TERMS AND CONDITIONS OF THE NOTES – Legal Maturity
Date".
Early Redemption
If the Transaction Monitor notifies a debit balance of the Principal
Deficiency Ledger (as defined below) to the Issuer on or prior to a
Determination Date, the Class A, Class B, Class C, Class D and
Class E Notes (in that order) shall be redeemed on the next
following Payment Date in a total amount equal to the lesser of the
amount necessary to reduce the Principal Deficiency Ledger to
zero and the aggregate Note Principal Amount of the Class A,
Class B, Class C, Class D and Class E Notes (see Section 7.3 of
the Terms and Conditions).
"Principal Deficiency Ledger" means a ledger account maintained
by or on behalf of the Issuer, in which shall be debited each
Principal Deficiency Amount and credited (i) the amount of each
early redemption payment pursuant to Section 7.3(a) of the Terms
and Conditions and (ii) each Principal Deficiency Reversal
Amount.
"Principal Deficiency Amount" means each amount notified as a
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"principal deficiency amount" by the Transaction Monitor to the
Issuer, such amounts notified by the Transaction Monitor as being
equal to (i) the nominal amount of each Participation Right the
related Participation Right Agreement of which has been
terminated (a "Principal Deficiency Event") or (ii) the nominal
amount of each Participation Right Type A in respect of which a
remuneration amount has accrued but the related payment claim of
the Issuer has not come into existence under the related
Participation Right Agreement Type A due to the lack of sufficient
free assets of the relevant Company.
"Principal Deficiency Reversal Amount" means the nominal
amount of each Participation Right Type A notified by the
Transaction Monitor to the Issuer in respect of which (aa) a
Principal Deficiency Amount pursuant to Section 7.3(c) first para.
(ii) of the Terms and Conditions had previously been debited to the
Principal Deficiency Ledger and (bb) all payment claims in respect
of remuneration which had previously not come into existence due
to the lack of free assets of the relevant Company have at the time
of such notice come into existence pursuant to the terms of the
related Participation Right Agreement Type A.
See "TERMS AND CONDITIONS OF THE NOTES – Early
Redemption".
Priority of Payments
On each Payment Date, all available Issuer Receipts as determined
on the immediately preceding Determination Date will be
distributed towards the discharge of the due and payable claims of
the Noteholders and the other creditors of the Issuer in the
following order of priority (the "Priority of Payments"):
(1) to pay pari passu with each other on a pro rata basis any
obligation of the Issuer in respect of Maintenance Expenses;
(2) to pay pari passu with each other on a pro rata basis all Agent
Fees, provided that total amount paid under this paragraph (2)
on any Payment Date shall not exceed the Agent Fees Cap
Amount;
(3) to pay pari passu with each other on a pro rata basis all
Administrative Expenses, provided that total amount paid
under this paragraph (3) on any Payment Date shall not exceed
the Administrative Expenses Cap Amount;
(4) to pay to the Liquidity Facility Provider any interest, principal,
commitment fee and other due amounts pursuant to the Tax
Liquidity Facility Agreement;
(5) to pay to the Swap Counterparty any payment under the
Hedging Agreement other than termination payments arising
by virtue of the Swap Counterparty being (aa) the Defaulting
Party (as defined in the Hedging Agreement) or (bb) the sole
Affected Party (as defined in the Hedging Agreement) under
an Additional Termination Event (as defined in the Hedging
Agreement) set out in Part 5(h)(v) (Consequences of Rating
Events) of the Schedule to the Hedging Agreement;
(6) to pay pari passu with each other on a pro rata basis all Service
Provider Fees, provided that total amount paid under this
paragraph (6) on any Payment Date shall not exceed the
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Service Provider Cap Amount;
(7) to pay any claims of the Companies arising pursuant to the
terms of the Participation Rights Type A due to the netting of
the yearly remuneration claim of the Issuer and the advance
payments received in respect thereto by the Issuer;
(8) to pay due and payable Class A Notes Interest;
(9) to repay the principal of the Class A Notes until all Class A
Notes have been redeemed in full, provided that prior to the
Scheduled Maturity Date the total amount paid under this
paragraph (9) shall not exceed the Principal Available as of the
relevant Determination Date;
(10) to pay due and payable Class B Notes Interest;
(11) to repay the principal of the Class B Notes until all Class B
Scheduled Maturity Date the total amounts paid under this
paragraph (11) shall not exceed the Principal Available as of
the relevant Determination Date as reduced by the amounts
determined pursuant to paragraph (9) above;
(12) to pay due and payable Class C Notes Interest;
(13) to repay the principal of the Class C Notes until all Class C
determined pursuant to paragraphs (9) and (11) above;
(14) to pay due and payable Class D Notes Interest;
(15) to repay the principal of the Class D Notes until all Class D
determined pursuant to paragraphs (9), (11) and (13) above;
(16) to pay due and payable Class E Notes Interest;
(17) to repay the principal of the Class E Notes until all Class E
determined pursuant to paragraphs (9), (11), (13) and (15)
above;
(18) on any Payment Date on which the Principal Deficiency
Ledger shows a debit balance, to pay to the holders of the
Class A Notes until all Class A Notes have been redeemed in
full, then of the Class B Notes until all Class B Notes have
been redeemed in full, then of the Class C Notes until all Class
C Notes have been redeemed in full, then of the Class D Notes
until all Class D Notes have been redeemed in full and then of
the Class E Notes as early redemption on the Class A, Class B,
Class C, Class D and Class E Notes (and in that order) an
aggregate amount equal to the lesser of the amount necessary
to reduce the Principal Deficiency Ledger to zero and the
aggregate Note Principal Amount of the Class A, Class B,
Class C, Class D and Class E Notes;
(19) to pay to the Swap Counterparty termination payments under
the Hedging Agreements arising by virtue of the Swap
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Counterparty being (aa) the Defaulting Party (as defined in the
Hedging Agreement) or (bb) the sole Affected Party (as
defined in the Hedging Agreement) under an Additional
Termination Event (as defined in the Hedging Agreement) set
out in Part 5(h)(v) (Consequences of Rating Events) of the
Schedule to the Hedging Agreement;
(20) to pay to the Reserve Account the funds necessary to provide
or maintain, together with the funds standing to the credit of
the Reserve Account, the respective Reserve Account Required
Amount relating to such Payment Date;
(21) to pay pari passu with each other on a pro rata basis all Agent
Fees exceeding the Agent Fees Cap Amount;
(22) to pay pari passu with each other on a pro rata basis all
Administrative Expenses exceeding the Administrative
Expenses Cap Amount;
(23) to pay due and payable Class F Notes Interest;
(24) to repay the principal of the Class F Notes until all Class F
determined pursuant to paragraphs (9), (11), (13), (15) and (17)
above;
(25) to pay pari passu with each other on a pro rata basis the
Transaction Management Performance Fee (arising under the
Financial Advisory Agreement) to the Financial Advisor and
the Monitoring Performance Fee (arising under the Transaction
Monitoring Agreement) to the Transaction Monitor;
(26) to pay pari passu with each other on a pro rata basis all Service
Provider Fees exceeding the Service Provider Cap Amount;
(27) to the extent not covered in (1) through (26) above, to pay all
other due and payable obligations of the Issuer (other than
pursuant to paragraphs (28) and (29) below), including
indemnifications and replacement costs payable by the Issuer
to third parties;
(28) of any remaining amount, to distribute 99.9% thereof as a
"Junior Performance Premium" first (i) to the holders of the
Class F Notes, however not exceeding 3% of the Note
Principal Amount of the Class F Notes outstanding on the Issue
Date in respect of the first Payment Date, and on the
immediately preceding Payment Date in respect of any
subsequent Payment Date, in each case after the full discharge
of any principal repayments of such Notes, and second (ii) any
remainder amount pari passu with each other on a pro rata
basis to the Financial Advisor and the Transaction Monitor;
(29) to pay out any remainder amount to the General Partner and to
the Limited Partner of the Issuer in accordance with the Issuer's
partnership agreement.
The Issuer shall make payments only on the Payment Dates in
accordance with the Priority of Payments, provided, however, that
payments may be made on 25 April 2006 and irrespective of the
Priority of Payments in respect of the payment of outstanding
interest amounts under the Bridge Facility, provided that the
aggregate amount of such payments shall not exceed
- 14 -
EUR 4,000,000.
"Administrative Expenses" means fees, costs and expenses of, and
any other amounts due by the Issuer to, the directors of the General
Partner, the Rating Agencies, the stock exchange, the auditors and
legal counsel of the Issuer, the Limited Partner pursuant to the Tax
Reimbursement Agreement, the Corporate Administrator pursuant
to the Corporate Services Agreement as well as annual payments of
EUR 1,000 to the General Partner and EUR 5,000 to the Limited
Partner.
"Administrative Expenses Cap Amount" means EUR 30,000
with respect to each Payment Date.
"Agent Fees" means the fees, costs and expenses of, and any other
amounts due by the Issuer to, the Cash Administrator and the
Account Bank pursuant to the Cash Administration Agreement and
the Paying Agents pursuant to the Agency Agreement.
"Agent Fees Cap Amount" means EUR 10,000 with respect to
each Payment Date.
"Determination Date" means the first Business Day preceding 15
January, 15 April, 15 July and 15 October of each year, beginning
in July 2006.
"Issuer Receipts" means on any date, all amounts credited to the
Issuer Accounts on such date on account of receipts and collections
of the Issuer, including Interest Available and Principal Available,
and all other amounts received by the Issuer pursuant to the
Transaction Agreements and credited to the Issuer Accounts (other
than an amount equal to the aggregate Swap Collateral).
"Interest Available" means the sum of (i) the receipts under the
Participation Right Agreements other than principal repayments,
(ii) the balance of the Reserve Account and proceeds from
permitted investments made by the Cash Administrator pursuant to
the terms of the Cash Administration Agreement, (iii) the liquidity
advances provided under the Tax Liquidity Facility Agreement,
(iv) any amount paid (other than collateral) by the Swap
Counterparty to the Issuer under the Hedging Agreement and
(v) any interest portion of Recoveries Available.
"Maintenance Expenses" means (i) the Issuer's and the General
Partner's tax liabilities (if any) and (ii) the fees, costs and expenses
of and any other amounts due to the Trustee under or in relation to
the Trust Agreement (other than the Trustee Claim as such).
"Monitoring Performance Fee" means (i) 0.25% per annum plus
(ii) a premium of 0.05% per annum if and as long as there are not
more than 4 Companies having received a credit appraisal of the
category of "Ba2.edf" or below from Moody's KMV or an
equivalent credit appraisal from another credit appraisal agency,
each such amounts to be calculated in respect of each Payment Date
on the basis of the principal amount of all Notes outstanding on the
- 15 -
immediately preceding Payment Date.
"Participation Rights Type A" means the Participation Rights
granted to the Issuer pursuant to the Participation Right Agreements
entitled "Genussrechtsvereinbarung Variante A HGB-Eigenkapitalinstrument".
"Principal Available" means on any date, all amounts credited to
the Issuer Accounts on such date on account of the principal
amounts received by the Issuer from the Companies as repayment
of Participation Rights and of any principal portion of Recoveries
Available, however excluding any payments in respect of
Participation Rights in respect of which a Principal Deficiency
Event has occurred.
"Reserve Account Required Amount" means (i) EUR 0 in
relation to the initial Payment Date, (ii) in relation to each
subsequent Payment Date prior to the Scheduled Maturity Date, the
sum of (A) the funds standing to the credit of the Reserve Account
on the immediately preceding Payment Date following any
payments pursuant to Section 2.3 paragraph (20) of the Terms and
Conditions and (B) EUR 500,000, provided that such sum shall
under no circumstance exceed EUR 4 million, and (iii) EUR 0 in
relation to the Scheduled Maturity Date and any subsequent
Payment Date.
"Recoveries Available" means the net proceeds realised by the
Issuer on the disposal of Participation Right Agreements by way of
an assumption of contract of a third party or an assignment of
claims arising thereunder.
"Service Provider Cap Amount" means EUR 200,000 with
respect to each Payment Date.
"Service Provider Fees" means the fees, costs and expenses of,
and any other amounts due to, the Financial Advisor pursuant to the
Financial Advisory Agreement (excluding the Transaction
Management Performance Fee), the Transaction Monitor pursuant
to the Transaction Monitoring Agreement (excluding the
Monitoring Performance Fee), the Recovery Advisor and the
Disposal Advisor pursuant to the Recovery Advisory Agreement
and the members of the Investment Board pursuant to the
Investment Advisory Agreement.
"Swap Collateral" means any collateral transferred by the Swap
Counterparty to the Issuer pursuant to the Hedging Agreement and
any interest or distributions in respect thereof.
"Transaction Management Performance Fee" means (i) 0.25%
per annum plus (ii) a premium of 0.05% per annum if and as long
as there are not more than 4 Companies having received a credit
appraisal of the category of "Ba2.edf" or below from Moody's
KMV or an equivalent credit appraisal from another credit appraisal
agency, each such amounts to be calculated in respect of each
Payment Date on the basis of the principal amount of all Notes
- 16 -
outstanding on the immediately preceding Payment Date.
The aggregate fees of the Trustee, the Cash Administrator, the
Account Bank, the Paying Agents, the Financial Advisor, the
Transaction Monitor and the Investment Board (to the extent
ranking senior to the Notes) will amount to not more than 0.50%
per annum, calculated in respect of each Payment Date on the basis
of the principal amount of all Notes outstanding on the immediately
preceding Payment Date.
Events of Default
Any of the following events will constitute an Event of Default
which will, if continuing, entitle each Noteholder to accelerate all
the Notes held by it and demand immediate repayment, upon
which the Issuer will redeem all of the Notes:
(i)
certain insolvency-related events with respect to the
Issuer or its liquidation;
(ii) payment default of the Issuer continuing for a period of
5 Business Days or longer;
(iii) invalidity of Trustee Collateral in whole or in part.
For the avoidance of doubt, no Issuer Event of Default shall occur
with respect to any accrued claims which do not become due, and
payment is deferred accordingly, by operation of Section 2.4 of the
Terms and Conditions of the Notes (Limited Recourse). On or after
the Legal Maturity Date, any payment obligations under the Notes
shall be determined for the purposes of (ii) above as if Section 2.4
(Limited Recourse) would not apply.
See "TERMS AND CONDITIONS OF THE NOTES – Early
Redemption for Default".
Taxation; no Gross-up
Payments in respect of the Notes will only be made after
withholding or deduction for or on account of any present or future
taxes, duties or governmental charges which are imposed, levied or
collected under any applicable system of law. The Issuer shall be
under no obligation to pay any additional amounts as
compensation for any such withholdings or deductions, and such
withholdings or deductions shall not constitute an Issuer Event of
Default.
For a discussion of certain Jersey and German tax consequences of
purchasing, owning and disposing of the Notes, see
"TAXATION".
Governing Law
The Notes will be governed by the laws of the Federal Republic of
Germany.
Trustee Collateral
Pursuant to the Trust Agreement, the Issuer has granted a security
interest in respect of its claims under the Participation Right
Agreements and under certain of the other Transaction
Agreements to which it is a party to the Trustee for the benefit of
the Noteholders and certain other secured creditors of the Issuer.
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See "TRUST AGREEMENT". Pursuant to the English Security
Deed, the Issuer has granted a security interest in respect of the
Transaction Account and the Reserve Account (and any other
accounts which may replace such accounts from time to time in
accordance with the Cash Administration Agreement), and
pursuant to the Jersey Security Agreement, the Issuer has granted a
security interest in respect of its claims under the Corporate
Services Agreement, in each case to the Trustee for the benefit of
the Noteholders and certain other secured creditors of the Issuer.
Subscription
The Managers will, subject to certain conditions, subscribe for the
Notes and will offer the Notes, subject to certain exceptions, only
outside the United States to non-U.S. persons in reliance on
Regulation S under the Securities Act pursuant to the terms and
conditions of the Subscription Agreement. The Notes will not be
registered under the Securities Act. See "SUBSCRIPTION AND
SALE".
Use of Proceeds
The Issuer will apply the net proceeds from the issue of the Notes
to redeem the Bridge Facility pursuant to which the Issuer has
received certain term loans in order to finance the investment in
the portfolio of Participation Rights.
3. Rating
It is expected that on the Issue Date, the Class A Notes will be
assigned ratings of "Aaa" by Moody's and "AAA" by S&P, the
Class B Notes will be assigned ratings of "Aa2" by Moody's and
"AA" by S&P, the Class C Notes will be assigned ratings of "A2"
by Moody's and "A" by S&P, the Class D Notes will be assigned
ratings of "Baa2" by Moody's and "BBB" by S&P and the Class E
Notes will be assigned ratings of "Ba1" by Moody's and "BB" by
S&P. The Class F Notes will not be rated.
A rating is not a recommendation to buy, hold or sell securities,
and may be subject to revision, suspension or withdrawal at any
time by the rating agency.
4. Main Transaction
Agreements
Trust Agreement
Pursuant to the Trust Agreement entered into between the Issuer,
the Limited Partner, the General Partner and the Trustee on
1 December 2005 (as amended and restated on 11 April 2006), the
Issuer has granted certain collateral as security for its obligations
under the Notes and towards the other secured creditors of the
Issuer to the Trustee, acting in a fiduciary capacity for the
Noteholders and the other secured creditors of the Issuer. The
Trustee will hold, and subject to certain circumstances, realise the
Trustee Collateral and perform certain other functions as a trustee
for the benefit of the Noteholders and the other creditors of the
Issuer under the Transaction Documents. See "THE TRUST
AGREEMENT".
Financial Advisory
Agreement
Pursuant to the Financial Advisory Agreement entered into between
the Issuer and the Financial Advisor on 26 October 2005 (as
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amended and restated on 11 April 2006), the Financial Advisor has
provided to the Issuer (with a copy to the Investment Board) a
selection of such companies which it considered suitable to form
part of the portfolio of Participation Rights exclusively based on
Moody's KMV industry classification and a rating classification on
the basis of Moody's KMV credit assessment as well as a rating by
Commerzbank Aktiengesellschaft. The Financial Advisor will
provide information and make proposals to the Issuer (with a copy
to the Investment Board), based upon the advice of the Recovery
Advisor, in relation to the termination of any Participation Right
Agreements and the disposal of Participation Rights. The Financial
Advisor will monitor the performance of the Recovery Advisor as
well as the performance of the Portfolio and the Companies. It will
inform certain transaction parties of any trigger breaches under the
Participation Right Agreements; in this case, it will furthermore
provide information and make proposals to the Issuer (with a copy
to the Investment Board) in relation to the exercise or non-exercise
of the Issuer's additional information rights under the Participation
Right Agreements, and if the Issuer exercises any of its additional
information rights under the Participation Right Agreements such
as the activation of the Recovery Advisor, it will advise the Issuer
in relation thereto. See "CERTAIN OTHER TRANSACTION
AGREEMENTS – The Financial Advisory Agreement".
Recovery Advisory
Agreement
Pursuant to the Recovery Advisory Agreement entered into
between the Issuer and the Recovery Advisor on 1 December 2005
(as amended and restated on 11 April 2006), the Recovery Advisor
will upon instruction of the Issuer in case of certain trigger events
under the Participation Right Agreements carry out an analysis of
the economic condition of the relevant Companies, prepare a
written evaluation of potential courses of action and prepare a
recommendation to the Issuer on the preferred course of action. In
the case of a decision of the Issuer to dispose of Participation
Rights, the Disposal Advisor will advise in respect of and organise
the disposal process. See "CERTAIN OTHER TRANSACTION
AGREEMENTS – The Recovery Advisory Agreement".
Transaction Monitoring
Agreement
Pursuant to the Transaction Monitoring Agreement entered into
between the Issuer and the Transaction Monitor on 1 December
2005 (as amended and restated on 11 April 2006), the Transaction
Monitor will monitor the performance of the Portfolio and of the
parties to the Transaction. The Transaction Monitor will also
perform and implement the annual calculation of default
probabilities for Moody's KMV RiskCalc, carry out transaction
reporting as provided for in the Transaction Documents, give
instructions to the Cash Administrator to invest amounts credited to
the accounts of the Issuer (other than an amount equal to the
aggregate Swap Collateral) in specified Permitted Investments (as
defined in the Cash Administration Agreement) or to dispose of
specified Permitted Investments and render certain other services to
the Issuer. See "CERTAIN OTHER TRANSACTION
AGREEMENTS – The Transaction Monitoring Agreement".
Investment Advisory
Agreement
Pursuant to the Investment Advisory Agreement entered into
between the Issuer and the members of the Investment Board on
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26 October 2005 (as amended and restated on 11 April 2006), the
Investment Board has made proposals to the board of directors of
the Issuer with respect to the selection of the Companies and will
make proposals regarding the exercise of certain rights under the
Participation Right Agreements and the potential disposal of
Participation Rights. The Investment Advisory Agreement will
contain procedural rules for the Investment Board and will govern
the substitution of its members. See "CERTAIN OTHER
TRANSACTION AGREEMENTS – The Investment Advisory
Agreement".
Cash Administration
Agreement
Pursuant to the Cash Administration Agreement entered into
between the Issuer, the Cash Administrator and the Account Bank
on 1 December 2005 (as amended and restated on 11 April 2006),
the Cash Administrator will, among other things, record the
payments of the Companies under the Participation Right
Agreements, manage the payments of the Issuer and make cash
investments upon the instruction of the Transaction Monitor.
Funds standing to the credit of the accounts of the Issuer (other than
an amount equal to the aggregate Swap Collateral) will be invested
by the Cash Administrator upon instruction of the Transaction
Monitor in specified Permitted Investments. "Permitted
Investments" means
(i)
any bank account or deposit (including, for the
avoidance of doubt, time deposits) held or made with
any financial institution, the short-term unsecured and
unsubordinated debt obligations of which are rated at
least "P-1" by Moody's and "A-1+" by S&P, and, with
respect to bank accounts, the long-term unsecured and
unsubordinated debt obligations of which are rated at
least "A1" by Moody's and "AA-" by S&P, provided that
each such bank account or deposit shall (i) have a
predetermined fixed euro amount of principal due at
maturity that cannot change or vary, (ii) not have an "r"
suffix attached to its rating, (iii) if such bank account or
deposit has a variable interest rate, have an interest rate
tied to a single interest rate index plus a single fixed
spread (if any) and move proportionately with that
index, (iv) not be subject to liquidation prior to its
maturity and (v) mature on the next following Payment
Date; or
(ii) money market funds which are rated at least "Aaa" and
"MR1+" by Moody's and "AAAm" by S&P and permit
daily liquidation of investments;
provided in each case that the relevant debtor is not required to
deduct or withhold any amounts for or on account of any
withholding tax or similar tax, unless such debtor is required to
make "gross up" payments that ensure that the net amount actually
received by the Issuer (free and clear of taxes, whether assessed
against such debtor or the Issuer) will equal the full amount that the
Issuer would have received had no such deduction or withholding
- 20 -
been required.
All receipts from Permitted Investments acquired with amounts
from the Transaction Account will be credited to the Transaction
Account, all receipts from Permitted Investments acquired with
amounts from the Reserve Account will be credited to the Reserve
Account, all receipts from Permitted Investments acquired with
amounts from the Collateral Account shall be paid to the
Transaction Account and all receipts from Permitted Investments
acquired with amounts from any other account of the Issuer shall be
credited to such account.
The Cash Administration Agreement will set out the duties and
obligations of the Account Bank. In the event that the rating of the
short-term unsecured debt obligations of the Account Bank by any
of the Rating Agencies is downgraded below P-1 or A-1+,
respectively, the Issuer shall within 30 calendar days following
such event appoint a substitute Account Bank. See "CERTAIN
OTHER TRANSACTION AGREEMENTS – The Cash
Administration Agreement".
Tax Liquidity Facility
Agreement
Pursuant to the Tax Liquidity Facility Agreement entered into
between the Issuer and the Liquidity Facility Provider on
1 December 2005 (as amended and restated on 11 April 2006), the
Liquidity Facility Provider is required, subject to certain
exceptions, to make advances to the Issuer in amounts requested by
the Issuer in respect of the withholdings made by the Companies on
account of German withholding tax on the payments to the Issuer
under the Participation Right Agreements. The aggregate advances
outstanding at any time shall not exceed the Commitment.
"Commitment" means initially EUR 9 million, as may be reduced
from time to time in accordance with the terms of the Tax Liquidity
Facility Agreement.
The Liquidity Facility Provider will provide security to the Issuer by
depositing an amount equal to the Commitment to the Collateral
Account (as defined in the Tax Liquidity Facility Agreement). The
Liquidity Facility Provider shall be entitled to request the Issuer to
repay such deposit (in parts or in full) if and when (i) the Liquidity
Facility Provider gains or regains a certain rating required by the
Rating Agencies, (ii) the Legal Maturity Date occurs, (iii) the Class
A, Class B, Class C, Class D and Class E Notes are redeemed in full,
(iv) the Liquidity Facility Provider is replaced in this liquidity facility
by another liquidity facility provider with the required rating or
(v) certain events of default specified in the Tax Liquidity Facility
Agreement occur. A first ranking charge on the Collateral Account
will be granted to the Trustee in order to secure the claims of the
Liquidity Facility Provider to repayment of the deposit made to the
Collateral Account and a second ranking charge will be granted in
order to secure the Secured Obligations of the Issuer.
The Issuer will pay interest to the Liquidity Facility Provider on
each Payment Date, subject to the Priority of Payments. The
interest rate applicable on any amounts drawn under the Tax
Liquidity Facility Agreement will be the three-month EURIBOR
- 21 -
plus a margin of 0.50% per annum. See "CERTAIN OTHER
TRANSACTION AGREEMENTS – The Tax Liquidity Facility
Agreement".
Hedging Agreement
The Issuer will enter into the Hedging Agreement with the Swap
Counterparty in order to reduce the potential impact of certain
fixed/floating rate mismatches between payments under the
Participation Right Agreements and the floating rate interest
payments under the Notes. See "CERTAIN OTHER
TRANSACTION AGREEMENTS – Hedging Arrangements".
Subscription Agreement
Pursuant to the Subscription Agreement entered into between the
Lead Manager, the Co-Manager (together, the "Managers") and the
Issuer on or before the Issue Date, the Managers will agree, subject
to certain conditions, to subscribe for the Notes. The Subscription
Agreement will contain certain representations and indemnities for
the benefit of the Managers.
Tax Reimbursement
Agreement
Pursuant to the Tax Reimbursement Agreement entered into
between the Issuer and the Limited Partner on 1 December 2005 (as
amended and restated on 11 April 2006), the Limited Partner will
from time to time file its claims against the German tax authorities
for each tax year (each such annual claim, a "Tax Refund Claim")
in a timely manner and on-pay to the Issuer (i) upon receipt all
amounts it receives from the German tax authorities on account of
each Tax Refund Claim and (ii) all amounts, if any, equal to the
difference (but only to the extent such difference arises as a result
of profits realised by the Limited Partner subject to German Income
Tax) between 99.9999 per cent. of each actual withholding made by
the Companies on account of German Withholding Tax and the
amount received by the Limited Partner from the German tax
authorities on account of each corresponding Tax Refund Claim.
See "CERTAIN OTHER TRANSACTION AGREEMENTS – The
Tax Reimbursement Agreement".
Agency Agreement
Pursuant to the Agency Agreement entered into between the
Principal Paying Agent, the Irish Paying Agent (together, the
"Paying Agents") and the Issuer on or before the Issue Date, the
Paying Agents will undertake to act as paying agents with respect
to the Notes. In the event that the Principal Paying Agent no longer
has a short-term debt rating by Moody's of at least "P-1" or a shortterm debt rating by S&P of at least "A-1+", the Issuer shall without
undue delay terminate the appointment of the Principal Paying
Agent by giving not less than 30 calendar days' prior notice to the
Principal Paying Agent and shall, within 30 business days
following such event, appoint a replacement Principal Paying
Agent, which must be a bank or financial institution capable of
assuming such functions and whose ratings satisfy the ratings set
out above. Such termination of appointment shall only become
effective if such replacement Principal Paying Agent has been
appointed.
Corporate Services
Agreement
Pursuant to the Corporate Services Agreement entered into between
the Issuer, the General Partner and the Corporate Administrator on
19 October 2005, the Corporate Administrator will be responsible
- 22 -
for the day-to-day administrative activities of the Issuer and the
General Partner, including (but not limited to) providing secretarial,
clerical, administrative and related services to the Issuer and the
General Partner in accordance with applicable laws and regulations
in Jersey.
Governing Law
The Transaction Agreements (other than the English Security Deed,
the Corporate Services Agreement and the Jersey Security
Agreement) will be governed by German law. The English Security
Deed will be governed by English law, and the Corporate Services
Agreement and the Jersey Security Agreement will be governed by
Jersey law.
5. Reserve Account
General
On each Payment Date, any credit of the Reserve Account
(determined as of the immediately preceding Determination Date)
will be available for application pursuant to the Priority of
Payments.
On each Payment Date, the Issuer will be required to deposit the
funds necessary to provide or maintain, together with the funds
standing to the credit of the Reserve Account, the respective
Reserve Account Required Amount relating to such Payment Date.
Reserve Account Required
Amount
6. Participation Right
Agreements
Reserve Account Required Amount means EUR 0 in relation to the
initial Payment Date, (ii) in relation to each subsequent Payment
Date prior to the Scheduled Maturity Date, the sum of (A) the funds
standing to the credit of the Reserve Account on the immediately
preceding Payment Date following any payments pursuant to
Section 2.3 paragraph (20) of the Terms and Conditions and (B)
EUR 500,000, provided that such sum shall under no circumstance
exceed EUR 4 million, and (iii) EUR 0 in relation to the Scheduled
Maturity Date and any subsequent Payment Date.
Each Company has granted participation rights (Genussrechte) to
the Issuer either in the form of participation rights which are
designed to allow for the recognition as equity capital pursuant to
the provisions of the German Commercial Code (Handelsgesetzbuch) (each, a "Participation Right Type A") pursuant to
participation right agreements entitled "Genussrechtsvereinbarung
Variante A HGB-Eigenkapitalinstrument" (the "Participation
Right Agreements Type A") or in the form of participation rights
which are designed to allow a special treatment as economic
capital recognised as debt pursuant to the provisions of the
German Commercial Code (each, a "Participation Right
Type B") pursuant to participation right agreements entitled
"Genussrechtsvereinbarung Variante B" (the "Participation Right
Agreements Type B"), as set out in more detail in the respective
Participation Right Agreements. The initial aggregate nominal
amount of all Participation Rights, on the respective dates on
which they were granted to the Issuer, amounted to
EUR 199,500,000. See "PARTICIPATION RIGHT AGREEMENTS".
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The following sets out a description of certain material terms of
the Participation Rights Type A and Type B, the full text of which
appears under "PARTICIPATION RIGHT AGREEMENTS".
Only the German text of the Participation Right Agreements is
legally binding. The English language translation and summary is
provided for convenience only.
Participation Right Type A
Under each Participation Right Agreement Type A, the relevant
Company is obliged to pay an annual remuneration to the Issuer
equal to a certain percentage rate p.a. of the nominal amount of the
Participation Right. A remuneration claim for a given financial year
will arise only if and to the extent a balance sheet profit which is
available for distribution is reported for such financial year in the
Company's audited financial statements or could be reported by
releasing equity components which are not legally protected against
distribution (free reserves) or tax-free reserves. The Companies are
obliged to make quarterly advance payments on the annual
remuneration. Remuneration claims for each financial year will be
netted with the corresponding advance payments. Any balance
resulting for the benefit of one party will be compensated by the
respective other party, subject to the terms of the Participation
Right Agreement.
No payment claim of the Issuer will arise under a Participation
Right Agreement if such claim could only be paid out of protected
equity capital of the respective Company. Protected equity capital
means such equity components of the relevant Company especially
protected against distributions to the shareholders by law. Payment
claims not coming into existence pursuant to the foregoing will
arise on the next following payment dates if and to the extent the
relevant Company disposes of sufficient funds in order to make the
required payments which do not constitute protected equity capital.
In the case of any such delay of payment claims arising under the
Participation Right Agreement, the relevant Company will be
obliged to pay an increased remuneration for the resulting extended
payment period. If a Company defaults on a payment claim which
has become due and payable, it will be obliged to pay to the Issuer
an additional remuneration of 4% p.a. of the nominal amount of the
Participation Right calculated pro rata temporis for the period of
default.
The repayment amount of the Participation Right will be decreased
by an annual deficit reported in the audited financial statements of
the relevant Company (loss participation), if and to the extent such
annual deficit would otherwise have to be absorbed by protected
equity capital of such Company. Future annual surpluses will, after
recovery of the protected equity capital, be used preferentially to
increase the repayment amount.
The Participation Right will be due for repayment after a scheduled
term of approximately seven years. In case of an extraordinary
termination, the Participation Right will be due for repayment on
the day on which the termination notice takes effect. If repayment
claims have not partially or fully come into existence on the
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repayment date for lack of sufficient funds which do not constitute
protected equity capital, or the repayment amount of the
Participation Right has been decreased due to loss allocation, the
term of the Participation Right will be extended until the discharge
in full of all claims. The maximum aggregate extended term of the
Participation Right amounts to approximately 29 years.
Either party of the Participation Right Agreement may terminate
the agreement for good cause. Good cause for an extraordinary
termination by the Issuer includes, among other things, certain
events of non-payment by the Company, the breach of certain of its
obligations, certain distributions or withdrawals, the occurrence of
a change of control with respect to the Company, or the liquidation
or insolvency of the Company. The Issuer is obliged to give written
notice of any extraordinary termination to certain senior lenders of
the relevant Company. With exception of the liquidation or the
insolvency of the relevant Company, any termination notice by the
Issuer will only take effect following the lapse of a waiting period
of 30 days (in the case of certain non-payment events) or 90 days
(in all other cases stipulated in the Participation Right Agreement).
The Issuer may not enforce its payment claims against the relevant
Company during such waiting period.
The Issuer has been granted certain regular information rights (in
particular, the right to receive financial statements) as well as
certain additional information rights in case the relevant Company's
creditworthiness deteriorates, certain non-payment events occur or
the repayment amount of the Participation Right is reduced due to
loss participation.
The claims of the Issuer are subordinated such that in case of
insolvency proceedings with respect to the assets of a Company, its
liquidation or a company crisis, the claims under the relevant
Participation Right will be satisfied only after the full discharge of
all claims of the creditors of the relevant Company and pari passu
with the claims of the shareholders of such Company to restitution
of contributions (§ 199 Insolvency Act) or to distribution of the
liquidation proceedings. A company crisis will occur if, when
accounting for the claims under the Participation Right, any
illiquidity or over-indebtedness (§§ 17, 19 Insolvency Act) of the
relevant Company were to occur. The company crisis will terminate
if such circumstances no longer exist.
The Issuer is not entitled to participate in the distribution of the
liquidation proceedings with respect to any Company following the
discharge in full of its claims under the relevant Participation Right
Agreement.
The Company will be obliged to make gross-up payments to the
Issuer in respect of any retentions or deductions of taxes from
payments, with the exception of amounts withheld on account of
German withholding tax (Kapitalertragsteuer) plus the solidarity
surcharge (Solidaritätszuschlag) thereon, in respect of which a
gross-up obligation of the Company arises only subject to certain
limited circumstances.
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The Issuer is entitled to transfer the Participation Right Agreement
to a third party only subject to the condition that certain extended
information rights of the Issuer arise or that the term of the
Participation Right is extended beyond the scheduled term of
approximately seven years.
The Participation Right Agreement is governed by German law.
Participation Right Type B
Under each Participation Right Agreement Type B, the relevant
Company is obliged to pay a remuneration to the Issuer consisting
of a fixed component and a floating component.
The fixed remuneration will be determined on the basis of a certain
percentage rate p.a. of the nominal amount of the Participation
Right and will be payable quarterly in arrear. The fixed
remuneration will be payable independently from the earnings
situation of the Company.
The floating remuneration will accrue in the amount of a certain
percentage rate p.a. of the nominal amount of the participation
right, such rate to depend on the return on sales of the relevant
Company for each financial year. Return on sales will be equal to
the result of the ordinary business operations divided by the net
sales, as determined on the basis of the consolidated financial
statements, or if the relevant Company is not required to prepare
consolidated financial statements pursuant to the terms of the
Participation Right Agreement, the unconsolidated financial
statements. The floating remuneration will become due on the
15th calendar day following the delivery of the financial statements
by the relevant Company to the Issuer. If a Company defaults on a
due remuneration claim, it will be obliged to pay to the Issuer an
additional remuneration of 4% p.a. of the nominal amount of the
Participation Right calculated pro rata temporis for the period of
default.
The Participation Right will not participate in any losses of the
relevant Companies.
The Participation Right will be due for repayment after a term of
approximately seven years. In case of an extraordinary termination,
the Participation Right will be due for repayment on the day on
which the termination notice takes effect. If a Company should not
fully repay the nominal amount to the Issuer on the repayment date,
the respective amount in arrears will accrue interest at a rate of
12% p.a. for the period between the repayment date and the actual
complete payment of the amount owed.
Either party of the Participation Right Agreement may terminate
the agreement for good cause. Good cause for an extraordinary
termination by the Issuer includes, among other things, certain
events of non-payment by the Company, the breach of certain of its
obligations, certain distributions or withdrawals, the occurrence of
a change of control with respect to the Company, or the liquidation
or insolvency of the Company. The Issuer is obliged to give written
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notice of any extraordinary termination to certain senior lenders of
the relevant Company. With exception of the liquidation or the
insolvency of the relevant Company, any termination notice by the
Issuer will only take effect following the lapse of a waiting period
of 30 days (in the case of certain non-payment events) or 90 days
(in all other cases stipulated in the Participation Right Agreement).
The Issuer may not enforce its payment claims against the relevant
Company during such waiting period.
The Issuer has been granted certain regular information rights (in
particular, the right to receive financial statements) as well as
certain additional information rights in case the relevant Company's
creditworthiness deteriorates or certain non-payment events occur.
The claims of the Issuer are subordinated such that in case of
insolvency proceedings with respect to the assets of a Company, its
liquidation or a company crisis, the claims under the Participation
Right will be satisfied only after the full discharge of all claims of
the creditors of the relevant Company and pari passu with the
claims of the shareholders of such Company to restitution of
contributions (§ 199 Insolvency Act) or to distribution of the
liquidation proceedings. A company crisis will occur if, when
accounting for the claims under the Participation Right, any
illiquidity or over-indebtedness (§§ 17, 19 Insolvency Act) of the
relevant Company were to occur. The company crisis will terminate
if such circumstances no longer exist.
The Issuer is not entitled to participate in the distribution of the
liquidation proceedings with respect to the Company following the
discharge in full of its claims under the Participation Right
Agreement.
The Company will be obliged to make gross-up payments to the
Issuer in respect of any retentions or deductions of taxes from
payments, with the exception of amounts withheld on account of
German withholding tax (Kapitalertragsteuer) plus the solidarity
surcharge (Solidaritätszuschlag) thereon, in respect of which a
gross-up obligation of the Company arises only subject to certain
limited circumstances.
The Issuer is entitled to transfer the Participation Right Agreement
to a third party only subject to the condition that certain extended
information rights of the Issuer arise or that the term of the
Participation Right is extended beyond the scheduled term of
approximately seven years.
The Participation Right Agreement is governed by German law.
7. Listing
Application has been made to the Irish Financial Services
Regulatory Authority, as competent authority under Directive
2003/71/EC, for the Prospectus to be approved. Application has
been made to the Irish Stock Exchange for the Notes to be
admitted to the Official List and trading on its regulated market.
- 27 -
8. Bridge Facility
Pursuant to the Bridge Facility Agreement dated 1 December
2005, the Issuer has been granted a committed term loan facility
(the "Bridge Facility") by Commerzbank Aktiengesellschaft in
order to finance the investment in the Portfolio. The Issuer will
redeem the Bridge Facility by applying the proceeds from the issue
of the Notes. Interest accrued under the Bridge Facility up to the
Issue Date will be paid by the Issuer on 25 April 2006, provided
that the aggregate amount of interest to be so paid shall not exceed
EUR 4,000,000.
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RISK FACTORS
The following is a summary of certain aspects of the issue of the Notes and the related transactions
which prospective investors should consider before deciding to purchase the Notes. The following
statements are not exhaustive and prospective investors should consider all of the information
provided in this Prospectus and reach their own views prior to making any investment decision.
The Notes
General
Investment in the Notes is only suitable for purchasers who are highly sophisticated investors, who
understand the nature of such Notes and the extent of their exposure to risk and have sufficient
knowledge, experience and access to professional advisors to make their own legal, tax, accounting
and financial evaluation of the merits and risks of the investment in such Notes.
Subordination of the Notes
Payments of interest on and principal of Notes of a Class rank pari passu amongst themselves. In
relation to each other, payments of principal and interest in respect of the respective Classes of Notes
rank in accordance with the Priority of Payments. In addition, each of the Classes of Notes are
subordinated to the payment of certain other senior amounts payable by the Issuer, as set out under the
Priority of Payments.
The subordination levels of each Class of Notes have been established to reflect certain expected
deficiencies in payment caused by defaults on the portfolio of Participation Right Agreements. If,
however, actual payment deficiencies exceed such expected levels, the ability of the Issuer to make
payments on the Notes would be adversely affected. Whether and by how much defaults on the
Participation Right Agreements adversely affect each Class of Notes will be directly related to the
level of subordination thereof pursuant to the Priority of Payment.
Limited Liquidity
Application has been made to list the Notes on the regulated market of the Irish Stock Exchange.
However, there is currently no market for the Notes. There can be no assurances that a secondary
market for any of the Notes will develop, or if a secondary market does develop, that it will provide
the holders of such Notes with liquidity of investment or that it will continue. In addition, the Notes
are subject to certain transfer restrictions as described under "Transfer Restrictions" below.
Consequently, an investor in the Notes must be prepared to hold the Notes until maturity.
Transfer Restrictions
The Notes have not been registered under the Securities Act, under any U.S. state securities or "Blue
Sky" laws or under the securities laws of any other jurisdiction and are being issued and sold in
reliance upon exemptions from registration provided by such laws. No Note may be sold or transferred
unless such sale or transfer is exempt from the registration requirements of the Securities Act or
applicable securities laws.
Liability and Limited Recourse Obligations
The Notes represent obligations of the Issuer only, and do not represent obligations of the Trustee, the
Lead Manager and Arranger, the Co-Manager, the Cash Administrator, the Account Bank, the
Principal Paying Agent, the Investment Board, the Financial Advisor, the Recovery Advisor, the
Transaction Monitor, the Swap Counterparty or any of their respective affiliates or any affiliate of the
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Issuer or any other third person or entity (subject to any liability of the General Partner pursuant to
Jersey companies law). The Notes will not be insured or guaranteed by any governmental agency or
instrumentality or by the Trustee, the Lead Manager and Arranger, the Cash Administrator, the
Transaction Monitor, the Swap Counterparty or any of their respective affiliates or by any other person
or entity except as described herein.
The Notes are limited recourse debt obligations of the Issuer. The Notes are payable solely from the
Participation Right Agreements and other Collateral Assets in respect of which the Issuer has granted
a security interest to the Trustee in order to secure the obligations under the Notes and the other
secured obligations of the Issuer. No other person or entity will guarantee or be obligated to make
payments on the Notes (subject to any liability of the General Partner of the Issuer under Jersey
companies law, provided that the General Partner does not dispose of any substantial assets other than
its participation in the Issuer). There can be no assurance that the receipts from the Participation Right
Agreements and other Collateral Assets will be sufficient to satisfy all obligations of the Issuer. Two
Participation Rights in the aggregate initial nominal amount of EUR 11,500,000 are scheduled to
mature on 20 February 2013. It is therefore to be expected that the Issuer will not have sufficient funds
to amortise the Class F Notes and probably also parts of the Class E Notes on the Scheduled Maturity
Date, and amortisation is therefore expected to be deferred in an amount up to such nominal amount to
the next following Payment Date. The Issuer shall have no assets available for payment of its
obligations hereunder other than the Participation Right Agreements and other Collateral Assets.
Noteholders must rely solely on amounts received in respect of the Participation Right Agreements
and other Collateral Assets for the payment of principal and interest thereon. If such receipts are
insufficient to make payments on the Notes, no other assets will be available for payment of the
deficiency and, following liquidation of all the Collateral Assets, the obligations of the Issuer to pay
such deficiencies will be extinguished.
Early Redemption of the Notes
A ledger account will be maintained by or on behalf of the Issuer, in which will be debited (i) the
nominal amount of each Participation Right the related Participation Right Agreement of which has
been terminated or (ii) the nominal amount of each Participation Right Type A in respect of which a
remuneration amount has accrued but the related payment claim of the Issuer has not come into
existence under the related Participation Right Agreement Type A due to the lack of sufficient free
assets of the relevant Company, and credited (i) the amount of each early redemption payment (as
described in the following sentence) and (ii) each Principal Deficiency Reversal Amount (as defined in
Section 7.3 of the Terms and Conditions of the Notes). On any Payment Date on which such ledger
shows a debit balance, the Class A, Class B, Class C, Class D and Class E Notes (in that order) shall
be redeemed on the next following Payment Date in a total amount equal to the lesser of the amount
necessary to reduce the ledger to zero and the aggregate Note Principal Amount of the Class A, Class
B, Class C, Class D and Class E Notes, as described under the Terms and Conditions of the Notes –
Section 7.3. Early redemption of any Class of Notes presents reinvestment risk to investors in such
Class of Notes.
Event of Default
Following an Issuer Event of Default, each Noteholder will be entitled to accelerate the Notes held by
it. In this case, the Issuer will redeem all of the Notes (but not some only) at the then current Note
Principal Amount plus accrued but unpaid interest. In such an event it is likely that the net sums either
derived from, or realised on enforcement of the Collateral will be insufficient to meet all amounts due
to the Noteholders under the Notes.
Rating of the Notes
It is a condition of the issue and sale of the Notes that the Class A, Class B, Class C, Class D and
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Class E Notes be assigned the ratings indicated above. The ratings by S&P address timely payment of
interest and ultimate repayment of principal according to the Terms and Conditions of the Notes. The
ratings by Moody's address the expected loss posed to investors by the Legal Maturity Date. Other
non-credit risks have not been addressed, but may have a significant effect on yield to investors. A
rating is not a recommendation to buy, sell or hold any Notes, in as much as such rating does not
comment as to market price or suitability for a particular investor. There is no assurance that a rating
will remain for any given period of time or that a rating will not be lowered or withdrawn entirely by
the relevant Rating Agency if, in its judgment, circumstances in the future so warrant. In the event that
a rating initially assigned to any Class of Notes is subsequently lowered or withdrawn for any reason,
no person or entity is obliged to provide any additional support or credit enhancement with respect to
such Notes and the market value of such Notes is likely to be adversely affected. There can be no
assurance as to whether any other rating agency will rate the Notes or, if it does, what rating would be
assigned by such other rating agency. The rating assigned to the Notes by such other rating agency
could be lower than the respective ratings assigned by the Rating Agencies.
No Gross-Up in Respect of Notes
Although no withholding tax is currently imposed on the payments of interest on the Notes, there can
be no assurance that, as a result of any change in any applicable law, treaty, rule, regulation, or
interpretation thereof, the payments on the Notes would not in the future become subject to
withholding taxes. In the event that any withholding tax is imposed on payments on any Class of
Notes, the Issuer will not "gross-up" payments to compensate the Noteholders and no Event of Default
shall occur as a result of any such withholding tax.
The Issuer
The Issuer is a newly formed limited partnership and has no significant operating history. The Issuer
will not engage in any business activity other than the acquisition and (to a limited extent)
management of the Participation Right Agreements as described herein, the refinancing of the
portfolio of Participation Right Agreements initially by entering into a bridge facility with
Commerzbank Aktiengesellschaft and subsequently through the issue of the Notes, and other activities
incidental or related to the foregoing. Income derived from the Participation Right Agreements and the
other Collateral Assets will be the Issuer's principal source of income. A description of the Issuer is set
out under the heading "THE ISSUER" below.
The activities of the Issuer, the General Partner and the Limited Partner are contractually limited to
performing their respective roles in the Transaction. There can be no assurance that the Issuer, the
General Partner or the Limited Partner will restrict their respective business activities to the
Transaction. Any additional liabilities incurred by any of the Issuer, the General Partner or the Limited
Partner could adversely affect their respective ability to perform their obligations in connection with
the Transaction. Any such effect would materially adversely affect the Issuer's ability to perform its
obligations under the Notes.
Dependence on the Performance of third Parties
The Issuer has no employees and is dependent on the Trustee, the Investment Board, the Financial
Advisor, the Recovery Advisor, the Transaction Monitor, the Cash Administrator, the Account Bank
and other third parties to render advice and perform other services as set out in the relevant
Transaction Documents.
In particular, the Issuer's decision to enter into the Participation Right Agreements and potential future
decisions to dispose of any of such agreements or the exercise of its rights thereunder, and certain
other material decisions on matters relating to the Issuer's business will be taken by the Issuer upon
recommendation of the Investment Board on the basis of recommendations and information provided
to the Issuer by the Financial Advisor and/or the Recovery Advisor. In the context of giving
- 31 -
recommendations, such advisors will have broad discretion. If any of the assumptions, projections,
estimates and judgements made by such advisors in connection with the provision of their services to
the Issuer would be incorrect, the value of the Participation Rights could be materially adversely
affected and consequently, the Noteholders might suffer material loss.
As a result, the income of the Issuer and its ability to perform its obligations under the Notes is highly
dependent on the experience and ability of such parties to perform their respective obligations.
Furthermore, the liability of any such party in the event of inadequate performance or nonperformance may be limited by the provisions of the relevant contract (such as to wilful default or
gross negligence). In such case, the ability of the Issuer to recover damages incurred may be reduced,
which would adversely affect the amount available to make payments under the Notes.
Security Interest in the Collateral Assets; Trustee Claim
In addition to certain security interests granted by the Issuer to the Trustee pursuant to the English
Security Deed and the Jersey Security Agreement, the Issuer has granted a pledge (Pfandrecht) to the
Trustee under the Trust Agreement with respect to (i) all its present and future, actual and contingent
rights and claims against the Companies arising from the Participation Right Agreements, and (ii) all
its present and future, actual and contingent rights and claims arising under the Trust Agreement and
the other Transaction Agreements (excluding the Corporate Services Agreement, the English Security
Deed and the Jersey Security Agreement) in order to secure the Trustee Claim (Treuhänderanspruch)
granted under the Trust Agreement for the benefit of the Noteholders. The Trustee Claim entitles the
Trustee to demand that all present and future obligations of the Issuer towards the Bridge Lender
(prior to the issue of the Notes) and to the Noteholders (following the issue of the Notes) as well as
towards certain other secured creditors be fulfilled. There is no authority to the effect that the Trustee
Claim of the Trustee against the Issuer established by the Trust Agreement may not be validly created
as to enable the Trustee to demand payment from the Issuer in respect of changing creditors and
claims from time to time, and be validly secured by a pledge of the Issuer's claims as set forth in the
Trust Agreement. However, as there is no specific authority confirming the validity of such pledge
either, the validity of such pledge is subject to some degree of legal uncertainty.
Floating charges
It is of the essence of a fixed charge that the person creating the charge does not have liberty to deal
with the assets which are the subject matter of the security in the sense of disposing of such assets or
expending or appropriating the moneys or claims constituting such assets and accordingly, if and to
the extent that such liberty is given to the Issuer, any pledge or charge constituted by the Trust
Agreement or the English Security Deed may operate as a floating, rather than a fixed charge.
Under English law, whilst the English Security Assets are expressed to be subject to a fixed charge
pursuant to the English Security Deed, whether this charge will be upheld as a fixed charge rather than
a floating charge will depend, among other things, on whether an English court were to determine that
the Trustee has (under the English Security Deed or the Trust Agreement) the requisite degree of
control over the Issuer's ability to deal in the relevant assets and, if so, whether such control is
exercised by the Trustee in practice.
In the event that an English court were to recategorise the charge as a floating charge, the claims of the
Trustee would be subject to matters which are given priority over a floating charge by law, including
prior charges, lien holders, any expenses of any winding-up and the claims of preferential creditors
and unsecured creditors up to certain prescribed amounts.
Conflict of Interest of Transaction Creditors
Pursuant to the Trust Agreement, the Trustee shall, as regards all of its duties, obligations and
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discretions hereunder or under the Notes or the other Transaction Documents, except where expressly
provided otherwise, solely have regard to the interests of the Noteholders (and not the other
Transaction Creditors) and the interests of the Noteholders shall prevail in the event of any conflict of
interest between the Noteholders and any other Transaction Creditor. In the event of a conflict
between the interests of Noteholders of different Classes, the Trustee shall give priority to the Class
ranking senior in respect of the payment of interest pursuant to the Priority of Payments. In the event
of a conflict between the interests of Transaction Creditors other than the Noteholders, the Trustee
shall give priority to the Transaction Creditors ranking senior pursuant to the Priority of Payments.
Other Commercial Relationships of the Parties Involved
The Companies, the Liquidity Facility Provider, the Financial Advisor, the Investment Board
Members, the Transaction Monitor, the Cash Administrator, the Account Bank, the Recovery Advisor,
the Swap Counterparty, the Lead Manager and/or any of their affiliates, as well as the other parties to
the Transaction acting in their respective capacities, shall not, by virtue of acting in any such capacity,
be deemed to have other duties or responsibilities other than as expressly provided in the relevant
Transaction Documents with respect to each such capacity. Any such party may enter into business
dealings from which they may derive revenues and profits in addition to any fees stated in the various
documents, without any duty to account therefor and may from time to time be in possession of certain
information (confidential or otherwise) and/or opinions (including with regard to any Company) which
information and/or opinions might, if known by other parties (or individuals responsible for
monitoring or advising the Issuer) or any Noteholder, affect decisions made by it (or them), including
with respect to an investment in the Notes. Notwithstanding this, none of the parties to the Transaction
nor any of their affiliates shall have any duty or obligation to notify the Issuer, the Trustee, any
Noteholder or any other person thereof (save as expressly provided in the Transaction Documents).
The parties to the Transaction and their affiliates may also have ongoing relationships with the
Companies and may own notes or other obligations issued by them or deal in any obligation of a
Company and may accept deposits from, make loans or otherwise extend credit to, and generally
engage in any kind of commercial or investment banking, investment management or other business
transactions with, any Company or with each other and may act with respect to such transactions in the
same manner as if the Transaction Documents, the Transaction contemplated therein and the Notes did
not exist.
Participation Right Agreements
Operating Performance and Debt Service Capabilities of the Companies
The ability of the Issuer to meet its obligations under the Notes depends upon the general operating
performance and debt service capabilities of the Companies. There can be no assurance that the
Companies will be able to generate the funds necessary to meet their respective payment obligations
under the Participation Right Agreements. If any Companies should become unable to meet their
payment obligations under the Participation Right Agreements, the Issuer's ability to pay interest
and/or principal under the Notes would be adversely affected.
Contingent Payment Obligations
The obligations of Companies under Participation Right Agreements Type A to pay remuneration will
arise only if and to the extent that a balance sheet profit which is available for distribution is reported
for the relevant preceding financial year in the relevant Company's audited financial statements or
could be reported by releasing equity components which are not legally protected against distribution
(free reserves) or tax-free reserves. If and to the extent that a remuneration claim for a financial year
does not arise due to the foregoing condition, advance payments on remuneration which have been
made by the relevant Company to the Issuer will have to be repaid by the Issuer. The Companies may
claim repayment of such amounts irrespective of the order set forth in the Priority of Payments.
However, such claims would be subject to the limited recourse and non-petition provisions. Any
- 33 -
payment claim for principal or remuneration under the Participation Right Agreements Type A shall
not come into existence if and to the extent the relevant Company demonstrates that on the date on
which such payment claim would otherwise arise (or during the preceding period of fifteen days) such
payment could only be made out of protected equity capital of the relevant Company (as defined in § 8
of the Participation Right Agreements Type A).
Pursuant to the terms of the Participation Right Agreements Type B, the obligation of the relevant
Companies to pay floating remuneration shall only arise if and to the extent that their respective return
on sales (as defined in § 2.3 of the Participation Right Agreements Type B) exceeds certain thresholds.
There can be no assurance that the Companies will generate sufficient balance sheet profits, dispose of
sufficient free equity capital and generate sufficient return on sales in order that the conditions for the
relevant payment claims under the Participation Right Agreements will arise as described in the
preceding paragraphs, and the Issuer's ability to make payments under the Notes will be adversely
affected if such conditions are not satisfied.
Loss Participation
The repayment amount under the Participation Right Agreements Type A shall be decreased by an
annual deficit report in the audited financial statements of the relevant Companies, if and to the extent
such deficit would otherwise have to be covered by protected equity capital and cannot be absorbed by
other financing instruments subject to loss participation ranking junior to the relevant Participation
Right Agreements. Any such loss participation, unless recovered out of future annual surpluses, would
reduce the obligations of the relevant Companies to repay the nominal amount of the respective
Participation Right and consequently, the ability of the Issuer to meet its obligations under the Notes
would be adversely affected.
Subordination of Claims under the respective Participation Right Agreements
The payment obligations of the Companies under the Participation Right Agreements constitute
unsecured obligations which are subordinated in the Company's liquidation or insolvency or in case of
a company crisis to all existing and future indebtedness of the Companies in such manner that such
claims will rank junior to (and shall therefore only be satisfied after full satisfaction of) all present and
future claims of creditors of the relevant Company and pari passu with the claims of the shareholders
of such Company to restitution of contributions (§ 199 Insolvency Act) or to distribution of the
liquidation proceedings. A company crisis is defined to occur if, when accounting for the claims under
the relevant Participation Right, any illiquidity or over-indebtedness (§§ 17, 19 of the Insolvency Act)
of the relevant Company were to occur. The company crisis will terminate if such circumstances no
longer exist. By virtue of such subordination, the investments of the Issuer in the Companies bear a
higher credit risk compared to senior lenders. In a liquidation, insolvency or a company crisis,
investors should therefore expect that the Issuer will suffer a significant or total loss of the funds
invested in the relevant Company, and its ability to meet its obligations under the Notes would be
adversely affected accordingly.
Limitation of Issuer’s Right to terminate Participation Right Agreements
The Issuer will be entitled to an early termination of the Participation Right Agreements for good
cause (aus wichtigem Grund) only. Good cause for an extraordinary termination by the Issuer
includes, among other things, certain events of non-payment by the Company, the breach of certain of
its obligations, certain distributions or withdrawals, the occurrence of a change of control with respect
to the Company, or the liquidation or insolvency of the Company. However, other than in connection
with such extraordinary circumstances, a material impairment of the economic condition of the
relevant Company will not entitle the Issuer to terminate the Participation Right Agreement. In such
case, the Issuer will therefore remain fully exposed to a deterioration of the Companies' financial
condition for the term of the Participation Right Agreement.
- 34 -
The Issuer is obliged to give written notice of any extraordinary termination to certain senior lenders
of the relevant Company. With exception of the liquidation or the insolvency of the relevant
Company, any termination notice by the Issuer will only take effect following the lapse of a waiting
period of 30 days (in the case of certain non-payment events) or 90 days (in all other cases stipulated
in the Participation Right Agreement). The Issuer may not enforce its payment claims against the
relevant Company during such waiting period. These provisions are designed to protect senior bank
lenders against the withdrawal of the subordinated funds provided by the Issuer to the Companies.
Limited Restrictions on the Incurrence of Additional Debt
The Companies have agreed in the Participation Right Agreements not to issue further financing
instruments with profit-linked or profit-oriented remuneration and financing instruments which would
be subordinated in the insolvency of the respective Company without the Issuer's prior written
approval, provided that such financing instruments would pursuant to their terms rank senior to the
relevant Participation Right Agreement. The Companies have not entered into any other restrictive
covenants in connection with the Participation Right Agreements regarding their ability to incur
additional indebtedness, and any such additional indebtedness could adversely affect the ability of the
relevant Company to meet its payments obligations under the Participation Right Agreement to which
it is a party.
Companies' Covenants
The Companies have agreed to certain other covenants such as dealing with certain affiliated parties
on arm's length terms only, maintaining adequate insurance cover and procuring distributions or
withdrawals from subsidiaries in order to meet liquidity requirements. The non-compliance with such
covenants could materially affect the relevant Companies' ability to meet their respective payment
obligations under the Participation Right Agreements.
Probability of Default Credit Ratings
The Companies with which the Issuer enters into Participation Right Agreements have been proposed
by the Financial Advisor and the Investment Board, and selected by the Issuer solely based on the
"probability of default credit ratings" assigned to such Companies using the Moody's KMV RiskCalc ™
Model and a rating by Commerzbank Aktiengesellschaft with a view to achieving a certain target
average credit quality and diversification of the portfolio of companies as indicated by the "probability
of default credit ratings". The Issuer has not undertaken to make any other investigation into the
matters of the Companies, and none of the parties involved in the Transaction has undertaken to make
any such investigations, including into matters that would be considered relevant in connection with
the assessment of a qualitative credit rating. Accordingly, none of the Issuer and the other parties to
the Transaction will assume any liability in connection with the potential inability of Companies to
meet their payment obligations under the Participation Right Agreements.
The basis on which the "probability of default credit ratings" have been assigned to the Companies is
Moody's KMV Company's RiskCalc™ tool. The assessment of the risk that a debtor will, within the
next five years, be unable to meet any of its payment obligations within 90 days after such obligation
falls due ("probability of default") generated by the Moody's KMV RiskCalc™ tool is limited to a
statistical analyses of the audited financial statements provided by the Companies. It does not include
any qualitative assessment of the Companies such as the market position of its products and services,
its competitive position and the quality of its management. Furthermore, it does not take into account,
on an individual debtor basis, particular risk-enhancing circumstances, such as the relevant Company
forming part of a group of companies, a Company's participation in group-wide cash pooling
arrangements as a creditor to its affiliate, or the existence of domination and/or profit and loss
absorption agreements under which the Company may be dominated party (that is, effectively
managed by and/or financially integrated with an affiliate). The statistical analysis involves only a
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comparison of the financial data provided by a company against benchmark financial ratios generated
by Moody's KMV on the basis of a database of historical financial information of a large number of
companies. The probability of default credit ratings assigned by Moody's KMV to the Companies
using the RiskCalc™ tool as set out in this Prospectus are therefore not comparable to public ratings
assigned by Moody's Investors Services Inc.
The probability of default credit ratings assigned using the Moody's KMV RiskCalc™ tool rely on the
accuracy of the financial statement data provided by the Companies. The audited financial statement
data provided by the Companies has not been and will not be independently reviewed or verified by
Moody's KMV, Moody's or any other party involved in the Transaction. Neither Moody's KMV,
Moody's nor any other party to the Transaction gives any statement as to the accuracy of such audited
financial statement data. Moreover, there can be no assurance that the actual probability of some or all
of the Companies becoming unable to meet their payment obligations prior to the full repayment of the
Notes is not higher than is implied by the probability of default ratings set forth in this Prospectus. It is
intended that the probability of default ratings of each of the Companies will be updated on an annual
basis prior to the Scheduled Maturity Date using the Moody's KMV RiskCalc ™ tool. The probability
of default ratings set forth in this document are therefore subject to change depending on the future
financial information available for the Companies.
The financial information upon which the probability of default ratings assigned to the Companies
under Moody's KMV RiskCalc™ Model are based and which are reflected in the tables and
descriptions in "THE COMPANIES" are derived from the audited financial statements provided by the
Companies for their respective fiscal year ended 2004/2005, as the case may be. Audited financial
results for the Companies as of any later date were not completed or not available at the time of
preparation of this Prospectus. As a result, the current financial status of each Company, including its
recent income and assets, may vary from its financial status as portrayed in this Prospectus. Any
deterioration of a Company’s financial condition may adversely affect its ability to meet its payment
obligations under the relevant Participation Right Agreement to the Issuer.
Sale of Participation Right Agreements
In the event that the rights and obligations of the Issuer in relation to a Participation Right Agreement
are sold by the Issuer in accordance with the terms and conditions of such Participation Right
Agreement, it is highly unlikely that the full nominal value of the Repayment Amount under such
Participation Right Agreement can be realised upon such sale. The extent of the proceeds that may be
realised upon such sale will necessarily depend upon the existence of a secondary market for the
distressed Participation Right Agreements and on the prevailing market conditions at such time and
the performance of the Recovery Advisor who will be responsible for managing such recovery
process. Moreover, since Participation Right Agreements will only become subject to sale upon the
occurrence of certain credit events, it is likely that the Issuer will experience a significant discount
against the Repayment Amount upon the sale of Participation Right Agreements. In addition, a sale of
a Participation Right Agreement is subject to certain transfer restrictions and conditions, including to
potential rights of objection as well as notice requirements, which may delay or prevent the sale and
possibly reduce the value of the Participation Right Agreement. To the extent that the Issuer is unable
to realise the full nominal value of a Participation Right Agreement upon a sale, its ability to make
payments due under the Notes will be materially and adversely affected.
Investment Risks Resulting from Permitted Investments
The Cash Administrator will on behalf of the Issuer invest certain funds in Permitted Investments.
Funds of the Issuer not invested in Permitted Investments will be held in a cash account maintained
with the Account Bank. In an event of default due to the insolvency or other reasons of any obligor
under the Permitted Investments or of the Account Bank, the Issuer will suffer a loss and its ability to
meet its obligations under the Notes will be adversely affected. None of the other parties to the
Transaction will be responsible for any such loss.
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Liquidity Facility
In respect of each Payment Date, the Issuer will borrow funds from the Liquidity Facility Provider
under the Tax Liquidity Facility Agreement in order to cover liquidity shortfalls arising from German
Withholding Tax amounts withheld by the Companies from payments under the Participation Right
Agreements made to the Issuer. However, the total amount of funds available for borrowing by the
Issuer under the Tax Liquidity Facility Agreement is equal to the total Commitment amount of
EUR 9 million. If the liquidity shortfall caused by the amounts withheld by the Companies on account
of German Withholding Tax should exceed the Commitment, the amounts the Issuer could borrow
under the Tax Liquidity Facility Agreement would not be sufficient to cover the total amount of such
liquidity shortfall. As a result, the Issuer would have fewer funds available to make payments on the
Notes.
The amount of the Commitment is calculated to compensate the expected Withholding to be made by
the Companies on all payments to the Issuer for a period covering 27 months. Were the German tax
authorities to take longer than expected to pay on or deny the refund, the amount withheld but not
refunded or reimbursed could be greater than the Commitment and the Issuer would, to the extent of
the excess, have fewer funds available for payments on the Notes.
The Commitment could also prove to be insufficient if the Limited Partner does not make
Reimbursement Payments as envisaged. In the event of the insolvency of the Limited Partner, the
insolvency administrator could refuse to honour the terms of the Tax Reimbursement Agreement.
Although in such case the Issuer's partnership agreement provides that the Limited Partner be
replaced, any Tax Refund Claims of the insolvent Limited Partner having remained unrefunded by the
German tax authorities, or refund payments on such claims received by the Limited Partner but not onpaid to the Issuer, at that point would fall into the insolvency estate and would be unavailable to the
Issuer. The Issuer has recourse to the Companies only for refunds denied by the German tax
authorities. If the refunds were granted and lost to the insolvency estate, then the amounts borrowed on
the basis of these refunds would need to be repaid by the Issuer from its assets, and the amount
available for making payments on the Notes would be reduced accordingly.
Each Liquidity Advance made pursuant to the Tax Liquidity Facility Agreement shall become
repayable on the Payment Date following the relevant Drawdown Date. The amounts available on
each Payment Date to the Issuer under the Tax Liquidity Facility in order to re-borrow such repayment
amounts and finance additional Withholding amounts are limited to the aggregate amount of
Withholdings at such time in respect of which the Issuer certifies that it has not received notice that the
credit or refund of such Withholdings has been finally denied by the tax authorities or the competent
courts (as applicable), less the aggregate of the Reimbursement Payments previously received by the
Issuer from the Limited Partner pursuant to the Tax Reimbursement Agreement. The Liquidity Facility
Provider shall have no obligation to make further Liquidity Advances in respect of Withholdings the
credit or refund of which has been finally denied by the tax authorities or the competent courts (as
applicable). Although the Companies have committed under the Participation Right Agreements to
make additional payments if and to the extent that the German tax authorities have determined that the
Limited Partner is not entitled to a tax refund on account of a Tax Refund Claim, there can be no
assurance that the Companies will be willing to make, or are capable of making, such payments upon
demand by the Issuer. In such case, the ability of the Issuer to make the full scheduled payments under
the Notes will depend on the ability and willingness of the Companies to pay the additional amounts
owed under the Participation Right Agreements. Any Company having become obliged to make such
gross-up payments shall be entitled to terminate the relevant Participation Right Agreement for good
cause. As a consequence of such termination, the Notes might become subject to a (partial) early
redemption. Moreover, as regards the Participation Right Agreements Type B the relevant Companies
would, instead of exercising their right to an extraordinary termination, also be entitled to declare the
conversion of the related Participation Right into a fixed-rate subordinated loan. In this case, the
obligation of the relevant Companies to pay the floating component of the remuneration would
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terminate and the revenues of the Issuer would therefore be decreased accordingly.
Projections, Forecasts and Estimates
Any projections, forecasts and estimates contained herein are not purely historical in nature, but are
forward looking statements and are based upon information furnished by third parties to the Issuer and
certain assumptions that the Issuer considers reasonable, subject to uncertainties as to circumstances
and events that have not yet taken place. Hence, any such projections, forecasts and estimates are
subject to material variation. Moreover, projections are necessarily speculative in nature, and it can be
expected that some or all of the assumptions underlying the projections will not materialize or will
vary significantly from actual results. Accordingly, there can be no assurance that any projected or
forecasted results will be attained and the actual results may materially vary from the projections.
None of the Issuer, the Trustee, the Financial Advisor, the Investment Board, the Transaction Monitor,
the Cash Administrator, the Account Bank, the Swap Counterparty, the Liquidity Facility Provider, the
Lead Manager, the Recovery Advisor, the Disposal Advisor and their respective affiliates has any
obligation to update or otherwise revise any projections, including any revisions to reflect changes in
economic conditions or other circumstances arising after the date hereof or to reflect the occurrence of
unanticipated events, even if the underlying assumptions are incorrect.
Taxation
Application of Thin Capitalisation Rules
The German tax authorities might take the position that the thin capitalisation rules set forth in § 8a of
the German Corporate Income Tax Act (Körperschaftsteuergesetz) would apply to purchasers of the
Notes who are holding an equity interest in a Company or are a party related to such equityholder
within the meaning of § 1 para. 2 of the German Foreign Tax Act. The tax authorities could argue that,
in this case, the money paid by the relevant purchaser of a Note has to be treated as a loan granted by
such purchaser to the Company in which the purchaser (or a related person of the purchaser) is an
equityholder. However, since the Issuer has entered into Participation Right Agreements with a
number of Companies, it should be impossible for the tax authorities to allocate the money paid by a
certain purchaser of a Note to a specific Company and, consequently, to subject such purchase of a
Note to the German thin capitalisation rules. An application of the German thin capitalisation rules
could have adverse effects on the Companies in which such equity interests are held. In addition, the
income derived under Notes held by equity holders of a Company or by persons who are related to
such equityholders might be reclassified as dividend income. Prospective purchasers of Notes who are
equityholders of a Company or persons who are related to such equityholders are advised to consult
their tax advisors as regards this risk.
Liability of the Issuer to German taxes on profits
The Issuer is treated as tax transparent for German corporate income tax purposes and would therefore
not be subject to such tax in respect of business profits derived by it. However, business profits
derived by the Issuer would be subject to German corporate income tax (plus solidarity surcharge
thereon) at the level of the Limited Partner, which is domiciled and tax resident in Germany, in
proportion to its respective participation in the profits of the Issuer. The business profits derived by the
Issuer would also be subject to German corporate income tax (plus solidarity surcharge thereon) at the
level of the General Partner (in proportion of its respective participation), if the General Partner had its
place of effective management and control in Germany, or otherwise maintained a permanent
establishment (Geschäftsleitung or Betriebsstätte), or appointed a permanent representative (ständiger
Vertreter), for its business in Germany.
In calculating the corporate income tax base based on the income derived by the Issuer and attributable
to the Limited Partner (and, if applicable, the General Partner), the Limited Partner (and, if applicable,
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the General Partner) would, however, be entitled (subject to the preceding subsection entitled "Thin
Capitalisation Rules") to deduct all expenses accrued or provisioned for in a given tax year, including
the interest payable on the Notes during such year. Depending on the profit to be allocated to the
respective Partner, the Partner could be expected to have a relatively small if not a flat corporate
income tax base. The Limited Partner is subject to corporate income tax (plus solidarity surcharge
thereon) and trade tax in Germany, but the income derived from the participation in the Issuer would
be exempted from trade tax. However, if the activities performed by the Issuer or by third parties on
the Issuer's behalf were not regarded as trade or business, but as a non commercial asset management
(Vermögensverwaltung), the assets and liabilities of the Issuer would, in proportion to the Limited
Partner's participation in the Issuer, be directly allocated for trade tax purposes to the Limited Partner,
and the Limited Partner would be liable for trade tax on the income derived from the participation in
the Issuer. In calculating the net income which would be subject to trade tax, the Limited Partner
would also have to include half of the interest payments made by the Issuer under the Notes. There is a
large number of court decisions and rulings issued by the tax authorities on the distinction of a trade or
business and a non commercial activity. According to these decisions and rulings, in particular the
following characteristics may be indications for a trade or business: the use of debt financing, the
maintaining of an office or an organisation to carry out business, the exploitation of a market using
professional expertise and experience, and the offering of services to a broad public. Based on such
court decisions and guidance given by the tax authorities, the Issuer believes that the activities
performed by it should be regarded as trade or business: Although the Issuer maintains only a small
organisation for its activities, it has employed the services and professional expertise of several service
providers (like the Financial Advisor, the Transaction Monitor and the Cash Administrator) which
perform various administrative functions on behalf of the Issuer. The Issuer almost exclusively
operates with debt financing. By entering into the Participation Right Agreements and by publicly
offering the Notes to investors, the Issuer offers its services to a broad public. And finally, the number
and the volume of the Participation Right Agreements concluded by the Issuer, by itself, argue for a
trade or business. However, since there is no specific guidance available on the activities carried out
by the Issuer, there can be no assurance that the tax authorities or a German tax court would agree with
this assessment.
Although the Issuer is treated as transparent for German corporate income tax purposes, the Issuer is
not treated as tax transparent for the purposes of German trade tax. Consequently, the Issuer would be
subject to such tax in respect of its business profits if it had its place of effective management and
control in Germany or otherwise maintained a permanent establishment for its business in Germany.
In such a case, only the net income derived by the Issuer which is attributable to such permanent
establishment would be subject to German trade tax. In calculating the net income which would be
subject to trade tax, the Issuer would also have to include half of the interest payments made by the
Issuer under the Notes if the tax authorities took the position that the long-term indebtedness incurred
by the Issuer under the Notes could not be attributed to any non-German permanent establishment of
the Issuer.
For German tax purposes, the place of effective management and control of an entity is defined as the
place where the preponderance of managerial decisions is taken that are relevant in conducting the
day-to-day business of such entity. The place of effective management and control constitutes a
permanent establishment. A permanent establishment is otherwise constituted by any fixed place of
business or facility which serves the purposes of the relevant entity and over which the entity's
management has effective power of disposal (Verfügungsmacht), such as an office or a branch.
Furthermore, an entity would be deemed to have a permanent establishment in Germany, if it had
appointed a permanent representative for its business in Germany. A permanent representative of an
entity is defined as a person who habitually acts in an agency capacity and subject to the instructions
of the relevant entity in respect of business dealings of such entity, in particular concludes contracts in
the name of such entity or acts as an intermediary with respect to contracts concluded by such entity.
Of the activities performed in Germany, the only activity which might, for tax purposes, be attributed
to the Issuer could be the functions performed by the Financial Advisor, the Recovery Advisor and the
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Disposal Advisor. Although these functions are economically significant for the business operations of
the Issuer, the Financial Advisor, the Recovery Advisor and the Disposal Advisor will merely act in an
advisory capacity and will only perform certain administrative functions. In particular, neither the
Financial Advisor nor the Recovery Advisor nor the Disposal Advisor will enter into contracts in the
name of and with a binding effect on the Issuer.
All management decisions regarding the acquisition and, if applicable, the termination of the
Participation Rights advised and proposed by the Financial Advisor will be taken outside of Germany
by the Issuer based on a proposal made outside of Germany of the Investment Board the majority of
whose members are non-German resident with a qualified professional background (meaning not less
than five years' experience either in the banking industry including experience in credit decisions, or
from a career as a chartered accountant) that enables them to make investment recommendations and
are not employed by, and independent from, the Financial Advisor. The same applies with respect to
all material decisions concerning the administration of the Participation Right Agreements (including
the exercise of additional information rights under the Participation Right Agreements, in particular
the instruction of the Recovery Advisor), which are prepared by the Financial Advisor by submitting
information and making proposals. The same also applies with respect to all agreements the Issuer
may enter into regarding any disposals of Participation Rights (as far as permitted under the relevant
agreements) which are based on a proposal made by the Investment Board on the basis of the data and
information received from the Recovery Advisor and/or Disposal Advisor.
Based upon these considerations, the Issuer believes that its core management functions would not be
performed in Germany, it would not have the power to dispose of business premises in Germany, it
would not engage in the activities of a person having the power to bind it contractually and
consequently, the Issuer would not be treated as being effectively managed and controlled or
otherwise maintaining a permanent establishment, or as having appointed a permanent representative,
in Germany.
Investors should note however, that there are no precedents available on whether activities such as
performed by the Financial Advisor, the Recovery Advisor and/or the Disposal Advisor in Germany
would constitute a permanent establishment at the place of effective management and control of the
Issuer in Germany and consequently, there can be no assurance that the German tax authorities or
courts would agree with the above assessment. If the Issuer were viewed as maintaining a permanent
establishment at its place of effective management and control, or otherwise, in Germany, trade tax
would arise with respect to the net income derived by the Issuer which is attributable to its German
permanent establishment. In particular, if the tax authorities took the position that the long-term
indebtedness incurred by the Issuer under the Notes could not be attributed to any non-German
permanent establishment of the Issuer, in calculating the net income subject to trade tax the Issuer
would also have to include half of the interest payments made by the Issuer under the Notes.
Application of the German Investment Tax Act
The Issuer will be acquiring and (subject to certain conditions) disposing of a diversified portfolio
consisting of the Participation Rights. Due to this fact and to further circumstances, a German resident
Noteholder could be viewed as having acquired in substance units of a foreign investment fund, i.e. an
asset that represents units in respect of a portfolio of assets within the meaning of the German
Investment Act (Investmentgesetz; "IA"), which portfolio consists of securities or other eligible assets
falling within the scope of the IA and is invested according to the principle of risk diversification as
required by §§ 1, 2nd sentence, 2 para. 8 IA.
There are good and valid reasons why the Class A Notes, the Class B Notes, the Class C Notes, the
Class D Notes, the Class E Notes and the Class F Notes should not be treated as falling under the IA.
First of all, it is doubtful whether the underlying Participation Right Agreements can be regarded as
eligible assets falling within the scope of the IA. As the Participation Rights are granted by way of a
contract, they do in the view of the Issuer not qualify as "securities" within the meaning of § 2 para 4
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no. 1 IA. There is, however, a risk that they might be viewed as "participations in business ventures
having an appraisable market value" within the meaning of § 2 para 4 no. 8 IA. Moreover, Permitted
Investments may include assets which qualify as "securities" within the meaning of the IA.
At least the holders of the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes, the
Class E Notes and the Class F Notes will not, in the ordinary course of the transaction, effectively
participate in the Issuer's profits or losses. According to a Federal Ministry of Finance circular dated
2 June 2005, CDOs (as defined therein and, according to such definition, including the Notes to be
issued by the Issuer) do not constitute investment units if the investors do not effectively participate in
the issuer's profits or losses. However, there is some risk that the relevant tax authorities would view
the Class F Notes differently. Based on the said circular, the Class F Notes would nevertheless not
qualify as foreign investment units if, apart from the substitution of securities (Schuldtitel) for the
purpose of ensuring the size, the maturity and the risk structure, only up to 20% p.a. of the assets
(Vermögen) of the Issuer may, pursuant to the contractual terms, be traded on a discretionary basis. As
the Issuer is not allowed to trade the portfolio comprised of the Participation Rights (i.e. to sell and
acquire such assets), but may merely dispose of the Participation Rights previously acquired (subject
to certain conditions being met), and given that the Transaction Monitor has undertaken to give
instructions to the Cash Administrator to invest amounts credited to the accounts of the Issuer in
Permitted Investments (as defined in the Cash Administration Agreement) or dispose of Permitted
Investments provided that the aggregate amount per annum of such investments shall not exceed 20%
of the assets (Vermögen) of the Issuer, the Notes should not qualify as foreign investment units.
Moreover, given that the Issuer qualifies as a foreign partnership, the assets held by the Issuer should
not fall under the scope of the ITA, as the said Federal Ministry of Finance circular specifically
excludes the assets of non-German partnerships from the application of the ITA.
It may be expected that the tax authorities follow the interpretation of the IA and ITA as laid down in
the Federal Ministry of Finance circular dated 2 June 2005 and that, if they decide to adopt a different
position, they would – although this cannot be ruled out entirely – not do this with retroactive or
retrospective effect. The tax authorities may, however, change their position with effect for the future.
In addition, it needs to be noted that the circular has no binding effect on tax courts and that it cannot
be ruled out that a tax court would take a different position and characterise the Notes as investment
units. If this were the case or if, to some extent contrary to expectations, the tax authorities changed
their position with respect to a characterisation of CDOs as investment funds, it cannot be ruled out
that the entire issue of Notes could be qualified as investment units as a consequence. If one or more
Classes of Notes were to be qualified as investment units within the IA, the tax rules of the ITA would
apply.
If the Notes were to be characterised as investment units under the IA, a German Noteholder would, in
principle, be taxed annually based on the distributions, interim earnings (Zwischengewinn) and, in
addition, 70% of the excess of the last determined redemption price, market price or stock exchange
price of the underlying units for the calendar year over the first determined redemption price, market
price or stock exchange price of the underlying units for the calendar year; in any case a minimum of
6% of the redemption price, market price or stock exchange price last determined for the calendar year
is taken into account in accordance with § 6 ITA.
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TERMS AND CONDITIONS OF THE NOTES
The Terms and Conditions of the Notes are set out below. In case of any overlap or inconsistency in
the definition of a term or expression in the Terms and Conditions and elsewhere in this Prospectus,
the definition in the Terms and Conditions will prevail.
1.
DENOMINATION AND FORM; DEFINITIONS
1.1
Principal Amounts
CB MezzCAP Limited Partnership (acting through its general partner CB MezzCAP Limited)
(the "Issuer") issues the following classes of notes in bearer form (each, a "Class" and
collectively, the "Notes") pursuant to these terms and conditions (the "Terms and
Conditions"):
(i)
Class A Floating Rate Notes due 25 October 2036 ("Class A Notes") which are issued in
the aggregate principal amount of EUR 137,800,000 and divided into 1,378 Notes, each
having a principal amount of EUR 100,000;
(ii)
Class B Floating Rate Notes due 25 October 2036 ("Class B Notes") which are issued in
the aggregate principal amount of EUR 20,000,000 and divided into 200 Notes, each
(iii)
Class C Floating Rate Notes due 25 October 2036 ("Class C Notes") which are issued in
(iv)
Class D Floating Rate Notes due 25 October 2036 ("Class D Notes") which are issued in
(v)
Class E Floating Rate Notes due 25 October 2036 ("Class E Notes") which are issued in
the aggregate principal amount of EUR 7,700,000 and divided into 77 Notes, each having
a principal amount of EUR 100,000;
(vi)
Class F 17% Notes due 25 October 2036 ("Class F Notes") which are issued in the
aggregate principal amount of EUR 9,000,000 and divided into 90 Notes, each having a
principal amount of EUR 100,000.
The Notes will be issued on 11 April 2006 (the "Issue Date").
The holders of the Notes are referred to as the "Noteholders".
1.2
Global Notes
Each Class of Notes issued will be initially represented by a temporary global note in bearer
form (each, a "Temporary Global Note") without coupons. The Temporary Global Notes shall
be exchangeable (in whole or in part), as provided in Section 1.3 below, for permanent global
notes in bearer form (each, a "Permanent Global Note") without coupons. Definitive Notes
and interest coupons will not be issued. Each Temporary Global Note and each Permanent
Global Note is also referred to herein as a "Global Note" and, together, as "Global Notes".
Each Permanent Global Note shall be kept in custody by JP Morgan Chase Bank, N.A. (London
Branch), as common depositary (the "Common Depositary") for Euroclear Bank S.A./N.V., as
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operator of the Euroclear Systems ("Euroclear"), and Clearstream Banking, société anonyme,
Luxembourg ("Clearstream Luxembourg"), until all obligations of the Issuer under the Notes
represented by it have been satisfied.
1.3
Exchange of Temporary Global Notes
The Temporary Global Notes shall be exchanged for the Permanent Global Notes on a date (the
"Exchange Date") not earlier than 40 days and not later than 180 days after the Issue Date of
the Temporary Global Notes upon delivery by the relevant participants (each a "Euroclear
Participant" or a "Clearstream Luxembourg Participant") to Euroclear and Clearstream
Luxembourg, as relevant, and by Euroclear or Clearstream Luxembourg, as relevant, to the
Principal Paying Agent, of certificates in the form which forms part of the Temporary Global
Notes and are available from the Principal Paying Agent for such purpose, to the effect that the
beneficial owner or owners of the Notes represented by the relevant Temporary Global Note is
not a U.S. person or are not U.S. persons other than certain financial institutions or certain
persons holding through such financial institutions. Each Permanent Global Note delivered in
exchange for the relevant Temporary Global Note shall be delivered only outside of the United
States. "United States" means, for the purposes of this Section 1.3, the United States of
America (including the States thereof and the District of Columbia) and its possessions
(including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the
Northern Mariana Islands). Any exchange of a Temporary Global Note pursuant to this
Section 1.3 shall be made free of charge to the Noteholders.
1.4
Execution
Each Global Note is manually signed on behalf of the Issuer and authenticated on behalf of the
Principal Paying Agent.
1.5
Definitions
Defined terms used but not defined herein shall have the same meaning as in Appendix A hereto
(The Trust Agreement).
2.
RIGHTS AND OBLIGATIONS UNDER THE NOTES
2.1
Status of the Notes
The Notes constitute direct and unsubordinated obligations of the Issuer ranking pari passu
amongst themselves and at least pari passu with all current and future obligations of the Issuer
(subject to the Priority of Payments). The Notes are unsecured (provided that the Noteholders
will benefit from certain security interests granted by the Issuer to the Trustee) and constitute
limited recourse obligations of the Issuer.
2.2
Obligations under the Notes
The Notes represent obligations of the Issuer only, and do not represent obligations of the
Trustee, the Lead Manager and Arranger, the Co-Manager, the Cash Administrator, the Account
Bank, the Paying Agents, the Investment Board, the Financial Advisor, the Recovery Advisor,
the Transaction Monitor or any of their respective affiliates or any affiliate of the Issuer or any
other third person or entity (subject to any liability of the General Partner pursuant to Jersey
companies law). The Notes will not be insured or guaranteed by any governmental agency or
instrumentality or by the Trustee, the Lead Manager and Arranger, the Cash Administrator, the
Transaction Monitor or any of their respective affiliates or by any other person or entity except
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as described herein.
