Document:

Exhibit 4.3

 

FORM OF REGISTRATION RIGHTS AGREEMENT

 

by and among

 

Cnova N.V.,

 

and

 

the SHAREHOLDERS party hereto

 

 

Dated as of            , 2014

 

 

 

Table of Contents

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
Article I Definitions
    	
1
    
	
1.1
    	
Defined Terms
    	
1
    
	
1.2
    	
Other Definitional Provisions; Interpretation
    	
4
    
	
 
    	
 
    	
 
    
	
Article II Registration   Rights
    	
5
    
	
2.1
    	
Securities Act Registration on Demand
    	
5
    
	
2.2
    	
Piggyback Registration
    	
9
    
	
2.3
    	
Expenses
    	
13
    
	
2.4
    	
Registration Procedures
    	
13
    
	
2.5
    	
Underwritten Offerings
    	
18
    
	
2.6
    	
Preparation: Reasonable Investigation
    	
19
    
	
2.7
    	
Postponements
    	
20
    
	
2.8
    	
Indemnification by the Company
    	
20
    
	
2.9
    	
Adjustments Affecting Registrable Shares
    	
23
    
	
2.10
    	
Rule 144 and Rule 144A
    	
23
    
	
2.11
    	
No Inconsistent Arrangements
    	
24
    
	
2.12
    	
Termination of Registration Rights
    	
24
    
	
 
    	
 
    	
 
    
	
Article III Miscellaneous
    	
24
    
	
3.1
    	
Amendments; Entire Agreement
    	
24
    
	
3.2
    	
Severability
    	
24
    
	
3.3
    	
Successors and Assigns; Transferee Registration Rights
    	
25
    
	
3.4
    	
No Third-Party Beneficiaries
    	
25
    
	
3.5
    	
Notices
    	
25
    
	
3.6
    	
Counterparts
    	
26
    
	
3.7
    	
Governing Law; Jurisdiction; Waiver of Jury Trial
    	
26
    

 

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (the “Agreement”), dated as of         , 2014, is by and among Cnova N.V., a public company (naamloze vennootschap) organized under the laws of the Netherlands (the “Company”), Casino Guichard-Perrachon, a company organized under the laws of France (“CGP”), Almanaces Éxito S.A., a company organized under the laws of Colombia (“Exito”) and Marneylectro B.V., a private company (besloten vennootschap) organized under the laws of the Netherlands (“Dutch BV”).

 

WHEREAS, the parties hereto desire to provide for, among other things, certain registration rights with respect to the Registrable Shares (as hereinafter defined).

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

1.1                               Defined Terms.

 

As used in this Agreement, the following capitalized terms shall have the meanings ascribed to them below:

 

“Affiliate” means any Person who is an “affiliate” of such Person as defined in Rule 12b-2 promulgated under the Exchange Act.

 

“Agreement” has the meaning set forth in the preamble of this Agreement.

 

“Blackout Period” has the meaning set forth in Section 2.7(a).

 

“Board” means the Board of Directors of the Company.

 

“Business Day” means a day other than a Saturday, Sunday or other day on which banking institutions are authorized or required by law to remain closed in the State of New York or the Netherlands.

 

“CGP” has the meaning set forth in the preamble of this Agreement.

 

“Closing Date” means          , 2014.

 

“Commission” means the U.S. Securities and Exchange Commission or any similar agency then having jurisdiction to enforce the Securities Act or the Exchange Act.

 

“Company” has the meaning set forth in the preamble of this Agreement.

 

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“Company Indemnitee” has the meaning set forth in Section 2.8.

 

“Demand Rights Shareholder” means either of CGP or Dutch BV.

 

“Designated Exchange” means NASDAQ.

 

“Dutch BV” has the meaning set forth in the preamble of this Agreement.

 

“EDGAR” has the meaning set forth in Section 2.4(c).

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, or any successor statute.

 

“Expenses” means all expenses incurred by the Company incident to the Company’s performance of, or compliance with its obligations under, this Agreement, including all registration, filing, listing, stock exchange and FINRA fees and other customary fees and expenses, but excluding underwriting discounts and commissions and applicable transfer taxes, if any, which discounts, commissions and transfer taxes shall be borne by the seller or sellers of Registrable Shares, except as otherwise provided in this Agreement.

 

“Exito” has the meaning set forth in the preamble of this Agreement.

 

“FINRA” means the Financial Industry Regulatory Authority, Inc.

 

“Customary Cooperation” means, in connection with any underwritten Public Offering, in addition to the cooperation otherwise required by this Agreement, (a) members of senior management of the Company (including the chief executive officer and the chief financial officer) shall fully cooperate with the underwriter(s) in connection therewith, and make themselves available to participate in all of the marketing processes of the underwritten Public Offering as recommended by the underwriter(s), including “road show” presentations, and (b) the Company shall prepare preliminary and final Prospectuses for use in connection with such offering containing such additional information as reasonably requested by the underwriter(s) or the Selling Shareholders (in addition to the information required by law, rule or regulation).

 

“Governmental Authority” means (a) the government of any nation, state, city, locality or other political subdivision thereof and (b) any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.

 

“IPO” means the Company’s first Public Offering.

 

“Loss” and “Losses” have the meanings set forth in Section 2.8. “Offering Documents” has the meaning set forth in Section 2.8.

 

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“Majority-Owned Subsidiary” has the meaning set forth in Rule 12b-2 promulgated under the Exchange Act.

 

“Maximum Number” has the meaning set out in Section 2.1(f).

 

“Ordinary Shares” means any ordinary shares, par value €0.05, of the Company.

 

“Other Holder” has the meaning set out in Section 2.2.

 

“Person” means any individual, corporation, company, partnership, firm, voluntary association, joint venture, trust, unincorporated organization, Governmental Authority or any other entity whether acting in an individual, fiduciary or other capacity.

 

“Piggyback Request” has the meaning set forth in Section 2.2.

 

“Piggyback Requesting Shareholder” has the meaning set forth in Section 2.2.

 

“Public Offering” means a public offering and sale of Ordinary Shares pursuant to an effective registration statement filed under the Securities Act; provided, that a Public Offering shall not include an offering made in connection with a business acquisition or combination pursuant to a registration statement on Form F-4, or any successor or similar form, or an employee benefit plan pursuant to a registration statement on Form S-8, or any successor or similar form.

 

“Registrable Shares” means, with respect to any Shareholder, any of the Ordinary Shares and any other securities issued or issuable with respect to such Ordinary Shares by way of a share dividend or bonus shares or in connection with a combination of shares, recapitalization, merger, consolidation or reorganization or resulting from a share split, (a) owned by such Shareholder as of the date hereof or (b) acquired by such Shareholder or any of its Affiliates after the date hereof if such Ordinary Shares (or other securities) were acquired by a Shareholder (or an Affiliate of such Shareholder) that was an Affiliate of the Company on the date of such acquisition; provided, however, that any Registrable Share will cease to be a Registrable Share when (i) a registration statement covering such Registrable Share has been declared effective by the SEC and such Registrable Share has been disposed of pursuant to such effective registration statement, (ii) it is sold under circumstances in which all of the applicable conditions of Rule 144 (or any similar provisions then in force) under the Securities Act are met, (iii) other than with respect to Registrable Shares held by CGP or any Subsidiary (as defined in Rule 12b-2 promulgated under the Exchange Act) thereof, it is eligible for sale under Rule 144 and such Shareholder holds less than five percent (5%) of the outstanding shares of the Company or (iv) it shall have been otherwise transferred without the rights and obligations hereunder having been assigned in connection with such transfer pursuant to Section 3.3(b); provided, further, that (x) any security that is issued, distributed or otherwise acquired in respect of a security that has ceased to be Registrable Share is not a Registrable Share and (y) neither

 

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any special voting share in the Company’s capital nor any depository receipt issued for such special voting shares shall be or become a Registrable Share.

 

“Registrable Shares Transferee” has the meaning set forth in Section 3.4.

 

“Registration Demand” has the meaning set forth in Section 2.1(a).

 

“Registration Demanding Shareholder” has the meaning set forth in Section 2.1(a).

 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, or any successor statute.

 

“Selling Shareholders” means the holders of Registrable Shares requested to be registered pursuant hereto.

 

“Shareholder” means any Demand Rights Shareholder (including, where appropriate, its Affiliates holding Registrable Shares) and Exito.

 

“Shareholder Indemnitee” has the meaning set forth in Section 2.8.

 

“Shareholder Information” has the meaning set forth in Section 2.4.

 

“Shelf Demand” has the meaning set forth in Section 2.1(g).

 

“Shelf Demanding Shareholder” has the meaning set forth in Section 2.1(g).

 

“Shelf Participating Shareholder” has the meaning set forth in Section 2.1(g).

 

“Shelf Registration Statement” has the meaning set forth in Section 2.1(g).

 

“Shelf Registration” has the meaning set forth in Section 2.1(g).

 

“Takedown Prospectus Supplement” has the meaning set forth in Section 2.1(g).

 

“Takedown Request” has the meaning set forth in Section 2.1(g).

 

“Well-Known Seasoned Issuer” has the meaning set forth in Rule 405 promulgated under the Securities Act.

 

1.2                               Other Definitional Provisions; Interpretation.

 

In this Agreement, unless the context otherwise requires:

 

(a)                                 the words “hereof”, “herein”, and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement;

 

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(b)                                 headings are for convenience only and do not affect the interpretation of this Agreement;

 

(c)                                  words importing the singular include the plural and vice versa;

 

(d)                                 a reference to an Article, party, Schedule or Section is a reference to that Article or Section of, or that party or Schedule to, this Agreement;

 

(e)                                  a reference to a document includes an amendment or supplement to, or replacement or novation of, that document but disregarding any amendment, supplement, replacement or novation made in breach of this Agreement;

 

(f)                                   whenever the words “include,” “includes” or “including” are used in this Agreement, they are deemed to be followed by the words “without limitation”; and

 

(g)                                  a reference to a party to any document includes that party’s successors and permitted assigns.

 

ARTICLE II

 

REGISTRATION RIGHTS

 

2.1                               Securities Act Registration on Demand.

 

(a)                                 Demand. At any time and from time to time following the expiration of the one-hundred eighty (180) day lock-up period following the IPO, any Demand Rights Shareholder may make a written request (the party making such a request, the “Registration Demanding Shareholder”) to the Company for the registration with the Commission under the Securities Act of all or part of such Shareholder’s Registrable Shares (a “Registration Demand”), which request shall specify the number and type of security of Registrable Shares to be disposed of by such Shareholder, their aggregate amount and the intended method or methods of distribution therefor. Upon the receipt of a Registration Demand, the Company will use its commercially reasonable efforts to file a registration statement under the Securities Act at the earliest practicable date, but in any event not later than sixty (60) days after the Registration Demand is made, and use its commercially reasonable efforts to have such registration statement thereafter become effective with the Commission at the earliest practicable date; provided that,

 

(i)                                     the Company shall not be required to effect more than two (2) Registration Demands for underwritten Public Offerings pursuant to this Section 2.1(a) during any twelve (12) month period;

 

(ii)                                  the Company shall not be required to effect any registration for an underwritten Public Offering by a Registration Demanding Shareholder pursuant to this Section 2.1 until a period of ninety (90) days shall have elapsed from the effective date of a registration statement filed in response to a Registration Demand pursuant to this Section 2.1(a), a Takedown Prospectus

 

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Supplement under Section 2.1(g) or a registration statement for an underwritten Public Offering of which notice has been given to the Shareholders pursuant to Section 2.2;

 

(iii)                               any Shareholder the Registrable Shares of which were to be included in any such registration pursuant to this Section 2.1(a) may withdraw such request by written notice to the Company; provided that if, following such withdrawal, the remaining Registrable Shares of Shareholders, if any, that have not been withdrawn are reasonably expected to represent at least that percentage of the Ordinary Shares then outstanding set forth in clause (iv) below, the Company shall not be required to effect such registration;

 

(iv)                              the Company shall not be required to effect any registration to be effected pursuant to this Section 2.1(a) unless the Registrable Shares proposed to be sold in such registration are reasonably expected to represent at least five percent (5%) of the Ordinary Shares then outstanding; and

 

(v)                                 if at the time a demand for registration is made under this Section 2.1(a), there is a Form F-3, or any successor or similar form thereto, on file pursuant to which the Registration Demanding Shareholder shall be entitled to dispose of all its Registrable Shares that it has requested to register, then the Company’s obligation to file a registration statement under this Section 2.1 shall be deemed satisfied.

 

(b)                                 Registration of Other Securities. Whenever the Company shall effect a registration pursuant to Section 2.1 hereof, no securities other than (i) Registrable Shares and (ii) subject to Section 2.1(f) hereof, Ordinary Shares to be sold by the Company for its own account, shall be included among the securities covered by such registration unless the Selling Shareholders holding not less than a majority of the Registrable Shares to be covered by such registration shall have consented in writing to the inclusion of such other securities.

 

(c)                                  Registration Statement Form. Registrations under Section 2.1 hereof shall be on Form F-1 or, if permitted by law, Form F-3 (or, in either case, any successor or similar form thereto) and shall permit the disposition of the Registrable Shares pursuant to an underwritten Public Offering unless the Registration Demanding Shareholder(s) determine otherwise, in which case pursuant to the method of disposition determined by such Registration Demanding Shareholder(s).

