Document:

Exhibit 10.1

 

FORM OF 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.

 

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, unless otherwise provided in an Award Agreement, (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”:  (A) conviction of, or plea of guilty or nolo contendere by, the Participant of a crime under applicable law, a final and binding penalty order issued by a public prosecutor to the Participant for a crime under applicable law, or an out-of-court settlement offered by a public prosecutor and accepted by the Participant for a crime under applicable law, (B) willful and deliberate failure on the part of the Participant to perform his or her employment duties in any material respect, (C) dishonesty in the course of fulfilling the Participant’s employment duties or (D) a material violation of the Company’s ethics and compliance program.  Notwithstanding the general rule of Section 2(c), following a Change in Control, any determination by the Committee as to whether “Cause” exists shall be subject to de novo review.

 

(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 and, to the extent applicable, such determination shall be made in a manner that satisfies Section 409A of the U.S. Tax Code or such other provisions of relevant national laws.

 

(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

 

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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.

 

(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).

 

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(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).

 

(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, (i) if a Participant’s employment with the Company or its Subsidiaries or Affiliates terminates but such Participant continues to provide services to the Company and its Subsidiaries or Affiliates in a non-employee capacity, such change in status shall not be deemed a Termination of Service and (ii) a Participant employed by, or performing services for, a Subsidiary or an Affiliate or a division of the Company or its Subsidiaries or Affiliates shall also be deemed to incur a Termination of Service if, as a result of a Disaffiliation, such Subsidiary, Affiliate or division ceases to be a Subsidiary, Affiliate or division, as the case may be, and the Participant does not immediately thereafter become an employee of, or service provider for, the Company or another Subsidiary or Affiliate.  Temporary absences from employment because of illness, vacation or leave of absence and transfers among the Company or its Subsidiaries and Affiliates shall not be considered Terminations of Service.  Notwithstanding the foregoing provisions of this definition, with respect to any Award that constitutes a “non-qualified deferred compensation plan” within the meaning of Section 409A of the U.S. Tax Code, a Participant shall not be considered to have experienced a “Termination of Service” unless the Participant has experienced a “separation from service” within the meaning of Section 409A of the U.S. Tax Code.

 

(oo)                          “U.S. Tax Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time, and any successor thereto, the U.S. Treasury Regulations thereunder and other relevant interpretive guidance issued by the U.S. Internal Revenue Service or the U.S. Treasury

 

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Department.  Reference to any specific section of the U.S. Tax Code shall be deemed to include such regulations and guidance, as well as any successor provision of the U.S. Tax Code.

 

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;

 

(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;

 

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(viii)                        To adopt, alter and repeal such administrative rules, guidelines and practices governing this Plan as it shall from time to time deem advisable;

 

(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.

 

(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.  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.  The

 

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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 [      ], of which no more than [      ] Ordinary Shares may be granted to directors of the Company.

 

(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 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

 

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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 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 adjustments made pursuant to this Section 3(c) to Awards that are considered “deferred compensation” within the meaning of Section 409A of the U.S. Tax Code shall be made in compliance with the requirements of Section 409A of the U.S. Tax Code.  Any adjustments made pursuant to this Section 3(c) to Awards that are not considered “deferred compensation” subject to Section 409A of the U.S. Tax Code shall be made in such a manner as to ensure that after such adjustments, either (A) the Awards continue not to be subject to Section 409A of the U.S. Tax Code or (B) that does not result in the imposition of any penalty taxes under Section 409A of the U.S. Tax Code in respect of such Awards.

 

(vi)                              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.

 

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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 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.

 

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(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 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

 

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Participant’s family members, whether directly or indirectly or by means of a trust or partnership or otherwise (for purposes of this Plan, unless otherwise determined by the Committee, “family member” shall have the meaning given to such term in General Instructions A.1(a)(5) to Form S-8 under the U.S. Securities Act of 1933, as amended, and any successor thereto).  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 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.

 

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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 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.

 

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(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 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.

 

13

 

(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.

 

(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

 

14

 

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 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

 

15

 

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 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

 

16

 

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 amendment made to comply with applicable law, including Section 409A of the U.S. Tax Code, 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

 

17

 

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.

 

(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

 

18

 

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.  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 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.”

 

(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.