2.3
Priority of Payments
On each Payment Date, all available Issuer Receipts as determined on the immediately
preceding Determination Date will be distributed towards the discharge of the due and payable
claims of the Noteholders and the other creditors of the Issuer in the following order of priority
(the "Priority of Payments"):
(1)
to pay pari passu with each other on a pro rata basis any obligation of the Issuer in
respect of Maintenance Expenses;
(2)
to pay pari passu with each other on a pro rata basis all Agent Fees, provided that
total amount paid under this paragraph (2) on any Payment Date shall not exceed
the Agent Fees Cap Amount;
(3)
to pay pari passu with each other on a pro rata basis all Administrative Expenses,
provided that total amount paid under this paragraph (3) on any Payment Date shall
not exceed the Administrative Expenses Cap Amount;
(4)
to pay to the Liquidity Facility Provider any interest, principal, commitment fee
and other due amounts pursuant to the Tax Liquidity Facility Agreement;
(5)
to pay to the Swap Counterparty any payment under the Hedging Agreement other
than termination payments arising by virtue of the Swap Counterparty being (aa)
the Defaulting Party (as defined in the Hedging Agreement) or (bb) the sole
Affected Party (as defined in the Hedging Agreement) under an Additional
Termination Event (as defined in the Hedging Agreement) set out in Part 5(h)(v)
(Consequences of Rating Events) of the Schedule to the Hedging Agreement;
(6)
to pay pari passu with each other on a pro rata basis all Service Provider Fees,
provided that total amount paid under this paragraph (6) on any Payment Date shall
not exceed the Service Provider Cap Amount;
(7)
to pay any claims of the Companies arising pursuant to the terms of the
Participation Rights Type A due to the netting of the yearly remuneration claim of
the Issuer and the advance payments received in respect thereto by the Issuer;
(8)
to pay due and payable Class A Notes Interest;
(9)
to repay the principal of the Class A Notes until all Class A Notes have been
redeemed in full, provided that prior to the Scheduled Maturity Date the total
amount paid under this paragraph (9) shall not exceed the Principal Available as of
the relevant Determination Date;
(10) to pay due and payable Class B Notes Interest;
(11) to repay the principal of the Class B Notes until all Class B Notes have been
amounts paid under this paragraph (11) shall not exceed the Principal Available as
of the relevant Determination Date as reduced by the amounts determined pursuant
to paragraph (9) above;
(12) to pay due and payable Class C Notes Interest;
(13) to repay the principal of the Class C Notes until all Class C Notes have been
to paragraphs (9) and (11) above;
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(14) to pay due and payable Class D Notes Interest;
(15) to repay the principal of the Class D Notes until all Class D Notes have been
to paragraphs (9), (11) and (13) above;
(16) to pay due and payable Class E Notes Interest;
(17) to repay the principal of the Class E Notes until all Class E Notes have been
to paragraphs (9), (11), (13) and (15) above;
(18) on any Payment Date on which the Principal Deficiency Ledger shows a debit
balance, to pay to the holders of the Class A Notes until all Class A Notes have
been redeemed in full, then of the Class B Notes until all Class B Notes have been
redeemed in full, then of the Class C Notes until all Class C Notes have been
redeemed in full, then of the Class D Notes until all Class D Notes have been
redeemed in full and then of the Class E Notes as early redemption on the Class A,
Class B, Class C, Class D and Class E Notes (and in that order) an aggregate
amount equal to the lesser of the amount necessary to reduce the Principal
Deficiency Ledger to zero and the aggregate Note Principal Amount of the Class
A, Class B, Class C, Class D and Class E Notes;
(19) to pay to the Swap Counterparty termination payments under the Hedging
Agreements arising by virtue of the Swap Counterparty being (aa) the Defaulting
Party (as defined in the Hedging Agreement) or (bb) the sole Affected Party (as
defined in the Hedging Agreement) under an Additional Termination Event (as
defined in the Hedging Agreement) set out in Part 5(h)(v) (Consequences of Rating
Events) of the Schedule to the Hedging Agreement;
(20) to pay to the Reserve Account the funds necessary to provide or maintain, together
with the funds standing to the credit of the Reserve Account, the respective
Reserve Account Required Amount relating to such Payment Date;
(21) to pay pari passu with each other on a pro rata basis all Agent Fees exceeding the
Agent Fees Cap Amount;
(22) to pay pari passu with each other on a pro rata basis all Administrative Expenses
exceeding the Administrative Expenses Cap Amount;
(23) to pay due and payable Class F Notes Interest;
(24) to repay the principal of the Class F Notes until all Class F Notes have been
to paragraphs (9), (11), (13), (15) and (17) above;
(25) to pay pari passu with each other on a pro rata basis the Transaction Management
Performance Fee (arising under the Financial Advisory Agreement) to the
Financial Advisor and the Monitoring Performance Fee (arising under the
Transaction Monitoring Agreement) to the Transaction Monitor;
(26) to pay pari passu with each other on a pro rata basis all Service Provider Fees
exceeding the Service Provider Cap Amount;
(27) to the extent not covered in (1) through (26) above, to pay all other due and
payable obligations of the Issuer (other than pursuant to paragraphs (28) and (29)
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below), including indemnifications and replacement costs payable by the Issuer to
third parties;
(28) of any remaining amount, to distribute 99.9% thereof as a "Junior Performance
Premium" first (i) to the holders of the Class F Notes, however not exceeding 3%
of the Note Principal Amount of the Class F Notes outstanding on the Issue Date in
respect of the first Payment Date, and on the immediately preceding Payment Date
in respect of any subsequent Payment Date, in each case after the full discharge of
any principal repayments of such Notes, and second (ii) any remainder amount pari
passu with each other on a pro rata basis to the Financial Advisor and the
Transaction Monitor;
(29) to pay out any remainder amount to the General Partner and to the Limited Partner
of the Issuer in accordance with the Issuer's partnership agreement.
The Issuer shall make payments only on the Payment Dates in accordance with the Priority of
Payments, provided, however, that payments may be made on 25 April 2006 and irrespective of
the Priority of Payments in respect of the payment of outstanding interest amounts under the
Bridge Facility, provided that the aggregate amount of such payments shall not exceed
EUR 4,000,000.
"Administrative Expenses " means fees, costs and expenses of, and any other amounts due by
the Issuer to, the directors of the General Partner, the Rating Agencies, the stock exchange, the
auditors and legal counsel of the Issuer, the Limited Partner pursuant to the Tax Reimbursement
Agreement, the Corporate Administrator pursuant to the Corporate Services Agreement as well
as annual payments of EUR 1,000 to the General Partner and EUR 5,000 to the Limited Partner.
"Administrative Expenses Cap Amount" means EUR 30,000 with respect to each Payment
Date.
"Agent Fees" means the fees, costs and expenses of, and any other amounts due by the Issuer
to, the Cash Administrator and the Account Bank pursuant to the Cash Administration
Agreement and the Paying Agents pursuant to the Agency Agreement.
"Agent Fees Cap Amount" means EUR 10,000 with respect to each Payment Date.
"Determination Date" means the first Business Day preceding 15 January, 15 April, 15 July
and 15 October of each year, beginning in July 2006.
"Issuer Receipts" means on any date, all amounts credited to the Issuer Accounts on such date
on account of receipts and collections of the Issuer, including Interest Available and Principal
Available, and all other amounts received by the Issuer pursuant to the Transaction Agreements
and credited to the Issuer Accounts (other than an amount equal to the aggregate Swap
Collateral).
"Interest Available" means the sum of (i) the receipts under the Participation Right
Agreements other than principal repayments, (ii) the balance of the Reserve Account and
proceeds from permitted investments made by the Cash Administrator pursuant to the terms of
the Cash Administration Agreement, (iii) the liquidity advances provided under the Tax
Liquidity Facility Agreement, (iv) any amount paid (other than collateral) by the Swap
Counterparty to the Issuer under the Hedging Agreement and (v) any interest portion of
Recoveries Available.
"Maintenance Expenses" means (i) the Issuer's and the General Partner's tax liabilities (if any)
and (ii) the fees, costs and expenses of and any other amounts due to the Trustee under or in
relation to the Trust Agreement (other than the Trustee Claim as such).
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"Monitoring Performance Fee" means (i) 0.25% per annum plus (ii) a premium of 0.05% per
annum if and as long as there are not more than 4 Companies having received a credit appraisal
of the category of "Ba2.edf" or below from Moody's KMV or an equivalent credit appraisal
from another credit appraisal agency, each such amounts to be calculated in respect of each
Payment Date on the basis of the principal amount of all Notes outstanding on the immediately
preceding Payment Date.
"Participation Rights Type A" means the Participation Rights granted to the Issuer pursuant to
the Participation Right Agreements entitled "Genussrechtsvereinbarung Variante A HGBEigenkapitalinstrument".
"Principal Available" means on any date, all amounts credited to the Issuer Accounts on such
date on account of the principal amounts received by the Issuer from the Companies as
repayment of Participation Rights and of any principal portion of Recoveries Available,
however excluding any payments in respect of Participation Rights in respect of which a
Principal Deficiency Event has occurred.
"Reserve Account Required Amount" means (i) EUR 0 in relation to the initial Payment Date,
(ii) in relation to each subsequent Payment Date prior to the Scheduled Maturity Date, the sum
of (A) the funds standing to the credit of the Reserve Account on the immediately preceding
Payment Date following any payments pursuant to Section 2.3 paragraph (20) of the Terms and
Conditions and (B) EUR 500,000, provided that such sum shall under no circumstance exceed
EUR 4 million, and (iii) EUR 0 in relation to the Scheduled Maturity Date and any subsequent
Payment Date.
"Recoveries Available" means the net proceeds realised by the Issuer on the disposal of
Participation Right Agreements by way of an assumption of contract of a third party or an
assignment of claims arising thereunder.
"Service Provider Cap Amount" means EUR 200,000 with respect to each Payment Date.
"Service Provider Fees" means the fees, costs and expenses of, and any other amounts due to,
the Financial Advisor pursuant to the Financial Advisory Agreement (excluding the Transaction
Management Performance Fee), the Transaction Monitor pursuant to the Transaction
Monitoring Agreement (excluding the Monitoring Performance Fee), the Recovery Advisor and
the Disposal Advisor pursuant to the Recovery Advisory Agreement and the members of the
Investment Board pursuant to the Investment Advisory Agreement.
"Swap Collateral" means any collateral transferred by the Swap Counterparty to the Issuer
pursuant to the Hedging Agreement and any interest or distributions in respect thereof.
"Transaction Management Performance Fee" means (i) 0.25% per annum plus (ii) a
premium of 0.05% per annum if and as long as there are not more than 4 Companies having
received a credit appraisal of the category of "Ba2.edf" or below from Moody's KMV or an
equivalent credit appraisal from another credit appraisal agency, each such amounts to be
calculated in respect of each Payment Date on the basis of the principal amount of all Notes
outstanding on the immediately preceding Payment Date.
2.4
Limited Recourse
All payment obligations of the Issuer under the Notes constitute obligations exclusively to
make payments in an amount limited to any credit on the Issuer Accounts and proceeds
from the Trustee Collateral received by the Trustee pursuant to the Trust Agreement and
the other Transaction Documents, in each case in accordance with and subject to the
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Priority of Payments. The Notes shall not give rise to any payment obligation in excess of
the foregoing and any accrued claims shall not become due, and recourse shall be limited,
accordingly.
To the extent that such assets, or the proceeds from the realisation thereof, after payment of all
claims ranking in priority to the Notes, prove ultimately insufficient to satisfy the claims of all
Noteholders in full, then any shortfall arising shall be extinguished and neither Noteholders nor
the Trustee shall have any further claims against the Issuer, its officers or directors, provided
that the foregoing shall be without prejudice to any early redemption rights. Such assets and
proceeds shall be deemed to be "ultimately insufficient" at such time when, in the reasonable
opinion of the Trustee, no further assets are available and no further proceeds can be realised
therefrom to satisfy any outstanding claim of the Noteholders, and neither assets nor proceeds
will be so available thereafter.
3.
COLLATERAL
Under the Trust Agreement, the Issuer will grant a security interest to the Trustee for the benefit
of the Noteholders and the other secured creditors of the Issuer under the Transaction
Documents to which it is a party with respect to its present and future, actual and contingent
rights and claims arising under the participation right agreements (Genussrechtsvereinbarungen), each entered into between the Issuer and each of certain small and mediumsized companies located in Germany ("Companies") (the "Participation Right Agreements",
as defined in the Trust Agreement) pursuant to which certain participation rights (Genussrechte)
are granted to the Issuer (the "Participation Rights"), the Trust Agreement, the financial
advisory agreement entered into between the Issuer and CBG Commerz
Beteiligungsgesellschaft Holding mbH (the "Financial Advisor"), dated 26 October 2005 (as
amended and restated on 11 April 2006) (the "Financial Advisory Agreement"), the recovery
advisory agreement entered into between the Issuer and Ernst & Young AG
Wirtschaftsprüfungsgesellschaft (the "Recovery Advisor") and Ernst & Young Corporate
Finance Beratung GmbH (the "Disposal Advisor"), dated 1 December 2005 (as amended and
restated on 11 April 2006) (the "Recovery Advisory Agreement"), the transaction monitoring
agreement entered into between the Issuer and Commerzbank Aktiengesellschaft, London
Branch (in its capacity as the "Transaction Monitor"), dated 1 December 2005 (as amended
and restated on 11 April 2006) (the "Transaction Monitoring Agreement"), the investment
advisory agreement entered into between the Issuer and the initial members of the investment
board (the members of the investment board from time to time, the "Investment Board"), dated
26 October 2005 (as amended and restated on 11 April 2006) (the "Investment Advisory
Agreement"), the cash administration agreement entered into between the Issuer and JPMorgan
Chase Bank, N.A. (London Branch) (in its capacity as the "Cash Administrator" and the
"Account Bank"), dated 1 December 2005 (as amended and restated on 11 April 2006) (the
"Cash Administration Agreement"), the tax liquidity facility agreement entered into between
the Issuer and Commerzbank Aktiengesellschaft (the "Liquidity Facility Provider", dated
1 December 2005 (as amended and restated on 11 April 2006) (the "Tax Liquidity Facility
Agreement", the subscription agreement entered into between the Issuer, Commerzbank
Aktiengesellschaft, London Branch (in its capacity as the "Lead Manager") and Fortis Bank
nv-sa. (the "Co-Manager", and together with the Lead Manager, the "Managers"), dated 11
April 2006 (the "Subscription Agreement"), the tax reimbursement agreement entered into
between the Issuer and CB MezzCAP Verwaltungsgesellschaft mbH (the "Limited Partner"),
dated 1 December 2005 (as amended and restated on 11 April 2006) (the "Tax Reimbursement
Agreement"), the process agent appointment agreement entered into between the Issuer and
FIDEUROP Treuhandgesellschaft für den gemeinsamen Markt mbH, dated 1 December 2005
(the "Process Agent Appointment Agreement"), the agency agreement between the Issuer,
JPMorgan Chase Bank, N.A. (London Branch) (in its capacity as the "Principal Paying
Agent") and J.P. Morgan Bank (Ireland) Plc (in its capacity as the "Irish Paying Agent"), dated
- 48 -
11 April 2006 (the "Agency Agreement") and the hedging agreement entered into between the
Issuer and Commerzbank Aktiengesellschaft dated 24 November 2005, which has subsequently
been replaced by the hedging agreement entered into between the Issuer and AIG Financial
Products Corp. (the "Swap Counterparty"), dated 11 April 2006) (the "Hedging Agreement")
(together with certain other collateral as referred to in Clause 3.2 of the Trust Agreement, the
"Trustee Collateral").
4.
TRUSTEE
4.1
Trust Agreement
For the benefit of the Noteholders and certain other secured creditors of the Issuer under the
Transaction Agreements to which it is a party, the Issuer has entered into a trust agreement with
J.P. Morgan Corporate Trustee Services Limited (the "Trustee"), dated 1 December 2005 (as
amended and restated on 11 April 2006) (the "Trust Agreement"). The text of the Trust
Agreement is attached as Appendix A to the Terms and Conditions and constitutes an integral
part thereof. "Transaction Documents" means the Notes (including the Terms and Conditions)
and the Transaction Agreements. "Transaction Agreements" means the Trust Agreement, the
Financial Advisory Agreement, the Recovery Advisory Agreement, the Transaction Monitoring
Agreement, the Investment Advisory Agreement, the Cash Administration Agreement, the Tax
Liquidity Facility Agreement, the Agency Agreement, the Hedging Agreement, the Subscription
Agreement, the Tax Reimbursement Agreement, the Process Agent Appointment Agreement,
the corporate services agreement entered into between the Issuer, CB MezzCAP Limited (the
"General Partner") and Bedell Trust Company Limited (the "Corporate Administrator"),
dated 19 October 2005 (the "Corporate Services Agreement"), the English security deed
entered into between the Issuer, the Trustee and the Account Bank dated 15 December 2005 (as
amended and restated on 11 April 2006) (the "English Security Deed") and the Jersey security
agreement entered into between the Issuer and the Trustee dated 22 December 2005 (the
"Jersey Security Agreement"). The transaction contemplated in the Transaction Documents is
referred to as the transaction (the "Transaction").
4.2
Obligation to Maintain a Trustee
As long as any Notes are outstanding the Issuer shall ensure that a trustee is appointed at all
times who has undertaken substantially the same functions and obligations as the Trustee
pursuant to the Notes, including the Terms and Conditions, and the Trust Agreement.
5.
PAYMENTS
5.1
General
Payments of principal and interest in respect of the Notes shall be made by wire transfer of the
same day funds to, or to the order of, Euroclear and Clearstream Luxembourg, as relevant, for
credit to the accounts held by the relevant Euroclear Participants and Clearstream Luxembourg
Participants for subsequent transfer to the Noteholders.
5.2
Payments of Interest on Temporary Global Notes
Payments of interest on the Notes represented by a Temporary Global Note will be made only
after delivery by the relevant Euroclear Participants and Clearstream Luxembourg Participants
to Euroclear and Clearstream Luxembourg, as relevant, of the certifications described in
Section 1.3 above.
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5.3
Discharge
All payments made by the Issuer to, or to the order of, Euroclear and Clearstream Luxembourg
shall discharge the liability of the Issuer under the relevant Notes to the extent of the sums so
paid.
5.4
Payment Dates
"Payment Date" means each 25th of January, April, July and October of each year,
commencing in July 2006, or if any such day is not a Business Day, the next succeeding day
which is a Business Day unless it would thereby fall into the next calendar month, in which case
the payment shall be made on the immediately preceding Business Day.
"Business Day" means a day on which all relevant parts of the Trans-European Automated
Real-time Gross settlement Express Transfer system ("TARGET") are operational to effect the
relevant payment and commercial banks are open for general business in Frankfurt am Main,
Dublin and London.
6.
PAYMENTS OF INTEREST
6.1
Interest Calculation
Subject to the limitations set forth in Section 2.4 (Limited Recourse), each Note shall bear
interest at the applicable Interest Rate on its Note Principal Amount from the Issue Date until
the close of the day preceding the day on which such Note has been redeemed in full (both days
inclusive).
The amount of interest payable by the Issuer in respect of each Note on any Payment Date (the
"Interest Amount") shall be calculated by applying the relevant Interest Rate for the Relevant
Interest Accrual Period to its Note Principal Amount outstanding as of the immediately
preceding Payment Date or the Issue Date (in the case of the first Payment Date) and
multiplying the result by (i) in the case of the Class A, Class B, Class C, Class D and Class E
Notes, the actual number of days in the Relevant Interest Accrual Period divided by 360 and (ii)
in the case of the Class F Notes, the number of days in the Relevant Interest Accrual Period
calculated on the basis of a year of 360 days with twelve 30-day months divided by 360, in each
case rounding the result to the nearest EUR 0.01 (with EUR 0.005 being rounded upwards).
"Class A Notes Interest" means the aggregate Interest Amount payable (including any Interest
Shortfall) in respect of all Class A Notes on any date.
"Class B Notes Interest" means the aggregate Interest Amount payable (including any Interest
Shortfall) in respect of all Class B Notes on any date.
"Class C Notes Interest" means the aggregate Interest Amount payable (including any Interest
Shortfall) in respect of all Class C Notes on any date.
"Class D Notes Interest" means the aggregate Interest Amount payable (including any Interest
Shortfall) in respect of all Class D Notes on any date.
"Class E Notes Interest" means the aggregate Interest Amount payable (including any Interest
Shortfall) in respect of all Class E Notes on any date.
"Class F Notes Interest" means the aggregate Interest Amount payable (including any Interest
Shortfall) in respect of all Class F Notes on any date.
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"Note Principal Amount" of any Note as of any date shall equal the initial note principal
amount of EUR 100,000, as reduced by all amounts paid prior to such date on such Note in
respect of principal.
6.2
Interest Accrual Period
"Interest Accrual Period" means (i) in relation to the Class A, Class B, Class C, Class D and
Class E Notes, in respect of the first Payment Date, the period commencing on (and including)
the Issue Date and ending on (but excluding) the first Payment Date, and in respect of any
subsequent Payment Date, the period commencing on (and including) a Payment Date and
ending on (but excluding) the immediately following Payment Date and (ii) in relation to the
Class F Notes, in respect of the first Payment Date, the period commencing on (and including)
the Issue Date and ending on (but excluding) 25 July 2006, and in respect of any subsequent
Payment Date, the three-month period commencing on (and including) the 25th day of the
calendar month three months before the month in which the relevant Payment Date occurs and
ending on (but excluding) the 25th day of the month in which such Payment Date occurs.
"Relevant Interest Accrual Period" means in respect of any Payment Date the Interest Accrual
Period immediately preceding such Payment Date.
6.3
Interest Rate
(a)
(b)
The interest rate payable on the Notes for each Interest Accrual Period (each, an "Interest
Rate") shall be
(i)
in the case of the Class A Notes, EURIBOR plus 0.28% per annum,
(ii)
in the case of the Class B Notes, EURIBOR plus 0.50% per annum,
(iii)
in the case of the Class C Notes, EURIBOR plus 0.70% per annum,
(iv)
in the case of the Class D Notes, EURIBOR plus 1.75% per annum,
(v)
in the case of the Class E Notes, EURIBOR plus 3.90% per annum, and
(vi)
in the case of the Class F Notes, 17% per annum.
"EURIBOR" for each Interest Accrual Period means the rate for deposits in euro for a
period of three months (with respect to the first Interest Accrual Period the linear
interpolation between three and four months) which appears on Moneyline Telerate Page
248 of the Associated Press-Dow Jones Telerate Service (or such other page as may
replace such page on that service for the purpose of displaying Brussels inter-bank
offered rate quotations of major banks) as of 11:00 a.m. (Brussels time) on the second
Target Settlement Day immediately preceding the commencement of such Interest
Accrual Period (each, a "EURIBOR Determination Date"), all as determined by the
Principal Paying Agent.
If Moneyline Telerate Page 248 is not available or if no such quotation appears thereon,
in each case as at such time, the Principal Paying Agent shall request the principal Eurozone office of the Reference Banks selected by it to provide the Principal Paying Agent
with its offered quotation (expressed as a percentage rate per annum) for three-month
deposits in euro at approximately 11:00 a.m. (Brussels time) on the relevant EURIBOR
Determination Date to prime banks in the Euro-zone inter-bank market for the relevant
Interest Accrual Period and in an amount that is representative for a single transaction in
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that market at that time. If two or more of the selected Reference Banks provide the
Principal Paying Agent with such offered quotations, EURIBOR for such Interest Accrual
Period shall be the arithmetic mean of such offered quotations (rounded if necessary to
the nearest one thousandth of a percentage point, with 0.000005 being rounded upwards).
If on the relevant EURIBOR Determination Date fewer than two of the selected
Reference Banks provide the Principal Paying Agent with such offered quotations,
EURIBOR for such Interest Accrual Period shall be the rate per annum which the
Principal Paying Agent determines as being the arithmetic mean (rounded if necessary to
the nearest one thousandth of a percentage point, with 0.000005 being rounded upwards)
of the rates communicated to (and at the request of) the Principal Paying Agent by major
banks in the Euro-zone, selected by the Principal Paying Agent, at approximately 11:00
a.m. (Brussels time) on such EURIBOR Determination Date for loans in euro to leading
European banks for such Interest Accrual Period and in an amount that is representative
for a single transaction in that market at that time.
"TARGET Settlement Day" means a day on which TARGET is open.
"Reference Banks" means four major banks in the Euro-zone inter-bank market.
"Euro-zone" means the region comprising member states of the European Union that
have adopted the single currency, the euro, in accordance with the EC Treaty.
"EC Treaty" means the Treaty establishing the European Community signed in Rome on
25 March 1957, as amended from time to time, including by the Treaty on European
Union signed in Maastricht on 7 February 1992.
In the event that the Principal Paying Agent is on any EURIBOR Determination Date
required but unable to determine EURIBOR for the relevant Interest Accrual Period in
accordance with the above, EURIBOR for such Interest Accrual Period shall be
EURIBOR as determined on the previous EURIBOR Determination Date.
6.4
Notifications
The Principal Paying Agent shall, as soon as practicable on or after each EURIBOR
Determination Date, determine and notify the Issuer and the Trustee of the relevant Interest
Accrual Period, Interest Rate, Interest Amount and Payment Date with respect to each Note.
6.5
Interest Shortfall
Accrued interest not distributed on any Payment Date related to the Interest Accrual Period in
which it accrued, will be an "Interest Shortfall" with respect to the relevant Note. An Interest
Shortfall shall become due and payable on the next Payment Date and on any following
Payment Date (subject to Section 2.4 (Limited Recourse)) until it is reduced to zero. Interest
shall not accrue on Interest Shortfalls at any time.
6.6
Junior Performance Premium
On each Payment Date, the Issuer shall pay a portion of the Junior Performance Premium (if
any) determined in respect of the relevant Payment Date pursuant to Section 2.3 paragraph
(28)(i) to the holders of the Class F Notes.
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7.
REDEMPTION; EARLY REDEMPTION
7.1
Scheduled Maturity Date
Unless previously redeemed in accordance with these Terms and Conditions, the Class A Notes,
the Class B Notes, the Class C Notes, the Class D Notes, the Class E Notes and the Class F
Notes (in this order) shall be redeemed in full at their Note Principal Amount plus accrued
interest on 25 January 2013 (subject to adjustment for non-Business Days pursuant to
Section 5.4, the "Scheduled Maturity Date"), subject to the availability of funds pursuant to
the Priority of Payments. In the event of insufficient funds pursuant to the Priority of Payments,
any outstanding Class A Notes, Class B Notes, Class C Notes, Class D Notes, Class E Notes
and Class F Notes (in this order) will be redeemed on the subsequent Payment Dates, subject to
the availability of funds pursuant to the Priority of Payments.
7.2
Legal Maturity Date
Unless previously redeemed in accordance with these Terms and Conditions, all Notes shall be
redeemed in full at their Note Principal Amount plus accrued interest on 25 October 2036
(subject to adjustment for non-Business Days pursuant to Section 5.4, the "Legal Maturity
Date").
7.3
Early Redemption
(a)
If the Transaction Monitor notifies a debit balance of the Principal Deficiency Ledger (as
defined below) to the Issuer on or prior to a Determination Date, the Class A, Class B,
Class C, Class D and Class E Notes (in that order) shall be redeemed on the next
following Payment Date in the amounts determined pursuant to Section 2.3
paragraph (18).
(b)
"Principal Deficiency Ledger" means a ledger account maintained by or on behalf of the
Issuer, in which shall be debited each Principal Deficiency Amount and credited (i) the
amount of each early redemption payment pursuant to Section 7.3(a) and (ii) each
Principal Deficiency Reversal Amount.
(c)
"Principal Deficiency Amount" means each amount notified as a "principal deficiency
amount" by the Transaction Monitor to the Issuer, such amounts notified by the
Transaction Monitor as being equal to (i) the nominal amount of each Participation Right
the related Participation Right Agreement of which has been terminated (a "Principal
Deficiency Event") or (ii) the nominal amount of each Participation Right Type A in
respect of which a remuneration amount has accrued but the related payment claim of the
Issuer has not come into existence under the related Participation Right Agreement Type
A due to the lack of sufficient free assets of the relevant Company.
"Principal Deficiency Reversal Amount" means the nominal amount of each
Participation Right Type A notified by the Transaction Monitor to the Issuer in respect of
which (aa) a Principal Deficiency Amount pursuant to Section 7.3(c) first para. (ii) had
previously been debited to the Principal Deficiency Ledger and (bb) all payment claims in
respect of remuneration which had previously not come into existence due to the lack of
free assets of the relevant Company have at the time of such notice come into existence
pursuant to the terms of the related Participation Right Agreement Type A.
(d)
On each Payment Date prior to the Scheduled Maturity Date, the Class A Notes shall be
redeemed in an amount (if any) determined pursuant to Section 2.3 paragraph (9), the
Class B Notes shall be redeemed in an amount (if any) determined pursuant to Section 2.3
paragraph (11), the Class C Notes shall be redeemed in an amount (if any) determined
- 53 -
pursuant to Section 2.3 paragraph (13), the Class D Notes shall be redeemed in an amount
(if any) determined pursuant to Section 2.3 paragraph (15), the Class E Notes shall be
redeemed in an amount (if any) determined pursuant to Section 2.3 paragraph (17), and
the Class F Notes shall be redeemed in an amount (if any) determined pursuant to Section
2.3 paragraph (24).
8.
EARLY REDEMPTION FOR DEFAULT
8.1
Default Event
If an Issuer Event of Default occurs and is continuing, each Noteholder may accelerate the
Notes held by it and demand immediate repayment of each such Notes at the then current Note
Principal Amount plus accrued but unpaid interest by delivery of a written notice to the Issuer
with a copy to the Trustee. In the event that any Noteholder exercises its right pursuant to the
preceding sentence, all of the Notes shall become immediately due for redemption and the
Issuer shall redeem all of the Notes (but not some only) at the then current Note Principal
Amount plus accrued but unpaid interest.
"Issuer Event of Default" means any of the following events:
(i)
the Issuer or its assets become subject to bankruptcy, examinership, insolvency,
moratorium or similar proceedings, which affect or prejudice the performance of
obligations under the Notes, or there is a refusal to institute such proceedings for lack of
assets;
(ii)
the Issuer fails to make any payment of any interest or principal due and payable in
respect of any Note and such default continues for a period of five Business Days or
longer; or
(iii)
the Trustee Collateral is or becomes invalid in whole or in part.
For the avoidance of doubt, no Issuer Event of Default shall occur with respect to any accrued
claims hereunder which do not become due, and payment is deferred accordingly, by operation
of Section 2.4 (Limited Recourse). On or after the Legal Maturity Date, any payment obligations
under the Notes shall be determined for the purposes of (ii) above as if Section 2.4 (Limited
Recourse) would not apply.
8.2
Notice
Any notice for the purposes of Section 8.1 shall be made in writing and delivered to the Issuer
with a copy to the Trustee and shall include an evidence by means of a certificate of a Note
Custodian that such Noteholder, at the time of giving the notice, is a holder of the relevant
Notes.
"Note Custodian" means any bank or other financial institution of recognised standing
authorised to engage in securities custody business with which the Noteholder maintains a
security account in respect of its Notes and includes Euroclear and Clearstream Luxembourg.
9.
AGENTS
9.1
Appointment of Paying Agents
The Issuer has appointed JPMorgan Chase Bank, N.A. (London Branch) as principal paying
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agent and calculation agent (in such capacity, the "Principal Paying Agent") and J.P. Morgan
Bank (Ireland) plc as the Irish paying agent (in such capacity, the "Irish Paying Agent", and
together with the Principal Paying Agent, the "Paying Agents").
"Prospectus" means the prospectus dated 20 April 2006 and published in relation to the issue of
the Notes.
The Paying Agents shall act solely as agents for the Issuer and shall not have any agency or
trustee relationship with the Noteholders.
9.2
Replacement
The Issuer shall procure that (i) for as long as any Notes are outstanding there shall always be a
Principal Paying Agent appointed to perform the functions assigned to it in these Terms and
Conditions and (ii) for as long as any Notes are listed on the Irish Stock Exchange there shall
always be an Irish Paying Agent appointed.
The Issuer may at any time, by giving not less than 30 days' notice by publication in accordance
with Section 12, replace the Principal Paying Agent or the Irish Paying Agent by one or more
other banks or other financial institutions which assume such functions.
9.3
Determinations Binding
All Interest Rates and Interest Amounts determined and other calculations and determinations
made by the Principal Paying Agent for the purposes of the Transaction Documents shall, in the
absence of manifest error, be final and binding.
10.
TAXES
Payments in respect of the Notes shall only be made after deduction and withholding of current
or future taxes, levies or governmental charges, regardless of their nature, which are imposed,
levied or collected (collectively, "taxes") under any applicable system of law or in any country
which claims fiscal jurisdiction by, or for the account of, any political subdivision thereof or
government agency therein authorised to levy taxes, to the extent that such deduction or
withholding is required by law. The Issuer shall account for the deducted or withheld taxes with
the competent government agencies.
Neither the Issuer nor any other party is obliged to pay any amounts as compensation for
deduction or withholding of taxes in respect of payments on the Notes, and such deduction
or withholding of taxes shall not constitute an Issuer Event of Default.
11.
SUBSTITUTION OF THE ISSUER
11.1 General
If, in the determination of the Issuer, as a result of any enactment of or supplement or
amendment to, or change in, the laws of any relevant jurisdiction or as a result of an official
communication of previously not existing or not publicly available official interpretation, or a
change in the official interpretation, implementation or application of such laws that becomes
effective on or after the Issue Date:
(i)
the Issuer would, for reasons outside its control, and after taking reasonable measures
(such measures not involving any material additional payment or other expenses), be
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materially restricted from performing any of its obligations under the Notes or the other
Transaction Documents to which it is a party; or
(ii)
the Issuer would, for reasons outside its control, and after taking reasonable measures
(such measures not involving any material additional payment or other expenses), (x) be
required to make any tax withholding or deduction in respect of any payments on the
Notes and/or the Transaction Documents to which it is a party or (y) would not be entitled
to relief for tax purposes for any amount which it is obliged to pay, or would be treated as
receiving for tax purposes an amount which it is not entitled to receive, in each case under
the Notes or the other Transaction Documents;
then the Issuer shall inform the Trustee accordingly and shall, in order to avoid the relevant
event described in paragraph (i) or (ii) above, use its reasonable endeavours to arrange the
substitution of the Issuer with a company incorporated in another jurisdiction in accordance
with Section 11.2.
11.2 The New Issuer
The Issuer is entitled to substitute in its place another company (the "New Issuer") as debtor for
all obligations arising under and in connection with the Notes only subject to the provisions of
Section 11.1 and the following conditions:
(i)
the New Issuer assumes all rights and duties of the Issuer under or pursuant to the Notes
and the other Transaction Documents by means of an agreement with the Issuer and the
other parties to the other Transaction Documents, and the Trustee Collateral is, upon the
Issuer's substitution, held by the Trustee for the purpose of securing the obligations of the
New Issuer;
(ii)
no additional expenses or legal disadvantages of any kind arise for the Noteholders from
such assumption of debt and the Issuer has obtained a legal opinion to this effect from a
reputable law firm in the relevant jurisdiction;
(iii)
the New Issuer provides proof satisfactory to the Trustee (whereby the Trustee shall be
entitled to request a legal opinion from a reputable law firm as such proof) that it has
obtained all of the necessary governmental approvals in the jurisdiction in which it has its
registered office and that it is permitted to fulfil all of the obligations arising under or in
connection with the Notes and the other Transaction Documents to which it will become
a party;
(iv)
the Issuer and the New Issuer enter into such agreements and execute such documents as
the Trustee considers necessary for the effectiveness of the substitution;
(v)
each of the Rating Agencies has confirmed that such substitution will not adversely affect
the then current rating of the Notes; and
(vi)
the Trustee has given its consent.
"Rating Agencies" means Moody's Investors Service, Inc. and Standard and Poor's Rating
Services, a division of The McGraw Hill Companies, Inc.
Upon fulfilment of the aforementioned conditions, the New Issuer shall in every respect
substitute the Issuer and the Issuer shall, vis-à-vis the Noteholders, be released from all
obligations relating to the function of issuer under or in connection with the Notes.
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11.3 Notice of Substitution
Notice of such substitution of the Issuer shall be given in accordance with Section 12 to the
Noteholders with a copy to the Irish Stock Exchange if any Notes are listed on the Irish Stock
Exchange.
11.4 Effects of Substitution
Upon the substitution, each reference to the Issuer in the Terms and Conditions shall from then
on be deemed to be a reference to the New Issuer and any reference to the country in which the
Issuer has its registered office, domicile or residency for tax purposes, as relevant, shall from
then on be deemed to be a reference to the country in which the New Issuer has its registered
office, domicile or residency for tax purposes, as relevant.
12.
FORM OF NOTICES
All notices to the Noteholders shall be either (i) delivered to Clearstream Luxembourg and
Euroclear for communication by them to the Noteholders, or (ii) made available for a period of
not less than 30 calendar days on the following web site: www.ise.ie.
13.
MISCELLANEOUS
13.1 Presentation Period
The presentation period for the Global Notes provided in § 801 para. 1, sentence 1 of the
German Civil Code (Bürgerliches Gesetzbuch) shall end ten years after the date on which the
last payment in respect of the Notes represented by such Global Note was due.
13.2 Replacement of Global Notes
If any of the Global Notes is lost, stolen, damaged or destroyed, it may be replaced by the Issuer
upon payment by the claimant of the costs arising in connection therewith. As a condition of
replacement, the Issuer may require the fulfilment of certain conditions, the provision of proof
regarding the existence of indemnification and/or the provision of adequate collateral. In the
event of any of the Global Notes being damaged, such Global Note shall be surrendered before
a replacement is issued. In the event of any of the Global Notes being lost or destroyed, the
foregoing shall not limit any right to file a petition for the annulment of such Note pursuant to
the provisions of German law.
13.3 Place of Performance
Place of performance of the Notes shall be Frankfurt am Main.
13.4 Severability
Should any of the provisions hereof be or become invalid in whole or in part, the other
provisions shall remain in force.
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14.
GOVERNING LAW AND PLACE OF JURISDICTION
14.1 Governing Law
The form and content of the Notes and all of the rights and obligations of the Noteholders and
the Issuer under the Notes shall be governed in all respects by the laws of the Federal Republic
of Germany.
14.2 Jurisdiction
The non-exclusive place of jurisdiction for any action or other legal proceedings
("Proceedings") arising out of or in connection with the Notes shall be the District Court
(Landgericht) in Frankfurt am Main. The Issuer hereby submits to the jurisdiction of such court.
The German courts shall have exclusive jurisdiction over the annulment of the Global Notes in
the event of their loss or destruction.
14.3 Process Agent
With regard to any Proceedings in connection with the Notes brought against the Issuer in a
court of the Federal Republic of Germany, the Issuer appoints FIDEUROP Treuhandgesellschaft für den Gemeinsamen Markt mbH, Wirtschaftsprüfungsgesellschaft, with its
current seat at Bockenheimer Anlage 15, Mozartplatz, 60322 Frankfurt am Main, Federal
Republic of Germany, as its agent for service of process. The Issuer shall maintain an agent for
service of process in the Federal Republic of Germany as long as any Notes are outstanding.
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TRUST AGREEMENT
The following are the main provisions of the Trust Agreement dated 1 December 2005 (as amended
and restated on 11 April 2006) between the Issuer, the Limited Partner, the General Partner and the
Trustee (excluding the Schedules thereto). The Trust Agreement is attached as Appendix A to the
Terms and Conditions and constitutes an integral part thereof. In case of any overlap or inconsistency
in the definition of a term or expression in the Trust Agreement and elsewhere in this Prospectus, the
definition in the Trust Agreement will prevail.
1.
DEFINITIONS
1.1
Defined terms used but not defined herein shall have the same meaning as in the Terms and
Conditions of the Notes (attached as Schedule 1 hereto).
1.2
Words denoting the singular shall include the plural and vice versa.
1.3
Any reference to any agreement or document shall be construed as a reference to the agreement
or document (in each case including any separate fee arrangement referred to therein) as the
same may have been, or may from time to time be, renewed, extended, amended, varied,
novated, supplemented or superseded.
1.4
Save where the contrary is indicated, any reference herein to a time of day shall be construed as
a reference to the time in Frankfurt am Main.
1.5
Where a German legal term has been used herein, such German legal term (and not the English
legal term or concept to which it relates) shall be authoritative for the purpose of construction.
Where an English legal term has been used herein, the related German legal term or concept
shall be authoritative for the purpose of construction, provided that legal terms shall be
construed in accordance with English law or any other law if specifically so provided or the
context so requires.
1.6
Reference herein to any party in a certain capacity shall be construed to also refer to any of its
successors in such capacity.
2.
POSITION OF THE TRUSTEE
2.1
The Trustee shall carry out the duties hereunder and shall perform the tasks and functions set
out in the Terms and Conditions and this Trust Agreement (together, the "Trustee Duties") in
accordance with this Trust Agreement and as a trustee for the benefit, and with particular regard
to the interests, of the Noteholders and the other creditors of the Issuer under the Transaction
Documents (collectively, together with the Trustee, and any successors in such capacities
appointed pursuant to the relevant provisions of the Transaction Documents, the "Transaction
Creditors").
2.2
This Trust Agreement grants the Transaction Creditors the right to demand that the Trustee
perform the Trustee Duties (contract for the benefit of a third party (echter Vertrag zugunsten
Dritter) pursuant to § 328 subsection 1 of the German Civil Code (Bürgerliches Gesetzbuch)).
The obligations of the Trustee under this Trust Agreement are owed exclusively to the
Transaction Creditors, unless otherwise specified or the context requires otherwise.
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2.3
The Issuer hereby grants the Trustee a separate claim (the "Trustee Claim"), entitling the
Trustee to demand from the Issuer:
(i)
that any present or future, actual or contingent obligations of the Issuer towards the
Noteholders and the other Transaction Creditors arising under the Transaction Documents
to which it is a party (together, the "Secured Obligations") be fulfilled, and
(ii)
if an Issuer Event of Default has occurred or, the occurrence thereof is, in the professional
judgment of the Trustee, imminent, and insolvency proceedings have not been instituted
against the assets of the Trustee, that any payment owed to the Transaction Creditors will
be made to, and at all times prior to the on-payment to the Transaction Creditors held in, a
trust account (Treuhandkonto) of the Trustee for on-payment to the relevant Transaction
Creditors. The Trustee shall on-pay any amount so received to the Transaction Creditors
without undue delay in accordance with the Priority of Payments (as defined in the Terms
and Conditions).
The obligations of the Issuer to make payments to the relevant Transaction Creditors shall
remain unaffected. The Trustee Claim may be enforced separately from the relevant
Transaction Creditors' claims in respect of the same payment obligation of the Issuer. In
the case of a payment pursuant to paragraph (ii) above, the Issuer and each Transaction
Creditor (excluding the Trustee) shall have a claim against the Trustee for on-payment to
the relevant Transaction Creditors in accordance with the Priority of Payments. The
relevant obligation of the Issuer under the Secured Obligations shall only be fulfilled once
the on-payment to the relevant Transaction Creditors by the Trustee has occurred. For the
avoidance of doubt, upon on-payment by the Trustee to the Transaction Creditors the
liability of the Issuer under the Secured Obligations in respect of the same payment
obligation shall be discharged to the extent of the sums so on-paid, and if the Trustee
makes such on-payment in respect of the Notes through Euroclear Bank S.A./N.V., as
operator of the Euroclear Systems and Clearstream Banking, société anonyme,
Luxembourg, Section 5.3 of the Terms and Conditions shall apply in respect of such onpayment and the discharge of the Issuer in respect of the related payment obligation under
the Notes. Similarly, upon payment by the Issuer to the Transaction Creditors, the right of
the Trustee to request a payment pursuant to paragraph (ii) above in respect of the same
payment obligation of the Issuer shall cease to exist to the extent of the sums so paid by
the Issuer.
For the avoidance of doubt, the obligation of the Trustee to on-pay any amounts received
under paragraph (ii) above without undue delay to the Transaction Creditors in
accordance with the Priority of Payments shall not be affected by the Trustee's
resignation or other termination of its appointment as a trustee hereunder to the extent
that the Trustee has not paid such amounts to any successor trustee. In particular, on or
promptly after a resignation of the Trustee has become effective, the Trustee shall on-pay
to the Transaction Creditors any amounts standing to the credit of any trust account
pursuant to paragraph (ii) above.
3.
TRUSTEE COLLATERAL
3.1
The Issuer hereby grants a pledge (Pfandrecht) pursuant to §§ 1204 et seq. of the German Civil
Code (Bürgerliches Gesetzbuch) to the Trustee with regard to:
(i)
all its present and future, contingent and unconditional rights and claims against the
Companies arising under the participation right agreements referred to in Schedule 2
hereto and forms of which are attached as Schedule 3 hereto (the "Participation Right
Agreements");
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(ii)
all its present and future, contingent and unconditional rights and claims against the
Trustee arising under the Trust Agreement; and
(iii)
all its present and future, contingent and unconditional rights and claims arising under the
other Transaction Agreements (excluding the Hedging Agreement, the Corporate
Services Agreement, the English Security Deed and the Jersey Security Agreement).
The Trustee hereby accepts each such pledge.
The Issuer hereby gives notice to the Trustee of the pledge pursuant to (ii) above and the
Trustee confirms receipt of such pledge. The Issuer shall give notice to the Companies of the
pledge pursuant to (i) above and to the respective counterparties of the pledge pursuant to (iii)
above, in each case on the date hereof.
3.2
The parties hereby acknowledge that:
(i)
the Issuer has pursuant to the Jersey Security Agreement granted to the Trustee a Jersey
law security interest in respect of all its present and future claims, right, title and interest
in and to the Corporate Services Agreement (the "Jersey Collateral");
(ii)
the Issuer has pursuant to the English Security Deed granted to the Trustee an English law
security interest in respect of its cash account no. 32617301, named the "CB MezzCAP
Limited Partnership EUR Transaction Account" (the "Transaction Account"), and cash
account no. 32617302, named the "CB MezzCAP Limited Partnership EUR Reserve
Account" (the "Reserve Account") with JPMorgan Chase Bank, N.A. (London Branch)
(together, including any replacement accounts of the Issuer, the "Issuer Accounts") as
well as in respect of all rights, title and interest of the Issuer in relation to the Hedging
Agreement, as amended from time to time and the transactions entered into thereunder.
The security interests granted pursuant to Clauses 3.1 and referred to in Clause 3.2 shall
together constitute the "Trustee Collateral" and the assets being the subject of the Trustee
Collateral shall be referred to as the "Collateral Assets". The agreements referred to in this
Clause 3.2 together with the Trust Agreement shall constitute the "Security Documents".
3.3
The pledges pursuant to Clause 3.1 are granted for the purpose of securing the Trustee Claim.
3.4
The Issuer hereby represents and warrants that it has (and will have, insofar as future rights and
claims are concerned) full and unaffected title to the rights and claims and any related security
thereto which are pledged hereby and that such rights and claims and such related security are
(and will be, insofar as future rights and claims are concerned) free and clear from any
encumbrances and adverse rights and claims of any third parties (other than the rights of the
Trustee hereunder).
3.5
The Trustee hereby authorises the Issuer pursuant to § 185 para. 1 of the German Civil Code
(Bürgerliches Gesetzbuch) to collect, in the Issuer's own name, all payments on account of the
payment claims pledged to the Trustee pursuant to Clause 3.1 from the debtors of the pledged
claims for payment onto the Transaction Account. As long as the authority has not terminated or
been revoked, the Issuer shall take all reasonable actions as may be necessary to enforce and
collect in full such payment claims.
3.6
The authority granted to the Issuer by the Trustee pursuant to Clause 3.5 above may be revoked
by the Trustee at any time if in the reasonable discretion (billiges Ermessen) of the Trustee such
revocation is necessary in order to protect the interests of the Transaction Creditors.
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3.7
The authority granted to the Issuer by the Trustee pursuant to Clause 3.5 above shall
automatically terminate upon the occurrence of any Issuer Event of Default.
3.8
The Trustee shall release and shall be entitled to release without further research and enquiries
its security interest in respect of any Participation Right Agreements or claims thereunder in
respect of which the Issuer notifies to the Trustee that a disposal has been made in accordance
with the Transaction Documents.
4.
REALISATION OF THE TRUSTEE COLLATERAL
4.1
The Trustee may enforce (verwerten) the Trustee Collateral granted to it hereunder upon the
occurrence of an Issuer Event of Default and the acceleration of the obligations under the Notes
pursuant to Section 8.1 of the Terms and Conditions in a manner determined at its reasonable
discretion and in accordance with this Clause 4.
4.2
The Trustee shall promptly upon becoming aware of the occurrence of an Issuer Event of
Default, give notice thereof (unless such Issuer Event of Default shall have been cured) to the
Noteholders, the Issuer, the Transaction Monitor, the Financial Advisor, each of the Rating
Agencies and the Cash Administrator.
4.3
Upon becoming aware of the occurrence of an Issuer Event of Default, the Trustee shall retain
the Trustee Collateral intact and collect payments made on the Collateral Assets. The Trustee
shall determine in its reasonable discretion whether the continued administration of the
Collateral Assets (other than the Jersey Collateral) or the disposal of the Collateral Assets, the
enforcement of the Trustee Collateral or any other course of action (other than in relation to the
Jersey Collateral) is preferable in order to protect the interests of the Transaction Creditors,
subject to Clause 4.4 below, and take action accordingly.
4.4
As soon as practicable after the Trustee has become aware of the occurrence of an Issuer Event
of Default, the Trustee shall give notice to the Noteholders specifying the manner in which it
intends to proceed with respect to the Collateral Assets (in particular, whether it intends to
administer or dispose of the Collateral Assets). If, within 30 calendar days of the publication of
such notice, the Trustee receives notice from a Majority of the Noteholders objecting to the
action proposed in the Trustee's notice, the Trustee shall not undertake such action. In the event
that the Trustee has not received a proposal from a Majority of the Noteholders (either together
with such objection or within 30 calendar days thereafter) regarding an alternative action or if
an action proposed is unduly burdensome for the Trustee, the Trustee shall be free to decide in
its reasonable discretion the action to take (and at which time) provided that such action has not
previously been objected to as herein contemplated. The Trustee shall be entitled to request
instructions from the Majority of the Noteholders on all matters relating to the administration or
disposal of the Collateral Assets or the enforcement of the Trustee Collateral and act
accordingly. If the Trustee at any time receives an instruction from the Majority of the
Noteholders proposing a specific course of action with respect to the Trustee Collateral or the
Collateral Assets, the Trustee shall undertake such action, unless such action is unduly
burdensome for the Trustee. "Majority of the Noteholders" means at any time, Noteholders
representing more than 66 2/3% of the aggregate Note Principal Amount of all Notes
outstanding at such time.
4.5
Following an Issuer Event of Default and the acceleration of the Notes pursuant to Section 8.1
of the Terms and Conditions, any proceeds from the Trustee Collateral, including from an
enforcement or any sale (net of costs, taxes (including, without limitation, any VAT), charges
and expenses) shall be applied by the Trustee pursuant to the Priority of Payments (as defined in
the Terms and Conditions).
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5.
REPRESENTATIONS OF THE TRUSTEE AND OF THE ISSUER
5.1
Each of the Trustee and the General Partner (in its capacity as general partner of the Issuer)
represents and warrants that as of the date hereof:
(i)
it is validly existing and has the legal capacity to perform the duties ascribed to it in the
Transaction Documents to which it is a party;
(ii)
this Trust Agreement has been duly authorised, executed and delivered by it; and
(iii)
a reason for terminating this Trust Agreement pursuant to Clause 11.1 has neither
occurred nor to its best knowledge is foreseeable.
5.2
The Issuer represents and warrants that as of the date hereof (i) it is duly established as a Jersey
limited partnership under the Limited Partnership (Jersey) Law 1994 and (ii) this Trust
Agreement and the other Transaction Documents to which it is a party have been duly executed
and delivered by it, and constitute legal, valid, and binding obligations of the Issuer.
6.
DUTIES AND RESPONSIBILITIES OF THE TRUSTEE
6.1
The Trustee shall be liable for breach of its obligations under this Trust Agreement only if and
to the extent that it fails to meet the standard of care of a prudent merchant (Sorgfaltspflicht
eines ordentlichen Kaufmanns).
6.2
Without prejudice to the provisions of Clause 6.1, the Trustee shall not be liable for:
(i)
any action of the Issuer or any Transaction Creditor, other than the Trustee, or any failure
to act by the Issuer or any Transaction Creditor, other than the Trustee, and
(ii)
the Notes or the Trustee Collateral being legal, valid, binding or enforceable, or for the
fairness of the provisions of the Terms and Conditions.
6.3
Money held by the Trustee in connection with its capacity as Trustee shall be held in trust
(treuhänderisch) for the benefit of the Transaction Creditors and shall be segregated from other
property held by the Trustee. The Trustee shall be under no liability for interest on any money
received by it in such capacity except as otherwise agreed upon with the Issuer.
6.4
The Trustee shall take delivery of and keep in custody the documents which are delivered to it
under the Transaction Documents (if any) and shall
6.5
(i)
keep such documents until one year after the termination of this Trust Agreement, or
(ii)
deliver such documents to the new Trustee if the Trustee is replaced in accordance with
Clause 11 hereof.
(a)
If the Issuer requests that the Trustee grants its consent or approval in any matter
hereunder, or in case of any other consent or approval requested pursuant to the
Transaction Documents, the Trustee may grant or withhold the requested consent or
approval in its reasonable discretion taking into account what the Trustee reasonably
believes to be the interests of the Transaction Creditors.
(b)
The Trustee undertakes to give its consent to the Issuer pursuant to Clause 7.3 only if all
the rights, claims and/or assets arising from the action in respect of which the consent is
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sought are pledged or assigned to the Trustee or, as applicable, an equivalent security
interest of the Trustee in such rights, claims and/or assets is created.
6.6
If the Trustee in the course of its activities obtains knowledge that the existence or the value of
the Trustee Collateral is at risk due to any failure of the Issuer to properly discharge its
obligations under this Trust Agreement or the other Transaction Documents to which it is a
party, the Trustee shall, at its reasonable discretion, take or initiate all actions which in the
opinion of the Trustee are desirable or expedient to avert such risk. The Trustee shall be
authorised to instruct the Issuer to properly discharge such obligations and perform the Issuer's
obligations under the Transaction Documents if the Issuer fails to do so.
6.7
The Trustee shall, as regards all of its duties, obligations and discretions hereunder or under the
Notes or the other Transaction Documents, except where expressly provided otherwise, solely
have regard to the interests of the Noteholders (and not the other Transaction Creditors), and the
interests of the Noteholders shall prevail in the event of any conflict of interest between the
Noteholders and any other Transaction Creditor. In the event of a conflict between the interests
of Noteholders of different Classes, the Trustee shall give priority to the Class ranking senior in
respect of the payment of interest pursuant to the Priority of Payments. In the event of a conflict
between the interests of Transaction Creditors other than the Noteholders, the Trustee shall give
priority to the Transaction Creditors ranking senior pursuant to the Priority of Payments.
6.8
The Trustee undertakes neither to assign or transfer, in whole or in part, the Trustee Claim and
the Trustee Collateral, except in connection with a replacement of the Trustee pursuant to
Clause 11, nor to give its consent to any transfer of the assets being the subject of the Trustee
Collateral by the Issuer, except in connection with a substitution of the Issuer pursuant to
Section 11 of the Terms and Conditions or as otherwise provided herein or in the Transaction
Documents.
6.9
The Trustee shall only be obliged to perform the Trustee Duties if, and to the extent that:
(i)
it is convinced (on reasonable grounds) that its fees and costs and disbursements, and
expenses and other amounts pursuant to Clause 9.1 and 9.2 hereunder will be paid and it
will be indemnified to its satisfaction (either by reimbursement of costs or in any other
way it deems appropriate) against all losses, liabilities, obligations, actions in and out of
court, costs, expenses and disbursements (including those of Advisors) and other amounts
pursuant to Clause 9.3 or under applicable law; or
(ii)
the Issuer has, upon the Trustee's request, paid an adequate advance for the Trustee's
claims pursuant to (i) above.
6.10 The Trustee may:
(i)
assume unless it has, in its capacity as Trustee, actual knowledge or actual notice to the
contrary, that (aa) any representation made by the Issuer is true and (bb) no Issuer Event
of Default has occurred;
(ii)
rely upon, and shall not incur any liability for relying upon, (aa) any notice, direction,
request, certificate, consent, statement, instrument, document or other writing believed by
it to be genuine and to have been signed or sent by the proper person, and (bb) any
statement made to it orally or by telephone and believed by it to be made by the proper
person;
(iii)
refrain from acting in accordance with an enforcement notice or any other instruction
until it shall have received such security as it may require for itself (whether by way of
payment in advance or otherwise) for all costs, claims, expenses (including legal fees)
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and liabilities which it will or may expend or incur in complying with such instructions
pursuant to Clause 9;
(iv)
do any act or thing in the exercise of any of the Trustee Duties which in its reasonable
discretion (in the absence of any instructions of the Majority of the Noteholders as to the
doing of such act or thing) it deems advisable for the protection and benefit of the
Noteholders.
6.11 The Trustee shall not be liable to the Noteholders for:
(i)
any action taken or not taken by it under or in connection with this Agreement or the
Transaction Documents; or
(ii)
the adequacy, accuracy, completeness or reasonableness of any representation, warranty,
statement, projection, assumption or information pursuant to or in connection with this
Agreement or the Transaction Documents or any other notice or document delivered
under or in connection herewith or therewith;
unless caused by an act or omission for which it is liable pursuant to Clause 6.1 hereof.
6.12 The Noteholders have not relied, will not rely and cannot rely on the Trustee and the Trustee
shall not be responsible for (unless provided otherwise herein or in the other Transaction
Documents):
(i)
checking or enquiring into the calculation of the payment obligations of the Companies
under the Participation Right Agreements with respect to principal, interest or otherwise
or the due and punctual payment thereof;
(ii)
checking or enquiring into the due execution, delivery, validity, legality, adequacy,
suitability, performance, enforceability or admissibility in evidence of any guarantee,
indemnity, security or other right given or created by the agreements or documents
creating or constituting the Trustee Collateral (in particular, but without limitation, the
Participation Right Agreements) or any obligations imposed thereby or assumed
thereunder;
(iii)
checking or enquiring into the ownership, value or sufficiency of any property the subject
of any of the Trustee Collateral, any priority interests in the Trustee Collateral, the right
or title of any person in or to any property comprised therein or the existence of any
encumbrance affecting the same;
(iv)
assessing or keeping under review on the Noteholders' behalf the financial condition,
creditworthiness, condition, affairs, status or nature of the Issuer or any Company or any
other debtor of the rights constituting the Trustee Collateral; or
(v)
contributing to any of the Companies additional debt or equity or other capital.
6.13 The Trustee:
(i)
shall not be liable for any failure, omission, or defect in perfecting the Trustee Collateral
including without limitation, any failure (aa) to make or effect or have the Issuer make or
effect any notification of the pledges or any other notification, (bb) to make any
recordings or filings or rerecording or refiling in connection therewith, or (cc) to give
notice to any person of the execution of any of the relevant documents;
(ii)
shall not, unless otherwise provided in this Agreement or the Security Documents, be
- 65 -
under any obligation to hold any title deeds or any other documents in connection with
the Trustee Collateral or take any steps to protect or preserve the same. The Trustee will
use all reasonable care to ensure the safe custody of all such title deeds and other
documents in its possession but shall not be liable for the damage or destruction of any
such deeds or documents save where caused by an act of the Trustee, any of its
employees, servants or agents for which it would be liable pursuant to Clause 6.1 hereof;
(iii)
may accept without enquiry, requisition or objection such right and title as the Issuer or
any other person may have to the property belonging to the Issuer or such other person
(or any part thereof) which is the subject matter of any of the Trustee Collateral, and the
Trustee shall not be bound or concerned to investigate or make any enquiry into the right
or title of the Issuer or such other person to such property (or any part thereof) or, without
prejudice to the foregoing, to require the Issuer or such other person to remedy any defect
in its right or title as aforesaid; and
(iv)
may refrain from doing anything which would or might in its reasonable opinion be
contrary to any relevant law, directive or regulation of any jurisdiction, and the Trustee
may do anything which is, in its reasonable opinion, necessary to comply with any such
law, directive or regulation.
6.14 The Trustee shall not be under any obligation to insure any Trustee Collateral, to insure any
property covered by the Trustee Collateral or to require any other person to maintain any such
insurance and shall not be responsible for any loss which may be suffered by any person as a
result of the lack of or inadequacy or insufficiency of any such insurance.
6.15 Nothing in this Agreement restricts the Trustee with respect to offering to third parties services
similar to those rendered under this Agreement. In particular, but without limitation, the Trustee
and any of its Affiliates may perform any service for, or enter into or be directly or indirectly
interested in any contract or financial or other transaction or arrangement, with the Issuer, the
Trustee or an Affiliate of either of them and may retain for their own benefit any profit,
remuneration, commission or other benefit received in connection with the provision of such
services or any such contract, transaction or arrangement. "Affiliate" means, for the purpose of
this Clause 6.15, in relation to a company, another company in the same group of companies
formed by a Holding Company and its Subsidiaries; and "Holding Company", in relation to
another company (its Subsidiary) and "Subsidiary", in relation to another company (its Holding
Company) have the meanings given in section 736 of the Companies Act 1985.
6.16 The Trustee shall (i) accept delivery of all notices given to it in accordance with the Transaction
Documents and (ii) exercise its reasonable discretion on all matters in respect of which its
approval, consent, determination or other decision is requested by any party to the Transaction
pursuant to the Transaction Documents, and give notice to the relevant party thereof.
7.
UNDERTAKINGS OF THE ISSUER AND ITS PARTNERS
7.1
The Issuer will comply in all material respects with applicable laws, rules, regulations,
judgments, awards and orders with respect to it, its business and its properties.
7.2
(a)
The Issuer shall take all reasonable steps to maintain its legal existence and shall keep in
full force and effect its rights as a limited partnership established under the laws of
Jersey, comply with the provisions of its constitutional documents, and obtain and
preserve its qualification to do business in each jurisdiction in which such qualifications
are or will be necessary to protect the validity and enforceability of the Transaction
Documents and the Trustee Collateral.
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(b)
(c)
7.3
The Issuer shall, except as contemplated in the Transaction Documents:
(i)
conduct its own business in its own name,
(ii)
pay all of its liabilities out of the limited partnership property, and
(iii)
observe all applicable legal formalities and other formalities required by its
constitutional documents.
The Issuer shall upon reasonable request grant access to the Trustee, the Financial
Advisor and the Transaction Monitor to all documents and information in its possession
relating to the Trustee Collateral, and shall procure copies thereof upon request at the
Issuer's cost.
For so long as any of the Notes are outstanding and unless permitted in the Transaction
Documents, the Issuer shall not, without the prior written consent of the Trustee:
(i)
engage in any business or activity other than issuing and selling the Notes, entering into,
and performing its obligations under, the Transaction Documents, enforcing its rights and
such other activities which are necessary or desirable having regard to the interests of the
Transaction Creditors, including, without limitation, entering into the agreements
contemplated hereby, suitable or convenient to accomplish the foregoing or are incidental
thereto or connected therewith;
(ii)
have any subsidiaries (except if the Issuer is substituted in accordance with the Terms and
Conditions) or employees;
(iii)
transfer, assign, pledge or otherwise encumber (or permit such to occur), any part of the
assets being the subject of the Trustee Collateral, or enter into or engage in any business
with respect to any part of such assets, except as expressly permitted by this Trust
Agreement or the other Transaction Documents;
(iv)
alienate, create or permit to subsist any pledge or other security interest in, any assets or
any part thereof or interest therein, unless permitted under (iii) above;
(v)
incur, assume or guarantee or become directly or indirectly liable with respect to any
indebtedness or any contingent obligations, other than pursuant to the Transaction
Documents and the other agreements and transactions expressly contemplated hereby;
(vi)
amend any of the Transaction Documents or its constitutional documents except as
required by applicable law;
(vii) engage in any transaction with any shareholder that would constitute a conflict of interest;
it being understood and agreed that the entry by the Issuer into the Corporate Services
Agreement with the Corporate Administrator shall not be deemed to constitute a conflict
of interest;
(viii) dissolve or liquidate in whole or in part, except as permitted hereunder or consolidate or
merge with any other person or convey or transfer its properties or assets substantially as
an entirety to any other person;
(ix)
save as provided for in the Issuer's partnership agreement, make any other distributions of
any kind whatsoever;
(x)
maintain any bank accounts other than the Issuer Accounts, the capital account of the
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Issuer or any other account permitted in the Transaction Documents, provided that, for
the avoidance of doubt, if any such account is closed the Issuer is entitled to open a
replacement account;
(xi)
lease or otherwise acquire any real property (including office premises or like facilities),
unless otherwise provided in the accommodation services agreement entered into between
the Issuer and Bedell Trust Company Limited on 19 October 2005 or in the Corporate
Services Agreement;
(xii) consolidate or merge with any other person or convey or transfer its properties or assets
substantially as an entirety to any other person;
(xiii) make any loans or advances to any entity; and
(xiv) when exercising its information rights under the Participation Right Agreements and
otherwise, exercise any influence on the management of the Companies.
7.4
The Issuer shall execute such additional documents and take such further action as the Trustee
may reasonably consider necessary or appropriate to give effect to this Trust Agreement and to
ensure the validity, binding effect and enforceability of the Terms and Conditions and the
Trustee Collateral.
7.5
Promptly upon becoming aware thereof, the Issuer shall notify the Trustee of (i) the occurrence
of an Issuer Event of Default under the Terms and Conditions, (ii) any termination event under
the other Transaction Documents and (iii) the exercise of any termination right arising
thereunder.
7.6
The Issuer shall procure that unless otherwise provided herein or instructed by the Trustee
pursuant to the Trust Agreement, all payments made to the Issuer be made by way of a bank
transfer to or deposit in the Issuer Accounts. Should any amounts payable to the Issuer be paid
in any way other than by deposit or bank transfer to the Issuer Accounts, the Issuer shall
promptly credit such amounts to the Issuer Accounts.
7.7
Clauses 7.1, 7.3, 7.4 and 7.5 shall apply mutatis mutandis to the Limited Partner, provided that
any reference to the Trustee Collateral shall be deemed to refer to the Tax Refund Claims (as
defined in the Tax Reimbursement Agreement) and to the partnership share of the Limited
Partner in the Issuer.
7.8
Clauses 7.1, 7.3, 7.4 and 7.5 shall apply mutatis mutandis to the General Partner, provided that
any reference to the Trustee Collateral shall be deemed to refer to the partnership share of the
General Partner in the Issuer.
7.9
The General Partner shall maintain its status as exempt company under Jersey law (as long as
such status is available).
7.10 The Limited Partner and the General Partner shall not amend the partnership agreement
constituting the Issuer without the prior written consent of the Trustee.
8.
RETAINING OF AGENTS
8.1
The Trustee may delegate the performance of its Trustee Duties, in whole or in part, only with
the consent of the Issuer and the approval of the Transaction Monitor, neither of which shall be
unreasonably withheld.
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8.2
(a)
The Trustee is authorised, in connection with the performance of the Trustee Duties, at its
own discretion, to engage and seek information and advice from legal counsel, financial
consultants, banks and other experts (each an "Advisor") at market prices (if appropriate,
after obtaining several offers), provided that the Trustee shall remain obliged (but without
prejudice to Clause 8.2(b) below) to fulfil its duties hereunder notwithstanding any such
advice.
(b)
The Trustee may rely on such written information and advice without having to make its
own investigations. The Trustee shall not be liable for any damages or losses caused by
its acting reasonably in reliance on information or advice of the Advisors. The Trustee
shall not be liable for any negligence of the Advisors. The Trustee shall only be liable for
the exercise of due care in the selection of any Advisor.
9.
FEES; INDEMNIFICATION
9.1
The Issuer will pay the Trustee a fee which shall be separately agreed between the Issuer and
the Trustee.
9.2
The Issuer shall bear and reimburse all reasonable costs and disbursements (including those of
Advisors) incurred (including in each case all applicable taxes), and pay all reasonable advances
requested, by the Trustee in connection with the performance of the Trustee Duties, in
particular, but without any limitation, any payments made or to be made to Advisors.
9.3
The Issuer shall indemnify the Trustee and its officers, directors, shareholders, employees,
attorneys, agents, administrators or other persons appointed by it under or with respect to any of
the Security Documents against all losses, claims, demands, liabilities, obligations (including
any taxes other than taxes on the Trustee's overall income or gains, which are imposed in the
future on the services under this Trust Agreement), actions in and out of court and costs, fees,
charges, expenses and disbursements incurred by the Trustee or by any of them in relation to or
arising out of the taking or holding of any of the Trustee Collateral, the exercise or purported
exercise of any of the rights, trusts, powers and discretion vested in any of them or any other
matter or thing done or omitted to be done in connection with this Trust Agreement or any other
Transaction Document or pursuant to any law or regulation (otherwise than as a result of a
breach of the standard of care provided for in Clause 6.1 by the Trustee).
10.
TAXES
10.1 The Issuer shall pay all stamp duties, registration or other taxes to which the Trust Agreement or
any action connected therewith may at any time be subject.
10.2 All payments of fees and reimbursements of expenses to the Trustee shall be increased by the
amount of any turnover taxes, value added taxes or similar taxes, other than taxes on the
Trustee's overall income or gains, which are imposed in the future on the services under this
Trust Agreement.
11.
TERMINATION; REPLACEMENT OF THE TRUSTEE
11.1 Subject to Clause 11.2, the Issuer shall be authorised to revoke the appointment of the Trustee
as trustee under this Trust Agreement (i) for good cause (aus wichtigem Grund), or (ii) after
having been so instructed in writing by Noteholders representing at least 25% of the aggregate
Note Principal Amount of all the Notes upon the occurrence of good cause (aus wichtigem
Grund), and the Issuer shall be obliged to revoke the appointment of the Trustee as trustee under
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this Trust Agreement in the case of (ii).
11.2 In the case of insolvency, bankruptcy, receivership, examinership, winding-up or liquidation of
the Issuer, the Trustee shall be obliged to resign if so instructed in writing by Noteholders
representing at least 25% of the aggregate Note Principal Amount of all the Notes upon the
occurrence of good cause (aus wichtigem Grund).
11.3 The Issuer (in the case of Clause 11.1) or the Trustee (in the case of Clause 11.2) shall promptly
appoint a successor Trustee, which must be a bank, financial services institution, auditing firm
or law firm with respect to which each of the Rating Agencies that had assigned ratings to the
Notes prior to such resignation or replacement confirms that the appointment of such successor
trustee will not result in a withdrawal or downgrading of such ratings.
11.4 No resignation or removal of the Trustee (unless due to good cause (aus wichtigem Grund) on
the part of the Trustee) shall become effective until the acceptance of appointment by the
successor Trustee in accordance with Clause 11.6. As long as any Notes are outstanding, the
Issuer shall ensure that a trustee is appointed at all times which has undertaken substantially the
same functions and obligations as the Trustee hereunder.
11.5 The Issuer shall give prompt notice of each resignation and each removal of the Trustee and
each appointment of a successor Trustee to each Rating Agency and to the Noteholders pursuant
to Section 12 of the Terms and Conditions. Each notice shall include the name of the successor
Trustee and the address of its principal office. If the Issuer fails to mail or provide such notice
within 10 days after acceptance of appointment by the successor Trustee, the successor Trustee
shall cause such notice to be given at the expense of the Issuer.
11.6 In the case of a replacement of the Trustee pursuant to this Clause 11:
12.
(i)
the Trustee shall forthwith transfer the Trustee Collateral and all assets, powers and
authorities under any Transaction Document, as well as its Trustee Claim and the pledges
granted to it to the successor Trustee. Without prejudice to this obligation, the Issuer shall
hereby be irrevocably authorised to effect such transfer on behalf of the Trustee as set out
in the first sentence and is for that purpose exempted from the restrictions under § 181 of
the German Civil Code (Bürgerliches Gesetzbuch) and any similar provisions contained
in the laws of any other country;
(ii)
the successor Trustee shall assume the Trustee's rights and obligations under each
Transaction Document to which it is a party; and
(iii)
any costs associated with the replacement of the Trustee shall be borne by the Issuer. If a
replacement of the Trustee is the result of the Trustee's breach of its obligations
hereunder, the Issuer shall be entitled to demand reimbursement from the Trustee in the
amount of such costs.
CONFIDENTIALITY
The Trustee shall keep confidential any information obtained in connection with the
performance of its duties under this Trust Agreement. The Trustee shall only disclose such
information (i) to its auditors, an Advisor or a third party retained in accordance with Clause 8
above, in each case to the extent that disclosure of such information is necessary for the
performance of their duties for the purposes of this Trust Agreement and the Trustee ensures
that the recipient shall keep such information confidential, (ii) if such information is or becomes
generally known in a manner not attributable to the Trustee, (iii) if the Trustee is legally
required to disclose such information or requested to do so by a competent public authority or
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(iv) if the disclosure of such information by the Trustee is legally permitted and necessary to
enforce any rights arising from the Notes or the other Transaction Documents or its own rights
as Trustee hereunder (including its right to receive payment of fees, costs, expenses and any
other amounts) or such disclosure is otherwise required in connection with the performance of
the Trustee's obligations under the Transaction Documents.
13.
LIMITED RECOURSE AND NON-PETITION
13.1 All payment obligations of the Issuer and the General Partner hereunder constitute obligations
exclusively to make payments in an amount limited to any credit on the Issuer Accounts and
proceeds from the Trustee Collateral received by the Trustee pursuant to the Trust Agreement
and the other Transaction Documents, in each case in accordance with and subject to the
Priority of Payments. This Agreement shall not give rise to any payment obligation in excess of
the foregoing and recourse shall be limited accordingly.
13.2 To the extent that such assets, or the proceeds from the realisation thereof, prove ultimately
insufficient to satisfy the claims of the Trustee in full, then any shortfall arising shall be
extinguished and the Trustee shall have no further claims against the Issuer, the General Partner
and the Limited Partner and their respective officers or directors, provided that the foregoing
shall be without prejudice to any termination or early redemption rights. Such assets and
proceeds shall be deemed to be "ultimately insufficient" at such time when, in the reasonable
opinion of the Trustee, no further assets are available and no further proceeds can be realised
therefrom to satisfy any outstanding claims of the Trustee, and neither assets nor proceeds will
be so available thereafter.
13.3 Each of the parties hereto shall not petition or take any other step or action for the winding up,
examinership, liquidation or dissolution of the Issuer, the General Partner or the Limited
Partner, nor for the appointment of a liquidator, examiner, receiver or other person in respect of
the Issuer, the General Partner or the Limited Partner, or their assets until after the expiry of a
period of one year and one day following the payment of all amounts payable under the Notes.
13.4 No recourse under any obligation, covenant, or agreement of any party contained in this
Agreement shall be had against any shareholder, member, officer or director of the Issuer, the
General Partner and the Limited Partner as such, by the enforcement of any assessment or by
any proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood
that this Agreement is a corporate or limited liability obligation of the Issuer, the General
Partner and the Limited Partner and no personal liability shall attach to or be incurred by the
shareholders, members, officers, agents or directors of the Issuer, the General Partner and the
Limited Partner as such, or any of them, under or by reason of any of the obligations, covenants
or agreements of the Issuer contained in this Agreement, or implied therefrom, and that any and
all personal liability for breaches by the Issuer, the General Partner and the Limited Partner of
any of such obligations, covenants or agreements, either at law or by statute or constitution
(whether in contract, tort or otherwise), of every such shareholder, member, officer, agent or
director is hereby expressly waived (to the extent permitted by applicable law) by the other
party to this Agreement as a condition of and consideration for the execution of this Agreement.
14.
COMMUNICATIONS; NOTEHOLDER NOTICES
14.1 All communications to the Noteholders under this Trust Agreement shall be given in accordance
with Section 12 of the Terms and Conditions. All other communications under this Trust
Agreement shall be made by e-mail, mail or fax, provided that notices regarding termination of
this Trust Agreement and other notices hereunder or the replacement of the Trustee shall be
given by mail or by fax confirmed by mail.
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14.2 All communications under this Trust Agreement shall be made in English.
14.3 Subject to written notification of any change of address, all communications under this Trust
Agreement to the parties set out below shall be directed to the following addresses:
[intentionally omitted]
14.4 Any instructions, consents and other notices which may be given by the Noteholders to the
Trustee pursuant to this Trust Agreement shall be valid if made as follows:
(i)
if given by one or more Noteholders concurrently together with proof (as determined by
the Trustee) of the Notes held at the time the relevant notice is given, provided that such
Notes meet the relevant requirements as to the minimum aggregate Note Principal
Amount stipulated herein to the satisfaction of the Trustee; or
(ii)
if the Trustee receives notices from Noteholders which do not satisfy the requirements set
out in (i) above but represent at least 25% of the aggregate Note Principal Amount of all
Notes, or the Trustee wishes to request instructions from Noteholders pursuant to the
provisions of this Agreement, the Trustee shall invite all Noteholders to give notices on
the relevant matter. The Trustee shall give notice to the Noteholders in accordance with
Clause 14.1 of such invitation together with a one month period during which notices
may be given by the Noteholders as well as of the form of such notices and other
applicable procedures, as determined by the Trustee (in particular, with the view to
avoiding multiple notices given in respect of any Note) in its reasonable discretion.
Following the termination of the notice period, a Noteholder notice on the relevant matter
shall have been validly made if the Trustee determines that the Noteholder notices duly
made in respect of such matter satisfy the relevant requirements as to the minimum
aggregate Note Principal Amounts stipulated herein.
For the avoidance of doubt, Clause 9.2 shall also apply to this Clause 14.4. The Trustee shall
notify the Noteholders in accordance with Clause 14.1 of any instruction, consent or other
notice validly given pursuant to (i) or (ii) above.
15.
AMENDMENTS
15.1 This Trust Agreement (including this Clause 15.1) may only be amended by agreement of the
parties hereto in writing. The Trustee when giving its consent to any amendments under this
Agreement is entitled to request the consent of the Majority of Noteholders if it considers
appropriate.
15.2 The parties hereto shall only agree to any amendment hereto with the prior confirmation by each
Rating Agency that such amendment will not adversely affect the then current rating of any
Class of Notes.
16.
STANDARD BUSINESS TERMS OF THE TRUSTEE
For the avoidance of doubt standard business terms and conditions of the Trustee shall not apply
with respect to this Trust Agreement.
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17.
SEVERABILITY
If any provision of this Trust Agreement is or becomes invalid in whole or in part, the
remaining provisions shall remain unaffected thereby.
18.
GOVERNING LAW; JURISDICTION
18.1 This Trust Agreement shall be governed by and construed in accordance with the laws of the
Federal Republic of Germany.
18.2 The non-exclusive place of jurisdiction for any action or other legal proceedings arising out of
or in connection with this Trust Agreement shall be the District Court (Landgericht) in
Frankfurt am Main. Each of the Issuer and the Trustee hereby submits to the jurisdiction of such
court. Each of the Issuer and the Trustee has appointed FIDEUROP Treuhandgesellschaft für
den Gemeinsamen Markt mbH, Wirtschaftsprüfungsgesellschaft, with its seat on the Issue Date
at Bockenheimer Anlage 15, Mozartplatz, 60322 Frankfurt am Main, Federal Republic of
Germany, as its agent who is authorised to receive service of process in relation to any legal
proceedings initiated before a German court. Each of the Issuer and the Trustee undertakes to
maintain an agent for service of process in the Federal Republic of Germany until all of its
obligations under this Agreement have been fulfilled.
19.
CONDITION PRECEDENT
The amendment and restatement of this Agreement dated 11 April 2006 shall take effect subject
to the condition precedent (aufschiebende Bedingung) that the Notes will be issued and that the
Issuer's claim for the payment of the subscription moneys for the Notes will be satisfied
pursuant to the Subscription Agreement.
20.
COUNTERPARTS
This Trust Agreement may be executed in one or more counterparts. Each signed counterpart
shall constitute an original, but all of which together shall constitute one and the same
agreement.
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PARTICIPATION RIGHT AGREEMENTS
The following is the text of the form of the Participation Right Agreements Type A and Type B. In
case of any overlap or inconsistency in the definition of a term or expression in the Participation Right
Agreements and elsewhere in this Prospectus, the definition in the Participation Right Agreements will
prevail. Only the German text of the Participation Right Agreements is legally binding; the English
translation appears for convenience only.
I.
Participation Right Agreement Type A
- Non-binding convenience translation Offer for Conclusion of a
Angebot auf Abschluss einer
GENUSSRECHTSVEREINBARUNG
Variante A HGB-Eigenkapitalinstrument
PARTICIPATION RIGHT AGREEMENT
Type A HGB Equity Instrument
abzuschließen zwischen
to be entered into between
[Name] [Adresse]
(UNTERNEHMEN)
[Name] [Address]
(COMPANY)
und
and
26 New Street, St. Helier, Jersey JE2 3RA, Channel Islands
(GLÄUBIGER).
26 New Street, St. Helier, Jersey JE2 3RA, Channel Islands
(CREDITOR).
§1
Genussrecht; Nennbetrag; Anfangstermin
§1
Participation Right; Nominal Amount; Start Date
1.1 Das UNTERNEHMEN gibt hiermit gegenüber dem
GLÄUBIGER das unwiderrufliche Angebot ab, ihm nach
Maßgabe der nachfolgenden Bedingungen ein
Genussrecht (das GENUSSRECHT) im Nennbetrag von
EUR [________] (der NENNBETRAG) einzuräumen.
Dieses Vertragsangebot erlischt am 31. Dezember
2005.
1.1 The COMPANY hereby irrevocably offers to grant to the
CREDITOR, subject to the terms specified below, a
participation right (Genussrecht, the PARTICIPATION
RIGHT) in the nominal amount of EUR [________]
(the NOMINAL AMOUNT). This offer shall expire on
December 31, 2005.
1.2 Der GLÄUBIGER kann dieses Vertragsangebot bis zu
dem in § 1.1 Satz 2 genannten Datum durch
Überweisung des NENNBETRAGS (abzüglich des gemäß
gesonderter Vereinbarung von dem G LÄUBIGER in
Abzug zu bringenden Abschlags in Höhe von [__]%
für Drittansprüche) auf das Konto des U NTERNEHMENS
bei der [Bank], Bankleitzahl [__________],
Kontonummer [__________] (oder ein anderes vom
UNTERNEHMEN gemäß § 13.1 benanntes Konto)
annehmen. Mit der Gutschrift des durch den Abschlag
verminderten NENNBETRAGS auf das Konto des
UNTERNEHMENS gemäß § 1.2 Satz 1 wird das
GENUSSRECHT zugunsten des GLÄUBIGERS begründet.
Der Tag dieser Kontogutschrift wird nachfolgend als
ANFANGSTERMIN bezeichnet.
1.2 The CREDITOR may accept this offer until the date
specified in § 1.1 sentence 2 by transfer of the
NOMINAL AMOUNT (less a discount in the amount of
[__]% for third party claims to be deducted by the
CREDITOR in accordance with a separate agreement) to
the COMPANY 'S bank account with the [Name of
Bank], bank code [__________], account number
[__________] (or to a different bank account specified
by the COMPANY in accordance with § 13.1). The
PARTICIPATION RIGHT shall be constituted for the
benefit of the CREDITOR at the time the NOMINAL
AMOUNT as reduced by the discount is credited to the
COMPANY 'S bank account according to § 1.2 sentence
1. The date of this credit entry shall be referred to
below as the START DATE.
1.3 Der GLÄUBIGER wird dem UNTERNEHMEN den
voraussichtlichen ANFANGSTERMIN spätestens eine
1.3 The CREDITOR shall give at least one week's advance
notice in writing to the COMPANY of the prospective
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Woche vorher schriftlich mitteilen.
START DATE.
§2
Vergütung; Vorauszahlung
2.1 (a)
§2
Remuneration; Advance Payment
Das UNTERNEHMEN hat dem GLÄUBIGER eine
Vergütung für den Zeitraum vom ANFANGSTERMIN
bis zum Tag der vollständigen
Rückzahlung des NENNBETRAGS zu zahlen (die
VERGÜTUNG). Die VERGÜTUNG berechnet sich
als Prozentsatz p.a. des NENNBETRAGS des
GENUSSRECHTS, der gemäß nachstehendem
Absatz (b) festgelegt wird. Sie erhöht sich unter
den in den § 2.5 genannten Voraussetzungen.
(b) Der Prozentsatz p.a. für die Berechnung der
VERGÜTUNG wird vom GLÄUBIGER oder einem
von ihm beauftragen Dritten spätestens eine
Woche vor dem voraussichtlichen ANFANGSTERMIN nach billigem Ermessen (§ 317 Abs. 1
BGB) verbindlich festgelegt und unverzüglich
nach Festlegung gemeinsam mit den Angaben
nach § 1.3 dem UNTERNEHMEN mitgeteilt. Wird
ein höherer Prozentsatz als [__]% p.a. mitgeteilt,
so
ist
das
UNTERNEHMEN
an
sein
Vertragsangebot gemäß § 1.1 nicht mehr
gebunden. Es kann in diesem Fall bis zum dritten
GESCHÄFTSTAG nach Zugang der Mitteilung dem
GLÄUBIGER ein erneutes Angebot unterbreiten,
diese Genussrechtsvereinbarung mit dem
mitgeteilten Prozentsatz abzuschließen. Der
GLÄUBIGER kann dieses Angebot binnen 3
Wochen nach Ablauf dieser Angebotsfrist in
entsprechender Anwendung des § 1.2 durch
Überweisung des NENNBETRAGS an das
UNTERNEHMEN annehmen.
The COMPANY shall pay to the CREDITOR a
remuneration for the period from the S TART
DATE to the day on which the NOMINAL AMOUNT
is repaid in full (the REMUNERATION). The
REMUNERATION shall be calculated as a
percentage rate p.a. of the N OMINAL AMOUNT of
the PARTICIPATION RIGHT, which shall be
determined in accordance with the following
para. (b). It shall increase subject to the conditions stated in § 2.5.
(b) The percentage rate p.a. for the calculation of the
REMUNERATION shall be determined with binding
effect by the CREDITOR or a third party appointed
by it at least one week in advance of the
prospective START DATE in its reasonable
discretion (§ 317 para. 1 of the German Civil
Code, Bürgerliches Gesetzbuch) and shall be
notified to the COMPANY without undue delay
following its determination and together with the
information pursuant to § 1.3. If a percentage
rate exceeding [__]% p.a. is notified, the
COMPANY shall be no longer bound by its offer
according to § 1.1. In this case, it may submit a
new offer to the CREDITOR until the third
business day following the day of receipt of the
notification to conclude the participation right
agreement on the basis of the notified percentage
rate. The CREDITOR may accept this offer within
three weeks following the expiration of this
deadline for submission of offers by transferring
the NOMINAL AMOUNT to the COMPANY ; § 1.2
shall apply mutatis mutandis.