 

(d)                                 Effective Registration Statement. A registration requested pursuant to Section 2.1(a) or Section 2.1(g) shall not be deemed to have been effected:

 

(i)                                     unless a registration statement with respect thereto has become, and remains, effective in compliance with the provisions of the Securities Act and the laws of any state or other jurisdiction applicable to the disposition of Registrable Shares covered by such registration statement until such time as all of such Registrable Shares have been disposed of in accordance with

 

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such registration statement or there shall cease to be any Registrable Shares covered by such registration statement; provided, however, that such period shall not exceed one-hundred eighty (180) days;

 

(ii)                                  if, after it has become effective, such registration is subject to any stop order, injunction or other order or requirement of the Commission or other Governmental Authority for any reason other than a violation of applicable law solely by any Selling Shareholder and has not thereafter become effective, or in the case of a Form F-3, the Company ceases to be eligible to use such form; or

 

(iii)                               if, in the case of an underwritten Public Offering, the conditions to closing specified in an underwriting agreement to which the Company is a party are not satisfied or waived, other than by reason of any breach or failure by, or caused by, any Selling Shareholder.

 

(e)                                  Selection of Underwriters. The Registration Demanding Shareholder shall have the right to select the underwriter(s) to administer the offering, provided that such underwriter(s) shall be nationally recognized investment banking firms reasonably acceptable to the Company. If the offering is underwritten, the Registration Demanding Shareholder (together with the Company) will enter into an underwriting agreement in customary form with the underwriter or underwriters for such underwriting.

 

(f)                                   Priority in Requested Registration. If a registration under this Section 2.1 involves an underwritten Public Offering, and the managing underwriter of such underwritten Public Offering shall advise the Company in good faith and in writing (with a copy to the Registration Demanding Shareholders) that the number of Registrable Shares sought to be registered by the Shareholders is reasonably expected to adversely affect the price or success of the offering, the Company shall include in such registration statement such number of Ordinary Shares as the Company is advised can be sold in such offering without such an effect (the “Maximum Number”) as follows and in the following order of priority: (i) first, all of the Registrable Shares being sold for the accounts of any Registration Demanding Shareholder and any Piggyback Requesting Shareholder, pro rata among such Shareholders based on the number of Registrable Shares requested to be included in such registration by such Shareholders, and (ii) second, to the extent that the number of Registrable Shares to be included in in the registration pursuant to clause (i) is less than the Maximum Number, such number of Ordinary Shares, if any, as the Company proposes to sell for its own account and as any Other Holder proposes to sell, pro rata among the Company and such Other Holders based on the number of Registrable Shares proposed to be included by the Company and requested to be included by such Other Holder.

 

(g)                                  Shelf Registration.

 

(i)                                     From and after such time as the Company first becomes eligible to register securities on a Form F-3, or any successor or similar form, any Demand Rights Shareholder may make a written request (a “Shelf Demand”) that

 

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the Company file a shelf registration statement (a “Shelf Registration Statement”) pursuant to Rule 415 promulgated under the Securities Act (a “Shelf Registration”) and undertake any related qualification or compliance, with respect to all or part of the Registrable Shares owned by such Shareholder (a “Shelf Demanding Shareholder”). The Company shall (i) promptly, and in any event within ten (10) days of its receipt of a Shelf Demand, give written notice of the proposed registration, and any related qualification or compliance, to all other holders of Registrable Shares to the extent that the addresses of those Shareholders are known to the Company (the “Shelf Notice”), and (ii) as soon as practicable, use its commercially reasonable efforts to file such Shelf Registration Statement under the Securities Act at the earliest practicable date, but in any event not later than forty (40) days after receipt of the Shelf Demand, and use its commercially reasonable efforts to have such Shelf Registration Statement thereafter become effective with the Commission at the earliest practicable date and to effect, at the earliest practicable date, such registration under the Securities Act of (x) the Registrable Shares that the Company has been so requested to register by the Shelf Demanding Shareholder and (y) all other Registrable Shares that the Company has been so requested to register by written request of a Shareholder (a “Shelf Participating Shareholder”) given to the Company within ten (10) days after such Shareholder’s receipt of the Shelf Notice. Each Shelf Demanding Shareholder and Shelf Participating Shareholder shall be permitted to request that the Company register an undetermined amount of Registrable Shares if the Company is, or will be at the time of filing, a Well-Known Seasoned Issuer entitled to file an automatically effective Shelf Registration Statement. The Company agrees to use its commercially reasonable efforts to keep the Shelf Registration Statement continuously effective, including by renewing or re-filing upon expiration, for the period beginning on the date on which the Shelf Registration Statement becomes effective under the Securities Act until the earlier to occur of (A) the day after the date on which all of the Registrable Shares covered by the Shelf Registration Statement have been sold pursuant to the Shelf Registration Statement or another registration statement and (B) the first date on which there shall cease to be any Registrable Shares covered by such Shelf Registration Statement. The Company further agrees, if necessary, to supplement or amend the Shelf Registration Statement, if required by the rules and regulations of the Commission or instructions applicable to the registration form used by the Company for such Shelf Registration or by the Securities Act or by any other rules and regulations thereunder for Shelf Registration, and the Company agrees to furnish to the Shareholders whose Registrable Shares are included in such Shelf Registration Statement copies of any such supplement or amendment promptly after its being issued or filed with the Commission. No registration requested by any Shareholder pursuant to this Section 2.1(g) shall be deemed a Registration Demand. A Shareholder that receives a Shelf Notice shall not make a Shelf Demand within three-hundred sixty (360) days of receipt of such Shelf Notice. If at the time a request for a Shelf Registration is made under this Section 2.1(g), there is a Form F-3 on file pursuant to which the requesting Shareholder shall be entitled to dispose of all its Registrable Shares that it has requested to register,

 

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then the Company’s obligation to file a registration statement under this Section 2.1(g) shall be deemed satisfied. Notwithstanding anything to the contrary herein, at any time that a Shelf Registration Statement registering Registrable Shares of a Shareholder shall be effective, such Shareholder shall be permitted to effect an unlimited number of non-underwritten offerings or shelf-take-downs of Registrable Shares off the Shelf Registration Statement (which may be underwritten Public Offerings), including any underwritten “block trades” without notice to or inclusion of any other Shareholder’s Registrable Shares, it being understood that the Company’s obligations in Section 2.1 shall in no way be reduced in such case.

 

(ii)                                  At any time after the effectiveness of a Shelf Registration Statement, the Company shall, as promptly as reasonably practicable following the written request of a Shelf Demanding Shareholder or Shelf Participating Shareholder for a resale of Registrable Shares (a “Takedown Request”), file a prospectus supplement (a “Takedown Prospectus Supplement”) to such Shelf Registration Statement with respect to resales of the Registrable Shares pursuant to the Shareholder’s intended method of distribution thereof; provided, however, that if the Shelf Registration Statement is not an automatically effective Shelf Registration Statement that registered an undetermined number of Registrable Shares, only the Shelf Demanding Shareholder or a Shelf Participating Shareholder shall be entitled to submit a Takedown Request. Each Takedown Request shall specify the Registrable Shares to be registered, their aggregate amount and the intended method or methods of distribution thereof. The Shareholders agree to provide the Company with such information in connection with a Takedown Request as may be reasonably requested by the Company to ensure that the Takedown Prospectus complies with the requirements of the Securities Act.

 

(h)                                 Affiliates. To the extent that a Registration Demand or a Shelf Demand relates to Registrable Shares held by an Affiliate of a Shareholder that is not a party to this Agreement, (i) such Affiliate shall comply with all obligations of such Shareholder under this Agreement as if it were a party hereto and (ii) such Shareholder shall be liable for any breach of this Agreement by such Affiliate.

 

2.2                               Piggyback Registration.

 

(a)                                 Piggyback Registration Rights.  Other than in connection with a registration on Form S-8 or F-4, or any successor or similar form, relating to Ordinary Shares issuable upon exercise of employee stock options or in connection with any employee benefit or similar plan of the Company or in connection with a direct or indirect or indirect acquisition by the Company of another Person, if at any time following the IPO the Company, including if the Company qualifies as a Well-Known Seasoned Issuer, proposes to file (i) a prospectus supplement to an effective Shelf Registration Statement (other than pursuant to a Takedown Request), or (ii) a registration statement other than a Shelf Registration Statement for a delayed or continuous offering pursuant to Rule 415 under the Securities Act, in either case, for the sale of Ordinary

 

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Shares for its own account, or for the benefit of the holders of any of its securities other than the Shareholders, to an underwriter on a firm commitment basis for reoffering to the public or in a “bought deal” or “registered direct offering” with one or more investment banks (collectively, a “Piggyback Underwritten Offering”), then as soon as practicable but not less than fourteen (14) days prior to the filing of (a) any preliminary prospectus supplement relating to such Piggyback Underwritten Offering pursuant to Rule 424(b) under the Securities Act, (b) any prospectus supplement relating to such Piggyback Underwritten Offering pursuant to Rule 424(b) under the Securities Act (if no preliminary prospectus supplement is used) or (c) such Shelf Registration Statement, as the case may be, the Company shall give notice of such proposed Piggyback Underwritten Offering to the Shareholders and such notice (a “Piggyback Notice”) shall offer the Shareholders the opportunity to include in such Piggyback Underwritten Offering such number of Registrable Shares as each such Shareholder may request in writing. Each such Shareholder shall then have ten (10) days after receiving such notice to request in writing to the Company inclusion of Registrable Shares in the Piggyback Underwritten Offering (a “Piggyback Request”), except that such Shareholder shall have two (2) Business Days after such Shareholder receives such Piggyback Notice to request inclusion of Registrable Shares in the Piggy Back Underwritten Offering in the case of a “bought deal”, “registered direct offering” or “overnight transaction” where no preliminary prospectus is used.  Upon receipt of any such request for inclusion from a Shareholder (a “Piggyback Requesting Shareholder”) received within the specified time period, the Company shall use commercially reasonable efforts to effect the registration in any registration statement of any of the Shareholders’ Registrable Shares requested to be included on the terms set forth in this Agreement.

 

(b)                                 If the Company does not qualify as a Well-Known Seasoned Issuer, (i) the Company shall give each Shareholder fourteen (14) days’ notice prior to filing a Shelf Registration Statement (other than in connection with a Shelf Request) and, upon the written request of any Shareholder, received by the Company within ten (10) days of such notice to such Shareholder, the Company shall include in such Shelf Registration Statement a number of Registrable Shares equal to the aggregate number of Registrable Shares requested to be included without naming any requesting Shareholder as a selling shareholder and including only a generic description of the holder of such securities (the “Undesignated Registrable Shares”), (ii) the Company shall not be required to give notice to any Shareholder in connection with a filing pursuant to Section 2.2(a) unless such Shareholder provided such notice to the Company pursuant to this Section 2.2(b) and included Undesignated Registrable Shares in the Shelf Registration Statement related to such filing, and (iii) at the written request of a Shareholder given to the Company more than seven (7) days before the date specified in writing by the Company as the Company’s good faith estimate of a launch of a Piggyback Underwritten Offering (or such shorter period to which the Company in its sole discretion consents), the Company shall use commercially reasonable efforts to effect the registration of any of the Shareholder’s Undesignated Registrable Shares so requested to be included and shall file a post-effective amendment or, if available, a prospectus supplement to a Shelf Registration Statement to include such Undesignated Registrable Shares as any Shareholder may request, provided that (a) the Company is actively employing its reasonable best efforts to effect such Piggyback Underwritten Offering; and (b) the

 

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Company shall not be required to effect a post-effective amendment more than two (2) times in any twelve (12) month period.

 

(c)                                  Piggyback Offering Procedures. In connection with any registration or offering pursuant to this Section 2.2:

 

(i)                                     prior to the pricing of a Piggyback Underwritten Offering, the managing underwriter shall notify the Company and the Piggyback Requesting Shareholders of the price range within which the Ordinary Shares are proposed to be sold, if applicable;

 

(ii)                                  if at any time after giving written notice of its intention to register any Ordinary Shares for its own account and prior to the effective date of the registration statement filed in connection with such registration, the Company shall determine for any reason not to register or to delay registration of such securities, the Company may, at its election, give written notice of such determination to each Piggyback Requesting Shareholder and (x) in the case of a determination not to register, shall be relieved of its obligation to register any Registrable Shares to which the relevant Piggyback Requests relate in connection with such registration (but not from any obligation of the Company to pay the Expenses in connection therewith), without prejudice, however, to the rights of any Shareholder to include such Registrable Shares in any future registration (or registrations) pursuant to this Section 2.2 or, if it concerns a Demand Rights Shareholder, to cause such registration to be effected as a registration under Sections 2.1(a) or 2.1(g) hereof, as the case may be, and (y) in the case of a determination to delay registering, shall be permitted to delay registering any Registrable Shares to which the relevant Piggyback Requests relate, for the same period as the delay in registering such other Ordinary Shares; and

 

(iii)                               if such registration involves a Piggyback Underwritten Offering, (x) and such Piggyback Underwritten Offering was initiated by the Company for its own account, each Piggyback Requesting Shareholder shall sell its Registrable Shares on the same terms and conditions as those that apply to the Company, and (y) the underwriter(s) of each such Piggyback Underwritten Offering shall be a nationally recognized investment banking firm(s) selected by the Company.