 

(j)                                    Section 409A of the U.S. Tax Code.  It is the intention of the Company that no Award shall be “deferred compensation” subject to Section 409A of the U.S. Tax Code, unless and to the extent that the Committee specifically determines otherwise as provided in this Section 12(j), and this Plan and the terms and conditions of all Awards shall be interpreted accordingly.  The terms and conditions governing any Awards that the Committee determines

 

19

 

will be subject to Section 409A of the U.S. Tax Code, including any rules for elective or mandatory deferral of the delivery of cash or Ordinary Shares pursuant thereto and any rules regarding treatment of such Awards in the event of a Change in Control, shall be set forth in the applicable Award Agreement, and shall comply in all respects with Section 409A of the U.S. Tax Code.  Notwithstanding any other provision of this Plan to the contrary, with respect to any Award that constitutes a “nonqualified deferred compensation plan” subject to Section 409A of the U.S. Tax Code, if the Participant is a “specified employee” within the meaning of Section 409A of the U.S. Tax Code, any payments (whether in cash, Ordinary Shares or other property) to be made with respect to the Award upon the Participant’s Termination of Service shall be delayed until the earlier of (A) the first day of the seventh month following the Participant’s Termination of Service and (B) the Participant’s death.  Each payment under any Award shall be treated as a separate payment for purposes of Section 409A of the U.S. Tax Code.  In no event may a Participant, directly or indirectly, designate the calendar year of any payment to be made under any Award.

 

20Exhibit 10.45

 

 

INDEMNIFICATION AGREEMENT

 

THIS AGREEMENT IS MADE AND ENTERED INTO AS OF [DATE] BETWEEN

 

1.                                     CNOVA N.V., a public limited liability company (naamloze vennootschap met beperkte aansprakelijkheid) organized under the laws of the Netherlands, having its corporate seat at Amsterdam and its address at Professor Dr Dorgelolaan 30 D, 5613AM, Eindhoven, registered with the trade register of the Dutch Chamber of Commerce under number 60776676 (the “Company”), and

 

2.                                     [name], an individual, born on [date] in [city], currently residing at [address] (the “Indemnitee”).

 

The Company and the Indemnitee are hereinafter jointly also referred to as the “Parties” and each individually as a “Party”.

 

WHEREAS

 

A.                                   The articles of association of the Company contain an indemnification for current and former Directors and current and former Non-Board Co-CEOs and provide that the board of directors of the Company may stipulate additional terms, conditions and restrictions in relation to the indemnification. Further, the indemnification for current and former Directors and current and former Non-Board Co-CEOs also applies mutatis mutandis to such other current and former officers and employees of the Company as the board of directors of the Company may determine in its discretion.

 

B.                                   Both the Company and the Indemnitee recognize the increased risk of expensive and time-consuming litigation and other claims being asserted against directors and officers of companies and that highly competent and experienced persons have become more reluctant to serve or continue to serve companies as directors or officers unless they are provided with adequate protection through insurance and/or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf companies.

 

 

C.                                   The board of directors of the Company (which includes both executive and non-executive directors) has determined that:

 

a.                                      an increased difficulty in attracting and retaining highly competent persons, such as the Indemnitee, is detrimental to the best interests of the Company and its business;

 

b.                                      the Company may not be able - now or in the future - to obtain and keep liability insurance with full and adequate coverage for directors and officers;

 

c.                                       it is reasonable, prudent and in the best interests of the Company and its business to, in furtherance of the Company’s articles of association, enter into this Agreement to (i) provide for the indemnification of and advancement of expenses to the Indemnitee in order to provide increased certainty of protection to the Indemnitee and induce the Indemnitee to provide and continue to provide services to the Company, and (ii) pursuant to article 17.3 [in conjunction with article 17.4] of the Company’s articles of association, stipulate additional terms, conditions and restrictions as set forth in this Agreement in relation to such indemnification.

 

D.                                   The Indemnitee [serves/has agreed to serve/has been requested by the Company to serve] as a [Director / Non-Board Co-CEO / Officer / Employee [insert title/position]].