2.2 Advance Payments on the Remuneration
2.2 Vorauszahlungen auf die Vergütung
(a)
2.1 (a)
Auf die VERGÜTUNG sind jeweils am 15. Januar,
15. April, 15. Juli und 15. Oktober eines jeden
Jahres (QUARTALSSTICHTAGE) VORAUSZAHLUNGEN zu leisten. Erster QUARTALSSTICHTAG ist
der 15. Januar 2006. Falls der betreffende
QUARTALSSTICHTAG kein GESCHÄFTSTAG ist, so
ist die VORAUSZAHLUNG am nächstfrüheren GESCHÄFTSTAG zu leisten. GESCHÄFTSTAG ist jeder
Tag, an dem in Frankfurt am Main Geschäftsbanken für den allgemeinen Geschäftsverkehr
geöffnet sind. Der gemäß vorstehenden Sätzen
bestimmte Zahlungstermin für die VORAUSZAHLUNGEN wird jeweils als VORAUSZAHLUNGSTERMIN bezeichnet.
(a) The COMPANY shall make ADVANCE PAYMENTS
on the REMUNERATION on January 15, April 15,
July 15, and October 15 of each year
(QUARTERLY RECORD DATES). The first
QUARTERLY RECORD DATE shall be January 15,
2006. If the respective QUARTERLY RECORD
DATE is not a BUSINESS DAY, the ADVANCE
PAYMENT shall be made on the next preceding
BUSINESS DAY. BUSINESS DAY means each day
on which commercial banks in Frankfurt am
Main are open for general business. The payment
date for ADVANCE PAYMENTS as provided above
is referred to as the respective ADVANCE
PAYMENT DATE.
(b) Die VORAUSZAHLUNG berechnet sich jeweils aus
dem gemäß § 2.1 bestimmten, gegebenenfalls
gemäß § 2.5 erhöhten Prozentsatz auf den
NENNBETRAG zeitanteilig für die BERECHNUNGSPERIODE des betreffenden VORAUSZAHLUNGSTER MINS.
(b) The ADVANCE PAYMENT shall be calculated in
each case pro rata temporis for the C ALCULATION
PERIOD of the relevant ADVANCE PAYMENT DATE
by applying the percentage rate as determined
pursuant to § 2.1 and, if applicable, increased
according to § 2.5, on the NOMINAL AMOUNT.
BERECHNUNGSPERIODE
für
den
ersten
VORAUSZAHLUNGSTERMIN ist der Zeitraum vom
CALCULATION PERIOD for the first ADVANCE
PAYMENT DATE means the period from (and
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ANFANGSTERMIN (einschließlich) bis zum ersten
QUARTALSSTICHTAG
(ausschließlich).
Die
BERECHNUNGSPERIODE für jeden späteren
VORAUSZAHLUNGSTERMIN ist der Zeitraum vom
unmittelbar vorausgegangenen QUARTALSSTICHTAG (einschließlich) bis zum nächstfolgenden
QUARTALSSTICHTAG (ausschließlich).
2.3 Vergütung
(a)
including) the START DATE to (and excluding)
the first QUARTERLY RECORD DATE. The
CALCULATION PERIOD for each subsequent
ADVANCE PAYMENT DATE means the period from
(and including) the immediately preceding
QUARTERLY RECORD DATE to (and excluding)
the next following QUARTERLY RECORD DATE.
2.3 Remuneration
Ein Anspruch auf die VERGÜTUNG für ein Geschäftsjahr
entsteht
am
darauffolgenden
ABRECHNUNGSTERMIN, wenn und soweit ein ausschüttungsfähiger Bilanzgewinn für das vorausgegangene Geschäftsjahr im testierten Jahresabschluss des UNTERNEHMENS ausgewiesen wird
oder durch Auflösung von nicht gesetzlich gegen
Ausschüttung geschützten Eigenkapitalbestandteilen (freie Rücklagen) oder steuerfreien Rücklagen ausgewiesen werden könnte.
(a)
The REMUNERATION claim for a financial year
shall come into existence on the next
SETTLEMENT DATE, if and to the extent that a
balance sheet profit which is available for distribution is reported for the preceding financial
year in the COMPANY 'S audited financial statements or could be reported by releasing equity
components which are not legally protected
against distribution (free reserves) or tax-free reserves.
Für die Zwecke dieser Regelung ermittelt sich
der Bilanzgewinn nach möglichen Verlustaufholungen gemäß § 3.2 und ohne Berücksichtigung von Ansprüchen nach diesen Genussrechtsbedingungen und Ansprüchen von Gläubigern von Finanzierungsinstrumenten, die gleichrangig mit oder nachrangig zu diesem
GENUSSRECHT sind. Falls ein Gewinnabführungsvertrag mit einem Gesellschafter des
UNTERNEHMENS besteht, erfolgt die Ermittlung
vor Ergebnisabführung. Wird in dem Jahresabschluss des UNTERNEHMENS der Posten "Bilanzgewinn/-verlust" nicht ausgewiesen, so ermittelt
sich der Bilanzgewinn im Wege einer Nebenrechnung unter Berücksichtigung der vorstehenden Regelungen.
For the purposes of this provision, the balance
sheet profit shall be determined after possible
loss recoveries according to § 3.2 and disregarding claims arising under the terms of this participation right agreement as well as claims of
creditors of financing instruments which rank
pari passu with or junior to this P ARTICIPATION
RIGHT. In case of a profit transfer agreement with
a shareholder of the C OMPANY, this determination shall be made pre-profit transfer. If the item
"balance sheet profit/loss" is not reported in the
financial statements of the COMPANY, the balance sheet profit shall be determined by way of
an auxiliary calculation having regard to the preceding provisions.
ABRECHNUNGSTERMIN
ist
jeweils
der
GESCHÄFTSTAG, der auf den 7. Kalendertag nach
der Vorlage des testierten Jahresabschlusses an
den GLÄUBIGER folgt.
SETTLEMENT DATE means the respective
BUSINESS DAY following the seventh calendar
day after submission of the audited financial
statements to the CREDITOR.
Reicht der so ermittelte Bilanzgewinn nicht aus,
um die Ansprüche aus dem GENUSSRECHT sowie
aus gleichrangigen Finanzierungsinstrumenten
vollständig zu befriedigen, die dem GLÄUBIGER
bis spätestens zum ANFANGSTERMIN angezeigt
worden sind, so steht der Bilanzgewinn zur Bedienung des GENUSSRECHTS nur im Verhältnis
des NENNBETRAGS des GENUSSRECHTS zur
Summe aus dem NENNBETRAG des Genussrechts
und den Nennbeträgen anderer, gleichrangiger
Finanzierungsinstrumente zur Verfügung. Für die
Zwecke dieser Vereinbarung gelten Finanzierungsinstrumente als gleichrangig mit oder nachrangig zum GENUSSRECHT, wenn diese in der Liquidation oder in einem Insolvenzverfahren des
UNTERNEHMENS gleichrangig mit oder nachrangig zum GENUSSRECHT zu bedienen sind.
If the balance sheet profit determined as provided above is not sufficient to completely discharge all claims arising under the
PARTICIPATION RIGHT and other financing instruments ranking pari passu thereto which have
been notified to the CREDITOR by the START
DATE at the latest, the balance sheet profit shall
be available for the PARTICIPATION RIGHT only in
the proportion of the NOMINAL AMOUNT of the
PARTICIPATION RIGHT to the sum of the NOMINAL
AMOUNT of the PARTICIPATION RIGHT and the
nominal amounts of other financing instruments
ranking pari passu thereto. For the purposes of
this agreement, financing instruments are considered as ranking pari passu with or junior to the
PARTICIPATION RIGHT if they are to be discharged
pari passu with or junior to the PARTICIPATION
RIGHT in case of liquidation or insolvency of the
COMPANY.
(b) Wenn und soweit die Voraussetzungen des
vorstehenden Absatzes (a) für die Entstehung eines Anspruchs auf VERGÜTUNG nicht vorliegen,
(b) If and to the extent that the requirements of the
preceding para. (a) for the R EMUNERATION claim
to come into existence are not met, the claim
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entsteht dieser an den nächstfolgenden
ABRECHNUNGSTERMINEN, wenn und soweit diese
Voraussetzungen dann vorliegen. Mehrere Ansprüche auf VERGÜTUNG entstehen an einem
ABRECHNUNGSTERMIN nach Maßgabe des vorangegangenen Absatzes (a) in der zeitlichen Reihenfolge der ihnen zugeordneten Geschäftsjahre.
Die Regelung des § 6.2(a) bleibt unberührt.
(c)
Unverzüglich nach der Vorlage des testierten
Jahresabschlusses wird das U NTERNEHMEN die
Höhe der VERGÜTUNG ermitteln und dem
GLÄUBIGER mitteilen. Im Falle von irgendwelchen Meinungsverschiedenheiten in Bezug auf
die VERGÜTUNG kann der GLÄUBIGER einen unabhängigen Wirtschaftsprüfer mit deren Bestimmung und hierzu gegebenenfalls der Wahrnehmung von Prüfungsrechten nach § 10.2 beauftragen. Die Feststellungen des Wirtschaftsprüfers
sind für den GLÄUBIGER und das UNTERNEHMEN
verbindlich, sofern diese nicht offensichtlich unrichtig sind.
(c)
Immediately upon submission of the audited
financial statements, the COMPANY shall determine the amount of the REMUNERATION and report it to the CREDITOR. In case of any disputes
regarding the REMUNERATION, the CREDITOR
may appoint an independent auditor in order to
determine the REMUNERATION and, where appropriate, to exercise the audit rights pursuant to §
10.2. The findings of the auditor shall be binding
on the CREDITOR and the COMPANY unless manifestly incorrect.
2.4 Netting of Advance Payment and Remuneration
2.4 Verrechnung von Vorauszahlung und Vergütung
(a)
shall come into existence on the next following
SETTLEMENT DATES if and to the extent these requirements are met on these dates. Multiple
claims to REMUNERATION shall come into existence on a specific SETTLEMENT DATE in accordance with the preceding para. (a) in the
chronological order of the related financial years.
The provision of § 6.2(a) remains unaffected.
Ein nach § 2.3 entstandener Anspruch auf
VERGÜTUNG für ein Geschäftsjahr wird mit den
geleisteten VORAUSZAHLUNGEN verrechnet, die
sich auf BERECHNUNGSPERIODEN beziehen, welche in das Geschäftsjahr fallen. Erstreckt sich
eine BERECHNUNGSPERIODE über zwei Geschäftsjahre des UNTERNEHMENS, so entfällt auf
das frühere dieser Geschäftsjahre der zeitanteilige Betrag der VORAUSZAHLUNG berechnet für
den Zeitraum vom ersten Tag der BERECHNUNGSPERIODE bis zum ersten Tag des darauffolgenden Geschäftsjahres; auf das spätere dieser
Geschäftsjahre entfällt der zeitanteilige Betrag
der VORAUSZAHLUNG berechnet für den Zeitraum
vom ersten Tag dieses Geschäftsjahres bis zum
letzten Tag dieser BERECHNUNGSPERIODE.
(a)
A REMUNERATION claim for a financial year
which has come into existence pursuant to § 2.3
shall be netted with the ADVANCE PAYMENTS
corresponding to CALCULATION PERIODS falling
in the respective financial year. If a
CALCULATION PERIOD extends across two financial years of the COMPANY, the amount of
ADVANCE PAYMENTS for the antecedent financial
year shall be calculated pro rata temporis for the
period from the first day of the C ALCULATION
PERIOD to the first day of the next financial year;
the amount of ADVANCE PAYMENTS for the subsequent financial year shall be calculated pro rata
temporis for the period from the first day of such
financial year to the last day of the CALCULATION
PERIOD.
(b) Ein im Rahmen der Verrechnung nach Absatz (a)
zugunsten einer Partei entstehender Saldo ist von
der jeweils anderen Partei auszugleichen. Zahlungen des UNTERNEHMENS und (vorbehaltlich
der Regelungen der § 15.1 und § 15.2) des
GLÄUBIGERS
sind
am
darauffolgenden
VORAUSZAHLUNGSTERMIN zur Zahlung fällig.
(b) Any balance resulting from the netting pursuant
to para. (a) for the benefit of one party shall be
compensated by the respective other party. Payments to be made by the COMPANY or (subject
to the provisions in § 15.1 and § 15.2) the
CREDITOR shall become due on the next following ADVANCE PAYMENT DATE.
2.5 Erhöhung der Vergütung bei verlängerten Zahlungsperioden
2.5 Increase of Remuneration in Case of Extended Payment Periods
Die VERGÜTUNG in Höhe des gemäß § 2.1 bestimmten
Prozentsatzes ist auf der Basis vierteljährlicher
VORAUSZAHLUNGEN ohne Rückerstattung nach § 2.4
kalkuliert. Sofern mangels ausreichender F REIER
MITTEL (§ 8.2) eine VORAUSZAHLUNG nicht am
betreffenden VORAUSZAHLUNGSTERMIN geleistet wird
oder eine Rückerstattung gemäß § 2.4 erfolgt, so
erhöht sich aufgrund der sich hieraus ergebenden
verlängerten Zahlungsperioden der auf die betreffende
BERECHNUNGSPERIODE anwendbare Prozentsatz der
VERGÜTUNG. Die Erhöhung dieses Prozentsatzes
erfolgt auf der Grundlage einer Staffel gemäß
Anlage 1 zu dieser Genussrechtsvereinbarung.
The REMUNERATION in the amount of the percentage
rate as determined pursuant to § 2.1 is calculated on
the basis of quarterly ADVANCE PAYMENTS without
any refund according to § 2.4. If, due to a lack of sufficient FREE ASSETS (§ 8.2), an ADVANCE PAYMENT is
not made on the relevant ADVANCE PAYMENT DATE, or
if a refund according to § 2.4 is made, the percentage
rate of the REMUNERATION applicable to the relevant
CALCULATION PERIOD shall be increased due to the
extended payment periods resulting from such nonpayment. The increase of the percentage rate shall be
subject to the interest table according to Annex 1 of
this participation right agreement.
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§3
Verlustteilnahme; Verlustaufholung
§3
Loss Participation; Loss Recovery
3.1 Der RÜCKZAHLUNGSBETRAG des GENUSSRECHTS vermindert sich um einen im testierten Jahresabschluss
des UNTERNEHMENS ausgewiesenen Jahresfehlbetrag.
Die Verlustteilnahme tritt jedoch nur ein, wenn und
soweit ein Jahresfehlbetrag andernfalls durch
GESCHÜTZTES EIGENKAPITAL (§ 8.1) gedeckt werden
müsste und keine gegenüber dem G ENUSSRECHT nachrangigen Finanzierungsinstrumente mit Verlustbeteiligung für die Verlustdeckung zur Verfügung stehen.
Eine Verlustteilnahme führt nicht zu einer Herabsetzung des NENNBETRAGS des GENUSSRECHTS insbesondere für die Zwecke der Berechnung der VERGÜTUNG.
3.1 The REPAYMENT AMOUNT of the PARTICIPATION RIGHT
shall be decreased by an annual deficit reported in the
audited financial statements of the C OMPANY. However, the loss participation shall occur only if and to
the extent an annual deficit would otherwise have to
be covered by PROTECTED EQUITY CAPITAL (§ 8.1) and
if and to the extent no financing instruments subject to
loss participation ranking junior to the P ARTICIPATION
RIGHT are available for loss recovery. A loss participation shall not decrease the NOMINAL AMOUNT of the
PARTICIPATION RIGHT, in particular for the purpose of
calculating the REMUNERATION.
Der RÜCKZAHLUNGSBETRAG entspricht am ANFANGSTERMIN dem NENNBETRAG des GENUSSRECHTS. Danach wird der RÜCKZAHLUNGSBETRAG durch Verlustteilnahmen vermindert (nicht jedoch unter den Betrag
von Null) und erhöht sich durch Verlustaufholungen.
At the START DATE, the REPAYMENT AMOUNT corresponds to the NOMINAL AMOUNT of the PARTICIPATION
RIGHT. Thereafter, the REPAYMENT AMOUNT shall be
decreased by loss participations (however not below
zero) and shall be increased by loss recoveries.
3.2 Zukünftige Jahresüberschüsse sind nach Wiederherstellung des GESCHÜTZTEN EIGENKAPITALS vorrangig
zur Heraufsetzung des R ÜCKZAHLUNGSBETRAGS bis
maximal zum NENNBETRAG des GENUSSRECHTS zu
verwenden.
3.2 Future annual surpluses shall, after recovery of the
PROTECTED EQUITY CAPITAL, be used preferentially to
increase the REPAYMENT AMOUNT up to the NOMINAL
AMOUNT of the PARTICIPATION RIGHT.
3.3 Falls das UNTERNEHMEN mit dem GENUSSRECHT
gleichrangige Finanzierungsinstrumente mit Verlustbeteiligung ausgegeben hat, die dem GLÄUBIGER bis
spätestens zum ANFANGSTERMIN angezeigt worden
sind, erfolgt die Verlustteilnahme bzw. die Verlustaufholung im Verhältnis des RÜCKZAHLUNGSBETRAGS
des GENUSSRECHTS und der jeweiligen Nennbeträge
dieser Finanzierungsinstrumente.
3.3 If the COMPANY has issued financing instruments with
a loss participation ranking pari passu with the
PARTICIPATION RIGHT which have been notified to the
CREDITOR by the START DATE at the latest, the loss
participation or, as the case may be, the loss recovery
shall be effected in the proportion of the R EPAYMENT
AMOUNT of the PARTICIPATION RIGHT to the respective
nominal amounts of these financing instruments.
§4
Laufzeit des Genussrechts
§4
Term of the Participation Right
4.1 Das GENUSSRECHT wird an dem VORAUSZAHLUNGSTERMIN zur Rückzahlung gemäß § 6 fällig, der
auf den Ablauf des siebten Jahres gerechnet ab dem
ANFANGSTERMIN folgt (der VORGESEHENE ENDFÄLLIGKEITSTERMIN).
4.1 The PARTICIPATION RIGHT shall be due for repayment
pursuant to § 6 on the ADVANCE PAYMENT DATE following the expiration of the seventh year calculated
from the START DATE (the SCHEDULED FINAL
MATURITY DATE).
4.2 Die Laufzeit des GENUSSRECHTS verlängert sich unter
den Voraussetzungen und nach Maßgabe des § 6.3(a).
4.2 The term of the PARTICIPATION RIGHT shall be extended subject to the conditions specified in and according to § 6.3(a).
§5
Kündigung
§5
Termination
5.1 Das UNTERNEHMEN und der GLÄUBIGER sind berechtigt, diese Vereinbarung aus wichtigem Grund jederzeit und (vorbehaltlich § 5.5) mit sofortiger Wirkung
zu kündigen (AUßERORDENTLICHE KÜNDIGUNG).
5.1 Both the COMPANY and the CREDITOR shall be entitled
to terminate this agreement for good cause (aus
wichtigem Grund) at any time and (subject to § 5.5)
with immediate effect (EXTRAORDINARY TERMINATION).
5.2 Wichtige Gründe für die AUßERORDENTLICHE KÜNDIGUNG des GLÄUBIGERS stellen insbesondere dar:
5.2 Good cause for an EXTRAORDINARY TERMINATION by
the CREDITOR shall be in particular:
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(i)
die nicht vollständige Erfüllung der Zahlungsverpflichtungen des UNTERNEHMENS gemäß dieser
Genussrechtsvereinbarung an zwei aufeinander
folgenden Zahlungsterminen;
(i)
the incomplete performance of the payment obligations of the COMPANY under this participation
right agreement on two consecutive payment
dates;
(ii) der Verzug des UNTERNEHMENS in Bezug auf
seine Zahlungsverpflichtungen gemäß dieser Genussrechtsvereinbarung in einem Gesamtbetrag
von mindestens der halben jährlichen
VERGÜTUNG (ohne Erhöhung nach § 2.5);
(ii) the default of the COMPANY with respect to its
payment obligations under this participation right
agreement in an aggregate amount of at least half
of the annual REMUNERATION (exclusive of an
increase according to § 2.5);
(iii) die fehlende Autorisierung zur Begründung des
GENUSSRECHTS durch die zuständigen Organe
des UNTERNEHMENS;
(iii) lack of authorisation by the competent bodies of
the COMPANY to constitute the PARTICIPATION
RIGHT;
(iv) eine oder mehrere Zusicherungen des
UNTERNEHMENS in § 9 sind unzutreffend, es sei
denn, dieser Umstand ist UNWESENTLICH.
(iv) one or more of the undertakings made by the
COMPANY in § 9 are incorrect, unless this fact is
IMMATERIAL.
Ein Umstand ist UNWESENTLICH, wenn (aa) die
von
der
BONITÄTSBEURTEILUNGSAGENTUR
(§ 12.4) vorgenommene BONITÄTSBEURTEILUNG
(§ 12.4) aufgrund dieses Umstands nicht herabgestuft wird und (bb) die Rechtsstellung und die
wirtschaftlichen Interessen des GLÄUBIGERS
durch diesen Umstand nicht wesentlich und
nachhaltig beeinträchtigt werden;
A circumstance is IMMATERIAL if (aa) the
CREDIT APPRAISAL (§ 12.4) prepared by the
CREDIT APPRAISAL AGENCY (§ 12.4) is not
downgraded for reason of this circumstance and
(bb) the legal position as well as the economic
interests of the CREDITOR are not materially and
permanently affected by this circumstance;
(v)
die Verletzung einer Verpflichtung des
UNTERNEHMENS aus den §§ 10-12. Im Falle einer
Verletzung von § 10.1 ist eine Kündigung nur
dann zulässig, wenn das UNTERNEHMEN der
betreffenden Verpflichtung auch innerhalb von
zwei Wochen nach Aufforderung durch den
GLÄUBIGER nicht nachgekommen ist. In den übrigen Fällen ist eine Kündigung nur dann zulässig, wenn das UNTERNEHMEN der Verletzung innerhalb einer Woche nach Aufforderung durch
den GLÄUBIGER nicht abgeholfen hat, es sei
denn, dieser Umstand ist UNWESENTLICH;
(v)
the breach of an obligation of the C OMPANY
pursuant to §§ 10-12. In case of a breach of
§ 10.1, termination shall be permissible only if
the COMPANY continues not to fulfill the
respective obligation within two weeks upon
demand by the CREDITOR. In all other cases, a
termination shall be permissible only if the
COMPANY has not remedied the breach within
one week upon demand by the CREDITOR, unless
this fact is IMMATERIAL;
(vi) der Eintritt eines K ONTROLLWECHSELS oder eine
Maßnahme des UNTERNEHMENS, die außerhalb
seines ordentlichen und üblichen Geschäftsbetriebs liegt (wie insbesondere die vollständige
oder teilweise Einstellung des von dem
UNTERNEHMEN betriebenen Geschäftsbetriebs,
die Übertragung des operativen Geschäfts des
UNTERNEHMENS auf verbundene Unternehmen
oder Dritte), oder der Abschluss eines Beherrschungs- und/oder Gewinnabführungsvertrags
als beherrschtes Unternehmen ohne vorherige
schriftliche Zustimmung des GLÄUBIGERS, es sei
(vi) the occurrence of a C HANGE OF CONTROL or an
action taken by the COMPANY outside of its ordinary and usual business operations (such as, in
particular, the complete or partial discontinuance
of the COMPANY's operations, the transfer of the
operational business of the C OMPANY to affiliated companies or to third parties), or conclusion
of a domination agreement and/or profit transfer
agreement with the COMPANY being the dominated party, without the prior written consent of
the CREDITOR, unless this fact is IMMATERIAL.
Ein KONTROLLWECHSEL liegt vor, wenn eine
Partei erstmalig direkt oder indirekt eine Mehrheitsbeteiligung (§ 16 AktienG) an dem
UNTERNEHMEN erwirbt oder durch Veräußerung
bzw. Belastung der Geschäftsanteile an dem
UNTERNEHMEN oder durch Umwandlung (§ 1
Abs. 1 UmwG) eine vergleichbare Rechtstellung
erlangt. Die erstmalige Zulassung von Anteilen
am UNTERNEHMEN zum Börsenhandel gilt nicht
als KONTROLLWECHSEL;
A CHANGE OF CONTROL means that a party acquires, for the first time, either directly or indirectly, a majority interest (§ 16 of the German
Stock Corporation Act, Aktiengesetz) in the
COMPANY or obtains a comparable legal status
by disposition of shares in the C OMPANY or by
sale or encumbrance of shares in the C OMPANY
or by a transformation (Umwandlung) of the
COMPANY (§ 1 para. 1 of the German Transformation Act, Umwandlungsgesetz). The initial
admission of shares in the C OMPANY to trading
- 79 -
on a stock exchange shall not be deemed to constitute a CHANGE OF CONTROL;
(vii) (aa) Ausschüttungen an oder Entnahmen durch
die Gesellschafter des U NTERNEHMENS, solange
fällige Zahlungsansprüche des GLÄUBIGERS nicht
vollständig bedient worden sind, oder (bb) Ausschüttungen für das laufende oder das vorausgegangene Geschäftsjahr oder Entnahmen während
dieses Zeitraums, sofern aus diesem Grund Zahlungsansprüche des GLÄUBIGERS mangels FREIER
MITTEL (§ 8) nicht entstanden sind. Ist das
UNTERNEHMEN eine Personengesellschaft, sind
Entnahmen zur Bedienung von Steuerverbindlichkeiten der Gesellschafter zulässig, die sich im
Zusammenhang mit Einkünften gemäß § 15 Abs.
1 Nr. 2 EStG aus ihrer Beteiligung an dem
UNTERNEHMEN für Veranlagungszeiträume nach
dem ANFANGSTERMIN ergeben;
(vii) (aa) distributions to or withdrawals by the shareholders of the COMPANY for as long as due payment claims of the CREDITOR are not discharged
in full, or (bb) distributions for the current or the
previous financial year or withdrawals during
this period, if this causes payment claims of the
CREDITOR not to come into existence due to a
lack of FREE ASSETS (§ 8). If the COMPANY has
the legal form of a partnership, withdrawals
made for the purpose of discharging the partners'
tax liabilities in connection with income according to § 15 para. 1 no. 2 of the German Income
Tax Act (Einkommensteuergesetz) resulting from
a participation in the COMPANY during assessment periods subsequent to the START DATE shall
be permissible;
(viii) Maßnahmen mit der Folge der Erhöhung des
GESCHÜTZTEN EIGENKAPITALS ohne gleichzeitigen Zufluss von Vermögensgegenständen in betragsmäßig gleichem Umfang, insbesondere Kapitalerhöhung aus Gesellschaftsmitteln sowie
Rückkauf oder Einziehung eigener Geschäftsanteile bzw. Aktien; die Vornahme von Gewinnausschüttungen wird durch diesen Satz nicht berührt;
(viii) arrangements effecting an increase in P ROTECTED
EQUITY CAPITAL without simultaneous inflow of
assets of equal value, in particular a nominal
capital increase out of own assets and the repurchase or redemption of shares; profit distributions shall not be affected by this sentence;
(ix) die Liquidation des UNTERNEHMENS; oder
(ix) the liquidation of the COMPANY ; or
(x) die Eröffnung eines Insolvenzverfahrens über
das Vermögen des UNTERNEHMENS oder die
Abweisung der Eröffnung eines derartigen Verfahrens mangels Masse.
(x) the opening of insolvency proceedings with respect to the assets of the COMPANY or the dismissal of the opening of such proceedings for
lack of assets.
5.3 Eine AUßERORDENTLICHE KÜNDIGUNG gemäß § 5.2 (i)
oder (ii) kann von dem GLÄUBIGER während der Dauer
einer UNTERNEHMENSKRISE nicht ausgesprochen werden. Endet die UNTERNEHMENSKRISE , so ist das Kündigungsrecht bei Vorliegen der Voraussetzungen des
§ 5.2(i) oder (ii) wieder ausübbar. Die Parteien dieser
Vereinbarung sind sich darüber einig, dass der Eintritt
einer wesentlichen Verschlechterung in den Vermögensverhältnissen
des
UNTERNEHMENS
den
GLÄUBIGER
nicht
zur
AUßERORDENTLICHEN
KÜNDIGUNG berechtigt, wenn nicht zugleich einer der
in § 5.2 genannten oder sonstige wichtige Gründe vorliegen.
5.3 The right to an EXTRAORDINARY TERMINATION according to § 5.2 (i) or (ii) may not be exercised by the
CREDITOR during a COMPANY CRISIS. If the COMPANY
CRISIS ceases, the right to termination may be exercised again subject to the requirements of § 5.2(i) or
(ii). The parties to this agreement acknowledge that a
material deterioration of the economic condition of the
COMPANY shall not entitle the CREDITOR to an
EXTRAORDINARY TERMINATION, unless there are concurrently circumstances constituting good cause either
with the meaning of § 5.2 or in general.
5.4 Sollte sich herausstellen, dass das G ENUSSRECHT nicht
die Anforderungen des Handelsgesetzbuchs für den
Ausweis als Eigenkapital erfüllt oder Zahlungen auf
das GENUSSRECHT nicht steuerlich als Betriebsausgaben abzugsfähig sind, hat das UNTERNEHMEN kein außerordentliches Kündigungsrecht.
5.4 The COMPANY shall not be entitled to an
EXTRAORDINARY TERMINATION if the PARTICIPATION
RIGHT would not satisfy the requirements stipulated in
the German Commercial Code (Handelsgesetzbuch)
for the accounting as equity capital or if payments
made on the PARTICIPATION RIGHT were not tax-deductible as business expenses.
5.5 (a)
5.5 (a)
Der GLÄUBIGER hat die VORRANGIGEN KREDITGEBER binnen einer Woche nach Ablauf der
in Absatz (b) genannten Wochenfrist schriftlich
von einer AUßERORDENTLICHEN KÜNDIGUNG zu
unterrichten. Hierzu hat er vom UNTERNEHMEN
die Mitteilung der VORRANGIGEN KREDITGEBER
gemäß Absatz (c) zu verlangen.
- 80 -
The CREDITOR shall give written notice of an
EXTRAORDINARY TERMINATION to the SENIOR
LENDERS within one week after expiration of the
one week period provided for in para. (b). For
this purpose, it shall require the C OMPANY to notify the SENIOR LENDERS in accordance with
para. (c).
(b) VORRANGIGER
KREDITGEBER
ist
jeder
Bankgläubiger des UNTERNEHMENS mit Darlehensforderungen gegen das UNTERNEHMEN in
Höhe von insgesamt mindestens 10% des
NENNBETRAGS. Hierbei sind lediglich Darlehensforderungen zu berücksichtigen, die gegenüber
dem GENUSSRECHT vorrangig sind. Als VORRANGIGE KREDITGEBER gelten nur die Bankgläubiger,
die entweder (aa) das UNTERNEHMEN auf Verlangen des GLÄUBIGERS binnen einer Woche
gemäß nachstehendem Absatz (c) offen gelegt
hat oder (bb) die dem GLÄUBIGER die Angaben
gemäß nachstehendem Absatz (c) bis zum Ablauf dieser Wochenfrist selbst mitgeteilt haben.
(b) SENIOR LENDER means each bank creditor of the
COMPANY with loan claims against the COMPANY
in the aggregate amount of at least 10% of the
NOMINAL AMOUNT. For this purpose, loan claims
shall only be taken into account if they are senior
to the PARTICIPATION RIGHT. Only bank creditors
(aa) which the COMPANY has disclosed within
one week upon demand of the CREDITOR in accordance with the following para. (c) or (bb)
which have given notice of the information set
out in the following para. (c) to the CREDITOR
until the expiration of this one week period, shall
be deemed to constitute SENIOR LENDERS.
(c)
(c)
Das UNTERNEHMEN hat dem GLÄUBIGER nach
Zugang einer Kündigungserklärung oder auf dessen Verlangen in der in Absatz (b) genannten
Wochenfrist die Namen und Adressen aller
VORRANGIGEN KREDITGEBER sowie die für die
Beurteilung der Anforderungen des Absatzes (b)
Sätze 1-2 relevanten Umstände schriftlich mitzuteilen.
Upon receipt of a termination notice or upon request of the CREDITOR, the COMPANY shall
within the one week period according to para. (b)
notify to the CREDITOR in writing the names and
addresses of all S ENIOR LENDERS as well as the
information relevant for the assessment of the requirements set out in para. (b) sentences 1-2.
(d) Die Kündigungserklärung des G LÄUBIGERS wird
in den Fällen der § 5.2(i) - (viii) wirksam, wenn
die WARTEFRIST verstrichen ist. Die WARTEFRIST
beginnt an dem Tag, an dem sämtliche
VORRANGIGEN KREDITGEBER von der AUßERORDENTLICHEN KÜNDIGUNG unterrichtet worden
sind. Der GLÄUBIGER hat dem UNTERNEHMEN
den Beginn und das Ende der WARTEFRIST unverzüglich mitzuteilen.
(d) Any termination notice by the CREDITOR pursuant to § 5.2(i) - (viii) shall take effect upon the
expiration of the WAITING PERIOD. The WAITING
PERIOD starts on the day on which all SENIOR
LENDERS have been informed of the
EXTRAORDINARY TERMINATION. The CREDITOR
shall give notice to the COMPANY of the beginning and of the end of the WAITING PERIOD without undue delay.
Die WARTEFRIST beträgt 90 Kalendertage. Im
Fall einer Kündigung gemäß § 5.2(i) oder (ii)
beträgt die WARTEFRIST 30 Kalendertage.
The WAITING PERIOD amounts to 90 calendar
days. In case of a termination pursuant to § 5.2(i)
or (ii), the WAITING PERIOD amounts to 30 calendar days.
In den Fällen des § 5.2 (ix) und (x) wird die
Kündigungserklärung
mit
Zugang
beim
UNTERNEHMEN wirksam.
In the cases of § 5.2 (ix) and (x), the termination
notice shall take effect upon receipt by the
COMPANY.
(e)
Der GLÄUBIGER darf nach Abgabe der Kündigungserklärung während
einer
etwaigen
WARTEFRIST Zahlungsansprüche gegen das
UNTERNEHMEN nicht durch Zwangsvollstreckungsmaßnahmen oder durch die Einleitung eines Insolvenzverfahrens durchsetzen.
(e)
After having given a termination notice, the
CREDITOR shall not enforce its payment claims
against the COMPANY during the WAITING
PERIOD (if any) by virtue of compulsory enforcement or the filing for insolvency proceedings.
5.6 Ein ordentliches Kündigungsrecht der Vertragsparteien ist ausgeschlossen.
5.6 The parties shall have no right to an ordinary termination of this agreement.
§6
Rückzahlung
§6
Repayment
6.1 Das GENUSSRECHT wird am VORGESEHENEN ENDFÄLLIGKEITSTERMIN , im Falle einer AUßERORDENTLICHEN
KÜNDIGUNG am Wirksamkeitstag der Kündigungserklärung zur Rückzahlung fällig (der RÜCKZAHLUNGSTERMIN). Eine vollständige oder teilweise Rückzahlung des GENUSSRECHTS vor dem RÜCKZAHLUNGSTERMIN ist ausgeschlossen.
on the SCHEDULED FINAL MATURITY DATE; in case of
an EXTRAORDINARY TERMINATION it shall be due for
repayment on the day on which the termination notice
takes effect (the REPAYMENT DATE). A complete or
partial repayment of the P ARTICIPATION RIGHT prior to
the REPAYMENT DATE shall be excluded.
- 81 -
6.2 (a)
Das GENUSSRECHT ist am RÜCKZAHLUNGSTERMIN in Höhe des RÜCKZAHLUNGSBETRAGS
zuzüglich entstandener Ansprüche auf VERGÜTUNG und sonstiger geschuldeter Beträge zu
tilgen. Darüber hinaus entstehen vorbehaltlich
§ 8 am RÜCKZAHLUNGSTERMIN Ansprüche auf
die bis zu diesem Termin aufgelaufene
VERGÜTUNG, bezüglich derer die Entstehensvoraussetzungen bislang noch nicht eingetreten waren.
(b) Tritt der RÜCKZAHLUNGSTERMIN vor dem
VORGESEHENEN ENDFÄLLIGKEITSTERMIN ein (mit
Ausnahme im Falle einer AUßERORDENTLICHEN
KÜNDIGUNG des UNTERNEHMENS aufgrund eines
Verschuldens des GLÄUBIGERS), hat das
UNTERNEHMEN zusätzlich den ZUSÄTZLICHEN
RÜCKZAHLUNGSBETRAG zu entrichten; dieser
berechnet sich auf der Grundlage der abgezinsten
Differenz zwischen der VERGÜTUNG bis zum
VORGESEHENEN ENDFÄLLIGKEITSTERMIN und den
Zinsen einer laufzeitkongruenten Wiederanlage
des RÜCKZAHLUNGSBETRAGS in Hypothekenpfandbriefen sowie in entsprechender Anwendung der höchstrichterlichen Grundsätze zur
Vorfälligkeitsentschädigung. Der Z USÄTZLICHE
RÜCKZAHLUNGSBETRAG wird vom GLÄUBIGER
berechnet und dem UNTERNEHMEN mitgeteilt. Ist
gemäß § 8 der RÜCKZAHLUNGSBETRAG nur teilweise zu zahlen, so ist der ZUSÄTZLICHE
RÜCKZAHLUNGSBETRAG nur bezogen auf diesen
Teilbetrag zu entrichten.
6.3 (a)
Wenn am RÜCKZAHLUNGSTERMIN Rückzahlungsansprüche gemäß § 6.2 aufgrund § 8 ganz
oder teilweise nicht entstanden sind oder falls ein
von Null verschiedener Differenzbetrag zwischen NENNBETRAG und RÜCKZAHLUNGSBETRAG
(der VERLUSTAUFHOLUNGSBETRAG) bestand, so
verlängert sich die Laufzeit des G ENUSSRECHTS.
Die Laufzeit endet mit vollständiger Bedienung
sämtlicher Zahlungsansprüche aus der Genussrechtsvereinbarung (einschließlich der vollständigen Zahlung des VERLUSTAUFHOLUNGSBETRAGS), jedoch spätestens zum Ablauf des
29. Jahres gerechnet ab dem ANFANGSTERMIN.
Während dieser verlängerten Laufzeit gelten
diese Genussrechtsbedingungen nach Maßgabe
der Regelungen dieses § 6.3 fort.
6.2 (a)
The PARTICIPATION RIGHT shall be redeemed on
the REPAYMENT DATE in the REPAYMENT
AMOUNT plus existing REMUNERATION claims
and other amounts due. In addition, claims to
REMUNERATION which has accrued up to the
REPAYMENT DATE and in respect of which the
conditions for a claim to come into existence
have not yet been met shall come into existence
on this date subject to § 8.
(b) If the REPAYMENT DATE occurs prior to the
SCHEDULED FINAL M ATURITY DATE (except for
the case of an EXTRAORDINARY TERMINATION by
the COMPANY due to fault of the CREDITOR), the
COMPANY shall, in addition, be obliged to pay
the ADDITIONAL REPAYMENT AMOUNT. This
amount shall be calculated based on the discounted difference between the REMUNERATION
accrued up to the SCHEDULED FINAL M ATURITY
DATE and the interest amount of a reinvestment
of the REPAYMENT AMOUNT in mortgage bonds
at matching maturities as well as in analogous
application of the principles of prepayment penalties as established by the German Federal Supreme Court. The ADDITIONAL REPAYMENT
AMOUNT shall be calculated by the CREDITOR
and notified to the COMPANY. If the REPAYMENT
AMOUNT has to be paid only partially according
to § 8, the ADDITIONAL REPAYMENT AMOUNT
shall only be due with respect to this partial
amount.
6.3 (a)
If repayment claims pursuant to § 6.2 have not
partially or fully come into existence on the REPAYMENT DATE due to the provisions of § 8, or in
case of a difference amount between the
NOMINAL AMOUNT and the REPAYMENT AMOUNT
other than zero on this day (the LOSS RECOVERY
AMOUNT), the term of the P ARTICIPATION RIGHT
shall be extended. The term shall expire with the
complete settlement of all payment claims under
the participation right agreement (including the
complete payment of the LOSS RECOVERY
AMOUNT), however by the end of the 29 th year
calculated from the START DATE at the latest.
During this extended term, the provisions of the
PARTICIPATION RIGHT shall remain in force subject to the provisions of this § 6.3.
(b) Auf die VORAUSZAHLUNG, die für den VORAUSZAHLUNGSTERMIN
nach
dem
RÜCKZAHLUNGSTERMIN ermittelt wird, ist die nach § 6.2(a)
ermittelte zeitanteilige VERGÜTUNG anzurechnen,
soweit diese an den GLÄUBIGER gezahlt wurde.
(b) To the extent it has been paid to the CREDITOR,
the REMUNERATION pro rata temporis as determined in accordance with § 6.2(a) shall be netted
with the ADVANCE PAYMENT determined for the
ADVANCE PAYMENT DATE following the
REPAYMENT DATE.
(c)
(c)
Der RÜCKZAHLUNGSBETRAG ist jeweils an den
ABRECHNUNGSTERMINEN ganz oder teilweise zu
zahlen, an denen die Voraussetzungen des § 2.3
(nach Berücksichtigung sämtlicher aufgelaufener
VERGÜTUNGEN) vorliegen. Der jeweils maßgebliche RÜCKZAHLUNGSBETRAG vermindert sich um
Zahlungen auf diesen gemäß § 6.2(a) und spätere
Kapitalrückzahlungen und erhöht sich um Ver-
- 82 -
The REPAYMENT AMOUNT shall be fully or partially payable on each SETTLEMENT DATE on
which the requirements of § 2.3 (taking into consideration all accrued R EMUNERATIONS) are met.
The respectively relevant R EPAYMENT AMOUNT
shall be decreased by any payments made on it in
accordance with § 6.2(a) and by subsequent
capital repayments and shall be increased by any
lustaufholung gemäß § 3.2. Die maximale gesamte Verlustaufholung des RÜCKZAHLUNGSBETRAGS nach dem RÜCKZAHLUNGSTERMIN ist
auf den VERLUSTAUFHOLUNGSBETRAG begrenzt.
Eine Herabsetzung des RÜCKZAHLUNGSBETRAGS
nach dem RÜCKZAHLUNGSTERMIN im Wege der
Verlustteilnahme findet nicht mehr statt; § 3.1
findet keine Anwendung.
loss recovery pursuant to § 3.2. After the
REPAYMENT DATE, the maximum aggregate loss
recovery of the REPAYMENT AMOUNT shall be
limited to the LOSS RECOVERY AMOUNT. A reduction of the REPAYMENT AMOUNT by way of
loss participation shall be excluded after the
REPAYMENT DATE; § 3.1 shall not apply.
(d) Zahlungen auf den RÜCKZAHLUNGSBETRAG vermindern den für die Ermittlung der
VERGÜTUNGEN und der VORAUSZAHLUNGEN
zugrunde zu legenden NENNBETRAG des
GENUSSRECHTS. Stichtag für die Ermittlung des
jeweils für eine bestimmte BERECHNUNGSPERIODE maßgeblichen NENNBETRAGS ist der
erste Tag der betreffenden B ERECHNUNGSPERIODE.
(d) Payments made on the REPAYMENT AMOUNT
shall reduce the NOMINAL AMOUNT of the
PARTICIPATION RIGHT which is taken as a basis
for determination of REMUNERATIONS and
ADVANCE PAYMENTS. The record date for the determination of the respective N OMINAL AMOUNT
relevant for a given CALCULATION PERIOD shall
be the first day of such CALCULATION PERIOD.
6.4 Mit Ablauf der verlängerten Laufzeit des GENUSSRECHTS gemäß § 6.3(a) erlöschen bis dahin nicht entstandene Zahlungsansprüche.
6.4 Upon expiration of the extended term of the P ARTICIPATION RIGHT according to § 6.3(a), all payment
claims which have not previously come into existence
shall be extinguished.
§7
Rechtsnatur des Genussrechts; aufschiebend bedingter
Rangrücktritt
§7
Legal Nature of the Participation Right; Subordination
Subject to a Condition Precedent
7.1 Das GENUSSRECHT gewährt ausschließlich schuldrechtliche Ansprüche gegenüber dem U NTERNEHMEN .
Es begründet kein Gesellschaftsverhältnis zwischen
dem UNTERNEHMEN und dem GLÄUBIGER welcher Art
auch immer und keine Gesellschafterrechte an dem
UNTERNEHMEN , insbesondere keine Teilnahme-, Mitwirkungs- und Stimmrechte in den Gesellschafterversammlungen oder Bezugsrechte auf neue Anteile.
Dem GLÄUBIGER steht kein Weisungsrecht gegenüber
der Geschäftsleitung zu.
7.1 The PARTICIPATION RIGHT shall only grant obligatory
claims (schuldrechtliche Ansprüche) against the COMPANY. It shall neither establish a company relationship
(Gesellschaftsverhältnis) of any kind whatsoever between the COMPANY and the CREDITOR nor shareholders' rights in the COMPANY, in particular no rights to
attend, to participate or to vote in the shareholders'
meetings and subscription rights to new shares. The
CREDITOR shall have no right to instruct the management of the company.
7.2 (a)
7.2 (a)
Der GLÄUBIGER und das UNTERNEHMEN vereinbaren unter der aufschiebenden Bedingung,
dass das Insolvenzverfahren über das Vermögen
des UNTERNEHMENS, die Liquidation des
UNTERNEHMENS bzw. die UNTERNEHMENSKRISE
tatsächlich eingetreten ist, dass der G LÄUBIGER
in der Weise im Rang zurücktritt, dass im Falle
eines Insolvenzverfahrens über das Vermögen
oder der Liquidation des UNTERNEHMENS sowie
für die Dauer einer UNTERNEHMENSKRISE die
Forderungen aus dem GENUSSRECHT nur nach
Befriedigung aller Gesellschaftsgläubiger und
zugleich mit den Einlagenrückgewähransprüchen
der Gesellschafter des UNTERNEHMENS (§ 199
InsO) oder Ansprüchen der Gesellschafter auf
Auskehrung des Liquidationsüberschusses befriedigt werden.
(b) Eine UNTERNEHMENSKRISE liegt dann vor, wenn
(i) bei Ansatz der Forderungen aus dem
GENUSSRECHT eine Zahlungsunfähigkeit oder
Überschuldung (§§ 17, 19 InsO) des UNTERNEHMENS bestünde und (ii) das UNTERNEHMEN
dies durch die Vorlage einer Bescheinigung
seines
Abschlussprüfers
nachweist.
Die
UNTERNEHMENSKRISE endet, wenn die in (i)
- 83 -
Subject to the condition precedent that insolvency proceedings with respect to the assets of
the COMPANY, the liquidation of the COMPANY or
a COMPANY CRISIS shall have actually commenced, the CREDITOR and the COMPANY hereby
agree that the CREDITOR 'S rights shall be subordinated in such a way that, in case of insolvency
proceedings with respect to the assets of the
COMPANY or its liquidation as well as during a
COMPANY CRISIS, the claims under the
PARTICIPATION RIGHT shall be satisfied only after
the discharge of all claims of the C OMPANY 'S
creditors and pari passu with the claims of the
shareholders of the C OMPANY to restitution of
contributions (§ 199 of the German Insolvency
Act, Insolvenzordnung) or to distribution of the
liquidation proceedings.
(b) A COMPANY CRISIS shall occur if, (i) when accounting for the claims under the P ARTICIPATION
RIGHT, an illiquidity or over-indebtedness (§§
17, 19 of the German Insolvency Act) of the
COMPANY were to occur and (ii) the C OMPANY
provides proof thereof by furnishing a certificate
of its auditor. The COMPANY CRISIS shall terminate if the requirements provided for in (i) do no
genannten Voraussetzungen nicht mehr vorliegen. Das UNTERNEHMEN hat nach dem Beginn
einer UNTERNEHMENSKRISE deren Fortbestehen
jeweils gemäß Satz 1(ii) dieses Absatzes (b) zum
ersten GESCHÄFTSTAG eines Kalenderquartals
nachzuweisen.
(c)
Dem UNTERNEHMEN wird die Option eingeräumt, durch einseitige schriftliche Erklärung
gegenüber dem GLÄUBIGER auf die Wirkungen
des in Absatz (a) vereinbarten qualifizierten
Rangrücktritts zu verzichten. Mit Ausübung dieser Option tritt der GLÄUBIGER in der Weise im
Rang zurück, dass im Falle eines Insolvenzverfahrens über das Vermögen oder der Liquidation
des UNTERNEHMENS sowie für die Dauer einer
UNTERNEHMENSKRISE die Forderungen aus dem
GENUSSRECHT nur nach Befriedigung aller Gesellschaftsgläubiger aber vorrangig vor den Einlagenrückgewähransprüchen der Gesellschafter
des UNTERNEHMENS (§ 199 InsO) oder Ansprüchen der Gesellschafter auf Auskehrung des Liquidationsüberschusses befriedigt werden.
longer exist. Following the commencement of a
COMPANY CRISIS, the COMPANY shall prove its
continuation in accordance with sentence 1(ii) of
this para. (b) on the first BUSINESS DAY of each
calendar quarter.
(c)
The COMPANY shall have the option to waive the
effects of the qualified subordination agreed
upon in para. (a) by means of an unilateral written declaration towards the C REDITOR. Upon exercising this option, the CREDITOR shall be subordinated in such a way that, in case of insolvency proceedings relating to the assets of the
COMPANY or its liquidation as well as during a
COMPANY CRISIS, the claims under the
PARTICIPATION RIGHT shall be satisfied only after
the discharge of all claims of the C OMPANY 'S
creditors but prior to the discharge of the claims
of the shareholders of the C OMPANY to restitution
of contributions (§ 199 of the German Insolvency Act) or to distribution of the liquidation
proceedings.
7.3 Das GENUSSRECHT gewährt keinen Anteil an einem
nach Begleichung der Ansprüche aus dem G ENUSSRECHT verbleibenden Liquidationsüberschuss.
7.3 The PARTICIPATION RIGHT shall not grant a claim to
any liquidation surplus which may remain after settlement of the claims under the P ARTICIPATION RIGHT.
§8
Geschütztes Eigenkapital
§8
Protected Equity Capital
8.1 Zahlungsansprüche gemäß dieser Genussrechtsvereinbarung entstehen nicht, wenn und soweit diese am
BERECHNUNGSSTICHTAG nur aus GESCHÜTZTEM EIGENKAPITAL bedient werden könnten und das UNTERNEHMEN dies durch Vorlage einer schriftlichen Bestätigung seines Abschlussprüfers nachweist. BERECHNUNGSSTICHTAG für die Feststellung des GESCHÜTZTEN EIGENKAPITALS ist jeweils der betreffende Zahlungstermin oder nach Wahl des UNTERNEHMENS ein
anderer, maximal 15 Tage vor diesem Termin liegender Tag.
8.1 Payment claims under this participation right agreement shall not come into existence if and to the extent,
on the CALCULATION DATE, such claims could only be
paid out of PROTECTED EQUITY CAPITAL and the
COMPANY provides proof thereof by presenting a
written confirmation of its auditor. The CALCULATION
DATE for the determination of the P ROTECTED EQUITY
CAPITAL shall be the relevant payment date or, at the
COMPANY 'S option, any other day preceding this date
by a maximum of 15 days.
GESCHÜTZTES EIGENKAPITAL sind Eigenkapitalbestandteile des UNTERNEHMENS, die gesetzlich (nicht
jedoch lediglich satzungsmäßig) besonders gegen
Ausschüttungen an die Gesellschafter geschützt sind,
insbesondere das gezeichnete Kapital (Grund- bzw.
Stammkapital), gesetzlich zu bildende Rücklagen und
Ausschüttungssperrbeträge, nicht jedoch Kommanditeinlagen.
PROTECTED EQUITY CAPITAL means such equity
components of the COMPANY specially protected
against distributions to the shareholders by law (however not merely by the articles of association), in particular the subscribed capital (Grund- or Stammkapital),
statutory reserves and amounts blocked against distribution by law, however excluding the equity contributions of the limited partners.
8.2 An dem betreffenden Zahlungstermin sind die F REIEN
MITTEL zur Bedienung von Ansprüchen des GLÄUBIGERS wie folgt zu verwenden: (aa) zunächst für
sonstige Ansprüche aus der Genussrechtsvereinbarung, (bb) dann für Ansprüche auf V ORAUSZAHLUNG
und VERGÜTUNG sowie (cc) schließlich für Ansprüche
auf Zahlung des RÜCKZAHLUNGSBETRAGS. Mehrere
Zahlungsansprüche nach (aa) oder (bb) sind in der
zeitlichen Reihenfolge der Termine zu bedienen, an
denen sie ungeachtet der Regelung des § 8.1 ursprünglich entstanden wären. Soweit hiernach eine
Zahlung erfolgt, entstehen die betreffenden Ansprüche
ganz oder teilweise. FREIE MITTEL bezeichnet den
8.2 On the respective payment date, FREE FUNDS shall be
applied towards the discharge of the claims of the
CREDITOR as follows: (aa) first, for other claims under
the participation right agreement, (bb) then, for claims
to ADVANCE PAYMENT and REMUNERATION and (cc)
finally, for claims to payment of the REPAYMENT
AMOUNT. Multiple payment claims pursuant to (aa) or
(bb) shall be paid in the chronological order of the
dates on which they originally would have come into
existence disregarding the provision of § 8.1. To the
extent a payment is made pursuant hereto, the respective claims shall come into existence fully or partially.
FREE FUNDS means the amount by which the balance
- 84 -
Betrag, um den das bilanzielle Eigenkapital des
UNTERNEHMENS das GESCHÜTZTE EIGENKAPITAL übersteigt.
sheet equity capital of the COMPANY exceeds the
PROTECTED EQUITY CAPITAL.
8.3 Soweit
ein
Zahlungsanspruch
(einschließlich
Ansprüche auf VORAUSZAHLUNG, jedoch mit
Ausnahme
eines
Anspruchs
auf
den
RÜCKZAHLUNGSBETRAG) aufgrund der Regelung der
§§ 8.1-8.2 ganz oder teilweise nicht entsteht, entsteht
dieser
an
dem
jeweils
nächstfolgenden
VORAUSZAHLUNGSTERMIN , wenn und soweit an
diesem Termin nicht wiederum die Voraussetzung für
die Nichtentstehung des Anspruchs gemäß diesen Regelungen vorliegen.
8.3 To the extend a payment claim (including claims to
ADVANCE PAYMENTS, but excluding a claim to the
REPAYMENT AMOUNT) does not come into existence
fully or partially by virtue of the provisions stipulated
in §§ 8.1-8.2, it shall come into existence on the respective next following ADVANCE PAYMENT DATE,
unless and to the extent the requirements for such
claim not to come into existence are again met on this
date.
8.4 Das UNTERNEHMEN ist jederzeit berechtigt, freiwillig
auf VORAUSZAHLUNGEN, VERGÜTUNGEN oder andere
Beträge zu leisten, bezüglich derer nach diesem § 8
keine Zahlungsansprüche entstanden sind. In diesem
Fall entstehen die betreffenden Zahlungsansprüche im
Umfang und am Tag der Zahlung. Freiwillig geleistete
Zahlungen werden nicht an das UNTERNEHMEN zurückerstattet.
8.4 The COMPANY shall have the right at any time to
voluntarily make ADVANCE PAYMENTS, or pay REMUNERATIONS or other amounts in respect of which no
payment claims have come into existence pursuant to
this § 8. In this case, the respective payment claims
shall come into existence to the extent and on the day
of payment. Voluntary payments shall not be refunded
to the COMPANY.
§9
Zusicherungen des Unternehmens
§9
Representations of the Company
Das UNTERNEHMEN gibt hiermit dem GLÄUBIGER per
ANFANGSTERMIN die in Anlage 2 aufgeführten Zusicherungen in Form eines selbstständigen Garantieversprechens gemäß § 311 BGB ab.
The COMPANY hereby makes the representations and
warranties to the CREDITOR set out in Annex 2 as at
the START DATE in the form of an independent guarantee (selbstständiges Garantieversprechen) pursuant
to § 311 of the German Civil Code (Bürgerliches Gesetzbuch).
§ 10
Informationsrechte; Vertraulichkeit
§ 10
Information Rights; Confidentiality
10.1 Das UNTERNEHMEN hat dem GLÄUBIGER bis zur Beendigung dieser Vereinbarung die testierten Jahres- und
Konzernabschlüsse des UNTERNEHMENS nebst Lageund Konzernlagebericht sowie den Berichten des Abschlussprüfers unverzüglich nach der Feststellung der
Abschlüsse, spätestens jedoch sechs Monate nach
Ablauf des betreffenden Geschäftsjahres jeweils in
Kopie auf seine Kosten zu übersenden.
10.1 The COMPANY shall, until the expiration of this agreement and at its own expense, deliver to the C REDITOR
a copy of the certified unconsolidated and consolidated financial statements of the C OMPANY together
with management reports and group management reports and the auditor's reports immediately upon approval of the financial statements, but in no event later
than six months after the end of the respective financial year.
10.2 Falls der Bestätigungsvermerk des Abschlussprüfers
zum Jahres- oder Konzernabschluss lediglich eingeschränkt erteilt oder versagt wird oder aus anderen
Gründen Zweifel an der Ordnungsmäßigkeit des Jahres- oder Konzernabschlusses bestehen, so ist der
GLÄUBIGER berechtigt, den betreffenden Abschluss auf
Kosten des UNTERNEHMENS von einem unabhängigen
Wirtschaftsprüfer prüfen zu lassen. Das U NTERNEHMEN ist in diesem Fall verpflichtet, sämtliche hierfür erforderlichen Informationen und Unterlagen zur
Verfügung zu stellen. Ergibt sich als Ergebnis der Prüfung ein höherer Bilanzgewinn, so schuldet das
UNTERNEHMEN die unverzügliche Zahlung einer entsprechend erhöhten VERGÜTUNG.
10.2 If the auditor's certificate for the unconsolidated or
consolidated financial statements is issued with restrictions only or if it is denied or if there are doubts in
respect of the accuracy of the unconsolidated or consolidated financial statements for other reasons, the
CREDITOR shall be entitled to arrange for an examination of the relevant financial statements by an independent auditor at the expense of the COMPANY. In this
case, the COMPANY shall make available all information and documents necessary for this purpose. If a
higher balance sheet profit is determined as a result of
the examination, the COMPANY shall owe the payment
of an accordingly increased R EMUNERATION without
undue delay.
10.3 Das UNTERNEHMEN hat nach Kenntniserlangung den
GLÄUBIGER unverzüglich (aa) über einen bevorstehenden oder eingetretenen KONTROLLWECHSEL sowie (bb)
10.3 The COMPANY shall inform the CREDITOR promptly
upon becoming aware thereof (aa) of a forthcoming or
implemented CHANGE OF CONTROL and (bb) of all
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über alle Vorfälle zu informieren, die eine schwächere
BONITÄTSBEURTEILUNG des UNTERNEHMENS durch die
BONITÄTSBEURTEILUNGSAGENTUR bewirken oder von
wesentlicher Bedeutung für die Rechtsstellung oder
das wirtschaftliche Interesse des G LÄUBIGERS sein
könnten.
events which may lead to a lower CREDIT APPRAISAL
of the COMPANY by the CREDIT APPRAISAL AGENCY or
could be of material importance for the legal position
or the economic interest of the CREDITOR.
10.4 Der GLÄUBIGER ist hinsichtlich sämtlicher ihm vom
UNTERNEHMEN oder auf dessen Veranlassung im Zusammenhang mit dem GENUSSRECHT überlassener Informationen zur Verschwiegenheit verpflichtet, mit
Ausnahme von Informationen, die öffentlich bekannt
sind, über die er bereits vor dem Beginn der Gespräche über den Abschluss dieser Genussrechtsvereinbarung verfügte, die ihm von Dritten ohne Verletzung
von Vertraulichkeitspflichten zugänglich gemacht
werden, die er zur Verfolgung seiner Ansprüche aus
der Genussrechtsvereinbarung offenlegt oder die aufgrund gesetzlicher, behördlicher oder gerichtlicher
Anforderungen offenzulegen oder mitzuteilen sind.
Der GLÄUBIGER ist berechtigt, vertraulich zu behandelnde Informationen an seine Vertragspartner (einschließlich BONITÄTSBEURTEILUNGSAGENTUREN ) im
Zusammenhang mit der Verwaltung der Genussrechtsvereinbarung oder einer zur Refinanzierung des
GENUSSRECHTS begebenen Anleihe bzw. einer sonstigen Refinanzierung der Genussrechtsvereinbarung
weiterzugeben, sofern er die Vertraulichkeit in
angemessener Weise sicherstellt. Der G LÄUBIGER ist
berechtigt, anonymisierte Informationen über die
Erfüllung der Zahlungs- und sonstigen Vertragspflichten durch das UNTERNEHMEN und die sich aus
der Genussrechtsvereinbarung ergebenden Folgen zur
Erstellung von Investoreninformationen für die
Anleihegläubiger zu verwenden und zu veröffentlichen. Das UNTERNEHMEN wird dem
GLÄUBIGER folgende Informationen zur Veröffentlichung in dem Emissionsprospekt der Anleihe
bereitstellen: (i) eine Selbstdarstellung des U NTERNEHMENS und (ii) das Logo des UNTERNEHMENS . Ferner
stimmt das UNTERNEHMEN einer Veröffentlichung der
Kennzahlen, die auf Anlage 3 basieren, nach Moody's
KMV Risc Calc in anonymisierter Form zu. Die
Veröffentlichung in dem Emissionsprospekt wird
voraussichtlich die Kennzahlen in Relation zu
Vergleichsziffern darstellen.
10.4 The CREDITOR shall maintain confidential all information provided or caused to be provided to him by the
COMPANY in connection with the PARTICIPATION
RIGHT, unless the information is publicly known, has
already been known to the CREDITOR before the commencement of negotiations in respect of the conclusion of this participation right agreement, is disclosed
to him by third parties without breach of any confidentiality obligations, is disclosed by the CREDITOR in
pursuance of its claims under the participation right
agreement or is to be disclosed or communicated due
to statutory, public authorities' or judicial requirements. The CREDITOR shall be entitled to furnish information which is to be maintained confidential to its
contract counterparties (including CREDIT APPRAISAL
AGENCIES) in connection with the administration of
the participation right agreement or notes issued for
the purpose of refinancing the P ARTICIPATION RIGHT
or, as the case may be, another refinancing of the
participation right agreement, provided that it ensures
confidentiality in an adequate manner. The CREDITOR
shall be entitled to use anonymised information
relating to the performance of payment obligations and
other contractual obligations by the COMPANY and the
consequences arising therefrom under the participation
right agreement for the preparation and publication of
investor reports to the noteholders. The C OMPANY
shall make available to the CREDITOR the following
information to be published in the issue prospectus of
the notes: (i) a profile of the C OMPANY and (ii) the
logo of the COMPANY. Furthermore, the COMPANY
agrees to the publication of the key ratios based on
Annex 3 according to Moody's KMV Risc Calc in an
anonymous form. The publication in the issue
prospectus is expected to display the key ratios in
relation to comparison numbers.
§ 11
Zusätzliche Informationsrechte
§ 11
Additional Information Rights
Bonitätsver-
11.1 Additional Information Rights in Case of Deterioration of Creditworthiness
Wenn und solange das UNTERNEHMEN von Moody's
KMV eine BONITÄTSBEURTEILUNG in oder unterhalb
der Kategorie "Ba2.edf" oder eine entsprechende
BONITÄTSBEURTEILUNG einer anderen BONITÄTSBEURTEILUNGSAGENTUR erhält, kann der GLÄUBIGER
die nachfolgenden zusätzlichen Informationsrechte
ausüben:
If and as long as the COMPANY receives a CREDIT
APPRAISAL of the category of "Ba2.edf" or below from
Moody's KMV or an equivalent C REDIT APPRAISAL
from another CREDIT APPRAISAL AGENCY, the
CREDITOR shall have the following additional
information rights:
(i)
(i)
11.1 Zusätzliche Informationsrechte
schlechterung
bei
Einsichtnahme (sowie auf Wunsch des
GLÄUBIGERS die kostenfreie Übermittlung von
Kopien) in:
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Inspection (as well as the delivery of copies free
of charge upon the request of the C REDITOR) of:
(aa) interne Finanzberichte (einschließlich der
Liquiditätsplanung) des UNTERNEHMENS
jeweils unverzüglich nach Aufforderung;
(aa) internal financial reports (including liquidity planning) of the C OMPANY immediately
upon demand;
(bb) Protokolle und Beschlüsse der Geschäftsführung der letzten zwölf Monate
sowie sämtliche Protokolle und Beschlüsse
des Aufsichtsrats, des Beirats sowie der
Gesellschafter- bzw. Hauptversammlung
(jeweils soweit einschlägig und rechtlich
zulässig), jeweils binnen zwei Wochen
nach Aufforderung.
(bb) minutes and resolutions of the management
board of the last twelve months and all
minutes and resolutions of the supervisory
board, the advisory council and the shareholders' meeting (in each case to the extent
applicable and permissible by law), in each
case within two weeks upon demand.
(ii) Auf Verlangen des GLÄUBIGERS wird das
UNTERNEHMEN binnen zwei Wochen Gespräche
ermöglichen mit:
(ii) Within two weeks upon demand by the
CREDITOR, the Company shall provide the opportunity for discussions with:
(aa) der Geschäftsführung des U NTERNEHMENS
in bis zu sechs Fällen pro Kalenderjahr;
(aa) the management board of the C OMPANY up
to six times per calendar year;
(bb) den
Beratern
des
UNTERNEHMENS
(insbesondere Rechts-, Unternehmens- und
Steuerberater). Das UNTERNEHMEN wird die
betreffenden Berater hierzu soweit erforderlich von ihrer Schweigepflicht entbinden.
(bb) the advisors of the C OMPANY (in particular
legal advisors, management consultants and
tax advisors). To the extent necessary, the
COMPANY shall release the respective advisors from their confidentiality obligations.
(iii) Beauftragung eines sog. Recovery Advisor
(voraussichtlich
Ernst
&
Young
AG
Wirtschaftsprüfungsgesellschaft),
um
die
Interessen des GLÄUBIGERS wahrzunehmen,
insbesondere um Empfehlungen bezüglich der
weiteren Vorgehensweise im Hinblick auf die
Genussrechtsvereinbarung zu erstellen.
(iii) Engagement of a so-called Recovery Advisor
(expected to be Ernst & Young AG
Wirtschaftsprüfungsgesellschaft) in order to
protect the interests of the CREDITOR, in
particular to prepare recommendations regarding
the course of action in respect of the participation
right agreement.
11.2 Erweiterte zusätzliche Informationsrechte
(a)
11.2
Unter den Voraussetzungen des nachstehenden
Absatzes (b) kann der GLÄUBIGER die
Informationsrechte gemäß § 11.1 sowie die
nachfolgenden zusätzlichen Informationsrechte
ausüben:
(i)
Einsichtnahme in alle wesentlichen Verträge und Unterlagen sowie Zugang zu Informationen über alle wesentlichen Geschäfte des UNTERNEHMENS unverzüglich
auf Verlangen des GLÄUBIGERS.
Extended Additional Information Rights
(a)
Subject to the requirements specified in para. (b)
below, the CREDITOR may exercise the
information rights pursuant to § 11.1 as well as
the following additional information rights:
(i)
Inspection of all material contracts and
documents, as well as access to information
on all material transactions of the
COMPANY without undue delay upon demand by the CREDITOR.
(ii) Monatliche Berichte der Geschäftsführung
des UNTERNEHMENS , die alle wesentlichen
Entwicklungen des Geschäftsbetriebs darstellen, sowie Zugang zu den Unterlagen
des UNTERNEHMENS für die Zwecke der
Prüfung der monatlichen Berichte.
(ii) Monthly reports by the management board
of the COMPANY describing all material developments of the business operations, as
well as access to the files of the C OMPANY
for the purpose of verifying the monthly
reports.
(iii) Sanierungsgespräche mit der Geschäftsführung des UNTERNEHMENS. Das UNTERNEHMEN wird dem GLÄUBIGER hierzu
Gelegenheit geben, bevor es derartige
Gespräche mit Dritten führt, die zu diesem
Zeitpunkt keine Eigen- oder Fremdkapitalgeber des UNTERNEHMENS sind.
(iii) Restructuring discussions with the management board of the COMPANY. The COMPANY shall give the CREDITOR the opportunity to have such discussions prior to
conducting such discussions with third parties which are not equity or debt capital investors of the COMPANY at that time.
(b) Dem GLÄUBIGER stehen die in vorstehendem Ab-
(b) The C REDITOR shall have the additional informa-
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satz (a) genannten zusätzlichen Informationsrechte zu, wenn:
tion rights stated in the preceding para. (a), if:
(i)
(i)
das UNTERNEHMEN seinen Zahlungsverpflichtungen aus dieser Genussrechtsvereinbarung an zwei aufeinander folgenden
Zahlungsterminen nicht vollständig nachgekommen ist oder diese Zahlungsverpflichtungen ganz oder teilweise nicht entstanden sind, da sie nur aus GESCHÜTZTEM
EIGENKAPITAL hätten bedient werden können (§ 8);
the COMPANY does not fully discharge its
payment obligations under this participation right agreement on two consecutive
payment dates or such payment obligations
did not come into existence in full or in
parts because they could have been paid
only out of PROTECTED EQUITY CAPITAL
(§ 8);
(ii) der
Gesamtbetrag
der
Zahlungsverpflichtungen aus dieser Genussrechtsvereinbarung, mit der sich das UNTERNEHMEN in Verzug befindet, den Betrag
der halben jährlichen VERGÜTUNG (ohne
Erhöhung nach § 2.5) erreicht oder übersteigt. Zu diesem Gesamtbetrag sind die
Zahlungsverpflichtungen hinzuzurechnen,
die ganz oder teilweise deshalb nicht entstanden sind, weil sie nur aus GESCHÜTZTEM EIGENKAPITAL hätten bedient
werden können (§ 8);
(ii) the aggregate amount of the payment
obligations under this participation right
agreement on which the COMPANY defaulted equals or exceeds the amount of
half of the annual REMUNERATION (excluding an increase pursuant to § 2.5). This
aggregate amount shall be increased by the
payment obligations which did not come
into existence in full or in parts because
they could have been paid only out of
PROTECTED EQUITY CAPITAL (§ 8);
(iii) das UNTERNEHMEN von Moody's KMV eine
BONITÄTSBEURTEILUNG in oder unterhalb
der Kategorie "B2.edf" oder eine entsprechende BONITÄTSBEURTEILUNG einer
anderen BONITÄTSBEURTEILUNGSAGENTUR
erhält; oder
(iii) the COMPANY receives a CREDIT APPRAISAL
of the category of "B2.edf" or below from
Moody's KMV or an equivalent C REDIT
APPRAISAL
from
another
CREDIT
APPRAISAL AGENCY; or
(iv) der RÜCKZAHLUNGSBETRAG wegen Verlustteilnahme herabgesetzt wurde.
(iv) the REPAYMENT AMOUNT has been reduced
due to loss participation.
Dem GLÄUBIGER stehen diese zusätzlichen
Informationsrechte zu, solange in den Fällen von (i) und (ii) der Zahlungsverzug
nicht vollständig beendet ist bzw. die
betreffenden Zahlungsverpflichtungen nicht
entstanden oder nicht vollständig bedient
worden sind, oder im Falle von (iii) eine
BONITÄTSBEURTEILUNG
des
UNTERNEHMENS in den genannten Kategorien
fortbesteht, oder im Falle von (iv) der
RÜCKZAHLUNGSBETRAG nicht durch Verlustaufholung den NENNBETRAG des
GENUSSRECHTS wieder erreicht hat.
The CREDITOR shall have these additional
information rights in the cases of (i) or (ii),
for as long as the default in payment is not
completely remedied or, as the case may
be, the respective payment obligations have
not come into existence or been fully paid
or, in the case of (iii), for as long as the
CREDIT APPRAISAL of the COMPANY
continues to remain in the aforementioned
categories or, in case of (iv), for as long as
the REPAYMENT AMOUNT has not been
increased up to the NOMINAL AMOUNT of
the PARTICIPATION RIGHT by virtue of loss
recovery.
11.3 Das UNTERNEHMEN hat die angemessenen Kosten des
GLÄUBIGERS und von ihm eingesetzter Dritter (einschließlich des Recovery Advisor) im Zusammenhang
mit der Ausübung seiner Informationsrechte gemäß
diesem § 11 zu erstatten. Der maximale Erstattungsbetrag für die Ausübung der Informationsrechte gemäß § 11.1(iii) beträgt EUR 30.000 pro Kalenderjahr
zuzüglich MWSt und üblicher Auslagen. Ist ein Recovery Advisor beauftragt und wird in einem Kalenderjahr der maximale Erstattungsbetrag nicht ausgeschöpft, erhöht der verbleibende Betrag den in den
Folgejahren zur Verfügung stehenden Maximalbetrag.
11.3 The COMPANY shall reimburse the reasonable expenses of the CREDITOR and of third parties appointed by
it (including the Recovery Advisor) in connection with
the exercise of its information rights according to this
§ 11. The maximum reimbursement amount for the
exercise of information rights pursuant to § 11.1(iii)
shall be EUR 30,000 per calendar year plus valueadded tax and customary expenses. If a Recovery Advisor is engaged and the maximum reimbursement
amount is not exhausted in a certain calendar year, the
remaining amount shall be added to the maximum
amount available in the following years.
11.4 Die Informationsrechte nach Maßgabe des § 11.1 und
§ 11.2 bestehen im Rahmen ihrer jeweiligen Voraus-
11.4 The information rights pursuant to § 11.1 and § 11.2
shall be available, subject to their respective require-
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setzungen kumulativ und zusätzlich zu den Informationsrechten aus § 10.
ments, cumulatively and in addition to the information
rights provided for in § 10.
§ 12
Sonstige Verpflichtungen des Unternehmens
§ 12
Other Covenants of the Company
12.1 Das UNTERNEHMEN hat im gesetzlich zulässigen Umfang Ausschüttungen oder Entnahmen von seinen
Tochterunternehmen und deren nachgelagerten verbundenen Gesellschaften zu veranlassen, wenn und
soweit dies erforderlich ist, um über hinreichende
FREIE MITTEL zur vollständigen und pünktlichen Bedienung seiner Zahlungsverbindlichkeiten nach diesen
Genussrechtsbedingungen zu verfügen. Soweit erforderlich, hat es hierzu im gesetzlich zulässigen Umfang
Rücklagen aufzulösen und die Herstellung der satzungs- oder gesellschaftsvertraglichen Voraussetzungen für die Ausschüttungen oder Entnahmen zu veranlassen.
12.1 The COMPANY shall to the extent legally permissible
procure distributions by or withdrawals from its subsidiaries and their downstream affiliated companies, if
and to the extent necessary to dispose of sufficient
FREE FUNDS to fully and timely discharge of its payment obligations under this participation right agreement. To the extent necessary for this purpose, it shall
to the extent legally permissible dissolve reserves and
procure the implementation of the prerequisites necessary for distributions or withdrawals as stipulated by
the respective articles of association or partnership
agreements.
12.2 Das UNTERNEHMEN wird zukünftige Jahres- und Konzernabschlüsse sowie Lageberichte und Konzernlageberichte in Übereinstimmung mit den anwendbaren
gesetzlichen Bestimmungen und den allgemein anerkannten Buchführungs- und Bilanzierungsgrundsätzen
unter Wahrung der formellen und materiellen Bilanzkontinuität (einschließlich in Bezug auf Bilanzierungsund Bewertungswahlrechte) aufstellen, so dass diese
unter Beachtung der Grundsätze ordnungsgemäßer
Buchführung ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens-, Finanz- und Ertragslage zu dem jeweiligen Bilanzstichtag vermitteln.
12.2 The COMPANY shall prepare future unconsolidated and
consolidated annual financial statements as well as
management reports and group management reports in
accordance with the applicable legal provisions and
the generally accepted bookkeeping and accounting
principles observing formal and material continuity of
accounting treatment (formelle und materielle Bilanzkontinuität) (also with regard to discretionary accounting and valuation) in order for these financial
statements to reflect the accurate assets, financial and
earnings situation on the respective date of the financial statements in compliance with sound accounting
principles.
12.3 Das UNTERNEHMEN wird Vereinbarungen und Geschäfte mit Unternehmen, die nicht in Mehrheitsbesitz
(§ 16 AktienG) stehen, den Mitgliedern der Geschäftsführung oder Gesellschaftern sowie diesen nahestehenden Personen nur zu Bedingungen schließen oder
tätigen, die einem Drittvergleich standhalten (arm's
length-Konditionen).
12.3 The COMPANY shall enter into agreements and transactions with companies which are not majority held
(§ 16 of the German Stock Corporation Act), members
of the management or shareholders as well as related
persons at arm's length terms only.
12.4 Der GLÄUBIGER beabsichtigt, Moody's KMV oder eine
andere von ihm bestimmte Bonitätsbeurteilungsagentur mit der jährlichen nicht-öffentlichen Beurteilung
der Bonität des UNTERNEHMENS zu beauftragen. Die
Bonitätsbeurteilung erfolgt hierbei auf der Grundlage
des Konzernabschlusses (§ 16.2), oder falls ein solcher
gemäß § 16.2 nicht zu erstellen ist, des Jahresabschlusses des UNTERNEHMENS. Die von Zeit zu Zeit
jeweils beauftragte Bonitätsbeurteilungsagentur wird
als BONITÄTSBEURTEILUNGSAGENTUR bezeichnet.
Das UNTERNEHMEN wird dem GLÄUBIGER die hierzu
erforderlichen Unterlagen und Informationen zur Verfügung stellen und die entstandenen Kosten erstatten.
12.4 The CREDITOR intends to appoint Moody's KMV or a
different credit appraisal agency determined by it with
an annual and non-public assessment of the creditworthiness of the COMPANY. In this connection, the
credit appraisal shall be conducted on the basis of the
consolidated financial statements (§ 16.2) or, if such
consolidated financial statements are not to be
prepared pursuant to § 16.2, the unconsolidated
financial statements. The respective credit appraisal
agency appointed from time to time shall be referred
to as the CREDIT APPRAISAL AGENCY. The COMPANY
shall make the documents and information necessary
for this purpose available to the C REDITOR and shall
reimburse its incurred expenses.
12.5 Das UNTERNEHMEN hat branchenüblichen Versicherungsschutz in angemessenem Umfang zu unterhalten und dies auf Verlangen dem GLÄUBIGER nachzuweisen.
12.5 The COMPANY shall maintain insurance cover in
accordance with industry practice and in an adequate
scope, and shall provide proof thereof to the C REDITOR
upon request.
12.6 Das UNTERNEHMEN wird gegenüber dem GLÄUBIGER
keine Sicherungs- und Zurückbehaltungsrechte oder
ähnliche Rechte geltend machen oder eine Aufrech-
12.6 The COMPANY waives the right to assert against the
CREDITOR any security interest, right of retention or
similar rights or to claim any set-off, unless its as-
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nung vornehmen, es sei denn, das geltend gemachte
Recht bzw. die Forderung, mit der aufgerechnet wird
ist unbestritten oder rechtskräftig festgestellt, oder das
UNTERNEHMEN hat wegen eines in der Person des
GLÄUBIGERS liegenden Kündigungsgrundes eine wirksame AUßERORDENTLICHE KÜNDIGUNG erklärt.
serted right or its set-off claim is not disputed or has
been confirmed by a non-appealable court decision or
the COMPANY has given a valid notice of EXTRAORDINARY TERMINATION by virtue of a termination
cause originating from the CREDITOR.
12.7 Das UNTERNEHMEN wird ausschließlich nach vorheriger schriftlicher Zustimmung des G LÄUBIGERS weitere
in der Insolvenz des UNTERNEHMENS nachrangige Finanzierungsinstrumente (§ 39 InsO) oder Finanzierungsinstrumente mit gewinnabhängiger oder gewinnorientierter Vergütung ausgeben. Zu letztgenannten
Finanzierungsinstrumenten zählen beispielsweise Genussrechte, stille Beteiligungen oder partiarische Darlehen, nicht jedoch Einzahlungen in die Kapitalrücklage oder auf Anteile oder bei Personengesellschaften
Einzahlung auf die Kapitalanteile oder in die Rücklagen. Dieses Zustimmungserfordernis besteht nicht in
Bezug auf Finanzierungsinstrumente, die gleichrangig
mit oder nachrangig zum GENUSSRECHT sind.
12.7 The COMPANY may not issue further financing instruments which would be subordinated in the insolvency
of the Company (§ 39 of the German Insolvency Act)
or financing instruments with profit-related or profitoriented remuneration without the prior written approval of the CREDITOR. The last-mentioned financing
instruments include, for example, participation rights
(Genussrechte), silent participations, profit participating loans, but not contributions made to the capital reserves or the payment of the subscription price for
shares or, in the case of partnerships, contributions
made to the capital shares or reserves. This requirement of prior approval shall not apply to financing instruments ranking pari passu with or junior to this
PARTICIPATION RIGHT.
§ 13
Zahlungen; Steuern; Vergütung bei Verzug
§ 13
Payments; Taxes; Remuneration in Case of Default
13.1 Zahlungen des UNTERNEHMENS an den GLÄUBIGER
sind auf das Konto des GLÄUBIGERS zu leisten, das
dieser dem UNTERNEHMEN mitteilen wird, Zahlungen
des GLÄUBIGERS an das UNTERNEHMEN auf das Konto
gemäß § 1.2 Satz 1 zu leisten. Kontoänderungen sind
der jeweils anderen Vertragspartei spätestens am
5. GESCHÄFTSTAG vor dem betreffenden Fälligkeitstermin schriftlich mitzuteilen.
13.1 Payments by the COMPANY to the CREDITOR shall be
made to the account of the CREDITOR notified to the
COMPANY by the CREDITOR, payments by the
CREDITOR to the COMPANY shall be made to the
account stated in § 1.2 sentence 1. Changes of accounts shall be communicated to the other party in
writing not later than the 5th BUSINESS DAY before the
relevant due date.
13.2 Der GLÄUBIGER wird dem UNTERNEHMEN spätestens
am 2. GESCHÄFTSTAG vor jedem VORAUSZAHLUNGSTERMIN und jedem ABRECHNUNGSTERMIN die an diesem Tag (vorbehaltlich der Regelungen des § 8) von
dem UNTERNEHMEN zu zahlenden Beträge mitteilen.
13.2 The CREDITOR shall report to the COMPANY not later
than on the 2nd BUSINESS DAY before each ADVANCE
PAYMENT DATE and each SETTLEMENT DATE the
amount payable by the COMPANY on this day (subject
to the provisions in § 8).
13.3 Alle Zahlungen des UNTERNEHMENS nach dieser Genussrechtsvereinbarung sind an den G LÄUBIGER netto
ohne jeglichen Einbehalt oder Abzug von Steuern, Abgaben und hoheitlichen Gebühren jedweder Art zu
leisten, es sei denn, das UNTERNEHMEN ist gesetzlich
verpflichtet, solche Einbehalte oder Abzüge vorzunehmen. Ist das UNTERNEHMEN gesetzlich verpflichtet,
solche Einbehalte oder Abzüge vorzunehmen, so
hat es an den GLÄUBIGER die zusätzlichen Beträge
zu zahlen, die notwendig sind, damit der nach dem
Einbehalt bzw. Abzug verbleibende Nettobetrag
den Beträgen entspricht, die ohne den Einbehalt
bzw. Abzug an den GLÄUBIGER zu zahlen gewesen
wären.
13.3 All payments by the COMPANY under this participation
right agreement shall be made to the C REDITOR on a
net basis and without any retentions or deductions of
taxes, levies and sovereign charges whatsoever, unless
the COMPANY is required by law to make such retentions or deductions. If the COMPANY is required by
law to make such retentions or deductions, it shall
pay to the CREDITOR the additional amounts necessary for the net amount remaining after the retention or deduction to equal the amount which would
have had to be paid to the CREDITOR without the
retention or deduction.
13.4 (a)
13.4 (a)
Die Regelung des § 13.3 findet keine Anwendung auf die zum Zeitpunkt des Abschlusses dieser Genussrechtsvereinbarung für Rechnung des
GLÄUBIGERS gesetzlich geschuldete Steuer vom
Kapitalertrag zuzüglich Solidaritätszuschlag
(gemeinsam nachfolgend als KAPITALERTRAGSTEUER bezeichnet). Sollte die zuständige
Finanzbehörde im Wege eines Einspruchsbescheids die Anrechnung oder Rückerstattung der
- 90 -
The provisions in § 13.3 shall not apply to the
statutory withholding tax (Kapitalertragsteuer)
plus the solidarity surcharge (Solidaritätszuschlag) owed for the account of the CREDITOR at the
signing of this participation right agreement
(hereinafter referred to jointly as WITHHOLDING
TAX). The CREDITOR shall notify the COMPANY
if the competent tax authorities were to refuse on
appeal (Einspruchsbescheid) giving credit for or
KAPITALERTRAGSTEUER ablehnen, wird der
GLÄUBIGER das UNTERNEHMEN hiervon in
Kenntnis setzen. Das UNTERNEHMEN wird in
diesem Fall auf Verlangen des GLÄUBIGERS
binnen zehn GESCHÄFTSTAGEN die zusätzlichen Beträge zahlen, die notwendig sind, damit der nach dem Einbehalt bzw. Abzug aufgrund der KAPITALERTRAGSTEUER verbleibende Nettobetrag den Beträgen entspricht,
die ohne den Einbehalt bzw. Abzug an den
GLÄUBIGER zu zahlen gewesen wären. Der
GLÄUBIGER wird dem UNTERNEHMEN binnen
weiteren zehn GESCHÄFTSTAGEN den Einspruchsbescheid der Finanzbehörde in Kopie übermitteln. Der GLÄUBIGER ist berechtigt, seine Ansprüche auf Zahlung zusätzlicher Beträge nach
diesem § 13.4(a) an Dritte abzutreten.
refunding the WITHHOLDING TAX. In this case,
the COMPANY shall on demand of the CREDITOR pay, within ten B USINESS DAYS, the additional amounts necessary for the net amount
remaining after the retention or the deduction
of the WITHHOLDING TAX to equal the amount
which would have had to be paid to the CREDITOR without the retention or deduction.
Within additional ten BUSINESS DAYS, the
CREDITOR shall deliver to the COMPANY a copy
of the decision on appeal issued by the tax authorities. The CREDITOR shall be entitled to assign its payment claims to additional amounts
under this § 13.4(a) to third parties.
(b) Der GLÄUBIGER wird im Falle einer ablehnenden
Entscheidung der Finanzverwaltung (Absatz (a))
Klage vor den Finanzgerichten erheben, soweit
eine solche Klage zumutbar ist und der
GLÄUBIGER einen angemessenen Vorschuss für
die Verfahrenskosten erhält.
(b) In case of a negative decision by the tax authorities (para. (a)), the CREDITOR shall bring an action in the Finance Courts if such action is reasonable and if the Creditor receives an adequate
advance to cover the costs of the proceedings.