 

(d)                                 No Limitation on Other Registration Rights. No registration effected under this Section 2.2 shall relieve the Company of its obligation to effect any registration upon request under Sections 2.1(a) or 2.1(g) hereof and no registration effected pursuant to this Section 2.2 shall be deemed to have been effected pursuant to Sections 2.1(a) or 2.1(g) hereof.

 

(e)                                  Priority in Piggyback Offerings.

 

(i)                                     In connection with a Piggyback Underwritten Offering, if the managing underwriter of such Piggyback Underwritten Offering shall advise

 

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the Company in good faith and in writing (with a copy to the Piggyback Requesting Shareholders) that the inclusion of some or all of the Ordinary Shares sought to be registered by the Company, a Piggyback Requesting Shareholder, and any other holder of Ordinary Shares (other than a Shareholder) with piggyback registration rights similar to those provided under this agreement (an “Other Holder”) exercising such piggyback registration rights is reasonably expected to adversely affect the price or success of the offering, the Company shall include in such registration statement the Maximum Number of Ordinary Shares in the following order of priority: (i) first, Ordinary Shares that the Company proposes to issue and sell for its own account, (ii) second, to the extent that the number of Ordinary Shares to be included in the registration pursuant to clause (i) is less than the Maximum Number, the Registrable Shares requested to be included in such registration by Piggyback Requesting Shareholders, pro rata among the Piggyback Requesting Shareholders based on the number of Registrable Shares requested to be included in such Registration, and (iii) third, to the extent that the number of Ordinary Shares to be included in the registration pursuant to clauses (i) and (ii) is less than the Maximum Number, the other Oridnary Shares requested to be included in such registration by Other Holders.

 

(ii)                                  If the Company proposes to register any of its Ordinary Shares under the Securities Act pursuant to the registration rights of any Other Holder, any Shareholder makes a Piggyback Request pursuant to this Section 2.2 and such Ordinary Shares are to be distributed by or through one or more underwriters, and if the managing underwriter of such underwritten Public Offering shall advise the Company in good faith and in writing (with a copy to the Piggyback Requesting Shareholders) that the inclusion of some or all of the Ordinary Shares sought to be registered by the Company, a Shareholder, or any Other Holder would adversely affect the price or success of the offering, the Company shall include in such registration statement the Maximum Number of Ordinary Shares in the following order of priority: (i) first, such number of Ordinary Shares as the Other Holders and the Piggyback Requesting Shareholders propose to be included in such registration, pro rata among the Other Holders and Piggyback Requesting Shareholders based on the number of Ordinary Shares requested to be included in such Registration, and (ii) second, to the extent that the number of Ordinary Shares to be included in the registration pursuant to clause (i) is less than the Maximum Number, Ordinary Shares that the Company proposes to issue and sell for its own account.

 

(f)                                   Piggyback Rights; Withdrawal.  Any Piggyback Requesting Shareholder shall have the right, exercisable in its sole discretion, irrevocably to withdraw its Piggyback Request or any portion of its Registrable Shares included therein by delivery of written notice of such withdrawal to the Company within:

 

(i)                                     Two (2) days of its being advised of the proposed price range pursuant to Section 2.2(c)(i) hereof, without prejudice to the rights of such Piggyback Requesting Shareholder to include Registrable Shares in any future

 

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registration pursuant to this Section 2.2 or to cause such registration to be effected as a registration under Sections 2.1(a) or 2.1(g) hereof, as the case may be;

 

(ii)                                  Five (5) days after receipt of a copy of a notice from the managing underwriter pursuant to Section 2.2(e).

 

(g)                                  Affiliates. To the extent that a Registration Demand or a Shelf Demand relates to Registrable Shares held by an Affiliate of a Shareholder that is not a party to this Agreement, (i) such Affiliate shall comply with all obligations of such Shareholder under this Agreement as if it were a party hereto and (ii) such Shareholder shall be liable for any breach of this Agreement by such Affiliate.

 

2.3                               Expenses.

 

Except as otherwise provided herein, the Company shall pay all Expenses in connection with any registration initiated pursuant to Sections 2.1(a), 2.1(g) or 2.2 hereof, whether or not such registration shall become effective and whether or not all or any portion of the Registrable Shares originally requested to be included in such registration are ultimately included in such registration.

 

2.4                               Registration Procedures.

 

If and whenever the Company is required to effect any registration under the Securities Act as provided in Sections 2.1(a), 2.1(g) or 2.2 hereof, the Company shall, as expeditiously as possible:

 

(a)                                 prepare and file with the Commission within the time periods set forth herein the requisite registration statement to effect such registration, which registration statement shall comply as to form in all material respects with the requirements of the applicable form and include all financial statements required by such form to be filed therewith, and thereafter use its commercially reasonable efforts to cause such registration statement to become as soon as reasonably possible and remain effective; provided, however, that the Company may discontinue any registration of its securities that are not Registrable Shares (and, under the circumstances specified in Sections 2.2(a)(ii) or 2.7(b) hereof, its securities that are Registrable Shares) at any time prior to the effective date of the registration statement relating thereto;

 

(b)                                 prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus, including any free writing prospectus as defined in Rule 405 under the Securities Act, as may be necessary to keep such registration statement effective and to comply with the provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Shares covered by such registration statement until such time as all of such Registrable Shares have been disposed of in accordance with the method of disposition set forth in such registration statement; provided, however, that with respect to each free writing prospectus or other materials to be delivered to purchasers at the time of sale of the Registrable Shares, the Company

 

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shall (i) ensure that no Registrable Shares be sold “by means of” (as defined in Rule 159A(b) under the Securities Act) such free writing prospectus or other materials without the prior written consent of the sellers of the Registrable Shares covered by such registration statement, which free writing prospectus or other materials shall be subject to the review of counsel to such sellers, and (ii) make all required filings of all free writing prospectuses or other materials with the Commission as are required;

 

(c)                                  furnish to each seller of Registrable Shares covered by such registration statement and each underwriter, if any, such number of copies of such drafts and final conformed versions of such registration statement and of each such amendment and supplement thereto (in each case including all exhibits and any documents incorporated by reference, except to the extent such exhibits and documents are currently available via the Commission’s Electronic Data Gathering, Analysis and Retrieval System (“EDGAR”)), such number of copies of such drafts and final versions of the prospectus contained in such registration statement (including each preliminary prospectus and any summary prospectus) and any other prospectus filed under Rule 424 under the Securities Act, in conformity with the requirements of the Securities Act, and such other documents, as any Selling Shareholder or any underwriter may reasonably request in writing (which, in the case of draft registration statements and prospectuses, shall be furnished at least five (5) days prior to filing, and which shall be subject to the reasonable review and comment of each seller of Registrable Shares);

 

(d)                                 use its commercially reasonable efforts (i) to register or qualify all Registrable Shares and other securities, if any, covered by such registration statement under such other securities or blue sky laws of such states or other jurisdictions of the United States of America as the sellers of Registrable Shares covered by such registration statement shall reasonably request in writing, (ii) to keep such registration or qualification in effect for so long as such registration statement remains in effect and (iii) to take any other action that may be necessary or reasonably advisable to enable such sellers to consummate the disposition in such jurisdictions of the Registrable Shares to be sold by such sellers, except that the Company shall not for any such purpose be required to qualify generally to do business as a foreign corporation in any jurisdiction wherein it would not but for the requirements of this subsection (d) be obligated to be so qualified, to subject itself to taxation in such jurisdiction or to consent to general service of process in any such jurisdiction;

 

(e)                                  use its commercially reasonable efforts to cause all Registrable Shares and other securities, if any, covered by such registration statement to be registered with or approved by such other Governmental Authorities as may be necessary in the opinion of counsel to the Company and counsel to the seller or sellers of Registrable Shares to enable the seller or sellers thereof to consummate the disposition of such Registrable Shares;

 

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(f)                                   use its commercially reasonable efforts to obtain and furnish to each Selling Shareholder, and each underwriter, if any, a signed (i) opinion of counsel for the Company and addressed to the underwriters, reasonably satisfactory (based on the customary form and substance of opinions of issuers’ counsel customarily given in such an offering, including a negative assurance letter) in form and substance to the managing underwriters, and (ii) comfort letter, dated the effective date of such registration statement and dated the date of the closing under the underwriting agreement and, in each case, addressed to the underwriters and signed by the independent registered public accounting firm that certified the Company’s financial statements included or incorporated by reference in such registration statement, reasonably satisfactory (based on the customary form and substance of comfort letters of issuers’ independent registered public accounting firm customarily given in such an offering) in form and substance to the managing underwriter(s), in each case of clauses (i) and (ii), covering substantially the same matters with respect to such registration statement (and the prospectus included therein) and, in the case of the independent registered public accounting firm’s comfort letter, with respect to events subsequent to the date of such financial statements, as are customarily covered in opinions of issuer’s counsel and in the independent registered public accounting firm’s comfort letters delivered to underwriters in underwritten Public Offerings of securities;

 

(g)                                  use its commercially reasonable efforts to deliver promptly to participating Shareholders and the managing underwriters, if any, copies of all correspondence between the Commission and the Company, its counsel or its auditors, and all memoranda relating to discussions with the Commission or its staff with respect to the registration statement (except to the extent such correspondence is currently available via EDGAR) and permit those Shareholders to do such investigation with respect to information contained in or omitted from the registration statement as they deem reasonably necessary for the purpose of conducting due diligence with respect to the Company; provided that any such investigation shall not interfere unreasonably with the Company’s business;

 

(h)                                 notify each Selling Shareholder, managing underwriter(s) and other holders of securities covered by such registration statement, if any, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, upon discovery that, or upon the happening of any event as a result of which, the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances under which they were made, and, at the written request of any such seller of Registrable Shares, promptly prepare and furnish to it a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such securities, such prospectus, as supplemented or amended, shall not include an untrue statement of a material fact or omit to state a material fact

 

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required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances under which they were made;

 

(i)                                     use its commercially reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of a registration statement relating to the Registrable Shares at the earliest possible moment;

 

(j)                                    otherwise comply with all applicable rules and regulations of the Commission and any other Governmental Authority having jurisdiction over the offering, and make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve (12) months, but not more than eighteen (18) months, beginning with the first full calendar month after the effective date of such registration statement, which earning statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 promulgated thereunder;

 

(k)                                 use its commercially reasonable efforts to cause all Registrable Shares covered by a registration statement to be listed on the Designated Exchange, if the listing of such Registrable Shares is then permitted under the rules of such exchange, or another national securities exchange if the listing is not then permitted;

 

(l)                                     provide a transfer agent and registrar for the Registrable Shares covered by a registration statement no later than the effective date thereof;

 

(m)                             enter into such agreements (including an underwriting agreement in customary form) and take such other actions as the Selling Shareholder or Selling Shareholders, as the case may be, owning at least a majority of the Registrable Shares covered by such registration statement shall reasonably request in order to expedite or facilitate the disposition of such Registrable Shares, including customary indemnification and contribution to the effect and to the extent provided in Section 2.8 hereof;

 

(n)                                 if requested by the managing underwriter(s) or the Selling Shareholder or Selling Shareholders, as the case may be, owning at least a majority of the Registrable Shares being sold in connection with an underwritten Public Offering, promptly incorporate in a prospectus supplement or post-effective amendment such information as the managing underwriter(s) and the any such Selling Shareholders of a majority of the Registrable Shares being sold reasonably request to be included therein relating to the plan of distribution with respect to such Registrable Shares, including without limitation, information with respect to the number of Registrable Shares being sold to such underwriters, the purchase price being paid therefore by such underwriters and with respect to any other terms of the underwritten Public Offering of the Registrable Shares to be sold in such offering; and make all required filings of such prospectus supplement or post-effective amendment as soon as possible after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment;

 

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(o)                                 enable such Registrable Shares to be in such share amounts and registered in such names as the managing underwriter(s) or, if none, the Selling Shareholders holding a majority of the Registrable Shares being sold, may request at least three (3) Business Days prior to any sale of Registrable Shares to the underwriters, subject to the mandatory provisions of Dutch law and the Company’s articles of association; and

 

(p)                                 if the registration shall be for an underwritten Public Offering, cause management of the Company to provide Customary Cooperation, if so requested by the Selling Shareholder or Selling Shareholders, as the case may be, owning at least a majority of the Registrable Shares being sold.