 

THE PARTIES NOW HEREBY AGREE AS FOLLOWS

 

1                                        DEFINITIONS AND INTERPRETATION

 

1.1                              The following capitalized terms and expressions in this Agreement shall have the following meanings:

 

	
Advance
    	
 
    	
an advance as   referred to in Clause 3.1;
    
	
 
    	
 
    	
 
    
	
Agreement
    	
 
    	
this indemnification   agreement;
    
	
 
    	
 
    	
 
    
	
Board
    	
 
    	
the Company’s board   of directors;
    
	
 
    	
 
    	
 
    
	
Business   Day
    	
 
    	
a day (other than a   Saturday or Sunday) on which banks are generally open in the Netherlands for   the conduct of normal business;
    

 

 

	
Clause
    	
 
    	
a clause of this   Agreement;
    
	
 
    	
 
    	
 
    
	
Director
    	
 
    	
a member of the   Board;
    
	
 
    	
 
    	
 
    
	
Disinterested   Director
    	
 
    	
a Director who is not   and was not a party to the Proceeding in respect of which indemnification is   sought by the Indemnitee;
    
	
 
    	
 
    	
 
    
	
Employee
    	
 
    	
an employee of the   Company
    
	
 
    	
 
    	
 
    
	
Expenses
    	
 
    	
all attorney’s fees,   retainers, court costs, transcript costs, fees of experts, witness fees,   travel expenses, printing and binding costs, telephone charges, postage and   all other actual out of pocket expenses, not including any compensation for   time spent by the Indemnitee, any settlement payments or any amount of   judgments, arbitral awards or fines;
    
	
 
    	
 
    	
 
    
	
Independent   Counsel
    	
 
    	
an attorney or firm   of attorneys that is experienced in matters of corporation law in the   appropriate jurisdictions and neither currently is, nor in the past three   (3) years has been, retained to represent: (i) the Company or the   Indemnitee in any matter material to either such party (other than with   respect to matters concerning the Indemnitee under this Agreement and/or the   indemnification provisions of the Company’s articles of association, or of   other indemnitees under similar indemnification agreements), or (ii) any   other party to the Proceeding giving rise to a claim for indemnification   hereunder. Notwithstanding the foregoing, the term “Independent Counsel” does   not include any person who, under the applicable standards of professional   conduct then prevailing, would have a conflict of interests in representing   either the Company or the Indemnitee in an action to determine the   Indemnitee’s rights under this Agreement;
    
	
 
    	
 
    	
 
    
	
Liabilities
    	
 
    	
any financial losses   or damages;
    
	
 
    	
 
    	
 
    
	
Non-Board   Co-CEO
    	
 
    	
a co-CEO of the   Company who is not a Director;
    

 

 

	
Officer
    	
 
    	
an officer of the   Company who is not a Director
    
	
 
    	
 
    	
 
    
	
Proceeding
    	
 
    	
any threatened,   pending or completed suit, claim, action or legal proceedings, whether civil,   criminal, administrative or investigative and whether formal or informal.
    

 

1.2                              For the purpose of this Agreement:

 

a.                                      Gender and number Words denoting the singular shall include the plural and vice versa, unless specifically defined otherwise. Words denoting one gender shall include another gender.

 

b.                                      Reference to include The words “include”, “included” or “including” are used to indicate that the matters listed are not a complete enumeration of all matters covered and will be construed as meaning including without limitation except to the extent specifically provided otherwise in this Agreement.

 

c.                                       Headings The headings are for convenience or reference only and are not to affect the construction of this Agreement or to be taken into consideration in the interpretation of this Agreement.

 

d.                                      Days Unless the context clearly indicates a contrary intention, when any number of days is prescribed in this Agreement, it must be calculated exclusively of the first and inclusively of the last day unless the last day falls on a day other than a Business Day, in which case the last day will be the next succeeding day which is a Business Day.

 

e.                                       Drafting party No provision of this Agreement shall be interpreted adversely against a Party solely because that Party was responsible for drafting that particular provision. It is acknowledged that representatives of each Party have participated in the drafting and negotiation of this Agreement.

 

f.                                        Language If there is a discrepancy between an English language word and a Dutch language word used to clarify it and then to the extent of the conflict only, the meaning of the Dutch language word shall prevail.

 

g.                                       Dutch concepts References to any Dutch legal concept in any jurisdiction other than the Netherlands shall be deemed to include the concept which in that jurisdiction most closely approximates the Dutch legal concept.

 

h.                                      No right to be retained Nothing in this Agreement shall be 

 

 

construed as giving the Indemnitee any right to be retained in the employ or otherwise in the service of the Company.

 

i.                                          Final and binding decisions Any reference in this Agreement to a final and binding decision of a court or arbitral tribunal, shall mean: (a) with respect to a court, a final and binding, full or partial, decision of a court (geheel of gedeeltelijk gerechtelijk eindvonnis met gezag van gewijsde), without possibility for appeal, and (b) with respect to an arbitral tribunal, a final and binding, full or partial, decision of an arbitral tribunal (geheel of gedeeltelijk arbitraal eindvonnis met gezag van gewijsde), without possibility for arbitral appeal to the same or another arbitral tribunal.