(c)
(c)
Die angemessenen Kosten des G LÄUBIGERS im
Zusammenhang mit Einspruchs- und Klageverfahren sind ihm durch das UNTERNEHMEN (im
Falle mehrerer Erstattungsansprüche anteilig) zu
erstatten.
The reasonable costs incurred by the C REDITOR
in connection with the administrative appeal and
court proceedings shall be refunded by the
COMPANY (in case of multiple refund claims, the
refund shall be pro rata).
(d) Wird die zunächst abgelehnte Anrechnung oder
Rückerstattung der KAPITALERTRAGSTEUER zu
einem späteren Zeitpunkt vorgenommen, so wird
der GLÄUBIGER dem UNTERNEHMEN die gemäß
vorstehendem Absatz (a) gezahlten zusätzlichen
Beträge zurückerstatten. Diese Rückerstattungsverpflichtung ist auf die Höhe der Anrechnung
bzw. Erstattung beschränkt.
(d) If the tax credit for or refund of the W ITHHOLDING TAX, which was refused initially, is
granted at a later date, the CREDITOR shall refund
to the COMPANY the additional amounts paid in
accordance with the preceding para. (a). This
obligation to refund is limited to the amount of
tax credit or refund.
(e)
(e)
Das UNTERNEHMEN wird dem GLÄUBIGER die
einbehaltene KAPITALERTRAGSTEUER unverzüglich gemäß § 45a Abs. 2 EStG bescheinigen.
The COMPANY shall certify the retained
WITHHOLDING TAX in accordance with § 45a
para. 2 of the German Income Tax Act (Einkommensteuergesetz) to the CREDITOR without
undue delay.
13.5 Alle Steuern, Gebühren, Abgaben und sonstigen Kosten, die im Zusammenhang mit dieser Genussrechtsvereinbarung, insbesondere ihrem Abschluss und ihrer
Durchführung oder einer V ERTRAGSÜBERNAHME entstehen, werden von dem UNTERNEHMEN getragen.
13.5 All taxes, fees, levies and other expenses, which accrue in connection with this participation right agreement, in particular with its conclusion and its performance or with an ASSUMPTION OF AGREEMENT, shall be
paid by the COMPANY.
13.6 Zahlungen des GLÄUBIGERS an das UNTERNEHMEN
erfolgen nach etwaigen Abzügen oder Einbehalten, zu
denen der GLÄUBIGER durch oder aufgrund gesetzlicher Vorschriften verpflichtet ist. Der G LÄUBIGER ist
in diesem Fall zu keinen weiteren Zahlungen zum
Ausgleich dieser Einbehalte oder Abzüge verpflichtet.
13.6 Payments by the CREDITOR to the COMPANY shall be
made net of any deductions or retentions required by
or due to law to be made by the CREDITOR (if any). In
this case, the CREDITOR shall not owe any additional
payments to compensate for these retentions or deductions.
13.7 Sollte das UNTERNEHMEN zur Zahlung zusätzlicher
Beträge nach § 13.4(a) verpflichtet werden, ist es zur
AUßERORDENTLICHEN KÜNDIGUNG dieser Vereinbarung berechtigt. Auf die Rückzahlung nach Kündigung
findet § 6 (insbesondere einschließlich der Regelung
zur Zahlung des ZUSÄTZLICHEN RÜCKZAHLUNGSBETRAGS) Anwendung. Die Parteien vereinbaren, dass
13.7 If the COMPANY were obliged to pay additional
amounts pursuant to § 13.4(a), it shall be entitled to an
EXTRAORDINARY TERMINATION of this agreement. § 6
shall apply to the repayment after termination (in particular including the provisions on payment of the
ADDITIONAL REPAYMENT AMOUNT). The parties agree
that a duty of the C OMPANY to pay other additional
- 91 -
eine Verpflichtung des UNTERNEHMENS zur Zahlung
sonstiger zusätzlicher Beträge oder Abzüge, oder Einbehalte des GLÄUBIGERS nach Maßgabe dieses § 13
keinen wichtigen Grund für eine AUßERORDENTLICHE
KÜNDIGUNG durch das UNTERNEHMEN darstellen.
amounts, or deductions and retentions by the
CREDITOR according to this § 13 shall not constitute
good cause for an EXTRAORDINARY TERMINATION by
the COMPANY.
13.8 Für den Fall, dass das UNTERNEHMEN einen fälligen
Zahlungsanspruch verspätet bedient, ist an den GLÄUBIGER jeweils eine zusätzliche Vergütung zu entrichten. Diese beträgt 4% p.a. des N ENNBETRAGS des GENUSSRECHTS zeitanteilig für den Zeitraum der Säumnis.
13.8 If the COMPANY defaults on a due payment claim, it
shall in each case pay to the CREDITOR an additional
remuneration. This remuneration shall amount to
4% p.a. of the NOMINAL AMOUNT of the PARTICIPATION RIGHT, calculated pro rata temporis for the period
of default.
13.9 Alle Beträge, die zeitanteilig zu berechnen sind, werden auf der Grundlage der tatsächlich vergangenen
Tage im betreffenden Zeitraum dividiert durch 360
ermittelt. Bei der Berechnung ist jeweils der erste,
nicht aber der letzte Tag des betreffenden Zeitraums
mitzuzählen.
13.9 All amounts to be calculated pro rata temporis shall be
determined on the basis of the days actually elapsed in
the relevant period divided by 360. For the purpose of
this calculation, the first, but not the last day of the
relevant period shall be included.
§ 14
Abtretung von Rechten; Vertragsübernahme
§ 14
Assignment of Rights; Assumption of Agreement
14.1 Das UNTERNEHMEN ist nicht berechtigt, seine Forderungen oder sonstige Rechte aus dieser Genussrechtsvereinbarung ohne vorherige schriftliche Zustimmung
des GLÄUBIGERS an Dritte zu übertragen oder zu belasten.
14.1 The COMPANY shall not be entitled to assign its claims
or other rights under this participation right agreement
to third parties or to encumber these rights without the
prior written consent of the CREDITOR.
14.2 Der GLÄUBIGER ist berechtigt, zum Zwecke der Refinanzierung des GENUSSRECHTS oder zu Sicherungszwecken seine aus dieser Genussrechtsvereinbarung
resultierenden Forderungen und Rechte abzutreten
oder zu belasten.
14.2 For the purpose of refinancing the P ARTICIPATION
RIGHT or the creation of security interests, the C REDITOR shall be entitled to assign or encumber its claims
or rights under this participation right agreement.
14.3 Für den Fall, dass (i) dem G LÄUBIGER die Rechte nach
§ 11.2 (b) (iii) zustehen oder (ii) sich die Laufzeit des
GENUSSRECHTS gemäß § 6.3 verlängert, ist der G LÄUBIGER jederzeit berechtigt, seine Rechtsstellung aus
dieser Genussrechtsvereinbarung mit allen Rechten
und Pflichten insgesamt auf einen Dritten zu übertragen (VERTRAGSÜBERNAHME). Das UNTERNEHMEN erklärt bereits jetzt für diesen Fall unwiderruflich seine
Zustimmung zu einer VERTRAGSÜBERNAHME durch einen von dem GLÄUBIGER bestimmten Dritten. Die
Übertragungsabsicht ist dem UNTERNEHMEN anzuzeigen. Dieses ist berechtigt, binnen zwei Wochen nach
Zugang der Anzeige der VERTRAGSÜBERNAHME zu
widersprechen, wenn in der Person des Vertragsübernehmers ein wichtiger Grund vorliegt, der eine
VERTRAGSÜBERNAHME auch unter Abwägung der Interessen des GLÄUBIGERS an einer Liquidierung seiner
Investition unzumutbar erscheinen lässt, und das
UNTERNEHMEN diesen wichtigen Grund in seinem Widerspruch nachvollziehbar darlegt.
14.3 If (i) the CREDITOR 'S rights pursuant to § 11.2 (b) (iii)
arise or (ii) the term of the P ARTICIPATION RIGHT is
extended pursuant to § 6.3, the CREDITOR shall be
entitled, at any time, to transfer its entire legal position
under this participation right agreement with all its
rights and duties to a third party (ASSUMPTION OF
AGREEMENT). The COMPANY herewith gives its anticipated irrevocable consent to an ASSUMPTION OF
AGREEMENT by a third party determined by the
CREDITOR. The intention to transfer shall be notified to
the COMPANY. The COMPANY shall be entitled to
object to the ASSUMPTION OF AGREEMENT within two
weeks from receipt of notice for good cause with
respect to the person assuming the agreement, if the
ASSUMPTION OF AGREEMENT thereby appears unacceptable even in consideration of the interests of the
CREDITOR in the liquidation of its investment, provided that the COMPANY comprehensively demonstrates such good cause in its objection.
14.4 Mit einer VERTRAGSÜBERNAHME stehen dem Dritten
sämtliche Rechte und Pflichten zu, die sich nach den
Bedingungen dieser Vereinbarung aus der Stellung als
GLÄUBIGER ergeben. Dem UNTERNEHMEN gegenüber
wird eine VERTRAGSÜBERNAHME nur dann wirksam,
wenn sie diesem angezeigt wurde und es keinen wirksamen Widerspruch eingelegt hat.
14.4 Following an ASSUMPTION OF AGREEMENT, the third
party shall have all rights and duties of the CREDITOR
pursuant to the terms and conditions of this agreement.
An ASSUMPTION OF AGREEMENT shall take effect towards the COMPANY only after it has been notified to
the COMPANY and if the COMPANY did not file an effective objection.
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§ 15
Beschränkung von Ansprüchen und Rechtsverfolgung;
Rechte Dritter
§ 15
Limitation of Claims and Assertion of Rights; Rights of
Third Parties
15.1 Bei dem GLÄUBIGER handelt es sich um eine Zweckgesellschaft, die für die Zwecke der Refinanzierung
eines Portfolios von Genussrechten im Wege der Begebung einer Anleihe am Kapitalmarkt und/oder die
Durchführung einer sonstigen Refinanzierung
gegründet wurde. Für die Platzierung und die
Bonitätsbeurteilung derartiger Anleihen durch einen
Ratingdienstleister ist es erforderlich und marktüblich,
dass zwischen sämtlichen Vertragsgläubigern der
Zweckgesellschaft eine Rangfolge zur Verteilung des
vorhandenen Vermögens vereinbart und durch die Beschränkung der Rechtsverfolgung abgesichert wird.
15.1 The CREDITOR constitutes a special purpose vehicle,
which has been established for the purpose of refinancing a portfolio of participation rights (Genussrechte) by way of issuing notes on the capital markets
and/or the realisation of another refinancing. For the
purposes of placement and rating of such notes by a
rating agency, it is necessary and market practice to
agree on an order of priority amongst all contractual
creditors of the special purpose vehicle with respect to
the distribution of the available assets and to protect
such order of priorities by limiting the assertion of
rights.
Ansprüche des UNTERNEHMENS gegen den GLÄUBIoder dessen Gesellschafter, welche sich auf die
Zahlung von Geld richten, sind daher auf das tatsächlich vorhandene Vermögen des GLÄUBIGERS
beschränkt. Sie sind ausschließlich nach
vollständiger und endgültiger Rückführung
sämtlicher Verbindlichkeiten, die die G LÄUBIGERIN
im
Rahmen
der
Refinanzierung
dieser
Genussrechtsvereinbarung durch eine Anleihe
und/oder eine sonstige Refinanzierung eingeht, zu
bedienen; von dieser Rangabrede ausgenommen
sind
etwaige
Verrechnungsansprüche
des
UNTERNEHMENS nach Maßgabe des § 2.4. Das
UNTERNEHMEN stimmt ausdrücklich zu, dass keine
über die Beschränkungen des § 15.1 Sätze 3-4
hinausgehenden
Zahlungsverpflichtungen
des
GLÄUBIGERS oder dessen Gesellschafter begründet
werden und der Rückgriff auf das Vermögen des
GLÄUBIGERS oder dessen Gesellschafter entsprechend
beschränkt ist.
Therefore, payment claims of the C OMPANY against
the CREDITOR or its shareholders are limited to the
available assets of the CREDITOR. They are to be
satisfied exclusively after the full and definite
discharge of all obligations assumed by the
CREDITOR within the framework of the refinancing
of this participation right agreement by notes
and/or another refinancing; netting claims of the
COMPANY pursuant to § 2.4 (if any) shall be
excluded from this priority agreement. The
COMPANY herewith explicitly agrees that the
CREDITOR or its shareholders shall have no payment
obligations exceeding the limitations provided for in
§ 15.1 sentences 3-4 and that the recourse to the assets
of the CREDITOR or its shareholders shall be limited
accordingly.
15.2 Das UNTERNEHMEN stimmt ferner ausdrücklich zu,
dass es wegen ihm zustehender Forderungen und
Rechte gegen den GLÄUBIGER oder dessen Gesellschafter vor Ablauf eines Jahres und eines Tages nach
der vollständigen Bedienung sämtlicher Verbindlichkeiten unter der in § 15.1 genannten Anleihe keinen
Antrag auf Eröffnung eines Insolvenzverfahrens
über das Vermögen des G LÄUBIGERS oder seiner Gesellschafter stellen wird.
15.2 In addition, the COMPANY explicitly agrees that before
the expiration of the period of one year and one day
after the complete discharge of all obligations under
the notes referred to in § 15.1, it shall not file an application for the opening of insolvency proceedings
with respect to the assets of the C REDITOR or its shareholders based on its claims against the C REDITOR or its
shareholders.
15.3 Jedwede Forderungen und Rechte Dritter gegen den
GLÄUBIGER aus oder im Zusammenhang mit dieser
Genussrechtsvereinbarung sind ausdrücklich ausgeschlossen.
15.3 Any claims and rights of third parties against the C REDITOR under or in connection with this participation
right agreement are explicitly excluded.
§ 16
Allgemeine Bestimmungen
§ 16
General Provisions
16.1 Begriffe, die in dieser Genussrechtsvereinbarung definiert werden, haben in der gesamten Genussrechtsvereinbarung die übereinstimmende Bedeutung. Die
Anlagen bilden einen integralen Bestandteil dieser Genussrechtsvereinbarung.
16.1 Terms which are defined in this participation right
agreement shall have the same meaning in the entire
participation right agreement. The annexes hereto constitute an integral part of this participation right
agreement.
16.2 Handelt es sich bei dem UNTERNEHMEN um eine Konzern- oder Teilkonzernobergesellschaft, so wird dieses
16.2 If the COMPANY is an ultimate holding company of a
group or sub-group, it shall, for the duration of this
GER
- 93 -
während der Laufzeit dieser Vereinbarung (unabhängig von einer entsprechenden gesetzlichen Verpflichtung) einen Konzernabschluss erstellen. Auf diesen
beziehen sich sämtliche Bezugnahmen in dieser Vereinbarung auf einen Konzernabschluss. Wurde dem
GLÄUBIGER vor Abschluss dieser Genussrechtsvereinbarung ein "Als-ob-Konzernabschluss" vorgelegt, der
neben dem UNTERNEHMEN auch andere, im weitesten
Sinne nahestehende Unternehmen mit einbezieht, so
ist das UNTERNEHMEN auch zukünftig verpflichtet,
während der Laufzeit dieser Vereinbarung einen vergleichbaren "Als-ob-Konzernabschluss" zu erstellen.
Sämtliche Bezugnahmen in dieser Vereinbarung auf
einen Konzernabschluss beziehen sich in diesem Fall
auf diese "Als-ob-Konzernabschlüsse". Solange die
Voraussetzungen der vorausgegangenen Sätze dieses §
16.2 nicht vorliegen, gelten Bezugnahmen in dieser
Vereinbarung auf Konzernabschlüsse als nicht vorhanden und begründen insoweit keinerlei Verpflichtungen des UNTERNEHMENS.
agreement, prepare consolidated financial statements
(regardless of a corresponding legal obligation). All
references to consolidated financial statements in this
agreement shall refer to these financial statements. If
the CREDITOR has received before the conclusion of
this participation right agreement "as-if consolidated
financial statements" comprising, apart from the
COMPANY, also other closely related companies in the
broadest sense, the COMPANY shall remain obliged to
prepare comparable "as-if consolidated financial
statements" during the term of this agreement. All references made to consolidated financial statements in
this agreement shall in this case refer to these "as-if
consolidated financial statements". As long as the
conditions of the preceding sentences of this § 16.2 are
not fulfilled, references made to consolidated financial
statements in this agreement do not apply and do not
constitute any obligations of the COMPANY in this respect.
16.3 Der GLÄUBIGER ist berechtigt, seine im Rahmen dieser
Genussrechtsvereinbarung begründeten Forderungen
und Rechte durch von ihm beauftragte Dritte einzuziehen oder ausüben zu lassen. Die Vertraulichkeitspflichten des GLÄUBIGERS (§ 10.4) bleiben unberührt.
16.3 The CREDITOR shall be entitled to have its claims and
rights arising under this participation right agreement
collected or exercised by third parties appointed by it.
The CREDITOR 'S confidentiality obligation (§ 10.4) remains unaffected.
16.4 Insiderrechtliche Vorschriften bleiben unberührt.
16.4 Insider trading provisions remain unaffected.
16.5 Soweit Bestimmungen dieser Genussrechtsvereinbarung die Zahlung pauschalierten Schadensersatzes
vorsehen, wird der jeweils zur Zahlung dieses Schadensersatzes verpflichteten Partei der Nachweis eines
niedrigeren und der jeweils zu Schadensersatz berechtigten Partei der Nachweis eines höheren Schadens
nicht abgeschnitten. Bei der Berechnung eines Schadens des GLÄUBIGERS ist dessen Charakter einer
Zweckgesellschaft Rechnung zu tragen und daher im
Wege der Drittschadensliquidation auf den Schaden
seiner Anleihegläubiger abzustellen.
16.5 To the extent that provisions of this participation right
agreement provide for the payment of lump sum damages, the party obliged to pay such damages shall not
be precluded from proving a lower amount of damages
and the party entitled to such damages shall not be
precluded from proving a higher amount of damages.
The calculation of the amount of damages incurred by
the CREDITOR shall take into account its nature as a
special purpose vehicle and shall therefore be based on
the damages incurred by its noteholders by way of a
liquidation of third party damages (Drittschadensliquidation).
16.6 Die Genussrechtsvereinbarung begründet keine Verpflichtungen der Gesellschafter des U NTERNEHMENS
sowie diesen nahestehende Personen im Sinne des § 1
Abs. 2 AStG und/oder Angehörige im Sinne von
§ 15 AO (einschließlich deren Rechtsnachfolger).
Diese sind weder rechtlich noch tatsächlich verpflichtet, für die Zahlungsverpflichtungen des U NTERNEHMENS aus dieser Genussrechtsvereinbarung einzustehen.
16.6 The participation right agreement does not create any
obligations of the shareholders of the C OMPANY or of
parties with a close relationship within the meaning of
§ 1 para. 2 of the German Foreign Tax Act (Außensteuergesetz) and/or of relatives within the meaning of
§ 15 of the German Tax Code (Abgabenordnung) (including their legal successors). These persons have no
liability, neither de jure nor de facto, with respect to
the payment obligations of the COMPANY under this
participation right agreement.
16.7 (a)
16.7 (a)
Mitteilungen an das UNTERNEHMEN im Zusammenhang mit dieser Vereinbarung sind zu
richten an:
Notifications to the COMPANY in connection with
this agreement shall be made to:
Herrn/Frau ____
Mr./Ms. ____
Telefon:
Telefax:
E-Mail:
Telephone: [__]
Telefax:
[__]
E-mail:
[__]
[__]
[__]
[__]
(b) Mitteilungen an den GLÄUBIGER im Zusammenhang mit dieser Vereinbarung sind zu richten an:
- 94 -
(b) Notifications to the CREDITOR in connection with
this agreement shall be made to:
(c)
c/o Bedell Trust Company Limited
The Directors
26 New Street
St. Helier
Jersey JE2 3RA
Channel Islands
The Directors
26 New Street
St. Helier
Jersey JE2 3RA
Channel Islands
Telefax:
Telefax:
+44 1534 814 815
+44 1534 814 815
cc: Commerzbank AG, London Branch
als Transaction Monitor
60 Gracechurch Street
London EC3V 0HR
in its capacity as Transaction Monitor
London EC3V 0HR
Telefax:
E-Mail:
Telefax:
E-mail:
+44 20 7469 3218
[email protected]
Die Vertragsparteien können Änderungen ihrer
vorgenannten Ansprechpartner und Anschriften
der jeweils anderen Vertragspartei jederzeit
schriftlich mitteilen. Bis zu dieser Mitteilung
gelten die bisherigen Angaben als wirksam.
(c)
+44 20 7469 3218
[email protected]
The parties to this agreement may at any time
give notice in writing to the respective other
party of changes regarding the aforementioned
contact persons and contact addresses. Until receipt of such notice, the previous information is
deemed to be effective.
16.8 Sollten einzelne Bestimmungen dieser Genussrechtsvereinbarung unwirksam oder undurchführbar sein,
bleibt die Genussrechtsvereinbarung im übrigen wirksam.
16.8 Should any provision of this participation right agreement be void or unenforceable, the remainder of the
participation right agreement shall remain unaffected.
16.9 Änderungen dieser Genussrechtsvereinbarung, einschließlich dieser Schriftformklausel, bedürfen der
Schriftform.
16.9 Modifications of this participation right agreement,
including this requirement of writing, shall be made in
writing only.
16.10 Diese Genussrechtsvereinbarung und deren Auslegung unterliegt ausschließlich deutschem Recht.
16.10 This participation right agreement and its interpretation is subject to German law only.
16.11 Nicht-ausschließlicher Gerichtstand für alle aus und
im Zusammenhang mit dieser Genussrechtsvereinbarung entstehenden Streitigkeiten ist das Landgericht
in Frankfurt am Main.
16.11 The non-exclusive place of jurisdiction for all legal
disputes arising under or in connection with this participation right agreement shall be the District Court
(Landgericht) in Frankfurt am Main.
ANLAGE 1 ZUR GENUSSRECHTSVEREINBARUNG
ZAHLUNGSTERMINBEZOGENE ERHÖHUNG DER
VERGÜTUNG
ANNEX 1 TO THE PARTICIPATION RIGHT
AGREEMENT
PAYMENT DATE-RELATED INCREASE OF REMUNERATION
Wird die für eine BERECHNUNGSPERIODE nach § 2.2(b) ermittelte VORAUSZAHLUNG am VORAUSZAHLUNGSTERMIN für
diese BERECHNUNGSPERIODE mangels ausreichender F REIER
MITTEL (§ 8.2) nicht fällig oder erfolgt eine Rückerstattung
gemäß § 2.4, so erhöht sich der nach § 2.1 für die
Ermittlung der VORAUSZAHLUNG und VERGÜTUNG maßgebliche
Prozentsatz
für
die
betreffende
BERECHNUNGSPERIODE nach Maßgabe der nachfolgenden
Bestimmungen und dem Anhang zu dieser Anlage 1
(AUFSCHLAG).
If the ADVANCE PAYMENT calculated for a CALCULATION
PERIOD in accordance with § 2.2(b) does not become due on
the ADVANCE PAYMENT DAY of this CALCULATION PERIOD
due to a lack of sufficient FREE FUNDS (§ 8.2) or if a refund
according to § 2.4 is made, the percentage rate relevant for
determining
the
ADVANCE PAYMENT
and
the
REMUNERATION in accordance with § 2.1 shall be increased
for the respective CALCULATION PERIOD subject to the following provisions and to the addendum to this Annex 1
(PREMIUM).
1.
1.
Der AUFSCHLAG (ausgedrückt in Prozentpunkten) für
eine bestimmte BERECHNUNGSPERIODE ermittelt sich
aus dem Anhang zu dieser Anlage 1 anhand der Anzahl der QUARTALSSTICHTAGE im Zeitraum von dem
Ablauf der betreffenden BERECHNUNGSPERIODE bis zu
- 95 -
The PREMIUM (expressed in percentage points) for a
certain CALCULATION PERIOD shall be determined by
virtue of the addendum to this Annex 1 on the basis of
the number of QUARTERLY RECORD DATES in the period from the expiration of the respective C ALCU-
dem Tag (ausschließlich), an dem die VORAUSfür diese BERECHNUNGSPERIODE geleistet
wird.
PERIOD to (and excluding) the day on which
the ADVANCE PAYMENT for this CALCULATION PERIOD
is made.
LATION
ZAHLUNG
2.
Im Falle der Rückzahlung der VORAUSZAHLUNG gemäß § 2.4 ist für die Ermittlung des AUFSCHLAGS gemäß dem Anhang zu dieser Anlage 1 auf die Anzahl
der QUARTALSSTICHTAGE im Zeitraum von dem Ablauf der BERECHNUNGSPERIODE unmittelbar vor dem
Rückzahlungstermin bis zu dem Tag (ausschließlich)
abzustellen, an dem die betreffende V ORAUSZAHLUNG
erneut geleistet wird.
2.
In case the ADVANCE PAYMENT is repaid according to
§ 2.4, the PREMIUM shall be determined pursuant to the
addendum to this Annex 1 on the basis of the number
of QUARTERLY RECORD DATES in the period from the
expiration of the CALCULATION PERIOD immediately
preceding the repayment date to (and excluding) the
day on which the respective ADVANCE PAYMENT is
made again.
3.
Im Falle mehrfacher Rückzahlung der VORAUSZAHLUNG gemäß § 2.4 ist für die Ermittlung des AUFSCHLAGS gemäß dem Anhang zu dieser Anlage 1 auf
die Summe der Anzahl der QUARTALSSTICHTAGE jeweils in den Zeiträumen von dem Ablauf der BERECHNUNGSPERIODE unmittelbar vor dem jeweiligen
Rückzahlungstermin bis zu jeweils dem Tag (ausschließlich), an dem die betreffende VORAUSZAHLUNG
erneut geleistet wird, abzustellen.
3.
In case of multiple repayment of the ADVANCE PAYMENT pursuant to § 2.4, the PREMIUM shall be determined pursuant to the addendum to this Annex 1 on
the basis of the sum of the number of ADVANCE
PAYMENT DATES in the respective periods from the
expiration of the CALCULATION PERIOD immediately
preceding the respective repayment date to (and excluding) the day on which the respective ADVANCE
PAYMENT is made again.
4.
Für die Zwecke der vorstehenden Ziffern 1.-3. gilt als
Zahlungstermin der VORAUSZAHLUNG für eine BERECHNUNGSPERIODE der Tag der Leistung der VORAUSZAHLUNG für diese BERECHUNGSPERIODE oder
wenn früher der Tag der Leistung der auf diese
BERECHNUNGSPERIODE entfallenden VERGÜTUNG. Eine
Verrechnung nach § 2.4 gilt nicht als Zahlungstermin
der VORAUSZAHLUNG.
4.
For the purposes of the preceding items 1.-3., the
payment date of the ADVANCE PAYMENT for a
CALCULATION PERIOD shall be deemed to be the day of
performance of the ADVANCE PAYMENT for this
CALCULATION PERIOD or, if earlier, the day of payment
of the REMUNERATION allocated to this CALCULATION
PERIOD. A set-off pursuant to § 2.4 shall not be
deemed to be the payment date of the ADVANCE
PAYMENT.
5.
Zahlungen des UNTERNEHMENS gelten vorbehaltlich
einer ausdrücklichen abweichenden Zweckbestimmung zunächst als Leistung bislang nicht gezahlter
VORAUSZAHLUNGEN in der zeitlichen Reihenfolge der
betreffenden BERECHNUNGSPERIODEN.
5.
Unless otherwise explicitly designated, payments by
the COMPANY shall be deemed to first constitute discharge of unpaid ADVANCE PAYMENTS in the chronological order of the respective C ALCULATION PERIODS.
6.
Wird eine VORAUSZAHLUNG am VORAUSZAHLUNGSTERMIN nur teilweise nicht geleistet oder eine nicht
geleistete VORAUSZAHLUNG in der Folge teilweise
nachgeholt, so berechnet sich der AUFSCHLAG verhältnismäßig unter Zugrundelegung der jeweiligen Teilzahlungen.
6.
In the event of partial non-payment of an ADVANCE
PAYMENT on the ADVANCE PAYMENT DATE or subsequent partial payments of unpaid ADVANCE PAYMENTS, the PREMIUM shall be calculated proportionally
on the basis of the respective partial payments.
Anhang zu Anlage 1
Addendum to Annex 1
Die Anwendung der Tabelle erläutert folgendes Beispiel:
Angenommen das Unternehmen zahlt keine Vergütung für
die ersten 3 Berechnungsperioden. Bei Wiederaufnahme der
Zahlung von Vergütungen in Berechnungsperiode 4 berechnet sich diese wie folgt:
The application of the table may be illustrated by the
following example: Assume that the company does not pay
any remuneration for the first 3 calculation periods. When
resuming payment of the remuneration in calculation period
4, the remuneration shall be calculated as follows:
V: Vergütung, B: Berechnungsperiode, N: Nennbetrag
R: remuneration, C: calculation period, N: nominal amount
Für B1: (V + 0,48%) * B1 * N
Für B2: (V + 0,32%) * B2 * N
Für B3: (V + 0,16%) * B3 * N
Für B4: V * B4 * N
For C1: (R + 0.48%) * C1 * N
For C2: (R + 0.32%) * C2 * N
For C3: (R + 0.16%) * C3 * N
For C4: R * C4 * N
- 96 -
B1/C1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
1
2
Aufschlag2/
premium2
0.16%
0.32%
0.48%
0.64%
0.80%
0.96%
1.12%
1.28%
1.44%
1.60%
1.76%
1.92%
2.08%
2.24%
2.40%
2.56%
2.72%
2.88%
3.04%
3.20%
3.36%
3.52%
3.68%
3.84%
4.00%
4.16%
4.32%
4.48%
4.64%
B/C
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
Aufschlag/
premium
4.80%
4.96%
5.12%
5.28%
5.44%
5.60%
5.76%
5.92%
6.08%
6.24%
6.40%
6.56%
6.72%
6.88%
7.04%
7.20%
7.36%
7.52%
7.68%
7.84%
8.00%
8.16%
8.32%
8.48%
8.64%
8.80%
8.96%
9.12%
9.28%
B/C
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
Aufschlag/
premium
9.44%
9.60%
9.76%
9.92%
10.08%
10.24%
10.40%
10.56%
10.72%
10.88%
11.04%
11.20%
11.36%
11.52%
11.68%
11.84%
12.00%
12.16%
12.32%
12.48%
12.64%
12.80%
12.96%
13.12%
13.28%
13.44%
13.60%
13.76%
13.92%
B/C
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
Aufschlag/
premium
14.08%
14.24%
14.40%
14.56%
14.72%
14.88%
15.04%
15.20%
15.36%
15.52%
15.68%
15.84%
16.00%
16.16%
16.32%
16.48%
16.64%
16.80%
16.96%
17.12%
17.28%
17.44%
17.60%
17.76%
17.92%
18.08%
18.24%
18.40%
18.56%
Anzahl Berechnungsperioden/number of calculation periods
Aufschlag in Prozentpunkten p.a./premium in percentage points p.a.
AGREEMENT
REPRESENTATIONS
ZUSICHERUNGEN
1.
Die Begründung des GENUSSRECHTS ist durch die
zuständigen Organe des UNTERNEHMENS autorisiert.
Insbesondere hat die Gesellschafter- bzw. Hauptversammlung einen wirksamen und unanfechtbaren Zustimmungsbeschluss zur Begebung des GENUSSRECHTS gefasst.
1.
The constitution of this PARTICIPATION RIGHT has been
authorised by the competent bodies of the C OMPANY.
In particular, the shareholders' meeting has taken a legally effective and incontestable resolution approving
the granting of the PARTICIPATION RIGHT.
2.
Die Informationen, die das UNTERNEHMEN im Zusammenhang mit dieser Genussrechtsvereinbarung dem
GLÄUBIGER zur Verfügung gestellt hat, sind zutreffend
und erlauben eine zutreffende Beurteilung der Vermögens-, Finanz- und Ertragslage des UNTERNEHMENS .
2.
The information given to the CREDITOR by the
COMPANY in connection with this participation right
agreement is correct and allows for a correct assessment of the assets, financial and earnings situation of
the COMPANY.
3.
Die dem GLÄUBIGER übergebenen Kopien des
Handelsregisterauszugs und des Gesellschaftsvertrags
bzw. der Satzung des UNTERNEHMENS sind vollständig
und korrekt. Es bestehen keine beschlossenen, aber
noch nicht eingetragenen Maßnahmen, die nicht dem
GLÄUBIGER offengelegt worden sind.
3.
The copies of the commercial register extract and the
partnership agreement or, as the case may be, the articles of association of the C OMPANY delivered to the
CREDITOR are complete and correct. There are no resolved but not yet registered actions which have not
been disclosed to the CREDITOR.
- 97 -
4.
Die Jahresabschlüsse und soweit solche erstellt wurden, Konzernabschlüsse des UNTERNEHMENS der letzten drei Geschäftsjahre sind in Übereinstimmung mit
den anwendbaren gesetzlichen Bestimmungen und den
allgemein anerkannten Buchführungs- und Bilanzierungsgrundsätzen unter Wahrung der formellen und
materiellen Bilanzkontinuität (einschließlich in Bezug
auf Bilanzierungs- und Bewertungswahlrechte) aufgestellt worden, und vermitteln unter Beachtung der
Grundsätze ordnungsgemäßer Buchführung ein den
tatsächlichen Verhältnissen entsprechendes Bild der
Vermögens-, Finanz- und Ertragslage zu dem jeweiligen Bilanzstichtag.
4.
The unconsolidated and, as far as drawn up, consolidated financial statements of the COMPANY for the
last three financial years have been prepared in accordance with the applicable legal provisions and the
generally accepted bookkeeping and accounting principles observing formal and material continuity of accounting treatment (formelle und materielle Bilanzkontinuität) (also with regard to discretionary accounting and valuation) and reflect, in compliance with
sound accounting principles, the accurate assets, financial and earnings situation on the respective date of
the financial statements.
5.
Seit dem Stichtag des letzten Jahresabschlusses des
UNTERNEHMENS hat es bei dem UNTERNEHMEN und
seinen Tochterunternehmen keine wesentlichen nachteiligen Veränderungen der allgemeinen geschäftlichen Situation, der Geschäftsführung, der Vermögens, Finanz- oder Ertragslage, des Eigenkapitals oder der
Ergebnisse der Geschäftstätigkeit gegeben, und es sind
dem UNTERNEHMEN nach sorgfältiger Prüfung keine
Umstände bekannt, die eine derartige Änderung bewirken könnten.
5.
Since the record date of the last financial statements of
the COMPANY, there have been no material adverse
changes of the general business situation, the management board, the assets, financial and earnings
situation, equity capital or the results of business activity of the COMPANY or its subsidiaries and the
COMPANY, after careful investigation, is not aware of
any circumstances which could effect such a change.
6.
Der Abschluss der Genussrechtsvereinbarung verstößt
nicht gegen andere Verträge des UNTERNEHMENS und
berührt deren Wirksamkeit und Durchsetzbarkeit
nicht.
6.
The conclusion of this participation right agreement
does not violate other agreements of the C OMPANY and
does not affect their validity and enforceability.
7.
Das UNTERNEHMEN hat auf Grundlage von Gesprächen mit seinem Steuerberater und seinem Wirtschaftsprüfer eine unabhängige Beurteilung der steuerlichen und bilanziellen Auswirkungen vorgenommen,
die sich aus dem Abschluss der Genussrechtsvereinbarung ergeben.
7.
The COMPANY has conducted an independent assessment of the fiscal and accounting effects resulting
from the conclusion of this participation right agreement on the basis of discussions with its tax advisor
and its auditor.
KENNZAHLEN NACH MOODY'S KMV RISC CALC
AGREEMENT
KEY RATIOS ACCORDING TO
MOODY'S KMV RISC CALC
Die nachfolgenden Kennzahlen werden bei der Ermittlung
einer Bonitätsbeurteilung nach Moody's KMV Risc Calc
ermittelt. Der GLÄUBIGER ist befugt, die Kennzahlen auf
anonymisierter Basis zu veröffentlichen; nicht veröffentlicht
werden die jeweiligen Berechnungsbestandteile der
Kennzahlen.
The following key ratios will be calculated in connection
with the determination of a credit appraisal according to
Moody's KMV Risc Calc. The Creditor shall be entitled to
publish such key ratios on an anonymous basis; the
respective calculation components of such key ratios shall
not be published.
TCR: Trade Creditor Ratio =
(trade
(trade
payables + notes payables ) ∗ 360
sales
sales
LS: Liabilities Structure =
trade payables + notes payables + bank liabilities
provisions + total liabilities + 50% special item with equity character
− advances form customers
- 98 -
provisions + total liabilities + 50 % special item with equity character
NI: Net Indebtedness =
total current liabilities − cash and equivalents − short term sec urities
total assets
ER: Equity Ratio =
total assets
ER: Equity Ratio =
total equity + 50% special item with equity character − int angible assets
total assets − int angible assets − cash & equivalent s − short term sec urities − land & builings
total equity + 50% special item with equity character − int angible assets
DC: Debt Coverage =
DC: Debt Coverage =
cash flow − other taxes
− advances from customers
EBITDR: EBITD-ROI =
EBITDR: EBITD-ROI =
net income + int erest and similar exp enses
+ taxes on income + depreciati on
total assets
total assets
POS: Profit on Sales =
ordinary profit & loss − other taxes *
sales
sales
SG: Sales Growth =
SG: Sales Growth =
sales
sales (previous year )
sales
PEOS: Personnel Expenses on Sales =
personnel exp enses
sales
personnel exp enses
sales
- 99 -
II.
Participation Right Agreement Type B
Angebot auf Abschluss einer
Non-binding convenience translation
Offer for Conclusion of a
Variante B
PARTICIPATION RIGHT AGREEMENT
Type B
abzuschließen zwischen
to be entered into between
[Name] [Adresse]
(UNTERNEHMEN)
[Name] [Address]
(COMPANY)
und
and
26 New Street, St. Helier, Jersey JE2 3RA, Channel
Islands
(GLÄUBIGER).
26 New Street, St. Helier, Jersey JE2 3RA, Channel
Islands
(CREDITOR).
§1
Genussrecht; Nennbetrag; Anfangstermin
§1
Participation Right; Nominal Amount; Start Date
1.1 Das UNTERNEHMEN gibt hiermit gegenüber dem
GLÄUBIGER das unwiderrufliche Angebot ab, ihm
nach Maßgabe der nachfolgenden Bedingungen ein
Genussrecht (das GENUSSRECHT) im Nennbetrag
von EUR [________] (der NENNBETRAG) einzuräumen. Dieses Vertragsangebot erlischt am 31.
Dezember 2005.
1.1 The COMPANY hereby irrevocably offers to grant to
the CREDITOR, subject to the terms specified below, a
participation right (Genussrecht, the PARTICIPATION
RIGHT) in the nominal amount of EUR [________]
(the NOMINAL AMOUNT). This offer shall expire on
December 31, 2005.
1.2 Der GLÄUBIGER kann dieses Vertragsangebot bis zu
dem in § 1.1 Satz 2 genannten Datum durch Überweisung des NENNBETRAGS (abzüglich des gemäß
gesonderter Vereinbarung von dem G LÄUBIGER in
Abzug zu bringenden Abschlags in Höhe von [__]%
für
Drittansprüche) auf das
Konto des
UNTERNEHMENS bei der [Bank], Bankleitzahl
[__________], Kontonummer [__________] (oder
ein anderes vom UNTERNEHMEN gemäß § 11.1 benanntes Konto) annehmen. Mit der Gutschrift des
durch den Abschlag verminderten NENNBETRAGS auf
das Konto des UNTERNEHMENS gemäß § 1.2 Satz 1
wird das GENUSSRECHT zugunsten des GLÄUBIGERS
begründet. Der Tag dieser Kontogutschrift wird
nachfolgend als ANFANGSTERMIN bezeichnet.
1.2 The CREDITOR may accept this offer until the date
specified in § 1.1 sentence 2 by transfer of the
NOMINAL AMOUNT (less a discount in the amount of
[__]% for third party claims to be deducted by the
CREDITOR in accordance with a separate agreement)
to the COMPANY 'S bank account with the [Name of
Bank], bank code [__________], account number
[__________] (or to a different bank account specified by the COMPANY in accordance with § 11.1).
The PARTICIPATION RIGHT shall be constituted for the
benefit of the CREDITOR at the time the NOMINAL
AMOUNT as reduced by the discount is credited to the
COMPANY 'S bank account according to § 1.2 sentence
1. The date of this credit entry shall be referred to
below as the START DATE.
1.3 Der GLÄUBIGER wird dem UNTERNEHMEN den
voraussichtlichen ANFANGSTERMIN spätestens eine
Woche vorher schriftlich mitteilen.
1.3 The CREDITOR shall give at least one week's advance
notice in writing to the COMPANY of the prospective
START DATE.
§2
Vergütung
§2
Remuneration
2.1 Vergütung
2.1 Remuneration
Das UNTERNEHMEN hat dem GLÄUBIGER eine Vergütung für den Zeitraum vom ANFANGSTERMIN bis zum
ENDFÄLLIGKEITSTERMIN (§ 3) zu zahlen (die
VERGÜTUNG). Die VERGÜTUNG setzt sich aus einer
- 100 -
The COMPANY shall pay a remuneration to the
CREDITOR for the period from the S TART DATE to the
FINAL M ATURITY DATE (§ 3) (the REMUNERATION).
The REMUNERATION shall consist of a fixed compo-
fixen Komponente nach Maßgabe des § 2.2 (FIXE
VERGÜTUNG) und einer variablen Komponente nach
Maßgabe des § 2.3 (VARIABLE VERGÜTUNG) zusammen.
2.2 Fixe Vergütung
(a)
nent pursuant to § 2.2 (FIXED REMUNERATION) and
a floating component pursuant to § 2.3 (FLOATING
REMUNERATION).
2.2 Fixed Remuneration
Die FIXE VERGÜTUNG berechnet sich als
Prozentsatz p.a. des NENNBETRAGS des
GENUSSRECHTS. Der Prozentsatz wird gemäß
nachstehendem Absatz (b) festgelegt. Die F IXE
VERGÜTUNG ist nachträglich am 15. Januar, 15.
April, 15. Juli und 15. Oktober eines jeden Jahres (QUARTALSSTICHTAGE) für die betreffende
BERECHNUNGSPERIODE zu zahlen. Erster
QUARTALSSTICHTAG ist der 15. Januar 2006.
Falls der betreffende QUARTALSSTICHTAG kein
GESCHÄFTSTAG ist, so ist die FIXE VERGÜTUNG
am nächstfrüheren GESCHÄFTSTAG zu zahlen.
GESCHÄFTSTAG ist jeder Tag, an dem in Frankfurt am Main Geschäftsbanken für den allgemeinen Geschäftsverkehr geöffnet sind. Der
gemäß den vorstehenden Sätzen bestimmte
Zahlungstermin wird jeweils als ZAHLUNGSTERMIN bezeichnet.
(a) The FIXED REMUNERATION shall be calculated as
a percentage rate p.a. of the NOMINAL AMOUNT
of the PARTICIPATION RIGHT. The percentage
rate shall be determined in accordance with the
following para. (b). The FIXED REMUNERATION
shall be paid in arrear on January 15, April 15,
July 15 and October 15 of each year
(QUARTERLY RECORD DATES). The first
QUARTERLY RECORD DATE shall be January 15,
2006. If the relevant QUARTERLY RECORD DATE
is not a BUSINESS DAY, the FIXED
REMUNERATION shall be paid on the next preceding BUSINESS DAY. BUSINESS DAY means
every day on which commercial banks in
Frankfurt am Main are open for general business. The payment date as determined in accordance with the preceding provisions is referred
to as the respective PAYMENT DATE.
BERECHNUNGSPERIODE für
den ersten
ZAHLUNGSTERMIN ist der Zeitraum vom
ANFANGSTERMIN (einschließlich) bis zum
ersten QUARTALSSTICHTAG (ausschließlich).
Die BERECHNUNGSPERIODE für jeden späteren
ZAHLUNGSTERMIN ist der Zeitraum vom
unmittelbar vorausgegangenen Q UARTALS STICHTAG (einschließlich) bis zum nächstfolgenden QUARTALSSTICHTAG (ausschließlich).
CALCULATION PERIOD for the first PAYMENT
DATE means the period from (and including)
the START DATE to (and excluding) the first
QUARTERLY RECORD DATE. The CALCULATION
PERIOD for each subsequent P AYMENT DATE
means the period from (and including) the immediately preceding QUARTERLY RECORD DATE
to (and excluding) the next following
QUARTERLY RECORD DATE.
(b) Der Prozentsatz p.a. für die Berechnung der
FIXEN VERGÜTUNG wird vom GLÄUBIGER oder
einem von ihm beauftragen Dritten spätestens
eine Woche vor dem voraussichtlichen
ANFANGSTERMIN nach billigem Ermessen
(§ 317 Abs. 1 BGB) verbindlich festgelegt und
unverzüglich nach Festlegung gemeinsam mit
den Angaben nach § 1.3 dem UNTERNEHMEN
mitgeteilt. Wird ein höherer Prozentsatz als
[__]% p.a. mitgeteilt, so ist das UNTERNEHMEN
an sein Vertragsangebot gemäß § 1.1 nicht
mehr gebunden. Es kann in diesem Fall bis zum
dritten GESCHÄFTSTAG nach Zugang der Mitteilung dem GLÄUBIGER ein erneutes Angebot
unterbreiten, diese Genussrechtsvereinbarung
mit dem mitgeteilten Prozentsatz abzuschließen. Der GLÄUBIGER kann dieses Angebot binnen 3 Wochen nach Ablauf dieser Angebotsfrist in entsprechender Anwendung des § 1.2
durch Überweisung des NENNBETRAGS an das
UNTERNEHMEN annehmen.
(b) The percentage rate p.a. for the calculation of
the FIXED REMUNERATION shall be determined
with binding effect by the CREDITOR or a third
party appointed by it at least one week in advance of the anticipated START DATE in its reasonable discretion (§ 317 para. 1 of the German
Civil Code, Bürgerliches Gesetzbuch) and shall
be notified to the COMPANY without undue delay following its determination together with
the information pursuant to § 1.3. If a percentage rate exceeding [__]% p.a. is notified, the
COMPANY shall be no longer bound by its offer
according to § 1.1. In this case, it may submit a
new offer to the CREDITOR until the third business day following the day of receipt of the notification to conclude the participation right
agreement on the basis of the notified percentage rate. The CREDITOR may accept this offer
within three weeks following the expiration of
this deadline for submission of offers by transferring the NOMINAL AMOUNT to the COMPANY ;
§ 1.2 shall apply mutatis mutandis.
(c)
c)
Die FIXE VERGÜTUNG ist garantiert und
unabhängig von der Ertragslage des
UNTERNEHMENS nach Maßgabe dieses § 2.2 zu
zahlen.
- 101 -
The FIXED REMUNERATION shall be guaranteed
and paid pursuant to this § 2.2 independently of
the earnings situation of the COMPANY.
2.3 Variable Vergütung
(a)
2.3 Floating Remuneration
Die VARIABLE VERGÜTUNG für jedes Geschäftsjahr des UNTERNEHMENS beträgt:
(i)
(a)
[…]% p.a. des NENNBETRAGS des
GENUSSRECHTS bei einer UMSATZRENDITE
von mindestens […]; oder
The FLOATING REMUNERATION for each financial year of the COMPANY shall amount to:
(i)
[…]% p.a. of the NOMINAL AMOUNT of
the PARTICIPATION RIGHT, if the RETURN
ON S ALES amounts to at least […]; or
(ii) […]% p.a. des NENNBETRAGS des
GENUSSRECHTS bei einer UMSATZRENDITE
von mindestens […].
(ii) […]% p.a. of the NOMINAL AMOUNT of
the PARTICIPATION RIGHT, if the RETURN
ON S ALES amounts to at least […].
(b) Die UMSATZRENDITE entspricht dem Ergebnis
der gewöhnlichen Geschäftstätigkeit (§ 275
Abs. 2 Nr. 14 oder Abs. 3 Nr. 13 HGB) dividiert durch die Umsatzerlöse (§ 275 Abs. 2 Nr.
1 oder Abs. 3 Nr. 1 HGB). Für die Zwecke dieser Regelung ermittelt sich das Ergebnis der
gewöhnlichen Geschäftstätigkeit ohne Berücksichtigung von Ansprüchen nach diesen
Genussrechtsbedingungen und Ansprüchen von
Gläubigern sonstiger Finanzierungsinstrumente,
die für den Fall eines Insolvenzverfahrens und
der Liquidation des UNTERNEHMENS mit einem
Rangrücktritt ausgestattet sind. Falls das Unternehmen am ANFANGSTERMIN nicht nach den
Grundsätzen des Handelsgesetzbuchs, sondern
z.B. nach Internationalen Rechnungslegungsstandards (IFRS) bilanziert, erfolgt eine gleichwertige Berechnung (im Falle der Bilanzierung
nach IFRS, soweit nicht eine abweichende Regelung mit dem GLÄUBIGER getroffen wurde:
Verhältnis des Ergebnisses vor Ertragsteuern,
außerordentlichen Aufwendungen und Erträgen
und dem anderen Gesellschaftern zustehenden
Ergebnis zu den Umsatzerlösen). Stellt das
UNTERNEHMEN während der Laufzeit dieser
Regelungen die Rechnungslegung auf von den
Grundsätzen des Handelsgesetzbuches abweichende Regelungen um, erfolgt mit Zustimmung des GLÄUBIGERS auf der Grundlage der
anwendbaren Bilanzierungsgrundsätze eine
Überleitung auf die dann von dem UNTERNEHMEN angewandten Grundsätze mit dem Ziel der
Festlegung einer gleichwertigen Berechnungsmethode. Die UMSATZRENDITE berechnet sich
jeweils auf der Grundlage des gemäß § 8.1
übermittelten Konzernabschlusses (§ 14.2) des
UNTERNEHMENS oder, soweit ein solcher gemäß
§ 14.2 nicht zu erstellen ist, auf der Grundlage
des gemäß § 8.1 übermittelten Jahresabschlusses des UNTERNEHMENS.
(b) The RETURN ON SALES corresponds to the result of the ordinary business operations (§ 275
para. 2 no. 14 or para. 3 no. 13 of the German
Commercial Code, Handelsgesetzbuch) divided
by the net sales (§ 275 para. 2 no. 1 or para. 3
no. 1 of the German Commercial Code). For
the purposes of this provision, the result of the
ordinary business operations shall be determined disregarding the claims arising under the
terms of these participation right conditions and
claims of creditors of other financing instruments which are subordinated in case of insolvency proceedings and a liquidation of the
COMPANY. If the COMPANY does not prepare its
financial statements on the START DATE in accordance with the principles of the German
Commercial Code, but e.g. the International Financial Reporting Standards (IFRS), an
equivalent calculation shall be effected (in case
IFRS is applicable, unless otherwise agreed
with the CREDITOR : ratio of the results before
income taxes, extraordinary expenses and income and the result to which other shareholders
are entitled to the net sales). If the C OMPANY
changes its accounting principles to principles
deviating from the principles of the German
Commercial Code during the term of these provisions, a reconciliation shall be effected with
the consent of the CREDITOR to the principles
then applied by the COMPANY on the basis of
the applicable accounting principles and with
the objective of establishing an equivalent calculation method. The RETURN ON SALES shall in
each case be calculated on the basis of the consolidated financial statements (§ 14.2) of the
COMPANY delivered pursuant to § 8.1 or, if such
consolidated financial statements are not to be
prepared pursuant to § 14.2, on the basis of the
consolidated financial statements of the
COMPANY delivered pursuant to § 8.1.
(c)
(c)
Die VARIABLE VERGÜTUNG ist jeweils am 15.
Kalendertag nach der Übersendung des Jahresund Konzernabschlusses nach Maßgabe des
§ 8.1 durch das UNTERNEHMEN zur Zahlung
fällig. Ist dieser Tag kein GESCHÄFTSTAG, so ist
die VARIABLE VERGÜTUNG am darauffolgenden
GESCHÄFTSTAG zur Zahlung fällig.
(d) Im Falle von Meinungsverschiedenheiten über
die Höhe der UMSATZRENDITE kann der
GLÄUBIGER einen unabhängigen Wirtschaftsprüfer mit deren Bestimmung und hierzu gege-
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The FLOATING REMUNERATION shall in each
case become due on the 15 th calendar day following the delivery of the unconsolidated and
consolidated financial statements by the
COMPANY pursuant to § 8.1. If this day is not a
BUSINESS DAY, the FLOATING REMUNERATION
shall become due on the next following
BUSINESS DAY.
(d) In case of any disputes concerning the amount
of the RETURN ON SALES, the CREDITOR may
appoint an independent auditor in order to determine this amount and, where appropriate, to
benenfalls der Wahrnehmung von Prüfungsrechten nach § 8.2 beauftragen. Die Feststellungen des Wirtschaftsprüfers sind für den
GLÄUBIGER und das UNTERNEHMEN verbindlich, sofern diese nicht offensichtlich unrichtig
sind.
(e)
exercise the audit rights pursuant to § 8.2. The
findings of the auditor shall be binding on the
CREDITOR and the COMPANY unless manifestly
incorrect.
Fällt der ANFANGSTERMIN nicht auf einen Tag,
zu dem das Geschäftsjahr des UNTERNEHMENS
beginnt, so steht dem GLÄUBIGER die VARIABLE
VERGÜTUNG für dieses Geschäftsjahr zeitanteilig für den Zeitraum vom ANFANGSTERMIN bis
zum Ultimo dieses Geschäftsjahres zu. Für das
Geschäftsjahr des UNTERNEHMENS, in den der
ENDFÄLLIGKEITSTERMIN (§ 3) fällt, erhält der
GLÄUBIGER zeitanteilig die für das vorausgegangene Geschäftsjahr ermittelte V ARIABLE
VERGÜTUNG für den Zeitraum vom ersten Tag
dieses
Geschäftsjahres
bis
zum
ENDFÄLLIGKEITSTERMIN .
2.4 Zusätzliche Vergütung bei Verzug
(e)
If the START DATE does not coincide with the
day on which the financial year of the
COMPANY commences, the CREDITOR shall be
entitled to the FLOATING REMUNERATION for
this financial year pro rata temporis for the period from the START DATE to the end of this financial year. As regards the financial year of
the COMPANY in which the FINAL M ATURITY
DATE (§ 3) falls, the CREDITOR shall receive the
FLOATING REMUNERATION determined for the
preceding financial year pro rata temporis for
the period from the first day of this financial
year to the FINAL M ATURITY DATE.
2.4 Additional Remuneration in Case of Default
Für den Fall, dass das UNTERNEHMEN einen fälligen
Anspruch auf VERGÜTUNG verspätet bedient, ist an
den GLÄUBIGER jeweils eine zusätzliche Vergütung
zu entrichten. Diese beträgt 4% p.a. berechnet auf
den NENNBETRAG des GENUSSRECHTS zeitanteilig für
den Zeitraum der Säumnis.
If the COMPANY defaults on a due REMUNERATION
claim, it shall in each case pay to the CREDITOR an
additional remuneration. The additional remuneration amounts to 4% p.a. of the NOMINAL AMOUNT of
the PARTICIPATION RIGHT calculated pro rata temporis for the period of default.
2.5 Calculation of the Remuneration
2.5 Berechnung der Vergütung
Claims to FIXED or FLOATING REMUNERATION shall
be determined on the basis of the actually elapsed
days in the respective calculation period divided by
360. With respect to this calculation, the first, but not
the last day of the respective period shall be included.
Ansprüche auf FIXE oder VARIABLE VERGÜTUNG
werden auf der Grundlage der tatsächlich vergangenen Tage im betreffenden Berechnungszeitraum dividiert durch 360 ermittelt. Bei der Berechnung ist
jeweils der erste, nicht aber der letzte Tag des betreffenden Zeitraums mitzuzählen.
§3
Term of the Participation Right
§3
Laufzeit des Genussrechts
Das GENUSSRECHT wird an dem ZAHLUNGSTERMIN
zur Rückzahlung gemäß § 5 fällig, der auf den Ablauf des siebten Jahres gerechnet ab dem
ANFANGSTERMIN folgt (der ENDFÄLLIGKEITSTERMIN).
The Participation RIGHT shall become due for repayment pursuant to § 5 on the PAYMENT DATE following the expiration of the seventh year calculated
from the START DATE (the FINAL MATURITY DATE).
§4
Kündigung
§4
Termination
4.1 Das UNTERNEHMEN und der GLÄUBIGER sind berechtigt, diese Vereinbarung aus wichtigem Grund jederzeit und (vorbehaltlich § 4.4) mit sofortiger Wirkung
zu kündigen (AUßERORDENTLICHE KÜNDIGUNG).
4.1 The COMPANY and the CREDITOR shall be entitled to
terminate this agreement for good cause at any time
and (subject to § 4.4) with immediate effect
(EXTRAORDINARY TERMINATION).
4.2 Wichtige Gründe für die AUßERORDENTLICHE
KÜNDIGUNG des GLÄUBIGERS stellen insbesondere
dar:
4.2 Good cause for an EXTRAORDINARY TERMINATION by
the CREDITOR shall be in particular:
(i)
die nicht
vollständige
Erfüllung der
Zahlungsverpflichtungen des UNTERNEHMENS
gemäß dieser Genussrechtsvereinbarung an
zwei aufeinander folgenden ZAHLUNGS-
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(i)
the incomplete performance of the payment
obligations of the COMPANY under this participation right agreement on two consecutive
payment dates;
TERMINEN ;
(ii) der Verzug des UNTERNEHMENS in Bezug auf
seine Zahlungsverpflichtungen gemäß dieser
Genussrechtsvereinbarung in einem Gesamtbetrag von mindestens der halben jährlichen
FIXEN VERGÜTUNG;
(ii) the default of the COMPANY with respect to its
payment obligations under this participation
right agreement in an aggregate amount of at
least half of the annual FIXED REMUNERATION
(without any increase pursuant to § 2.5);
(iii) die fehlende Autorisierung zur Begründung des
GENUSSRECHTS durch die zuständigen Organe
des UNTERNEHMENS;
(iii) lack of authorisation by the competent bodies
of the COMPANY to constitute the
PARTICIPATION RIGHT;
(iv) eine oder mehrere Zusicherungen des
UNTERNEHMENS in § 7 sind unzutreffend, es sei
(iv) one or more of the representations made by the
COMPANY in § 7 are incorrect, unless this fact is
IMMATERIAL.
Ein Umstand ist UNWESENTLICH, wenn (aa) die
von der BONITÄTSBEURTEILUNGSAGENTUR
(§ 10.4)
vorgenommene
BONITÄTSBEUR TEILUNG (§ 10.4) aufgrund dieses Umstands
nicht herabgestuft wird und (bb) die Rechtsstellung und die wirtschaftlichen Interessen des
GLÄUBIGERS durch diesen Umstand nicht wesentlich und nachhaltig beeinträchtigt werden;
A circumstance is IMMATERIAL if (aa) the
CREDIT APPRAISAL (§ 10.4) prepared by the
CREDIT APPRAISAL AGENCY (§ 10.4) is not
downgraded for reason of this circumstance and
(bb) the legal position as well as the economic
interests of the CREDITOR are not materially and
permanently affected by this circumstance;
(v)
die Verletzung einer Verpflichtung des
UNTERNEHMENS aus den §§ 8-10. Im Falle einer
Verletzung von § 8.1 ist eine Kündigung nur
dann zulässig, wenn das UNTERNEHMEN der
betreffenden Verpflichtung auch innerhalb von
zwei Wochen nach Aufforderung durch den
GLÄUBIGER nicht nachgekommen ist. In den
übrigen Fällen ist eine Kündigung nur dann
zulässig, wenn das UNTERNEHMEN der Verletzung innerhalb einer Woche nach Aufforderung
durch den GLÄUBIGER nicht abgeholfen hat, es
sei denn, dieser Umstand ist UNWESENTLICH;
(v)
the breach of an obligation of the C OMPANY
pursuant to §§ 8-10. In case of a breach of
§ 8.1, termination shall be permissible only if
the COMPANY continues not to fulfill the respective obligation within two weeks upon demand by the CREDITOR. In all other cases, a
termination shall be permissible only if the
COMPANY has not remedied the breach within
one week upon demand by the CREDITOR,
unless this fact is IMMATERIAL;
(vi) der Eintritt eines KONTROLLWECHSELS (wie
nachstehend definiert) oder die Vornahme einer
Maßnahme des UNTERNEHMENS, die außerhalb
seines ordentlichen und üblichen Geschäftsbetriebs liegt (wie insbesondere die vollständige
oder teilweise Einstellung des von dem
UNTERNEHMEN betriebenen Geschäftsbetriebs,
die Übertragung des operativen Geschäfts des
UNTERNEHMENS auf verbundene Unternehmen
oder Dritte), oder der Abschluss eines Beherrschungs- und/oder Gewinnabführungsvertrags
als beherrschtes Unternehmen ohne vorherige
schriftliche Zustimmung des GLÄUBIGERS, es
sei denn, dieser Umstand ist UNWESENTLICH.
(vi) the occurrence of a C HANGE OF CONTROL (as
defined below) or an action taken by the
COMPANY outside of its ordinary and usual
business operations (such as, in particular, the
complete or partial discontinuance of the
COMPANY 's operations, the transfer of the operational business of the COMPANY to affiliated
companies or to third parties), or conclusion of
a domination agreement and/or profit transfer
agreement with the COMPANY being the dominated party, without the prior written consent of
the CREDITOR, unless this fact is IMMATERIAL.
Ein KONTROLLWECHSEL liegt vor, wenn eine
Partei erstmalig direkt oder indirekt eine Mehrheitsbeteiligung (§ 16 AktienG) an dem
UNTERNEHMEN erwirbt oder durch Veräußerung
bzw. Belastung der Geschäftsanteile an dem
UNTERNEHMEN oder durch Umwandlung (§ 1
Abs. 1 UmwG) eine vergleichbare Rechtstellung erlangt. Die erstmalige Zulassung von
Anteilen am UNTERNEHMEN zum Börsenhandel
gilt nicht als KONTROLLWECHSEL;
A CHANGE OF CONTROL means that a party acquires, for the first time, either directly or indirectly, a majority interest (§ 16 of the German
Stock Companies Act, Aktiengesetz) in the
COMPANY or obtains a comparable legal position by sale or encumbrance of shares in the
COMPANY or by a transformation (Umwandlung, § 1 para. 1 of the German Transformation
Act, Umwandlungsgesetz). The initial admission of shares in the C OMPANY to trading on a
stock exchange shall not be deemed to constitute a CHANGE OF CONTROL;
- 104 -
(vii) (aa) Ausschüttungen an oder Entnahmen durch
die Gesellschafter des U NTERNEHMENS , solange
fällige Zahlungsansprüche des GLÄUBIGERS
nicht vollständig bedient worden sind, oder (bb)
Ausschüttungen für das laufende oder das vorausgegangene Geschäftsjahr oder Entnahmen
während dieses Zeitraums, sofern aus diesem
Grund spätere Zahlungsansprüche des G LÄUBIGERS nicht
bedient
wurden.
Ist
das
UNTERNEHMEN eine Personengesellschaft, sind
Entnahmen zur Bedienung von Steuerverbindlichkeiten der Gesellschafter zulässig, die sich
im Zusammenhang mit Einkünften gemäß § 15
Abs. 1 Nr. 2 EStG aus ihrer Beteiligung an dem
UNTERNEHMEN für Veranlagungszeiträume
nach dem ANFANGSTERMIN ergeben;
(vii) (aa) distributions to or withdrawals by the
shareholders of the COMPANY for as long as due
payment claims of the CREDITOR are not discharged in full, or (bb) distributions for the current or the previous financial year or withdrawals during this period, if this causes payment
claims of the Creditor not to be discharged. If
the COMPANY has the legal form of a partnership, withdrawals made for the purpose of discharging the partners' tax liabilities in connection with income according to § 15 para. 1 no. 2
of the German Income Tax Act (Einkommensteuergesetz) resulting from a participation in
the COMPANY during assessment periods subsequent to the START DATE shall be permissible;
(viii) die Liquidation des UNTERNEHMENS; oder
(viii) the liquidation of the COMPANY ; or
(ix) die Eröffnung eines Insolvenzverfahrens über
das Vermögen des UNTERNEHMENS oder die
Abweisung der Eröffnung eines derartigen Verfahrens mangels Masse.
(ix) the opening of insolvency proceedings with respect to the assets of the C OMPANY or the dismissal of the opening of such proceedings for
lack of assets.
4.3 Eine AUßERORDENTLICHE KÜNDIGUNG nach § 4.2 (i)
oder (ii) kann von dem GLÄUBIGER während der
Dauer einer UNTERNEHMENSKRISE nicht ausgesprochen werden. Endet die UNTERNEHMENSKRISE , so ist
das Kündigungsrecht bei Vorliegen der Voraussetzungen des § 4.2(i) oder (ii) wieder ausübbar. Die
Parteien dieser Vereinbarung sind sich darüber einig,
dass der Eintritt einer wesentlichen Verschlechterung
in den Vermögensverhältnissen des U NTERNEHMENS
den GLÄUBIGER nicht zur AUßERORDENTLICHEN
KÜNDIGUNG berechtigt, wenn nicht zugleich einer
der in § 4.2 genannten oder sonstige wichtige Gründe
vorliegen. Sollte sich herausstellen, dass die Zahlungen auf das GENUSSRECHT nicht steuerlich als Betriebsausgaben
abzugsfähig sind,
hat
das
UNTERNEHMEN kein außerordentliches Kündigungsrecht.
4.3 The right to an EXTRAORDINARY TERMINATION according to § 4.2 (i) or (ii) may not be exercised by
the CREDITOR during a COMPANY CRISIS. If the
COMPANY CRISIS terminates, the right to termination
may be exercised again subject to the requirements
of § 4.2(i) or (ii). The parties to this agreement acknowledge that a material deterioration of the economic condition of the COMPANY does not entitle the
CREDITOR to an EXTRAORDINARY TERMINATION,
unless there are concurrently circumstances constituting good cause either with the meaning of § 4.2 or
in general. The COMPANY shall not be entitled to an
EXTRAORDINARY TERMINATION if payments made on
the PARTICIPATION RIGHT are not tax-deductible as
business expenses.
4.4 (a)
4.4 (a)
Der GLÄUBIGER hat die VORRANGIGEN
KREDITGEBER binnen einer Woche nach Ablauf
der in Absatz (b) genannten Wochenfrist
schriftlich von einer AUßERORDENTLICHEN
KÜNDIGUNG zu unterrichten. Hierzu hat er vom
UNTERNEHMEN die Mitteilung der VORRANGIGEN KREDITGEBER gemäß Absatz (c) zu verlangen.
(b) VORRANGIGER KREDITGEBER ist jeder Bankgläubiger des UNTERNEHMENS mit Darlehensforderungen gegen das UNTERNEHMEN in Höhe
von
insgesamt
mindestens
10%
des
NENNBETRAGS. Hierbei sind lediglich Darlehensforderungen zu berücksichtigen, die gegenüber dem GENUSSRECHT vorrangig sind. Als
VORRANGIGE KREDITGEBER gelten nur die
Bankgläubiger, die entweder (aa) das
UNTERNEHMEN auf Verlangen des GLÄUBIGERS
binnen einer Woche gemäß nachstehendem Absatz (c) offen gelegt hat oder (bb) die dem
GLÄUBIGER die Angaben gemäß nachstehendem Absatz (c) bis zum Ablauf dieser Wochenfrist selbst mitgeteilt haben.
- 105 -
The CREDITOR shall give written notice of an
Extraordinary TERMINATION to the SENIOR
LENDERS within one week after expiration of
the one week period provided for in para. (b).
For this purpose, it shall require the C OMPANY
to notify the SENIOR LENDERS in accordance
with para. (c).
(b) SENIOR LENDER means each bank creditor of
the COMPANY with loan claims against the
COMPANY in the aggregate amount of at least
10% of the NOMINAL AMOUNT. For this purpose, loan claims shall only be taken into account if they are senior to the P ARTICIPATION
RIGHT. Only bank creditors (aa) which the
COMPANY has disclosed within one week upon
demand of the CREDITOR in accordance with
the following para. (c) or (bb) which have given
notice of the information set out in the following para. (c) to the CREDITOR until the expiration of this one week period, shall be deemed to
constitute SENIOR LENDERS.
(c)
Das UNTERNEHMEN hat dem GLÄUBIGER nach
Zugang einer Kündigungserklärung oder auf
dessen Verlangen in der in Absatz (b) genannten Wochenfrist die Namen und Adressen aller
VORRANGIGEN KREDITGEBER sowie die für die
Beurteilung der Anforderungen des Absatzes
(b) Sätze 1-2 relevanten Umstände schriftlich
mitzuteilen.
(c)
Upon receipt of a termination notice or upon request of the CREDITOR, the Company shall
within the one week period according to para.
(b) notify to the CREDITOR in writing the names
and addresses of all S ENIOR LENDERS as well as
the information relevant for the assessment of
the requirements set out in para. (b) sentences
1-2.
(d) Die Kündigungserklärung des G LÄUBIGERS
wird in den Fällen der § 4.2(i) bis (vii) wirksam, wenn die WARTEFRIST verstrichen ist. Die
WARTEFRIST beginnt an dem Tag, an dem
sämtliche VORRANGIGEN KREDITGEBER von der
AUßERORDENTLICHEN KÜNDIGUNG unterrichtet
worden sind. Der GLÄUBIGER hat dem
UNTERNEHMEN den Beginn und das Ende der
WARTEFRIST unverzüglich mitzuteilen.
(d) Any termination notice by the CREDITOR pursuant to § 4.2(i) to (vii) shall take effect upon the
expiration of the WAITING PERIOD. The
WAITING PERIOD starts on the day on which all
SENIOR LENDERS have been informed of the
EXTRAORDINARY TERMINATION . The CREDITOR
shall give notice to the COMPANY of the beginning and of the end of the WAITING PERIOD
without undue delay.
Die WARTEFRIST beträgt 90 Kalendertage. Im
Fall einer Kündigung gemäß § 4.2(i) oder (ii)
beträgt die WARTEFRIST 30 Kalendertage.
The WAITING PERIOD amounts to 90 calendar
days. In case of a termination pursuant to
§ 4.2(i) or (ii), the WAITING PERIOD amounts to
30 calendar days.
In den Fällen des § 4.2(viii) und (ix) wird die
Kündigungserklärung mit Zugang beim
UNTERNEHMEN wirksam.
In the cases of § 4.2 (viii) and (ix), the termination notice shall take effect upon receipt by the
COMPANY.
(e)
(e)
Der GLÄUBIGER darf nach Abgabe der Kündigungserklärung während einer etwaigen
WARTEFRIST Zahlungsansprüche gegen das
UNTERNEHMEN nicht durch Zwangsvollstreckungsmaßnahmen oder durch die Einleitung
eines Insolvenzverfahrens durchsetzen.
After having given a termination notice, the
Creditor shall not enforce its payment claims
against the COMPANY during WAITING PERIOD
(if any) by virtue of compulsory enforcement or
the filing for insolvency proceedings.
4.5 Ein ordentliches Kündigungsrecht der Vertragsparteien ist ausgeschlossen.
4.5 The parties shall have no right to an ordinary
termination of this agreement.
§5
Rückzahlung
§5
Repayment
5.1 Das GENUSSRECHT wird am ENDFÄLLIGKEITSTERMIN ,
im Falle einer AUßERORDENTLICHEN KÜNDIGUNG am
Wirksamkeitstag der Kündigungserklärung zur
Rückzahlung fällig (RÜCKZAHLUNGSTERMIN). Eine
vollständige oder teilweise Rückzahlung des
GENUSSRECHTS vor dem RÜCKZAHLUNGSTERMIN ist
ausgeschlossen.
on the FINAL MATURITY DATE and, in case of an
EXTRAORDINARY TERMINATION, on the day on which
the termination notice takes effect (REPAYMENT
DATE). A complete or partial repayment of the
PARTICIPATION RIGHT prior to the REPAYMENT DATE
shall be excluded.
5.2 Das GENUSSRECHT ist am RÜCKZAHLUNGSTERMIN in
Höhe des NENNBETRAGS zuzüglich der bis zu diesem
Datum aufgelaufenen Ansprüche auf VERGÜTUNG
sowie sonstiger geschuldeter Beträge aus dieser Genussrechtsvereinbarung zu tilgen.
5.2 The PARTICIPATION RIGHT shall be redeemed on the
REPAYMENT DATE in the REPAYMENT AMOUNT plus
REMUNERATION claims accrued up to this date and
other amounts due under this participation right
agreement.
5.3 Tritt der RÜCKZAHLUNGSTERMIN vor dem
ENDFÄLLIGKEITSTERMIN ein, hat das UNTERNEHMEN
(mit Ausnahme im Falle einer AUßERORDENTLICHEN
KÜNDIGUNG des UNTERNEHMENS aufgrund eines Verschuldens des GLÄUBIGERS) zusätzlich den
ZUSÄTZLICHEN RÜCKZAHLUNGSBETRAG zu entrichten; dieser berechnet sich auf der Grundlage der
abgezinsten Differenz zwischen der Fixen
VERGÜTUNG bis zum ENDFÄLLIGKEITSTERMIN und
5.3 If the REPAYMENT DATE occurs prior to the F INAL
MATURITY DATE, the COMPANY (except in the case
of an EXTRAORDINARY TERMINATION by the
COMPANY due to fault of the CREDITOR) shall, in addition, be obliged to pay the ADDITIONAL
REPAYMENT AMOUNT. This amount shall be calculated based on the discounted difference between the
FIXED REMUNERATION accruing until the FINAL
MATURITY DATE and the interest amount of a rein-
- 106 -
den Zinsen einer laufzeitkongruenten Wiederanlage
des NENNBETRAGS in Hypothekenpfandbriefen sowie
in entsprechender Anwendung der höchstrichterlichen Grundsätze zur Vorfälligkeitsentschädigung.
Der ZUSÄTZLICHE RÜCKZAHLUNGSBETRAG wird vom
GLÄUBIGER berechnet und dem UNTERNEHMEN mitgeteilt.
vestment of the NOMINAL AMOUNT in mortgage
bonds at matching maturities as well as in analogous
application of the principles of prepayment penalties
as established by the German Federal Supreme
Court. The ADDITIONAL REPAYMENT AMOUNT shall
be calculated by the CREDITOR and notified to the
COMPANY.
5.4 Für den Fall, dass das UNTERNEHMEN den
NENNBETRAG am RÜCKZAHLUNGSTERMIN nicht vollständig an den GLÄUBIGER zahlt, ist der jeweils rückständige Teil des geschuldeten Betrags für den Zeitraum vom RÜCKZAHLUNGSTERMIN bis zum Zeitpunkt
der tatsächlichen vollständigen Zahlung des geschuldeten Betrages in Höhe von 12% p.a. zu verzinsen.
5.4 If the COMPANY does not pay the NOMINAL AMOUNT
completely to the CREDITOR at the REPAYMENT
DATE, the respective amount in arrears shall accrue
interest at a rate of 12% p.a. for the period between
the REPAYMENT DATE and the actual complete payment of the amount owed.
§6
Rechtsnatur des Genussrechts; aufschiebend bedingter
Rangrücktritt
§6
Legal Nature of the Participation Right; Subordination
Subject to a Condition Precedent
6.1 Das GENUSSRECHT gewährt ausschließlich schuldrechtliche
Ansprüche
gegenüber
dem
UNTERNEHMEN . Es begründet kein Gesellschaftsverhältnis zwischen dem UNTERNEHMEN und dem
GLÄUBIGER welcher Art auch immer und keine Gesellschafterrechte an dem U NTERNEHMEN , insbesondere keine Teilnahme-, Mitwirkungs- und Stimmrechte in den Gesellschafterversammlungen oder Bezugsrechte auf neue Anteile. Dem GLÄUBIGER steht
kein Weisungsrecht gegenüber der Geschäftsleitung
zu.
6.1 The PARTICIPATION RIGHT shall only grant obligatory
claims (schuldrechtliche Ansprüche) against the
COMPANY. It shall neither establish a company relationship (Gesellschaftsverhältnis) of any kind whatsoever between the COMPANY and the CREDITOR nor
shareholders' rights in the C OMPANY, in particular no
rights to attend, to participate or to vote in the shareholders' meetings and subscription rights to new
shares. The CREDITOR shall have no right to instruct
the management of the COMPANY.
6.2 (a)
6.2 (a)
Der GLÄUBIGER und das UNTERNEHMEN vereinbaren unter der aufschiebenden Bedingung,
dass das Insolvenzverfahren über das Vermögen des UNTERNEHMENS, die Liquidation des
UNTERNEHMENS bzw. die UNTERNEHMENSKRISE
tatsächlich eingetreten ist, dass der GLÄUBIGER
in der Weise im Rang zurücktritt, dass im Falle
eines Insolvenzverfahrens über das Vermögen
oder der Liquidation des UNTERNEHMENS sowie
für die Dauer einer UNTERNEHMENSKRISE die
Forderungen aus dem GENUSSRECHT nur nach
Befriedigung aller Gesellschaftsgläubiger und
zugleich mit den Einlagenrückgewähransprüchen der Gesellschafter des U NTERNEHMENS
(§ 199 InsO) oder Ansprüchen der Gesellschafter auf Auskehrung des Liquidationsüberschusses befriedigt werden.
Subject to the condition precedent that insolvency proceedings with respect to the assets of
the COMPANY, the liquidation of the COMPANY
or a COMPANY CRISIS shall have actually commenced, the CREDITOR and the COMPANY
hereby agree that the CREDITOR 'S rights shall be
subordinated in such a way that, in case of
insolvency proceedings with respect to the assets of the COMPANY or its liquidation as well
as during a COMPANY CRISIS, the claims under
the PARTICIPATION RIGHT shall be satisfied only
after the discharge of all claims of the
COMPANY 'S creditors and pari passu with the
claims of the shareholders of the C OMPANY to
restitution of contributions (§ 199 of the German Insolvency Act, Insolvenzordnung) or to
distribution of the liquidation proceedings.
(b) Eine UNTERNEHMENSKRISE liegt dann vor,
wenn (i) bei Ansatz der Forderungen aus dem
GENUSSRECHT eine Zahlungsunfähigkeit oder
Überschuldung (§§ 17, 19 InsO) des U NTERNEHMENS bestünde und (ii) das UNTERNEHMEN
dies durch die Vorlage einer Bescheinigung
seines Abschlussprüfers nachweist. Die
UNTERNEHMENSKRISE endet, wenn die in (i) genannten Voraussetzungen nicht mehr vorliegen.
Das UNTERNEHMEN hat nach Beginn einer
UNTERNEHMENSKRISE deren Fortbestehen jeweils gemäß Satz 1(ii) dieses Absatzes (b) zum
ersten GESCHÄFTSTAG eines Kalenderquartals
nachzuweisen.
(b) A COMPANY CRISIS shall occur if, (i) when
accounting for the claims under the
PARTICIPATION RIGHT, an illiquidity or overindebtedness (§§ 17, 19 of the German Insolvency Act) of the COMPANY were to occur and
(ii) the COMPANY provides proof thereof by
furnishing a certificate of its auditor. The
COMPANY CRISIS shall terminate if the requirements provided for in (i) no longer exist. Following the commencement of a COMPANY
CRISIS, the COMPANY shall prove its continuation in accordance with sentence 1(ii) of this
para. (b) on the first B USINESS DAY of each calendar quarter.
(c)
(c)
Dem UNTERNEHMEN wird die Option eingeräumt, durch einseitige schriftliche Erklärung
- 107 -
The COMPANY shall have the option to waive
the effects of the qualified subordination agreed
gegenüber dem GLÄUBIGER auf die Wirkungen
des in Absatz (a) vereinbarten qualifizierten
Rangrücktritts zu verzichten. Mit Ausübung
dieser Option tritt der GLÄUBIGER in der Weise
im Rang zurück, dass im Falle eines Insolvenzverfahrens über das Vermögen oder der Liquidation des UNTERNEHMENS sowie für die Dauer
einer UNTERNEHMENSKRISE die Forderungen
aus dem GENUSSRECHT nur nach Befriedigung
aller Gesellschaftsgläubiger aber vorrangig vor
den Einlagenrückgewähransprüchen der Gesellschafter des UNTERNEHMENS (§ 199 InsO) oder
Ansprüchen der Gesellschafter auf Auskehrung
des Liquidationsüberschusses befriedigt werden.
upon in para. (a) by means of an unilateral
written declaration towards the C REDITOR.
Upon exercising this option, the CREDITOR shall
be subordinated in such a way that, in case of
insolvency proceedings relating to the assets of
the COMPANY or its liquidation as well as during a COMPANY CRISIS, the claims under the
PARTICIPATION RIGHT shall be satisfied only
after the discharge of all claims of the
COMPANY 'S creditors but prior to the discharge
of the claims of the shareholders of the
COMPANY to restitution of contributions (§ 199
of the German Insolvency Act) or to distribution of the liquidation proceedings.
6.3 Das GENUSSRECHT gewährt keinen Anteil an einem
nach Begleichung der Ansprüche aus dem
GENUSSRECHT verbleibenden Liquidationsüberschuss.
6.3 The PARTICIPATION RIGHT shall not grant a claim to
any liquidation surplus which may remain after settlement of the claims under the P ARTICIPATION
RIGHT.
§7
Zusicherungen des Unternehmens
§7
Representations of the Company
The COMPANY hereby makes the representations and
warranties to the CREDITOR set out in Annex 2 as at
the START DATE in the form of an independent guarantee (selbstständiges Garantieversprechen) pursuant to § 311 of the German Civil Code.
Das UNTERNEHMEN gibt hiermit dem GLÄUBIGER per
ANFANGSTERMIN die in Anlage 1 aufgeführten Zusicherungen in Form eines selbstständigen Garantieversprechens gemäß § 311 BGB ab.
§8
Informationsrechte; Vertraulichkeit
§8
Information Rights; Confidentiality
8.1 Das UNTERNEHMEN hat dem GLÄUBIGER bis zur
Beendigung dieser Vereinbarung die testierten Jahres- und Konzernabschlüsse des U NTERNEHMENS
nebst Lage- und Konzernlagebericht sowie den Berichten des Abschlussprüfers unverzüglich nach der
Feststellung der Abschlüsse, spätestens jedoch sechs
Monate nach Ablauf des betreffenden Geschäftsjahres jeweils in Kopie auf seine Kosten zu übersenden.
8.1 The COMPANY shall, until the expiration of this
agreement and at its own expense, deliver to the
CREDITOR a copy of the certified unconsolidated and
consolidated financial statements of the C OMPANY
together with management reports and management
reports for the group and the auditor's reports immediately upon approval of the financial statements, but
in no event later than six months after the end of the
respective financial year.
8.2 Falls der Bestätigungsvermerk des Abschlussprüfers
zum Jahres- oder Konzernabschluss lediglich eingeschränkt erteilt oder versagt wird oder aus anderen
Gründen Zweifel an der Ordnungsmäßigkeit des Jahres- oder Konzernabschlusses bestehen, so ist der
GLÄUBIGER berechtigt, den betreffenden Abschluss
auf Kosten des UNTERNEHMENS von einem unabhängigen Wirtschaftsprüfer prüfen zu lassen. Das
UNTERNEHMEN ist in diesem Fall verpflichtet, sämtliche hierfür erforderlichen Informationen und Unterlagen zur Verfügung zu stellen. Ergibt sich als Ergebnis der Prüfung eine höhere UMSATZRENDITE , so
schuldet das UNTERNEHMEN die unverzügliche Zahlung einer entsprechend erhöhten VARIABLEN
VERGÜTUNG.
8.2 If the auditor's certificate for the unconsolidated or
consolidated financial statements is issued with restrictions only or if it is denied or if there are doubts
in respect of the accuracy of the unconsolidated or
consolidated financial statements for other reasons,
the CREDITOR shall be entitled to arrange for an examination of the relevant financial statements by an
independent auditor at the expense of the C OMPANY.
In this case, the COMPANY shall make available all
information and documents necessary for this purpose. If a higher balance sheet profit is determined as
a result of the examination, the C OMPANY shall be
obliged to pay an accordingly increased F LOATING
REMUNERATION without undue delay.
8.3 Das UNTERNEHMEN hat nach Kenntniserlangung den
GLÄUBIGER unverzüglich (aa) über einen bevorstehenden oder eingetretenen KONTROLLWECHSEL sowie
(bb) über alle Vorfälle zu informieren, die eine
schwächere
BONITÄTSBEURTEILUNG
des
UNTERNEHMENS durch die BONITÄTSBEURTEILUNGS-
8.3 The COMPANY shall inform the CREDITOR promptly
upon becoming aware thereof (aa) of a forthcoming
or implemented CHANGE OF CONTROL and (bb) of all
events which may lead to a lower CREDIT APPRAISAL
of the COMPANY by the CREDIT APPRAISAL AGENCY
or could be of material importance for the legal
- 108 -
bewirken oder von wesentlicher Bedeutung
für die Rechtsstellung oder das wirtschaftliche Interesse des GLÄUBIGERS sein könnten.
position or the economic interest of the CREDITOR.
AGENTUR
8.4 Der GLÄUBIGER ist hinsichtlich sämtlicher ihm vom
UNTERNEHMEN oder auf dessen Veranlassung im Zusammenhang mit dem GENUSSRECHT überlassener
Informationen zur Verschwiegenheit verpflichtet, mit
Ausnahme von Informationen, die öffentlich bekannt
sind, über die er bereits vor dem Beginn der Gespräche über den Abschluss dieser Genussrechtsvereinbarung verfügte, die ihm von Dritten ohne Verletzung von Vertraulichkeitspflichten zugänglich gemacht werden, die er zur Verfolgung seiner Ansprüche aus der Genussrechtsvereinbarung offenlegt oder
die aufgrund gesetzlicher, behördlicher oder gerichtlicher Anforderungen offenzulegen oder mitzuteilen
sind. Der GLÄUBIGER ist berechtigt, vertraulich zu
behandelnde Informationen an seine Vertragspartner
(einschließlich BONITÄTSBEURTEILUNGSAGENTUREN )
im Zusammenhang mit der Verwaltung der Genussrechtsvereinbarung oder einer zur Refinanzierung
des GENUSSRECHTS begebenen Anleihe bzw. einer
sonstigen Refinanzierung der Genussrechtsvereinbarung weiterzugeben, sofern er die Vertraulichkeit
in angemessener Weise sicherstellt. Der G LÄUBIGER
ist berechtigt, anonymisierte Informationen über die
Erfüllung
der
Zahlungsund
sonstigen
Vertragspflichten durch das U NTERNEHMEN und die
sich aus der Genussrechtsvereinbarung ergebenden
Folgen zur Erstellung von Investoreninformationen
für die Anleihegläubiger zu verwenden und zu
veröffentlichen. Das UNTERNEHMEN wird dem
GLÄUBIGER folgende Informationen zur Veröffentlichung in dem Emissionsprospekt der Anleihe
bereitstellen: (i) eine Selbstdarstellung des U NTERNEHMENS und (ii) das Logo des UNTERNEHMENS .