 

As a condition to the obligations of the Company to complete any registration pursuant to this Agreement with respect to the Registrable Shares of a Shareholder, such Shareholder must furnish to the Company in writing such information (the “Shareholder Information”) regarding itself, the Registrable Shares held by it and the intended methods of disposition of the Registrable Shares held by it as is necessary to effect the registration of such Shareholder’s Registrable Shares and is requested in writing by the Company. The Shareholder shall promptly notify the Company of any inaccuracy or change in information previously furnished by the Shareholder to the Company or of the occurrence of any event, in either case as a result of which any prospectus relating to the Registrable Shares contains or would contain an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and promptly furnish to the Company any additional information required to correct and update any previously furnished information or required so that such prospectus shall not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

Each Shareholder agrees that as of the date that a final prospectus is made available to it for distribution to prospective purchasers of Registrable Shares, it shall cease to distribute copies of any preliminary prospectus prepared in connection with the offer and sale of such Registrable Shares. Each Shareholder further agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in subsection (h) of this Section 2.4, such Shareholder shall forthwith discontinue such Shareholder’s disposition of Registrable Shares pursuant to the registration statement relating to such Registrable Shares until such Shareholder’s receipt of the copies of the supplemented or amended prospectus contemplated by subsection (h) of this Section 2.4 and, if so directed by the Company, shall deliver to the Company (at the Company’s expense) all copies, other than permanent file copies, then in such Shareholder’s possession of the prospectus relating to such Registrable Shares current at the time of receipt of such notice. If any event of the kind described in subsection (h) of this Section 2.4 occurs and such event is the fault solely of the Shareholder(s) due to the inaccuracy of the Shareholder Information provided by such Shareholder(s) for inclusion in the registration statement, such Shareholder(s) shall pay all Expenses attributable to

 

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the preparation, filing and delivery of any supplemented or amended prospectus contemplated by subsection (h) of this Section 2.4.

 

2.5                               Underwritten Offerings.

 

(a)                                 Underwritten Offerings. If requested by the underwriters in connection with a request for a registration under Sections 2.1 or 2.3 hereof that is an underwritten Public Offering, the Company and the Selling Shareholders shall enter into an underwriting agreement with such underwriters for such offering, such agreement to be reasonably satisfactory in substance and form to the Company and the Selling Shareholders owning at least a majority of the Registrable Shares that are included in such registration and to contain such representations and warranties by the Company and the Selling Shareholders and such other terms as are customary in agreements of that type.

 

(b)                                 Shareholders to be Parties to Underwriting Agreement. The holders of Registrable Shares to be distributed by underwriters in an underwritten Public Offering under this Section 2.5 shall be parties to the underwriting agreement between the Company and such underwriters. No such Shareholder shall be required to make any representations or warranties to or agreements with the Company or the underwriters other than representations, warranties or agreements regarding such Shareholder, such Shareholder’s Registrable Shares and such Shareholder’s intended method of distribution.

 

(c)                                  Holdback Agreements. Each Shareholder (so long as such Shareholder holds any Registrable Securities) agrees, unless otherwise agreed to by the managing underwriter for any underwritten Public Offering pursuant to this Agreement, not to effect any sale or distribution of any equity securities of the Company or securities convertible into or exchangeable or exercisable for equity securities of the Company, including any sale under Rule 144 under the Securities Act, during the ten (10) days prior to the date on which an underwritten registration of Registrable Shares pursuant to Sections 2.1 or 2.2 hereof has become effective and for the same period of time after the effective date of such underwritten registration as is agreed to by the Shareholders participating in such underwritten registration, except as part of such underwritten registration or to the extent that such Shareholder is prohibited by applicable law from agreeing to withhold securities from sale.

 

The Company agrees not to effect any Public Offering or distribution of any equity securities of the Company, or securities convertible into or exchangeable or exercisable for equity securities of the Company, during the ten (10) days prior to the date on which any underwritten registration pursuant to Sections 2.1 or 2.2 hereof (other than Section 2.1(g)) has become effective and until ninety (90) days (180 days with respect to the IPO) after the effective date of such underwritten registration, except (i) as part of such underwritten registration, (ii) pursuant to a registration statement on Form S-8 or Form S-4 under the Securities Act or any successor or similar form, (iii) if such Public Offering or distribution was publicly announced or agreed to in writing by the Company prior to the date of the receipt of the Registration Demand or Piggyback Request or (iv) in connection with an agreement with any holder or prospective holder of

 

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any securities of the Company related to the filing of a resale shelf registration statement to register shares issued to such holder or prospective holder in an acquisition, if and only if such resale shelf registration statement does not contemplate or permit underwritten offerings.

 

2.6                               Preparation: Reasonable Investigation.

 

(a)                                 Registration Statements. In connection with the preparation and filing of each registration statement under the Securities Act pursuant to this Agreement, the Company shall (i) give representatives (designated to the Company in writing) of each Selling Shareholder, the underwriters, if any, and one firm of counsel, one firm of accountants and one firm of other agents retained on behalf of all underwriters and one firm of counsel, one firm of accountants and one firm of other agents retained on behalf of the Selling Shareholders (as a group), the reasonable opportunity to participate in the preparation of such registration statement, each prospectus included therein or filed with the Commission, and each amendment thereof or supplement thereto, (ii) upon reasonable advance notice to the Company, give each of them such reasonable access to all financial and other records, corporate documents and properties of the Company and its Majority-Owned Subsidiaries, as shall be necessary, in the reasonable opinion of such Shareholders’ and such underwriters’ counsel, to conduct a reasonable due diligence investigation for purposes of the Securities Act, and (iii) upon reasonable advance notice to the Company, give each of them the opportunity to receive relevant information regarding the business of the Company from its officers, directors, employees and the independent public accounting firm that certified its financial statements as shall be necessary, in the reasonable opinion of such Shareholders’ and such underwriters’ counsel, to conduct a reasonable due diligence investigation for purposes of the Securities Act.

 

(b)                                 Confidentiality. Each Shareholder shall maintain the confidentiality of any confidential information received from or otherwise made available by the Company to such Shareholder. Information that (i) is or becomes available to a Shareholder from a public source other than as a result of a disclosure by such Shareholder or any of its Affiliates, (ii) is disclosed to a Shareholder by a third-party source who the Shareholder reasonably believes is not bound by an obligation of confidentiality to the Company, (iii) is or becomes required to be disclosed by a Shareholder by law, including by court order, or to a prospective transferee of Ordinary Shares, or (iv) is independently developed by a Shareholder, shall not be deemed to be “confidential information” for purposes of this Agreement. The Shareholder shall not grant access, and the Company shall not be required to grant access, to information under this Section 2.6 to any Person who has not agreed to maintain the confidentiality (to the same extent a Shareholder is required to maintain confidentiality) of any confidential information received from or otherwise made available to it by the Company or the Shareholder under this Agreement.

 

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2.7                               Postponements.

 

(a)                                 The Company shall not be obligated to file any registration statement, or file any amendment or supplement to any registration statement, and may suspend any Selling Shareholder’s rights to make sales pursuant to any effective registration statement for reasonable periods not in excess of ninety (90) days, but in no event more than twice in any twelve (12) month period (a “Blackout Period”), if the Company, in the good faith judgment of the Board, reasonably believes that the filing thereof at the time requested, or the offering of securities pursuant thereto, would materially adversely affect a pending or proposed Public Offering of the Company’s securities, a material financing, or a material acquisition, merger, recapitalization, consolidation, reorganization or similar transaction, or negotiations, discussions or pending proposals with respect thereto, or otherwise have a material adverse effect on the Company; provided that in the event the Company proposes to register Ordinary Shares, whether or not for sale for its own account, during a Blackout Period, the Shareholders shall have the right to make Piggyback Requests with respect to such registration pursuant to Section 2.2 hereof. The filing of a registration statement, or any amendment or supplement thereto, by the Company cannot be deferred, and a Selling Shareholder’s rights to make sales pursuant to an effective registration statement cannot be suspended, pursuant to the provisions of the preceding sentence for more than ten (10) days after the abandonment or consummation of any of the foregoing proposals or transactions or for more than sixty (60) days after the date of the Board’s determination referenced in the preceding sentence. If the Company suspends the Selling Shareholders’ rights to make sales pursuant hereto, the applicable registration period shall be extended by the number of days of such suspension.

 

2.8                               Indemnification by the Company.

 

(a)                                 In connection with any registration statement filed by the Company pursuant to Sections 2.1 or 2.2 hereof, to the fullest extent permitted by law the Company shall, and hereby agrees to, indemnify and hold harmless, each Shareholder and seller of any Registrable Shares and its Affiliates, including such Affiliate’s directors, officers, employees, agents, partners, shareholders, and each other Person, if any, who controls (within the meaning of the Exchange Act) such Affiliate, covered by such registration statement and each other Person who participates as an underwriter in the offering or sale of such securities and each other Person, if any, who controls (within the meaning of the Exchange Act) such Shareholder or seller or any such underwriter, and their respective shareholders, members, directors, officers, employees, partners, agents and Affiliates (each, a “Company Indemnitee”), against any losses, claims, damages, liabilities (or actions or proceedings, whether commenced or threatened, in respect thereof and whether or not such indemnified party is a party thereto), joint or several, and expenses, including the reasonable fees, disbursements and other charges of legal counsel and reasonable costs of investigation, to which such Company Indemnitee may become subject under the Securities Act or otherwise as a result of the performance of the acts described in this agreement (collectively, a “Loss” or “Losses”), insofar as such Losses arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in any registration statement under which such securities were

 

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registered or otherwise offered or sold under the Securities Act or otherwise, any preliminary prospectus, final prospectus or summary prospectus related thereto, or any amendment or supplement thereto, and free writing prospectus or other offering materials (collectively, “Offering Documents”), or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein in the light of the circumstances in which they were made not misleading, or any violation by the Company of any federal or state law, rule or regulation applicable to the Company and relating to action required of, or inaction by, the Company in connection with any such registration; provided that, the Company shall not be liable in any such case to the extent that any such Loss arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such Offering Documents in reliance upon and in conformity with information furnished to the Company in a writing duly executed by such Company Indemnitee specifically stating that it is for use therein; and provided, further, that the Company shall not be liable to any Person who participates as an underwriter in the offering or sale of Registrable Shares or any other person, if any, who controls (within the meaning of the Exchange Act) such underwriter, in any such case to the extent that any such Loss arises out of such Person’s failure to send or give a copy of the final prospectus (including any documents incorporated by reference therein), as the same may be then supplemented or amended, to the Person asserting an untrue statement or alleged untrue statement or omission or alleged omission at or prior to the written confirmation of the sale of Registrable Shares to such Person if such statement or omission was corrected in such final prospectus. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Company Indemnitee and shall survive the transfer of such securities by such Company Indemnitee.

 

(b)                                 Indemnification by the Offerors and Sellers. In connection with any registration statement filed by the Company pursuant to Sections 2.1 or 2.2 hereof in which a Shareholder has registered for sale Registrable Shares, each such Shareholder or seller of Registrable Shares shall, and hereby agrees to, indemnify and hold harmless to the fullest extent permitted by law the Company and each of its directors, officers, employees, agents, partners, shareholders, Affiliates and each other Person, if any, who controls (within the meaning of the Exchange Act) the Company and each other seller and such seller’s employees, directors, officers, shareholders, members, partners, agents and Affiliates (each, a “Shareholder Indemnitee” for purposes of this Section 2.8), against all Losses insofar as such Losses arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any Offering Documents (or any document incorporated by reference therein) or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein in the light of circumstances in which they were made not misleading, if such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with information furnished to the Company in a writing duly executed by such Shareholder or seller of Registrable Shares specifically stating that it is for use therein; provided, however, that the liability of such indemnifying party under this Section shall be limited to the amount of the net proceeds (after giving effect to underwriting discounts and commissions) received by such indemnifying party in the sale of Registrable Shares giving rise to such liability. Such indemnity shall remain

 

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in full force and effect, regardless of any investigation made by or on behalf of the Shareholder Indemnitee and shall survive the transfer of such securities by such indemnifying party.

 

(c)                            Notices of Losses, etc. Promptly after receipt by an indemnified party of written notice of the commencement of any action or proceeding involving a Loss referred to in the preceding subsections of this Section 2.8, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party, give written notice to the latter of the commencement of such action; provided, however, that the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its obligations under the preceding subsections of this Section 2.8 except to the extent that the indemnifying party is materially and actually prejudiced by such failure to give notice. In case any such action is brought against an indemnified party, the indemnifying party shall be entitled to participate in and, unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist in respect of such Loss, to assume and control the defense thereof, in each case at its own expense, jointly with any other indemnifying party similarly notified, to the extent that it may wish, with counsel reasonably satisfactory to such indemnified party, and after its assumption of the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal or other expenses subsequently incurred by the latter in connection with the defense thereof other than reasonable costs of investigation, unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties arises in respect of such claim after the assumption of the defense thereof or the indemnifying party fails promptly to assume, or in the event of a conflict of interest cannot assume, the defense of such claim or fails to employ counsel reasonably satisfactory to such indemnified party, in which case the indemnified party shall also have the right to employ counsel and to assume the defense of such claim. No indemnifying party shall be liable for any settlement of any such action or proceeding effected without its written consent. No indemnifying party shall, without the consent of the indemnified party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof, which is reasonably acceptable to the indemnified party, the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect of such Loss or which requires action on the part of such indemnified party or otherwise subjects the indemnified party to any obligation or restriction to which it would not otherwise be subject.