Ferner
stimmt
das
UNTERNEHMEN
einer
Veröffentlichung der Kennzahlen, die auf Anlage 2
basieren, nach Moody's KMV Risc Calc in
anonymisierter Form zu. Die Veröffentlichung in
dem Emissionsprospekt wird voraussichtlich die
Kennzahlen in Relation zu Vergleichsziffern darstellen.
8.4 The CREDITOR shall maintain confidential all
information provided or caused to be provided to him
by the COMPANY in connection with the
PARTICIPATION RIGHT, unless the information is publicly known, has already been known to the
CREDITOR before the commencement of negotiations
in respect of the conclusion of this participation right
agreement, is disclosed to him by third parties without breach of any confidentiality obligations, is disclosed by the CREDITOR in pursuance of its claims
under the participation right agreement or is to be
disclosed or communicated due to statutory, public
authorities' or judicial requirements. The CREDITOR
shall be entitled to furnish information which is to be
maintained confidential to its contract counterparties
(including CREDIT APPRAISAL AGENCIES) in
connection with the administration of the
participation right agreement or notes issued for the
purpose of refinancing the P ARTICIPATION RIGHT or,
as the case may be, another refinancing of the
participation right agreement, provided that it
ensures confidentiality in an adequate manner. The
CREDITOR shall be entitled to use anonymous
information relating to the performance of payment
obligations and other contractual obligations by the
COMPANY and the consequences arising therefrom
under the participation right agreement for the
preparation and publication of investor reports to the
noteholders. The COMPANY shall make available to
the CREDITOR the following information to be
published in the issue prospectus of the notes: (i) a
profile of the COMPANY and (ii) the logo of the
COMPANY. Furthermore, the COMPANY agrees to the
publication of the key ratios based on Annex 2
according to Moody's KMV Risc Calc in an
anonymous form. The publication in the issue
prospectus is expected to display the key ratios in
relation to comparison numbers.
§9
Zusätzliche Informationsrechte
§9
Additional Information Rights
Bonitätsver-
9.1 Additional Information Rights in Case of Deterioration of Creditworthiness
Wenn und solange das UNTERNEHMEN von Moody's
KMV eine BONITÄTSBEURTEILUNG in oder unterhalb
der Kategorie "Ba2.edf" oder eine entsprechende
BONITÄTSBEURTEILUNG einer anderen BONITÄTSBEURTEILUNGSAGENTUR erhält, kann der GLÄUBIGER
die nachfolgenden zusätzlichen Informationsrechte
ausüben:
If and as long as the COMPANY receives a CREDIT
APPRAISAL of the category of "Ba2.edf" or below
from Moody's KMV or an equivalent C REDIT
APPRAISAL from another CREDIT APPRAISAL
AGENCY, the CREDITOR shall have the following additional information rights:
(i)
(i)
9.1 Zusätzliche Informationsrechte bei
schlechterung
Einsichtnahme (sowie auf Wunsch des
GLÄUBIGERS die kostenfreie Übermittlung von
Kopien) in:
(aa) interne Finanzberichte (einschließlich der
Liquiditätsplanung) des UNTERNEHMENS
jeweils unverzüglich nach Aufforderung;
- 109 -
Inspection (as well as the delivery of copies
free of charge upon the request of the
CREDITOR) of:
(aa) internal financial reports (including
liquidity planning) of the COMPANY immediately upon demand;
(bb) Protokolle und Beschlüsse der Geschäftsführung der letzten zwölf Monate sowie
sämtliche Protokolle und Beschlüsse des
Aufsichtsrats, des Beirats sowie der Gesellschafter- bzw. Hauptversammlung
(jeweils soweit einschlägig und rechtlich
zulässig) jeweils binnen zwei Wochen
nach Aufforderung.
(bb) minutes and resolutions of the management board of the last twelve months and
all minutes and resolutions of the supervisory board, the advisory council and the
shareholders' meeting (in each case to the
extent applicable and permissible by law),
in each case within two weeks upon demand.
(ii) Auf Verlangen des GLÄUBIGERS wird das
UNTERNEHMEN binnen zwei Wochen Gespräche
ermöglichen mit:
(ii) Within two weeks upon demand by the
CREDITOR, the Company shall provide the opportunity for discussions with:
(aa) der Geschäftsführung des U NTERNEHMENS
in bis zu sechs Fällen pro Kalenderjahr;
(aa) the management board of the C OMPANY
up to six times per calendar year;
(bb) den Beratern des UNTERNEHMENS (insbesondere Rechts-, Unternehmens- und
Steuerberater). Das U NTERNEHMEN wird
die betreffenden Berater hierzu soweit erforderlich von ihrer Schweigepflicht entbinden.
(bb) the advisors of the C OMPANY (in particular legal advisors, management consultants and tax advisors). To the extent necessary, the COMPANY shall release the respective advisors from their confidentiality obligations.
(iii) Beauftragung eines sog. Recovery Advisor
(voraussichtlich Ernst & Young AG
Wirtschaftsprüfungsgesellschaft),
um
die
Interessen des GLÄUBIGERS wahrzunehmen,
insbesondere um Empfehlungen bezüglich der
weiteren Vorgehensweise im Hinblick auf die
Genussrechtsvereinbarung zu erstellen.
(iii) Engagement of a so-called Recovery Advisor
(expected to be Ernst & Young AG
Wirtschaftsprüfungsgesellschaft) in order to
protect the interests of the C REDITOR, in
particular to prepare recommendations
regarding the course of action in respect of the
participation right agreement.
9.2 Extended Additional Information Rights
9.2 Erweiterte zusätzliche Informationsrechte
(a)
Unter den Voraussetzungen
Absatzes (b) kann der
Informationsrechte gemäß
nachfolgenden zusätzlichen
ausüben:
(i)
des nachstehenden
G LÄUBIGER die
§ 9.1 sowie die
Informationsrechte
Einsichtnahme in alle wesentlichen Verträge und Unterlagen sowie Zugang zu Informationen über alle wesentlichen Geschäfte des UNTERNEHMENS unverzüglich
auf Verlangen des GLÄUBIGERS.
(a)
Subject to the requirements specified in para.
(b) below, the CREDITOR may exercise the
information rights pursuant to § 9.1 as well as
the following additional information rights:
(i)
Inspection of all material contracts and
documents, as well as access to information on all material transactions of the
COMPANY without undue delay upon demand by the CREDITOR.
(ii) Monatliche Berichte der Geschäftsführung des UNTERNEHMENS, die alle wesentlichen Entwicklungen des Geschäftsbetriebs darstellen, sowie Zugang zu den
Unterlagen des UNTERNEHMENS für die
Zwecke der Prüfung der monatlichen Berichte.
(ii) Monthly reports by the management
board of the COMPANY describing all material developments of the business operations, as well as access to the files of
the COMPANY for the purpose of verifying
the monthly reports.
(iii) Sanierungsgespräche
mit
der
Geschäftsführung des UNTERNEHMENS.
Das UNTERNEHMEN wird dem GLÄUBIGER
hierzu Gelegenheit geben, bevor es derartige Gespräche mit Dritten führt, die zu
diesem Zeitpunkt keine Eigen- oder
Fremdkapitalgeber des UNTERNEHMENS
sind.
(iii) Restructuring discussions with the management board of the COMPANY. The
COMPANY shall give the CREDITOR the
opportunity to have such discussions prior
to conducting such discussions with third
parties which are not equity or debt capital investors of the COMPANY at that time.
- 110 -
(b) Dem GLÄUBIGER stehen die in vorstehendem
Absatz (a) genannten zusätzlichen Informationsrechte zu, wenn:
(i)
(b) The CREDITOR shall have the additional
information rights stated in the preceding
para. (a), if:
das UNTERNEHMEN seine Zahlungsverpflichtungen aus dieser Genussrechtsvereinbarung an zwei aufeinander folgenden
Fälligkeitsterminen nicht vollständig erfüllt,
(i)
the COMPANY does not fully discharge its
payment obligations under this participation right agreement on two consecutive
due dates;
(ii) der Gesamtbetrag der Zahlungsverpflichtungen aus dieser Genussrechtsvereinbarung, mit der sich das UNTERNEHMEN in
Verzug befindet, den Gesamtbetrag der
halben jährlichen FIXEN VERGÜTUNG erreicht oder übersteigt, oder
(ii) the aggregate amount of payment obligations under this participation right agreement on which the COMPANY defaulted
equals or exceeds the aggregate amount of
half of the annual FIXED REMUNERATION ;
or
(iii) das UNTERNEHMEN von Moody's KMV
eine BONITÄTSBEURTEILUNG in oder unterhalb der Kategorie "B1.edf" oder eine
entsprechende BONITÄTSBEURTEILUNG einer anderen BONITÄTSBEURTEILUNGS AGENTUR erhält.
(iii) the COMPANY receives a CREDIT
APPRAISAL of the category of "B1.edf" or
below from Moody's KMV or an
equivalent CREDIT APPRAISAL from
another CREDIT APPRAISAL AGENCY.
Dem GLÄUBIGER stehen diese zusätzlichen Informationsrechte zu, solange in den Fällen von (i) und (ii)
der Zahlungsverzug nicht vollständig beendet ist
oder im Falle von (iii) eine BONITÄTSBEURTEILUNG
des UNTERNEHMENS in den genannten Kategorien
fortbesteht.
The CREDITOR shall have these additional information rights in the cases of (i) or (ii), for as long as the
default in payment is not completely remedied, or in
the case of (iii), for as long as the C REDIT APPRAISAL
of the COMPANY continues to remain in the
aforementioned categories.
9.3 Das UNTERNEHMEN hat die angemessenen Kosten
des GLÄUBIGERS und von ihm eingesetzter Dritter
(einschließlich des Recovery Advisor) im Zusammenhang mit der Ausübung seiner Informationsrechte gemäß diesem § 9 zu erstatten. Der maximale
Erstattungsbetrag für die Ausübung der Informationsrechte gemäß § 9.1(iii) beträgt EUR 30.000 pro
Kalenderjahr zuzüglich MWSt und üblicher Auslagen. Ist ein Recovery Advisor beauftragt und wird in
einem Kalenderjahr der maximale Erstattungsbetrag
nicht ausgeschöpft, erhöht der verbleibende Betrag
den in den Folgejahren zur Verfügung stehenden
Maximalbetrag.
9.3 The COMPANY shall reimburse the reasonable expenses of the CREDITOR and of third parties appointed by it (including the Recovery Advisor) in
connection with the exercise of its information rights
according to this § 9. The maximum reimbursement
amount for the exercise of information rights pursuant to § 9.1(iii) shall be EUR 30,000 per calendar
year plus value-added tax and customary expenses. If
a Recovery Advisor is engaged and the maximum
reimbursement amount is not exhausted in a certain
calendar year, the remaining amount shall be added
to the maximum amount available in the following
years.
9.4 Die Informationsrechte nach Maßgabe des § 9.1 und
§ 9.2 bestehen im Rahmen ihrer jeweiligen Voraussetzungen kumulativ und zusätzlich zu den Informationsrechten aus § 8.
9.4 The information rights pursuant to § 9.1 and § 9.2
shall be available, subject to their respective requirements, cumulatively and in addition to the information rights provided for in § 8.
§ 10
Sonstige Verpflichtungen des Unternehmens
§ 10
Other Covenants of the Company
10.1 Das UNTERNEHMEN hat im gesetzlich zulässigen
Umfang Ausschüttungen oder Entnahmen von seinen
Tochterunternehmen und deren nachgelagerten verbundenen Gesellschaften zu veranlassen, wenn und
soweit dies erforderlich ist, um über hinreichende liquide Mittel zur vollständigen und pünktlichen Bedienung seiner Zahlungsverbindlichkeiten nach diesen Genussrechtsbedingungen zu verfügen. Soweit
erforderlich, hat es hierzu im gesetzlich zulässigen
Umfang Rücklagen aufzulösen und die Herstellung
der satzungs- oder gesellschaftsvertraglichen Voraussetzungen für die Ausschüttungen oder Entnahmen zu veranlassen.
10.1 The COMPANY shall to the extent legally permissible
procure distributions by or withdrawals from its subsidiaries and their downstream affiliated companies,
if and to the extent necessary to dispose of sufficient
liquid funds to fully and timely discharge its payment
obligations under this participation right agreement.
To the extent necessary for this purpose, it shall to
the extent legally permissible dissolve reserves and
procure the implementation of the prerequisites necessary for distributions or withdrawals as stipulated
by the respective articles of association or partnership agreement.
- 111 -
10.2 Das UNTERNEHMEN wird zukünftige Jahres- und
Konzernabschlüsse sowie Lageberichte und Konzernlageberichte in Übereinstimmung mit den anwendbaren gesetzlichen Bestimmungen und den allgemein anerkannten Buchführungs- und Bilanzierungsgrundsätzen unter Wahrung der formellen und
materiellen Bilanzkontinuität (einschließlich in Bezug auf Bilanzierungs- und Bewertungswahlrechte)
aufstellen, so dass diese unter Beachtung der Grundsätze ordnungsgemäßer Buchführung ein den tatsächlichen Verhältnissen entsprechendes Bild der
Vermögens-, Finanz- und Ertragslage zu dem jeweiligen Bilanzstichtag vermitteln.
10.2 The COMPANY shall prepare future unconsolidated
and consolidated financial statements as well as
management reports and management reports for the
group in accordance with the applicable legal provisions and the generally accepted bookkeeping and
accounting principles observing formal and material
continuity of accounting treatment (formelle und
materielle Bilanzkontinuität) (also with regard to discretionary accounting and valuation) in order for
these financial statements to reflect the accurate assets, financial and earnings situation on the respective date of the financial statements in compliance
with sound accounting principles.
10.3 Das UNTERNEHMEN wird Vereinbarungen und Geschäfte mit Unternehmen, die nicht in Mehrheitsbesitz (§ 16 AktienG) stehen, den Mitgliedern der Geschäftsführung oder Gesellschaftern sowie diesen
nahestehenden Personen nur zu Bedingungen schließen oder tätigen, die einem Drittvergleich standhalten (arm's length-Konditionen).
10.3 The COMPANY shall enter into agreements and
transactions with companies which are not majority
held (§ 16 of the German Stock Corporation Act),
members of the management or shareholders as well
as related persons at arm's length terms only.
10.4 Der GLÄUBIGER beabsichtigt, Moody's KMV oder
eine andere von ihm bestimmte BONITÄTSBEURTEILUNGSAGENTUR mit der jährlichen nicht-öffentlichen Beurteilung der Bonität des UNTERNEHMENS zu
beauftragen. Die Bonitätsbeurteilung erfolgt hierbei
auf der Grundlage des Konzernabschlusses (§ 14.2),
oder falls ein solcher gemäß § 14.2 nicht zu erstellen
ist, des Jahresabschlusses des Unternehmens. Die
von Zeit zu Zeit jeweils beauftragte Bonitätsbeurteilungsagentur wird als BONITÄTSBEURTEILUNGSAGENTUR bezeichnet. Das UNTERNEHMEN wird dem
Gläubiger die hierzu erforderlichen Unterlagen und
Informationen zur Verfügung stellen und die entstandenen Kosten erstatten.
10.4 The CREDITOR intends to appoint Moody's KMV or a
different CREDIT APPRAISAL AGENCY determined by
it with an annual and non-public assessment of the
creditworthiness of the C OMPANY. In this connection,
the credit appraisal shall be conducted on the basis of
the consolidated financial statements (§ 16.2) or, if
such consolidated financial statements are not to be
prepared pursuant to § 16.2, the unconsolidated
financial statements. The respective credit appraisal
agency appointed from time to time shall be referred
to as the CREDIT APPRAISAL AGENCY. The
COMPANY shall make the documents and information
necessary for this purpose available to the C REDITOR
and shall reimburse its incurred expenses.
10.5 Das UNTERNEHMEN hat branchenüblichen Versicherungsschutz in angemessenem Umfang zu unterhalten und dies auf Verlangen dem GLÄUBIGER nachzuweisen.
10.5 The COMPANY shall maintain insurance cover in
accordance with industry practice and in an adequate
scope, and shall provide proof thereof to the
CREDITOR upon request.
10.6 Das UNTERNEHMEN wird gegenüber dem GLÄUBIGER
keine Sicherungs- und Zurückbehaltungsrechte oder
ähnliche Rechte geltend machen oder eine Aufrechnung vornehmen, es sei denn, das geltend gemachte
Recht bzw. die Forderung, mit der aufgerechnet wird
ist unbestritten oder rechtskräftig festgestellt, oder
das UNTERNEHMEN hat wegen eines in der Person des
GLÄUBIGERS liegenden Kündigungsgrundes eine
wirksame AUßERORDENTLICHE KÜNDIGUNG erklärt.
10.6 The COMPANY waives the right to assert against the
CREDITOR any security interest, right of retention or
similar rights or to claim any set-off, unless its asserted right or its set-off claim is not disputed or has
been confirmed by a non-appealable court decision
or the COMPANY has given a valid notice of
EXTRAORDINARY TERMINATION by virtue of a termination cause originating from the CREDITOR.
10.7 Das UNTERNEHMEN wird ausschließlich nach
vorheriger
schriftlicher
Zustimmung
des
GLÄUBIGERS Weitere in der Insolvenz des
UNTERNEHMENS nachrangige Finanzierungsinstrumente (§ 39 InsO) oder Finanzierungsinstrumente
mit gewinnabhängiger oder gewinnorientierter Vergütung ausgeben. Zu letztgenannten Finanzierungsinstrumenten zählen beispielsweise Genussrechte,
stille Beteiligungen oder partiarische Darlehen, nicht
jedoch Einzahlungen in die Kapitalrücklage oder auf
Anteile oder bei Personengesellschaften Einzahlung
auf die Kapitalanteile oder in die Rücklagen. Dieses
Zustimmungserfordernis besteht nicht in Bezug auf
Finanzierungsinstrumente, die gleichrangig mit oder
10.7 The COMPANY may not issue further financing instruments which would be subordinated in the insolvency of the Company (§ 39 of the German Insolvency Act) or financing instruments with profit-related or profit-oriented remuneration without the
prior written approval of the C REDITOR. The lastmentioned financing instruments include, for example, participation rights (Genussrechte), silent participations, profit participating loans, but not contributions made to the capital reserves or the payment
of the subscription price for shares or, in the case of
partnerships, contributions made to the capital shares
or reserves. This requirement of prior approval shall
not apply to financing instruments ranking pari passu
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nachrangig zum GENUSSRECHT sind.
or junior to this PARTICIPATION RIGHT.
§ 11
Zahlungen; Steuern
§ 11
Payments; Taxes
11.1 Zahlungen des UNTERNEHMENS an den GLÄUBIGER
sind auf das Konto des GLÄUBIGERS zu leisten, das
dieser dem UNTERNEHMEN mitteilen wird, Zahlungen
des GLÄUBIGERS an das UNTERNEHMEN auf das
Konto gemäß § 1.2 Satz 1 zu leisten.
Kontoänderungen sind der jeweils anderen
Vertragspartei spätestens am 5. G ESCHÄFTSTAG vor
dem betreffenden Fälligkeitstermin schriftlich
mitzuteilen.
11.1 Payments by the COMPANY to the CREDITOR shall be
made to the account of the CREDITOR notified to the
COMPANY by the CREDITOR, payments by the
CREDITOR to the COMPANY shall be made to the
account stated in § 1.2 sentence 1. Changes of accounts shall be communicated to the other party in
writing not later than the 5th BUSINESS DAY before
the relevant due date.
11.2 Der GLÄUBIGER wird dem UNTERNEHMEN spätestens
am 2. GESCHÄFTSTAG vor jedem ZAHLUNGSTERMIN
(§ 2.2(a)) den an diesem Tag von dem
UNTERNEHMEN zu zahlenden Betrag mitteilen.
11.2 The CREDITOR shall report to the COMPANY not later
than on the 2nd BUSINESS DAY before each PAYMENT
DATE (§ 2.2(a)) the amount payable by the C OMPANY
on this day.
11.3 Alle Zahlungen des UNTERNEHMENS nach dieser
Genussrechtsvereinbarung sind an den G LÄUBIGER
netto ohne jeglichen Einbehalt oder Abzug von Steuern, Abgaben und hoheitlichen Gebühren jedweder
Art zu leisten, es sei denn, das UNTERNEHMEN ist gesetzlich verpflichtet, solche Einbehalte oder Abzüge
vorzunehmen. Ist das UNTERNEHMEN gesetzlich
verpflichtet, solche Einbehalte oder Abzüge vorzunehmen, so hat es an den GLÄUBIGER die zusätzlichen Beträge zu zahlen, die notwendig sind,
damit der nach dem Einbehalt bzw. Abzug
verbleibende Nettobetrag den Beträgen entspricht, die ohne den Einbehalt bzw. Abzug an
den GLÄUBIGER zu zahlen gewesen wären.
11.3 All payments by the COMPANY under this participation right agreement shall be made to the C REDITOR
on a net basis and without any retentions or deductions of taxes, levies and sovereign charges whatsoever, unless the COMPANY is required by law to make
such retentions or deductions. If the COMPANY is
required by law to make such retentions or deductions, it shall pay to the CREDITOR the additional amounts necessary for the net amount remaining after the retention or, deduction to equal
the amount which would have had to be paid to
the CREDITOR without the retention or deduction.
11.4 (a)
11.4 (a)
Die Regelung des § 11.3 findet keine Anwendung auf die zum Zeitpunkt des Abschlusses
dieser Genussrechtsvereinbarung für Rechnung
des GLÄUBIGERS gesetzlich geschuldete Steuer
vom Kapitalertrag zuzüglich Solidaritätszuschlag
(gemeinsam
nachfolgend
als
KAPITALERTRAGSTEUER bezeichnet). Sollte
die zuständige Finanzbehörde im Wege eines
Einspruchsbescheids die Anrechnung oder
Rückerstattung der KAPITALERTRAGSTEUER
ablehnen,
wird
der
GLÄUBIGER
das
UNTERNEHMEN hiervon in Kenntnis setzen. Das
UNTERNEHMEN wird in diesem Fall auf Verlangen des GLÄUBIGERS binnen zehn
GESCHÄFTSTAGEN die zusätzlichen Beträge
zahlen, die notwendig sind, damit der nach
dem Einbehalt bzw. Abzug aufgrund der
KAPITALERTRAGSTEUER verbleibende Nettobetrag den Beträgen entspricht, die ohne den
Einbehalt bzw. Abzug an den GLÄUBIGER zu
zahlen gewesen wären. Der GLÄUBIGER wird
dem UNTERNEHMEN binnen weiteren zehn GESCHÄFTSTAGEN den Einspruchsbescheid der Finanzbehörde in Kopie übermitteln. Der
GLÄUBIGER ist berechtigt, seine Ansprüche auf
Zahlung zusätzlicher Beträge nach diesem §
11.4(a) an Dritte abzutreten.
(b) Der GLÄUBIGER wird im Falle einer ablehnenden Entscheidung der Finanzverwaltung (Absatz (a)) Klage vor den Finanzgerichten erhe-
- 113 -
The provisions in § 11.3 shall not apply to the
statutory withholding tax (Kapitalertragsteuer)
plus
the
solidarity
surcharge
(Solidaritätszuschlag) owed for the account of the
CREDITOR at the signing of this participation
right agreement (hereinafter referred to jointly
as WITHHOLDING TAX). The CREDITOR shall
notify the COMPANY if the competent tax authorities were to refuse on appeal (Einspruchsbescheid) giving credit for or refunding the
WITHHOLDING TAX. In this case, the
COMPANY shall on demand of the CREDITOR
pay, within ten BUSINESS DAYS, the additional amounts necessary for the net amount
remaining after the retention or the deduction of the WITHHOLDING TAX to equal the
amount which would have had to be paid to
the CREDITOR without the retention or deduction. Within additional ten BUSINESS DAYS,
the CREDITOR shall deliver to the COMPANY a
copy of the decision on appeal issued by the tax
authorities. The CREDITOR shall be entitled to
assign its payment claims to additional amounts
under this § 11.4(a) to third parties.
(b) In case of a negative decision by the tax
authorities (para. (a)), the C REDITOR shall bring
an action in the Finance Courts if such action is
ben, soweit eine solche Klage zumutbar ist und
der GLÄUBIGER einen angemessenen Vorschuss
für die Verfahrenskosten erhält.
(c)
reasonable and if the CREDITOR receives an
adequate advance to cover the costs of the proceedings.
Die angemessenen Kosten des G LÄUBIGERS im
Zusammenhang mit Einspruchs- und Klageverfahren sind ihm durch das UNTERNEHMEN (im
Falle mehrerer Erstattungsansprüche anteilig)
zu erstatten.
(c)
The reasonable costs incurred by the C REDITOR
in connection with the administrative appeal
and court proceedings shall be refunded by the
COMPANY (in case of multiple refund claims,
the refund shall be pro rata).
(d) Wird die zunächst abgelehnte Anrechnung oder
Rückerstattung der KAPITALERTRAGSTEUER zu
einem späteren Zeitpunkt vorgenommen, so
wird der GLÄUBIGER dem UNTERNEHMEN die
gemäß vorstehendem Absatz (a) gezahlten zusätzlichen Beträge zurückerstatten. Diese
Rückerstattungsverpflichtung ist auf die Höhe
der Anrechnung bzw. Erstattung beschränkt.
(d) If the tax credit for or refund of the
WITHHOLDING TAX, which was refused initially, is granted at a later date, the C REDITOR
shall refund to the COMPANY the additional
amounts paid in accordance with the preceding
para. (a). This obligation to refund is limited to
the amount of tax credit or refund.
(e)
(e)
Das UNTERNEHMEN wird dem GLÄUBIGER die
einbehaltene KAPITALERTRAGSTEUER unverzüglich gemäß § 45a Abs. 2 EStG bescheinigen.
The COMPANY shall certify the retained
WITHHOLDING TAX in accordance with § 45a
para. 2 of the German Income Tax Act (Einkommensteuergesetz) to the CREDITOR without
undue delay.
11.5 Alle Steuern, Gebühren, Abgaben und sonstigen
Kosten, die im Zusammenhang mit dieser Genussrechtsvereinbarung, insbesondere ihrem Abschluss
und
ihrer
Durchführung
oder
einer
VERTRAGSÜBERNAHME entstehen, werden von dem
UNTERNEHMEN getragen.
11.5 All taxes, fees, levies and other expenses, which
accrue in connection with this participation right
agreement, in particular with its conclusion and its
performance or with an ASSUMPTION OF AGREEMENT,
shall be paid by the COMPANY.
11.6 Zahlungen des GLÄUBIGERS an das UNTERNEHMEN
erfolgen nach etwaigen Abzügen oder Einbehalten,
zu denen der GLÄUBIGER durch oder aufgrund gesetzlicher Vorschriften verpflichtet ist. Der
GLÄUBIGER ist in diesem Fall zu keinen weiteren
Zahlungen zum Ausgleich dieser Einbehalte oder
Abzüge verpflichtet.
11.6 Payments by the CREDITOR to the COMPANY shall be
made net of any deductions or retentions required by
or due to law to be made by the CREDITOR (if any). In
this case, the CREDITOR shall not owe any additional
payments to compensate for these retentions or deductions.
11.7 (a)
11.7 (a)
Sollte das UNTERNEHMEN zur Zahlung zusätzlicher Beträge nach § 11.3 oder § 11.4(a) verpflichtet werden, so ist es berechtigt, durch Erklärung gegenüber dem GLÄUBIGER die Wandlung des GENUSSRECHTS in ein Darlehen zu erklären. Diese Erklärung kann nur binnen einer
Frist von drei Monaten nach der Aufforderung
des GLÄUBIGERS abgegeben werden, zusätzliche Beträge nach § 11.3 oder § 11.4(a) zu zahlen.
(b) Mit Zugang einer fristgerechten Wandlungserklärung gemäß vorstehendem Absatz (a)
beim GLÄUBIGER wird diese Genussrechtsvereinbarung als Vereinbarung über ein festverzinsliches Nachrangdarlehen fortgeführt. Zu
diesem Zeitpunkt entfällt die Verpflichtung des
Unternehmens zur Zahlung der VARIABLEN
VERGÜTUNG; § 2.1 Satz 2 2. Halbsatz, § 2.3, §
8.2 Satz 3 und § 14.2 letzter Satz sind nicht
mehr anwendbar. Im übrigen gelten die Bestimmungen dieser Vereinbarung unverändert
fort. Das UNTERNEHMEN ist ferner verpflichtet,
im Hinblick auf die KAPITALERTRAGSTEUER ,
die für den bei Wandlung in das Nachrangdarlehen laufenden Dreimonatszeitraum bis zum
nächsten QUARTALSSTICHTAG einzubehalten ist,
- 114 -
If the COMPANY were obliged to pay additional
amounts pursuant to § 11.3 or 11.4(a), it shall
be entitled to declare the conversion of the
PARTICIPATION RIGHT into a loan by way of a
declaration to the CREDITOR. This declaration
can only be made within the three month period
following the request of the CREDITOR to pay
additional amounts pursuant to § 11.3 or §
11.4(a).
(b) Upon receipt of a timely conversion declaration
pursuant to the preceding para. (a) by the
CREDITOR, this participation right agreement
shall be continued as an agreement on a fixedrate subordinated loan. The obligation of the
COMPANY
to
pay
the
FLOATING
REMUNERATION shall terminate at that time;
§ 2.1 sentence 2 half-sentence 2, § 2.3, § 8.2
sentence 3 and § 14.2 last sentence shall no
longer apply. The other terms of this agreement
shall continue to apply unmodified. Furthermore, the COMPANY shall be obliged to pay to
the CREDITOR additional amounts pursuant to
§ 11.4(a) with respect to the WITHHOLDING TAX
which has to be withheld for the current three
month period at the time of conversion into a
zusätzliche Beträge gemäß § 11.4(a) an den
GLÄUBIGER zu zahlen.
subordinated loan until the next QUARTERLY
RECORD DATE.
11.8 Sollte das UNTERNEHMEN vor einer Wandlung in ein
Nachrangdarlehen gemäß § 11.7 zur Zahlung zusätzlicher Beträge nach § 11.4(a) verpflichtet werden, ist
es zur AUßERORDENTLICHEN KÜNDIGUNG dieser Vereinbarung berechtigt. Auf die Rückzahlung nach
Kündigung findet § 5 (insbesondere einschließlich
der Regelung zur Zahlung des ZUSÄTZLICHEN
RÜCKZAHLUNGSBETRAGS) Anwendung. Die Parteien
vereinbaren,
dass
eine
Verpflichtung
des
UNTERNEHMENS zur Zahlung sonstiger zusätzlicher
Beträge oder Abzüge (einschließlich von Beträgen
gemäß § 11.4(a) nach einer Wandlung in ein Nachrangdarlehen gemäß § 11.7), oder Einbehalte des
GLÄUBIGERS nach Maßgabe dieses § 11 keinen
wichtigen Grund für eine AUßERORDENTLICHE
KÜNDIGUNG durch das UNTERNEHMEN darstellen.
11.8 If the COMPANY is obliged to pay additional amounts
pursuant to § 11.4(a) before the conversion into a
subordinated loan according to § 11.7, it shall be entitled to an EXTRAORDINARY TERMINATION of this
agreement. § 5 (in particular including the provisions
on the payment of the ADDITIONAL REPAYMENT
AMOUNT) shall apply to the repayment upon termination. The parties agree that an obligation of the
COMPANY to pay other additional amounts or deductions (including amounts pursuant to § 11.4(a) following a conversion into a subordinated loan pursuant to § 11.7), or retentions of the C REDITOR pursuant
to this § 11 shall not constitute good cause for an
EXTRAORDINARY TERMINATION by the COMPANY.
§ 12
Abtretung von Rechten; Vertragsübernahme
§ 12
Assignment of Rights; Assumption of Agreement
12.1 Das UNTERNEHMEN ist nicht berechtigt, seine Forderungen oder sonstige Rechte aus dieser Genussrechtsvereinbarung ohne vorherige schriftliche Zustimmung des GLÄUBIGERS an Dritte zu übertragen
oder zu belasten.
12.1 The COMPANY shall not be entitled to assign its
claims or other rights under this participation right
agreement to third parties or to encumber these rights
without the prior written consent of the C REDITOR.
12.2 Der GLÄUBIGER ist berechtigt, zum Zwecke der
Refinanzierung des GENUSSRECHTS oder zu Sicherungszwecken seine aus dieser Genussrechtsvereinbarung resultierenden Forderungen und Rechte abzutreten oder zu belasten.
12.2 For the purpose of refinancing the P ARTICIPATION
RIGHT or the creation of security interests, the
CREDITOR shall be entitled to assign or encumber its
claims or rights under this participation right agreement.
12.3 Für den Fall, dass (i) dem GLÄUBIGER die Rechte
nach § 9.2 zustehen oder (ii) das U NTERNEHMEN die
nach § 5.2 oder § 5.3 ermittelten Beträge nicht vollständig am RÜCKZAHLUNGSTERMIN an den
GLÄUBIGER zahlt, ist der GLÄUBIGER jederzeit berechtigt, seine Rechtsstellung aus dieser Genussrechtsvereinbarung mit allen Rechten und Pflichten
insgesamt auf einen Dritten zu übertragen
(VERTRAGSÜBERNAHME). Das UNTERNEHMEN erklärt bereits jetzt für diesen Fall unwiderruflich seine
Zustimmung zu einer VERTRAGSÜBERNAHME durch
einen von dem GLÄUBIGER bestimmten Dritten. Die
Übertragungsabsicht ist dem UNTERNEHMEN anzuzeigen. Dieses ist berechtigt, binnen zwei Wochen
nach Zugang der Anzeige der VERTRAGSÜBERNAHME
zu widersprechen, wenn in der Person des Vertragsübernehmers ein wichtiger Grund vorliegt, der eine
VERTRAGSÜBERNAHME auch unter Abwägung der
Interessen des GLÄUBIGERS an einer Liquidierung
seiner Investition unzumutbar erscheinen lässt, und
das UNTERNEHMEN diesen wichtigen Grund in seinem Widerspruch nachvollziehbar darlegt.
12.3 If (i) the CREDITOR 's rights in accordance with § 9.2
arise or (ii) the Company does not pay the amounts
determined pursuant to § 5.2 or § 5.3 to the Creditor
on the REPAYMENT DATE, the CREDITOR shall be entitled, at any time, to transfer its entire legal position
under this participation right agreement with all
rights and duties to a third party (ASSUMPTION OF
AGREEMENT). The COMPANY herewith gives its anticipated irrevocable consent to an ASSUMPTION OF
AGREEMENT by a third party determined by the
CREDITOR. The intention to transfer shall be notified
to the COMPANY. The COMPANY shall be entitled to
object to the ASSUMPTION OF AGREEMENT within two
weeks from receipt of notice for good cause with respect to the person assuming the agreement, if the
ASSUMPTION OF AGREEMENT thereby appears unacceptable even in consideration of the interests of the
CREDITOR in the liquidation of its investment, provided that the COMPANY comprehensively demonstrates such good cause in its objection.
12.4 Mit einer VERTRAGSÜBERNAHME stehen dem Dritten
sämtliche Rechte und Pflichten zu, die sich nach den
Bedingungen dieser Vereinbarung aus der Stellung
als GLÄUBIGER ergeben. Dem UNTERNEHMEN gegenüber wird eine VERTRAGSÜBERNAHME nur dann
wirksam, wenn sie diesem angezeigt wurde und es
keinen wirksamen Widerspruch eingelegt hat.
12.4 Following an ASSUMPTION OF AGREEMENT, the third
party shall have all rights and duties of the C REDITOR
pursuant to the terms and conditions of this agreement. An ASSUMPTION OF AGREEMENT shall take effect towards the COMPANY only after it has been notified to the COMPANY and if the COMPANY did not file
an effective objection.
- 115 -
§ 13
Beschränkung von Ansprüchen und Rechtsverfolgung;
Rechte Dritter
§ 13
Limitation of Claims and Assertion of Rights; Rights of
Third Parties
13.1 Bei dem GLÄUBIGER handelt es sich um eine
Zweckgesellschaft, die für die Zwecke der Refinanzierung eines Portfolios von Genussrechten im Wege
der Begebung einer Anleihe am Kapitalmarkt
und/oder die Durchführung einer sonstigen
Refinanzierung gegründet wurde. Für die Platzierung
und die Bonitätsbeurteilung derartiger Anleihen
durch einen Ratingdienstleister ist es erforderlich und
marktüblich,
dass
zwischen
sämtlichen
Vertragsgläubigern der Zweckgesellschaft eine
Rangfolge zur Verteilung des vorhandenen
Vermögens vereinbart und durch die Beschränkung
der Rechtsverfolgung abgesichert wird.
13.1 The CREDITOR constitutes a special purpose vehicle
which has been established for the purpose of refinancing a portfolio of participation rights (Genussrechte) by way of issuing notes on the capital markets and/or the realisation of another refinancing. For
the purposes of placement and rating of such notes
by a rating agency, it is necessary and market
practice to agree on an order of priority amongst all
contractual creditors of the special purpose vehicle
with respect to the distribution of the available assets
and to protect such order of priorities by limiting the
assertion of rights.
Ansprüche des UNTERNEHMENS gegen den
GLÄUBIGER oder dessen Gesellschafter, welche
sich auf die Zahlung von Geld richten, sind daher
auf das tatsächlich vorhandene Vermögen des
GLÄUBIGERS beschränkt. Sie sind ausschließlich
nach vollständiger und endgültiger Rückführung
sämtlicher
Verbindlichkeiten,
die
die
GLÄUBIGERIN im Rahmen der Refinanzierung
dieser Genussrechtsvereinbarung durch eine
Anleihe und/oder eine sonstige Refinanzierung
eingeht, zu bedienen. Das UNTERNEHMEN stimmt
ausdrücklich zu, dass keine über die Beschränkungen
des § 13.1 Sätze 3-4 hinausgehenden Zahlungsverpflichtungen des GLÄUBIGERS oder dessen
Gesellschafter begründet werden und der Rückgriff
auf das Vermögen des GLÄUBIGERS oder dessen
Gesellschafter entsprechend beschränkt ist.
Therefore, payment claims of the C OMPANY
against the CREDITOR or its shareholders are limited to the available assets of the C REDITOR. They
are to be satisfied exclusively after the full and
definite discharge of all obligations assumed by
the CREDITOR within the framework of the
refinancing of this participation right agreement
by notes and/or another refinancing. The
COMPANY herewith explicitly agrees that the
CREDITOR or its shareholders shall have no payment
obligations exceeding the limitations provided for in
§ 13.1 sentences 3-4 and that the recourse to the assets of the CREDITOR or its shareholders shall be limited accordingly.
13.2 Das UNTERNEHMEN stimmt ferner ausdrücklich zu,
dass es wegen ihm zustehender Forderungen und
Rechte gegen den GLÄUBIGER oder dessen Gesellschafter vor Ablauf eines Jahres und eines Tages
nach der vollständigen Bedienung sämtlicher Verbindlichkeiten unter der in § 13.1 genannten Anleihe
keinen Antrag auf Eröffnung eines Insolvenzverfahrens über das Vermögen des GLÄUBIGERS oder
seiner Gesellschafter stellen wird.
13.2 In addition, the COMPANY explicitly agrees that
before the expiration of the period of one year and
one day after the complete discharge of all obligations under the notes referred to in § 13.1, it shall
not file an application for the opening of insolvency proceedings with respect to the assets of the
CREDITOR or its shareholders based on its claims
against the CREDITOR or its shareholders.
13.3 Jedwede Forderungen und Rechte Dritter gegen den
GLÄUBIGER aus oder im Zusammenhang mit dieser
Genussrechtsvereinbarung sind ausdrücklich ausgeschlossen.
13.3 Any claims and rights of third parties against the
Creditor under or in connection with this participation right agreement are explicitly excluded.
§ 14
Allgemeine Bestimmungen
§ 14
General Provisions
14.1 Begriffe, die in dieser Genussrechtsvereinbarung
definiert werden, haben in der gesamten Genussrechtsvereinbarung die übereinstimmende Bedeutung. Die Anlagen bilden einen integralen Bestandteil dieser Genussrechtsvereinbarung.
14.1 Terms which are defined in this participation right
agreement shall have the same meaning in the entire
participation right agreement. The annexes hereto
constitute an integral part of this participation right
agreement.
14.2 Handelt es sich bei dem UNTERNEHMEN um eine
Konzern- oder Teilkonzernobergesellschaft, so wird
dieses während der Laufzeit dieser Vereinbarung
(unabhängig von einer entsprechenden gesetzlichen
Verpflichtung) einen Konzernabschluss erstellen.
Auf diesen beziehen sich sämtliche Bezugnahmen in
14.2 If the COMPANY is an ultimate holding company of a
group or sub-group, it shall, for the duration of this
agreement, prepare consolidated financial statements
(regardless of a corresponding legal obligation). All
references to consolidated financial statements in this
agreement shall refer to these financial statements. If
- 116 -
dieser Vereinbarung auf einen Konzernabschluss.
Wurde dem GLÄUBIGER vor Abschluss dieser Genussrechtsvereinbarung ein "Als-ob-Konzernabschluss" vorgelegt, der neben dem U NTERNEHMEN
auch andere, im weitesten Sinne nahestehende Unternehmen mit einbezieht, so ist das U NTERNEHMEN
auch zukünftig verpflichtet, während der Laufzeit
dieser Vereinbarung einen vergleichbaren "Als-obKonzernabschluss" zu erstellen. Sämtliche Bezugnahmen in dieser Vereinbarung auf einen Konzernabschluss beziehen sich in diesem Fall auf diese
"Als-ob-Konzernabschlüsse". Solange die Voraussetzungen der vorausgegangenen Sätze dieses § 14.2
nicht vorliegen, gelten Bezugnahmen in dieser Vereinbarung auf Konzernabschlüsse als nicht vorhanden und begründen insoweit keinerlei Verpflichtungen des UNTERNEHMENS. In diesem Fall berechnet
sich die VARIABLE VERGÜTUNG ausschließlich auf
der Grundlage des Jahresabschlusses des U NTERNEHMENS.
the CREDITOR has received before the conclusion of
this participation right agreement "as-if consolidated
financial statements" comprising, apart from the
COMPANY, also other closely related companies in
the broadest sense, the COMPANY shall remain
obliged to prepare comparable "as-if consolidated financial statements" during the term of this agreement. All references made to consolidated financial
statements in this agreement shall in this case refer to
these "as-if consolidated financial statements". As
long as the conditions of the preceding sentences of
this § 14.2 are not fulfilled, references made to consolidated financial statements in this agreement do
not apply and do not constitute any obligations of the
COMPANY in this respect. In this case, the F LOATING
REMUNERATION shall be calculated exclusively on
the basis of the financial statements of the C OMPANY.
14.3 Der GLÄUBIGER ist berechtigt, seine im Rahmen
dieser Genussrechtsvereinbarung begründeten Forderungen und Rechte durch von ihm beauftragte Dritte
einzuziehen oder ausüben zu lassen. Die Vertraulichkeitspflichten des GLÄUBIGERS (§ 8.4) bleiben
unberührt.
14.3 The CREDITOR shall be entitled to have its claims and
rights arising under this participation right agreement
collected or exercised by third parties appointed by
it. The CREDITOR 'S confidentiality obligation (§ 8.4)
remains unaffected.
14.4 Insiderrechtliche Vorschriften bleiben unberührt.
14.4 Insider trading provisions remain unaffected.
14.5 Soweit Bestimmungen dieser Genussrechtsvereinbarung die Zahlung pauschalierten Schadensersatzes
vorsehen, wird der jeweils zur Zahlung dieses Schadensersatzes verpflichteten Partei der Nachweis eines
niedrigeren und der jeweils zu Schadensersatz berechtigten Partei der Nachweis eines höheren Schadens nicht abgeschnitten. Bei der Berechnung eines
Schadens des GLÄUBIGERS ist dessen Charakter einer
Zweckgesellschaft Rechnung zu tragen und daher im
Wege der Drittschadensliquidation auf den Schaden
seiner Anleihegläubiger abzustellen.
14.5 To the extent that provisions of this participation
right agreement provide for the payment of lump
sum damages, the party obliged to pay such damages
shall not be precluded from proving a lower amount
of damages and the party entitled to such damages
shall not be precluded from proving a higher amount
of damages. The calculation of the amount of damages incurred by the CREDITOR shall take into account its nature as a special purpose vehicle and shall
therefore be based on the damages incurred by its
noteholders by way of a liquidation of third party
damages (Drittschadensliquidation).
14.6 Die Genussrechtsvereinbarung begründet keine
Verpflichtungen der Gesellschafter des U NTERNEHMENS sowie diesen nahestehende Personen im
Sinne des § 1 Abs. 2 AStG und/oder Angehörige im
Sinne von § 15 AO (einschließlich deren Rechtsnachfolger). Diese sind weder rechtlich noch tatsächlich verpflichtet, für die Zahlungsverpflichtungen des UNTERNEHMENS aus dieser Genussrechtsvereinbarung einzustehen.
14.6 The participation right agreement does not create any
obligations of the shareholders of the C OMPANY or of
parties with a close relationship within the meaning
of § 1 para. 2 of the German Foreign Tax Act
(Außensteuergesetz) and/or of relatives within the
meaning of § 15 of the German Tax Code (Abgabenordnung) (including their legal successors). These
persons have no liability, neither de jure nor de facto,
with respect to the payment obligations of the
COMPANY under this participation right agreement.
14.7 (a)
14.7 (a)
Mitteilungen an das UNTERNEHMEN im Zusammenhang mit dieser Vereinbarung sind zu
richten an:
Notifications to the COMPANY in connection
with this agreement shall be made to:
Herrn/Frau ____
Mr./Ms. ____
Telefon:
Telefax:
E-Mail:
Telephone: [__]
Telefax:
[__]
E-mail:
[__]
[__]
[__]
[__]
- 117 -
(b) Mitteilungen an den GLÄUBIGER im
Zusammenhang mit dieser Vereinbarung sind
zu richten an:
(c)
(b) Notifications to the CREDITOR in connection
with this agreement shall be made to:
The Directors
26 New Street
St. Helier
Jersey JE2 3RA
Channel Islands
The Directors
26 New Street
St. Helier
Jersey JE2 3RA
Channel Islands
Telefax:
Telefax:
+44 1534 814 815
+44 1534 814 815
als Transaction Monitor
London EC3V 0HR
in its capacity as Transaction Monitor
London EC3V 0HR
Telefax:
E-Mail:
Telefax:
E-mail:
+44 20 7469 3218
[email protected]
Die Vertragsparteien können Änderungen ihrer
vorgenannten Ansprechpartner und Anschriften
der jeweils anderen Vertragspartei jederzeit
schriftlich mitteilen. Bis zu dieser Mitteilung
gelten die bisherigen Angaben als wirksam.
(c)
+44 20 7469 3218
[email protected]
The parties to this agreement may at any time
give notice in writing to the respective other
party of changes regarding the aforementioned
contact persons and contact addresses. Until receipt of such notice, the previous information is
deemed to be effective.
14.8 Sollten einzelne Bestimmungen dieser Genussrechtsvereinbarung unwirksam oder undurchführbar sein,
bleibt die Genussrechtsvereinbarung im übrigen
wirksam.
14.8 Should any provision of this participation right
agreement be void or unenforceable, the remainder
of the participation right agreement shall remain unaffected.
14.9 Änderungen dieser Genussrechtsvereinbarung, einschließlich dieser Schriftformklausel, bedürfen der
Schriftform.
14.9 Modifications of this participation right agreement,
including this requirement of writing, shall be made
in writing only.
14.10 Diese Genussrechtsvereinbarung und deren Auslegung unterliegt ausschließlich deutschem Recht.
14.10 This participation right agreement and its interpretation is subject to German law only.
14.11 Nicht-ausschließlicher Gerichtstand für alle aus und
im Zusammenhang mit dieser Genussrechtsvereinbarung entstehenden Streitigkeiten ist das Landgericht in Frankfurt am Main.
14.11 The non-exclusive place of jurisdiction for all legal
disputes arising under or in connection with this
participation right agreement shall be the District
Court (Landgericht) in Frankfurt am Main.
ANLAGE 1 ZUR
ZUSICHERUNGEN
AGREEMENT
REPRESENTATIONS
1.
Die Begründung des GENUSSRECHTS ist durch die
zuständigen Organe des UNTERNEHMENS autorisiert.
Insbesondere hat die Gesellschafter- bzw. Hauptversammlung einen wirksamen und unanfechtbaren Zustimmungsbeschluss zur Begebung des GENUSSRECHTS gefasst.
1.
The constitution of this PARTICIPATION RIGHT has
been authorised by the competent bodies of the
Company. In particular, the shareholders' meeting
has taken a legally effective and incontestable resolution approving the granting of the P ARTICIPATION
RIGHT.
2.
Die Informationen, die das UNTERNEHMEN im
Zusammenhang mit dieser Genussrechtsvereinbarung dem GLÄUBIGER zur Verfügung gestellt hat,
sind zutreffend und erlauben eine zutreffende Beurteilung der Vermögens-, Finanz- und Ertragslage des
2.
The information given to the CREDITOR by the
COMPANY in connection with this participation right
agreement is correct and allows for a correct assessment of the assets, financial and earnings situation of
the COMPANY.
- 118 -
UNTERNEHMENS.
3.
Die dem GLÄUBIGER übergebenen Kopien des Handelsregisterauszugs und des Gesellschaftsvertrags
bzw. der Satzung des UNTERNEHMENS sind vollständig und korrekt. Es bestehen keine beschlossenen,
aber noch nicht eingetragenen Maßnahmen, die nicht
dem GLÄUBIGER offengelegt worden sind.
3.
The copies of the commercial register extract and the
partnership agreement or, as the case may be, the articles of association of the C OMPANY delivered to the
CREDITOR are complete and correct. There are no resolved but not yet registered actions which have not
been disclosed to the CREDITOR.
4.
Die Jahresabschlüsse des U NTERNEHMENS und soweit
solche erstellt wurden, Konzernabschlüsse der letzten
drei Geschäftsjahre sind in Übereinstimmung mit den
anwendbaren gesetzlichen Bestimmungen und den
allgemein anerkannten Buchführungs- und Bilanzierungsgrundsätzen unter Wahrung der formellen und
materiellen Bilanzkontinuität (einschließlich in Bezug auf Bilanzierungs- und Bewertungswahlrechte)
aufgestellt worden, und vermitteln unter Beachtung
der Grundsätze ordnungsgemäßer Buchführung ein
den tatsächlichen Verhältnissen entsprechendes Bild
der Vermögens-, Finanz- und Ertragslage zu dem jeweiligen Bilanzstichtag.
4.
The unconsolidated and, as far as drawn up, consolidated financial statements of the C OMPANY for the
last three financial years have been prepared in accordance with the applicable legal provisions and the
generally accepted bookkeeping and accounting
principles observing formal and material continuity
of accounting treatment (formelle und materielle Bilanzkontinuität) (also with regard to discretionary accounting and valuation) and reflect, in compliance
with sound accounting principles, the accurate assets,
financial and earnings situation on the respective
date of the financial statements.
5.
Seit dem Stichtag des letzten Jahresabschlusses des
UNTERNEHMENS hat es bei dem UNTERNEHMEN und
seinen Tochterunternehmen keine wesentlichen
nachteiligen Veränderungen der allgemeinen geschäftlichen Situation, der Geschäftsführung, der
Vermögens-, Finanz- oder Ertragslage, des Eigenkapitals oder der Ergebnisse der Geschäftstätigkeit gegeben, und es sind dem UNTERNEHMEN nach sorgfältiger Prüfung keine Umstände bekannt, die eine derartige Änderung bewirken könnten.
5.
Since the record date of the last financial statements
of the COMPANY, there have been no material adverse
changes of the general business situation, the management board, the assets, financial and earnings
situation, equity capital or the results of business activity of the COMPANY or its subsidiaries and the
COMPANY, after careful investigation, is not aware of
any circumstances which could effect such a change.
6.
Der Abschluss der Genussrechtsvereinbarung verstößt
nicht
gegen
andere
Verträge
des
UNTERNEHMENS und berührt deren Wirksamkeit und
Durchsetzbarkeit nicht.
6.
The conclusion of this participation right agreement
does not violate other agreements of the C OMPANY
and does not affect their validity and enforceability.
7.
Das Unternehmen hat auf Grundlage von Gesprächen
mit seinem Steuerberater und seinem Wirtschaftsprüfer eine unabhängige Beurteilung der steuerlichen
und bilanziellen Auswirkungen vorgenommen, die
sich aus dem Abschluss der Genussrechtsvereinbarung ergeben.
7.
The COMPANY has conducted an independent assessment of the fiscal and accounting effects resulting
from the conclusion of this participation right agreement on the basis of discussions with its tax adviser
and its auditor.
ANLAGE 2
ZUR GENUSSRECHTSVEREINBARUNG
KENNZAHLEN NACH MOODY'S KMV RISC
CALC
AGREEMENT
KEY RATIOS ACCORDING TO
MOODY'S KMV RISC CALC
Die nachfolgenden Kennzahlen werden bei der Ermittlung
einer Bonitätsbeurteilung nach Moody's KMV Risc Calc
ermittelt. Der Gläubiger ist befugt, die Kennzahlen auf
anonymisierter
Basis
zu
veröffentlichen;
nicht
veröffentlicht werden die jeweiligen Berechnungsbestandteile der Kennzahlen.
The following key ratios will be calculated in connection
with the determination of a credit appraisal according to
Moody's KMV Risc Calc. The Creditor shall be entitled to
publish such key ratios on an anonymous basis; the
respective calculation components of such key ratios shall
not be published.
(trade
(trade
sales
sales
- 119 -
total assets
total assets
ER: Equity Ratio =
ER: Equity Ratio =
total equity + 50 % special item with equity character − int angible assets
total equity + 50 % special item with equity character − int angible assets
DC: Debt Coverage =
DC: Debt Coverage =
EBITDR: EBITD-ROI =
EBITDR: EBITD-ROI =
total assets
total assets
sales
sales
SG: Sales Growth =
SG: Sales Growth =
sales
sales
personnel exp enses
sales
personnel exp enses
sales
- 120 -
TAX LIQUIDITY FACILITY AGREEMENT
The following are the main provisions of the Tax Liquidity Facility Agreement dated 1 December
2005 (as amended and restated on 11 April 2006) between the Issuer and the Liquidity Facility
Provider (excluding the Schedules thereto). In case of any overlap or inconsistency in the definition of
a term or expression in the Tax Liquidity Facility Agreement and elsewhere in this Prospectus, the
definition in the Tax Liquidity Facility Agreement will prevail.
1.
DEFINITIONS AND CONSTRUCTION
1.1
Defined terms used but not defined herein shall have the same meaning as in the terms and
conditions of the Notes (including the schedules thereto) attached as Schedule 5 hereto (the
"Terms and Conditions").
1.2
Words denoting the singular shall include the plural and vice versa.
1.3
Any reference to any agreement or document shall be construed as a reference to the relevant
agreement or document (in each case including any separate fee arrangement referred to
therein) as the same may have been, or may from time to time be, renewed, extended,
amended, varied, novated, supplemented or superseded.
1.4
Save where the contrary is indicated, any reference herein to a time of day shall be construed
as a reference to the time in Frankfurt am Main.
1.5
Where a German legal term has been used herein, such German legal term (and not the
English legal term or concept to which it relates) shall be authoritative for the purpose of
construction. Where an English legal term has been used herein, the related German legal
term or concept shall be authoritative for the purpose of construction, provided that legal
terms shall be construed in accordance with English law or any other law if specifically so
provided or the context so requires.
1.6
Reference herein to any party in a certain capacity shall be construed to also refer to any of its
successors in such capacity.
2.
THE LIQUIDITY FACILITY
2.1
The Liquidity Facility Provider grants to the Issuer, upon the terms and subject to the conditions
hereof, a committed euro revolving liquidity facility (the "Liquidity Facility") pursuant to
which the Liquidity Facility Provider shall grant term loans requested by the Issuer in the
amounts specified in each Drawdown Request, subject in each case to the satisfaction of all
drawdown conditions stipulated in Clause 3, provided that the aggregate of the liquidity
advances made in respect of such term loans (the "Liquidity Advances", and together with any
Stand-by Advances, the "Advances") which are outstanding shall at no time exceed the
Commitment. The Issuer shall be entitled to cancel the Commitment or any integral multiple of
EUR 1 million thereof on any Payment Date by giving 5 Business Days' prior written notice to
the Liquidity Facility Provider. "Commitment" means initially EUR 9 million, as may be
reduced from time to time by cancellation notices made in accordance with the preceding
sentence.
2.2
As security for, inter alia, the Issuer's obligations hereunder, the Issuer will grant the Trustee
Collateral to the Trustee in accordance with the Trust Agreement. Any proceeds arising from a
- 121 -
foreclosure by the Trustee of the Trustee Collateral will be distributed to the Liquidity Facility
Provider and the other secured creditors of the Issuer in accordance with the Priority of
Payments (as defined in Clause 20.1).
2.3
The Liquidity Facility shall expire upon the lapse of the 364th day immediately following
11 April 2006, and in respect of a new Liquidity Facility granted pursuant to Clauses 2.6 and 2.7,
the 364th day immediately following the commencement of such new Liquidity Facility, or such
earlier date as may be agreed between the Issuer and the Liquidity Facility Provider (the
"Liquidity Facility Termination Date"). Notwithstanding the foregoing, no Liquidity
Facility Termination Date shall occur later than the earlier of (i) the Legal Maturity Date and (ii)
the redemption in full of the Class A, Class B, Class C, Class D and Class E Notes, and any
extension of the Liquidity Facility which may be made prior to such date shall expire at the latest
on such date.
2.4
The Issuer may, by giving written notice to the Liquidity Facility Provider until the 30th
Business Day immediately preceding the Liquidity Facility Termination Date (the "Extension
Notice Period") in the form of Schedule 3 hereto, request the Liquidity Facility Provider to grant
a new committed revolving liquidity facility which shall be on substantially the same terms as
this Liquidity Facility (subject to such amendments as may be agreed between the Issuer and the
Liquidity Facility Provider, which amendments shall be notified to the Rating Agencies) and
which shall commence on the date specified in such notice. The Liquidity Facility Provider
commitment under such new Liquidity Facility shall be equal to the sum of (i) the Available
Commitment and (ii) any amount which has been drawn under the Liquidity Facility and which
remains outstanding (each such amount determined as of the last day of the Extension Notice
Period).
2.5
Following a request pursuant to Clause 2.4, the Liquidity Facility Provider shall notify the Issuer
(with a copy to the Cash Administrator, the Trustee and the Transaction Monitor) within
10 Business Days whether or not it agrees to such request.
2.6
If the Liquidity Facility Provider within such aforementioned time agrees to such request it shall
notify the Issuer upon a letter of consent (the "Liquidity Facility Provider Consent Letter") in
the form of Schedule 4 hereto, for receipt by the Issuer not later than within 10 Business Days
after the date of such notification. As of the aforementioned notification of the Liquidity Facility
Provider Consent Letter, the Liquidity Facility Provider shall be obliged to grant a new
committed revolving liquidity facility to the Issuer and the Issuer shall be obliged to cancel this
Liquidity Facility at the close of business on the Business Day falling immediately prior to the
commencement of the new liquidity facility.
2.7
If the Liquidity Facility Provider does not agree to a request made pursuant to Clause 2.4 or fails
to notify the Issuer in accordance with Clause 2.6 that it agrees to such request, then the terms
and conditions set forth herein shall remain in force until the Liquidity Facility Termination
Date, unless otherwise expressly agreed by the parties hereto. In this case, the Issuer is entitled
to require (by notice in writing) the Liquidity Facility Provider to make an Advance in an
amount equal to the Available Commitment immediately prior to making such Advance (a
"Stand-by Advance"). Such Stand-by Advance shall be made available to the Issuer as a loan
on the date specified in the aforementioned notice from the Issuer, which date shall not fall
earlier than the 5th Business Day following the Issuer's notice to the Liquidity Facility
Provider, and shall be made by way of crediting the Collateral Account (as defined in
Clause 8.3) for the purpose of the Issuer making drawings thereunder mutatis mutandis in
accordance with the provisions set out herein in respect of Liquidity Advances. Each Stand-by
Advance, unless repaid earlier, shall be repaid by the Issuer on earlier of (i) the Legal Maturity
Date, (ii) the redemption in full of the Class A, Class B, Class C, Class D and Class E Notes and
(iii) pursuant to Clause 13.1 upon the occurrence of an Event of Default and the Liquidity
Facility Provider having declared that the Liquidity Facility shall be cancelled.
- 122 -
3.
DRAWDOWN CONDITIONS
3.1
The Issuer may not deliver any drawdown request (the "Drawdown Request") hereunder, and
the Liquidity Facility Provider shall be under no obligation to make any advances hereunder,
unless:
(i)
the Liquidity Facility Provider has received copies of all the documents listed in
Schedule 1 hereto and each is, in form and substance, satisfactory to it (for the
avoidance of doubt, such copies to be delivered to the Liquidity Facility Provider only
once);
(ii)
the Liquidity Facility Provider has received a Drawdown Request (as defined in
Clause 4.1) made in accordance with this Agreement and duly executed on behalf of the
Issuer; and
(iii)
the amount of the requested Liquidity Advance does not exceed, on the date of the
relevant Drawdown Request, (i) the aggregate amount of the Withholdings in respect of
which the Issuer certifies that is has not received notice that the credit or refund of such
Withholdings has been finally (rechtskräftig) denied by the tax authorities or the
competent courts (as applicable) less (ii) the aggregate of the Reimbursement Payments
previously received by the Issuer.
3.2
The Liquidity Facility Provider shall, upon receipt of copies of the documents listed in
Schedule 1 hereto, each in form and substance satisfactory to it, promptly notify the Issuer, the
Cash Administrator and the Trustee accordingly.
3.3
Prior to making a Liquidity Advance, the Liquidity Facility Provider may request from the Issuer
(acting through the Cash Administrator) a copy of the payment records maintained by the Cash
Administrator pursuant to the Cash Administration Agreement in order to verify the satisfaction
of the drawdown condition set out in Clause 3.1(ii) above.
4.
REQUESTS FOR LIQUIDITY ADVANCES
4.1
Save as otherwise provided herein, the Issuer (acting through the Cash Administrator) may
request the making of a Liquidity Advance on any Business Day by the delivery to the Liquidity
Facility Provider no later than 10 a.m. Frankfurt time on the requested drawdown date (herein
referred to as a "Drawdown Date") for such Liquidity Advance of a facsimile drawdown
request materially in accordance with Schedule 2 hereto (a "Drawdown Request") (which shall
be irrevocable) to that effect specifying in relation to each Liquidity Advance:
(i)
the proposed Drawdown Date, which shall be any Payment Date falling before the
Liquidity Facility Termination Date; and
(ii)
the total amount of the proposed Liquidity Advance, provided that each such portion
drawn shall not exceed the Available Commitment;
and the making of such request shall constitute a confirmation by the Issuer that, on such day, no
Event of Default has occurred hereunder and is continuing.
"Available Commitment" means at any date, an amount equal to (i) the Commitment less (ii)
any amount that has been drawn and which has not been repaid on or prior to such date less
(iii) the amount of any Stand-by Advance pursuant to Clause 2.7.
- 123 -
4.2
The term ("Term") for each Liquidity Advance to be made hereunder shall extend from the
Drawdown Date to the immediately succeeding Payment Date, however not later than the
Liquidity Facility Termination Date.
5.
MAKING OF ADVANCES
5.1
If the Issuer (acting through the Cash Administrator) submits the Drawdown Request to the
Liquidity Facility Provider in accordance with Clause 4 and, on the proposed Drawdown Date
for such Liquidity Advance:
(i)
such Liquidity Advance does not exceed the amount of the Available Commitment;
(ii)
the Liquidity Facility Termination Date has not then occurred; and
(iii)
no Event of Default has occurred and is continuing,
then, on such Drawdown Date and subject as provided above, the Liquidity Facility Provider
shall, no later than 1 p.m. Frankfurt time, make available to the Issuer in euro, through its
Frankfurt branch (the "Liquidity Facility Office") in accordance with the provisions of
Clause 15, such Liquidity Advance requested pursuant to Clause 4.1 provided that if the
amount of such Liquidity Advance exceeds the Available Commitment, then such Advance
shall be equal to the Available Commitment.
5.2
Nothing in this Agreement shall oblige the Liquidity Facility Provider to make a Liquidity
Advance if this would result in the aggregate of the Liquidity Advances made to the Issuer to
exceed the Available Commitment.
6.
INTEREST
6.1
(a)
The Issuer shall on each Payment Date during the Term of each outstanding Liquidity
Advance pay accrued interest on any principal amounts then outstanding in respect of
such Liquidity Advance (prior to any repayment of a principal amount on such Payment
Date) in an amount calculated pursuant to Clauses 6.2 through 6.4 below, but only if and
to the extent that there are funds available to the Issuer which the Issuer is entitled to
apply in accordance with the Priority of Payments for such purpose.
(b)
If interest is not paid in accordance with the provisions hereof, the Issuer shall pay such
accrued interest on the next Payment Date on which sufficient funds are available to the
Issuer for application for such purpose in accordance with the Priority of Payments.
(c)
If and to the extent that accrued interest is not paid by the Issuer on any Payment Date,
the Issuer shall pay liquidated damages calculated on the basis of EURIBOR plus a
margin of 5% per annum mutatis mutandis in accordance with this Clause 6 (any such
amount of damages, a "Default Interest").
6.2
The rate of interest applicable to any principal amount outstanding in respect of each Liquidity
Advance made hereunder shall, in respect of an Interest Period, be EURIBOR plus a margin of
0.50% per annum.
"EURIBOR", with respect to each Interest Period, means the rate determined by the Liquidity
Facility Provider for deposits in euro for a period of three months which appears on
- 124 -
Moneyline Telerate Page 248 of the Associated Press Dow Jones Telerate Service (or such
other page as may replace such page or that service for the purpose of displaying Brussels
inter-bank offered rate quotations of major banks) as of 11:00 a.m. (Brussels time) on the
second TARGET settlement day immediately preceding the commencement of such Interest
Period.
If Moneyline Telerate Page 248 is not available or if no such quotation appears thereon, in
each case as at such time, the Liquidity Facility Provider shall request the principal Euro-zone
office of the Reference Banks selected by it to provide their offered quotation (expressed as a
percentage rate per annum) for three-month deposits in euro at approximately 11:00 a.m.
(Brussels time) on the Quotation Date to prime banks in the Euro-zone inter-bank market in an
amount that is representative for a single transaction in that market at that time. If two or more
of the selected Reference Banks provide the Liquidity Facility Provider with such offered
quotations, EURIBOR shall be the arithmetic mean of such offered quotations (rounded if
necessary to the nearest one thousandth of a percentage point, with 0.000005 being rounded
upwards). If on Quotation Date fewer than two of the selected Reference Banks provide the
Liquidity Facility Provider with such offered quotations, EURIBOR shall be the rate per
annum which the Liquidity Facility Provider determines as being the arithmetic mean
(rounded if necessary to the nearest one thousandth of a percentage point, with 0.000005 being
rounded upwards) of the rates communicated to (and at the request of) the Liquidity Facility
Provider by the Reference Banks selected by the Liquidity Facility Provider, at approximately
11:00 a.m. (Brussels time) on the Quotation Date for loans in euro to leading European banks
at that time and in an amount that is representative for a single transaction in that market at
that time.
"Reference Banks" for the purpose of this definition means four major banks in the Eurozone inter-bank market.
"Euro-zone" means the region comprising member states of the European Union that have
adopted the single currency, the euro, in accordance with the EC Treaty.
"EC Treaty" means the Treaty establishing the European Community signed in Rome on 25
March 1957, as amended from time to time, including by the Treaty on European Union
signed in Maastricht on 7 February 1992.
"Quotation Date" in relation to any period for which an interest rate is to be determined under
the Liquidity Facility Agreement means the day on which quotations would ordinarily be
given by prime banks in the interbank market for deposits in euro for delivery on the first day
of that period.
"Interest Period" means in respect of each Payment Date, the period commencing on the
immediately preceding Payment Date (excluding) and ending on such Payment Date
(including).
6.3
The rate of interest applicable to any principal amount outstanding in respect of each Stand-by
Advance credited to the Collateral Account pursuant to Clause 2.7 or Clause 8.1 shall be, in
respect of any Interest Period, (i) in relation to any amounts drawn from each such Stand-by
Advance, the relevant EURIBOR plus a margin of 0.50% per annum, and (ii) in relation to the
remainder amount credited to the Collateral Account, the rate per annum which corresponds to
the interest rate earned by the Issuer on the Collateral Account (as defined in Clause 8.3) during
such period.
6.4
The interest amount payable on a Payment Date in respect of each Advance made hereunder
shall be calculated by applying the relevant rate of interest applicable to such Advance to the
principal amount of such Advance as of the first day of the relevant Interest Period and
- 125 -
multiplying the result by the actual number of days in the relevant Interest Period divided by
360.
7.
REPAYMENT
7.1.
Subject to the provisions hereof, the Issuer shall repay any amount outstanding in respect of each
Liquidity Advance made to it to the Liquidity Facility Provider on the Final Repayment Date
relating to such Liquidity Advance. To the extent that a Liquidity Advance is not repaid in full on
the Final Repayment Date because insufficient funds are available to the Issuer for application
for such purpose in accordance with the Priority of Payments, such unpaid sum shall become
due and payable on the immediately following Payment Date or, if there is no Payment Date
occurring after the Final Repayment Date, the Final Repayment Date. "Final Repayment Date"
means in relation to each Liquidity Advance under the Liquidity Facility Agreement the last
day of the Term of such Liquidity Advance.
7.2
Notwithstanding Clause 7.1, the Issuer shall be entitled to repay (in part or in full) any principal
amount outstanding under any Liquidity Advance on any Payment Date falling prior to the Final
Repayment Date relating to such Liquidity Advance. For the avoidance of doubt, no prepayment
fee shall be payable when the Issuer exercises its right to repay a Liquidity Advance (in part or in
full) prior to its Final Repayment Date.
7.3
The Issuer shall not repay all or any part of any Liquidity Advance outstanding hereunder except
at the times and in manner expressly provided herein and subject to the terms and conditions
hereof, the Issuer shall be entitled to re-borrow any amount repaid.
8.
REQUIRED RATING OF LIQUIDITY FACILITY PROVIDER
8.1
(a)
As of the date hereof and as long as the short-term unsecured, unsubordinated and
unguaranteed debt obligations of the Liquidity Facility Provider are not rated at least P-1
by Moody's and A-1+ by Standard and Poor's ("Required Rating"), the Liquidity
Facility Provider shall at its option (provided that such option may be re-exercised at any
time at the choice of the Liquidity Facility Provider) either (i) appoint a replacement
liquidity facility provider with the Required Rating (upon consultation with the
Transaction Monitor), provided that such replacement liquidity facility provider may
not be appointed unless it has agreed in writing to assume all duties and obligations
materially in accordance with the duties and obligations of the Liquidity Facility
Provider under this Agreement or (ii) deposit an amount equal to the Commitment to
the Collateral Account by way of a Stand-by Advance to the Issuer (which shall be
repayable as provided in Clause 8.2) or (iii) take any measures in order to provide
security for the Available Commitment which have been confirmed by each of the
Rating Agencies.
(b)
In the case that the short-term unsecured, unsubordinated and unguaranteed debt
obligations of the Liquidity Facility Provider have been assigned the Required Rating
and subsequently cease to be assigned such rating, the Liquidity Facility Provider shall
during a period of 30 business days following such event at its option take any of the
measures set out in Clause 8.1(a)(i) through (iii). If the Liquidity Facility Provider fails
to do so, the Issuer shall, upon the expiration of the 30 business days' period set out in
the preceding sentence, be entitled to fully and immediately draw the Stand-by Advance.
8.2
In case the Liquidity Facility Provider makes a deposit pursuant to Clause 8.1(a)(ii) or Clause
8.1(b) in connection with Clause 8.1(a)(ii), or provides security pursuant to Clause 8.1(a)(iii) or
Clause 8.1(b) in connection with Clause 8.1(a)(iii), it shall be entitled to request the Issuer to
- 126 -
repay such deposit (in parts or in full) or, as the case may be, retransfer the security, on any
Payment Date if and when (i) the Liquidity Facility Provider gains or regains the Required
Rating, (ii) the Legal Maturity Date occurs, (iii) the Class A, Class B, Class C, Class D and Class
E Notes are redeemed in full, (iv) the Liquidity Facility Provider is replaced in this Liquidity
Facility by another liquidity facility provider with the Required Rating or (v) an Event of Default
occurs and the Liquidity Facility Provider has declared that the Liquidity Facility shall be
cancelled.
8.3
Any deposit provided pursuant to Clause 8.1 shall be paid to the cash account of the Issuer
no. 32617303, named the "CB MezzCAP Limited Partnership EUR Collateral Account" to be
held with the Account Bank (the "Collateral Account").
9.
CANCELLATION
On the Liquidity Facility Termination Date, the Available Commitment shall be cancelled and
reduced to zero.
10.
REPRESENTATIONS
The Issuer represents that:
(i)
it is a limited partnership duly formed under the laws of Jersey with power to enter into
each of the Transaction Agreements to which it is expressed to be a party and to exercise
its rights and perform its obligations thereunder and all corporate and other action
required to authorise the execution of and the performance by the Issuer of its
obligations hereunder have been duly taken;
(ii)
under the laws of Jersey which are in force at the date hereof, it will not be required to
make any deduction or withholding from any payment it may make under any of the
Transaction Agreements;
(iii)
in any proceedings taken in Jersey in relation to any of the Transaction Agreements the
choice of German law, and any judgement obtained in the Federal Republic of Germany,
will be recognised and enforced;
(iv)
no Event of Default has occurred and is continuing.
11.
FINANCIAL INFORMATION
11.1
The Issuer shall as soon as the same become available, but in any event within 120 days after the
end of each of its financial years, deliver to the Liquidity Facility Provider upon request a copy
of its audited financial statements for such financial year.
11.2
The Issuer shall ensure that each set of financial statements delivered by it pursuant to
Clause 11.1 (i) is prepared in accordance with accounting principles generally accepted in Jersey
and consistently applied, (ii) is certified by a duly authorised officer of it as giving a true and fair
view of its financial condition as at the end of the period to which those financial statements
relate and of the results of its operations during such period, and (iii) has been audited by an
internationally recognised firm of independent auditors licensed to practise in Jersey.
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12.
COVENANTS
12.1
Positive Covenants
The Issuer shall:
12.2
(i)
obtain, comply with the terms of and do all that is necessary to maintain in full force and
effect all authorisations, approvals, licences and consents required in or by the laws and
regulations of Jersey and any other applicable law to enable it lawfully to enter into and
perform its obligations under each of the Transaction Agreements or to ensure the
legality, validity, enforceability or admissibility in evidence in Jersey in all material
respects of each of them;
(ii)
promptly inform the Liquidity Facility Provider of the occurrence of any event which is
or may become (with the passage of time, the giving of notice, the making of any
determination or any combination thereof) an Event of Default and, upon receipt of a
written request to that effect from the Liquidity Facility Provider, confirm to the
Liquidity Facility Provider that, save as previously notified to the Liquidity Facility
Provider or as notified in such confirmation, no such event has occurred;
(iii)
ensure that no utilisation of the Liquidity Facility occurs which would cause a breach of
any restriction on borrowings or the raising of finance contained in its constitutional
documents;
(iv)
draw any amounts from, and otherwise dispose of, the Collateral Account only in
accordance with the terms of this Agreement; and
(v)
comply with the terms of the Transaction Agreements.
Negative Covenants
The Issuer shall not, without the prior consent of the Liquidity Facility Provider (such consent
not to be unreasonably withheld or delayed provided that each of the Rating Agencies has
confirmed that the giving of such consent does not have any adverse effect on the rating of the
Notes) take any action in contravention of Clause 7.3 of the Trust Agreement.
13.
EVENTS OF DEFAULT; ILLEGALITY; MITIGATION
13.1
Events of Default
If:
(i)
the Issuer fails to pay when due any amount outstanding hereunder in respect of interest
(which is due pursuant to Clause 6.1), principal (which is due pursuant to Clause 7.1) or
Liquidity Facility Commitment Fee (which is due pursuant to Clause 16) and such
failure is not remedied within thirty Business Days after the Liquidity Facility Provider
has given notice thereof to the Issuer, provided, for the avoidance of doubt, that no Event
of Default shall occur in a case where the Issuer makes a drawing hereunder in order to
repay principal amounts due hereunder; or
(ii)
the Issuer is unable to pay its debts as they fall due and the Issuer, being insolvent,
commences negotiations with any one or more of its creditors with a view to the general
readjustment or rescheduling of all or any of its indebtedness, declares a moratorium in
respect of all or any of its indebtedness; or
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(iii)
the Issuer is wound up or dissolved or a receiver, bankruptcy administrator,
administrative receiver, trustee (other than the Trustee), liquidator or sequestrator is
appointed of it or of any or all of its revenues and assets or legal proceedings are
commenced for any of the aforesaid and not discontinued within 30 days, or a
declaration of en désastre is made in respect of its property; or
(iv)
an encumbrancer takes possession or a receiver is appointed, or if any public officer
shall take charge or control of the whole or any substantial part of the undertaking or
assets of the Issuer; or
(v)
a distress, execution, attachment or other similar legal process is levied or enforced upon
or sued out against all or any substantial part of the assets of the Issuer and is not
discharged within thirty days of being levied, enforced or sued out, provided that this
paragraph (v) shall not apply to any action taken by the Trustee; or
(vi)
the Trustee ceases to have a valid and enforceable security interest in the Trustee
Collateral (each event listed in paragraphs (i) through (vi), an "Event of Default");
then, and in any such case and at any time thereafter, the Liquidity Facility Provider may declare
that the Liquidity Facility shall be cancelled whereupon all outstanding Advances shall be
immediately repayable and the Available Commitment shall be reduced to zero.
13.2
Illegality
If at any time it shall become unlawful for the Liquidity Facility Provider to maintain, make,
fund or allow to remain outstanding its Liquidity Facility, then the Liquidity Facility Provider
shall, promptly after becoming aware of the same, deliver to the Issuer, through the Issuer’s Cash
Administrator a certificate to that effect, and unless such illegality is avoided in accordance with
Clause 13.3:
13.3
(i)
the Liquidity Facility Provider shall not thereafter be obliged to make further Liquidity
Advances and the amount of the Available Commitment shall be reduced to zero; and
(ii)
if the Liquidity Facility Provider so requires, the Issuer shall, on such Payment Date as
the Liquidity Facility Provider shall have specified, repay the Liquidity Facility Provider
of any outstanding Advances together with accrued interest thereon and all amounts
owing to the Liquidity Facility Provider hereunder.
Mitigation
If, with respect to the Liquidity Facility Provider, circumstances arise which would, or would
upon the giving of notice, result in the reduction of the Available Commitment to zero then,
without in any way limiting, reducing or otherwise qualifying the obligations of the Issuer under
Clause 13.2 above, the Liquidity Facility Provider shall promptly upon becoming aware of the
same notify the Issuer through the Cash Administrator thereof and, in consultation with the
Issuer and the Rating Agencies, take such steps as are in its opinion reasonable and as may be
open to it to mitigate the effects of such circumstances including (without limitation) the change
of Liquidity Facility Office.
14.
INDEMNITY
14.1
If the Liquidity Facility Provider receives or recovers from the Issuer all or part of a Liquidity
Advance otherwise than on the relevant Payment Date, the Issuer shall pay to the Liquidity
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Facility Provider on demand an amount equal to the amount (if any) by which (i) the additional
interest which would have been payable on the amount so received or recovered had it been
received or recovered on the relevant Payment Date exceeds (ii) the amount of interest which in
the opinion of the Liquidity Facility Provider would have been payable to the Liquidity Facility
Provider on the relevant Payment Date in respect of the amount so received or recovered if
deposited by it with a leading bank accepting such deposits in Frankfurt am Main for a period
starting on the third Business Day following the date of such receipt or recovery and ending on
the relevant Payment Date.
14.2
The Issuer undertakes to indemnify the Liquidity Facility Provider on demand against any cost,
loss or expense, including legal fees, which it may sustain or incur as a consequence of any
default by the Issuer in the performance of any of the obligations expressed to be assumed by it
under this Agreement.
14.3
The Issuer shall not be obliged to indemnify the Liquidity Facility Provider for any cost, loss or
expense incurred under this Agreement which is attributable to the negligence or wilful
misconduct of the Liquidity Facility Provider.
15.
PAYMENTS
15.1
On each date upon which this Agreement requires an amount to be paid by the Issuer or the
Liquidity Facility Provider hereunder, the Issuer or the Liquidity Facility Provider, as the case
may be, shall make the amount available by payment in euro in cleared funds to such account as
the relevant payee may have specified for this purpose, provided that if and to the extent that any
amounts are credited to the Collateral Account, (i) any Liquidity Advances shall be drawn by the
Issuer (acting through the Cash Administrator and subject to the confirmation of the Transaction
Monitor that all conditions for the making of such Liquidity Advance have been met) by debiting
the relevant amount from the Collateral Account and (ii) any repayments by the Issuer of
principal amounts outstanding under any Liquidity Advance shall be made to the Collateral
Account.
15.2
All payments to be made by the Issuer to the Liquidity Facility Provider hereunder shall be made
free and clear of and without deduction for or on account of tax unless the Issuer is required to
make a payment subject to the deduction or withholding of tax imposed subsequent to the date
of this Agreement, in which case the sum payable by the Issuer in respect of which such
deduction or withholding is required to be made shall be increased to the extent necessary to
ensure that, after the making of such deduction or withholding, the Liquidity Facility Provider
receives and retains a net sum equal to the sum which it would have received and so retained had
no such deduction or withholding been made or required to be made.
15.3
Without prejudice to the provisions of Clause 15.2, if the Liquidity Facility Provider is required
to make any payment on account of tax imposed subsequent to the date of this Agreement (not
being a tax imposed on the net income of its Liquidity Facility Office by the jurisdiction in
which it is incorporated or in which its Liquidity Facility Office is located) on or in relation to
any sum received or receivable hereunder by the Liquidity Facility Provider (including, without
limitation, any sum received or receivable under this Clause) or any liability in respect of any
such payment is asserted, imposed, levied or assessed against the Liquidity Facility Provider, the
Issuer shall, upon demand of the Liquidity Facility Provider promptly indemnify it against such
payment or liability, together with any interest, penalties and expenses payable or incurred in
connection therewith.
15.4
If, by reason of any change in, or compliance with, any law, regulation, treaty or official
directive and/or any request or requirement (whether or not having the force of law) relating to
the maintenance of capital, reserves, fees and/or special deposits or any other request from or
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requirement of any central bank or other fiscal, monetary or other authority (including, without
limitation, a request or requirement which affects the manner in which the Liquidity Facility
Provider allocates capital resources to its obligations hereunder) including any change in the
interpretation or administration of any of the same:
(i)
the Liquidity Facility Provider determines in its reasonable commercial opinion that it
(or any holding company of the Liquidity Facility Provider) is unable to obtain the rate
of return on its overall capital which it would have been able to obtain but for the
Liquidity Facility Provider's entering into or assuming or maintaining a commitment or
performing its obligations under this Agreement;
(ii)
the Liquidity Facility Provider determines in its reasonable commercial opinion that it
(or any holding company of the Liquidity Facility Provider) will incur or has incurred a
cost or has suffered or will suffer a reduction in the rate of return on its overall capital as
a result of the Liquidity Facility Provider's entering into or having entered into or
assuming or maintaining a commitment or performing its obligations under this
Agreement or making one or more payments hereunder;
(iii)
there is any increase in the cost to, or reduction in the rate of return on its overall capital
for, the Liquidity Facility Provider or any holding company of the Liquidity Facility
Provider (as determined by the Liquidity Facility Provider in its reasonable commercial
opinion) of assuming or maintaining a commitment or performing its obligations under
this Agreement or making one or more payments hereunder or of funding or maintaining
the Liquidity Facility Provider of the Liquidity Advances or any unpaid sum; or
(iv)
the Liquidity Facility Provider determines that the amount of principal, interest or other
amount payable to it (or any holding company of the Liquidity Facility Provider)
hereunder is reduced or that it (or any holding company of the Liquidity Facility
Provider) has become or will become liable to make any payment for or on account of
tax or otherwise (not being a tax imposed on its net income by the jurisdiction in which
it is incorporated or the branch through which it has made such payment) on or
calculated by reference to the amount of payments made or to be made by it hereunder
and/or by reference to any sum received or receivable by it hereunder,
then the Issuer shall, on the Payment Date immediately following receipt of a request from the
Liquidity Facility Provider, pay to the Liquidity Facility Provider amounts sufficient to
indemnify the Liquidity Facility Provider from and against, as the case may be, (aa) such
reduction in the rate of return of capital (or such proportion of such reduction as is, in the
reasonable opinion of the Liquidity Facility Provider, attributable to its obligations hereunder),
(bb) such cost, (cc) such increased cost (or such proportion of such increased cost as is, in the
opinion of the Liquidity Facility Provider, attributable to its funding or maintaining payments
made hereunder), or (dd) such liability.
16.
LIQUIDITY FACILITY COMMITMENT FEE
On each Payment Date, the Issuer shall pay to the Liquidity Facility Provider a commitment fee
(the "Liquidity Facility Commitment Fee") in an amount equal to 0.0025% of the Available
Commitment as of the immediately preceding Payment Date and subject to that there are funds
available to the Issuer which the Issuer is entitled to apply in accordance with the Priority of
Payments for such purpose.
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17.
STAMP DUTIES
The Issuer shall pay all stamp, registration and other similar taxes to which this Agreement or
any judgement given in connection herewith may at any time become subject subsequent to the
date of this Agreement and shall from time to time on demand of the Liquidity Facility Provider
indemnify the Liquidity Facility Provider against any liabilities, reasonable costs, claims and
expenses resulting from any failure to pay or any delay in paying any such tax.
18.
EVIDENCE OF DEBT
18.1
The Liquidity Facility Provider shall maintain in accordance with its usual practice accounts
evidencing the amounts from time to time lent by and/or owing to it hereunder.
18.2
In any legal action or proceeding arising out of or in connection with this Agreement, the entries
made in the accounts maintained pursuant to Clauses 18.1 shall be prima facie evidence of the
existence and amounts of the obligations of the Issuer therein recorded and, in the case of any
inconsistency, the Liquidity Facility Provider’s records will take precedence.
19.
CONFIDENTIALITY
The Liquidity Facility Provider shall maintain confidential all information provided or caused
to be provided to it by the Issuer in connection with this Agreement, unless the information is
publicly known, has already been known to it before the commencement of negotiations in
respect of the conclusion of this Agreement, is disclosed to it by third parties without breach
of any confidentiality obligations, constitutes information which is disclosed in pursuance of
the Liquidity Facility Provider's claims hereunder, or is to be disclosed or communicated due
to statutory, public authorities’ or judicial requirements. The Liquidity Facility Provider shall
be entitled to furnish information which is to be maintained confidential to the other parties to
the Transaction Agreements in connection with the performance of its obligations hereunder
and to third parties to the extent so permitted herein, but always subject to the applicable
statutory rules of data secrecy.
20.
LIMITED RECOURSE AND NON-PETITION; DEFERRAL OF PAYMENTS
20.1
All payment obligations of the Issuer hereunder constitute exclusively obligations to make
payments in an amount limited to any credit on the Issuer Accounts (as defined in the Trust
Agreement) and proceeds from the assets being the subject of the Trustee Collateral (as
defined in the Trust Agreement) pursuant to the Trust Agreement and the other Transaction
Documents, in each case in accordance with and subject to the Priority of Payments (as
defined below). Funds available for such payments will be generated by, and limited to,
notably payments received in respect of the Participation Rights. This Agreement shall not
give rise to any payment obligation in excess of the foregoing and recourse shall be limited
accordingly.
To the extent that such assets, or the proceeds from the realisation thereof, prove ultimately
insufficient to satisfy the claims of the Liquidity Facility Provider in full, then any shortfall
arising shall be extinguished and the Liquidity Facility Provider shall have no further claims
against the Issuer, provided that the foregoing shall be without prejudice to any termination
rights. Such assets and proceeds shall be deemed to be "ultimately insufficient" at such time
when, in the reasonable opinion of the Trustee, no further assets are available and no further
proceeds can be realised therefrom to satisfy any outstanding claim of the Liquidity Facility
Provider, and neither assets nor proceeds will be so available thereafter.
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The Liquidity Facility Provider shall not take steps against the Issuer, the General Partner or
the Limited Partner to recover any sum so unpaid and, in particular, the Liquidity Facility
Provider shall not petition or take any other step or action for the winding up, examinership,
liquidation or dissolution of the Issuer, the General Partner or the Limited Partner, nor for the
appointment of a liquidator, examiner, receiver or other person in respect of the Issuer, the
General Partner or the Limited Partner, or the assets of the aforementioned, until after the
expiry of a period of one year and one day following the payment of all amounts payable
under the Terms and Conditions of the Notes.
No recourse under any obligation, covenant, or agreement of any party contained in this
Agreement shall be had against any shareholder, member, officer or director of the Issuer, its
General Partner and its Limited Partner as such, by the enforcement of any assessment or by
any proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood
that this Agreement constitutes limited liability obligations of the Issuer, and no personal
liability shall attach to or be incurred by the shareholders, members, officers, agents or
directors of the Issuer, its General Partner and its Limited Partner as such, or any of them,
under or by reason of any of the obligations, covenants or agreements of the Issuer contained
in this Agreement, or implied therefrom, and that any and all personal liability for breaches by
the Issuer of any of such obligations, covenants or agreements, either at law or by statute or
constitution (whether in contract, tort or otherwise), of every such shareholder, member,
officer, agent or director is hereby expressly waived (to the extent permitted by applicable
law) by the other party to this Agreement as a condition of and consideration for the execution
of this Agreement.
"Priority of Payments" has the meaning given to it in Section 2.3 of the Terms and
Conditions.
20.2
Payment of all amounts accrued hereunder shall be deferred until the first Payment Date
(without any interest thereon or any additional payments to be made by the Issuer in respect of
such deferred amounts), and shall become due and payable (but only if and to the extent that
there are funds available to the Issuer in accordance with the Priority of Payments) on such
Payment Date. If and to the extent any deferred amounts do not become due and payable on such
Payment Date because insufficient funds are available to the Issuer in accordance with the
Priority of Payments, the Issuer shall pay such amounts on the next Payment Date on which it
has funds available therefor in accordance with the Priority of Payments.
21.
COMMUNICATIONS
All communications hereunder shall be made in English by mail or by fax, provided that
notices regarding the termination of this Agreement given by fax shall be confirmed by mail.
Subject to written notification of any change of address, all communications hereunder shall
be directed to the following addresses:
(i)
if to the Liquidity Facility Provider:
Kaiserstr. 30
60261 Frankfurt am Main
Germany
Attention:
Klaus Wilhelm Walter
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(ii)
if to the Issuer:
26 New Street
St. Helier
Jersey JE2 3RA
Channel Islands
Attention:
Telephone:
Telefax:
The Directors
+44 1534 824 121
+44 1534 814 815
acting in its capacity as Transaction Monitor
London EC3V 0HR
United Kingdom
Attention:
Telephone:
Telefax:
CB MezzCAP
+44 20 7469 3206
+44 20 7469 3218
22.
AMENDMENTS; ASSIGNMENT
22.1
This Agreement (including this Clause 22.1) may only be amended by agreement of all parties
hereto in writing. The parties hereto shall only agree to any amendment hereto subject to the
prior written consent of the Trustee.
22.2
The Liquidity Facility Provider may, at any time, assign all or any of its rights and benefits
hereunder or transfer all or any of its rights, benefits and obligations hereunder (i) to any
subsidiary or holding company, or any subsidiary of any holding company, of the Liquidity
Facility Provider provided that such assignee's or transferee's obligations hereunder are
unconditionally and irrevocably guaranteed in all respects by the Liquidity Facility Provider
during the term hereof or (ii) to another financial institution, provided in each case that such
assignment or transfer may only be made subject to the prior confirmation of each of the Rating
Agencies that the then current ratings of the Notes would not be downgraded or withdrawn due
to the proposed assignment or transfer.
22.3
The Issuer hereby gives notice to the Liquidity Facility Provider that it has pursuant to the
Trust Agreement pledged to the Trustee all its present and future, actual and contingent claims
and rights arising hereunder for the due discharge of the Trustee Claim as defined in the Trust
Agreement. The Liquidity Facility Provider thereby acknowledges the receipt of the above
notice of, and agrees to, such pledge and confirms that it has knowledge of the provisions of
the Trust Agreement relating thereto. The Liquidity Facility Provider thereby waives any
security interest relating to the claims being the subject of the pledge, and confirms that it is
not aware of any rights of third parties in respect of such claims.
22.4
Neither party may assign, encumber or otherwise deal with all or a portion of its rights or
obligations hereunder except as permitted herein or in the other Transaction Documents.
23.
SEVERABILITY
23.1
If any provision of this Agreement is or becomes invalid in whole or in part, the remaining
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provisions shall remain unaffected thereby. Invalid provisions shall be replaced by such valid
provisions which taking into consideration the purpose and intent of this Agreement have to
the extent legally possible the same economic effect as the invalid provisions. The foregoing
provisions shall apply mutatis mutandis with regard to any lacunae (Vertragslücken) in this
Agreement.
23.2
Each party to this Agreement undertakes vis-à-vis the respective other party to take all actions
that become necessary pursuant to Clause 23.1 or for other reasons to implement this
Agreement.
24.
GOVERNING LAW; JURISDICTION
24.1
This Agreement shall be governed by, and construed in accordance with, the laws of the
Federal Republic of Germany.
24.2
The non-exclusive place of jurisdiction for any action or other legal proceedings arising out of
or in connection with this Agreement shall be the District Court (Landgericht) in Frankfurt am
Main. The Issuer hereby submits to the jurisdiction of such court. The Issuer has appointed
FIDEUROP Treuhandgesellschaft für den Gemeinsamen Markt mbH, Wirtschaftsprüfungsgesellschaft, with its current seat at Bockenheimer Anlage 15, Mozartplatz, 60322 Frankfurt
am Main, Federal Republic of Germany, as its agent who is authorised to receive service of
process in relation to any legal proceedings initiated before a German court. The Issuer shall
maintain an agent for service of process in the Federal Republic of Germany during the term
of this Agreement.
25.
CONDITION PRECEDENT
The amendment and restatement of this Agreement dated 11 April 2006 shall take effect
subject to the condition precedent (aufschiebende Bedingung) that the Notes will be issued
and that the Issuer's claim for the payment of the subscription moneys for the Notes will be
satisfied pursuant to the Subscription Agreement.
26.
COUNTERPARTS
This Agreement may be executed in one or more counterparts. Each signed counterpart shall
constitute an original, but all of which together shall constitute one and the same agreement.
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CERTAIN OTHER TRANSACTION AGREEMENTS
The following is a summary of certain Transaction Agreements which is necessarily incomplete.
Prospective investors are advised to review the full text of all Transaction Agreements which are
available at the specified offices of the Lead Manager.
1.
FINANCIAL ADVISORY AGREEMENT
Obligations of the Financial Advisor
Pursuant to the Financial Advisory Agreement entered into between the Issuer and the Financial
Advisor, the Financial Advisor shall perform the following obligations:
Prior to the closing date of the Bridge Facility, the Financial Advisor shall (i) provide
information to and support the Issuer (with a copy to the Investment Board) with the selection
of such companies which it considers suitable to form part of the portfolio of Participation
Rights exclusively based on Moody's KMV industry classification and a rating classification on
the basis of Moody's KMV credit assessment as well as a rating by Commerzbank
Aktiengesellschaft and (ii), upon instructions of the Issuer, arrange for the necessary steps in
relation to the execution of the Participation Right Agreements.
Subsequent to the closing date of the Bridge Facility, the Financial Advisor shall (i) monitor the
performance of the Companies, in particular by checking the year-end figures and other
information with regard to the transaction and in connection with the Companies, (ii) inform the
Issuer, the Trustee, the Investment Board and the Transaction Monitor of any events which
trigger additional information rights of the Issuer under the Participation Right Agreements, (iii)
in the case of (ii) above, provide information and make proposals to the Issuer (with a copy to
the Investment Board) in relation to the exercise or non-exercise of the Issuer's additional
information rights under the Participation Right Agreements, and if the Issuer exercises any of
its additional information rights under the Participation Right Agreements such as the activation
of the Recovery Advisor, advise the Issuer in relation thereto, (iv) monitor the performance of
the Recovery Advisor, (v) based upon the advice of the Recovery Advisor, provide information
and make proposals to the Issuer (with a copy to the Investment Board) in relation to the
termination of any Participation Right Agreements and the disposal of Participation Rights, and
(vi) provide information and make proposals to the Issuer (with a copy to the Investment Board)
in relation to any other material matters relating to the administration of the portfolio of
Participation Right Agreements.
General Terms of Appointment
The Financial Advisor shall perform its obligations under the Financial Advisory Agreement
with the standard of care of a prudent merchant (Sorgfalt eines ordentlichen Kaufmanns).
The Financial Advisor shall have no obligation or authority under the Financial Advisory
Agreement to perform any duties other than those referred to or as specified therein. The
Financial Advisor undertakes not to engage itself in any activities for the benefit of the Issuer
other than rendering the advisory services specified in the Financial Advisory Agreement and in
particular, shall not take any business or management decisions on behalf of the Issuer. The
Financial Advisor shall have no power of attorney to make any declarations binding on the
Issuer or to act as any form of branch, agency or representation of the Issuer nor to direct,
administer or manage any part of the business of the Issuer.
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The Financial Advisor shall be entitled to rely upon, and shall not incur any liability for relying
upon, (i) any notice, request, certificate, consent, statement, instrument, document or other
writing believed by it to be genuine and to have been signed or sent by the proper person, and
(ii) any statement made to it orally or by telephone and believed by it to be made by the proper
person. The Financial Advisor may consult with legal counsel, accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it in respect of its
obligations under the Financial Advisory Agreement in good faith in accordance with the
advice of any such counsel, accountants or other experts, provided that is has exercised due
care in the selection of the relevant expert.
The Financial Advisor may at its own cost delegate the performance of its obligations under the
Financial Advisory Agreement, in whole or in part, to vicarious agents (Erfüllungsgehilfen,
§ 278 of the German Civil Code (Bürgerliches Gesetzbuch)). A more extensive delegation of its
duties is not permitted. The exculpatory provisions contemplated in this subsection entitled
"General Terms of Appointment" shall apply to any such agent.
The services of the Financial Advisor to be rendered under the Financial Advisory Agreement
are non-exclusive. Nothing in the Financial Advisory Agreement shall prevent the Financial
Advisor or any of its affiliates from engaging in other businesses, as principal or in an advisory
or other capacity with, or have any economic interests in or other relationships with any other
person. In particular, the Financial Advisor or its affiliates may (i) render services similar to the
services to be rendered under the Financial Advisory Agreement to any person, (ii) engage in
negotiations leading to the restructuring of investments held for their own account or for the
account of others in obligors under the Participation Right Agreements, without any duty to act
in any way which is favourable to the interests of the Issuer or the Noteholders, (iii) acquire or
provide advisory or other services in respect of investments ranking pari passu, senior or junior
to an investment held by the Issuer, or have any other economic interests in or other
relationships with the relevant obligor. Each of the foregoing may give rise to conflicts of
interest. In such instances, the Financial Advisor and its affiliates may in their discretion make
investment proposals, take decisions or otherwise act in a way that may be the same as or
different from actions under the Financial Advisory Agreement with respect to the Issuer's
investments. The Financial Advisor may refrain from any action under the Financial Advisory
Agreement which, in the sole discretion of the Financial Advisor, would give rise to a conflict
of interest.
The Financial Advisor shall comply in all material respects with all applicable laws and orders
to which it may be subject if failure so to comply would materially impair its ability to perform
its obligations under the Financial Advisory Agreement.
Unless otherwise specifically required in the Financial Advisory Agreement or by applicable
law, the Financial Advisor shall use reasonable efforts not to take any action that it knows (i) is
not permitted under the Issuer's partnership agreement, (ii) would violate any law, rule or
regulation of any governmental body or agency having jurisdiction over the Issuer the violation
of which has or could reasonably be expected to have a material adverse effect on the Issuer,
any Participation Right Agreement or the Noteholders, or (iii) would result in the Issuer
violating the Terms and Conditions or the terms of any agreement to which it is a party.
Fees and Expenses
On each Payment Date, the Issuer shall pay to the Financial Advisor a fee, and shall reimburse
any costs and expenses, as separately agreed between the Issuer and the Financial Advisor.
Limitation of responsibility; Indemnity
The Financial Advisor shall be liable for its acts or omissions under or in connection with the
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Financial Advisory Agreement only if and to the extent that such acts or omissions constitute an
intentional or negligent (vorsätzliche oder fahrlässige) breach of its obligations thereunder. The
Financial Advisor shall not be liable for indirect damages (mittelbare Schäden) of any kind
whatsoever (including but not limited to lost profits), unless the Financial Advisor has acted
intentionally. The Financial Advisor has not made any investigation into the matters of the
Companies, including into matters which could be considered in connection with the assessment
of a qualitative credit rating. Accordingly, the Financial Advisor will not assume any liability in
connection with the potential inability of the Companies to meet their payment obligations
under the Participation Right Agreements. The Financial Advisor shall not be liable to the Issuer
for any error of judgement in connection with the performance of the Financial Advisor's
services under the Financial Advisory Agreement.
Subject to the provisions of the Financial Advisory Agreement, the Issuer shall indemnify the
Financial Advisor and its affiliates against all losses, liabilities, obligations (including any taxes
other than taxes on the Financial Advisor's and its affiliates' overall income or gains which are
imposed in the future on the services under the Financial Advisory Agreement), actions in and
out of court and costs and disbursements in connection with the foregoing incurred by the
Financial Advisor or its affiliates in connection with the Financial Advisory Agreement, unless
such losses, liabilities, obligations, actions, costs and disbursements are incurred due to the
Financial Advisor's intentional or negligent breach of its obligations thereunder. The obligations
of the Issuer set out in this paragraph shall survive the termination of the Financial Advisory
Agreement.
Termination
The Financial Advisory Agreement shall automatically terminate upon the redemption in full of
the Notes.
The Financial Advisory Agreement may be terminated without cause by the Financial Advisor
by giving at least 30 calendar days' prior written notice to the Issuer.
The Financial Advisory Agreement may be terminated by the Issuer for cause by giving at least
10 Business Days' prior written notice to the Financial Advisor upon the occurrence of any of
the following events: (i) a breach by the Financial Advisor of any of its obligations under the
Financial Advisory Agreement which is materially prejudicial to the interest of the
Noteholders, if such breach remains uncured for 30 calendar days after written notice thereof is
given; (ii) the Financial Advisor is unable to pay its debts as they fall due (zahlungsunfähig) or
is overindebted (überschuldet), becomes subject to insolvency proceedings, a motion to
institute such proceedings is filed and not discharged within 90 days, or such proceedings are
not instituted for lack of assets; (iii) any representation made by the Financial Advisor under
the Financial Advisory Agreement proves to have been materially incorrect or materially
misleading when made; (iv) the Financial Advisor is no longer legally authorised to carry out
its duties under the Financial Advisory Agreement; (v) an action by the Financial Advisor in
connection with its business which constitutes fraud or criminal activity or any of its principal
decision makers in connection with the Financial Advisory Agreement has been indicted for a
criminal offence materially related to its business of providing financial advisory services.
Any termination notice shall become effective on the day a replacement financial advisor is
appointed. In the case of any termination notice given under the Financial Advisory Agreement,
the Issuer shall use its best efforts to appoint a replacement financial advisor. The Issuer, after
consultation with the Transaction Monitor, shall procure that the replacement financial advisor
be a person which (i) has demonstrated an ability to perform professionally and competently
duties similar to those imposed upon the Financial Advisor under this Agreement and has a
substantially similar (or higher) level of expertise, (ii) is legally qualified and has the capacity to
act as financial advisor under this Agreement, as successor to the Financial Advisor hereunder
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in the assumption of all the duties, responsibilities and obligations of the Financial Advisor
hereunder and under the other Transaction Documents to which the Financial Advisor is a party,
and (iii) will perform its duties as financial advisor under this Agreement without causing the
Issuer or any Noteholder to become subject to tax in any jurisdiction where such replacement
financial advisor is established or doing business. No such replacement financial advisor may be
appointed unless (i) it has agreed in writing to assume all of the Financial Advisor's duties and
obligations under the Financial Advisory Agreement, (ii) the Trustee has given its prior written
consent and (iii) if Notes have been issued, the Rating Agencies have confirmed that the then
current rating of the Notes would not be downgraded or withdrawn as a consequence of such
appointment. The Financial Advisor shall take such action consistent with the Financial
Advisory Agreement and reasonably required by the Trustee as shall be necessary to effect any
such replacement.
Nothing in the Financial Advisory Agreement shall prejudice any right of a party thereto to
terminate such Agreement for good cause (aus wichtigem Grund) as a matter of mandatory law.
2.
RECOVERY ADVISORY AGREEMENT
Obligations of the Recovery Advisor
Pursuant to the Recovery Advisory Agreement entered into between the Issuer, the Recovery
Advisor and the Disposal Advisor (together, the "Advisors"), the Recovery Advisor shall
perform the following obligations:
Following each request of the Issuer to render recovery advice in respect of a specified
Company and the related Participation Right Agreement, and subject to the Issuer's specific
instructions, the Recovery Advisor shall (i) procure all information it deems relevant in its
reasonable discretion for a recovery analysis of the relevant Company, in particular (aa) provide
a detailed requirement list to the management board of the relevant Company; this list may in
particular include annual reports, management reports, auditor's and other consultant's reports,
shareholder overviews as well as minutes of board meetings and other committees; the
Recovery Advisor shall require the management board of the relevant Company to confirm the
completeness of the submitted information; (bb) conduct discussions with the management
board and the advisors of the relevant Company (e.g. legal advisors, management consultants
and tax advisors); (cc) inspect the internal financial reports (including liquidity planning),
minutes and resolutions of the management board and the minutes and resolutions of the
supervisory board, the advisory council and the shareholders' meeting (in each case to the extent
applicable and permissible by law); and/or (dd) inspect the material contracts and documents
and review the material transactions of the relevant Company; (ii) based on the information
obtained pursuant to (i) above and together with any information which may be supplied by or
on behalf of the Issuer, prepare a presentation on the relevant Company's economic condition;
(iii) based on the analysis and evaluation on the relevant Company's economic condition,
prepare a written evaluation of potential courses of action; (iv) prepare a written
recommendation regarding the preferred course of action, in particular (aa) possible
restructuring alternatives in respect of the relevant Company, (bb) a potential disposal of the
relevant Participation Right Agreement or (cc) a possible termination of the relevant
Participation Right Agreement.
The Recovery Advisor shall submit the presentations, evaluations and recommendations
referred to in the preceding paragraph to the Issuer with a copy to the Investment Board, the
Financial Advisor and the Transaction Monitor.
For the purpose of performing such services, the Recovery Advisor shall be authorised to
exercise the Issuer's information rights under the relevant Participation Right Agreements. The
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Recovery Advisor's interaction with the Companies shall be limited to the exercise of such
information rights, and under no circumstances shall the Recovery Advisor exercise any
influence on the management of the Companies. The Issuer acknowledges that the quality of the
Recovery Advisor's analysis strongly correlates to the quality and timeliness of the information
provided by the relevant Companies.
Obligations of the Disposal Advisor
Pursuant to the Recovery Advisory Agreement, the Disposal Advisor shall perform the
following obligations:
Following each decision of the Issuer to dispose of a Participation Right Agreement and request
of the Issuer to render disposal advice, and subject to the Issuer's specific instructions, the
Disposal Advisor shall (i) organise and coordinate the disposal process; (ii) prepare an
information memorandum; (iii) select, contact and liaise with suitable national and/or
international potential acquirers; (iv) promptly answer questions of potential acquirers and
provide support to the Issuer, its agents and advisors in connection with the disposal process;
(v) procure binding offers and evaluate such offers, (v) negotiate the terms of disposal and
(iv) following the decision of the Issuer on the preferred acquirer and the terms of disposal,
advise the Issuer with respect to the preparation, execution and closing of the disposal of the
relevant Participation Right Agreement.
If the Issuer is or shall become aware of potential acquirers independently of the Disposal
Advisor's services, it shall notify such potential acquirers to the Disposal Advisor for the
purpose of inclusion in a co-ordinated disposal process.
During the term of the Recovery Advisory Agreement, the Issuer shall refrain from conducting
disposal activities independent from and competing with the disposal advisory services rendered
by the Disposal Advisor.
Auction Call
Upon the decision and request of the Issuer on or subsequent to the Payment Date falling in
April 2013 to effect an auction call in accordance with the following sentences (the "Auction
Call"), and subject to the Issuer's specific instructions, the Disposal Advisor shall organise a
disposal process for the entire remaining portfolio of Participation Right Agreements of the
Issuer. The provisions of the Recovery Advisory Agreement governing the obligations of the
Disposal Advisor (as described above) shall apply mutatis mutandis. The Disposal Advisor shall
use its best efforts in order to achieve the satisfaction of the conditions for closing an Auction
Call stipulated in the following paragraph.
The Issuer may only close an Auction Call and dispose of its Participation Right Agreements
subject to each of the following conditions precedent being satisfied: (i) the occurrence of the
Payment Date falling in April 2013; (ii) the Issuer has received a binding offer for the entire
acquisition of each Participation Right Agreement to which it is then a party, such price to be
paid in immediately available funds on the Business Day immediately preceding the proposed
redemption date of the Notes; (iii) the aggregate purchase price of such binding offers (net of
any fees, costs and taxes payable in connection with such disposal) (the "Expected Purchase
Price") exceeds the sum of (aa) the aggregate Note Principal Amount of the Class A, Class B,
Class C, Class D and Class E Notes and (bb) any accrued but unpaid interest amounts thereon at
the proposed redemption date of such Notes pursuant to the Terms and Conditions following the
closing of the Auction Call and (cc) all expected payments to be made by the Issuer on such
date which rank senior to the Class A Notes pursuant to Section 2.3 of the Terms and
Conditions of the Notes; (iv) each of the persons making a binding offer referred to in (ii) above
has a credit rating of its short-term unsecured debt obligations of at least "P-1" by Moody's and
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"A-1+" by Standard & Poor's or its obligations arising under the relevant binding offer (when
accepted by the Issuer) are irrevocably and unconditionally guaranteed by a party with such
rating; and (v) unless the Expected Purchase Price exceeds the sum of (aa) the aggregate Note
Principal Amount of the Class A, Class B, Class C, Class D, Class E and Class F Notes and (bb)
any accrued but unpaid interest amounts thereon at the proposed redemption date of such Notes
pursuant to the Terms and Conditions following the closing of the Auction Call and (cc) all
expected payments to be made by the Issuer on such date which rank senior to the Class A
Notes pursuant to Section 2.3 of the Terms and Conditions of the Notes, each of the Class F
Noteholders has given its irrevocable consent to the Auction Call.
The Issuer shall apply the net proceeds from the Auction Call and the realisation of Permitted
Investments (as defined in the Cash Administration Agreement) disposed of by the Cash
Administrator pursuant to the Cash Administration Agreement and all other available funds of
the Issuer in accordance with Section 2.3 of the Terms and Conditions of the Notes towards the
redemption of the Notes.
The Issuer shall not dispose of any Participation Right Agreement other than set forth in the
preceding paragraphs unless the Issuer is entitled to additional information rights under the
relevant Participation Right Agreement pursuant to Clause 11.2(b)(iii) thereunder (in the case of
Participation Right Agreements Type A) or Clause 9.2(b)(iii) thereunder (in the case of
Participation Right Agreements Type B).
Each Advisor shall perform its obligations under the Recovery Advisory Agreement with the
standard of care of a prudent merchant (Sorgfalt eines ordentlichen Kaufmanns).
Each Advisor undertakes not to engage itself in any activities for the benefit of the Issuer other
than rendering the advisory services specified in the Recovery Advisory Agreement and in
particular, shall not take any business or management decisions on behalf of the Issuer. Each
Advisor shall have no power of attorney to make any declarations binding on the Issuer or to act
as any form of branch, agency or representation of the Issuer nor to direct, administer or manage
any part of the business of the Issuer. The Advisors will not provide any legal advisory services.
In the event that any of the Advisors should be prevented from performing its obligations under
the Recovery Advisory Agreement due to a conflict of interests determined pursuant to the
standards of its internal risk management or applicable law (e.g. in connection with its
appointment as the auditor of a Company), the relevant Advisor may at its own cost delegate the
performance of its obligations thereunder, to the extent required to avoid such conflict of
interests, to a suitable third party approved by the Issuer and the Trustee (such approval not to
be unreasonably withheld). In the case of any delegation made in accordance with the preceding
sentence, the delegating Advisor shall only be liable for the diligent selection of the delegee.
Any other delegation of the Advisors' duties under the Recovery Advisory Agreement is not
permitted.
The services of each Advisor to be rendered under the Recovery Advisory Agreement are nonexclusive. Nothing in the Recovery Advisory Agreement shall prevent each Advisor or any of
its affiliates from providing similar services as the services to be rendered thereunder, or
engaging in other businesses, as principal or in an advisory or other capacity with other persons.
Each Advisor shall comply in all material respects with all applicable laws and orders to which
it may be subject if failure so to comply would materially impair its ability to perform its
obligations under the Recovery Advisory Agreement.
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Unless otherwise specifically required in the Recovery Advisory Agreement or by applicable
law, each Advisor shall use reasonable efforts not to take any action that it knows (i) is not
permitted under the Issuer's partnership agreement, (ii) would violate any law, rule or
regulation of any governmental body or agency having jurisdiction over the Issuer the violation
of which has or could reasonably be expected to have a material adverse effect on the Issuer,
any Participation Right Agreement or the Noteholders, or (iii) would result in the Issuer
violating the Terms and Conditions or the terms of any other Transaction Document to which it
is a party.
The standard terms and conditions of the Recovery Advisor shall apply in respect of the
appointment of the Recovery Advisor under the Recovery Advisory Agreement and the
standard terms and conditions of the Disposal Advisor shall apply in respect of the appointment
of the Disposal Advisor under the Recovery Advisory Agreement, provided that in the case of
conflicting provisions, the provisions of the Recovery Advisory Agreement shall take
precedence.
Fees and Expenses
On each Payment Date, the Issuer shall pay to each Advisor a fee, and shall reimburse any costs
and expenses, as separately agreed between the Issuer and each Advisor.
Limitation of Responsibility; Indemnity
Each Advisor shall be liable for its acts or omissions under or in connection with the Recovery
Advisory Agreement only if and to the extent that such acts or omissions constitute an
intentional or negligent (vorsätzliche oder fahrlässige) breach of its obligations thereunder,
provided that the Advisors shall not be liable for simple negligence (einfache Fahrlässigkeit) to
the extent that core contractual obligations (wesentliche Vertragspflichten) are not affected. The
Advisors shall not be liable for (i) atypical (vertragsuntypische) and unpredictable
(unvorhersehbare) damages and (ii) the correctness and completeness of any information
provided to them by the Issuer or third parties. The Advisors shall be liable for oral advice only
to the extent confirmed in writing. The Advisors shall have no duties and consequently, no
liability towards the Financial Advisor, the Investment Board and the Transaction Monitor. The
liability for intentional actions (vorsätzliche Handlungen) shall be unprejudiced by the
provisions set out in this paragraph.
To the extent permitted by law, the aggregate liability of the Disposal Advisor under the
Recovery Advisory Agreement for negligence (Fahrlässigkeit) shall be limited to EUR 500,000.
The liability of the Advisors under the Recovery Advisory Agreement shall be limited as
stipulated in their respective terms and conditions attached thereto.
The Issuer shall indemnify each Advisor against all losses, liabilities, obligations (including any
taxes other than taxes on the relevant Advisor's overall income or gains which are imposed in
the future on the services under the Recovery Advisory Agreement), actions in and out of court
and costs and disbursements in connection with the foregoing incurred by the relevant Advisor
in connection with the Recovery Advisory Agreement, if and to the extent that the relevant
Advisor is not liable for the cause of such losses, liabilities, obligations, actions, costs and
disbursements pursuant to the provision of the Recovery Advisory Agreement. The obligations
of the Issuer described in this paragraph shall survive the termination of the Recovery Advisory
Agreement
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Termination
The Recovery Advisory Agreement shall automatically terminate upon the redemption in full of
the Notes.
Without prejudice to the preceding paragraph, the Recovery Advisory Agreement may be
terminated by each party thereto for good cause (aus wichtigem Grund) only by giving
30 business days' notice thereof to the respective other party. Good cause for the termination by
the Issuer of an appointment of an Advisor under the Recovery Advisory Agreement shall be
constituted, in particular and without limitation, upon the occurrence of any of the following
events: (i) a breach by the relevant Advisor of any of its obligations under the Recovery
Advisory Agreement which is materially prejudicial to the interest of the Issuer or the
Noteholders, if such breach remains uncured for 30 calendar days after written notice thereof is
given; (ii) the relevant Advisor is unable to pay its debts as they fall due (zahlungsunfähig) or is
overindebted (überschuldet), becomes subject to insolvency proceedings, a motion to institute
such proceedings is filed and not discharged within 90 days, or such proceedings are not
instituted for lack of assets; (iii) any representation made by the relevant Advisor under the
Recovery Advisory Agreement proves to have been materially incorrect or materially
misleading when made; (iv) the relevant Advisor is no longer legally authorised to carry out its
duties under the Recovery Advisory Agreement; or (v) an action by any of the Advisors' in
connection with its business which constitutes fraud or criminal activity of any of the Advisors
or any of the Advisors' principal decision makers in connection with the Recovery Advisory
Agreement have been indicted for a criminal offence materially related to its business of
providing recovery or, as the case may be, disposal advisory services.
Any termination notice shall become effective on the day a replacement Advisor is appointed.
In the case of any termination notice given under the Recovery Advisory Agreement or the
termination of the appointment of an Advisor thereunder for other reasons, the Issuer shall use
its best efforts to appoint a replacement Advisor. The Issuer, after consultation with the
Transaction Monitor, shall procure that the replacement advisor be a person which (i) has
demonstrated an ability to perform professionally and competently duties similar to those
imposed upon the terminated Advisor under this Agreement and has a substantially similar (or
higher) level of expertise, (ii) is legally qualified and has the capacity to act as advisor under
this Agreement, as successor to any of the Advisors hereunder in the assumption of all the
duties, responsibilities and obligations of such Advisor hereunder and under the other
Transaction Documents to which the Advisor is a party, and (iii) will perform its duties as
advisor under this Agreement without causing the Issuer or any Noteholder to become subject to
tax in any jurisdiction where such replacement advisor is established or doing business. No such
replacement Advisor may be appointed unless (i) it has agreed in writing to assume duties and
obligations materially corresponding to those of the terminated Advisor under the Recovery
Advisory Agreement and (ii) the Trustee has given its prior written consent. The terminated
Advisor shall take such action consistent with the Recovery Advisory Agreement and
reasonably required by the Trustee as shall be necessary to effect any such replacement.
Nothing in the Recovery Advisory Agreement shall prejudice any right of a party thereto to
terminate such Agreement for good cause (aus wichtigem Grund) as a matter of mandatory law.
3.
TRANSACTION MONITORING AGREEMENT
Obligations of the Transaction Monitor
Pursuant to the Transaction Monitoring Agreement entered into between the Issuer and the
Transaction Monitor, the Transaction Monitor shall perform the following services: (i) monitor
the performance of the parties to the Transaction; (ii) perform the annual calculation of default
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probabilities for Moody’s KMV RiskCalc (such calculation to be verified by Moody's KMV)
and Standard and Poor's Credit Risk Tracker (CRT) in respect of each Company after the
respective current annual report is available and provide a summary annual report containing
such information when available to the Issuer, the Financial Advisor, the Recovery Advisor, the
Disposal Advisor and the Trustee; (iii) inform the Issuer, the Trustee, the Recovery Advisor, the
Disposal Advisor and the Financial Advisor if it becomes aware of (aa) rating trigger breaches
under the Participation Right Agreements or (bb) payment obligations of Companies not
having come into existence under the Participation Right Agreements Type A due to a lack of
sufficient free assets; (iv) carry out transaction reporting in a format separately agreed with the
Issuer; (v) reasonably co-operate with, and provide assistance to, the Cash Administrator in the
fulfillment of its duties under the Cash Administration Agreement; (vi) if the Transaction
Monitor becomes aware that the Issuer is entitled to terminate the appointment of the Financial
Advisor, Trustee, Cash Administrator, Account Bank, Recovery Advisor, Disposal Advisor or
any of the Paying Agents, or any such appointment has terminated, or upon the request of the
Issuer, the Transaction Monitor shall search and recommend a successor in such capacity to the
Issuer, and upon the decision of the Issuer to appoint a certain successor party, effect such
appointment on behalf of the Issuer; (vii) calculate the amounts available to the Issuer to be
drawn, and instruct the Cash Administrator to effect such drawdowns on behalf of the Issuer
under the Tax Liquidity Facility Agreement; (viii) maintain the Principal Deficiency Ledger on
behalf of the Issuer in accordance with the provisions of Section 7.3 of the Terms and
Conditions; (ix) give instructions to the Cash Administrator to invest amounts (other than an
amount equal to the aggregate Swap Collateral) credited to the accounts of the Issuer in
specified Permitted Investments or dispose of specified Permitted Investments in accordance
with the provisions of the Cash Administration Agreement, provided that the aggregate amount
per annum of such investments shall not exceed 20% of the assets (Vermögen) of the Issuer; and
(x) provide the Issuer with the fair values of (a) the Participation Rights on the basis of the
verified calculations based on the Moody’s KMV RiskCalc model and (b) the swap to be
entered into by the Issuer from its own credit risk department and to procure the provision of the
fair value of the swap determined by the swap counterparty as of each 31 December, provided
that such services are subject to the requirements of Standard and Poor's in respect of mark-tomarket procedures and external verifications as set out in the Hedging Agreement.
The Transaction Monitor shall perform its services pursuant to the Transaction Monitoring
Agreement exclusively out of London and any delegation set out in the following subsection
entitled "General Terms of Appointment" shall be made exclusively to an agent which performs
its services outside of Germany.
The Transaction Monitor shall perform its obligations under the Transaction Monitoring
Agreement with the standard of care of a prudent merchant (Sorgfalt eines ordentlichen
Kaufmanns).
The Transaction Monitor shall have no obligation or authority under the Transaction Monitoring
Agreement to perform any duties other than those referred to or as specified therein. The
Transaction Monitor undertakes not to engage itself in any activities for the benefit of the Issuer
other than rendering the advisory services specified in the Transaction Monitoring Agreement.
The Transaction Monitor shall have no power of attorney to make any declarations binding on
the Issuer or to act as any form of branch, agency or representation of the Issuer nor to direct,
administer or manage any part of the business of the Issuer.
The Transaction Monitor shall be entitled to rely upon, and shall not incur any liability for
relying upon, (i) any notice, request, certificate, consent, statement, instrument, document or
other writing believed by it to be genuine and to have been signed or sent by the proper person,
and (ii) any statement made to it orally or by telephone and believed by it to be made by the
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proper person. The Transaction Monitor may consult with legal counsel, accountants and other
experts selected by it, and shall not be liable for any action taken or not taken by it in respect of
its obligations under the Transaction Monitoring Agreement in good faith in accordance with
the advice of any such counsel, accountants or other experts, provided that is has exercised due
care in the selection of the relevant expert.
The Transaction Monitor may at its own cost delegate the performance of its obligations under
the Transaction Monitoring Agreement, in whole or in part, to vicarious agents
(Erfüllungsgehilfen, § 278 of the German Civil Code (Bürgerliches Gesetzbuch)). A more
extensive delegation of its duties is not permitted. The exculpatory provisions contemplated in
this subsection entitled "General Terms of Appointment" shall apply to any such agent.
Services Non-exclusive; Conflicts of Interest
The services of the Transaction Monitor to be rendered under the Transaction Monitoring
Agreement are non-exclusive. Nothing therein shall prevent the Transaction Monitor or any of
its affiliates from engaging in other businesses, as principal or in an advisory or other capacity
with, or have any economic interests in or other relationships with, the parties to the Transaction
Documents, any affiliate of the foregoing or any other person. In particular, the Transaction
Monitor or its affiliates may (i) render services similar to the services to be rendered under the
Transaction Monitoring Agreement to any person; (ii) engage in negotiations leading to the
restructuring of investments held for their own account or for the account of others in obligors
under the Participation Right Agreements, without any duty to act in any way which is
favourable to the interests of the Issuer or the Noteholders; (iii) acquire or provide advisory or
other services in respect of investments ranking pari passu, senior or junior to an investment
held by the Issuer, or have any other economic interests in or other relationships with the
relevant obligor.
Each of the foregoing may give rise to conflicts of interest. In such instances, the Transaction
Monitor and its affiliates may in their discretion act in a way that may be the same as or
different from actions under the Transaction Monitoring Agreement with respect to the Issuer's
investments. The Transaction Monitor may refrain from any action under the Transaction
Monitoring Agreement which, in the sole discretion of the Transaction Monitor, would give rise
to a conflict of interest.
The Transaction Monitor shall comply in all material respects with all applicable laws and
orders to which it may be subject if failure so to comply would materially impair its ability to
perform its obligations under the Transaction Monitoring Agreement.
Unless otherwise specifically required in the Transaction Monitoring Agreement or by
applicable law, the Transaction Monitor shall use reasonable efforts not to take any action that it
knows (i) is not permitted under the Issuer's partnership agreement, (ii) would violate any law,
rule or regulation of any governmental body or agency having jurisdiction over the Issuer the
violation of which has or could reasonably be expected to have a material adverse effect on the
Issuer, any Participation Right Agreement or the Noteholders, or (iii) would result in the Issuer
violating the Terms and Conditions or the terms of any other Transaction Documents to which it
is a party.
Fees and Expenses
On each Payment Date, the Issuer shall pay to the Transaction Monitor a fee, and shall
reimburse any costs and expenses, as separately agreed between the Issuer and the Transaction
Monitor.
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The Transaction Monitor shall be liable for its acts or omissions under or in connection with the
Transaction Monitoring Agreement only if and to the extent that such acts or omissions
constitute an intentional or negligent (vorsätzliche oder fahrlässige) breach of its obligations
thereunder. Notwithstanding anything in the Transaction Documents to the contrary, the
Transaction Monitor shall not be liable for indirect damages (mittelbare Schäden) of any kind
whatsoever (including but not limited to lost profits), unless the Transaction Monitor has acted
intentionally. The Transaction Monitor will not assume any liability in connection with the
potential inability of the Companies to meet their payment obligations under the Participation
Right Agreements. The Transaction Monitor shall not be liable to the Issuer for any error of
judgement in connection with the performance of the Transaction Monitor's services under the
Transaction Monitoring Agreement.
The Issuer shall indemnify the Transaction Monitor and its affiliates against all losses,
liabilities, obligations (including any taxes other than taxes on the Transaction Monitor's and its
affiliates' overall income or gains which are imposed in the future on the services under the
Transaction Monitoring Agreement), actions in and out of court and costs and disbursements in
connection with the foregoing incurred by the Transaction Monitor or its affiliates in connection
with the Transaction Monitoring Agreement, unless such losses, liabilities, obligations, actions,
costs and disbursements are incurred due to the Transaction Monitor's intentional or negligent
breach of its obligations under the Transaction Monitoring Agreement. The obligations of the
Issuer described in this paragraph shall survive the termination of the Transaction Monitoring
Agreement.
Termination
The Transaction Monitoring Agreement shall automatically terminate upon the redemption in
full of the Notes. The Transaction Monitoring Agreement may be terminated without cause by
the Transaction Monitor by giving at least 30 calendar days' prior written notice to the Issuer.
The Transaction Monitoring Agreement may be terminated by the Issuer for cause by giving at
least 10 Business Days' prior written notice to the Transaction Monitor upon the occurrence of
any of the following events: (i) a breach by the Transaction Monitor of any of its obligations
under the Transaction Monitoring Agreement which is materially prejudicial to the interest of
the Noteholders, if such breach remains uncured for 30 calendar days after written notice
thereof is given; (ii) the Transaction Monitor is unable to pay its debts as they fall due
(zahlungsunfähig) or is overindebted (überschuldet), becomes subject to insolvency
proceedings, a motion to institute such proceedings is filed and not discharged within 90 days,
or such proceedings are not instituted for lack of assets; (iii) any representation made by the
Transaction Monitor under the Transaction Monitoring Agreement proves to have been
materially incorrect or materially misleading when made; (iv) the Transaction Monitor is no
longer legally authorised to carry out its duties under the Transaction Monitoring Agreement;
(v) an action by the Transaction Monitor in connection with its business which constitutes fraud
or criminal activity or any of its principal decision makers in connection with the Transaction
Monitoring Agreement have been indicted for a criminal offence materially related to its
business of providing transaction monitoring services.
Any termination notice shall become effective on the day a replacement Transaction Monitor is
appointed. In the case of any termination notice given under the Transaction Monitoring
Agreement or the termination of the appointment of the Transaction Monitor thereunder for
other reasons, the Issuer shall use its best efforts to appoint a replacement transaction monitor.
The Issuer shall procure that the replacement transaction monitor be a person which (i) has
demonstrated an ability to perform professionally and competently duties similar to those
imposed upon the Transaction Monitor under this Agreement and has a substantially similar (or
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higher) level of expertise, (ii) is legally qualified and has the capacity to act as transaction
monitor under this Agreement, as successor to the Transaction Monitor hereunder in the
assumption of all the duties, responsibilities and obligations of the Transaction Monitor
hereunder and under the other Transaction Documents to which the Transaction Monitor is a
party, and (iii) will perform its duties as advisor under this Agreement without causing the
Issuer or any holder of the Notes to become subject to tax in any jurisdiction where such
replacement transaction monitor is established or doing business. No such replacement
transaction monitor may be appointed unless (i) it has agreed in writing to assume duties and
obligations materially in accordance with the Transaction Monitor's duties and obligations under
the Transaction Monitoring Agreement, (ii) the Trustee has given its prior written consent and
(iii) the Rating Agencies have confirmed that the then current rating of the Notes would not be
downgraded or withdrawn as a consequence of such appointment. The Transaction Monitor
shall take such action consistent with the Transaction Monitoring Agreement and reasonably
required by the Trustee as shall be necessary to effect any such replacement.
4.
INVESTMENT ADVISORY AGREEMENT
The Investment Board
The "Investment Board" shall be composed of the persons appointed as Investment Board
Members under the Investment Advisory Agreement (entered into between the Issuer and the
Investment Board Members) from time to time. "Investment Board Members" means on the
date of the Agreement, the original board members, and thereafter, any person appointed in
accordance with the applicable provision of the Investment Advisory Agreement but excluding
any person the appointment of which under the Investment Advisory Agreement has
terminated. The Investment Board Members shall perform the tasks and obligations expressed
to be performed by the Investment Board under the Investment Advisory Agreement.
The Issuer shall procure that at all times until the termination of the Investment Advisory
Agreement (aa) there will be three persons appointed as Investment Board Members, (bb) each
of the Investment Board Members has a qualified professional background that enables it to
make investment recommendations, such qualified professional background being constituted
by not less than five years' experience either in the banking industry including experience in
credit decisions, or from a career as a chartered accountant, (cc) the majority of the Investment
Board Members are not resident in Germany, (dd) the majority of the Investment Board
Members are not employed by, and independent from, the Financial Advisor and the
Transaction Monitor and (ee) at least one Investment Board Member is a director of the
General Partner of the Issuer.
The Issuer shall only select and appoint additional Investment Board Members which meet the
qualifications set out in the preceding paragraph, following consultations with the Financial
Advisor, the Transaction Monitor and the then existing Investment Board Members, and with
the approval of the Trustee. Any additional Investment Board Members shall be appointed by
execution of an amendment agreement to the Investment Advisory Agreement. Each party to
the Investment Advisory Agreement shall take all actions reasonably requested by the Issuer in
order to implement such appointment.
The term of appointment of any Investment Board Member shall end (i) upon giving one
months' prior written notice of termination by the Issuer to the relevant Investment Board
Member, however not before a substitute Investment Board Member has been appointed in
accordance with the procedure described in the preceding paragraph, (ii) upon giving one
months' prior written notice of retirement by the relevant Investment Board Member to the
Issuer, however not before a substitute Investment Board Member has been appointed in
accordance with the procedure described in the preceding paragraph, (iii) with immediate effect
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if the relevant Investment Board Member dies, becomes subject to insolvency proceedings or is
otherwise incapacitated; (iv) with immediate effect if the relevant Investment Board Member
has been indicted for a criminal offence materially related to its professional activities; or (v)
with immediate effect upon notice of termination for good cause (aus wichtigem Grund) given
by the Issuer to the relevant Investment Board Member.
Nothing in the Investment Advisory Agreement shall prejudice any right of an Investment
Board Member to terminate its appointment thereunder for good cause (wichtiger Grund) as a
matter of mandatory law. Upon the termination of appointment of an Investment Board
Member for any reason, it shall cease to be a party to the Investment Advisory Agreement and
be released from its obligations thereunder, provided that all its claims and liabilities having
become due thereunder before the relevant termination date shall remain unprejudiced. The
appointment of the remaining Investment Board Members and the validity of the Investment
Advisory Agreement shall remain unaffected by any such termination.
Each Investment Board Member may from time to time appoint and terminate the appointment
of an alternate Investment Board Member which shall satisfy the requirements described in (bb)
above, provided that requirements described in (cc) and (dd) above would be complied with if
such alternate member were an Investment Board Member. Any such appointment and its
termination shall be promptly notified to the Issuer. Each alternate Investment Board Member
shall be entitled to perform the tasks of the relevant appointing Investment Board Member on its
behalf. For the avoidance of doubt, the relevant Investment Board Member shall be liable for
the negligence or default of the alternate Investment Board Member appointed by it to the same
extent as for its own negligence (Section 278 of the German Civil Code (Bürgerliches
Gesetzbuch)).
The Issuer shall promptly notify each change in the appointment of Investment Board
Members, as well as the appointment of an alternate Investment Board Member and the
termination thereof to the Transaction Monitor.
Tasks of the Investment Board
The Investment Board shall consider the merits of all proposals prepared by the Financial
Advisor pursuant to the Financial Advisory Agreement and provided to the Investment Board
relating to (i) the conclusion and termination of Participation Right Agreements; (ii) the
disposal of investments in Participation Rights by transferring Participation Right Agreements
or claims arising thereunder; (iii) the exercise of additional information rights under the
Participation Right Agreements, in particular the instruction of the Recovery Advisor; and
(iv) other material matters relating to the administration of the portfolio of Participation Right
Agreements and shall without undue delay advise the Issuer whether it recommends such
proposals of the Financial Advisor in order to assist the Issuer's decision on the related issues.
The Investment Board shall provide any information reasonably requested by the Issuer in
respect of recommendations of the Investment Board or the performance of its obligations under
the Investment Advisory Agreement, to the extent such information is available to the
Investment Board.
The Investment Board shall perform its tasks and obligations under the Investment Advisory
Agreement in accordance with the reasonable instructions of the Issuer.
The Investment Board Members shall perform their obligations under the Investment Advisory
Agreement with the standard of care of a prudent merchant (Sorgfalt eines ordentlichen
Kaufmanns).
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Each of the Investment Board Members shall have no obligation or authority under the
Investment Advisory Agreement to perform any duties other than those referred to or as
specified therein. Each of the Investment Board Members undertakes not to engage itself (in
such capacity) in any activities for the benefit of the Issuer other than rendering the advisory
services specified in the Investment Advisory Agreement. The Investment Board Members shall
have no power of attorney to make any declarations binding on the Issuer or to act as any form
of branch, agency or representation of the Issuer nor to direct, administer or manage any part of
the business of the Issuer.
Each of the Investment Board Members shall be entitled to rely upon, and shall not incur any
liability for relying upon, (i) any notice, request, certificate, consent, statement, instrument,
document or other writing reasonably believed by it to be genuine and to have been signed or
sent by a person having the proper authority, and (ii) any statement made to it orally or by
telephone and believed by it to be made by the proper person. Each of the Investment Board
Members may consult with legal counsel, accountants and other experts selected by it, and
shall not be liable for any action taken or not taken by it in respect of its obligations under the
Investment Advisory Agreement in good faith in accordance with the advice of any such
counsel, accountants or other experts, provided that is has exercised due care in the selection of
the relevant expert. The Issuer shall reimburse any reasonable costs incurred in connection with
the appointment of such experts in accordance with the provisions set out in the subsection
entitled "Fees and Expenses" below.
The appointment of the Investment Board Members under the Investment Advisory Agreement
is non-exclusive. Nothing in the Investment Advisory Agreement shall prevent each of the
Investment Board Members from engaging in other businesses, as principal or in an advisory or
other capacity with, or have any economic interests in or other relationships with, the parties to
the Transaction Documents, any affiliate of the foregoing or any other person. In particular,
each of the Investment Board Members may render services similar to the services to be
rendered under the Investment Advisory Agreement to any person.
Each of the Investment Board Members shall comply in all material respects with all applicable
laws and orders to which it may be subject if failure so to comply would materially impair its
ability to perform its obligations under the Investment Advisory Agreement.
Unless otherwise specifically required in the Investment Advisory Agreement or by applicable
law, each of the Investment Board Members shall use reasonable efforts not to take any action
that it knows (i) is not permitted under the Issuer's partnership agreement, (ii) would violate
any law, rule or regulation of any governmental body or agency having jurisdiction over the
Issuer the violation of which has or could reasonably be expected to have a material adverse
effect on the Issuer, any Participation Right Agreement or the Noteholders, or (iii) would result
in the Issuer violating the Terms and Conditions or the terms of any other Transaction
Documents to which it is a party.
Procedure of the Investment Board
Ordinary meetings of the Investment Board shall be held once in each calendar half year. Upon
the request of the Issuer or any Investment Board Member, an extraordinary meeting of the
Board shall be held within 5 Business Days following such request.
Any decision by the Investment Board shall require a quorum of three members and the simple
majority of its members.
The decisions of the Investment Board shall generally be taken in a meeting held in the offices
of Wilmington Trust SP Services (London) Limited, Tower 42, Level 11, 25 Old Broad Street,
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London, EC2N 1HQ, or held in any other place outside the Federal Republic of Germany. If no
Investment Board Member objects, decisions may be taken by any means of telecommunication
such as by telephone, videoconference, e-mail or telefax, and audio conferences in lieu of
meetings may be held by means of telephone or videoconference, provided in each case that
such communication shall be initiated, controlled and documented from outside of Germany.
Each decision of the Investment Board shall be documented in a written resolution signed by the
Investment Board Members, provided that decisions taken outside of a physical meeting may be
documented by telefax. Each recommendation of the Investment Board regarding the
acquisition of Participation Right Agreements shall be made materially in accordance with a
schedule attached to the Investment Advisory Agreement.
Without prejudice to the procedural provisions described in the preceding paragraphs, the
Investment Board may adopt rules of procedure provided that they are in accordance with the
Investment Advisory Agreement.
Fees and Expenses
On each Payment Date, the Issuer shall pay to each Investment Board Member a fee, and shall
reimburse any costs and expenses, as separately agreed between the Issuer and each Investment
Board Member.
Each of the Investment Board Members shall be liable for its acts or omissions under or in
connection with the Investment Advisory Agreement only if and to the extent that such acts or
omissions constitute an intentional or negligent (vorsätzliche oder fahrlässige) breach of its
obligations thereunder. Notwithstanding anything in the Transaction Documents to the contrary,
each of the Investment Board Members shall not be liable for indirect damages (mittelbare
Schäden) of any kind whatsoever (including but not limited to lost profits), unless the relevant
Investment Board Member has acted intentionally. The Investment Board Members have not
made any investigation into the matters of the Companies and accordingly, the Investment
Board Members will not assume any liability in connection with the potential inability of the
Companies to meet their payment obligations under the Participation Right Agreements. The
Investment Board Members shall not be liable to the Issuer for any error of judgement in
connection with the performance of their obligations under the Investment Advisory
Agreement.
Subject to the provisions of the Investment Advisory Agreement, the Issuer shall indemnify
each of the Investment Board Members against all losses, liabilities, obligations (including any
taxes other than taxes on the Investment Board Members' overall income or gains which are
imposed in the future on the services under the Investment Advisory Agreement), actions in and
out of court and costs and disbursements in connection with the foregoing incurred by the
relevant Investment Board Member in connection with the Investment Advisory Agreement,
unless such losses, liabilities, obligations, actions, costs and disbursements are incurred due to
the relevant Investment Board Member's intentional or negligent breach of its obligations
thereunder. The obligations of the Issuer described in this paragraph shall survive the
termination of the Investment Advisory Agreement.
Termination
The Investment Advisory Agreement shall automatically terminate upon the payment and
redemption in full of the Notes. Such termination shall be without prejudice to any accrued
rights, remedies or liabilities at the time of such termination.
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5.
TAX REIMBURSEMENT AGREEMENT
Obligations of the Limited Partner
Payments made to the Issuer by the Companies under the Participation Right Agreements are
subject to German Withholding Tax (Kapitalertragsteuer and Solidaritätszuschlag) to be
withheld and transferred by the Companies in accordance with § 43 of the German Income Tax
Act (Einkommensteuergesetz) to the German tax authorities. These withholdings (each, a
"Withholding"), to the extent attributable to the Limited Partner under German tax laws, will be
counted as a prepayment towards the German income tax owed by the Limited Partner. The Tax
Reimbursement Agreement entered into between the Issuer and the Limited Partner sets out the
following obligations of the Limited Partner:
The Limited Partner agrees, in its capacity as the limited partner of the Issuer, to file from time
to time its claims against the German tax authorities for each tax year (each such annual claim, a
"Tax Refund Claim") in a timely manner.
The Limited Partner agrees with the Issuer to on-pay to the Issuer (i) upon receipt all amounts it
receives from the German tax authorities on account of each Tax Refund Claim and (ii) all
amounts, if any, equal to the difference (but only to the extent such difference arises as a result
of profits realised by the Limited Partner subject to German Income Tax) between 99.9999 per
cent. of each actual Withholding made and the amount received by the Limited Partner from the
German tax authorities on account of each corresponding Tax Refund Claim (each such amount,
a "Reimbursement Payment").
Upon receipt of each Tax Refund Claim, the Limited Partner shall without undue delay send a
notice to the Issuer, the Transaction Monitor and the Trustee in the form attached as Schedule 2
to the Tax Reimbursement Agreement in order to identify the relevant Withholdings to which a
Reimbursement Payment corresponds. Each Reimbursement Payment shall become due and
payable in the amount and on the day the Limited Partner receives payment on the relevant Tax
Refund Claim from the German tax authorities. The obligations of the Limited Partner to make
Reimbursement Payments under the Tax Reimbursement Agreement shall at all times be limited
to the amounts actually received by it on account of the Tax Refund Claims and any amounts of
the kind described in the preceding paragraph sub (ii).
Any Reimbursement Payments made by the Limited Partner to the Issuer shall be final and
irrevocable and shall not be reversed in the event of any subsequent decision by the German tax
authorities requiring the Limited Partner to repay any payments on Tax Refund Claims received
by the Limited Partner.
Reimbursement Payments shall be payable in euro.
Remuneration of the Limited Partner
The Issuer shall bear and reimburse all reasonable costs and disbursements (including fees,
costs and disbursements of tax advisors, legal advisors and any other advisors appointed by the
Limited Partner as well as any administrative or court fees) incurred by the Limited Partner in
connection with collecting the Tax Refund Claims, including in each case all applicable taxes,
and pay all reasonable advances in relation thereto requested by the Limited Partner.
Termination
The Issuer shall have the right to terminate the Tax Reimbursement Agreement by written
notice to the Limited Partner in the event that the Limited Partner becomes subject to an
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Insolvency Event.
"Insolvency Event", with respect to the Limited Partner, means any of the following: (i) the
Limited Partner is unable to pay its debts as they fall due (§ 17 Insolvency Code,
Insolvenzordnung) or is overindebted (§ 19 Insolvency Code); (ii) insolvency proceedings
regarding the Limited Partner or its assets are applied for or are opened in Germany, or the
opening of such proceedings is dismissed due to the lack of assets; or (iii) the Limited Partner
takes any action or any legal proceedings are commenced in a jurisdiction other than Germany
or other steps taken for (aa) the Limited Partner to be adjudicated or found bankrupt, declared
en désastre or insolvent, (bb) the winding-up (other than a winding-up for the purpose of
reconstruction or amalgamation not arising out of insolvency) or dissolution of the Limited
Partner, (cc) the appointment of a liquidator, trustee, receiver, administrator, administrative
receiver or similar officer over the Limited Partner or the whole or any part of its assets or (dd)
any event occurs or circumstance arises with respect to the Limited Partner in any jurisdiction to
which the Limited Partner is subject which has a legal and economic effect equivalent or similar
to any of the events mentioned in (i) or (ii) above.
Such termination with respect to the Limited Partner shall become effective upon (i) a
replacement limited partner having been nominated by the General Partner to join the Issuer as
replacement for the Limited Partner and who accedes to all rights and obligations of the Limited
Partner following an Insolvency Event and (ii) such replacement Limited Partner having
acceded to all documents relating to the Transaction Documents to which the Limited Partner is
a party in lieu of the Limited Partner.
6.
CASH ADMINISTRATION AGREEMENT
Obligations of the Cash Administrator
Pursuant to the Cash Administration Agreement entered into between the Issuer, the Cash
Administrator and the Account Bank, the Cash Administrator shall have the following duties
and obligations:
The Cash Administrator shall (i) record the actual payments of the Companies under the
Participation Right Agreements and the payments of the other Issuer Receipts to the Transaction
Account; (ii) arrange for all payments due and payable by the Issuer in accordance with the
Priority of Payments and the Agency Agreement to be made from the amounts standing to the
credit on each of the Issuer Accounts; (iii) give payment instructions to the Account Bank (in
each case with a copy to the Issuer) in respect of the transfers and payments to be arranged by it
pursuant to its obligations under the Cash Administration Agreement in order to ensure that the
same may be made in a timely manner; (iv) provide the notifications pursuant to Clause 4.2 of
the Agency Agreement (in each case with a copy to the Issuer); (v) upon instructions from the
Transaction Monitor, invest amounts credited to the Issuer Accounts and/or the Collateral
Account (together, the "Accounts") (other than an amount equal to the aggregate Swap
Collateral) in specified Permitted Investments or dispose of specified Permitted Investments;
(vi) prepare and maintain all books, ledgers, records and other documentation necessary for
the proper performance of its duties under the Cash Administration Agreement, which includes
the full and transparent documentation of all movements of funds on each of the Accounts as
evidenced by the account statement reports prepared by the Account Bank, and, subject to
applicable law, provide access to such documents during normal business hours to the Issuer
(its auditors or accountants, if necessary), the Trustee, the Financial Advisor, the Investment
Board and the Transaction Monitor at any time upon reasonable written notice given a
reasonable time prior to such access, as well as any competent tax, regulatory or other
authority; (vii) upon instructions of the Transaction Monitor, draw amounts under the
Liquidity Facility (as defined in the Tax Liquidity Facility Agreement) in accordance with the
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instructions of the Transaction Monitor; (viii) in respect of each Distribution Date, provide a
report showing all calculations of payments made in accordance with the Priority of
Payments, all invoices received for payment in accordance with the Priority of Payments, all
payments invested in Permitted Investments and the respective returns per investment type as
well as a statement of all payments received from the Companies under the respective
Participation Right Agreements; (ix) promptly forward copies of any account statements
received from the Account Bank to the Transaction Monitor and the Trustee, and from time to
time upon the request of the Issuer, the Trustee or the Transaction Monitor, promptly forward
requests to the Account Bank for account statements showing all debits and credits on each of
the Accounts during specified periods; and (x) reasonably co-operate with, and provide
assistance to, the Transaction Monitor in the fulfillment of its duties under the Transaction
Monitoring Agreement.
"Permitted Investments" means: (aa) any bank account or deposit (including, for the
avoidance of doubt, time deposits) held or made with any financial institution, the short-term
unsecured and unsubordinated debt obligations of which are rated at least "P-1" by Moody's and
"A-1+" by Standard and Poor's, and, with respect to bank accounts, the long-term unsecured and
unsubordinated debt obligations of which are rated at least "A1" by Moody's and "AA-" by
Standard and Poor's, provided that each such bank account or deposit shall (i) have a
predetermined fixed euro amount of principal due at maturity that cannot change or vary, (ii) not
have an "r" suffix attached to its rating, (iii) if such bank account or deposit has a variable
interest rate, have an interest rate tied to a single interest rate index plus a single fixed spread (if
any) and move proportionately with that index, (iv) not be subject to liquidation prior to its
maturity and (v) mature on the next following Payment Date; or (bb) money market funds
which are rated at least "Aaa" and "MR1+" by Moody's and "AAAm" by Standard and Poor’s
and permit daily liquidation of investments; provided in each case that the relevant debtor is not
required to deduct or withhold any amounts for or on account of any withholding tax or similar
tax, unless such debtor is required to make "gross up" payments that ensure that the net amount
actually received by the Issuer (free and clear of taxes, whether assessed against such debtor or
the Issuer) will equal the full amount that the Issuer would have received had no such deduction
or withholding been required. All receipts from Permitted Investments acquired with amounts
from the Transaction Account shall be credited to the Transaction Account, all receipts from
Permitted Investments acquired with amounts from the Reserve Account shall be credited to the
Reserve Account and all receipts from Permitted Investments acquired with amounts from the
Collateral Account shall be paid to the Transaction Account and all receipts from Permitted
Investments acquired with amounts from any other Account shall be credited to such Account.
If the Cash Administrator receives any amounts on behalf of the Issuer, the Cash Administrator
shall without undue delay (unverzüglich) transfer such amounts to the Transaction Account with
the exception of any receipts from Permitted Investments which shall be on-paid in accordance
with Clause 4.2(v), last paragraph.
The Cash Administrator may, after consultations with the Issuer and the Transaction Monitor,
engage and pay for proper and reasonable costs of any lawyers, accountants or other experts (the
"Advisors") whose advice or service may to it seem reasonably necessary, expedient or
desirable in connection with the Cash Administration Agreement (even if the liability of such
advisers is limited to an amount in accordance with market practice). The Issuer shall bear and
reimburse all reasonable costs, expenses and disbursements (in each case including all
applicable taxes) of such Advisors incurred, and pay all advances requested by the Cash
Administrator in connection therewith. The Cash Administrator may rely on such information
and advice received from any Advisor without having to make its own investigations. The Cash
Administrator shall not be liable to the parties hereto or other parties for any damages or losses
caused by its acting in reliance on information or advice of such Advisors nor for any
negligence of such Advisors. The Cash Administrator shall only be liable for the exercise of due
care in the selection of any such Advisors.
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The Cash Administrator, absent actual knowledge to the contrary, may rely as to any matters of
fact which might reasonably be expected to be within the knowledge of the Issuer, the Account
Bank, the Financial Advisor, the Investment Board and/or the Transaction Monitor as may be
set forth in a certificate or other paper signed by or on behalf of the Issuer, the Account Bank,
the Financial Advisor, the Investment Board and/or the Transaction Monitor.
The Cash Administrator may, in the absence of actual knowledge to the contrary, rely upon any
communication or document reasonably believed by it to be genuine.
The Cash Administrator is not obliged to do or omit to do anything if it would or might in its
reasonable opinion constitute a breach of any applicable law, breach of the Transaction
Documents or a breach of any applicable fiduciary duty or duty of confidentiality.
The Cash Administrator may assume unless it has actual knowledge or actual notice to the
contrary, that (i) any representation, notification or declaration made by the Issuer, the Account
Bank, the Financial Advisor, the Investment Board and/or the Transaction Monitor is true and
correct; (ii) no Issuer Event of Default or event of default with respect to the Account Bank has
occurred; (iii) any person listed in a signature list delivered to the Cash Administrator by the
Issuer or the Transaction Monitor is duly authorised to act in the capacity ascribed to it and by
or on behalf of the person provided in such signature list. For the avoidance of doubt, this
paragraph shall not be construed as to require the Cash Administrator to disclose any
confidential information.
The Cash Administrator, absent manifest error, may rely upon the genuineness of any
communication or document believed by it to be genuine.
The Cash Administrator shall not be bound to enquire as to the occurrence of any Issuer Event
of Default or event of default relating to the Account Bank.
The Cash Administrator shall not be bound to enquire as to whether or not any representation
made by the Issuer, the Account Bank, the Financial Advisor, the Investment Board and/or the
Transaction Monitor under the Cash Administration Agreement or under or in connection with
any of the Transaction Documents is true.
The Cash Administrator shall not be bound to account to the Issuer or any other person for any
sum or the profit element of any sum received by it for its own account whether in connection
with the Cash Administration Agreement or otherwise.
The Cash Administrator shall not be bound to disclose to any other person any information
relating to the Issuer if such disclosure would or might in its opinion constitute a breach of any
law or regulation or be otherwise actionable at the suit of any person or is prohibited under the
Transaction Documents.
The Cash Administrator shall not be responsible for checking or enquiring into the due
execution, delivery, validity, legality, adequacy, suitability, performance, enforceability or
admissibility in evidence of any indemnity, security or other right given or created by the
agreements or documents creating or constituting the Accounts, the Trustee Collateral (in
particular, but without limitation, the Participation Right Agreements) or any obligations
imposed thereby or assumed thereunder.
The Cash Administrator shall not be liable for any failure, omission, or defect in perfecting the
opening of the Accounts.
The Cash Administrator shall not be responsible for checking or enquiring into the ownership,
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value or sufficiency of any credit on the Accounts or the Trustee Collateral, any priority
interests in the Accounts or the Trustee Collateral, the right or title of any person in or to any
property comprised therein or the existence of any encumbrance affecting the same.
In connection with instructions to buy or sell Permitted Investments as described above: (aa) all
transactions in Permitted Investments may be effected by the Cash Administrator through one of
its Affiliates on such terms as it thinks fit; (bb) the Cash Administrator and any of its Affiliates
may without accounting to any person for any resultant profit act as banker, broker, investment
adviser or in any other capacity and perform any services on behalf of the Issuer on the same
terms as would be made with an independent customer; (cc) in effecting transactions on behalf
of the Issuer, the Cash Administrator (A) may combine the Issuer's orders with orders for other
customers or for its own account or the accounts of persons connected with it, (B) shall, if the
Issuer so requests in writing, on completion of any transaction in Permitted Investments send to
the Issuer a statement of transaction details (and no additional charge shall be made for sending
such statements) and (C) shall provide monthly statements to the Issuer detailing all transactions
in Permitted Investments executed on the Issuer's behalf; (dd) neither the Cash Administrator
nor any of its Affiliates shall be responsible for any loss in any way connected with its
acquisition, retention or sale of Permitted Investments or with the effecting of transactions in
Permitted Investments hereunder unless such loss arises from the Cash Administrator's or the
Affiliate's breach of the standard of care set out below under the heading "General Terms of
Appointment"; (ee) in this paragraph: "Affiliate", in relation to a company, means another
company in the same group of companies formed by a Holding Company and its Subsidiaries,
including, for the avoidance of doubt, J P Morgan Fleming Asset Management; "Holding
Company", in relation to another company (its Subsidiary) has the meaning given in section
736 of the Companies Act 1985; "Subsidiary", in relation to another company (its Holding
Company) has the meaning given in section 736 of the Companies Act 1985.
Obligations of the Account Bank
The Account Bank shall comply with any direction of the Cash Administrator to effect a
payment by debit from any of the Accounts, if such direction is in writing, does not cause any of
the Accounts to be overdrawn and certifies that the payment specified therein is permitted to be
made pursuant to the Transaction Documents.
The Account Bank agrees that if directed pursuant to the preceding paragraph to make any
payment it will do so prior to the close of business on the Business Day specified in such direction
and for value on such Business Day provided that, if any direction is received by the Account
Bank later than 11:00 a.m. (London time) on any Business Day for payment on such Business
Day, the Account Bank shall make such payment at the commencement of business on the
following Business Day for value on that Business Day.
The Account Bank shall provide confirmations of the irrevocable payment instructions received
by the Issuer (or the Cash Administrator on its behalf) relating to payments in respect of the
Notes (in each case with a copy to the Issuer and the Cash Administrator).
The Account Bank shall transfer all amounts which are to be transferred into the Transaction
Account pursuant to the applicable provisions of the Cash Administration Agreement into the
Transaction Account immediately upon (and, to the extent practicable, on the same Business Day
or, if the day on which such amounts are received is not a Business Day, on the following
Business Day) receipt by the Account Bank of the amount in question.
Prior to the Trustee Collateral having become enforceable in accordance with Clause 4.1 of the
Trust Agreement and the Trustee having notified the Cash Administrator and the Account Bank
thereof, amounts shall be drawn from any of the Issuer Accounts only for the purposes and only
in the order of priorities as set forth under Clause 2.3 of the Terms and Conditions. Upon the
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Trustee Collateral having become enforceable in accordance with Clause 4.1 of the Trust
Agreement and the Trustee having notified the Cash Administrator and the Account Bank
thereof, amounts shall be drawn from any of the Issuer Accounts only for the purposes and only
in the order of priorities as provided for in Clause 4.5 of the Trust Agreement.
No amount may be transferred to or withdrawn from any of the Accounts otherwise than in
accordance with the applicable provisions of the Cash Administration Agreement unless with
the prior written consent of the Trustee.
The Accounts will accrue and be credited interest at the rate payable by the Account Bank in
accordance with arrangements agreed from time to time with the Issuer.
The Issuer covenants with the Cash Administrator and the Account Bank that it will not create,
or participate in the creation of, or permit to exist, any security interest in relation to any of the
Accounts other than pursuant to the Transaction Documents and that none of the Accounts will
be terminated other than pursuant to the Transaction Documents or applicable provisions of law.
Acknowledgement by the Account Bank
The Account Bank (i) waives any right it has or may hereafter acquire to combine, consolidate or
merge the Accounts with each other or any of the Accounts with any other account of the Issuer or
any other person or set-off any liabilities of the Issuer or any other person to the Account Bank
and agrees that it shall not set-off or transfer any sum standing to the credit of or to be credited to
any of the Accounts in or towards satisfaction of any liabilities to the Account Bank, the Issuer or
any other person; (ii) agrees, upon receipt of a notice from the Cash Administrator to the effect
that the Cash Administrator will resign as cash administrator in accordance with the applicable
provisions of the Cash Administration Agreement, to comply with any direction of the Cash
Administrator expressed to be given by the Cash Administrator in respect of the operation of any
of the Accounts prior to the retirement of the Cash Administrator and continue with such
compliance after the retirement of the Cash Administrator until directed otherwise by the new
Cash Administrator, such Cash Administrator appointed in accordance with the terms of a Cash
Administration Agreement on substantially the same terms of the Cash Administration
Agreement; (iii) agrees to notify the Trustee, the Issuer, the Financial Advisor, the Transaction
Monitor and the Cash Administrator and any other person agreed with the Cash Administrator if
the Account Bank determines that any of the Accounts has or will at any time have a negative
balance; such notification to be given on the same Business Day as the Account Bank makes such
determination; (iv) acknowledges that the Issuer has pursuant to the English Security Deed
granted to the Trustee an English law security interest in respect of each of the Issuer Accounts
and any amounts from time to time credited thereto; and (v) agrees to follow any instructions of
the Cash Administrator made in accordance with the Cash Administration Agreement.
Maintenance of the Accounts
The Account Bank shall at all times be a bank whose short-term unsecured, unguaranteed and
unsubordinated debt obligations are rated P-1 and A-1+, respectively, by the Rating Agencies. If
the short term unsecured, unguaranteed and unsubordinated debt obligations of such bank cease
to be so rated by any of the Rating Agencies, the Cash Administrator shall immediately give
notice of such event to the Trustee, the Financial Advisor, the Investment Board, the Rating
Agencies and the Transaction Monitor and the Issuer shall, within 30 calendar days following
such event, procure the transfer of each of the Accounts to another bank the unsecured,
unguaranteed and unsubordinated debt obligations of which are rated as aforesaid by the Rating
Agencies.
If, other than in the circumstances specified in the preceding paragraph, the Cash Administrator
wishes the bank or branch with which the Accounts are maintained to be changed, the Cash
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Administrator shall obtain the prior written consent of the Issuer (which shall give its consent only
upon the prior written consent of the Trustee) and the transfer of the Accounts shall be subject to
the same directions and arrangements mutatis mutandis as are provided for in the preceding
paragraph.
The Account Bank (i) may rely as to any matters of fact which might reasonably be expected to
be within the knowledge of the Issuer as may be set forth in a certificate or other paper signed
by or on behalf of the Issuer or the Cash Administrator; (ii) may, in the absence of actual
knowledge to the contrary rely upon any communication or document reasonably believed by it
to be genuine; and (iii) is not obliged to do or omit to do anything if it would or might in its
reasonable opinion constitute a breach of any applicable law, breach of the Transaction
Documents or a breach of any applicable fiduciary duty or duty of confidentiality.
Each of the Cash Administrator and the Account Bank covenants with the Issuer that it shall
give such time and attention and shall exercise such skill, care and diligence in the performance
of the duties and obligations which are contemplated to be provided by it under the Cash
Administration Agreement as is required to meet the standard of care of a prudent merchant
(Sorgfaltspflicht eines ordentlichen Kaufmanns).
Each of the Cash Administrator and the Account Bank may delegate the performance of their
respective duties under the Cash Administration Agreement, in whole or in part, only with the
consent of the Issuer and the approval of the Transaction Monitor, neither of which shall be
unreasonably withheld.
Indemnity and Limitation of Liability
Each of the Cash Administrator and the Account Bank, respectively, shall severally indemnify the
Issuer and its officers and agents against all liabilities, losses, damages, actions, proceedings and
claims (and reasonable costs, demands and expenses including legal expenses incidental thereto)
which may be brought against, suffered or incurred by the Issuer or its officers and agents and
which are attributable to any negligent (fahrlässig) or intentional (vorsätzlich) breach of the
standard of care set out above of the Account Bank or the Cash Administrator (as the case may
be).
The Issuer shall indemnify the Cash Administrator or the Account Bank, respectively, and their
directors, officers, employees or agents against all liabilities, losses, damages, actions, proceedings
and claims (and reasonable costs, demands and expenses including legal expenses incidental
thereto) which may be brought against, suffered or incurred by the Cash Administrator or the
Account Bank, respectively, or its respective directors, officers, employees or agents, unless any
such liabilities, losses, damages, actions, proceedings, claims and costs are attributable to any
negligent (fahrlässig) or intentional (vorsätzlich) breach of the standard of care set out above of
the Account Bank or the Cash Administrator (as applicable) in the performance of their
respective duties hereunder.
The provisions set out in this subsection "Indemnity and Limitation of Liability" shall survive the
termination of the Cash Administration Agreement.
Fees and Reimbursement
For the performance of its duties under the Cash Administration Agreement, the Issuer will pay
the Cash Administrator a fee which shall be separately agreed between the Issuer and the Cash
Administrator, plus any value-added or other similar tax imposed by applicable law on the
- 157 -
performance of such duties.
The fees of the Account Bank for the operation of the Accounts shall be separately agreed
between the Account Bank and the Issuer and shall be payable by the Issuer and charged by the
Account Bank to the Issuer in the same manner and as is generally applicable to its business
customers.
The Issuer shall pay all stamp or other documentary taxes or duties, if any, to which the Cash
Administration Agreement may be subject in any jurisdiction.
Termination
At any time by giving at least 60 calendar days' prior written notice to the other parties to the
Cash Administration Agreement, (i) the Cash Administrator may resign as cash administrator,
(ii) the Account Bank may resign as account bank or (iii) the Issuer may terminate the
appointment of the Cash Administrator or the Account Bank under the Cash Administration
Agreement, provided that at all times there shall be a replacement cash administrator and a
replacement account bank to perform the functions assigned to it thereunder. Neither such
termination shall affect any claim of the Cash Administrator to receive fees, expenses or
reimbursements under the Cash Administration Agreement (in each case pro rata temporis until
the termination date).
Any resignation or termination of the appointment of the Cash Administrator in accordance
with the preceding paragraph shall become effective only upon the appointment, with the
prior written consent of the Trustee, by the Issuer of a successor cash administrator (which
must be a bank, financial services institution, auditing firm or trust company of recognised
standing), the grant to such successor cash administrator of all authorities and powers granted
to the Cash Administrator under the Cash Administration Agreement and on the basis of an
agreement the terms of which shall not materially differ from the terms of the Cash
Administration Agreement, and the acceptance by such successor cash administrator of such
appointment, rights and obligations. If the Issuer fails to appoint a new cash administrator
within 40 calendar days after receipt of the resignation notice given by the Cash Administrator
in accordance with the provisions set out in the preceding paragraph, then the resigning Cash
Administrator may appoint (but is not obliged to appoint) such new cash administrator in the
name and for the account of the Issuer by giving at least 15 calendar days' prior notice of such
appointment to the Issuer and the Trustee in accordance with the Cash Administration
Agreement. The provisions of this paragraph shall not affect the right of the Cash Administrator
to retire from its appointment under the Cash Administration Agreement at any time with
immediate effect for good cause (aus wichtigem Grund) in which case the Cash Administrator
shall use all reasonable efforts to ensure that a new cash administrator satisfying the
requirements set out in this paragraph is appointed as replacement for itself and that such new
cash administrator agrees to act as Cash Administrator for the purposes of the Cash
Administration Agreement.
Any resignation or termination of the appointment of the Account Bank in accordance with
the first paragraph of this subsection "Termination" shall become effective only upon the
appointment, with the prior written consent of the Trustee, by the Issuer of a successor
account bank (which must be a bank satisfying the requirements set out in the subsection
"Maintenance of the Accounts" above), the grant to such successor account bank of all
authorities and powers granted to the Account Bank under the Cash Administration
Agreement and on the basis of an agreement the terms of which shall not materially differ
from the terms of this Agreement, the acceptance by such successor account bank of such
appointment, rights and obligations and the creation of a security interest satisfactory to the
Trustee in respect of the accounts of the Issuer maintained with the successor account bank. If
the Issuer fails to appoint a new account bank within 40 calendar days after receipt of the
- 158 -
resignation notice given by the Account Bank in accordance with the first paragraph of this
subsection "Termination", then the resigning Account Bank may appoint such new account
bank in the name and for the account of the Issuer by giving at least 15 calendar days' prior
notice of such appointment to the Issuer and the Trustee in accordance with the Cash
Administration Agreement. The provisions of this paragraph shall not affect the right of the
Account Bank to retire from its appointment under the Cash Administration Agreement at any
time with immediate effect for good cause (aus wichtigem Grund) in which case the Account
Bank shall use all reasonable efforts to ensure that a new account bank satisfying the
requirements set out in this paragraph and in the subsection "Maintenance of the Accounts"
above is appointed as replacement for itself and that such new account bank agrees to act as
Account Bank for the purposes of the Cash Administration Agreement.
The Trustee shall promptly notify the other parties to the Transaction Documents and the
Rating Agencies of any replacement of the Cash Administrator or the Account Bank, as
applicable, pursuant to the preceding paragraphs.
Upon the termination of its appointment pursuant to the first paragraph of this subsection
"Termination", the Cash Administrator or Account Bank (as relevant) shall promptly provide
any successor cash administrator or account bank (as relevant) with the information
reasonably requested by it relating to the performance of its duties under the Cash
Administration Agreement and shall deliver to such successor all books and records in its
possession and created pursuant to the Cash Administration Agreement and provide, at the cost
of the Issuer, such further reasonable co-operation as necessary to facilitate the transfer of the
duties of the Cash Administrator or Account Bank (as relevant) under the Cash Administration
Agreement to the successor cash administrator or account bank (as relevant).
Upon the effectiveness of any replacement of the Cash Administrator or the Account Bank, as
applicable, pursuant to the provisions described in this subsection "Termination" and
compliance of the Cash Administrator or the Account Bank, as applicable, with the obligation
contained in the preceding paragraph, the Cash Administrator or the Account Bank, as
applicable, shall be released from their respective duties under the Cash Administration
Agreement but shall continue to be entitled to any payments owed to them thereunder.
The costs incurred in connection with the replacement of the Cash Administrator and the
Account Bank shall be borne by the Issuer. If a replacement of the Cash Administrator or the
Account Bank is the result of the Cash Administrator's or, as the case may be, Account Bank's
breach of its obligations under the Cash Administration Agreement and the standard of care set
out above, the Issuer shall be entitled to demand reimbursement from the Cash Administrator
or, as the case may be, Account Bank in the amount of such costs in accordance with the terms
of the Cash Administration Agreement.
Unless terminated earlier, the Cash Administration Agreement shall terminate upon the
redemption in full of all Notes, provided that the Cash Administrator and the Account Bank
shall continue to be entitled to any payments owed to them with respect to the Cash
Administration Agreement.
7.
HEDGING ARRANGEMENTS
Pursuant to the Hedging Agreement, the Issuer has entered into a fixed-to-floating interest rate
swap with the Swap Counterparty. Under this agreement, the Issuer will pay the Swap
Counterparty a fixed rate of 3.93% for the life of the transaction. In return, the Issuer will
receive three-month EURIBOR calculated on the swap notional. The original swap notional
amount is EUR 186.07 million. This swap notional therefore reflects the balance of the portfolio
assets equal to the total issuance volume of Notes minus the original nominal amount of the
- 159 -
Class F Notes minus EUR 4.43 million. The interest rate hedge is structured as an amortising
swap, where the notional reduces according to a pre-determined schedule to account for a
possible amortisation of the portfolio assets. Should the portfolio assets amortise to a lesser
extent than according to this schedule, the Issuer is hedged for the amounts exceeding the
amount under the amortised swap notional up to the original swap notional amount. Should the
portfolio assets amortise to a larger extent than according to this schedule, the Issuer is
"overhedged" (not hedged) for the amounts falling below the amount under the amortised swap
notional. This "Flexi-Swap" structure intends to mimic a fully balance guaranteed swap as long
as the actual notional lies between the amortising notional and the original swap notional
amount and offers the potential of additional excess cash in a situation of stable interest rates.
- 160 -
THE COMPANIES
The information contained in this section concerning the Companies has been provided by or is based
on information provided by the Companies. Neither the Issuer, the Lead Manager nor any of the other
transaction parties has undertaken to make any investigation into the matters of, or to independently
verify the information provided by, the Companies, including into matters or information that would
be considered in connection with the assessment of a qualitative credit rating. Accordingly, none of
the Issuer, the Lead Manager or other transaction parties makes any representation as to the accuracy
or completeness of the information contained herein or assumes any liability or responsibility for any
potential inability of Companies to meet their payment obligations under the Participation Right
Agreements. Potential investors should conduct their own investigation concerning the Companies.
- 161 -
Aco Severin Ahlmann GmbH & Co. KG
Address: Am Ahlmannkai
24782 Büdelsdorf
Management: Hans-Julius Ahlmann
Hans-Peter Meyer
Fernando Rodriguez Gonzalez
Founded:
Industry: Buildings and Real Estate
1946
Website: www.aco-online.de
(in '000 EUR)
2004
2003
2002
4 2 0,0 0 0
21,000
Revenues
414,000
383,000
392,000
3 1 5,0 0 0
15,750
Total Assets
249,000
232,000
217,000
2 1 0,0 0 0
10,500
EBITDA
30,000
29,000
32,000
1 0 5,0 0 0
5,250
EBIT
15,000
14,000
17,000
0
Net Income
8,000
20,000
7,000
Employees
3,215
3,050
3,033
0
2 00 4
2 0 03
R e ve n ue s
200 4
2 0 02
20 03
EBIT
To ta l As s e ts
20 02
Net Inc ome
ACO was founded in 1946 by Josef-Severin Ahlmann in Büdelsdorf (Schleswig-Holstein). Starting as a local producer of concrete parts for
building construction, ACO developed to a globally known brand in the 70s due to it’s material expertise (stated by the company). According to
Aco, they became one of the leading companies in line drainage by producing drainage systems made of polymer concrete and established new
production sites in Switzerland, France, the USA and the UK.
In 2004 civil engineering contributed approx. 40% to ACO’s total turnover, building material made about 27% and building drainage about 17%.
ACO states to be one of the three globally operating companies in the agricultural construction market for pig production. This division
contributed approx. 8% of the firm’s total turnover in 2004. ACO also provides individual construction solutions made of cast iron and stainless
steel. In 2004 a share of 65% of the total sales was generated outside of Germany.
The main products of the different divisions are Civil Engineering (drainage channels, manhole covers and special covers), Building Material
(light shafts, windows, rain gutters, roof products), Building Drainage (stainless steel channels, pipes, separators, pumps, gullies) and Agriculture
(feeding equipment, ventilation, wall systems, floor systems, turnkey stables). ACO works very closely with local dealers for building material,
which play an important role in the different markets. More than 90% of the total turnover is generated by this dealer structure.
Auditor:
BDO Deutsche Warentreuhand AG
ante-holz GmbH
Address: Im Inkerfeld 1
59969 Bromskirchen-Somplar
Management: Acting Partner: Juergen Ante
Website: www.ante-holz.de
Founded:
(in '000 EUR)
2004
2003
2002
100,000
Revenues
89,749
72,088
65,180
75,000
Total Assets
45,645
37,287
43,342
50,000
EBITDA
7,074
6,872
7,330
25,000
EBIT
3,614
2,999
3,043
0
Net Income
1,819
1,106
1,243
Employees
532
446
467
1927
4,000
3,000
2,000
1,000
0
2004
2003
Revenues
2002
Total A ss ets
2004
2003
EBIT
2002
Net Income
Ante-holz GmbH is a traditional German family business, run in the third generation by Juergen Ante. The current CEO joined the company in
1974, following his father, uncle and grandfather into the management of the company. The grandfather, Josef Ante, initially founded a sawmill in
1927 in Zueschen, close to Winterberg. In 1980 the production site of ante-holz GmbH was built in Somplar.
The company is divided into five business divisions, which are represented by the five colours in the company logo.
Lumber: The lumber division offers standard products, including slats, planks, squared timber, planed lumber and special required dimensions.