 

(d)                                 Contribution. If the indemnification provided for in this Section 2.8 shall for any reason be unavailable to an indemnified party under subsection (a) or (b) of this Section 2.8 in respect of any Loss, then, in lieu of the amount paid or payable under subsection (a) or (b) of this Section 2.8, the indemnified party and the indemnifying party under subsection (a) or (b) of this Section 2.8 shall contribute to the aggregate Losses (including legal or other expenses reasonably incurred in connection with investigating the same) (i) in such proportion as is appropriate to reflect the relative fault of the Company and the prospective sellers of Registrable Shares covered by the registration statement which resulted in such Loss or action in respect thereof, with respect to the statements, omissions or action which resulted in such Loss or action in

 

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respect thereof, as well as any other relevant equitable considerations, or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as shall be appropriate to reflect not only such relative faults, but also the relative benefits received by the Company, on the one hand, and such prospective sellers, on the other hand, from their sale of Registrable Shares; provided that, for purposes of this clause (ii), the relative benefits received by the prospective sellers shall be deemed not to exceed the amount of proceeds received by such sellers. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person not guilty of such fraudulent misrepresentation. The obligations, if any, of the selling holders of Registrable Shares to contribute as provided in this subsection (d) are several in proportion to the relative value of their respective Registrable Shares covered by such registration statement and not joint. In addition, no Person shall be obligated to contribute hereunder any amounts in payment for any settlement of any action or Loss effected without such Person’s consent.

 

(e)                                  Other Indemnification. The Company shall, in connection with any registration statement filed by the Company pursuant to Sections 2.1 or 2.2, and each Shareholder that has registered for sale Registrable Shares shall, with respect to any required registration or other qualification of securities under any federal or state law or regulation of any Governmental Authority other than the Securities Act, indemnify Shareholder Indemnitees and Company Indemnitees, respectively, against Losses, or, to the extent that indemnification shall be unavailable to a Shareholder Indemnitee or Company Indemnitee, contribute to the aggregate Losses of such Shareholder Indemnitee or Company Indemnitee, as applicable, in a manner similar to that specified in the preceding subsections of this Section 2.8 (with appropriate modifications).

 

2.9                               Adjustments Affecting Registrable Shares.

 

Without the written consent of each Shareholder, the Company shall not effect or permit to occur any combination, subdivision or reclassification of Registrable Shares that would materially adversely affect the ability of the Shareholders to include such Registrable Shares in any registration of its securities under the Securities Act contemplated by this Agreement or the marketability of such Registrable Shares under any such registration or other offering.

 

2.10                        Rule 144 and Rule 144A.

 

The Company shall take all actions reasonably necessary to enable Shareholders to sell Registrable Shares without registration under the Securities Act within the limitation of the exemptions provided by (a) Rule 144 under the Securities Act, as such Rule may be amended from time to time, (b) Rule 144A or Regulation S under the Securities Act, as such Rule may be amended from time to time, or (c) any similar rules or regulations hereafter adopted by the Commission, including, without limiting the generality of the foregoing, filing on a timely basis all reports required to be filed under the Exchange Act. Upon the written request of any Shareholder, the Company shall deliver to such Shareholder a written statement as to whether it has complied with such requirements. Upon the written request of any Shareholder holding Registrable

 

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Shares, the Company shall promptly use commercially reasonable efforts to cause the removal of any restrictive legends borne by such Registrable Shares, if permitted by law, in order to facilitate the sale by the Shareholder under Rule 144, Rule 144A or Regulation S.

 

2.11                        No Inconsistent Arrangements.

 

The Company represents and warrants that it has not granted and is not a party to any proxy, voting trust or other agreement that is inconsistent with or conflicts with this Agreement. The Company shall not hereafter enter into any agreement with respect to its securities (including its Ordinary Shares) that is inconsistent with or conflicts with the rights granted under this Agreement, provided, however, that the Company may enter into an agreement with any holder or prospective holder of any securities of the Company related to the filing of a resale shelf registration statement to register shares issued to such holder or prospective holder in an acquisition, if and only if such resale shelf registration statement does not permit underwritten offerings.

 

2.12                        Termination of Registration Rights.

 

The Company’s obligations under Sections 2.1 and 2.2 hereof to register Ordinary Shares for sale under the Securities Act with respect to any Shareholder shall terminate on the first date on which no Registrable Shares are held by such Shareholder.

 

ARTICLE III

 

MISCELLANEOUS

 

3.1                               Amendments; Entire Agreement.

 

Any amendment or waiver of, or any consent given under, any provision of this Agreement shall be in writing and, in the case of an amendment, signed by holders of a majority of the Registrable Shares. This Agreement supersedes all prior discussions, memoranda of understanding, agreements and arrangements (whether written or oral, including all correspondence), if any, between the parties with respect to the subject matter hereof, and this Agreement contains the sole and entire agreement between the parties hereto with respect to the subject matter hereof.

 

3.2                               Severability.

 

If any provision of this Agreement is held to be illegal, invalid or unenforceable in whole or in part under any applicable law from time to time: (a) such provision will be fully severable from this Agreement; (b) such provision shall apply with whatever deletion or modification is necessary so that such provision is legal, valid and enforceable, giving effect to the intention of the parties hereto under this Agreement; and (c) the remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom.

 

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3.3                               Successors and Assigns; Transferee Registration Rights.

 

(a)                                 Except as otherwise expressly limited herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors, and administrators of the parties hereto.  Except as otherwise provided herein, none of the rights, privileges or obligations set forth in or arising under this Agreement may be assigned or transferred without the prior written consent of each party to this Agreement.

 

(b)                                 Notwithstanding anything to the contrary herein, any transferee who acquires Registrable Shares constituting at least five percent (5%) of the Company’s outstanding Ordinary Shares as of the date of such acquisition pursuant to a transaction that is not registered under the Securities Act (each, a “Registrable Shares Transferee”) shall be entitled to enjoy the same registration and other rights pursuant to this Agreement as does the Shareholder selling such Registrable Shares so long as the Registrable Shares held by any such Registrable Shares Transferee may not be sold or disposed of pursuant to Rule 144(b)(1) promulgated under the Securities Act at the time when a Registrable Shares Transferee seeks to exercise its rights pursuant to this Agreement. Any Registrable Shares Transferee shall enjoy such right pursuant to this Section 3.3(b) if and to the extent the Company shall have received (x) written notice from the Shareholder selling Registrable Shares to the Registrable Shares Transferee stating the name and address of such Registrable Shares Transferee and identifying the amount and type of Registrable Shares with respect to which such rights under this Agreement apply and (y) a written agreement from the Registrable Shares Transferee to be bound by all of the relevant terms of this Agreement. In relation to any such Registrable Shares Transferee, the term “Shareholder” and other defined terms used in this Agreement shall, where appropriate, be deemed to refer to such Registrable Shares Transferee. After such transfer of registrable Shares to a Registrable Shares Transferee, the Shareholder concerned shall retain its rights under this Agreement with respect to all other Registrable Shares owned by the Shareholder or its Affiliates.

 

3.4                               No Third-Party Beneficiaries

 

Except as otherwise explicitly provided herein, this Agreement is not intended to confer upon any Person other than the parties hereto any rights or remedies hereunder.

 

3.5                               Notices.

 

(a)                           Any notice, request or other communication to be given or made under this Agreement shall be in writing. Any such communication shall be delivered by hand, airmail, established courier service or facsimile to the party to which it is required or permitted to be given or made at such party’s address set forth on Schedule A or at such other address as such party may from time to time designate by written notice to the other parties hereto, and shall be effective upon the earlier of (i) actual receipt and (ii) deemed receipt under Section 3.5(b) below.

 

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(b)                                 Unless there is reasonable evidence that it was received at a different time, notice pursuant to this Section 3.5 is deemed given if: (i) delivered by hand, when left at the address referred to in Section 3.5(a); (ii) sent by airmail or established courier services within a country, three (3) Business Days after posting it; (iii) sent by airmail or established courier service between two countries, six (6) Business Days after posting it; and (iv) sent by facsimile, when confirmation of its transmission has been recorded by the sender’s facsimile machine. Each such notice shall also be delivered by email, which shall not constitute notice.

 

3.6                               Counterparts.

 

This Agreement may be executed in two or more counterparts, each of which shall be an original, with the same effect as if the signatures were upon the same instrument, and shall become effective when one or more counterparts have been signed by each of the parties and delivered (by telecopy, electronic delivery or otherwise) to the other parties. Signatures to this Agreement transmitted by facsimile transmission or by electronic mail in “portable document format” (“.pdf”) form will have the same effect as physical delivery of the paper document bearing the original signatures.

 

3.7                               Governing Law; Jurisdiction; Waiver of Jury Trial.

 

(a)                                 This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of New York, without giving effect to the principles of conflict of laws that would require the application of the law of any other jurisdiction. By its execution and delivery of this Agreement, each of the parties hereto hereby irrevocably and unconditionally agrees for itself that any legal action, suit or proceeding against it with respect to any matter under or arising out of or in connection with this Agreement or for recognition or enforcement of any judgment rendered in any such action, suit or proceeding, may be brought in either a state or federal court of competent jurisdiction in the State and County of New York. By execution and delivery of this Agreement, each of the parties hereto hereby irrevocably accepts and submits itself to the nonexclusive jurisdiction of each such court, generally and unconditionally, with respect to any such action, suit or proceeding. EACH PARTY HERETO UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

(b)                           Each party acknowledges that it would be impossible to determine the amount of damages that would result from any breach of any of the provisions of this Agreement and that, in view of the uniqueness of the subject matter of this Agreement, the remedy at law for any breach, or threatened breach, of any of such provisions would be inadequate and, accordingly, agrees that each other party, in addition to any other rights or remedies which it may have, shall be entitled to specific performance of this Agreement and any of the terms of this Agreement and such other equitable and injunctive relief available to the parties from any court of competent jurisdiction to compel specific performance of, or restrain any party from violating, any of such provisions. In connection with any action or proceeding for equitable and injunctive relief

 

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permitted hereunder, each party hereby waives any claim or defense that a remedy at law alone is adequate and, to the maximum extent permitted by applicable law, agrees to have each provision of this Agreement specifically enforced against it, without the necessity of posting bond or other security against it, and consents to the entry of equitable and injunctive relief against it enjoining or restraining any breach or threatened breach of any provision of this Agreement.

 

[The remainder of this page has intentionally been left blank]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
CNOVA   N.V.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SHAREHOLDERS:
    
	
 
    	
 
    
	
 
    	
CASINO   GUICHARD-PERRACHON
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ALMANACES   ÉXITO
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MARNEYLECTRO   B.V.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

 

SCHEDULE A

 

NOTICES

 

If to the Company:

 

If to CGP, to:

 

If to Exito, to:

 

If to Dutch BV, to:Exhibit 10.1

 

CNOVA N.V.
 2014 OMNIBUS INCENTIVE PLAN

 

SECTION 1.        Purpose; Definitions

 

The purpose of this Plan is to give the Company a competitive advantage in attracting, retaining and motivating officers, employees, directors and consultants and to provide the Company and its Subsidiaries and Affiliates with a stock plan providing incentives for future performance of services directly linked to shareholder value.  The Committee shall have the authority to establish and adopt sub-plans or other sets of operating rules under this Plan in order to address local laws or regulations or to set forth other provisions deemed advisable with respect to a particular jurisdiction.

 

For purposes of this Plan, the following terms are defined as set forth below:

 

(a)           “Affiliate” means a company or other entity Controlled by, Controlling or under common Control with another company or entity.

 

(b)           “Applicable Exchange” means the NASDAQ or such other securities exchange as may at the applicable time be the principal market for the Ordinary Shares.

 

(c)           “Award” means a Stock Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Performance Unit or Other Stock-Based Award granted pursuant to the terms of this Plan.

 

(d)           “Award Agreement” means a written or electronic document or agreement setting forth the terms and conditions of a specific Award.

 

(e)           “Board” means the board of directors of the Company.

 

(f)            “Business Combination” has the meaning set forth in Section 9(e)(iii).

 

(g)           “Cause” means (i) “Cause” as defined in any Individual Agreement to which the Participant is a party as of the Grant Date, or (ii) if there is no such Individual Agreement or if it does not define “Cause,” “Cause” as defined in the applicable Award Agreement or sub-plan..

 

(h)           “Change in Control” has the meaning set forth in Section 9(e).

 

(i)            “Committee” means the Committee referred to in Section 2.

 

(j)            “Company” means Cnova N.V., a Netherlands limited liability company, or its successor.

 

(k)           “Control” means the ability, by law, contract or otherwise, (i) to exercise, directly or indirectly, more than 50 percent of the voting rights represented by all shares or other equity

 

 

interests in a Person; and/or; (ii) to direct the casting of more than 50 percent of the votes exercisable at general meetings of a Person on all, or substantially all matters; or (iii) to appoint or remove the members of the management board (or equivalent) or the supervisory board (or equivalent) of a Person, having a majority of the voting rights at meetings of the management board (or equivalent) or supervisory board (or equivalent) on all, or substantially all, matters; and “Controlled by,” “Controlling” and under “common Control” with shall be construed accordingly.

 

(l)            “Corporate Transaction” has the meaning set forth in Section 3(c).

 

(m)          “Disaffiliation” means a Subsidiary’s or Affiliate’s ceasing to be a Subsidiary or Affiliate for any reason (including as a result of a public offering, or a spinoff or sale by the Company, of the stock of the Subsidiary or Affiliate) or a sale of a division of the Company and its Subsidiaries and Affiliates.

 

(n)           “Effective Date” has the meaning set forth in Section 10(a).