Efficient organisational structures and optimised logistics ensure an on-time order execution. Upon request all products can be delivered
pressure impregnated or dipped, technical-dried, planed and sorted based on the firmness of the wood. In 2004 the lumber division contributed
approx. 46% to total revenue.
Laminated wood: The ante-leimholz GmbH & Co. KG offers a broad range of commercially available dimensions of gluelam beams (BSH and
KVH®). The high-class building materials, which are highly-stressable under static and quality aspects, are distributed in Europe through own
sales representatives, and within the US and Asia through specialised retailers. The laminated wood division contributed approx. 30% to total
revenue in 2004.
Precision Trimming: In Winterberg-Zueschen the ante-holz Group manufactures trusses and wood building constructions on two CNC-controlled
manufacturing lines at the precision rimming centre. All customers are provided with detailed assembly schedules. A high degree of prefabrication in combination with qualified employees guarantee a minimum of construction time on site. Required lumber and laminated wood are
obtained from the production site in Bromskirchen-Somplar. The precision trimming division contributed approx. 2% to total revenue in 2004.
House and Garden: ante Haus und Garten GmbH & Co. KG manufactures and sells a broad range of individual wood products for gardens,
balconies and terraces. The range of articles includes picket and panel fences, construction lumber, round timber, playing equipment, garden
furniture, carports and garden accessories. The house and garden division contributed app. 21% to total revenue in 2004. Energy: With
‘energies’ ante-holz produces wood pellets out of dried wood shavings. Therefore, a production site in Bromskirchen-Somplar was established in
November 2001. The energies division had a share of total revenue of approx. 2% in 2004.
Auditor:
W U P Treuhand GmbH, Hagen, Germany
- 162 -
Arnold Knipping Holding GmbH
Address: Hammerwiese 3
51647 Gummersbach
Management: Managing Directors:
Dieter Knipping
Ulrich Wellhäuser
Founded:
Industry: Chemicals, Plastics and Rubber
1988
Website: www.knipping.de
(in '000 EUR)
2004
2003
2002
55,000
4,4 00
Revenues
52,113
39,586
40,959
41,250
3,3 00
Total Assets
41,428
34,286
31,494
27,500
2,2 00
EBITDA
8,213
5,848
7,231
13,750
1,1 00
EBIT
4,234
2,387
3,878
0
Net Income
2,805
1,132
2,524
Employees
421
262
247
0
2004
2003
Revenues
2002
Total A s s ets
2 00 4
20 03
EB IT
2 00 2
Net In c o me
Arnold Knipping Holding GmbH was founded in 1988. Since 1998 the business activities are concentrated exclusively on the development and
manufacturing of components of plastic materials combined with metal. The revenue of the group grew from EUR 23m in 1998 to EUR 52m in
2004.
Auditor:
WTG Wirtschaftstreuhand KG Dr. Grüber & Co., Wuppertal
- 163 -
Biotest AG
Address: Landsteinerstrasse 5
63303 Dreieich
Management: CEO: Prof. Dr. Gregor Schulz
CFO: Dr. Michael Ramroth
Website: www.biotest.de
Founded:
(in '000 EUR)
1946
2004
2003
2002
380,000
20,000
Revenues
217,900
221,900
257,900
285,000
10,000
Total Assets
358,300
350,000
372,000
190,000
31,500
18,700
12,800
95,000
EBITDA
18,600
7,700
-6,800
Net Income
5,000
-5,700
-20,000
Employees
1009
1037
1263
EBIT
0
2004
2003
2002
-10,000
0
2004
2003
Rev enues
2002
-20,000
EBIT
Total A s s ets
Net Inc ome
The history of Biotest began in 1946, with the foundation of the Biotest Seruminstitut GmbH by Dr. Hans Schleussner and his father, Dr. C. A.
Schleussner. At that time, the company developed blood grouping test serums, which, in the company's view, established its world-wide
reputation. The company has been listed on the German stock exchange since 1987.
Biotest AG is divided into two major segments: The pharmaceutical division developing and producing new pharmaceuticals and the diagnostics
division manufacturing diagnostic systems. The company headquarters at the Dreieich location include the administration, research and
development, production, quality assurance and the sales and marketing departments.
Shortly after the incorporation of Biotest, the company developed the first therapeutic preparations based on research findings from the
diagnostics business. Today, Biotest offers an extensive range of biological products using state-of-the-art biotechnology processes. These often
life-saving medical products are manufactured from human blood plasma and are subsequently developed into: Immunoglobulin preparations
(antibody preparations) to combat bacterial or viral infections; Factor preparations (blood clotting factors) for the treatment of haemophilia
patients; Human albumin, which is used as a fluid replacement after severe burns or in shock therapy;Serum proteins for protein and antibody
substitution in the event of deficiency diseases.
The product portfolio includes a wide range of biological preparations. Plasma replacement preparations complete the product portfolio of
Biotest. Aggregate sales of the pharmaceutical division totalled EUR 142m in 2004.
Diagnostics: The timely detection of health risks is only possible by using conclusive and reliable diagnostics. As a manufacturer of diagnostic
systems, the company aims to transform complex diagnostic processes into simple, safe and proven test systems for routine application. Group
companies engaged in diagnostics include:
1. Diagnostics division of Biotest with blood group diagnosis, transplantation diagnosis, diagnosis of infectious diseases and hygiene monitoring
products.
2. Heipha Dr. Müller GmbH with an extensive portfolio of ready-to-use culture media
3. Viro-Immun Labor-Diagnostik GmbH with immunological testing for infection- and auto-immune diagnosis
Manufacturing is carried out in Germany and the USA. Research and development is located in Germany. The company’s products are
manufactured using state-of-the-art technology and in accordance with international quality standards. This is documented amongst other things
by ISO certification. Aggregate sales of the diagnostics division totalled EUR 76m in 2004.
Auditor:
KPMG Deutsche Treuhand-Gesellschaft AG
Böhm Fertigungstechnik Suhl GmbH
Address: Böhmstr. 1
98544 Zella-Mehlis/Suhl
Management: CEO: Wolfgang Sobolewski
Website: www.boehm-fertigungstechnik.de
Founded:
(in '000 EUR)
Revenues
2005
2004
37,914
33,473
1991
Industry: Machinery
4 5,0 00
3 0,0 00
Total Assets
1 5,0 00
EBITDA
EBIT
0
20 05
Net Income
Employees
233
2 00 4
R e ve nu e s
In 1991 Böhm was founded through a management-buy-out of the ZEISS-Jena Group, initiated by the private investor Hans-Dieter Böhm. 70
qualified employees were adopted to the new organisation. The initial main focus of business was in the commissioned production and the
manufacturing of assortments within the area of engineering and plant construction. Starting in the mid 90´s, Böhm consequently pushed the
development from a supplier to a proactive developer and producer of complex solutions. By using the latest manufacturing methods, permanent
innovation and by outsourcing labour-intensive production to Slovakia, Böhm strives for the innovation- and price-leadership within the market
segment. With the acquisition of MATEC in January 2004 a pure mechanical-engineer was integrated into the group. All activities of the Böhm
group are bundled in the Böhm AG, which was founded in 2005.
According to its manufacturing capabilities, Böhm group is divided into 4 business divisions: Mechanical manufacturing, Electronic
manufacturing, Installation and Thin sheet machining.
Böhm´s customers are situated mainly in Germany or Western Europe but operate in international markets. This means that Böhm´s products
are used world-wide and if required delivered globally. Currently the most important markets are Germany, Switzerland, Austria, Spain and South
Africa. Future expansions to Asia and the new member states of the EU are planned.
Auditor:
WestAudit AG
- 164 -
Bröer Holding GmbH
Address: Karlstrasse 8
58135 Hagen-Haspe
Management:
CEO: Hans Peter Bröer
Website: www.ebro-armaturen.de
Founded:
1972
(in '000 EUR)
2004
2003
Revenues
72,900
67,600
Total Assets
46,000
40,300
EBITDA
8,200
5,600
EBIT
6,900
4,100
Net Income
4,800
2,300
Employees
421
391
Industry: Mining, Steel, Iron and Nonprecious Metals
80,000
7,000
60,000
5,250
40,000
3,500
20,000
1,750
0
0
2004
2004
2003
Revenues
2003
EBIT
Total A ssets
Net Income
Ebro Armaturen Gebr. Bröer GmbH was founded in 1972 and is still an owner-managed, consistently growing and internationally successful
company of the German Mittelstand. On a global basis it has more than 30 years of experience in developing, producing and selling valves and
actuator technology for industrial users and building service engineering (air-conditioning, heating and ventilation systems), as well as the
requisite engines. Bröer Holding was founded to own 100% of Ebro Armaturen Gebr. Bröer GmbH’s shares. Bröer Holding also acquired 100%
of Stafsjö Valves AB in June 2005.
While Bröer Holding manages the centralised staff functions, the two subsidiaries are primarily focused on manufacturing and distribution. The
company operates in ten different business segments, each providing almost equally sized revenue contributions. The main market for Ebro
products is the global engineering and building services engineering market, with emphasis on bulk material facilities, drinking and sewage water
installations, building services engineering and ship and swimming pool construction. Stafsjö products are primarily used in the global
engineering market for paper manufacturing plants. As these business segments have different investment cycles, the company structure
reduces business risk significantly. Its broad geographical diversification also stabilises the company, according to the company.
Valve and actuator technologies are essential key functions in pipe systems, whether they transport fluids, gases or bulk materials. The company
offers important valve technologies (hatches, sliders and taps) in manifold models, using a variety of materials and numerous body calibres
(25mm to 1,800mm) within both its Ebro and Stafsjö product portfolios. Additionally, the company also provides the engines required powering
these systems. According to the company, the diversification of the Ebro and Stafsjö product portfolio is aimed to offset market developments in
different business segments, by reducing the effects of cyclical demand trends in a particular area. Markets with growing importance are China,
Australia, Eastern Europe and the Middle East, while product markets like the chemical industry and the brewery industry are also likely new
target markets for the company in the years ahead.
Auditor:
Felicitas Treuhand GmbH, Wirtschaftsprüfungsgesellschaft Köln
BUG Verkehrsbau AG
Address: Bergedorfer Strasse 13
12596 Berlin
Management:
Website: www.bug-ag.de
(in '000 EUR)
Founded:
2004
2003
2002
Revenues
29,269
30,006
23,086
Total Assets
10,972
9,679
EBITDA
2,401
EBIT
CEO: Martin Thomas
CFO: Jens Weber
COO: Henry Lademann
1990
30,000
2,400
22,500
1,800
8,557
15,000
1,200
1,584
993
7,500
600
2,306
1,486
948
0
Net Income
1,511
891
617
Employees
193
191
167
0
2004
2003
Revenues
2002
Total Ass ets
2004
2003
EBIT
2002
Net Inc ome
BUG Verkehrsbau AG was founded in 1990. The company employed almost 200 people in 2005. The main business segments are the new
building and reconstruction of railtrack and underground engineering as well as the installation and modernisation of cable constructions and
level crossings. Professional competence and logistics support these services. The experience in these segments and the know-how in
communications technology and electrical engineering are the foundation for offering perfect solutions.
BUG AG consists of three different divisions: Constructing railtracks including trading with and conditioning of the track superstructure (54,4%),
the railtrack underground engineering (36,9%) and the division for communications technology and electrical engineering (6,7%). Each division
acts independently with its own management, which are centralised under the leadership of the COO.
The railtrack construction division constructs and reconstructs railtracks. It is specialised in the sector of replacing rails and turnouts as well as
the methodical inspection of railtracks and turnouts. According to these services BUG AG provides changing single railroad sleepers and
renovation of railroad sleeper anchors and the after-insulation of tracks. Furthermore the railtrack construction division offers services for
constructing level crossings and black top works. The underground engineering division renders constructing services especially for earthmoving in conjunction with the erection of track systems, improvement of the bottom, construction of conduit systems, cable funnel systems and
train platform constructions.
In the company's point of view BUG Verkehrsbau AG possesses high professional competence in the construction of railtrack crossways, canal
streets built of concrete and conduit systems built on stilts. The realisation of a research and development project concerning the construction of
steep stone slopes next to traffic facilities completes the range of services of the underground engineering division. The communications
technology and electrical engineering section plans and realises projects concerning telecommunication LWL and electrical engineering. In
addition it installs, programs and services process controlled video systems. High-skilled experts execute switching operations during ongoing
business of the transmission systems. Modern equipment for the technique of passing cables allows high quality passing and installing of cable
carry systems at problematic installation locations.
With Deutsche Bahn AG as main client, BUG Verkehrsbau AG sees itself having an assured market position in the market of public clients.
According to the company, BUG Verkehrsbau AG possesses very good customer relations with regional and private railway operators. Especially
in the sector of communications technology and electrical engineering the company was able to acquire new private clients which – according to
BUG – complete the company's well balanced customer structure. As a result of its experiences in relevant projects, BUG Verkehrsbau AG is
able to recognise and to capitalise on the full potential of tenders. Its high flexibility allows the company to realise prompt strategically important
(sub-) projects meeting high quality standards. Consequently sustainable customer relationships have been established.
Auditor:
Dipl.-Kaufm. Bernd Neuendorf, Wirtschaftsprüfer und Steuerberater
- 165 -
Colloseum Handels und Beteiligungs GmbH
Address: Lessingstrasse 15
46149 Oberhausen
Management: CEO: Uwe Drzeniek
CFO: Klaus Hofmann
COO: Susanne Repschläger
Founded:
Industry: Retail Stores
1996
Website: www.colloseum.de
(in '000 EUR)
2004
2003
2002
150,000
4 ,0 00
145,493
73,738
71,186
112,500
3 ,0 00
11,318
14,966
9,371
75,000
2 ,0 00
EBITDA
6,403
3,998
4,317
37,500
1 ,0 00
EBIT
3,431
1,855
1,911
0
Net Income
1,314
1,872
1,107
Employees
557
302
258
Revenues
Total Assets
0
2004
2003
Revenues
20 04
2002
200 3
EBIT
Total As s ets
200 2
Net Inc ome
Founded in 1996, with one single women's apparel store in Berlin, Germany, COLLOSEUM has established more than 170 stores and three
retail brands including COLLOSEUM, FOREVER 18 and TACK.
According to COLLOSEUM, the company sees itself as a leading German speciality retailer, offering clothing, accessories, personal care
products and shoes for women, men and children under the COLLOSEUM, FOREVER18 and TACK brand names. As of September 2005,
COLLOSEUM operates more than 170 stores. Customers can shop at COLLOSEUM stores in Germany and Poland, whereas FOREVER18 and
TACK only exist in Germany.
Colloseum Handels- und Beteiligungs GmbH (the "Company") was a subsidiary of Glaus Holding AG (to be renamed: Multistore Holding AG),
Switzerland. In 2005, the Company was sold by Glaus Holding AG to Colloseum Holding AG, Switzerland. Sole shareholder of Glaus Holding AG
as well as of Colloseum Holding AG was, at the time of the transaction, Peter Glaus who sold his shares in Glaus Holding AG thereafter to a
third party. From a legal perspective, it may not be excluded that the transfer of the shares may be voidable under Swiss law so that the shares
in Colloseum Handels- und Beteiligungs GmbH would still be in the ownership of Glaus Holding AG. It should be noted that these facts are
related to and may effect only the shareholders of Colloseum Handels- und Beteiligungs GmbH but not the Company itself.
Auditor:
RWP ROTTHEGE WASSERMANN GMBH, Düsseldorf, Essen, Bochum, Warzawa.
Combase AG Betriebs- und Beteiligungsgesellschaft
Address: Seligenstaedter Strasse 100
63791 Karlstein am Main
Website: www.com-base.de
Management:
CEO/CFO: Mr. Sack
CSO: Mr. Trunk
Founded:
2000
2004
2003
2002
8 0,0 00
Revenues
72,538
48,997
35,004
6 0,0 00
Total Assets
(in '000 EUR)
Industry: Electronics
5,000
4,000
3,000
31,466
23,078
21,033
4 0,0 00
EBITDA
6,519
2,676
1,061
2 0,0 00
EBIT
4,641
696
-926
0
Net Income
2,973
231
169
Employees
654
606
478
2,000
1,000
0
2004
20 03
Re v enues
2 002
To tal A s s ets
-1,000
2004
2003
EBIT
2002
Net Incom e
In the ComBase Group's view, it has developed a leading service providers for logistics, repair and customer care services in Europe and is
further expanding in order to become one of the leading service providers in EMEA since 2000. ComBase AG was founded in 2000 as a holding
for the subsidiaries All in 1 GmbH, CS GmbH, EPC GmbH, ComPeople GmbH and Cosmo Consult GmbH. In 2002, EPC GmbH took over m+s
EDV Service GmbH & Co. KG. In 2004, ComBase Germany began to co-operate with SCR ComBase in Switzerland. In January 2005, ComBase
Austria was founded in Schwechat near Vienna to serve the Austrian market. Since March 2005, ComBase is able to offer its services also in
Africa by co-operating with CSL ComBase in South Africa.
The logistics division contributes approx. 37% of the total revenue. Customer care Services make up approx. 3% and Repair Services for IT,
Telecommunication, Multimedia and Entertainment (Times-Markets) approx.. 60%. The divisions are legally independent companies with their
own operational management. The sales/marketing, finance, controlling, accounting, IT, human resources and administration functions are
bundled within ComBase AG Holding. All in 1 GmbH, founded in 1998 offers Logistics and Customer Care Services which include warehousing,
customising, order management, distribution and reverse logistics such as a customer service centre and trade-in. Euro Point Communication
GmbH, founded in 1994, is a service provider for the IT, Multimedia, Entertainment and Security sectors and offers repair service logistics,
refurbishing and recycling. IT-repair-know-how and competence on board level was bought by the acquisition of m+s electronics in 2002. Within
the following years the competence was enhanced to IT, Multimedia and Entertainment-repair-know-how. CS Communications Service GmbH,
founded in 1994, offers repair services to the telecommunication market.
ComBase Austria GesmbH, founded in 2005, provides both, logistics and repair services for the TIMES segments in Austria. ComBase Austria
is expected to develop into a hub for Central and Eastern Europe in the near future. The subsidiaries ComPeople GmbH and Cosmo Consult
GmbH act as internal service roviders. ComPeople acts as a temporary employment agency for the operations division. Cosmo Consult is a
Navision Solution Centre, which provides licences and IT-services for the group.
ComBase offers complete service solutions along the supply chain. Thus, ComBase can serve the customer with a variety of services
throughout the life of electronic and electro technical products. Each service part can be selected separately and can function independently.
Logistics services cover the entire supply chain process and include Warehousing, Customising, Order Management, Distribution and Reverse
Logistics. In the field of Customer Care Services, the company offers multi-lingual call centre services via telephone, email or internet, which
include inbound and outbound calls as well as e-commerce solutions, letter shops and trade-in. Repair Services range from the logistics of an
arranging pick-up, desk to desk and SWAP services to error reporting, chip/product repair, refurbishing and recycling.
Auditor:
Günther Rhode, chartered accountant, Welzheimer Strasse 35, 63791 Karlstein
- 166 -
Erich Rohde KG Schuhfabriken
Address: Erich-Rohde-Strasse 22
34613 Schwalmstadt
Management:
Website: www.rohde-schuhe.de
Founded:
(in '000 EUR)
2004
2003
2002
Revenues
168,924
163,460
177,387
Total Assets
183,766
160,515
14,105
EBIT
General Partner: Friedrich Wilhelm Schmitt
Limited Partner: Christoph Schmitt
CFO: Gerhard Dickel
Industry: Textiles and Leather
1947
190,000
9,000
142,500
6,750
166,893
95,000
4,500
16,361
16,380
47,500
2,250
6,918
8,623
8,220
0
Net income
2,231
3,061
2,722
Employees
2,653
2,787
3,073
EBITDA
0
2004
2003
Revenues
2004
2002
2003
EBIT
Total Assets
2002
Net income
Erich Rohde KG was founded in 1947 and started its business by producing shoes from used materials. After the establishment of a production
facility in 1954 and the opening of the first subsidiaries in Hallein (Austria), Immichenhain, Schrecksbach and Borken in 1960, the ownership and
management transferred to general partner Friedrich W. Schmitt; this was upon the death of the founder Erich Rohde (1965). Since F. W.
Schmitt has expanded the production to Santa Maria de Feira and Pinhel (Portugal), robotised production (1988) and software driven designing
(1989) has been introduced and a completely automated high rack warehouse system (1995) has been established. In 1996, the company
signed an exclusive OEM contract with Daniel Hechter, Paris. During the last couple of years, Erich Rohde KG has founded a new creative
design centre, reorganised the production process at the Schwalmstadt plant and implemented an active market development strategy in Central
and Eastern Europe. In 2005, the company took over the exclusive distribution rights for the West-Coast brand in order to expand the product
portfolio into the young fashion sector.
All overhead units, such as human resources, finance, accounting, purchasing, distribution, export and business development are controlled and
directed by authorised officers. The R&D department works closely with the sales and distribution department in order to identify fashion trends,
satisfy current customer needs and motivate the sales teams. All new products are discussed with members of the sales and distribution
department at the beginning of every selling season.
Erich Rohde KG’s product portfolio extends to nature form sandals, stylish comfort sandals, sports styled outdoor shoes, all-weather boots
equipped with Sympatex-technology, fashionable Daniel Hechter shoes for women and men and young men’s West-Coast shoes. The
company’s main customers include small and medium sized retailers and department stores in Germany and foreign markets. The German
market is covered by 54 employed sales representatives.
Auditor:
UWP Unitreu GmbH, Frankfurter Strasse 10 – 14, 65760 Eschborn
Europart Holding GmbH
Address: Martinstrasse 13
58135 Hagen-Haspe
Management:
Bernd Pederzani, Peter Viefhues
Horst Markus, Klaus Niemeier
Website: www.europart.net
Founded:
1948
(in '000 EUR)
Industry: Automobile
2004
2003
2002
260,000
6,000
259,900
243,100
225,700
195,000
4,500
36,600
30,600
32,800
130,000
3,000
EBITDA
6,600
8,600
7,400
65,000
1,500
EBIT
4,200
5,900
3,600
0
Net Income
3,300
3,100
1,700
Employees
1,020
1,001
1,007
Revenues
Total Assets
0
2004
2003
Revenues
2002
Total A s sets
2004
2003
EBIT
2002
Net Income
The Company was founded in 1948 as a spring trading company under the name Westdeutsche Federnzentrale Wachenfeld GmbH & Co. KG.
In 1990 the shareholding family Pederzani decided to focus their financial commitment on the dealer business only. In their view, the company
developed to a leading commercial vehicle parts dealer in Germany during the last ten years. This position was consolidated in 2001 by acquiring
Schomäcker Handel. In 1998 aqnd 2000 the company entered the screws- and tools markets in 1998 and 2000. Additionally, the foreign market
business enhanced after successfully consolidating the Danish and British subsidiaries. Experiences in managing foreign market subsidiaries,
gained through that process, also served as basis for the rapid development in Eastern and South Eastern Europe and in all Baltic and
Scandinavian Sea markets. In 2000, the company was transformed into Europart Holding GmbH.
On December 31st 2004, the Europart group consisted of six German entities and 18 subsidiaries in other European countries. The Europart
Holding GmbH bundles overhead functions including warehousing and logistics and holds shares in the distribution subsidiaries Technical Trade
and Industry Service Domestic and in all foreign market subsidiaries via Europart International Beteiligungs-GmbH. The Europart Holding acts as
service provider for the operative units and is responsible for all central overhead functions. The three distribution unit managers direct their
businesses according to strategic guidelines of Europart Holding and are individually responsible for their sales and income results. The
company focuses on two main business segments: vehicle spare parts and garage supply for handcraft and industry businesses. The sales
generated in the core business segment commercial vehicle parts account for approximately 78% and the segment automobile parts for
approximately 5% of total sales. The young and still developing segments of the business unit garage supply for handcraft and industry
businesses already contributes approximately 17% of total sales.
The company’s strategic focus lies on garage supply for handcraft and industry businesses, where it expects the largest future growth. Moreover,
the further development of business activities in foreign markets represents an important perspective in terms of stable future development. The
company is determined to enter new markets due to the limited perspectives of the German spare parts market, which is – according to the
company - about to reach its growth limits and will be dominated by extensive competition in the future. According to the company’s strategy,
growth shall, on the one hand, be realised through promoting the new assortments and gaining further markets via crowding out and the new
distribution channel mail order selling. On the other hand, this shall be reached through the further expansion of the branch network in other
European markets and by exploiting new market potentials.
Auditor:
BDO Deutsche Warentreuhand Aktiengesellschaft, Wirtschaftsprüfungsgesellschaft
- 167 -
Fritz Blanke GmbH & Co. KG
Address: Industriestrasse 6-12
32108 Bad Salzuflen
Management:
Website: www.blanke-textil.de
Founded:
(in '000 EUR)
CEO: Andreas Blanke
CFO: Rüdiger Mersch
COO: Manfred Schneider
Industry: Textiles and Leather
1948
2004
2003
2002
35,000
1,600
Revenues
33,066
33,614
33,316
26,250
1,200
Total Assets
10,350
11,008
12,225
17,500
800
EBITDA
2,420
2,724
2,510
8,750
400
EBIT
1,306
1,559
1,343
0
Net Income
1,038
1,188
1,019
Employees
236
258
275
0
2004
2003
Revenues
2002
2004
Total A s sets
2003
EBIT
2002
Net Income
Fritz Blanke GmbH & Co. KG was founded by Fritz Blanke in 1948 and is in third generation family owned. Limited partners of the company are
Andreas Blanke and Ernst-August Blanke with shares of 55% and 45%, respectively. Since 2004, Andreas Blanke manages the company as
CEO. It exclusively acts as commission refiner and is specialised on textile refining, lamination, coating and imprinting. Employing 250 people
and producing on 30,000 sqm, the company is able to produce a maximum of 17 million meters of refined textiles per annum.
The company’s total sales are generated in three major business segments: Fashion textiles (e.g. soft furnishings, sport clothes and bodice
products) contributing 20%, technical textiles for the automobile industry (vehicle interior carpeting, airbags, clipboards) accounting for 65% and
other technical textiles adding around 15%. Moreover, the foreign market portion of total sales in 2004 was around 16.9%. These were
generated in France (12.3%), Poland (1.6%), Slovakia (1.3%) and other European countries (1.7% being the Netherlands, Belgium and
Denmark). The company’s domestic customers carried out additional foreign shipping.
The basic textile refining process consists of treating the raw materials with self-developed washing, bleaching, coating and finishing
technologies. These processes result in textiles with altered or modified characteristics, for example all kinds of protective clothing (protective
gloves, vests), fireproofed materials and water-repellent (vehicle interior carpeting) or anti-bacteriostatic textiles. Textile lamination produces
coatings or laminations between different kinds of materials. For example this is used in the automobile industry (interior design), the shoe or
helmet manufacturing (motorcycle helmets) or the clothing industry.
Auditor:
INTECON GmbH, Bielefeld
Gebrüder Trox GmbH
Address: Heinrich-Trox-Platz
47504 Neukirchen-Vluyn
Management: CEO: Dr. Helmut Franzen
CFO: Dr. Elmar Ewen
CTO: Bernd Huber
Founded:
1951
Website: www.trox.de
(in '000 EUR)
2004
2003
2002
Revenues
242,000
244,100
264,400
Total Assets
131,000
134,400
149,700
12,700
13,800
12,400
EBITDA
5,800
EBIT
5,800
3,500
Net income
1,100
-200
-1,900
Employees
2,544
2,592
2,732
270,000
6,000
202,500
4,000
135,000
67,500
2,000
0
0
2004
2003
Revenues
2002
-2,000
Total A s s ets
2004
2003
EBIT
2002
Net income
Gebrüder Trox GmbH was founded by Heinrich and Friedrich Trox in 1951. In 1970, the brothers Heinz and Klaus Trox took over the company’s
management. Today, Heinz Trox is still member of the supervisory board of the company. According to Gebrüder Trox GmbH, it developed into
a leading provider for components, devices and systems for air conditioning during the last 50 years. Besides organic growth, the company also
acquired Hesco Schweiz AG, market leader in Switzerland (according to Gebrüder Trox GmbH), in 1998 and Auranor Gruppen AS, market
leader in ventilation and air conditioning systems in Norway (according to Gebrüder Trox GmbH), in 2005. By purchasing Fenster System
Lüftung
GmbH
in
2002,
Gebrüder
Trox
GmbH
entered
the
market
for
decentralised
ventilation.
Gebrüder Trox GmbH generates sales in eight different product segments (in % of total sales): Air distribution (39%), fire protection (16%), air
flow control (16%), filters (11%), acoustics (6%), air-water systems (6%), air handling units, fans and expansion joints (5%) and decentralised
ventilation (1%). All staff departments are centralised in the German headquarters and all foreign market subsidiaries are supervised and
supported from there, as well.
Today, the company manufactures and offers fire and smoke dampers, decentralised ventilation, air-water systems, air diffusers, air filters,
volume flow control units, sound attenuators and system technology. In general, each regional market and its structure is depending on the
public and commercial construction business. Currently, there is an increasing importance of air conditioning renovation. In terms of tunnel
dampers (part of the fire protection segment), the company emphasises on infrastructure projects (civil engineering, road, metro and railroad
tunnels) in South East Asia. Due to the company’s broad and internationally diversified business model, variations in economic cycles in different
regions can be balanced quite well. Energy saving regulations and the rising demand for safety (tighter standards) will increasingly require
specific and technically challenging products and solutions. Gebrüder Trox GmbH states to be able to capitalise on this trend due to its
engineering know-how and its experience in numerous different markets.
Auditor:
PwC Deutsche Revision Aktiengesellschaft, Wirtschaftsprüfungsgesellschaft Düsseldorf
- 168 -
Geiger technik GmbH
Address: Breitenauerstrasse 1a
82467 Garmisch-Partenkirchen
Website: www.geigertechnik.de
(in '000 EUR )
Revenues
Management: CEO: Dr. Albert Michael Geiger
CFO: Werner Bildner
COO: Ernst Friedrich Hahn
Founded:
1960
2004
2003
2002
115,000
110,100
105,239
106,526
86,250
Total A ssets
57,500
EBITD A
28,750
EBIT
0
Net Incom e
Em ployees
2004
862
878
2003
2002
925
Revenues
GEIGER technikGmbH was founded by Dr. Albert Michael Geiger’s grandfather Albert Geiger in 1960. The company then produced plastic water
tanks for Volkswagen, which substituted former used metal water tanks for the cooling unit of the engine. GEIGER technik GmbH states to be
the first producer of welded break-fluid-reservoirs, expansion tanks and produced mould fuel tanks for BASF. In the eighties, GEIGER technik
GmbH enlarged their production by newly invented products for European car engines. Two new production plants in Murnau (Bavaria) and
Tambach-Dietharz (Thuringia) were built. Beginning with the mid nineties, changes within the automobile industry were speeding up dramatically.
Suppliers were forced to position themselves globally while at the same time costs had to be reduced – a fact that is still present today. In 2004
GEIGER technik GmbH established GEIGER technik Polska in Sosnowiec/Katowice Poland and furthermore is testing market possibilities in
China, USA and Brazil.
Engineering constitutes about 15% of total revenues. As an engineering partner of the automobile industry, it is responsible for “black box”
engineering projects. In most cases GEIGER technik GmbH is liable for product design and guarantees functionality. Operations contribute
about 85% of total revenue. As a mass producer GEIGER technik GmbH has to guarantee the high quality demands of customers and assure
state-of-the-art efficient production processes.
Currently nearly all GEIGER technik GmbH customers are within the automobile industry. Nevertheless, GEIGEReco² is not focused on a certain
sector. Every industry with a focus on the combination of ecological and economic challenges to be achieved through the use of sophisticated
product and process innovations with novo materials are target markets.
Auditor:
Treuhand Union GmbH, Sonnenstrasse 20, 80331 München
Gustav Hensel GmbH & Co. KG
Address: Gustav-Hensel-Strasse 6
57368 Lennestadt
Management: CEO: Felix Hensel
CFO & COO: Sigurd Siebel
Website: www.hensel-electric.de
Founded:
(in '000 EUR)
Industry: Electronics
1931
2004
2003
2002
62,000
Revenues
61,200
60,100
61,800
46,500
3,000
Total Assets
18,500
18,000
18,600
31,000
2,000
EBITDA
4,100
4,500
6,500
15,500
1,000
EBIT
1,600
1,500
3,600
Net Income
600
400
2,400
Employees
538
553
579
4,000
0
0
2004
2003
Revenues
2002
Total Ass ets
2004
2003
EBIT
2002
Net Inc ome
Gustav Hensel GmbH & Co. KG was founded in 1931 in Radevormwald by Gustav Hensel and Ernst Bisterfeld. In 1947, the company moved to
Lennestadt-Altenhundem. Three years later, the company employed 70 people and owned a 3,500 sqm property. In 2005 app. 550 employees
worked for Gustav Hensel GmbH & Co. KG and its subsidiaries in Kirchhundem, Siegen and Grimma. Additionally, seven foreign entities
employed another 190 employees.
The company is divided into two major business units. The first unit focuses on standardised products such as DK cable offsetting units, KT
cable sustaining devices and KV-, Mi- and MC-distributors. The second business segment is engaged in the projecting and manufacturing of
customer specific, low voltage range switch gears.
Gustav Hensel GmbH & Co. KG is a German Mittelstand company offering a premium range of products and services for the electrical building
equipment industry. The company especially covers non-residential real estates like hospitals, schools, sports centres, industrial, administration
and traffic infrastructure buildings. Its customers are electric wholesalers, which serve electric handcraft companies, industrial firms and building
companies with a focus on electric installations.
Auditor:
Wirtschaftsprüfungsgesellschaft Bachem, Fervers und Partner, Solingen
- 169 -
Hackforth Holding GmbH & Co. KG
Address: Heerstrasse 66
44635 Herne
Management:
CEO: Bernd Hackforth
COO: Peter Roth
Website: www.vulkan24.com
Founded:
1990
(in '000 EUR)
Industry: Machinery
2004
2003
2002
115,000
25,000
112,456
100,124
100,157
86,250
18,750
Total Assets
86,633
80,929
102,015
57,500
12,500
EBITDA
13,975
14,112
26,163
28,750
6,250
EBIT
10,358
10,418
22,378
0
Net Income
5,726
4,758
16,139
Employees
868
708
693
Revenues
0
2004
2003
Revenues
2004
2002
2003
EBIT
Total Assets
2002
Net Income
Hackforth GmbH & Co. KG, a transmission technology company, started its business in 1945 in Herne, today’s head office. The engineer
Bernhard Hackforth (born in 1914) managed the former small engineering company after his father assigned him with the responsibility at the
age of 35. The company produced clutches and piston rings that were mainly applied to the new railways. In 1977, Bernhard Hackforth’s son,
Bernd Hackforth, born in 1949 and holding a degree in business administration, became legal partner of the company. The corporate group –
managed as a single entity – was transformed into a limited partnership company, operating under the name VULKAN Kupplungs- und
Getriebebau B. Hackforth GmbH & Co. KG. The Vulkan Hackforth-Group grew and soon achieved a global presence in Europe, South- and
North America and Asia. In 1990, Hackforth Holding GmbH & Co. KG was created in order to establish business standards for the whole group
such as managing strategic decisions and money flows.
Hackforth Holding consists of two major business divisions. Vulkan Kupplungs- und Getriebebau B. Hackforth GmbH & Co. KG, former
Maschinenfabrik Hackforth, manufactures couplings and transmission systems and is managed by Dr. Andreas Böhme. The second division,
Vulkan Lokring Rohrverbindungen GmbH & Co. KG, was founded in 1979 and produces a proven tube connection technology. This division is
managed by Dieter Schwalm. In addition, the group owns 14 foreign subsidiaries that generate 40% of the total sales. 49% of all sales are
contributed by Vulkan Kupplungs- und Getriebebau B. Hackforth GmbH & Co. KG, while Vulkan Lokring Rohrverbindungen GmbH & Co. KG
generated an additional 11% of the total sales in the year 2004.
Vulkan Kupplungs- und Getriebebau B. Hackforth GmbH & Co. KG manufactures couplings in its head office in Herne, Germany as well as in
Brazil, the USA, China and India. The products are applied to engines of ships, boats, generators and general industrial machines with a
performance spectrum ranging from 0.1 to 2,400 kNm.
With over 110 years of experience in the area of motive engineering, the company guarantees the highest quality standards across their product
range. Customer-centred innovations, quick delivery times and world-wide services make Vulkan Hackforth a reliable business partner that is
competent and experienced in applications and approved coupling programmes.
Vulkan Lokring Rohrverbindungen GmbH & Co. KG offers a proven tube connection technology for producing hermetically sealed metal-to-metal
tube joints. This tube connection has many advantages, one of the most significant being that damage to the connection associated with
soldering, brazing, welding or screw cutting is eliminated. Furthermore, Vulkan Lokring offers products used for the installation and repair of air
conditioning systems for households, offices and automobiles. The tube connection technology is designed for the use in air conditioning and
refrigeration systems, refrigerators and deep freezers or automotive air conditioning systems.
Auditor:
KPMG Deutsche Treuhand-Gesellschaft Wirtschaftsprüfungsgesellschaft Aktiengesellschaft, Essen, Germany
Hans Warner GmbH
Address: Raiffeisenstrasse 12-14
40764 Langenfeld
Management:
CEO: Rosmarie Warner
CEO: Hans Michael Warner
Website: www.hans-warner.de
Founded:
1950
(in '000 EUR)
2004
2003
65,000
Revenues
62,343
64,330
48,750
Total Assets
41,931
46,318
32,500
EBITDA
4,5 00
3,0 00
1,5 00
14,255
10,557
16,250
EBIT
4,459
1,948
0
Net Income
1,032
-1,066
Employees
236
252
0
2004
2003
Revenues
Total As sets
2004
2003
-1,5 00
EBIT
Net Inc ome
Hans Warner GmbH was established in 1950 by entrepreneur Hans Warner as a sales company for machines and equipment in the
construction business. In 1955 Hans Warner became the general representative of Hünnebeck GmbH, a company selling construction
equipment for formworks and scaffolding. In 1957 Hans Warner became a factory salesman for tower cranes of Liebherr-Werk Biberach GmbH.
Due to the early death of the company founder and his wife in 1978, the company was managed by the second generation, Hans Warner’s
children Rosemarie and Hans-Michael Warner.
With a wide range of construction equipment and machines, Hans Warner GmbH has become a retail and servicing specialist, that concentrates
on three business segments:
1. Sales and leasing of construction equipment for formworks and scaffolding of the Hünnebeck GmbH, Ratingen, accompanied by
comprehensive service offerings. Services range from counselling, planning and development of special constructions to the complete
supervision of construction sites. As claimed by the company Hünnebeck GmbH is counted among the most outstanding suppliers of formworks
and scaffolding and is known for its high quality standards, optimal flexibility and a maximum of efficiency.
2. Sales and leasing of tower cranes of the Liebherr-Werk Biberach GmbH. According to Liebherr, it is a world leader in the field of spinning
tower cranes and is known for its leading technical, quality and economical standards. Whether buying or leasing, Warner is a complete solution
provider for tower cranes. The company’s services include the counselling on construction sites, the comprehensive analysis of the
requirements, transportation, installations, reparations and maintenance.
3. The goal of Warner’s distribution program is to offer complete servicing solutions for construction and trade businesses. Warner provides all
products that are required for construction sites, including tools, supplies, protection equipment and consumable articles. In this division a lot of
equipment and machines are also offered for leasing.
Auditor:
Treuhandgesellschaft: Rödl & Partner , Nürnberg
- 170 -
Härterei und Qualitätsmanagement GmbH
Address: Fraunhoferstrasse 2-4
04178 Leipzig
Management:
CEO: Dr. Siegfried Krüger
CFO: Heidi Jakob
Website: www.hqm-gmbh.de
Founded:
1993
(in '000 E U R )
Re ven ue s
2 004
20 03
20 02
57,107
73,5 28
18,8 80
To tal A sse ts
75,000
56,250
37,500
E B IT D A
18,750
E B IT
0
Ne t In c om e
E m ploye es
2004
192
1 33
2003
2002
1 29
Rev enues
Härterei und Qualitätsmanagement GmbH (HQM) was founded in 1993 by Dr. Siegfried Krüger. In addition to the foundation segment hardening
and surfacing techniques, the following business units amended the original product portfolio:
- Measuring and inspection equipment management (1994; Chemnitz)
- Engine component manufacturing (1998; Chemnitz)
- Container cleaning and purification (2002; Chemnitz)
- Construction, programming and quality planning (2003; HQM Systemhaus GmbH)
- Heat treatment technology (2004; Wuppertal)
- Mould construction for pour models and jigmaking (2004)
- Chemical and physical material analysis (2005, Chemnitz)
- Body measurement (2005; Bratislava)
- Container cleaning and purification (2005; Leipzig)
HQM Group is divided into four major business units. The first unit, hardening and surfacing techniques, is located in Leipzig and Wuppertal and
provides all established heat treatment techniques including resistance rays. Additionally, this unit develops new heat treatment procedures.
Capacities are allocated towards engineering and automobile manufacturing with approx. 50% each. The second unit operates as a direct
automobile supplier and manufactures engine and body components. Measuring, testing and material techniques form the third unit, which is
located in Leipzig, Chemnitz and Bratislava. This unit focuses on quality planning, CAD construction and programming of measuring devices.
Finally, the fourth unit, mechanical production, is engaged in manufacturing mechanical engine and gearing components.
HQM defines the German car manufacturing industry as its major target market and sets a peculiar focus on central Germany. Additionally,
international markets are for example targeted by the initiated development of the Bratislava (Slovakia) site.
Auditor:
CT Commerzial Treuhand Wirtschaftsprüfer und Steuerberater GmbH, Germany
Industriebau Wernigerode GmbH
Address: Dornbergsweg 22
38855 Wernigerode
Management:
Website: www.industriebau-wernigerode.de
Founded:
(in '000 EUR)
CEO: Christian Klose
CFO: Eckmut Meinhold
COO: Peter Schmidt
1990
2004
2003
2002
65,000
2,800
Revenues
62,824
56,836
55,333
48,750
2,100
Total Assets
44,884
43,773
53,419
32,500
1,400
EBITDA
2,679
2,429
3,129
16,250
700
EBIT
1,929
1,781
2,669
0
Net Income
452
444
167
Employees
209
230
231
0
2004
2003
Revenues
2002
Total As sets
2004
2003
EBIT
2002
Net Inc ome
Industriebau Wernigerode GmbH was established in 1990 through a management-buy-out of the former construction firm Magdeburg. The
company employed 1,600 people at that time and the business areas were fragmented into various segments like steel construction and window
production. To meet market needs and to create more efficient and flexible processes, a reorganisation of the business was necessary. In 1996
the first subsidiary, the Wernigeroder Baumaschinen GmbH was founded, followed by the IW Bauwert-Consult & Verwaltungsgesellschaft GmbH
in 1998. This step was necessary to be able to offer additional services like architectural planning, construction management and administrative
services including facility management to their customers.
According to the company, Industriebau Wernigerode’s competitive advantage lies in the broad servicing spectrum as well as in the
specialisation of specific segments. About 45% of total revenue is generated with industrial clients and 35% within the commercial building
sector. The performance of residential building constructions is app. 20%. Due to market developments, the business in residential buildings was
reduced by 60% in 2004 and caused a shift of activities to other segments. Projects in the industry sector include industrial facilities and office
buildings, mainly for the auto supplier, steal industry, foundries, and so on. Commercial buildings include retail buildings, schools, social
institutions, sports fields and swimming pools. Among domestic buildings, multi-story buildings and individual private homes were built.
Industriebau Wernigerode GmbH focuses on an expansion of all three market segments. Construction projects in the industrial, commercial and
residential segment provide project development, construction, administration and management services. Construction business in the federal
state of Saxony-Anhalt were extended to nation-wide engagement in the last few years. According to the company this process will be pursued
and will guarantee constant growth. Last year the first foreign project, a recreational facility in Austria with a spa and swimming pools, was
realised by Industriebau Wernigerode GmbH.
Auditor:
Financial statements are audited by PricewaterhouseCoopers AG, Magdeburg, based on HGB standards.
- 171 -
Jacobi Ton- und Ziegeleibeteiligungs-KG
Address: Osteroder Strasse 2
37434 Bilshausen
Management:
Helmuth Jacobi
Klaus Jacobi
Website: www.jacobi-tonwerke.de
Founded:
1860
(in '000 EUR)
Industry: Building and Real Estate
2004
2003
2002
70,000
8,000
Revenues
45,063
48,585
46,661
52,500
6,000
Total Assets
59,908
60,466
67,974
35,000
4,000
EBITDA
11,769
11,598
15,179
17,500
2,000
EBIT
5,534
4,026
7,423
0
Net Income
1,958
628
3,206
Employees
345
337
342
0
2004
2003
Revenues
2002
2004
2003
EBIT
Total Assets
2002
Net Income
Jacobi Ton- und Ziegeleibeteiligungs-KG is a family owned holding vompany of Jacobi Group. Jacobi has been producing high quality clay
rooftiles for more than 140 years. During the last twelve years, five new plants have been established and equipped with the latest manufacturing
facilities.
The operative business of Jacobi is managed by Jacobi Tonwerke GmbH. Further members of the Jacobi Group are the clay pit operator
Tongrube Rotenberg GmbH and the Jacobi & Schulte KG.
Jacobi produces an estimated number of 50 million rooftile units per year and is currently offering 17 different models, including substantial
equipment from ridge to eaves. Some product examples are glazed rooftiles, noble engobed rooftiles, standard rooftiles, plain tiles and ceramic
equipment. The largest customers are Melle GmbH, Dachdecker-Einkauf Koblenz eG, Dachdecker-Einkauf Hamm eG, Raiffeisenwarenzentrale
Kassel eG and Raab Karcher Baustoffe GmbH, which account for 25% of total revenue. Wholesalers, such as Hagebau, Interbaustoff and IDF
contribute to another 25% of total revenue.
Auditor:
Hindenburg Revision GmbH, Wirtschaftsprüfungsgesellschaft
Kaefer Isoliertechnik GmbH & Co. KG
Address: Bürgermeister-Smidt-Str. 70
29195 Bremen
Website: www.kaefer.com
(in '000 E UR )
Management: CEO: Norbert Schmelzle
Domestic markets: Jörn Fetköter
Foreign markets: Peter Hoedemaker
Founded:
1918
2004
2003
2002
580,000
Revenues
575,600
546,800
505,500
435,000
Total Assets
248,400
239,100
232,400
21,800
18,200
16,500
5,650
5,820
5,230
EB ITDA
Em ployees
290,000
145,000
0
2004
2003
Rev enues
2002
Total Assets
The company was founded under the name of Carl Kaefer & Co. in 1918 and focused on ship insulation. In the mid 60´s, the company started to
establish international subsidiaries. Kaefer enhanced this internationalisation process during the last seven years. Meanwhile, more than 50% of
total sales are generated abroad. Nowadays, the company is engaged in the divisions industry, shipbuilding and construction, which employ
around 7,000 people and generate total sales of more than EUR 600 million.
The division “industry insulation” generates around 60% of sales. Core businesses in this segment are heat and cold insulation of power plants,
chemical and petrochemical facilities. The construction segment contributes another 20% to total sales. It comprehends interior finishing of
administration buildings for assurances or public authorities and facade renovation and interior finishing of old buildings. Another 18% of total
sales are added by the shipbuilding segment, which summarises ship insulation and the interior finishing for cruise vessels, ferryboats, tanker
ships and navy vessels. Finally, core business related products such as fire protection window systems or Lolamat platters account for the
remaining 2% of total sales.
Starting from segments which Kaefer identified as its core competencies, the company will enter additional markets where these competencies
are of importance.
Auditor: Rödl & Partner GmbH, Wirtschaftsprüfungsgesellschaft, Nürnberg
- 172 -
Kemmer Technology AG
Address: Hangendeinbacherstrasse 4
73527 Schwäbisch Gmünd
Management:
CEO: Martin Kemmer
CFO: Mr. Sachse
Website: www.kemmer-ag.de
Founded:
2000
(in '000 EUR)
2004
2003
2002
Revenues
33,894
23,814
24,573
Total Assets
19,144
22,375
18,796
EBITDA
2,900
1,739
409
EBIT
1,886
644
-859
Net Income
400
-120
-1,412
Employees
207
194
198
35,000
26,250
17,500
8,750
0
2004
2003
Rev e nues
2002
Total A s s ets
2 ,0 00
1 ,5 00
1 ,0 00
5 00
0
-500
-1 ,0 00
-1 ,5 00
2 0 04
2 00 3
EBIT
20 02
Ne t Inc ome
In the early 1950s Mr. Paul Kemmer founded Kemmer Präzision GmbH located in Lorch, Germany. Main business was the production of
tungsten carbide tools with special focus on drills and routers for the printed circuit board (PCB) industry. Mr. Martin Kemmer, who had joined
the family company in 1982, left in 1991 and initiated the spin-off of the general special tools division in 1994 and established the MPK Kemmer
GmbH.
Since 1994, where MPK Kemmer GmbH generated EUR 4 million in sales, the company’s revenue has grown to approximately EUR 34 million in
2004. In addition to organic growth, Mr. Kemmer acquired two insolvent companies, today’s KMS Kemmer Automation GmbH and KMS Vision
Systems GmbH and founded MPK Kemmer GmbH Swiss. In 2000, the group was established by founding the Kemmer Technology AG. One
year later, Hannover Finanz GmbH, a German private equity manager, acquired a minority stake in the company. In the same year, Kemmer
Technology AG took a minority stake in Kontech-Kemmer China Ltd. to access the Chinese market. In 2003, all R&D activities of the Kemmer
group were centralised in KMS Kemmer Technology Center GmbH.
The company is divided into four business divisions:
1) Tungsten carbide tools (except electronics) generated 14.7% of total sales in 2004 and is specialised in manufacturing high-precision
customised tools.
2) Electronics and multi-layer ceramics (MLC) with tungsten carbide tools and automation machinery contributed 20.4% of total sales in 2004.
This division includes the whole value chain for the production of MLC chips.
3) The electronics and printed circuit boards (PCB) with tungsten carbide tools and automation machinery division added 24.8% in sales and
focuses on the production and global distribution of drill and router bits.
4) The automation and assembling machinery (except electronics) division contributed 40.1% of 2004 sales and designs and assembles
machinery for business process automation and mainly assembly and fixtures.
Tungsten carbide tools specialises in manufacturing high-precision customised tools. Next to quality and adherence to delivery dates, the
competitive advantage of this division is in the company’s opinion its ability to produce small lots economically. These tools are used in all
industrial production processes. Main customers are multinationals of the automotive industry like Bosch, Mahle or TRW.
MLC includes the whole value chain for the production of MLC chips. Kemmer Technology Group is in the company’s view the only global
supplier offering punch pins and bushings, complete tooling and the punch and lamination machinery out of one hand. As a result of high
production costs, the MTL market is small with only a few companies using this technology. According to Kemmer Technology they are a leading
supplier, e.g. the global single system supplier of the Bosch Group.
PCB focuses on the production and global distribution of drill and router bits. In addition to global technological leadership, the unique selling
proposition of this division is the after sales service offered, according to Kemmer Technology. As a result of this, the company sees itself as the
single or largest supplier for many big European PCB manufacturers like AT&S, Würth Group or Schweizer Electronics. With its small size drills,
Kemmer Technology is in its opinion the only Non-Japanese drill bit producer serving the Japanese market, which is the global technology driver
in this field.
The automation and assembling machinery division designs and assembles machinery for business process automation and mainly
assembly and fixtures. The company sees its special expertise in the area of handling die cast aluminium in the automotive industry or dosage
and packaging technology for the pharmaceutical industry.
Auditor: PricewaterhouseCoopers, Friedrichstrasse 14, 70174 Stuttgart
- 173 -
Leistritz AG
Address: Markgrafenstrasse 29
90459 Nürnberg
Management: Chairman of the supervisory board: H. Schaak
Member of the board: Dr. E. Rothstein
Member of the board: U. Oehm
Founded:
Industry: Machinery
1905
Website: www.leistritz.de
(in '000 EUR)
2004
2003
2002
160,000
7,500
158,787
157,792
152,284
120,000
5,625
Total Assets
73,178
74,291
78,903
80,000
3,750
EBITDA
11,118
11,414
10,225
40,000
1,875
EBIT
7,374
7,238
6,597
0
Net Income
2,622
2,881
2,855
Employees
1502
1517
1470
Revenues
0
2004
2003
Revenues
2002
Total A ssets
2004
2003
EBIT
2002
Net Income
Maschinenfabrik Paul Leistritz was founded in 1905 in Nürnberg and started with the production of blades for steam turbines. In 1924 and 1925,
manufacturing of screw pumps, a new development at that time, and mufflers for motorcycles, automotive and stationary engines extended the
product range. 35 years later, in 1960, a plant in Fuerth/Stadeln was acquired in order to expand production. Additionally, the company started to
produce hydraulic systems for lifts in 1965. In 1973, the American Leistritz Corporation was founded to organise sales and service in the USA.
Another expansion was the construction of another plant in Pleystein (1975) which produces mufflers, pipe components and machine tools. After
becoming a public limited company in 1986, Leistritz AG was restructured in 2001 and four independent subsidiaries were formed: Leistritz
Turbomaschinen Technik GmbH, Leistritz Pumpen GmbH, Leistritz Extrusionstechnik GmbH and Leistritz Produktionstechnik GmbH. In addition,
Leistritz Thommen GmbH, which produces profile rolling machines and rolling tools, was founded in 2004.
Today Leistritz AG consists of seven legally independent companies: Leistritz Turbomaschinen Technik GmbH, Leistritz Pumpen GmbH, Leistritz
Extrusionstechnik GmbH, Leistritz Produktionstechnik GmbH, Leistritz Thommen GmbH, Leistritz Corporation and American Leistritz Extruder
Corporation. All of these companies are 100% subsidiaries of Leistritz AG.
Today's aero-engines and turbines need precision custom designed blades. Leistritz offers cost effective manufacturing techniques by using
precision forging. Based on customer data, the design of the blade is made by using 3-D CAD techniques. This system also guides the
production and quality control process. Therefore, the company states, all customers’ standard and quality demands can be guaranteed and
documented by the company.
Screw pumps can pump fluids with lubricating and/or abrasive characteristics. Typical applications are found in oil fields, refineries, power plants,
chemical plants and ocean crossing vessels. The company’s extensive product range includes 2, 3 and 5 rotor screw pumps. The typical
characteristics of Leistritz screw pumps are quiet running, long service life and high efficiency. According to the company, the quality assurance
measures meet the highest international standards.
Leistritz AG sees itself as a pioneer in the area of plastic extrusion technology. Today's extrusion installations prepare and modify plastic raw
materials and are used in the development of new plastic formulas, which provide the plastic industry with new materials. The equipment is also
used in the chemical, pharmaceutical and food production sectors. The manufacturing focus is on twin screw extruders for compounding
applications, lab extruders for research and development and installations for plastics recycling.
Leistritz AG develops and manufactures complex production lines for cost-effective fabrication of internal and external helical profiles.
Keyseating and end finishing machines complete this product segment. The carbide tool programme adds to the development of these highprecision processes. The tubing technology/metal stamping product range includes tubing and complete tubing assemblies for the car industry,
agricultural engineering and the energy sector.
Auditor:
Ernst & Young AG Wirtschaftsprüfungsgesellschaft
- 174 -
Lisega AG
Address: Hochkamp 5
27404 Zeven
Management: CEO: Hans-Herlof Hardtke
Vice President & CFO: Hans-Heiner Eddelbüttel
Vice President & Sales & Marketing: Rolf Münnich
Founded:
1964
Website: www.lisega.de
(in '000 EU R)
2004
2003
2002
Revenues
50,176
50,173
57,411
Total Assets
46,689
37,979
39,195
E BITD A
E BIT
2,117
2,864
2,984
Net Income
1,030
751
1,640
E mp loyees
556
520
519
60,000
3,000
45,000
2,250
30,000
1,500
15,000
750
0
0
2004
2003
Rev enues
2002
2004
Total A s s e ts
2003
EBIT
2002
Net Income
The company was founded in 1964 under the name LISEGA Rohrleitungszubehör GmbH by pipe-constructing engineer Gerhard Liesegang in
Hamburg. Five years later, Hans-Herlof Hardtke entered the company. In 1971, LISEGA moved headquarters to its current location in Zeven. In
1992 Hans-Herlof Hardtke acquired all shares and changed the company’s legal form from GmbH to AG in 2002. The functions of the advisory
and management board ensure ongoing continuity to shareholders and staff. At the same time, management was strengthened and adjusted to
a more complex company structure.
The company’s total product portfolio amounts to 8,000 catalogued standard components. These components are special parts for installations
of pipelines in industry facilities with focus on thermal power plants, petrochemical and chemical facilities. Project oriented planning and
execution is often part of the company’s provided solutions. LISEGA’s planning tools, LICAD and EASYSTEEL, offer a high degree of time and
cost efficiency for planning and designing proper solutions. According to the company, the increasing usage of 3D models greatly enhances the
demand for LISEGA´s products In particular. Besides the European domestic market, the company also has distribution networks in the USA
and Asia, especially the Chinese market, where the manufacturing and distribution is carried out by the Shanghai-based LISEGA PST.
Auditor:
PricewaterhouseCoopers AG, Wirtschaftsprüfungsgesellschaft, Bremen
Mäc Geiz Non Food Vertriebsgesellschaft mbH
Address: Brehnaer Strasse 12
06188 Landsberg
Management: CEO: Mr. Rill
Authorized Representative/ Purchasing: Mrs. Thieroff
Management: Mrs. Schopf
Founded:
Industry: Personal Food and Miscellaneous Services
1999
Website: www.mac-geiz.de
(in '000 EUR)
2004
2003
2002
Revenues
63,729
53,079
41,857
Total Assets
33,622
23,327
12,309
EBITDA
5,068
4,079
2,761
EBIT
3,506
3,192
2,014
Net Income
1,545
1,725
1,060
Employees
530
490
395
65,000
3,600
48,750
2,700
32,500
1,800
16,250
900
0
0
2004
2003
Rev enues
2002
Total A s s ets
2004
2003
EBIT
2002
Net Inc ome
In 1993 the Company was originally founded as PaKo Non Food Warenhandelsgesellschaft mbH (PaKo). With its logistics system, PaKo unified
its wholesale and retail activities. In 1999 Mäc Geiz Non Food Vertriebsgesellschaft mbH (Mäc Geiz) was founded by Dirk Bolmerg as a legally
independent entity for branch distribution.
Mäc Geiz generates 100% of its turnover in the German retail market.
The company’s typical products are articles of the following sectors: housewares, drugstore and stationery goods, toys, technology, Do-ItYourself, pet food and animal care articles, gifts, food and beverages.
Auditor:
M&P Morzynski & Partner GmbH, Wirtschaftsprüfungsgesellschaft
- 175 -
Max Becker GmbH & Co. KG
Address: Widdersdorfer Strasse 194
50825 Köln-Ehrenfeld
Management: CEO: Klaus A. Becker
Website: www.maxbecker.de
Founded:
(in '000 EUR)
Revenues
2004
2003
2002
147,305
104,561
91,265
Total Assets
EBITDA
9,786
6,923
6,599
EBIT
9,102
4,840
3,935
Net Income
6,514
3,392
2,372
Employees
60
55
56
Industry: Oil and Gas
1935
150,000
1 0 ,0 0 0
112,500
7 ,5 0 0
75,000
5 ,0 0 0
37,500
2 ,5 0 0
0
0
2004
2003
2002
2004
2003
E B IT
Rev enues
2002
N e t In co m e
Max Becker founded the Max Becker GmbH & Co. KG in 1935 in Cologne/Germany and was very successful until he died in 1959. His son
Klaus A. Becker took over the leadership of the company and still manages Max Becker GmbH & Co. KG today. The company moved to a larger
site in 1986 and expanded its property in 2002. Today Max Becker’s area totals 70,000 sqm. The company has reported a tenfold increase in
revenue over the past 18 years.
In its centre of distribution in Cologne Max Becker GmbH markets nearly 80% of the industrial scrap of the Rhine region, including companies
like Bayer, Ford Motor Corp., RWE Power and mining companies of the Rhenish brown coal surface mining industry. Therefore Max Becker
GmbH collects the material at different sites and combines these into large bundles, which are afterwards industrially recycled, temporally stored
and finally distributed to large steelworks. Max Becker GmbH supplies steelworks like Accelor/Luxemburg, HKM (Hüttenwerke Krupp
Mannesmann) and Thyssen. According to the company, many other steelworks around the world are provided with scrap iron via the Köln-Niel
harbour and the Europort Rotterdam.Thanks to its logistics location in Cologne, Max Becker GmbH is able to access an optimal infrastructure.
The business site is directly connected to the railway system and possesses its own transportation wagons and several dump trucks. With Max
Becker Trading, the company owns a modern 20,000 sqm harbour site and is able to guarantee on schedule disposal and supply on the sea
way.
Auditor:
Kaufmann, Rosenbaum Sozietät für Wirtschaft und Steuerberatung
MoellerGroup GmbH & Co. KG
Address: Kupferhammer
33649 Bielefeld
Management: CEO: Felix von Moeller
CFO: Dr. Axel Mueller
Website: www.moellergroup.com
(in '000 EUR)
Founded:
1730
2004
2003
2002
50 0 ,0 00
1 0,500
Revenues
471,000
464,000
467,000
37 5 ,0 00
7,875
Total Assets
246,547
263,962
235,764
25 0 ,0 00
5,250
33,700
41,100
35,358
12 5 ,0 00
2,625
EBIT
7,400
10,200
8,800
0
Net Income
5,384
8,500
6,606
Employees
3,400
3,500
3,600
EBITDA
0
2004
20 0 3
R eve n ue s
2002
Tota l As s e ts
20 04
2 003
EB IT
20 02
Net Inc o me
MoellerGroup was founded in 1730 by Friedrich Moeller who was a manufacturer and trader of copper products in Warstein (Germany). In 1763
the family bought a production facility in Brackwede near Bielefeld, where they could work with a water driven hammer. The available water rights
provided the basis for the founder’s son to open a tannery that was in use until the middle of 2005. With rubber and different innovative types of
plastics the Moeller Company started to supply the automotive industry with interior and exterior parts in 1949. Parallel to the automotive
business they developed a strong business in plastic parts for non-automotive customers. Today – as stated by the company – you can find
Moeller products in most European and Japanese cars, in the leading vacuum cleaners, in trucks, in machinery and in a variety of other
equipments. Today MoellerGroup as the head of several subsidiaries employs more than 3,400 people all over the world. After 275 years in
business, the entire company is still 100% owned by the Moeller family.
The automotive division accounts for more than 80% of total sales of the MoellerGroup. Therefore 86% are 1st tier supplements and engineering
work that go directly to the original equipment manufacture. 14% are products sold to other 1st or 2nd tier suppliers and the non-automotive
sector is responsible for a sales figure of 16% of the total group sales. The automotive sector is consolidated in the MoellerTech International
GmbH, located in Bielefeld.
The main products in the automotive industry are plastic interior parts like pillars, centre consoles, instrument panels, glove boxes, seat parts,
doorframes, trunks, storage systems and other visible parts. Moeller concentrates on producing items that contribute only a small portion to a
single car’s value but are needed in most automobiles. The company targets selected preferred projects. Its strategic customers for the future
are DaimlerChrysler (DC), Peugeot (PSA), Renault, BMW, Honda and Toyota and some selected 1st tier car manufacturers.
Auditor:
HLB Dr. Stückmann & Partner, Bielefeld
- 176 -
Nici AG
Address: Langheimer Strasse 94
96264 Altenkunstadt
Management: CEO & CFO: Ottmar Pfaff
Website: www.nici.de
Founded:
(in '000 EUR)
Revenues
Total Assets
2004
2003
2002
129,500
85,400
80,002
77,800
Industry: Retail Stores
1986
130,000
97,500
65,000
EBITDA
32,500
EBIT
0
2004
Net Income
Employees
591
362
348
2003
Revenues
2002
Total A ssets
NICI GmbH was founded in 1986 and was changed into NICI AG in 1999. Over the last 18 years, NICI AG developed to a world-wide operating
group in the gift item sector. In 2003, the company founded NICI Asia Ltd., a 100% owned subsidiary in Hong Kong with the purpose to cover the
Asian markets and suppliers.
The company is structured into three major divisions: design and development, product management and sales and marketing. Each division is
represented by one board member.
As soft, cuddly and cute plush animals, NICI characters take an especial place in the product portfolio. Highly figured out collections, completed
by a wide range of trendy and decorative accessories, bring enthusiasm to all age groups in the world. The main target group for NICI products
are young people aged between 10 to 25 years. As stated by the company, the name recognition of the brand NICI is very high and the
distinctive hand writing design assures high brand recognition. Continuous developments of new product ideas and concepts always guarantee
an interesting and changing product range. The younger target group of 4 to 10 years is covered successfully by the brand Lillebi, a subsidiary of
the NICI group.
Auditor:
Rödl and Partner GmbH, Nürnberg
Obst- & Gemüseverarbeitung Spreewaldkonserve Golssen GmbH
Address: Bahnhofsstrasse 1
15938 Golssen
Management: CEO: Dipl. Ing. Konrad Linkenheil
Sales and Marketing: Karin Seidel
Website: www.spreewaldhof.de
Founded:
(in '000 EUR)
2004
2003
Revenues
77,988
72,795
Total Assets
78,918
74,456
EBITDA
9,397
EBIT
Industry: Beverage, Food and Tobacco
1991
80,000
6,000
60,000
4,500
40,000
3,000
7,156
20,000
1,500
5,090
3,777
0
Net Income
1,963
1,543
Employees
280
272
0
2004
2003
Revenues
Total A ssets
2004
2003
EBIT
Net Inc ome
The Obst- and Gemüseverarbeitung Spreewaldkonserve Golssen GmbH, originally VEB Spreewaldkonserve Golssen, was newly founded in
1990. In 1991 the company was taken-over by Karin Seidel and Konrad Linkenheil in 1991.
Spreewaldhof produces over 80 different pickled and fruit preserves on six production lines, currently unique in Europe’s cultivated area. The
gherkin, available in more than 30 different flavours and sizes, is the most important Spreewaldhof product. However, since pickles are not a
year-round product, the Spreewaldkonserve Golssen also concentrates on the processing of all kinds of fruits, which utilise production capacities
year round. The Spreewaldkonserve Golssen fruit preserve range includes ‘Linkenheil’ brand apple compote, apple puree and apple mix
products, raspberries, mirabelles plums, red or dark sweet cherries, morello sour cherries, plums, gooseberries, cranberries and wild
blackberries. Further specialities of the ‘Spreewaldhof’ brand among a range of fruit and vegetable products are ‘Rote Grütze’, ‘Blaue Grütze’
and ‘Letcho’. The product concept ‘DIÄTINI’, especially developed for diabetic and figure conscious customers, is part of a new product range.
Consolidating its reputation as an innovative processor of pickled and fruit preserves in Germany, the Spreewaldkonserve Golssen GmbH
expands its established range with a variety of twenty-one newly developed DIÄTINI products.
Besides its traditional consumers of ‘Spreewald’ gherkins, the Spreewaldkonserve Golssen expands its target group to a younger customer base
by providing an innovation in the pickled preserves market, the ‘Get One’ range. Available in different tastes, the ring-pull tin with one gherkin
inside picks up the prevalent convenience trend.
Auditor:
Wirtz, Walter, Schmitz GmbH, Wirtschaftsprüfungsgesellschaft
- 177 -
ODS Optical Disc Service GmbH
Address: Werkstrasse 2-22
23942 Dassow
Management: CEO: Wilhelm F. Mittrich
CFO: Kai Nitzsche
COO: Andreas Osthoff
Founded:
1988
Website: www.opticaldiscservice.com
(in '000 EUR)
2004
2003
Revenues
124,477
76,756
Total Assets
170,232
123,060
EBITDA
31,489
24,969
4 3 ,7 5 0
EBIT
17,285
10,750
0
Net Incom e
9,633
6,971
Employees
801
622
1 7 5 ,0 0 0
1 8,0 00
1 3,5 00
9,0 00
4,5 00
0
1 3 1 ,2 5 0
8 7 ,5 0 0
2004
2004
2003
Re v e n u e s
To ta l A s s e ts
EB IT
2 00 3
Ne t In c o me
In 1988, Mr. Wilhelm Mittrich founded Intermusic Medienvertrieb GmbH (“Intermusic”) located in Hamburg as a wholesale business for sound
and image storage medium devices. In 1996, Intermusic became Point Classics Medienvertrieb GmbH and was renamed to ODS Optical Disc
Service GmbH in 1997. At the same time, the Company moved to its current location Dassow (Mecklenburg-Western Pomerania). Thus, ODS
acquired assets of the insolvent ICP Compact Disc Fertigungsgesellschaft mbH at the end of 1997.
Besides offering the complete production of discs, ODS offers the complete spectrum of services, including management services, packaging
design and constancy, pre-mastering and DVD authoring, glassmastering and electroforming, replication, label printing in screen and offsettechnology, packaging in standard and special formats, warehousing and in-house just-in-time delivery. ODS has a production capacity of
approx. 1bn discs per annum. Finished products are directly distributed to customers via the company’s own truck fleet which consists of 33
heavy trucks and 5 Mercedes Sprinters. In 2004, approx. 75.3% of all discs manufactured in Dassow were exported.
ODS has specialised in manufacturing of pre-recorded CDs and DVDs in different formats. Following specific customer requirements, contents,
labels and packaging of discs differ from customer to customer. Within the CD segment, ODS replicates the two most popular formats CD-Audio
(music) and CD-Rom (data). Within the DVD segment, the Company produces three different DVD formats DVD-5, DVD-9 and DVD-10, as well
as Dual Disc / DVD plus and 80mm DVDs. Since October 2004, ODS acts as a distributor for CD-R and DVD-R. Its own brand “Gigatain”, is sold
to large wholesalers and online-shop retailers. ODS produces, distributes and markets its products mainly in the EU.
Auditor:
PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft, Hamburg
PVG Presse-Vertriebs-Gesellschaft KG
Address: Am Martinszehnten 13
60347 Frankfurt
Management: CEO: Thomas Kirschner
Website: www.pvg.de
(in '000 EUR)
Revenues
Founded:
2004
2003
2002
135,000
128,726
130,360
134,364
101,250
Total Assets
67,500
EBITDA
33,750
EBIT
1946
Industry: Div. Natural Res., Precious Metals and Minerals
0
2004
Net Income
Em ployees
299
301
320
2003
2002
Rev e nues
In 1946, PVG was founded by Alfons Geubels in Frankfurt/Main, Germany. In 1999, Thomas Kirschner became the majority partner and CEO.
Within its marketing area, the company ensures that all press products have unrestricted access to the market and that magazines and
newspapers with smaller circulation are available for interested parties as well. The line of business “Press Wholesaling” contributes about 89%
of total revenues. PVG ABO supplies big companies with industry-relevant print products every day. It serves banks, industry companies, press
agencies and public authorities world-wide. It takes over all search and procurement formalities and guarantees a supply in time. PVG ABO
earns about 10% of all revenue. PVG Software develops, sells, implements and supports its press distribution software that is focused on
requirements of press markets. It is used by 25 wholesalers in Germany, Austria and Switzerland and – according to the company – applies in
Germany and in German-speaking countries as a standard for efficient and process orientated distribution and sales controlling. This division
contributes about 1% of total revenue.
As a press wholesaler in Germany, PVG`s market is strictly limited to a specific area of about 11,000 square kilometres in the state of Hesse.
PVG provides 3 million inhabitants with newspapers and magazines. In addition, PVG expects a positive development within the “Non-Press”products. PVG Software is specialised in the development and maintenance of software solutions for the press wholesale business.
Furthermore, PVG ABO will increase its efforts to take on procuring and distribution for subscriptions of big companies in Germany.
Auditor:
Bacher & Partner GmbH, Wirtschaftsprüfungsgesellschaft – Steuerberatungsgesellschaft, 53117 Bonn
- 178 -
Straub Holding GmbH
Address: Freiburger Strasse 77
88400 Biberach
Management: CEO: Robert Straub
Website: www.autovermietung-straub.de
Founded:
(in '000 EUR )
R evenues
Industry: Personal Transportation
2004
2003
2002
101,000
100,505
86,495
82,161
75,750
4,35 0
50,500
2,90 0
1,45 0
Total Assets
1 7,655
13,789
11,134
25,250
EB IT
5,724
2,315
1,635
0
N et Incom e
2,541
766
15
Em ployees
361
344
360
EB ITD A
1954
5,80 0
0
2004
2003
2002
200 4
Rev enues
20 03
EB IT
20 02
Ne t Inc ome
In 1954, Eugen Straub, the father of today’s CEO Robert Straub, founded the company in Bad Schussenried. In the beginning, it was only
offering “rental service for self drivers”. Later, taxi services and tire trading enlarged the company’s product portfolio. During the early 80s, Eugen
Straub jun. took over the management. In order to expand the rental business, he sold the taxi segment in 1991, moved the company’s
headquarters to Biberach and opened a third branch in Bad Saulgau. Nowadays, the company possesses more than 3,000 vehicles. 34
branches in southern Germany are engaged in traditional car rental business and offer cars of all kinds. The company believes in the future
potential of mobility as a service.
The company is divided into three main business units. First, the automobile and light truck division, counting as one of the largest brand
independent trade entities in Germany. Second, the leasing division offers leasing solutions for half-year old and new cars, whereas the half-year
old ones are taken over from the rental division. The third division focuses on heavy truck and trailer rental services.
The company offers car and truck rental services and provides vehicles of all kinds. It is further engaged in the car leasing business to guarantee
an up-to-date fleet. Straub Holding mainly covers Southern Germany but is planning to expand its branch network. Its product portfolio ranges
from two door Smarts to 40 tons trucks. No matter if private or business travel or if fun or moving trip, the company covers all segments of every
day and special event needs.
Auditor:
SPK GmbH, Wirtschaftsprüfungsgesellschaft, 88250 Weingarten
Tectum Consulting für Innovationstechnologie GmbH & Co. KG
Address: Leithestrasse 45
45886 Gelsenkirchen
Website: www.tectum-ag.com
(in '000 EUR)
Revenues
Management: CEO: Hubertus Küpper
CFO: Dr. Markus Hoppe
COO: Christian Küpper
Founded:
Industry: Personal Food & Miscellaneous Services
2002
2004
20,903
2 2 , 00 0
2 ,500
1 6 , 50 0
Total Assets
6,202
1 1 , 00 0
EBITDA
2,975
5 ,5 0 0
EBIT
2,058
0
Net Income
1,369
Employees
619
1 ,250
0
2004
Re v en u e s
To ta l A s s e ts
2 00 4
EB IT
Net Inc ome
The TECTUM Group consists of four companies. The holding company called TECTUM Consulting für Innovationstechnologie GmbH & Co. KG
and its subsidiaries called CTD Innovations-Technologie im Dialog GmbH, DELFON Kommunikationstechnologie GmbH and DATA CONTACT
GmbH. First, in 1998, the CTD GmbH in Dortmund/Germany was founded as an independent enterprise by Mr. Hubertus Küpper and a company
called “Comteam”. In 1999, CTD established DELFON in Gelsenkirchen/Germany, followed by DATA CONTACT (the IT company within the
TECTUM Group) in 2001. Finally, in 2002, Hubertus Küpper established the TECTUM Consulting für Innovationstechnologie GmbH & Co KG as
the holding company by inserting his own shares of CTD and buying the shares of the “Capital Group” (former “Comteam”). In a second step, the
shares of DATA CONTACT were also bought by TECTUM. In the company’s view, the TECTUM Group has grown to one of the big players in
the German Contact Center Business over the last 7 years.
DELFON (the sales-oriented company) contributes about 52% of the external revenues, CTD (the service-oriented company) contributes
approximately 47% and DATA CONTACT (the IT-oriented company) adds 1% of the external revenues. The divisions are operating as three
independent organisations for which TECTUM provides the management services like HR, Legal, Finance and Sales and Marketing. CTD is
providing (multilingual) service lines with a focus on IT and telecommunication services. Operating hours are 24/7 on 365 days per year.
DELFON is the sales specialist of the TECTUM Group. Customers are German telecommunication- and media enterprises like T-Com, TOnline, Arcor and Premiere. DATA CONTACT is providing IT-solutions and support, mainly focused on the companies of the TECTUM Group,
but there are also some external projects. For Computer Associates, DATA is providing the first level technical support for channel products (i.e.
Brightstore ARCserve and Etrust Antivirus).
CTD supplies services relating to customer contact centres. Here they care for their partners customers and their satisfaction. Their main targets
are large companies with complex products in need of explanation rsp. often changing/modifying technologies. DELFON is (mostly by telephone)
selling products in need of explanation to existing and prospective clients of their partners. The main focus here is on the telecommunication
market due to the high competition among these customers. Additional markets in their focus are media, finance and health care. DATA
CONTACT offers IT-services, develops solutions and supports IT-products. For IT-services, the main target groups are medium-sized
companies. Regarding IT-support, the company focuses on large hard- and software enterprises.
Auditor:
WIR Treuhand, Essen
- 179 -
Weigl GmbH & Co. KG
Address: Am Galgenfeld 1
86554 Pöttmes
Management: CEO: Franz Josef Weigl
CFO: Jürgen Beck
Website: www.weigl-gruppe.de
Founded:
(in '000 EUR)
2004
2003
2002
Revenues
96,600
87,900
78,100
Total Assets
64,800
75,600
80,800
EBITDA
13,400
14,300
-2,800
25,000
EBIT
4,200
1,400
-14,500
0
Net Income
2,400
2,300
-7,200
Employees
739
715
622
1994
100,000
5,500
75,000
500
50,000
-4,500
2004
2003
2002
-9,500
2004
2003
Rev enues
2002
-14,500
EBIT
Total As sets
Net Inc ome
Weigl Metalltechnik was founded in 1979. In addition, Weigl Metallguss and Weigl Antriebstechnik were acquired during the early and mid
nineties. By founding Weigl Zerspannungstechnik and Weigl Präzionstechnik in 2001 and Weigl Aluminiumguss in 2004, the Weigl Group grew
to an approved supplier for the automotive industry. The Weigl Group AG was founded in 2002 and acts as management holding for the entire
group. The Weigl GmbH & Co. KG holds 98.5% of shares of the Weigl AG and acts as the organic controlling company.
The Weigl Group is divided into five independent producing companies: Weigl Zerspannungstechnik GmbH, Weigl Antriebstechnik GmbH, Weigl
Präzionstechnik GmbH, Weigl Metalltechnik GmbH, Weigl Metallguss GmbH. Moreover, Weigl Engineering GmbH acts as a development
partner for customers and as an in-house consultant for the entire Weigl Group. The Weigl Group AG is responsible for all staff functions.
In terms of revenues, products for automobiles contribute approximately 70% of total sales, while truck products add another 20%. The
remaining 10% are contributed by railway techniques. Moreover, the different business divisions focus on different product segments. While
Weigl Zerspannungstechnik Gmbh produces pump and gear housings, Weigl Antriebstechnik Gmbh is specialised in gearing and transmission
technology. Additionally, Weigl Präzionstechnik GmbH’s core products are differentials and Weigl Metalltechnik GmbH manufactures oil pans for
trucks and shafts. The fifth group company, Weigl Metallguss GmbH is a casting house, which produces oil pans and different casting products
for the Weigl Group. Moreover, a new aluminium-low-pressure-casting plant is currently being built. Main customers for Weigl products are
OEM`s and Tier-1 automotive companies.
Auditor:
Gnann & Hauser Partnerschaftsgesellschaft
Wilh. Schulz GmbH
Address: Kuhleshütte 85
47809 Krefeld
Management: Chairman/CEO: W. Schulz
CFO/COO: R. Floeth
Website: www.wschulz.com
(in '000 EUR)
Founded:
1946
2004
2003
2002
70 ,00 0
Revenues
68,678
49,662
48,623
52 ,50 0
5 ,0 0 0
Total Assets
48,351
47,365
58,087
35 ,00 0
3 ,5 0 0
EBITDA
7,754
3,032
5,110
17 ,50 0
2 ,0 0 0
EBIT
6,417
1,621
3,595
0
Net Income
2,410
2,513
-622
Employees
343
336
295
6 ,5 0 0
500
20 0 4
2 00 3
R eve nu es
2 00 2
- 1 ,0 0 0
Tota l As s e ts
2004
2003
EB IT
2002
Ne t In c o me
Wilh. Schulz GmbH (SCHULZ) was founded by Wilhelm Schulz in 1946 in Krefeld, Germany. Today the company is 100% owned by his son,
Wolfgang Schulz. According to the company, SCHULZ developed from a small pipe fabricator, repairing piping installations after World War II, to
an international brand in the pipefitting business for power generation and oil & gas.
The core business of SCHULZ is the supply of pipe, fittings and flanges to the world-wide power generation and oil & gas industries. SCHULZ
makes almost 90% of sales from the oil & gas division. The remaining 10% are generated by two smaller business divisions (independent from
the oil & gas division), one is a pipe manufacturing division and the other is a special annealing plant, located in Krefeld.
Due to the increasing need for investment in the world-wide oil & gas sector (upstream & downstream), SCHULZ is focussing on accepting only
high profitable orders and avoiding utilisation of the production capacity with “normal profit margins”. SCHULZ’ clients are international oil
corporations such as ExxonMobile, Shell, Statoil, Petrobras, Citgo, BP or engineering houses like Bechtel, Technip, Mitco, Halliburton, or
distributors like Southwest Stainless, Dylan Steel, RFF or chemical corporations like BASF, DOW, Henkel, Bayer, Degussa. For Nuclear projects
SCHULZ works either with the French group Framatome or the Shaw Group in the US. SCHULZ focuses on every independent market through
its worldwide sales network. Based on current activities the most active markets are in South America and South East Asia. China’s long term
plan to build 30 nuclear power plants has spurred SCHULZ’ top management to enter into discussions with a Chinese group to build a
partnership to jointly supply the nuclear industry in China.
Auditor:
Dr. Motzer – Scholz-Starke – Tolkamp, law, tax advisor and accounting office in Wesel, Germany
- 180 -
Portfolio Overview as of 28 February 2006
1. Distribution by Participation Right Type
Number of
Companies
22
13
35
Participation Right Type
A
B
Total
in %
62.9%
37.1%
100.0%
Amounts in
EUR m
135.5
64.0
199.5
in %
67.9%
32.1%
100.0%
2. Distribution by Participation Right Nominal Amounts (EUR m)
Nominal Amounts in EUR m
2.5 < x <= 5
5 < x <= 7.5
7.5 < x <= 10
x >10
Total
Number of
Companies
23
6
5
1
35
in %
65.7%
17.1%
14.3%
2.9%
100.0%
Amounts in
EUR m
98.0
38.5
48.0
15.0
199.5
in %
49.1%
19.3%
24.1%
7.5%
100.0%
2.5
15.0
5.7
Lowest Participation Right Nominal:
Largest Participation Right Nominal:
Average Participation Right Nominal:
3. Distribution by Commerzbank Rating
Commerzbank Rating
x <= 2.4
2.4 < x <= 2.6
2.6 < x <= 2.8
2.8 < x <= 3.0
3.0 < x <= 3.2
x > 3.2
TOTAL
Best CB Rating
Lowest CB Rating
Weighted Average CB Rating
Number of
Companies
4
6
12
4
6
3
35
in %
11.4%
17.1%
34.3%
11.4%
17.1%
8.6%
100.0%
Amounts in
EUR m
22.0
46.5
61.5
26.0
26.0
17.5
199.5
in %
11.0%
23.3%
30.8%
13.0%
13.0%
8.8%
100.0%
2.2
3.6
2.8
For a summary of the Commerzbank Rating, see the section entitled "The Commerzbank Rating"
below.
- 181 -
4. Distribution by Moody's Industries
Moody's Industry Sector
Mining, Steel, Iron and Nonprecious Metals
Buildings and Real Estate
Automobile
Chemicals, Plastics and Rubber
Machinery (Nonagriculture, Nonconstruction, Nonelectronic)
Textiles and Leather
Retail Stores
Electronics
Personal Food and Miscellaneous Services
Beverage, Food and Tobacco
Diversified Natural Resources, Precious Metals and Minerals
Oil and Gas
Personal Transportation
Total
Amounts in
EUR m
34.0
30.0
25.0
25.0
18.5
18.0
15.0
8.0
8.0
5.0
5.0
4.0
4.0
199.5
in %
17.0%
15.0%
12.5%
12.5%
9.3%
9.0%
7.5%
4.0%
4.0%
2.5%
2.5%
2.0%
2.0%
100%
5. Distribution by Moody's KMV RiskCalc 5y-Rating
Moody’s KMV®-5Y-Rating
A3
Baa1
Baa2
Baa3
Total
Number of
in %
Companies
5
14.3%
6
17.1%
12
34.3%
12
34.3%
35
100.0%
Amounts in
EUR m
34.5
28.5
74.5
62.0
199.5
6. Distribution by S&P Industries
S&P Industry Sector
Industrial Equipment
Building and Development
Retailers (except food and drug)
Automotive
Clothing/ Textiles
Chemicals/ Plastics
Drugs
Forest Products
Steel
Business Equipment and Services
Food Products
Equipment Leasing
Electronics/ Electric
Total
Amounts in
EUR m
35.0
32.5
32.0
21.0
18.0
11.0
10.0
10.0
10.0
8.0
5.0
4.0
3.0
199.5
- 182 -
in %
17.5%
16.3%
16.0%
10.5%
9.0%
5.5%
5.0%
5.0%
5.0%
4.0%
2.5%
2.0%
1.5%
100.0%
in %
17.3%
14.3%
37.3%
31.1%
100.0%
7. Distribution by S&P CreditRiskTracker-Rating
S&P CRT-Rating
a
abbb+
bbb
bbbbb+
bb
Total
Number of
Companies
1
2
24
1
3
2
2
35
Amounts in
EUR m
6.0
10.0
138.0
3.0
21.5
11.0
10.0
199.5
in %
2.9%
5.7%
68.6%
2.9%
8.6%
5.7%
5.7%
100.0%
in %
3.0%
5.0%
69.2%
1.5%
10.8%
5.5%
5.0%
100.0%
8. Distribution by Federal State
Federal State
North Rhine-Westphalia
Hessia
Bavaria
Lower Saxony
Saxony-Anhalt
Bremen
Baden-Württemberg
Thuringia
Mecklenburg-Western Pomerania
Schleswig-Holstein
Brandenburg
Saxony
Berlin
Total
Amounts in
in %
EUR m
56.0
28.1%
35.0
17.5%
34.5
17.3%
15.0
7.5%
10.0
5.0%
10.0
5.0%
7.0
3.5%
6.5
3.3%
6.0
3.0%
6.0
3.0%
5.0
2.5%
4.5
2.3%
4.0
2.0%
199.5
100.0%
9. Distribution by Interest Rate
Interest Rate
x < 7.0%
7.00% <= x < 7.50%
7.50% <= x < 8.00%
8.00% <= x < 8.50%
x => 8.50%
TOTAL
Number of
Companies
7
6
5
13
4
35
Minimum Interest Rate
Maximum Interest Rate
Weighted Average Interest Rate
in %
20.0%
17.1%
14.3%
37.1%
11.4%
100.0%
6.65%
8.75%
7.74%
- 183 -
Amounts in
EUR m
36.0
35.0
22.5
81.0
25.0
199.5
in %
18.0%
17.5%
11.3%
40.6%
12.5%
100.0%
10. Distribution by Total Company's Sales (EUR m)
Company´s Sales in EUR m
x < 30
30 <= x < 50
50 <= x < 100
100 <= x < 250
x => 250
Total
Minimum Company Sales
Maximum Company Sales
Number of
Companies
1
5
13
12
4
35
in %
2.9%
14.3%
37.1%
34.3%
11.4%
100.0%
Amounts in
EUR m
3.0
26.5
65.5
78.5
26.0
199.5
in %
1.5%
13.3%
32.8%
39.3%
13.0%
100.0%
20.9
557.1
11. The Commerzbank Rating
To evaluate the financial and credit risk of borrowers and counterparties the Commerzbank has
developed three fully integrated internal rating systems for corporate clients:
(i)
(ii)
(iii)
Rating Corporates Germany – German medium sized businesses, annual turnover 2.5m to 750m
EUR
Rating Corporates Large Companies – for multinationals and large companies bankwide, annual
turnover > 750m EUR
Rating Corporates International – for international medium sized businesses, annual turnover up
to 750m EUR.
Each internal rating system generates two separate ratings for each borrower: a Financial Rating and a
Credit Rating. Both ratings range on a scale from 1.0 to 5.8 and 6.1 to 6.5.
The Financial Rating is an assessment of the probability of default of each borrower on the basis of:
•
•
•
•
•
•
•
financial analysis of annual accounts (statistic rating models),
financial analysis of interim figures,
assessment of timeliness of current information,
analysis of qualitative risks (market, management, value creation, notes analysis),
warning indicators,
group integration and
limited manual override.
The Credit Rating incorporates an assessment of loss severity (expected loss) based on an analysis of:
−
−
−
Loss given Default (credit imputation factor, value of collateral, capital recovery factor)
Exposure at Default (utilisation and unutilised limits)
Qualitative risks (maturity, covenants, liquidity of assets)
The Credit Rating constitutes the main driver of the lending authorities.
- 184 -
The internal rating categories are outlined in the table below:
Rating
Commerzbank AG
1.0
1.2
1.4
1.6
1.8
2.0
2.2
2.4
2.6
2.8
3.0
3.2
3.4
3.6
3.8
4.0
4.2
4.4
4.6
4.8
5.0
5.2
5.4
5.6
5.8
6.1
6.2
6.3
6.4
6.5
PD- and ELMidpoint
in percent
0
0.01
0.02
0.04
0.07
0.11
0.17
0.26
0.39
0.57
0.81
1.14
1.56
2.10
2.74
3.50
4.35
5.42
6.74
8.39
10.43
12.98
16.15
20.09
25.00
100
PD- and EL-Bereich
in percent
IFD-Scale*
(6 Klassen)
0
0 - 0.02
0.02 - 0.03
0.03 - 0.05
0.05 - 0.08
0.08 - 0.13
0.13 - 0.21
0.21 - 0.31
0.31 - 0.47
0.47 - 0.68
0.68 - 0.96
0.96 - 1.34
1.34 - 1.81
1.81 - 2.40
2.40 - 3.10
3.10 - 3.90
3.90 - 4.86
4.86 - 6.04
6.04 - 7.52
7.52 - 9.35
9.35 - 11.64
11.64 - 14.48
14.48 - 18.01
18.01 - 22.41
22.41 - 30.00
Unlikely to pay (> 90 Tage)
Recapitalisation/Restructuring
Recapitalisation with
contribution
Termination without
insolvency
Insolvency
Investment
Grade
I
II
III
IV
V
Non-Investment Grade
VI
Default
* IFD = Initiative Finanzstandort Deutschland
Commerzbank uses Rating Corporates Germany to evaluate the credit quality of medium sized
German corporates with sales between 2.5m EUR to 750m EUR. The system is based on:
−
−
−
−
−
−
a rating model of 8 financial ratios and industry information (logistic regression);
assessment of the future performance of the borrower based on both current and historical
information;
assessment of timeliness of current information with sliding penalty in case of non-fulfilment
automatically;
an analysis of qualitative risk factors (economic conditions, market, management, value
creation, notes analysis) and warning indicators (e.g. payment history, customer behaviour,
decrease in equity, strong regressive demand trend);
the degree to which the borrower, if it is a subsidiary, is integrated into its parent group;
limited manual override for specific factors that are not covered by the standard rating form
(e.g. pending litigation, substantial off balance sheet financing, etc…).
For multinationals and large companies bankwide with annual turnover > 750m EUR Commerzbank
uses Rating Corporates Large Companies. The structure of the rating system is nearly similar to RC
Germany. Exceptions are the financial analysis annual accounts (shadow rating model), several
qualitative factors and warning indicators.
For international medium sized businesses with an annual turnover up to 750m EUR Commerzbank
uses Rating Corporates International. The structure of the rating system is nearly similar to RC
Germany. Exceptions are the financial analysis annual accounts (rating models from Moody's
RiskCalcTM), several qualitative factors and warning indicators.
- 185 -
All internal ratings are reviewed at least annually on receipt of the borrower's annual report and
accounts are adjusted, if necessary. Internal credit ratings equal or worse than 4.6 for exposures greater
than €50,000 are reviewed at least every six months. The branch relationship manager is responsible
for preparing regular call reports on the client and an annual overview of the credit relationship.
- 186 -
Individual Company Information as of 28 February 2006
Company
1
2
3
4
5
Advance in EUR
Advance in % of total Portfolio
KMV Company PD Rating 5 year
KMV PD Company in %
15,000,000
7.52%
Baa2.edf
1.77%
10,000,000
5.01%
A3.edf
0.72%
10,000,000
5.01%
A3.edf
1.04%
10,000,000
5.01%
Baa2.edf
2.04%
10,000,000
5.01%
Baa3.edf
3.80%
8,000,000
4.01%
Baa3.edf
2.35%
Individual Company Ratios
Equity Ratio
Net Indebtedness Ratio
Liability Structure Ratio
EBITD - ROI
Profit on Sales Ratio
Personnel Expenses on Sales Ratio
Trade Creditor Ratio
Debt Coverage Ratio
Sales Growth Ratio
51.90%
31.81%
67.81%
7.73%
1.91%
30.42%
13.79 days
9.61%
103.34%
34.72%
22.98%
64.55%
18.78%
6.67%
13.08%
9.28 days
21.46%
151.63%
50.38%
16.11%
33.81%
20.45%
7.24%
32.73%
11.29 days
22.03%
92.75%
38.75%
32.68%
57.19%
8.78%
3.97%
30.32%
27.41 Days
8.67%
98.18%
5.01%
44.79%
42.23%
8.99%
1.88%
37.18%
28.75 days
9.39%
101.84%
37.11%
39.92%
90.05%
17.82%
8.68%
15.49%
69.72 days
22.51%
107.95%
7
8
9
10
11
12
Company
Advance in EUR
KMV PD Company in %
7,500,000
3.76%
Baa2.edf
1.62%
7,000,000
3.51%
Baa1.edf
1.22%
18.45%
36.14%
27.20%
21.53%
2.76%
27.48%
42.77 days
22.19%
109.89%
13
6
6,500,000
3.26%
Baa1.edf
1.13%
6,000,000
3.01%
Baa2.edf
1.38%
6,000,000
3.01%
Baa2.edf
1.59%
5,500,000
2.76%
A3.edf
0.92%
41.09%
16.92%
40.91%
13.64%
3.59%
44.17%
14.41 days
20.01%
100.63%
35.22%
3.35%
63.41%
17.91%
8.40%
18.35%
19.46 days
21.48%
114.30%
44.64%
27.92%
78.90%
12.04%
2.84%
28.72%
23.69 days
16.38%
108.07%
30.55%
47.54%
30.15%
18.49%
10.26%
19.25%
51.45 days
22.06%
162.23%
52.56%
28.50%
59.59%
17.67%
8.14%
22.61%
23.96 days
29.24%
107.82%
14
15
16
17
18
Equity Ratio
EBITD - ROI
Debt Coverage Ratio
Sales Growth Ratio
Company
Advance in EUR
KMV PD Company in %
Equity Ratio
EBITD - ROI
Debt Coverage Ratio
Sales Growth Ratio
5,000,000
2.51%
A3.edf
0.90%
5,000,000
2.51%
Baa1.edf
1.17%
52.56%
38.88%
57.98%
19.53%
5.11%
9.53%
27.01 days
29.70%
98.75%
28.21%
43.17%
38.31%
11.33%
1.83%
17.04%
19.31 days
15.37%
105.37%
- 187 -
5,000,000
2.51%
Baa2.edf
1.48%
5,000,000
2.51%
Baa2.edf
1.75%
5,000,000
2.51%
Baa2.edf
1.75%
5,000,000
2.51%
Baa2.edf
2.04%
34.79%
33.52%
83.32%
15.26%
4.36%
16.73%
49.24 days
16.57%
120.06%
33.32%
31.88%
59.70%
16.01%
5.50%
29.76%
31.63 days
15.69%
104.60%
43.78%
12.69%
61.36%
5.40%
1.37%
15.24%
23.62 days
4.99%
101.69%
39.54%
38.46%
78.91%
14.65%
2.70%
17.52%
29.56 days
18.62%
124.53%
Company
Advance in EUR
KMV PD Company in %
Equity Ratio
EBITD - ROI
Debt Coverage Ratio
Sales Growth Ratio
Company
Advance in EUR
KMV PD Company in %
19
20
5,000,000
2.51%
Baa3.edf
3.00%
5,000,000
2.51%
Baa3.edf
3.03%
20.25%
51.87%
64.30%
20.82%
5.74%
24.68%
42.54 days
24.79%
148.05%
25
21
22
23
24
5,000,000
2.51%
Baa3.edf
3.39%
5,000,000
2.51%
Baa3.edf
3.43%
5,000,000
2.51%
Baa3.edf
3.65%
5,000,000
2.51%
Baa3.edf
3.76%
30.78%
57.51%
84.46%
8.64%
1.12%
18.04%
29.88 days
8.91%
106.87%
25.49%
32.08%
74.66%
14.55%
1.40%
35.83%
32.77 days
15.38%
104.62%
45.27%
32.77%
61.16%
8.19%
2.78%
49.83%
17.15 days
10.85%
100.01%
31.49%
52.39%
89.76%
12.33%
3.22%
11.36%
20.52 days
10.85%
107.14%
19.37%
54.10%
60.13%
14.96%
1.64%
24.83%
40.91 days
15.46%
98.63%
26
27
28
29
30
4,500,000
2.26%
Baa1.edf
1.27%
4,000,000
2.01%
A3.edf
0.86%
4,000,000
2.01%
Baa2.edf
1.80%
4,000,000
2.01%
Baa3.edf
2.14%
4,000,000
2.01%
Baa3.edf
2.75%
3,000,000
1.50%
Baa1.edf
1.23%
33.88%
16.53%
50.08%
22.71%
4.99%
11.48%
18.57 days
28.27%
77.67%
2.03%
46.44%
70.38%
32.22%
5.61%
2.05%
37.12 days
29.54%
140.88%
11.83%
31.11%
56.77%
9.90%
7.68%
30.13%
14.40 days
35.50%
109.64%
8.56%
78.69%
87.62%
34.14%
4.08%
7.16%
30.53 days
34.11%
116.19%
12.94%
37.89%
68.34%
19.53%
5.39%
29.32%
15.36 days
18.11%
132.09%
29.09%
13.78%
63.76%
27.13%
3.46%
27.34%
10.86 days
33.07%
98.35%
31
32
33
34
35
Equity Ratio
EBITD - ROI
Debt Coverage Ratio
Sales Growth Ratio
Company
Advance in EUR
KMV PD Company in %
Equity Ratio
EBITD - ROI
Debt Coverage Ratio
Sales Growth Ratio
3,000,000
1.50%
Baa2.edf
1.43%
18.70%
54.81%
83.63%
32.64%
2.87%
16.58%
33.93 days
31.39%
96.55%
3,000,000
1.50%
Baa2.edf
2.05%
3,000,000
1.50%
Baa3.edf
2.97%
3,000,000
1.50%
Baa3.edf
3.03%
2,500,000
1.25%
Baa1.edf
1.25%
-12.20%
24.48%
47.24%
24.93%
7.99%
70.90%
3.77 days
29.21%
100.00%
41.84%
27.08%
60.56%
9.83%
0.34%
42.31%
16.48 days
10.33%
102.72%
18.21%
36.98%
57.10%
14.82%
2.45%
33.88%
19.15 days
11.92%
141.72%
45.34%
10.11%
40.60%
9.95%
1.56%
41.73%
16.08 days
12.77%
99.17%
- 188 -
THE ISSUER
Establishment, Domicile and Duration
The Issuer was registered under the name CB MezzCAP Limited Partnership under the Limited
Partnerships (Jersey) Law 1994, as amended, with the Registrar of Limited Partnerships under
registration number LP 688 on 24 October 2005. The Issuer's registered office is at 26 New Street, St.
Helier, Jersey JE2 3RA, Channel Islands, telephone +44 (1534) 824 121, telefax +44 (1534) 814 815.
As of the date of this Prospectus, CB MezzCAP Limited Partnership has commenced operations but
has not prepared any financial statements.
Partners
The General Partner, which holds a 0.0001 per cent. interest in the Issuer, is CB MezzCAP Limited, a
limited liability company incorporated under Jersey law whose sole shareholder is Bedell Trustees
Limited as trustee for the CB MezzCAP (Jersey) Charitable Trust, a Jersey general charitable trust.
The Limited Partner, which holds a 99.9999 per cent. interest in the Issuer, is CB MezzCAP
Verwaltungsgesellschaft mbH, a limited liability company incorporated under German law and
domiciled in Frankfurt am Main, Germany. The sole shareholder of the Limited Partner is Bedell
Trustees Limited as trustee for the CB MezzCAP (Germany) Charitable Trust, a Jersey general
charitable trust.
Despite its minority interest, the General Partner, by virtue of the partnership agreement between the
General Partner and the Limited Partner and in accordance with the Limited Partnership (Jersey) Law
1994, as amended, has the sole power to manage the Issuer and the sole authority to legally represent
the Issuer. It therefore controls the Issuer.
Principal Activities
The Issuer was established as a special purpose entity whose sole business purpose is, pursuant to the
partnership agreement entered into by the General Partner and the Limited Partner on 13 October 2005
as amended and restated on 1 December 2005, to invest in various Participation Rights through the
Participation Right Agreements with the Companies to be initially funded by the Bridge Facility,
which is to be refinanced by the issuance of the Notes.
Neither the Issuer nor the General Partner have any employees.
Management
The Issuer acts through the General Partner who has the sole power to represent the partnership. The
General Partner may be contacted at the address of the Issuer, which is 26 New Street, St. Helier,
Jersey JE2 3RA, Channel Islands, telephone +44 (1534) 824 121, telefax + 44 (1534) 814 815.
The current directors of the General Partner, their respective business addresses and other principal
activities at the date hereof are:
Name
Nationality
Business Address
Occupation
Richard Charles Gerwat
British
26 New Street
St. Helier
Jersey
Advocate
Shane Michael Hollywood
British
26 New Street
St. Helier
Jersey
Advocate
- 189 -
The directors of the General Partner are partners of Bedell Group, which ultimately own (i) Bedell
Trust Company Limited, which provides services to the Issuer and the General Partner under the
Corporate Services Agreement, (ii) Bedell Secretaries Limited, which acts as secretary of the General
Partner and (iii) Bedell Trustees Limited, which holds the issued share capital of the General Partner
in its capacity as trustee of the CB MezzCAP (Jersey) Charitable Trust.
The secretary of the General Partner is Bedell Secretaries Limited, whose registered office is at
26 New Street, St. Helier, Jersey, Channel Islands.
Corporate Administration
The Corporate Administrator of the General Partner and the CB MezzCAP Limited Partnership is
Bedell Trust Company Limited having its registered office at 26 New Street, St. Helier, Jersey JE2
3RA, Channel Islands. The Corporate Services Agreement may be terminated by each party thereto by
giving 90 days' prior notice, and shall be terminated immediately upon the occurrence of certain
insolvency-related events, breach of agreement and unapproved changes to the Transaction
Documents. Upon the termination of this Agreement howsoever occurring, the Corporate
Administrator shall use its best endeavours to assist in the orderly transfer of the administration of the
General Partner and the CB MezzCAP Limited Partnership.
Fiscal Year
The fiscal year of the Issuer corresponds to the calendar year.
Auditor
The auditor of the Issuer is PWC having its address at Twenty Two Colomberie, St Helier, Jersey JE1
4XA, Channel Islands. PWC is registered as a chartered accountant with the Institute of Chartered
Accountants in England and Wales, the Institute of Chartered Accountants in Ireland and the Institute
of Chartered Accountants in Scotland.
The audited accounts of the Issuer may be obtained at the Issuer's office at 26 New Street, St. Helier,
Jersey JE2 3RA, Channel Islands.
Principal Banker
The principal banker of the Issuer is JPMorgan Chase Bank, N.A.
Financial Statements
Since its date of formation, no financial statements of the Issuer have been prepared. The Issuer
intends to publish its first financial statements in respect of the period ending on 31 December 2006.
Any future published financial statements prepared by the Issuer (which will, in each case, be in
respect of the period ending on 31 December) will be available from the registered office of the Issuer
and the office of the Irish Paying Agent. The auditors of the Issuer, PWC, are chartered accountants
qualified to practise in Jersey and shall prepare the aforementioned future financial statements in
accordance with accounting principles generally accepted in Jersey.
Litigation
Since the date of its formation on 13 October 2005, the Issuer has not been and is not involved in any
governmental, legal or arbitration proceedings that may have any material adverse effect on the
financial position of the Issuer. The Issuer is not aware that any such proceedings are imminent or
threatened, which could adversely affect the Issuer's business, results of operations or financial
- 190 -
condition.
Expense of the Admission to Trading
The total expenses related to the admission of the Notes to trading on the Irish Stock Exchange
amount to approx. EUR 14,000.
Material Adverse Change
Unless otherwise disclosed in this Prospectus, there has been no material adverse change in respect of
the financial situation of the Issuer since the date of its formation on 13 October 2005.
Capital Contributions
Under the limited partnership agreement, each of the General Partner and the Limited Partner have
agreed to make an initial capital contribution to the Issuer in the following amounts: EUR 1.00 and
EUR 10.00, respectively.
The liability of the Limited Partner for the debts or obligations of the Issuer will be limited to its initial
capital contribution and any additional capital contribution it has made or agreed to make to the Issuer.
Capitalisation on the Issue Date
The Issuer's contributed capital on the date of its formation on 13 October 2005 was EUR 11.00
consisting of a general partnership interest in the amount of EUR 1 and a limited partnership interest
in the amount of EUR 10.00. Since its formation and prior to the Issue Date, the Issuer has neither
incurred any long-term debt or short-term debt other than under the Bridge Facility and has not issued
any securities. The Issuer intends to issue on the Issue Date the Notes, in connection with which it will
incur a long-term debt obligation of EUR 199,500,000 (see "Terms and Conditions of the Notes").
The Issuer has no authorised capital and there exists no agreement to issue additional capital interests.
Opening balance sheet as of and for 13 October 2005
Set forth below is the opening balance sheet of the Issuer as of 13 October 2005, the date of its
establishment.
Cash
Total
Assets
(in EUR)
EUR 11.00
EUR 11.00
Liabilities
(in EUR)
Partnership capital
EUR 11.00
Total
EUR 11.00
There is no goodwill in the opening balance sheet of the Issuer, nor will any goodwill need to be
written off upon the issue of the Notes.
- 191 -
THE GENERAL PARTNER
The General Partner, CB MezzCAP Limited, was incorporated in Jersey, Channel Islands on 27 July
2005. The General Partner was incorporated under the Companies (Jersey) Law 1991 as a private
company of unlimited duration and with limited liability. Its registered number is 90779.
The General Partner's registered office and principal place of business is at 26 New Street, St. Helier,
Jersey, Channel Islands. The Memorandum and Articles of Association of the General Partner may be
inspected at the registered office of the Issuer and as long as any of the Notes are listed on the Irish
Stock Exchange, at the specified offices of the Irish Paying Agent.
The General Partner is wholly owned by Bedell Trustees Limited (as trustee of the CB MezzCAP
(Jersey) Charitable Trust), a trust company incorporated in Jersey and having its registered office at 26
New Street, St. Helier, Jersey, Channel Islands. The General Partner has no subsidiaries.
Directors, Secretary and Corporate Services
The Directors of the General Partner and their respective business addresses and other principal
activities are:
Name
Nationality
Business Address
Occupation
Richard Charles Gerwat
British
26 New Street
St. Helier
Jersey
Advocate
Shane Michael Hollywood
British
26 New Street
St. Helier
Jersey
Advocate
The Secretary of the General Partner is Bedell Secretaries Limited, whose registered office is at
26 New Street, St. Helier, Jersey, Channel Islands, telephone +44 (1534) 824 121.
Bedell Trust Company Limited has agreed, pursuant to and on the terms of the Corporate Services
Agreement dated 19 October 2005, to provide certain corporate services to the General Partner,
including the provision of directors and the secretary. Fees are payable to Bedell Trust Company
Limited thereunder. Bedell Trustees Limited and Bedell Secretaries Limited are both companies in the
Bedell Group.
Each of the directors is a partner in the Bedell Group the partners of which ultimately own Bedell
Trust Company Limited, Bedell Secretaries Limited and Bedell Trustees Limited and is a partner in
the law firm Bedell Cristin. Bedell Cristin is legal advisor to the Issuer and the General Partner as to
Jersey law and fees will be payable to Bedell Cristin from time to time for acting in such capacity.
Principal Activities
The General Partner's activities will principally be acting as general partner of the Issuer and will
include the execution and performance of all documents relating thereto to which the Issuer is
expressed to be a party, the exercise of related rights and powers and other activities reasonably
incidental thereto.
Share Capital
The authorised share capital of the General Partner is EUR 10,000 comprising 10,000 shares of EUR 1
each. The issued and paid up share capital of the General Partner is EUR 2 as at the date of this
- 192 -
Prospectus.
Capitalisation
The unaudited capitalisation of the General Partner as at the date of this Prospectus is as follows:
Total Share Capital: EUR 2
There are no outstanding securities, loans or subscriptions, allotments or options in respect of the
General Partner. There is no goodwill in the balance sheet of the General Partner.
- 193 -
THE TRUSTEE
J.P. Morgan Corporate Trustee Services Limited was incorporated on 22 July 1991 as a limited
company under English law. Its principal activity is to act as a corporate trustee on debt issuances in
the domestic and international capital markets.
As at 31 December 2004 J.P. Morgan Corporate Trustee Services Limited had capital of
USD 1,000,004. It is owned by J.P. Morgan Europe Limited (which is authorised and regulated by the
Financial Services Authority) and ultimately owned by JPMorgan Chase & Co. which is incorporated
in the United States of America.
JPMorgan Chase & Co. is a leading global financial services firm, and its shares are listed on the New
York stock exchange. As at 30 June 2004 JPMorgan Chase & Co. had assets of USD 818 million and
stockholders equity of USD 46 million.
- 194 -
THE CASH ADMINISTRATOR AND THE ACCOUNT BANK
JPMorgan Chase Bank, National Association ("JPMCB") is a wholly owned bank subsidiary of
JPMorgan Chase & Co. ("JPMorgan Chase"), a Delaware corporation whose principal office is
located in New York, New York. JPMCB is a commercial bank offering a wide range of banking
services to its customers, both domestically and internationally. It is chartered and its business is
subject to examination and regulation by the Office of the Comptroller of the Currency.
As of 30 September 2005, JPMorgan Chase Bank, National Association, had total assets of
USD 1,008.4 billion, total net loans of USD 386.9 billion, total deposits of USD 529.4 billion, and
total stockholder's equity of USD 85.1 billion. These figures are extracted from JPMCB's unaudited
Consolidated Reports of Condition and Income as at 30 September 2005, which are filed with the
Federal Deposit Insurance Corporation.
Additional information, including the most recent Form 10-K for the year ended 31 December 2004,
of JPMorgan Chase & Co., the 2004 Annual Report of JPMorgan Chase & Co. and additional annual,
quarterly and current reports filed or furnished with the Securities and Exchange Commission by
JPMorgan Chase & Co., as they become available, may be obtained without charge by each person to
whom this Official Statement is delivered upon the written request of any such person to the Office of
the Secretary, JPMorgan Chase & Co., 270 Park Avenue, New York, New York 10017.
- 195 -
THE SWAP COUNTERPARTY
The Swap Counterparty, AIG Financial Products Corp. ("AIG-FP"), commenced its operations in
1987. AIG-FP and its subsidiaries conduct, primarily as principal, a financial derivative products
business covering the fixed income, foreign exchange, credit, equity, energy and commodities
markets. AIG-FP also enters into investment contracts and other structured transactions and invests in
a diversified portfolio of securities. In the course of conducting its business, AIG-FP also engages in a
variety of other related transactions.
American International Group, Inc. ("AIG") is the guarantor of the payment obligations of its
subsidiary, AIG-FP, with respect to the Hedging Agreement entered into between AIG-FP and the
Issuer. AIG, a Delaware corporation, is a holding company that is primarily engaged, through its
subsidiaries, in a broad range of insurance and insurance-related activities and financial services in the
United States and abroad. AIG has filed a Form 10-Q for the quarterly period ended September 30,
2005, which can be inspected and copied at the public reference facilities maintained by the SEC at
100 F Street, N.E., Washington, D.C. 20549. Copies of such Form 10-Q can be obtained from the
Public Reference Section of the SEC, 100 F Street, N.E., Washington, D.C. 20549, at prescribed rates.
The SEC also maintains a web site at http://www.sec.gov which contains such Form 10-Q.
Except for the information contained in the preceding two paragraphs, AIG and AIG-FP have not been
involved in the preparation of, and do not accept responsibility for, this Prospectus as a whole.
- 196 -
THE RECOVERY ADVISOR
Ernst & Young Profile
Ernst & Young is one of the largest professional services firms in Germany and is a member of the
Ernst &Young Global network. Ernst & Young employs approximately 6,200 people in 22 business
locations in Germany. With revenues of some EUR 927 million, Ernst & Young is one of the three
largest players in the German auditing market and the leading tax advisor in Germany.
Ernst & Young's services include assurance & advisory business services, tax, corporate
finance/transactions and real estate. Luther Rechtsanwaltsgesellschaft mbH provides legal services.
Ernst & Young is geared toward both large companies and small and medium-sized enterprises.
Worldwide Ernst & Young has revenues in excess of USD 16.9 billion and more than 106,000
employees.
History
Ernst & Young Germany goes back to Schitag (Schwäbische Treuhand-Aktiengesellschaft) founded in
1919 and Datag (Deutsche Allgemeine Treuhand Aktiengesellschaft) founded in the same year, which
joined the international networks of Arthur Young and Ernst & Whinney in the 1980s. In 1994 the two
firms merged into Ernst & Young, and since 1999 both German member firms have also been
operating under the same name Ernst & Young. In September 2002, Ernst & Young and Arthur
Andersen in Germany combined to form Ernst & Young.
- 197 -
THE FINANCIAL ADVISOR
CBG Commerz Beteiligungsgesellschaft Holding mbH, Bad Homburg, a 100% subsidiary of
Commerzbank AG, acts as controlling company of CBG Commerz Group. The members of this group
serve Commerzbank as fund and management companies for equity capital and mezzanine
investments in unlisted companies in Germany and other European countries.
The origin of CBG Commerz Group, whose companies currently represent a portfolio volume of more
than EUR 150m, dates back to 1987. The companies are structured as so-called "open-end funds" and
have so far invested only Commerzbank AG's own funds. The investment range comprises minority
holdings in the private equity sector as well as mezzanine financing of established medium-sized
companies from Germany. With a volume of more than EUR 130 million in invested mezzanine
capital for medium-sized companies, CBG Commerz Group is one of the leading bank-related
providers of this form of financing in Germany.
During its existence CBG Commerz Group has provided companies from the most diverse industries
and size brackets with equity capital. The management of CBG Commerz Group, with cumulative
experience of more than 40 years in the European private equity market, covers the various stages in
the value chain of the participation process. The members of the team, who have been cooperating for
several years, have placed an aggregate amount of several hundred million Euro in participation
capital during their activity in the participation business.
- 198 -
THE TRANSACTION MONITOR
The role of the Transaction Monitor will be assumed by Commerzbank Aktiengesellschaft, London
Branch.
Commerzbank Aktiengesellschaft is a stock corporation under German law and was established as
Commerz- und Disconto-Bank in Hamburg in 1870. The Bank owes its present form to the re-merger
of the post-war successor institutions of 1952 on 1 July 1958. The Bank's registered office is located in
Frankfurt am Main and its head office is at Kaiserplatz, 60261 Frankfurt am Main, Federal Republic of
Germany. The Bank is registered in the commercial register of the lower regional court (Amtsgericht)
of Frankfurt am Main under the number HRB 32 000.
Commerzbank is a major German private-sector bank. Its products and services for retail and
corporate customers extend to all aspects of banking. The Bank is also active in specialised fields
− partly covered by its subsidiaries − such as mortgage banking and real-estate business, leasing and
asset management. Its services are concentrated on managing customers' accounts and handling
payments transactions, loan, savings and investments plans, and also on securities transactions.
Additional financial services are offered within the framework of the Bank's bancassurance strategy of
cooperating with leading companies in finance-related sectors, including home loan savings schemes
and insurance products. The Commerzbank Group's operating activities are bundled into two
divisions: Retail Banking and Asset Management, on the one hand, and Corporate and Investment
Banking, on the other.
Commerzbank's business activities are mainly concentrated on the German market. In corporate
business, Western, Central and Eastern Europe and also the USA are considered core markets.
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THE TAX LIQUIDITY FACILITY PROVIDER
Commerzbank Aktiengesellschaft is a stock corporation under German law and was established as
Commerz- und Disconto-Bank in Hamburg in 1870. The Bank owes its present form to the re-merger
of the post-war successor institutions of 1952 on 1 July 1958. The Bank's registered office is located in
Frankfurt am Main and its head office is at Kaiserplatz, 60261 Frankfurt am Main, Federal Republic of
Germany. The Bank is registered in the commercial register of the lower regional court (Amtsgericht)
of Frankfurt am Main under the number HRB 32 000.
Commerzbank is a major German private-sector bank. Its products and services for retail and
corporate customers extend to all aspects of banking. The Bank is also active in specialised fields
− partly covered by its subsidiaries − such as mortgage banking and real-estate business, leasing and
asset management. Its services are concentrated on managing customers' accounts and handling
payments transactions, loan, savings and investments plans, and also on securities transactions.
Additional financial services are offered within the framework of the Bank's bancassurance strategy of
cooperating with leading companies in finance-related sectors, including home loan savings schemes
and insurance products. The Commerzbank Group's operating activities are bundled into two
divisions: Retail Banking and Asset Management, on the one hand, and Corporate and Investment
Banking, on the other.
Commerzbank's business activities are mainly concentrated on the German market. In corporate
business, Western, Central and Eastern Europe and also the USA are considered core markets.
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RATINGS
The Class A Notes are expected to be rated Aaa by Moody's and AAA by S&P.
The Class B Notes are expected to be rated Aa2 by Moody's and AA by S&P.
The Class C Notes are expected to be rated A2 by Moody's and A by S&P.
The Class D Notes are expected to be rated Baa2 by Moody's and BBB by S&P.
The Class E Notes are expected to be rated Ba1 by Moody's and BB by S&P.
The Class F Notes will not be rated.
It is a condition of the issue of the Notes that they receive the above indicated ratings.
The ratings of the Notes address the likelihood that holders will receive timely payment of interest and
ultimate repayment of principal on the Notes. The ratings take into consideration the characteristics of
the Trustee Collateral and the structural, legal, tax and Issuer-related aspects associated with the
Notes.
A security rating is not a recommendation to buy, sell or hold securities and may be subject to revision
or withdrawal at any time by the rating organisation. The ratings assigned to the Notes should be
evaluated independently from similar ratings on other types of securities. In the event that the ratings
initially assigned to the Notes by the Rating Agencies are subsequently withdrawn or lowered for any
reason, no person or entity is obliged to provide any additional support or credit enhancement with
respect to such Notes.
There can be no assurance as to whether any other rating agency will rate the Notes or, if it does, what
rating would be assigned by such other rating agency. The rating assigned to the Notes by such other
rating agency could be lower than the respective ratings assigned by the Rating Agencies.
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TAXATION
The following is a general discussion of certain German and Jersey tax consequences of the
acquisition and ownership of Notes. This discussion does not purport to be a comprehensive
description of all tax considerations which may be relevant to a decision to purchase Notes. In
particular, this discussion does not consider any specific facts or circumstances that may apply to a
particular purchaser. This summary is based on the laws of Germany and Jersey currently in force and
as applied on the date of this Prospectus, which are subject to change, possibly with retroactive or
retrospective effect.
PROSPECTIVE PURCHASERS OF NOTES ARE ADVISED TO CONSULT THEIR OWN TAX
ADVISORS AS TO THE TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP AND
DISPOSITION OF NOTES AND THE RECEIPT OF INTEREST THEREON, INCLUDING THE
EFFECT OF ANY STATE OR LOCAL TAXES, UNDER THE TAX LAWS OF THE
JURISDICTIONS SET OUT BELOW AND EACH COUNTRY OF WHICH THEY ARE
RESIDENTS OR CITIZENS.
Tax Residents
Payments of interest on the Notes, including interest having accrued up to the disposition of a Note
and credited separately for such portion of the interest of the current interest payment period which is
attributable to the period up to the disposition of the Note ("Accrued Interest"), if any, to persons
who are tax residents of Germany (i.e., persons whose residence, habitual abode, statutory seat, or
place of effective management and control is located in Germany) are subject to German personal or
corporate income tax (plus solidarity surcharge (Solidaritätszuschlag) at a rate of 5.5% thereon). Such
interest may also be subject to trade tax if the Notes form part of the property of a German trade or
business. Accrued Interest paid upon the acquisition of the Notes may give rise to negative income if
the Note is held as a non-business asset.
If for the determination of the issue price of the Note the redemption amount is reduced by a discount
or if the redemption amount is increased as compared with the issue price of the Note (as, for example,
in the case of a discounted Note or a Note with accrued interest added), the difference between the
redemption amount and the issue price of the Note ("Original Issue Discount") realised when a Note
held as a non-business asset is redeemed to its initial subscriber will be taxable investment income,
however, only if the Original Issue Discount exceeds certain thresholds; in such case, the Note is
classified as a financial innovation (Finanzinnovation) under German tax law.
Upon the disposition, assignment or redemption of a Note a holder holding the Note as a non-business
asset will have to include in his taxable income further amounts if the Note can be classified as a
financial innovation under German tax law (including, among other things, zero coupon notes, floating
rate notes or discounted notes, provided the discount exceeds certain thresholds). In this case,
generally the difference between the proceeds from the disposition, assignment or redemption and the
issue or purchase price is deemed to constitute interest income subject to income tax (plus the
solidarity surcharge) in the year of the disposition, assignment or maturity of the Note. Alternatively,
the holder of the Note may show that such difference is greater than the excess of the redemption over
the issue price of the Note to the extent this excess amount is attributable to the period over which the
holder has held such Note (the "prorated excess amount"). In this case only such prorated excess
amount is taxed as interest income, provided that the Note has an identifiable yield to maturity. Where
a Note forms part of the property of a German trade or business, in each year the part of the difference
between the issue price of the Note and its redemption price attributable to such year as well as interest
accrued must be taken into account as income and may also be subject to trade tax.
Capital gains from the disposition of Notes, other than income described in the preceding paragraph,
are only taxable to a German tax-resident individual if the Notes are disposed of within one year after
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their acquisition or form part of the property of a German trade or business, in which case the capital
gains may also be subject to trade tax.
Capital gains derived by German-resident corporate holders of Notes will be subject to corporate
income tax (plus solidarity surcharge at a rate of 5.5% thereon) and trade tax, even if the Notes cannot
be classified as financial innovations.
If the Notes are held in a custodial account which the Noteholder maintains with a German branch of a
German or non-German bank or financial services institution (the "Disbursing Agent") a 30%
withholding tax on interest payments (Zinsabschlag), plus 5.5% solidarity surcharge on such tax, will
be levied, resulting in a total tax charge of 31.65% of the gross interest payment. Withholding tax is
also imposed on Accrued Interest. If the Notes can be classified as financial innovations, as explained
above, withholding tax at the aforementioned rate will also be withheld from the difference between
the proceeds from the disposition, assignment or redemption and the issue or purchase price of the
Notes if the Note has been kept in a custodial account with such Disbursing Agent since the time of
issuance or acquisition, respectively. If the Notes have afterwards been transferred into the custodial
account of the Disbursing Agent, withholding tax at the aforementioned rate will be levied on a lumpsum basis on 30% of the proceeds from the disposition, assignment or redemption of the Notes.
In computing the tax to be withheld the Disbursing Agent may deduct from the basis of the
withholding tax any Accrued Interest paid by the holder of a Note to the Disbursing Agent during the
same calendar year. In general, no withholding tax will be levied if the holder of a Note is an
individual (i) whose Note does not form part of the property of a German trade or business nor gives
rise to income from the letting and leasing of property, and (ii) who filed a withholding exemption
certificate (Freistellungsauftrag) with the Disbursing Agent but only to the extent the interest income
derived from the Note together with other investment income does not exceed the maximum
exemption amount shown on the withholding exemption certificate. Similarly, no withholding tax will
be deducted if the holder of the Note has submitted to the Disbursing Agent a certificate of nonassessment (Nichtveranlagungsbescheinigung) issued by the relevant local tax office.
Withholding tax and the solidarity surcharge thereon are credited as prepayments against the German
personal or corporate income tax and the solidarity surcharge liability of the German resident.
Amounts over withheld will entitle the holder of a Note to a refund, based on an assessment to tax.
Nonresidents
Interest, including Accrued Interest and (in the case of financial innovations) Original Issue Discount,
and capital gains are not subject to German taxation, unless (i) the Notes form part of the business
property of a permanent establishment, including a permanent representative, or a fixed base
maintained or deemed to be maintained in Germany by the holder of a Note or (ii) the interest income
otherwise constitutes German source income (such as income from the letting and leasing of certain
German-situs property). If the nonresident of Germany is subject to German taxation with income
from the Notes, in the latter case a tax regime similar to that explained above at "Tax Residents"
applies; capital gains from the disposition of Notes are, however, only taxable in the case of (i).
Nonresidents of Germany are, in general, exempt from German withholding tax on interest and the
solidarity surcharge thereon. However, where the interest is subject to German taxation as set forth in
the preceding paragraph and the Notes are held in a custodial account with a Disbursing Agent,
withholding tax is levied as explained above at "Tax Residents".
Inheritance and Gift Tax
No inheritance or gift taxes with respect to any Note will arise under the laws of Germany, if, in the
case of inheritance tax, neither the decedent nor the beneficiary, or, in the case of gift tax, neither the
donor nor the donee, is a resident of Germany and such Note is not attributable to a German trade or
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business for which a permanent establishment or fixed base is maintained or a permanent
representative has been appointed by the Noteholder in Germany. Exceptions from this rule apply to
certain German citizens who previously maintained a residence in Germany.
Certain Other Taxes
No stamp, issue, registration or similar taxes or duties will be payable in Germany in connection with
the issuance, delivery or execution of the Notes. Currently, net assets tax is not levied in Germany.
EU Savings Tax Directive and its implementation in the member states
On 3 June 2003, the Council of the European Union (the "EU") approved a directive (EC Directive
2003/48/EC) regarding the taxation of interest income (the "EU Savings Tax Directive").
Accordingly, each EU member state must require paying agents (within the meaning of the directive)
established within its territory to provide to its competent authority details of the payment of interest
made to any individual resident in another EU member state as the beneficial owner of such interest.
The competent authority of the EU member state of the paying agent (within the meaning of the EU
Savings Tax Directive) is then required to communicate this information to the competent authority of
the EU member state of which the beneficial owner of the interest is a resident.
For a transitional period, Austria, Belgium and Luxembourg may opt instead to withhold tax from
interest payments within the meaning of the EU Savings Tax Directive at a rate of 15% for the first
three years from application of the provisions of such directive, of 20% for the subsequent three years,
and of 35% from the seventh year after application of the provisions of such directive.
In conformity with the pre-requisites for the application of the EU Savings Tax Directive, Switzerland,
Liechtenstein, San Marino, Monaco and Andorra have confirmed that from 1 July 2005 they will
apply measures equivalent to those contained in such directive, in accordance with agreements entered
into by them with the European Community. It has also been confirmed that certain dependent or
associated territories (the Channel Islands, the Isle of Man and certain dependent or associated
territories in the Caribbean) will apply from that same date an automatic exchange of information or,
during the transitional period described above, a withholding tax in the described manner.
Consequently, the Council of the European Union noted that the conditions have been met to enable
the provisions of the EU Savings Tax Directive to enter into force as from 1 July 2005.
By legislative regulations dated January 26, 2004 the Federal Government enacted the provisions for
implementing the EU Savings Tax Directive into German law. These provisions apply as from July 1,
2005.
Noteholders should note that the Issuer will not pay any additional amounts in respect of any
withholding tax imposed as a result of this EU directive.
Taxation of the Issuer
Liability of the Issuer to German taxes on profits. The Issuer is treated as tax transparent for German
corporate income tax purposes and would therefore not be subject to such tax in respect of business
profits derived by it. However, business profits derived by the Issuer would be subject to German
corporate income tax (plus solidarity surcharge thereon) at the level of the Limited Partner, which is
domiciled and tax resident in Germany, in proportion to its respective participation in the profits of the
Issuer. The business profits derived by the Issuer would also be subject to German corporate income
tax (plus solidarity surcharge thereon) at the level of the General Partner (in proportion of its
respective participation), if the General Partner had its place of effective management and control in
Germany, or otherwise maintained a permanent establishment (Geschäftsleitung or Betriebsstätte), or
appointed a permanent representative (ständiger Vertreter), for its business in Germany.
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In calculating the corporate income tax base based on the income derived by the Issuer and attributable
to the Limited Partner (and, if applicable, the General Partner), the Limited Partner (and, if applicable,
the General Partner) would, however, be entitled (subject to the subsection "Thin Capitalisation Rules"
below) to deduct all expenses accrued or provisioned for in a given tax year, including the interest
payable on the Notes during such year. Depending on the profit to be allocated to the respective
Partner, the Partner could be expected to have a relatively small if not a flat corporate income tax base.
The Limited Partner is subject to corporate income tax (plus solidarity surcharge thereon) and trade
tax in Germany, but the income derived from the participation in the Issuer would be exempted from
trade tax. However, if the activities performed by the Issuer or by third parties on the Issuer's behalf
were not regarded as trade or business, but as a non commercial asset management (Vermögensverwaltung), the assets and liabilities of the Issuer would, in proportion to the Limited Partner's
participation in the Issuer, be directly allocated for trade tax purposes to the Limited Partner, and the
Limited Partner would be liable for trade tax on the income derived from the participation in the
Issuer. In calculating the net income which would be subject to trade tax, the Limited Partner would
also have to include half of the interest payments made by the Issuer under the Notes. There is a large
number of court decisions and rulings issued by the tax authorities on the distinction of a trade or
business and a non commercial activity. According to these decisions and rulings, in particular the
following characteristics may be indications for a trade or business: the use of debt financing, the
maintaining of an office or an organisation to carry out business, the exploitation of a market using
professional expertise and experience, and the offering of services to a broad public. Based on such
court decisions and guidance given by the tax authorities, the Issuer believes that the activities
performed by it should be regarded as trade or business: Although the Issuer maintains only a small
organisation for its activities, it has employed the services and professional expertise of several service
providers (like the Financial Advisor, the Transaction Monitor and the Cash Administrator) which
perform various administrative functions on behalf of the Issuer. The Issuer almost exclusively
operates with debt financing. By entering into the Participation Right Agreements and by publicly
offering the Notes to investors, the Issuer offers its services to a broad public. And finally, the number
and the volume of the Participation Right Agreements concluded by the Issuer, by itself, argue for a
trade or business. However, since there is no specific guidance available on the activities carried out
by the Issuer, there can be no assurance that the tax authorities or a German tax court would agree with
this assessment.
Although the Issuer is treated as transparent for German corporate income tax purposes, the Issuer is
not treated as tax transparent for the purposes of German trade tax. Consequently, the Issuer would be
subject to such tax in respect of its business profits if it had its place of effective management and
control in Germany or otherwise maintained a permanent establishment for its business in Germany.
In such a case, only the net income derived by the Issuer which is attributable to such permanent
establishment would be subject to German trade tax. In calculating the net income which would be
subject to trade tax, the Issuer would also have to include half of the interest payments made by the
Issuer under the Notes if the tax authorities took the position that the long-term indebtedness incurred
by the Issuer under the Notes could not be attributed to any non-German permanent establishment of
the Issuer.
For German tax purposes, the place of effective management and control of an entity is defined as the
place where the preponderance of managerial decisions is taken that are relevant in conducting the
day-to-day business of such entity. The place of effective management and control constitutes a
permanent establishment. A permanent establishment is otherwise constituted by any fixed place of
business or facility which serves the purposes of the relevant entity and over which the entity's
management has effective power of disposal (Verfügungsmacht), such as an office or a branch.
Furthermore, an entity would be deemed to have a permanent establishment in Germany, if it had
appointed a permanent representative for its business in Germany. A permanent representative of an
entity is defined as a person who habitually acts in an agency capacity and subject to the instructions
of the relevant entity in respect of business dealings of such entity, in particular concludes contracts in
the name of such entity or acts as an intermediary with respect to contracts concluded by such entity.
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Of the activities performed in Germany, the only activity which might, for tax purposes, be attributed
to the Issuer could be the functions performed by the Financial Advisor, the Recovery Advisor and the
Disposal Advisor. Although these functions are economically significant for the business operations of
the Issuer, the Financial Advisor, the Recovery Advisor and the Disposal Advisor will merely act in an
advisory capacity and will only perform certain administrative functions. In particular, neither the
Financial Advisor nor the Recovery Advisor nor the Disposal Advisor will enter into contracts in the
name of and with a binding effect on the Issuer.
All management decisions regarding the acquisition and, if applicable, the termination of the
Participation Rights advised and proposed by the Financial Advisor will be taken outside of Germany
by the Issuer based on a proposal made outside of Germany of the Investment Board the majority of
whose members are non-German resident with a qualified professional background (meaning not less
than five years' experience either in the banking industry including experience in credit decisions, or
from a career as a chartered accountant) that enables them to make investment recommendations and
are not employed by, and independent from, the Financial Advisor. The same applies with respect to
all material decisions concerning the administration of the Participation Right Agreements (including
the exercise of additional information rights under the Participation Right Agreements, in particular
the instruction of the Recovery Advisor), which are prepared by the Financial Advisor by submitting
information and making proposals. The same also applies with respect to all agreements the Issuer
may enter into regarding any disposals of Participation Rights (as far as permitted under the relevant
agreements) which are based on a proposal made by the Investment Board on the basis of the data and
information received from the Recovery Advisor and/or Disposal Advisor.
Based upon these considerations, the Issuer believes that its core management functions would not be
performed in Germany, it would not have the power to dispose of business premises in Germany, it
would not engage in the activities of a person having the power to bind it contractually and
consequently, the Issuer would not be treated as being effectively managed and controlled or
otherwise maintaining a permanent establishment, or as having appointed a permanent representative,
in Germany.
Investors should note however, that there are no precedents available on whether activities such as
performed by the Financial Advisor, the Recovery Advisor and/or the Disposal Advisor in Germany
would constitute a permanent establishment at the place of effective management and control of the
Issuer in Germany and consequently, there can be no assurance that the German tax authorities or
courts would agree with the above assessment. If the Issuer were viewed as maintaining a permanent
establishment at its place of effective management and control, or otherwise, in Germany, trade tax
would arise with respect to the net income derived by the Issuer which is attributable to its German
permanent establishment. In particular, if the tax authorities took the position that the long-term
indebtedness incurred by the Issuer under the Notes could not be attributed to any non-German
permanent establishment of the Issuer, in calculating the net income subject to trade tax the Issuer
would also have to include half of the interest payments made by the Issuer under the Notes.
Thin Capitalisation Rules
The German tax authorities might take the position that the thin capitalisation rules set forth in § 8a of
the German Corporate Income Tax Act (Körperschaftsteuergesetz) would apply to purchasers of the
Notes who are holding an equity interest in a Company or are a party related to such equityholder
within the meaning of § 1 para. 2 of the German Foreign Tax Act. The tax authorities could argue that,
in this case, the money paid by the relevant purchaser of a Note has to be treated as a loan granted by
such purchaser to the Company in which the purchaser (or a related person of the purchaser) is an
equityholder. However, since the Issuer has entered into Participation Right Agreements with a
number of Companies, it should be impossible for the tax authorities to allocate the money paid by a
certain purchaser of a Note to a specific Company and, consequently, to subject such purchase of a
Note to the German thin capitalisation rules. An application of the German thin capitalisation rules
could have adverse effects on the Companies in which such equity interests are held. In addition, the
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income derived under Notes held by equity holders of a Company or by persons who are related to
such equityholders might be reclassified as dividend income. Prospective purchasers of Notes who are
equityholders of a Company or persons who are related to such equityholders are advised to consult
their tax advisors as regards this risk.
Application of the German Investment Tax Act
The Issuer will be acquiring and (subject to certain conditions) disposing of a diversified portfolio
consisting of the Participation Rights. Due to this fact and to further circumstances, a German resident
Noteholder could be viewed as having acquired in substance units of a foreign investment fund, i.e. an
asset that represents units in respect of a portfolio of assets within the meaning of the German
Investment Act (Investmentgesetz; "IA"), which portfolio consists of securities or other eligible assets
falling within the scope of the IA and is invested according to the principle of risk diversification as
required by §§ 1, 2nd sentence, 2 para. 8 IA.
There are good and valid reasons why the Class A Notes, the Class B Notes, the Class C Notes, the
Class D Notes, the Class E Notes and the Class F Notes should not be treated as falling under the IA.
First of all, it is doubtful whether the underlying Participation Right Agreements can be regarded as
eligible assets falling within the scope of the IA. As the Participation Rights are granted by way of a
contract, they do in the view of the Issuer not qualify as "securities" within the meaning of § 2 para 4
no. 1 IA. There is, however, a risk that they might be viewed as "participations in business ventures
having an appraisable market value" within the meaning of § 2 para 4 no. 8 IA. Moreover, Permitted
Investments may include assets which qualify as "securities" within the meaning of the IA.
At least the holders of the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes, the
Class E Notes and the Class F Notes will not, in the ordinary course of the transaction, effectively
participate in the Issuer's profits or losses. According to a Federal Ministry of Finance circular dated
2 June 2005, CDOs (as defined therein and, according to such definition, including the Notes to be
issued by the Issuer) do not constitute investment units if the investors do not effectively participate in
the issuer's profits or losses. However, there is some risk that the relevant tax authorities would view
the Class F Notes differently. Based on the said circular, the Class F Notes would nevertheless not
qualify as foreign investment units if, apart from the substitution of securities (Schuldtitel) for the
purpose of ensuring the size, the maturity and the risk structure, only up to 20% p.a. of the assets
(Vermögen) of the Issuer may, pursuant to the contractual terms, be traded on a discretionary basis. As
the Issuer is not allowed to trade the portfolio comprised of the Participation Rights (i.e. to sell and
acquire such assets), but may merely dispose of the Participation Rights previously acquired (subject
to certain conditions being met), and given that the Transaction Monitor has undertaken to give
instructions to the Cash Administrator to invest amounts credited to the accounts of the Issuer in
Permitted Investments (as defined in the Cash Administration Agreement or dispose of Permitted
Investments provided that the aggregate amount per annum of such investments shall not exceed 20%
of the assets (Vermögen) of the Issuer, the Notes should not qualify as foreign investment units.
Moreover, given that the Issuer qualifies as a foreign partnership, the assets held by the Issuer should
not fall under the scope of the ITA, as the said Federal Ministry of Finance circular specifically
excludes the assets of non-German partnerships from the application of the ITA.
It may be expected that the tax authorities follow the interpretation of the IA and ITA as laid down in
the Federal Ministry of Finance circular dated 2 June 2005 and that, if they decide to adopt a different
position, they would - although this cannot be ruled out entirely - not do this with retroactive or
retrospective effect. The tax authorities may, however, change their position with effect for the future.
In addition, it needs to be noted that the circular has no binding effect on tax courts and that it cannot
be ruled out that a tax court would take a different position and characterise the Notes as investment
units. If this were the case or if, to some extent contrary to expectations, the tax authorities changed
their position with respect to a characterisation of CDOs as investment funds, it cannot be ruled out
that the entire issue of Notes could be qualified as investment units as a consequence. If one or more
Classes of Notes were to be qualified as investment units within the IA, the tax rules of the ITA would
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apply.
If the Notes were to be characterised as investment units under the IA, a German Noteholder would, in
principle, be taxed annually based on the distributions, interim earnings (Zwischengewinn) and, in
addition, 70% of the excess of the last determined redemption price, market price or stock exchange
price of the underlying units for the calendar year over the first determined redemption price, market
price or stock exchange price of the underlying units for the calendar year; in any case a minimum of
6% of the redemption price, market price or stock exchange price last determined for the calendar year
is taken into account in accordance with § 6 ITA.
German Withholding Tax
The Issuer believes that its Limited Partner having its registered office and management in Frankfurt
am Main, Germany, would, in proportion to its share in the profit of the Issuer which amounts to
99.9999%, be entitled to credit any withholding tax (Kapitalertragsteuer) withheld by the Companies
on remunerations owed to the Issuer in connection with the Participation Right Agreements pursuant
to § 43 para. 1 no. 2 of the German Income Tax Act against its own corporate income tax liability and,
to the extent the tax amounts withheld exceed the corporate income tax liability of the Limited Partner,
to obtain a refund of the excess amount from the German tax authorities. Reference is made to the
considerations as stated above in the subsection "Thin Capitalisation Rules". Based thereon the profits
arising from the participation in the Issuer would be relatively small. Therefore, the amount of tax
withheld is expected to exceed the amount of corporate income tax (plus solidarity surcharge) payable
on such profits.
According to a decision of the German Federal Tax Court dated 22 November 1995 (and published in
the Federal Tax Gazette 1996 part II, p. 531 et seq.), the German limited partners of a German-situs
partnership are, in proportion of their respective participation, entitled to obtain a tax credit (or, if
applicable, a refund) for any taxes withheld on payments made towards such partnership. Since, for
tax purposes, the same profit allocation rules apply irrespective of whether a German limited partner
holds a participation in a German or a non-German partnership, the Issuer believes that the principle
set out in the aforementioned court decision would also be applicable if and to the extent a German
limited partner (like the Limited Partner) holds a participation in a non-German partnership (like the
Issuer).
However, as there is no published court decision exactly on point, there can be no assurance that a
German tax court would agree with this assessment. If the Limited Partner should not be entitled to
obtain a tax credit or a tax refund for the tax withheld on the payments made by the Companies to the
Issuer, the Companies would be obliged to pay to the Issuer those additional amounts necessary for the
net amount remaining after the retention or the deduction of the withholding tax to equal the amount
which would have had to be paid to the Issuer without such retention or deduction. However, if and
when becoming obliged to make such gross-up payments, the Companies would be entitled to an
extraordinary termination of the respective Participation Right Agreements. As a consequence of such
termination, the Notes might become subject to a (partial) early redemption. Moreover, as regards the
Participation Right Agreements Type B the relevant Companies would, instead of exercising their
right to an extraordinary termination, also be entitled to declare the conversion of the related
Participation Right into a fixed-rate subordinated loan. In this case, the obligation of the relevant
Companies to pay the floating component of the remuneration would terminate and the revenues of the
Issuer would therefore be decreased accordingly.
JERSEY TAX CONSIDERATIONS
The following summary of the anticipated tax treatment in Jersey of the Issuer is based on Jersey
taxation law and practice in force at the date of this document and does not constitute legal or tax
advice. Prospective investors should consult their professional advisers on the implications of
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subscribing for, buying, holding, selling, redeeming or disposing of Notes under the laws of the
jurisdictions in which they may be liable to taxation. Prospective investors should be aware that tax
rules and practice and their interpretation may change.
The Issuer is not itself assessable to Jersey tax. The General Partner has been granted exempt company
status within the meaning of Article 123A of the Income Tax (Jersey) Law 1961, as amended for the
current calendar year. The effect of such special status is that the General Partner is treated as a nonresident company for the purposes of Jersey tax laws and is therefore exempt from Jersey income tax
on its profits arising outside Jersey (and, by concession, on bank deposit interest arising in Jersey) by
virtue of the performance of its function as general partner registered in Jersey. Such status is applied
for on an annual basis (together with payment of the required charge, currently £ 600). The retention
of exempt company status is conditional upon the Comptroller of Income Tax in Jersey being satisfied
that no Jersey resident has a beneficial interest in the General Partner, except as permitted by
concessions granted by the Comptroller of Income Tax.
As at the date of this Prospectus, Jersey has no capital gains tax and no inheritance tax or gift tax.
No stamp duty or similar taxes are payable in Jersey in connection with the issue, redemption or sale
of the Notes.
EU Savings Tax Directive
Jersey is not subject to the EU Savings Tax Directive (described above). However, in keeping with
Jersey’s policy of constructive international engagement, the States of Jersey has introduced a
retention tax system in respect of payments of interest, or other similar income, made to an individual
beneficial owner resident in an EU Member State by a paying agent situated in Jersey (the terms
"beneficial owner" and "paying agent" are defined in the EU Savings Tax Directive). The retention tax
system will apply for a transitional period prior to the implementation of a system of automatic
communication to EU Member States of information regarding such payments. The transitional period
will end only after all EU Member States apply automatic exchange of information and the EU
Member States unanimously agree that the United States of America has committed to exchange of
information upon request. During this transitional period, such an individual beneficial owner resident
in an EU Member State will be entitled to request a paying agent not to retain tax from such payments
but instead to apply a system by which the details of such payments are communicated to the tax
authorities of the EU Member State in which the beneficial owner is resident.
Under the implementation of the retention tax system in Jersey the Issuer will not be obliged to levy
retention tax in respect of interest payments made by it to any of the Paying Agents.
European Union Code of Conduct on Business Taxation
On 3 June 2003, the European Union Council of Economic and Finance Ministers reached political
agreement on the adoption of a Code of Conduct on Business Taxation (the "Code"). Jersey is not a
member of the European Union, however, the Policy & Resources Committee of the States of Jersey
has announced that, in keeping with Jersey’s policy of constructive international engagement, it
intends to propose legislation to replace the Jersey exempt company regime by 1 January 2008 with a
general zero rate of corporate tax.
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SUBSCRIPTION AND SALE
Subscription of the Notes
Pursuant to the Subscription Agreement, the Managers have agreed, subject to certain conditions, to
subscribe, or to procure subscriptions, for the Notes. Neither of the Managers will receive any
underwriting commission, selling concession or other remuneration from the Issuer thereunder.
In the Subscription Agreement, the Issuer has made certain representations and warranties.
The Subscription Agreement is subject to a number of conditions and entitles the Managers to
terminate their obligations thereunder in certain circumstances prior to payment of the purchase price
of the Notes. The Issuer has agreed to indemnify the Managers against certain liabilities in connection
with the offer and sale of the Notes.
Selling Restrictions
United States of America and its Territories. (1) The Notes have not been and will not be registered
under the Securities Act and may not be offered, or sold within the United States or to, or for the
account or benefit of, U.S. persons except in accordance with Regulation S under the Securities Act.
Each of the Managers has represented and agreed that it has offered and sold the Notes, and will offer
and sell the Notes (i) as part of its distribution at any time and (ii) otherwise until 40 days after the
completion of the distribution of all the Notes only in accordance with Rule 903 of the Regulation S
under the Securities Act. Neither any of the Managers, their affiliates nor any persons acting on their
behalf have engaged or will engage in any directed selling efforts with respect to the Notes, and it and
they have complied and will comply with the offering restrictions requirements of Regulation S under
the Securities Act. At or prior to confirmation of sale of Notes, each of the Managers will have sent to
each distributor, dealer or person receiving a selling concession, fee or other remuneration that
purchases Notes from it during the restricted period a confirmation or notice to substantially the
following effect:
"The Securities covered hereby have not been registered under the U.S. Securities Act of 1933, as
amended (the "Securities Act") and may not be offered or sold within the United States or to, or for
the account or benefit of, U.S. persons (i) as part of their distribution at any time or (ii) otherwise until
40 days after the completion of the distribution of the Securities as determined and certified by any of
the Managers, except in either case in accordance with Regulation S under the Securities Act. Terms
used above have the meaning given to them in Regulation S under the Securities Act."
Terms used in this clause have the meaning given to them by Regulation S under the Securities Act.
(2) Further, each of the Managers has represented and agreed that:
(a) except to the extent permitted under U.S. Treas. Reg. Section 1.163-5 (c)(2)(i)(D) (the
"TEFRA D Rules"), (i) it has not offered or sold, and during the restricted period will not offer or sell,
directly or indirectly, Notes in bearer form to a person who is within the United States or its
possessions or to a United States person, and (ii) it has not delivered and will not deliver, directly or
indirectly, within the United States or its possessions definitive Notes in bearer form that are sold
during the restricted period;
(b) it has and throughout the restricted period will have in effect procedures reasonably designed to
ensure that its employees or agents who are directly engaged in selling Notes in bearer form are aware
that such Notes may not be offered or sold during the restricted period to a person who is within the
United States or its possessions or to a United States person, except as permitted by the TEFRA D
Rules;
- 210 -
(c) if it was considered a United States person, that it is acquiring the Notes for purposes of resale
in connection with their original issuance and agrees that if it retains Notes in bearer form for its own
account, it will only do so in accordance with the requirements of U.S. Treas. Reg. Section 1.63-5
(c)(2)(i)(D)(6); and
(d) with respect to each affiliate that acquires from it Notes in bearer form for the purpose of
offering or selling such Notes during the restricted period that it will either (i) repeat and confirm the
representations and agreements contained in sub-clauses (a), (b) and (c); or (ii) obtain from such
affiliate for the benefit of the Issuer the representations and agreements contained in sub-clauses (a),
(b) and (c).
Terms used in this clause (2) have the meanings given to them by the U.S. Internal Revenue Code and
regulations thereunder, including the TEFRA D Rules.
Japan. Each of the Managers has acknowledged that it is aware that the Notes have not been and will
not be registered under the Securities and Exchange Law of Japan (Law No. 25 of 1948) (as amended)
(the "Securities and Exchange Law") and are subject to the Special Taxation Measures Law of Japan
(Law No. 26 of 1957) (as amended) (the "Special Taxation Measures Law"). Each of the Managers
has represented and agreed that it has not, directly or indirectly, offered or sold and will not, directly
or indirectly, offer or sell Notes in Japan or to any person resident in Japan for Japanese securities law
purposes (including any corporation or other entity organised under the laws of Japan), except
pursuant to an exemption from the registration requirements of, and otherwise in compliance with, the
Securities and Exchange Law of Japan.
European Economic Area. In relation to each Member State of the European Economic Area (The EU
plus Iceland, Norway and Liechtenstein) which has implemented the Prospectus Directive (each, a
"Relevant Member State"), each of the Managers has represented and agreed that with effect from
and including the date on which the Prospectus Directive is implemented in that Relevant Member
State (the "Relevant Implementation Date") it has not made and will not make an offer of Notes to
the public in that Relevant Member State, except that it may, with effect from and including the
Relevant Implementation Date, make an offer of Notes to the public in that Relevant Member State:
(a) in the period beginning on the date of publication of a prospectus in relation to those Notes
which has been approved by the competent authority in that Relevant Member State in accordance
with the Prospectus Directive or, where appropriate, published in another Member State and notified
to the competent authority in that Relevant Member State in accordance with Article 18 of the
Prospectus Directive and ending on the date which is 12 months after the date of such publication;
(b) at any time to legal entities which are authorised or regulated to operate in the financial markets
or, if not so authorised or regulated, whose corporate purpose is solely to invest in securities;
(c) at any time to any legal entity which has two or more of (1) an average of at least 250
employees during the last financial year, (2) a total balance sheet of more than EUR 43,000,000 and
(3) an annual turnover of more than EUR 50,000,000, as shown in its last annual or consolidated
accounts; or
(d) at any time in any other circumstances which do not require the publication by the Issuer of a
prospectus pursuant to Article 3 of the Prospectus Directive.
For the purposes of this provision, the expression an "offer of Notes to the public" in relation to any
Notes in any Relevant Member State means the communication in any form and by any means of
sufficient information on the terms of the offer and the Notes to be offered so as to enable an investor
to decide to purchase or subscribe the Notes, as the same may be varied in that Member State by any
measure implementing the Prospectus Directive in that Member State and the expression "Prospectus
- 211 -
Directive" means Directive 2003/71/EC and includes any relevant implementing measure in each
Relevant Member State.
United Kingdom. Each of the Managers has represented and agreed that:
(a) (i) it is a person whose ordinary activities involve it in acquiring, holding, managing or
disposing of investments (as principal or agent) for the purposes of its business and (ii) it has not
offered or sold and will not offer or sell the Notes other than to persons whose ordinary activities
involve them in acquiring, holding, managing or disposing of investments (as principal or as agent) for
the purposes of their businesses or who it is reasonable to expect will acquire, hold, manage or dispose
of investments (as principal or agent) for the purposes of their businesses where the issue of the Notes
would otherwise constitute a contravention of Section 19 of the Financial Services and Markets Act
2000 (the "FSMA") by the Issuer;
(b) it has only communicated or caused to be communicated and will only communicate or cause to
be communicated an invitation or inducement to engage in investment activity (within the meaning of
Section 21 of the FSMA) received by it in connection with the issue or sale of the Notes in
circumstances in which Section 21(1) of the FSMA does not apply to the Issuer;
(c) it has complied and will comply with all applicable provisions of the FSMA with respect to
anything done by it in relation to the Notes in, from or otherwise involving the United Kingdom.
As used herein, "United Kingdom" means the United Kingdom of Great Britain and Northern Ireland.
The Netherlands. Each of the Managers has represented and agreed that it has not offered and will not
offer any Notes in the Netherlands and that it has not announced and will not announce any such offer,
other than:
(a) if those Notes have been, or will likely shortly be, admitted to listing on the Official Segment of
the stock market of Euronext Amsterdam N.V.; or
(b) if (i) the Prospectus (the "Offer Document") (A) complies with Section 2 of the 1995 Decree
on the Supervision of the Securities Trade (Besluit toezicht effectenverkeer 1995, the "Securities
Decree"), (B) is submitted to the Netherlands Authority for the Financial Markets (Stichting Autoriteit
Financiële Markten, the "AFM") before the offer is made, and (C) is generally available as of the time
when the offer is made or the Offer Document (A) has been approved by the competent authority as
referred to in Article 20 or Article 21 of EC Directive 89/298/EEC, (B) is recognised by the AFM and
(C) is generally available as of the time when the offer is made and (ii) each announcement of the
offer states where and when the Offer Document will be or has been made generally available, and
each such announcement made before the offer is made, is submitted to the AFM before the Offer
Document is published and (iii) if after the date of the Offer Document new relevant facts occur or are
discovered, Section 6 of the Securities Decree is complied with, all provided that the offer is made
within one year after the date of the Offer Document; or
(c) to persons who trade or invest in securities in the conduct of their profession or trade (which
includes banks, securities intermediaries (including dealers and brokers), insurance companies,
pension funds, other institutional investors and commercial enterprises which as an ancillary activity
regularly invest in securities) ("professional investors"), provided that the offer, the Offer Document
and each announcement of the offer states that the offer is exclusively made to those persons; or
(f)
or
if those Notes have a denomination of at least EUR 50,000 (or its foreign currency equivalent);
(g) if (i) those Notes qualify as Euro-securities (Euro-effecten) (which they do if (A) they are
subscribed for and placed by a syndicate of which at least two members are established according to
- 212 -
their constitutional documents in different States party to the Agreement on the European Economic
Area, (B) at least 60% of those Notes are offered in one or more states other than the state where the
relevant Issuer is established according to its constitutional documents, and (C) the Notes may only be
subscribed for or initially be purchased through a credit institution or another institution which in the
conduct of its business or profession provides one or more of the services referred to under 7 and 8 of
Annex 1 to EC Directive 2000/12/EC) and (ii) no general advertising or canvassing campaign is
conducted in respect of the Notes anywhere in the world; or
(h) otherwise in accordance with the Dutch 1995 Act on the Supervision of the Securities Trade
(Wet toezicht effectenverkeer 1995).
In addition, each of the Managers has represented and agreed that it has not transferred or accepted
and will not transfer or accept any Bearer Zero Coupon Notes and other Notes which qualify as
savings certificates as defined in the Dutch Savings Certificates Act (Wet inzake spaarbewijzen) other
than through the mediation of either the Issuer or a Member of Euronext Amsterdam N.V. with due
observance of the Savings Certificates Act and its implementing regulations (including registration
requirements), provided that no mediation is required in respect of (i) the initial issue of those Notes to
the first holders thereof, (ii) any transfer and delivery by individuals who do not act in the conduct of a
profession or trade, and (iii) the issue and trading of those Notes, if they are physically issued outside
the Netherlands and are not distributed in the Netherlands in the course of primary trading or
immediately thereafter.
France. Each of the Managers has agreed that Notes in connection with their initial distribution, have
not been offered or sold and will not be offered or sold, directly or indirectly, to the public in France,
and that, in connection with their initial distribution, it has not distributed and will not distribute or
cause to be distributed to the public in France the Prospectus or any other offering material relating to
the Notes. Nevertheless, the Notes, in connection with their initial distribution, can be offered or sold
and the Prospectus or any amendment, supplement or replacement thereto or any material relating to
the Notes may be distributed or caused to be distributed to any French Qualified Investor (investisseur
qualifié), or to a limited circle of investors (cercle restreint d’investisseurs), as defined by article
L.411-2-II of the French Monetary and Financial Code (Code Monétaire et Financier) and by the
French Decree no. 98-880 dated 1 October 1998 and in compliance with all relevant regulations issued
from time to time by the French financial market authority (i.e. Autorité des Marchés Financiers).
Investors in France are informed that:
(i)
neither the offer and sale of the Notes nor the Prospectus have been submitted for clearance to
the French financial market authority (Autorité des Marchés Financiers);
(ii)
investors or entities described in article L.411-2-II-4° of the French Monetary and Financial
Code (Code Monétaire et Financier) can only acquire Notes for their own account and in
accordance with the provisions of articles D.411-1, D.411-2, D.734-1, D.744-1, D.754-1 and
D.764-1 of the French Monetary and Financial Code (Code Monétaire et Financier); and
the direct and indirect distribution or sale to the public of the Notes acquired by them can only be
made in compliance with articles L.411-1, L.411-2, L.412-1 and L.621-8 to L.621-8-3 of the French
Monetary and Financial Code (Code Monétaire et Financier).
Italy. The offering of the Notes has not been cleared by CONSOB (the Italian Securities Exchange
Commission) pursuant to Italian securities legislation and, accordingly, no Notes may be offered, sold
or delivered, nor may copies of the Prospectus or of any other document relating to the Notes be
distributed in the Republic of Italy, except:
(A)
to professional investors ("operatori qualificati"), as defined in Article 31, second paragraph,
of CONSOB Regulation No. 11522 of 1st July, 1998, as amended; or
- 213 -
(B)
in circumstances which are exempted from the rules on solicitation of investments pursuant to
Article 100 of Legislative Decree No. 58 of 24th February, 1998 (the "Financial Services Act")
and Article 33, first paragraph, of CONSOB Regulation No. 11971 of 14th May, 1999, as
amended.
Any offer, sale or delivery of the Notes or distribution of copies of the Prospectus or any other
document relating to the Notes in the Republic of Italy under (A) or (B) above must be:
(i)
made by an investment firm, bank or financial intermediary permitted to conduct such activities
in the Republic of Italy in accordance with the Financial Services Act and Legislative Decree
No. 385 of 1st September, 1993 (the "Banking Act"), as amended;
(ii)
in compliance with Article 129 of the Banking Act and the implementing guidelines of the Bank
of Italy pursuant to which the issue or the offer of securities in the Republic of Italy may need to
be preceded and followed by an appropriate notice to be filed with the Bank of Italy depending,
inter alia, on the aggregate value of the securities issued or offered in the Republic of Italy and
their characteristics; and
(iii)
in compliance with any other applicable laws and regulations.
Without prejudice to the above, the Class E Notes will not be offered on the primary market and sold
on the secondary market in Italy to entities other than professional investors and in no event to
physical persons.
Jersey. No Notes may be offered to, sold to or purchased by persons resident for income tax purposes
in Jersey other than financial institutions in the normal course of business.
Ireland. Each of the Managers has confirmed and agreed that (i) it has not offered or sold, and will not
offer or sell, the Notes to the public within Ireland except in circumstances which do not require the
prior publication of a prospectus pursuant to Article 3(2) of Directive 2003/71/EC; and (ii) it has not
and will not do anything in Ireland in connection with the Notes that might constitute a breach of
Section 9(1), 23(1), 23(6) or 23(7) of the Investment Intermediaries Act 1995.
General. Each of the Managers has agreed that it will not offer, sell or deliver any of the Notes,
directly or indirectly, or distribute this Prospectus or any other offering material relating to the Notes,
in or from any jurisdiction except under circumstances that will to its best knowledge and belief result
in compliance with the applicable laws and regulations thereof.
- 214 -
USE OF PROCEEDS
The proceeds from the issue of the Notes will amount to EUR 199,500,000. The Issuer will use the
proceeds from the issue of the Notes to redeem the Bridge Facility pursuant to which the Issuer has
received certain term loans in order to finance the investment in the portfolio of Participation Rights.
- 215 -
GENERAL INFORMATION
Subject of this Prospectus
This Prospectus relates to EUR 137,800,000 aggregate principal amount of the Class A Notes,
EUR 20,000,000 aggregate principal amount of the Class B Notes, EUR 10,500,000 aggregate
principal amount of the Class C Notes, EUR 14,500,000 aggregate principal amount of the Class D
Notes, EUR 7,700,000 aggregate principal amount of the Class E Notes, and EUR 9,000,000
aggregate principal amount of the Class F Notes issued by CB MezzCAP Limited Partnership.
Authorisation
The Issuer has obtained all necessary consents, approvals and authorisations in connection with the
issue of the Notes. The issue of the Notes was authorised by a resolution of the board of directors of
the General Partner of the Issuer passed on 10 April 2006.
Litigation
Neither the Issuer is, nor has been since its formation, engaged in any litigation or arbitration
proceedings which may have or have had during such period a significant effect on its respective
financial position, and, as far as the Issuer is aware, no such litigation or arbitration proceedings are
pending or threatened, respectively.
Material Change
Save as disclosed in this Prospectus, there has been (a) no material adverse change in the financial
position or prospects of the Issuer since its formation and (b) no significant change in the trading or
financial position of the Issuer since its formation.
Payment Information
Payments and transfers of the Notes will be settled through Clearstream Luxembourg and Euroclear,
as described herein. The Notes have been accepted for clearance through Clearstream Luxembourg
and Euroclear.
All notices to the Noteholders shall be either (a) delivered to Clearstream Luxembourg and Euroclear
for communication by them to the Noteholders, or (b) made available for a period of not less than 30
calendar days on the following web site: www.ise.ie. For the avoidance of doubt, such web site does
not form part of this Prospectus.
Listing; Availability of Documents
Application has been made to the Irish Financial Services Regulatory Authority (the "IFSRA"), as
competent authority under Directive 2003/71/EC, for the Prospectus to be approved. Application has
been made to the Irish Stock Exchange for the Notes to be admitted to the Official List and trading on
its regulated market. The Issuer has appointed J.P. Morgan Bank (Ireland) PLC as the initial listing
agent for the Irish Stock Exchange and as its initial Irish Paying Agent.
The following documents may be obtained in electronic form or will be available for inspection during
customary business hours on any working day from the date hereof (or the date of publication of such
document, as relevant) as long as any of the Notes remain outstanding at the registered office of the
Issuer and the head office of the Irish Paying Agent:
(i)
the partnership agreement of the Issuer;
(ii)
the Memorandum and Articles of Association of the General Partner;
(iii)
the resolutions of the board of directors of the General Partner of the Issuer approving the issue
- 216 -
of the Notes and the Transaction;
(iv)
the Trust Agreement dated 1 December 2005 (as amended and restated on 11 April 2006);
(v)
all future annual financial statements of the Issuer.
No post issuance transaction information will be provided to the Noteholders.
Clearing Codes
Class A
ISIN XS0249999714
Common Code 24999971
WKN A0GQMU
Class D
ISIN XS0250000998
WKN A0GQMX
Class B
ISIN XS0249999987
WKN A0GQMV
Class E
ISIN XS0250001293
WKN A0GQMY
Class C
ISIN XS0250000139
WKN A0GQMW
Class F
ISIN XS0250001707
WKN A0GQMZ
- 217 -
INDEX OF DEFINED TERMS
€ .........................................................................................................................................................4
Account Bank..................................................................................................................................48
Accounts........................................................................................................................................152
Accrued Interest ...........................................................................................................................201
Administrative Expenses ..........................................................................................................12, 46
Administrative Expenses Cap Amount ....................................................................................12, 46
Advisor ............................................................................................................................................69
Affiliate............................................................................................................................................66
AFM ..............................................................................................................................................211
Agency Agreement..........................................................................................................................49
Agent Fees .................................................................................................................................12, 46
Agent Fees Cap Amount ...........................................................................................................12, 46
Bridge Facility.............................................................................................................................1, 28
Bridge Facility Agreement................................................................................................................1
Business Day ...................................................................................................................................50
Cash Administration Agreement....................................................................................................48
Cash Administrator ........................................................................................................................48
Class ................................................................................................................................................42
Class A Notes ..................................................................................................................................42
Class A Notes Interest.....................................................................................................................50
Class B Notes...................................................................................................................................42
Class B Notes Interest .....................................................................................................................50
Class C Notes ..................................................................................................................................42
Class C Notes Interest.....................................................................................................................50
Class D Notes ..................................................................................................................................42
Class D Notes Interest.....................................................................................................................50
Class E Notes...................................................................................................................................42
Class E Notes Interest .....................................................................................................................50
Class F Notes...................................................................................................................................42
Class F Notes Interest .....................................................................................................................50
Clearstream Luxembourg ..............................................................................................................43
Clearstream Luxembourg Participant ...........................................................................................43
Collateral Assets .............................................................................................................................61
Co-Manager ....................................................................................................................................48
Commitment ...................................................................................................................................21
Common Depositary .......................................................................................................................42
Companies...................................................................................................................................1, 48
Corporate Administrator ...............................................................................................................49
Corporate Services Agreement.......................................................................................................49
Determination Date...................................................................................................................12, 46
Disbursing Agent ..........................................................................................................................202
EC Treaty........................................................................................................................................52
English Security Deed.....................................................................................................................49
EU Savings Tax Directive .............................................................................................................203
EUR...................................................................................................................................................4
EURIBOR .......................................................................................................................................51
EURIBOR Determination Date......................................................................................................51
euro ...................................................................................................................................................4
Euroclear.....................................................................................................................................4, 43
Euroclear Participant .....................................................................................................................43
Euro-zone........................................................................................................................................52
Exchange Date ................................................................................................................................43
Financial Advisor............................................................................................................................48
- 218 -
Financial Advisory Agreement.......................................................................................................48
FSMA ............................................................................................................................................211
General Partner ..............................................................................................................................49
Germany ...........................................................................................................................................4
Global Note .................................................................................................................................4, 42
Global Notes................................................................................................................................4, 42
Hedging Agreement ........................................................................................................................49
Holding Company ...........................................................................................................................66
IA............................................................................................................................................. 40, 206
IFSRA .......................................................................................................................................1, 215
Interest Accrual Period ..................................................................................................................51
Interest Amount..............................................................................................................................50
Interest Available......................................................................................................................12, 46
Interest Rate....................................................................................................................................51
Interest Shortfall.............................................................................................................................52
Investment Advisory Agreement....................................................................................................48
Investment Board ...........................................................................................................................48
Irish Paying Agent ..........................................................................................................................55
Issue Date ....................................................................................................................................1, 42
Issuer ...........................................................................................................................................1, 42
Issuer Accounts ...............................................................................................................................61
Issuer Event of Default ...................................................................................................................54
Issuer Receipts ..........................................................................................................................12, 46
Junior Performance Premium..................................................................................................12, 46
Lead Manager.................................................................................................................................48
Legal Maturity Date .......................................................................................................................53
Limited Partner ..............................................................................................................................48
Liquidity Facility Provider .............................................................................................................48
Maintenance Expenses..............................................................................................................12, 46
Managers...................................................................................................................................22, 48
Monitoring Performance Fee ...................................................................................................12, 47
New Issuer.......................................................................................................................................56
Note Custodian................................................................................................................................54
Note Principal Amount ...................................................................................................................51
Noteholders .....................................................................................................................................42
Notes............................................................................................................................................1, 42
Offer Document ............................................................................................................................211
Original Issue Discount ................................................................................................................201
Participation Right Agreements........................................................................................... 1, 48, 60
Participation Right Agreements Type A........................................................................................23
Participation Right Agreements Type B ........................................................................................23
Participation Right Type A ............................................................................................................23
Participation Right Type B.............................................................................................................23
Participation Rights........................................................................................................................48
Participation Rights Type A .....................................................................................................12, 47
Paying Agents ...........................................................................................................................22, 55
Payment Date..............................................................................................................................1, 50
Permanent Global Note ..............................................................................................................4, 42
Permitted Investments....................................................................................................................20
Portfolio ............................................................................................................................................1
Principal Available ...................................................................................................................12, 47
Principal Deficiency Amount....................................................................................................11, 53
Principal Deficiency Event .............................................................................................................53
Principal Deficiency Ledger .....................................................................................................11, 53
Principal Deficiency Reversal Amount ....................................................................................11, 53
- 219 -
Principal Paying Agent .............................................................................................................48, 55
Priority of Payments .................................................................................................................12, 44
Proceedings .....................................................................................................................................58
professional investors....................................................................................................................211
Prospectus .......................................................................................................................................55
Prospectus Directive .....................................................................................................................211
Rating Agencies ..............................................................................................................................56
Recoveries Available .................................................................................................................12, 47
Recovery Advisor............................................................................................................................48
Recovery Advisory Agreement.......................................................................................................48
Reference Banks .............................................................................................................................52
Relevant Implementation Date.....................................................................................................210
Relevant Interest Accrual Period ...................................................................................................51
Relevant Member State ................................................................................................................210
Reserve Account .............................................................................................................................61
Reserve Account Required Amount.........................................................................................12, 47
Scheduled Maturity Date................................................................................................................53
Secured Obligations ........................................................................................................................60
Securities Act ............................................................................................................................4, 209
Securities and Exchange Law .......................................................................................................210
Securities Decree...........................................................................................................................211
Security Documents ........................................................................................................................61
Service Provider Cap Amount..................................................................................................12, 47
Service Provider Fees ...............................................................................................................12, 47
Special Taxation Measures Law ...................................................................................................210
Subscription Agreement .................................................................................................................48
Subsidiary .......................................................................................................................................66
Swap Collateral.........................................................................................................................12, 47
Swap Counterparty.........................................................................................................................49
TARGET.........................................................................................................................................50
TARGET Settlement Day...............................................................................................................52
Tax Liquidity Facility Agreement ..................................................................................................48
Tax Refund Claim...........................................................................................................................22
Tax Reimbursement Agreement ....................................................................................................48
taxes.................................................................................................................................................55
TEFRA D Rules ............................................................................................................................209
Temporary Global Note..............................................................................................................4, 42
Terms and Conditions ....................................................................................................................42
Transaction .....................................................................................................................................49
Transaction Account.......................................................................................................................61
Transaction Agreements.................................................................................................................49
Transaction Creditors ....................................................................................................................59
Transaction Documents ..................................................................................................................49
Transaction Management Performance Fee ............................................................................12, 47
Transaction Monitor.......................................................................................................................48
Transaction Monitoring Agreement...............................................................................................48
Trust Agreement.........................................................................................................................1, 49
Trustee ........................................................................................................................................1, 49
Trustee Claim .................................................................................................................................60
Trustee Collateral .....................................................................................................................49, 61
Trustee Duties .................................................................................................................................59
United Kingdom............................................................................................................................211
United States ...................................................................................................................................43
- 220 -
THE ISSUER
26 New Street
St. Helier
Jersey
Channel Islands
THE CORPORATE ADMINISTRATOR
Bedell Trust Company Limited
26 New Street
St. Helier
Jersey
Channel Islands
THE TRUSTEE
J.P. Morgan Corporate Trustee Services Limited
Trinity Tower
9 Thomas More Street
London E1W1YT
United Kingdom
THE INVESTMENT BOARD
Stephanie Gaubatz
Am Tannenstumpf 72
63303 Dreieich
Germany
James Fairrie
Wilmington Trust SP Services (London) Limited
Tower 42
Level 11
25 Old Broad Street
London, EC2N 1HQ
United Kingdom
Cord Rodewald
CEFA
COMINVEST Asset Management S.A.
25, rue Edward Steichen
2540 Luxembourg
THE FINANCIAL ADVISOR
CBG Commerz Beteiligungsgesellschaft Holding mbH
Kaiserplatz, 60311
Frankfurt am Main
Germany
THE TRANSACTION MONITOR
London EC3V 0HR
United Kingdom
- 221 -
THE RECOVERY ADVISOR
Ernst & Young AG
Wirtschaftsprüfungsgesellschaft
Mergenthalerallee 10-12
65760 Eschborn/Frankfurt am Main
Germany
THE DISPOSAL ADVISOR
Ernst & Young Corporate Finance Beratung GmbH
Arnulfstraße 126
80636 München
Germany
THE LIQUIDITY FACILITY PROVIDER
Kaiserstr. 30
60261 Frankfurt am Main
THE SWAP COUNTERPARTY
AIG Financial Products Corp.
50 Danbury Road
Wilton, CT 06897-4444
United States of America
THE CASH ADMINISTRATOR
Trinity Tower
9 Thomas More St
London E1W 1YT
United Kingdom
THE PRINCIPAL PAYING AGENT
Trinity Tower
9 Thomas More St
London E1W 1YT
United Kingdom
THE IRISH LISTING AGENT AND IRISH PAYING AGENT
J.P. Morgan Bank (Ireland) Plc
JPMorgan House
International Financial Services Centre
Dublin 1
Ireland
THE LEAD MANAGER
London EC3V 0HR
United Kingdom
- 222 -
THE CO-MANAGER
Fortis Bank nv-sa.
Montagne du Parc 3
B-1000 Brussels
Belgium
THE ARRANGER
London EC3V 0HR
United Kingdom
- 223 -

PROSPECTUS CB MezzCAP Limited Partnership EUR 137,800,000

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