 

(o)           “Eligible Individuals” means directors, officers, employees and consultants of the Company or any of its Subsidiaries or Affiliates, and prospective directors, officers, employees and consultants who have accepted offers of employment or consultancy from the Company or its Subsidiaries or Affiliates.

 

(p)           “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended from time to time, and any successor thereto.

 

(q)           “Fair Market Value” means, except as otherwise determined by the Committee, the closing price of an Ordinary Share on the Applicable Exchange on the date of measurement or, if Ordinary Shares were not traded on the Applicable Exchange on such measurement date, then on the next preceding date on which Ordinary Shares were traded on the Applicable Exchange, as reported by such source as the Committee may select.  If there is no regular public trading market for such Ordinary Shares, the Fair Market Value of the Ordinary Shares shall be determined by the Committee in good faith.

 

(r)            “Free-Standing SAR” has the meaning set forth in Section 4(b).

 

(s)            “Grant Date” means (i) the date on which the Committee by resolution selects an Eligible Individual to receive a grant of an Award and determines the number of Ordinary Shares, or the formula for earning a number of Ordinary Shares, to be subject to such Award or the cash amount subject to such Award, or (ii) such later date as the Committee shall provide in such resolution.

 

(t)            “Incumbent Board” has the meaning set forth in Section 9(e)(ii).

 

(u)           “Individual Agreement” means an employment, consulting or similar agreement between a Participant and the Company or one of its Subsidiaries or Affiliates.

 

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(v)           “Ordinary Shares” means ordinary shares, par value €0.05 per share, of the Company.

 

(w)          “Other Stock-Based Award” means Awards of Ordinary Shares and other Awards that are valued in whole or in part by reference to, or are otherwise based upon, Ordinary Shares, including unrestricted stock, deferred stock units, dividend equivalents, and convertible debentures.

 

(x)           “Outstanding Company Ordinary Shares” has the meaning set forth in Section 9(e)(i).

 

(y)           “Outstanding Company Voting Securities” has the meaning set forth in Section 9(e)(i).

 

(z)           “Participant” means an Eligible Individual to whom an Award is or has been granted.

 

(aa)         “Performance Unit” means any Award granted under Section 7 of a unit valued by reference to a designated amount of cash or other property other than Ordinary Shares, which value may be paid to the Participant by delivery of such property as the Committee shall determine, including cash, Ordinary Shares, or any combination thereof, upon achievement of such performance goals during the performance period as the Committee shall establish at the time of such grant or thereafter.

 

(bb)         “Person” has the meaning set forth in Section 9(e)(i).

 

(cc)         “Plan” means the Cnova N.V. 2014 Stock Incentive Plan, as set forth herein and as hereinafter amended from time to time.

 

(dd)         “Replaced Award” has the meaning set forth in Section 9(b).

 

(ee)         “Replacement Award” has the meaning set forth in Section 9(b).

 

(ff)          “Restricted Stock” means an Award granted under Section 5.

 

(gg)         “Restricted Stock Unit” has the meaning set forth in Section 6(a).

 

(hh)         “Restriction Period” means, with respect to an Award of Restricted Stock or Restricted Stock Units, the period during which the Award remains subject to the satisfaction of vesting conditions.

 

(ii)           “Stock Appreciation Right” means an Award granted under Section 4(b) or 4(c).

 

(jj)           “Stock Option” means an Award granted under Section 4(a).

 

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(kk)         “Subsidiary” means any corporation, partnership, joint venture, limited liability company or other entity during any period in which (i) at least a 50% voting or profits interest is owned, directly or indirectly through one or more of its Subsidiaries, and whether or not by virtue of an agreement with other parties with voting rights, by the Company or any successor to the Company, or (ii) of which the Company or one or more of its Subsidiaries are members or shareholders and can appoint or dismiss, whether or not by virtue of an agreement with other parties with voting rights, individually or collectively, more than half of the directors or of the supervisory board members, even if all parties with voting rights cast their votes.

 

(ll)           “Tandem SAR” has the meaning set forth in Section 4(b).

 

(mm)      “Term” means the maximum period during which a Stock Option or Stock Appreciation Right may remain outstanding, subject to earlier termination upon Termination of Service or otherwise, as specified in the applicable Award Agreement.

 

(nn)         “Termination of Service” means the termination of the applicable Participant’s employment with, or performance of services for, the Company and any of its Subsidiaries or Affiliates unless otherwise determined by the Committee.

 

In addition, certain other terms used herein have definitions given to them in the first place in which they are used.

 

SECTION 2.        Administration

 

(a)           Committee.  This Plan shall be administered by the Board directly, or if the Board elects, by the Company’s nomination and remuneration committee or such other committee of the Board as the Board may from time to time designate, which committee shall be composed entirely of directors of the Board (not less than two), and shall be appointed by and serve at the pleasure of the Board.  All references in this Plan to the “Committee” refer to the Board as a whole, unless a separate committee has been designated or authorized consistent with the foregoing.

 

Subject to the terms and conditions of this Plan, the Committee shall have absolute authority:

 

(i)            To select the Eligible Individuals to whom Awards may from time to time be granted;

 

(ii)           To determine whether and to what extent Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units, Other Stock-Based Awards or any combination thereof are to be granted hereunder;

 

(iii)          To determine the number of Ordinary Shares to be covered by each Award granted hereunder;

 

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(iv)          To approve the form of any Award Agreement and determine the terms and conditions of any Award granted hereunder, including the exercise price (subject to Section 4(d)), any vesting condition, restriction or limitation (which may be related to the performance of the Participant, the Company or any Subsidiary or Affiliate) and any vesting acceleration or forfeiture waiver regarding any Award and the Ordinary Shares relating thereto, based on such factors as the Committee shall determine;

 

(v)           To modify, amend or adjust the terms and conditions of any Award (subject to the terms of this Plan), at any time or from time to time, including performance goals;

 

(vi)          To determine to what extent and under what circumstances Ordinary Shares and other amounts payable with respect to an Award shall be deferred;

 

(vii)         To determine under what circumstances an Award may be settled in cash, Ordinary Shares, other property or a combination of the foregoing;

 

(viii)        To adopt, alter and repeal such sub-plans, administrative rules, guidelines and practices governing this Plan as it shall from time to time deem advisable, including in order to address local laws and regulations;

 

(ix)          To establish any “blackout” period that the Committee in its sole discretion deems necessary or advisable;

 

(x)           To interpret the terms and provisions of this Plan and any Award issued under this Plan (and any Award Agreement relating thereto);

 

(xi)          To decide all other matters that must be determined in connection with an Award; and

 

(xii)         To otherwise administer this Plan.

 

(b)           Procedures.

 

(i)            The Committee may act only by a majority of its members then in office, except that the Committee may, except to the extent prohibited by applicable law or the listing standards of the Applicable Exchange, allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any part of its responsibilities and powers to any person or persons selected by it.  Any such allocation or delegation may be revoked by the Committee at any time.  The Committee may act by the adoption of resolutions at a meeting or unanimous written consent.

 

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(ii)           Any authority granted to the Committee may at any time be exercised or revoked by the full Board.  To the extent that any permitted action taken by the Board conflicts with action taken by the Committee, the Board action shall control.

 

(c)           Discretion of Committee.  Subject to the last sentence of Section 1(g), any determination made by the Committee or pursuant to delegated authority under the provisions of this Plan with respect to any Award shall be made in the sole discretion of the Committee or such delegate at the time of the grant of the Award or, unless in contravention of any express term of this Plan, at any time thereafter.  All decisions made by the Committee or any appropriately delegated officer pursuant to the provisions of this Plan shall be final, binding and conclusive on all persons, including the Company, Participants and Eligible Individuals.

 

(d)           Cancellation or Suspension.  Subject to Section 4(d), the Committee shall have full power and authority to determine whether, to what extent and under what circumstances any Award shall be canceled or suspended.

 

(e)           Award Agreements; Sub-plans.  The terms and conditions of each Award, as determined by the Committee, shall be set forth in a written (or, to the extent allowed under applicable law, electronic) Award Agreement, which shall be delivered to the Participant receiving such Award upon, or as promptly as is reasonably practicable following, the grant of such Award.  In addition to the terms of this Plan and any applicable Award Agreement,   an Award may be subject to any applicable sub-plan or other set of rules under this Plan that addresses local laws or regulations or sets forth other provisions deemed advisable with respect to a particular jurisdiction.  The effectiveness of an Award shall be subject to the Award Agreement’s being signed by the Company and the Participant receiving the Award (which signatures may be in electronic form to the extent permitted by applicable law).  Award Agreements may be amended only in accordance with Section 10(d) hereof.

 

(f)            Eligibility.  Awards may be granted under this Plan to Eligible Individuals.

 

SECTION 3.        Ordinary Shares Subject to Plan

 

(a)           Plan Maximum.  The maximum number of Ordinary Shares that may be granted pursuant to Awards under this Plan shall be 16,500,000, of which no more than 500,000 Ordinary Shares may be granted to directors of the Company (it being understood that any portion of the 500,000 Ordinary Shares not granted to directors of the Company may be granted to other Participants).

 

(b)           Rules for Calculating Ordinary Shares Delivered.  To the extent that any Award is forfeited, terminates, expires or lapses instead of being exercised, or any Award is settled for cash, the Ordinary Shares subject to such Awards not delivered as a result thereof shall again be available for Awards under this Plan.  If the exercise price of any Stock Option or Stock Appreciation Right or the tax withholding obligations relating to any Award are satisfied by delivering Ordinary Shares (either actually or through a signed document affirming the Participant’s ownership and delivery of such Ordinary Shares) or withholding Ordinary Shares

 

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relating to such Award, the net number of Ordinary Shares subject to the Award after payment of the exercise price or tax withholding obligations shall be deemed to have been granted for purposes of Section 3(a).

 

(c)           Adjustment Provisions.

 

(i)            In the event of a merger, consolidation, acquisition of property or shares, stock rights offering, liquidation, disposition for consideration of the Company’s direct or indirect ownership of a Subsidiary or Affiliate (including by reason of a Disaffiliation for consideration), or similar event affecting the Company or any of its Subsidiaries (each, a “Corporate Transaction”), the Committee may in its discretion make such substitutions or adjustments as it deems appropriate and equitable to (A) the aggregate number and kind of Ordinary Shares or other securities reserved for issuance and delivery under this Plan, (B) the various maximum limitations set forth in Section 3(a) upon certain types of Awards and upon the grants to individuals of certain types of Awards, (C) the number and kind of Ordinary Shares or other securities subject to outstanding Awards; and (D) the exercise price of outstanding Awards.

 

(ii)           In the event of a stock dividend, stock split, reverse stock split, reorganization, share combination, or recapitalization or similar event affecting the capital structure of the Company, or a Disaffiliation, separation or spinoff, in each case without consideration, or other extraordinary dividend of cash or other property to the Company’s shareholders, the Committee shall make such substitutions or adjustments as it deems appropriate and equitable to (A) the aggregate number and kind of Ordinary Shares or other securities that may be issued and delivered under this Plan, (B) the various maximum limitations set forth in Section 3(a) upon certain types of Awards and upon the grants to individuals of certain types of Awards, (C) the number and kind of Ordinary Shares or other securities subject to outstanding Awards; and (D) the exercise price of outstanding Awards.

 

(iii)          In the case of Corporate Transactions, such adjustments may include (A) the cancellation of outstanding Awards in exchange for payments of cash, property or a combination thereof having an aggregate value equal to the value of such Awards, as determined by the Committee in its sole discretion (it being understood that in the case of a Corporate Transaction with respect to which holders of Ordinary Shares receive consideration other than publicly traded equity securities of the ultimate surviving entity, any such determination by the Committee that the value of a Stock Option or Stock Appreciation Right shall for this purpose be deemed to equal the excess, if any, of the value of the consideration being paid for each Ordinary Share pursuant to such Corporate Transaction over the exercise price of such Stock Option or Stock Appreciation Right shall conclusively be deemed valid); (B) the substitution of other property (including cash or other securities of the Company and securities of entities other than the Company) for the Ordinary Shares subject to outstanding Awards; and (C) in connection with any Disaffiliation, arranging for the assumption of Awards, or replacement of Awards with new awards based on other property or other securities (including other securities of the Company and securities of entities other than the Company), by the affected Subsidiary, Affiliate, or division or by the entity that Controls such Subsidiary, Affiliate, or division following such

 

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Disaffiliation (as well as any corresponding adjustments to Awards that remain based upon Company securities).

 

(iv)          The Committee may adjust the performance goals applicable to any Awards to reflect any unusual or non-recurring events and other extraordinary items, impact of charges for restructurings, discontinued operations, and the cumulative effects of accounting or tax changes, each as defined by generally accepted accounting principles or as identified in the Company’s financial statements, notes to the financial statements, management’s discussion and analysis or the Company’s filings with the U.S. Securities and Exchange Commission or any successor agency.

 

(v)           Any adjustment under this Section 3(c) need not be the same for all Participants.

 

(d)           Character of Ordinary Shares.  Any Ordinary Shares issued hereunder may consist, in whole or in part, of authorized and unissued Ordinary Shares, Ordinary Shares held in treasury, Ordinary Shares purchased in the open market or otherwise.

 

SECTION 4.        Stock Options and Stock Appreciation Rights

 

(a)           General.  Stock Options may be granted alone or in addition to other Awards granted under this Plan.

 

(b)           Types and Nature of Stock Appreciation Rights.  Stock Appreciation Rights may be “Tandem SARs,” which are granted in conjunction with a Stock Option, or “Free-Standing SARs,” which are not granted in conjunction with a Stock Option.  Upon the exercise of a Stock Appreciation Right, unless otherwise set forth in the applicable Award Agreement, the Participant shall be entitled to receive an amount in cash, Ordinary Shares, or both, in value equal to the product of (i) the excess of the Fair Market Value of one Ordinary Share over the exercise price of the applicable Stock Appreciation Right, multiplied by (ii) the number of Ordinary Shares in respect of which the Stock Appreciation Right has been exercised.  The applicable Award Agreement shall specify whether such payment is to be made in cash or Ordinary Shares or both, or shall reserve to the Committee or the Participant the right to make that determination prior to or upon the exercise of the Stock Appreciation Right.

 

(c)           Tandem SARs.  A Tandem SAR may be granted at the Grant Date of the related Stock Option.  A Tandem SAR shall be exercisable only at such time or times and to the extent that the related Stock Option is exercisable in accordance with the provisions of this Section 4, and shall have the same exercise price as the related Stock Option.  A Tandem SAR shall terminate or be forfeited upon the exercise or forfeiture of the related Stock Option, and the related Stock Option shall terminate or be forfeited upon the exercise or forfeiture of the Tandem SAR.

 

(d)           Exercise Price.  The exercise price per Ordinary Share subject to a Stock Option or Stock Appreciation Right shall be determined by the Committee and set forth in the applicable

 

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Award Agreement, and shall not be less than the Fair Market Value of an Ordinary Share on the applicable Grant Date.  In no event may any Stock Option or Stock Appreciation Right granted under this Plan be amended, other than pursuant to Section 3(c), to decrease the exercise price thereof, be canceled in exchange for cash or other Awards or in conjunction with the grant of any new Stock Option or Stock Appreciation Right with a lower exercise price, or otherwise be subject to any action that would be treated, under the Applicable Exchange listing standards or for accounting purposes, as a “repricing” of such Stock Option or Stock Appreciation Right, unless such amendment, cancellation, or action is approved by the Company’s general meeting of shareholders.

 

(e)                                  Term.  The Term of each Stock Option and each Stock Appreciation Right shall be fixed by the Committee, but no Stock Option or Stock Appreciation Right shall be exercisable more than 10 years after its Grant Date.

 

(f)                                   Exercisability.  Except as otherwise provided herein, Stock Options and Stock Appreciation Rights shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Committee.

 

(g)                                  Method of Exercise.  Subject to the provisions of this Section 4, Stock Options and Stock Appreciation Rights may be exercised, in whole or in part, at any time during the Term thereof by giving written notice of exercise to the Company specifying the number of Ordinary Shares subject to the Stock Option or Stock Appreciation Right to be purchased.

 

In the case of the exercise of a Stock Option, such notice shall be accompanied by payment in full of the aggregate purchase price (which shall equal the product of such number of Ordinary Shares subject to such Stock Options multiplied by the applicable exercise price) by certified or bank check, wire transfer, or such other instrument or method as the Company may accept. If provided for in the applicable Award Agreement as approved by the Committee, payment in full or in part may also be made as follows:

 

(i)                                     In the form of unrestricted Ordinary Shares (by delivery of such shares or by attestation) already owned by the Participant of the same class as the Ordinary Shares subject to the Stock Option (based on the Fair Market Value of the Ordinary Shares on the date the Stock Option is exercised);

 

(ii)                                  To the extent permitted by applicable law, by delivering a properly executed exercise notice to the Company, together with a copy of irrevocable instructions to a broker to deliver promptly to the Company the amount of Ordinary Shares necessary to pay the purchase price, and, if requested, by the amount of any applicable national, state or local withholding taxes; provided, that to facilitate the foregoing, the Company may, to the extent permitted by applicable law, enter into agreements for coordinated procedures with one or more brokerage firms; or

 

(iii)                               By instructing the Company to withhold a number of such Ordinary Shares having a Fair Market Value (based on the Fair Market Value of the Ordinary

 

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Shares on the date the applicable Stock Option is exercised) equal to the product of (A) the exercise price per Ordinary Share multiplied by (B) the number of Ordinary Shares in respect of which the Stock Option shall have been exercised.

 

(h)                                 Delivery; Rights of Shareholders.  A Participant shall not be entitled to delivery of Ordinary Shares pursuant to the exercise of a Stock Option or Stock Appreciation Right until the exercise price therefor has been fully paid and applicable taxes have been withheld.  Except as otherwise provided in Section 4(k), a Participant shall have all of the rights of a shareholder of the Company holding the class or series of Ordinary Shares that is subject to such Stock Option or Stock Appreciation Right (including, if applicable, the right to vote the applicable Ordinary Shares), when the Participant (i) has given written notice of exercise, (ii) if requested, has given the representation described in Section 12(a) and (iii) in the case of a Stock Option, has paid in full for such Ordinary Shares.

 

(i)                                     Nontransferability of Stock Options and Stock Appreciation Rights.  No Stock Option or Stock Appreciation Right shall be transferable by a Participant other than, for no value or consideration, (i) by will or by the laws of descent and distribution; or (ii) as otherwise expressly permitted by the Committee including, if so permitted, pursuant to a transfer to such Participant’s family members, whether directly or indirectly or by means of a trust or partnership or otherwise.  A Tandem SAR shall be transferable only with the related Stock Option as permitted by the preceding sentence.  Any Stock Option or Stock Appreciation Right shall be exercisable, subject to the terms of this Plan, only by the Participant, the guardian or legal representative of the Participant, or any person to whom such stock option is transferred pursuant to this Section 4(i), it being understood that the term “holder” and “Participant” include such guardian, legal representative and other transferee; provided, however, that the term “Termination of Service” shall continue to refer to the Termination of Service of the original Participant.

 

(j)                                    Termination of Service.  The effect of a Participant’s Termination of Service on any Stock Option or Stock Appreciation Right then held by the Participant shall be set forth in the applicable Award Agreement or any other document approved by the Committee and applicable to such Stock Option or Stock Appreciation Right.  In no event shall a Stock Option or Stock Appreciation Right be exercisable after the expiration of its term.

 

(k)                                 Dividends and Dividend Equivalents.  Dividends (whether paid in cash or Ordinary Shares) and dividend equivalents may not be paid or accrued on Stock Options or Stock Appreciation Rights; provided that Stock Options and Stock Appreciation Rights may be adjusted under certain circumstances in accordance with the terms of Section 3(c).

 

SECTION 5.                         Restricted Stock

 

(a)                                 Administration.  Shares of Restricted Stock are actual Ordinary Shares issued to a Participant and may be awarded either alone or in addition to other Awards granted under this Plan.  The Committee shall determine the Eligible Individuals to whom and the time or times at which grants of Restricted Stock will be awarded, the number of Ordinary Shares to be awarded

 

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to any Eligible Individual, the conditions for vesting, the time or times within which such Awards may be subject to forfeiture and any other terms and conditions of the Awards, in addition to those contained in Section 5(c).

 

(b)                                 Book Entry Registration or Certificated Shares.  Shares of Restricted Stock shall be evidenced in such manner as the Committee may deem appropriate, including book-entry registration or issuance of one or more share certificates.  If any certificate is issued in respect of shares of Restricted Stock, such certificates shall be registered in the name of the Participant and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Award, substantially in the following form:

 

The transferability of this certificate and the shares of stock represented hereby are subject to the terms and conditions (including forfeiture) of the Cnova N.V. 2014 Omnibus Incentive Plan and an Award Agreement.  Copies of such Plan and Agreement are on file at the offices of Cnova N.V., 5613 AM Eindhoven, The Netherlands, +31 (0)40 250-2258.

 

The Committee may require that the certificates evidencing such shares be held in custody by the Company until the restrictions thereon shall have lapsed and that, as a condition of any Award of Restricted Stock, the applicable Participant shall have delivered a stock power, endorsed in blank, relating to the Ordinary Shares covered by such Award.

 

(c)                                  Terms and Conditions.  Shares of Restricted Stock shall be subject to the following terms and conditions and such other terms and conditions as are set forth in the applicable Award Agreement:

 

(i)                                     The Committee shall, prior to or at the time of grant, condition the vesting of an Award of Restricted Stock upon the continued service of the applicable Participant or the attainment of performance goals or the attainment of performance goals and the continued service of the applicable Participant.  The conditions for grant or vesting and the other provisions of Restricted Stock Awards (including any applicable performance goals) need not be the same with respect to each recipient.

 

(ii)                                  Subject to the provisions of this Plan and the applicable Award Agreement, until the expiration of the Restriction Period, the Participant shall not be permitted to sell, assign, transfer, pledge or otherwise encumber Shares of Restricted Stock.

 

(d)                                 Rights of a Shareholder.  Except as provided in this Section 5 and the applicable Award Agreement, the applicable Participant shall have, with respect to the shares of Restricted Stock, all of the rights of a shareholder of the Company holding the class or series of Ordinary Shares that is the subject of the Restricted Stock, including, if applicable, the right to vote the shares and the right to receive any dividends.  As determined by the Committee in the applicable Award Agreement and subject to Section 12(e), (i) cash dividends on the class or series of Ordinary Shares that is the subject of the Restricted Stock Award shall be payable in cash and

 

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shall, as determined by the Committee, either be (A) held subject to the vesting of the underlying Restricted Stock, or held subject to meeting performance goals applicable only to dividends, or (B) distributed in full or in part without regard to the vested status of the underlying Restricted Stock and (ii) dividends payable in Ordinary Shares shall be paid in the form of Restricted Stock of the same class as the Ordinary Shares with which such dividend was paid, and shall, as determined by the Committee, be either (A) held subject to the vesting of the underlying Restricted Stock, or held subject to meeting performance goals applicable only to dividends, or (B) distributed in full or in part without regard to the vested status of the underlying Restricted Stock.

 

(e)                                  Delivery of Unlegended Share Certificates.  If and when any applicable performance goals are satisfied and the Restriction Period expires without a prior forfeiture of the Ordinary Shares of Restricted Stock for which legended share certificates have been issued, unlegended share certificates for such Ordinary Shares shall be delivered to the Participant upon surrender of the legended share certificates.

 

(f)                                   Termination of Service.  The effect of a Participant’s Termination of Service on any Restricted Stock then held by the Participant shall be set forth in the applicable Award Agreement or any other document approved by the Committee and applicable to such Restricted Stock.

 

SECTION 6.                         Restricted Stock Units

 

(a)                                 Nature of Awards.  Restricted stock units (“Restricted Stock Units”) are Awards denominated in Ordinary Shares that will be settled, subject to the terms and conditions of the applicable Award Agreement, in an amount in cash, Ordinary Shares, or both, based upon the Fair Market Value of a specified number of Ordinary Shares.

 

(b)                                 Terms and Conditions.  Restricted Stock Units shall be subject to the following terms and conditions and such other terms and conditions as are set forth in the applicable Award Agreement (including the vesting or forfeiture provisions applicable upon a Termination of Service):

 

(i)                                     The Committee shall, prior to or at the time of grant, condition the vesting of Restricted Stock Units upon the continued service of the applicable Participant or the attainment of performance goals or the attainment of performance goals and the continued service of the applicable Participant.  The conditions for grant or vesting and the other provisions of Restricted Stock Units (including any applicable performance goals) need not be the same with respect to each recipient.  An Award of Restricted Stock Units shall be settled as and when the Restricted Stock Units vest, at a later time specified by the Committee in the applicable Award Agreement, or, if the Committee so permits, in accordance with an election of the Participant.

 

(ii)                                  Subject to the provisions of this Plan and the applicable Award Agreement, during the Restriction Period, if any, set by the Committee, the Participant

 

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shall not be permitted to sell, assign, transfer, pledge or otherwise encumber Restricted Stock Units.

 

(iii)                               The Award Agreement for Restricted Stock Units shall specify whether, to what extent and on what terms and conditions the applicable Participant shall be entitled to receive payments of cash, Ordinary Shares or other property corresponding to the dividends payable on the Ordinary Shares (subject to Section 12(e)).

 

(c)                                  Rights of a Shareholder.  A Participant to whom Restricted Stock Units are awarded will only have contractual rights until settlement of the Restricted Stock Units in the form of Ordinary Shares and will not hold any of the underlying Ordinary Shares.  Accordingly, the Participant shall have no rights as a shareholder with respect to the Ordinary Shares represented by the Restricted Stock Units unless and until Ordinary Shares are actually delivered to the participant in settlement thereof.

 

(d)                                 Termination of Service.  The effect of a Participant’s Termination of Service on any Restricted Stock Units then held by the Participant shall be set forth in the applicable Award Agreement or any other document approved by the Committee and applicable to such Restricted Stock Units.

 

SECTION 7.                         Performance Units.

 

Performance Units may be issued hereunder to Eligible Individuals, for no cash consideration or for such minimum consideration as may be required by applicable law or determined by the Committee, either alone or in addition to other Awards granted under this Plan.  The performance goals to be achieved during any performance period and the length of the performance period shall be determined by the Committee upon the grant of each Performance Unit.  The conditions for grant or vesting and the other provisions of Performance Units (including any applicable performance goals) need not be the same with respect to each recipient.  Performance Units may be paid in cash, Ordinary Shares, other property or any combination thereof, in the sole discretion of the Committee as set forth in the applicable Award Agreement.

 

SECTION 8.                         Other Stock-Based Awards

 

Other Stock-Based Awards may be granted either alone or in conjunction with other Awards granted under this Plan.

 

SECTION 9.                         Change-in-Control Provisions

 

(a)                                 General.  The provisions of this Section 9 shall, subject to Section 3(c), apply notwithstanding any other provision of this Plan to the contrary, except to the extent that the Committee specifically provides otherwise in an Award Agreement.

 

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(b)                                 Impact of Change in Control.  Upon the occurrence of a Change in Control, unless otherwise provided in the applicable Award Agreement:  (i) all then-outstanding Stock Options and Stock Appreciation Rights shall become fully vested and exercisable, and all other Awards (other than performance-based Awards) shall vest in full, be free of restrictions, and be deemed to be earned and payable in an amount equal to the full value of such Award, except in each case to the extent that a Replacement Award (as defined below) is provided to the Participant pursuant to Section 3(c) to replace such Award, and (ii) any performance-based Award that is not replaced by a Replacement Award shall be deemed to be earned and payable in an amount equal to the full value of such performance-based Award (with all applicable performance goals deemed achieved at the greater of (x) the applicable target level and (y) the level of achievement of the performance goals for the Award as determined by the Committee not later than the date of the Change in Control, taking into account performance through the latest date preceding the Change in Control as to which performance can, as a practical matter, be determined (but not later than the end of the applicable performance period)).  For purposes of this Plan, the terms (x) “Replacement Award” means any award meeting the requirements of Section 9(c) and (y) “Replaced Award” means any award intended to be replaced by a Replacement Award.

 

(c)                                  Replacement Awards.  An Award shall meet the conditions of this Section 9(c) (and hence qualify as a Replacement Award) if:  (i) it is of the same type as the Replaced Award; (ii) it has a value equal to the value of the Replaced Award as of the date of the Change in Control, as determined by the Committee in its sole discretion consistent with Section 3(c); (iii) if the underlying Replaced Award was an equity-based award, it relates to publicly traded equity securities of the Company or the entity surviving the Company following the Change in Control; (iv) it contains terms relating to vesting (including with respect to a Termination of Service) that are substantially identical to those of the Replaced Award; and (v) its other terms and conditions are not less favorable to the Participant than the terms and conditions of the Replaced Award (including the provisions that would apply in the event of a subsequent Change in Control) as of the date of the Change in Control.  Without limiting the generality of the foregoing, a Replacement Award may take the form of a continuation of the applicable Replaced Award if the requirements of the preceding sentence are satisfied.  If a Replacement Award is granted, the Replaced Award shall not vest upon the Change in Control.  The determination whether the conditions of this Section 9(c) are satisfied shall be made by the Committee, as constituted immediately before the Change in Control, in its sole discretion.

 

(d)                                 Termination of Service.  Notwithstanding any other provision of this Plan to the contrary and unless otherwise determined by the Committee and set forth in the applicable Award Agreement, upon a Termination of Service of a Participant by the Company or the entity surviving the Company following the Change in Control, other than for Cause, within 24 months following a Change in Control, (i) all Replacement Awards held by such Participant shall vest in full, be free of restrictions, and be deemed to be earned in full (with respect to performance goals, unless otherwise agreed in connection with the Change in Control, at the greater of (x) the applicable target level and (y) the level of achievement of the performance goals for the Award as determined by the Committee taking into account performance through the latest date

 

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preceding the Termination of Service as to which performance can, as a practical matter, be determined (but not later than the end of the applicable performance period)), and (ii) unless otherwise provided in the applicable Award Agreement, notwithstanding any other provision of this Plan to the contrary, any Stock Option or Stock Appreciation Right held by the Participant as of the date of the Change in Control that remains outstanding as of the date of such Termination of Service may thereafter be exercised until the expiration of the stated full Term of such Stock Option or Stock Appreciation Right.

 

(e)                                  Definition of Change in Control.  For purposes of this Plan, a “Change in Control” shall mean the happening of any of the following events:

 

(i)                                     An acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either the then outstanding Ordinary Shares of the Company (the “Outstanding Company Ordinary Shares”) or the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change of Control:  (A) any acquisition directly from the Company, (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust or entity) sponsored or maintained by the Company or any entity Controlled by the Company, (D) any acquisition by Casino, Guichard-Perrachon S.A. or any of its Affiliates, or (E) any acquisition by any entity pursuant to a transaction which complies with clauses (A), (B) and (C) of subsection (iii) of this Section 9(e); or

 

(ii)                                  A change in the composition of the Board such that the individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that, for purposes of this Section 9(e), any individual who becomes a member of the Board subsequent to the Effective Date whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though such individual were a member of the Incumbent Board; provided further, that any such individual whose initial appointment as a member of the Board is (A) not supported by a majority of those Persons who are members of the Incumbent Board (or deemed to be such pursuant to this section), or (B) supported by a majority of those Persons who are members of the Incumbent Board (or deemed to be such pursuant to this section) pursuant to a negotiated formal or informal settlement, shall, in each case, not be considered as a member of the Incumbent Board; or

 

(iii)                               The consummation of a reorganization, merger, statutory share exchange or consolidation or similar transaction involving the Company or any of its Subsidiaries

 

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or sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or securities of another entity by the Company or any of its Subsidiaries (a “Business Combination”), in each case, unless, following such Business Combination, (A) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Ordinary Shares and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding Ordinary Shares (or, for a noncorporate entity, equivalent rights or securities) and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors (or, for a noncorporate entity, equivalent rights or securities), as the case may be, of the entity resulting from such Business Combination (including an entity that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Company Ordinary Shares and Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any entity resulting from such Business Combination, Casino, Guichard-Perrachon S.A. or any of its Affiliates or any employee benefit plan (or related trust or entity) of the Company or such entity resulting from such Business Combination) beneficially owns, directly or indirectly, 30% or more of, respectively, the then outstanding Ordinary Shares (or, for a noncorporate entity, equivalent rights or securities) of the entity resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such entity, except to the extent that such ownership existed prior to the Business Combination, and (C) at least a majority of the members of the board of directors (or, for a noncorporate entity, equivalent body or committee) of the entity resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business Combination; or

 

(iv)                              The approval by the shareholders of the Company of a complete liquidation or dissolution of the Company.

 

SECTION 10.                                                                  Term, Amendment and Termination

 

(a)                                 Effectiveness.  This Plan shall be effective as of [      ], 2014 (the “Effective Date”).

 

(b)                                 Termination.  This Plan will terminate on the tenth anniversary of the Effective Date.  Awards outstanding as of such date shall not be affected or impaired by the termination of this Plan.

 

(c)                                  Amendment of Plan.  The Committee may amend, alter, or discontinue this Plan (including replacing this Plan with a different plan), but no amendment, alteration or discontinuation shall be made that would materially impair the rights of the Participant with respect to a previously granted Award without such Participant’s consent, except such an

 

16

 

amendment made to comply with applicable law, Applicable Exchange listing standards or accounting rules.  In addition, no amendment shall be made without the approval of the Company’s general meeting of shareholders to the extent that such approval is required by applicable law or the listing standards of the Applicable Exchange.

 

(d)                                 Amendment of Awards.  Subject to Section 4(d), the Committee may unilaterally amend the terms of any Award theretofore granted, but no such amendment shall without the Participant’s consent materially impair the rights of any Participant with respect to an Award, except such an amendment made to cause this Plan or such Award to comply with applicable law, Applicable Exchange listing standards or accounting rules.

 

SECTION 11.                  Unfunded Status of Plan

 

It is intended that this Plan constitute an “unfunded” plan for incentive and deferred compensation.  The Committee may authorize the creation of trusts or other arrangements to meet the obligations created under this Plan to deliver Ordinary Shares or make payments; provided, however, that unless the Committee otherwise determines, the existence of such trusts or other arrangements is consistent with the “unfunded” status of this Plan.

 

SECTION 12.                  General Provisions

 

(a)                                 Conditions for Issuance.  The Committee may require each person purchasing or receiving Ordinary Shares pursuant to an Award to represent to and agree with the Company in writing that such person is acquiring the Ordinary Shares without a view to the distribution thereof.  If the Company were to issue certificates for such Ordinary Shares, such certificates may include any legend that the Committee deems appropriate to reflect any restrictions on transfer.  Notwithstanding any other provision of this Plan or agreements made pursuant hereto, the Company shall not be required to issue or deliver any Ordinary Shares (or certificates therefor) under this Plan prior to fulfillment of all of the following conditions: (i) listing or approval for listing upon notice of issuance, of such Ordinary Shares on the Applicable Exchange; (ii) any registration or other qualification of such Ordinary Shares of the Company under any national, state or local law or regulation, or the maintaining in effect of any such registration or other qualification that the Committee shall, in its absolute discretion upon the advice of counsel, deem necessary or advisable; and (iii) obtaining any other consent, approval, or permit from any national, state or local governmental agency that the Committee shall, in its discretion, determine to be necessary or advisable.

 

(b)                                 Additional Compensation Arrangements.  Nothing contained in this Plan shall prevent the Company or any Subsidiary or Affiliate from adopting other or additional compensation arrangements for its officers, employees, directors or consultants.

 

(c)                                  No Contract of Employment.  This Plan shall not constitute a contract of employment, and adoption of this Plan shall not confer upon any officer or employee any right to continued employment, nor shall it interfere in any way with the right of the Company or any Subsidiary or Affiliate to terminate the employment of any officer or employee at any time.

 

17

 

(d)                                 Required Taxes.  No later than the date as of which an amount first becomes includible in the gross income of a Participant for national, state or local income or employment or other tax purposes with respect to any Award under this Plan, such Participant shall pay to the Company, or make arrangements satisfactory to the Company regarding the payment of, any national, state or local taxes of any kind required by law to be withheld with respect to such amount.  Unless otherwise determined by the Company, withholding obligations may be settled with Ordinary Shares, including Ordinary Shares that are part of the Award that gives rise to the withholding requirement, having a Fair Market Value on the date of withholding equal to the minimum amount required to be withheld for tax purposes, all in accordance with such procedures as the Committee establishes.  The obligations of the Company under this Plan shall be conditional on such payment or arrangements, and the Company and its Subsidiaries and Affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from any payment otherwise due to such Participant.  The Committee may establish such procedures as it deems appropriate, including making irrevocable elections, for the settlement of withholding obligations with Ordinary Shares.

 

(e)                                  Limitation on Dividend Reinvestment and Dividend Equivalents.  Reinvestment of dividends in additional Restricted Stock at the time of any dividend payment, and the payment of Ordinary Shares with respect to dividends to Participants holding Awards of Restricted Stock Units, shall only be permissible if sufficient Ordinary Shares are available under Section 3 for such reinvestment or payment (taking into account then-outstanding Awards).  If sufficient Ordinary Shares are not available for such reinvestment or payment, such reinvestment or payment shall be made in the form of a grant of Restricted Stock Units equal in number to the Ordinary Shares that would have been obtained by such payment or reinvestment, the terms of which Restricted Stock Units shall provide for settlement in cash and for dividend equivalent reinvestment in further Restricted Stock Units on the terms contemplated by this Section 12(e).

 

(f)                                   Designation of Death Beneficiary.  Subject to applicable law, the Committee shall establish such procedures as it deems appropriate for a Participant to designate a beneficiary to whom any amounts payable in the event of such Participant’s death are to be paid, by whom any rights of such Eligible Individual, after such Participant’s death, may be exercised, or to whom any Awards under this Plan may be transferred in the event of such Participant’s death.

 

(g)                                  Subsidiary and Affiliate Employees.  In the case of a grant of an Award to any employee of a Subsidiary or Affiliate, the Company may, if the Committee so directs, issue or transfer the Ordinary Shares, if any, covered by the Award to the applicable Subsidiary or Affiliate, for such lawful consideration as the Committee may specify, upon the condition or understanding that the Subsidiary or Affiliate will transfer the Ordinary Shares to the employee in accordance with the terms of the Award specified by the Committee pursuant to the provisions of this Plan.  All Ordinary Shares underlying Awards that are forfeited or canceled shall revert to the Company.

 

(h)                                 Governing Law and Interpretation.  This Plan and all Awards made and actions taken hereunder shall be governed by and construed in accordance with the laws of the

 

18

 

Netherlands, without reference to principles of conflict of laws.  The captions of this Plan are not part of the provisions hereof and shall have no force or effect.  Whenever the words “include,” “includes” or “including” are used in this Plan, they shall be deemed to be followed by the words “but not limited to” and the word “or” shall be understood to mean “and/or.”  In the event of any conflict between this Plan and any local law or regulation applicable to an Award, the local law or regulation, as applicable, will govern.

 

(i)                                     Non-Transferability.  Except as otherwise provided in Sections 4(i), 5(c)(ii) and 6(b)(ii) or as determined by the Committee, Awards under this Plan are not transferable except by will or by laws of descent and distribution.

 

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