 

2                                        INDEMNIFICATION

 

2.1                              The Company shall indemnify the Indemnitee against:

 

a.                                      any Liabilities incurred by the Indemnitee; and

 

b.                                      any Expenses reasonably paid or incurred by the Indemnitee in connection with any Proceeding,

 

to the extent this relates to his position as a Director, former Director, Non-Board Co-CEO, former Non-Board Co-CEO, Employee, former Employee, Officer or former Officer, in each case to the fullest extent permitted by applicable law.

 

2.2                              Notwithstanding any other provision of this Agreement, no indemnification shall be given to the Indemnitee:

 

a.                                      if a Dutch court has established, without possibility for appeal, that the acts or omissions of the Indemnitee that led to the Liabilities or Proceeding as described in Clause 2.1 result from an improper performance of his duties as a Director, former Director, Non-Board Co-CEO, former Non-Board Co-CEO, Employee, former Employee, Officer, or former Officer, as applicable, or from an unlawful or illegal act;

 

b.                                      to the extent that his Liabilities and Expenses are covered by an insurance and the insurer has settled these Liabilities and Expenses (or has indicated that it would do so); and

 

c.                                       in connection with any Proceeding (or any part of any Proceeding) initiated by the Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by the Indemnitee against the Company or its Directors, Officers, Employees or person indemnified by the Company, unless (i) the 

 

 

Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation, (ii) such Proceeding or part of a Proceeding is brought by the Indemnitee to interpret or enforce this Agreement or any related indemnification obligations in a Company policy of insurance or the Company’s governing documents (unless and to the extent a competent court or arbitral tribunal with jurisdiction over such action determines, in a final and binding decision, that the material assertions or defences asserted by the Indemnitee in such action were made in bad faith or were frivolous, however the indemnification shall in any event not extend to payments to be made by the Indemnitee under any order for costs given in such Proceeding) or (iii) the Company voluntarily elects to provide the indemnification, in its sole discretion, and without any obligation to do so, if and to the extent permitted by applicable law.

 

2.3                              The exclusion of Clause 2.2(a) shall apply mutatis mutandis if (and to the extent) a similar decision has been rendered by another competent court or arbitral tribunal.

 

2.4                              For the avoidance of doubt, unlawful acts and improper performance of duties as referred to in Clause 2.2(a) shall include wilful (opzettelijk), intentionally reckless (bewust roekeloos) or seriously culpable (ernstig verwijtbaar) conduct of the Indemnitee.

 

2.5                              Under no circumstances will an Indemnitee be indemnified for losses incurred with respect to interests held by the Indemnitee in securities of the Company or any similar incidental or consequential Liabilities or Expenses.

 

3                                        ADVANCEMENT OF EXPENSES

 

3.1                              Notwithstanding Clause 4.7 and any other provision of this Agreement (but subject to the entirety of this Clause 3, including Clause 3.2), the Company shall advance or reimburse all Expenses reasonably paid or incurred by the Indemnitee in connection with any Proceeding to the extent this relates to his position as a Director, former Director, Non-Board Co-CEO, former Non-Board Co-CEO, Employee, former Employee, Officer or former Officer ultimately within ten (10) Business Days after receipt by the Company of a statement or statements from the Indemnitee requesting such advance (an “Advance”) from time to time, 

 

 

or within such shorter period as indicated by the Indemnitee if necessary to secure the Indemnitee’s rights in such Proceedings, whether prior to or after final resolution of such Proceeding. Such statement or statements shall reasonably evidence the Expenses reasonably paid or incurred by the Indemnitee and shall include or be preceded or accompanied by a binding and irrevocable written undertaking by or on behalf of the Indemnitee to immediately repay such Advance if it is ultimately determined by a competent court or arbitral tribunal, as applicable, in a final and binding decision, that the Indemnitee is not entitled to be indemnified for such Expenses. It is understood between the Company and the Indemnitee, and the Indemnitee hereby explicitly accepts (to the extent necessary, in advance), that any future Advance pursuant to this Agreement is made to the Indemnitee under the condition that the Indemnitee shall repay any such Advance if and to the extent that it is ultimately determined by a competent court or arbitral tribunal, as applicable, in a final and binding decision, that the Indemnitee is not entitled to be indemnified by the Company for the Expense to which the Advance relates. Any Advances and undertakings to repay pursuant to this Clause 3.1 shall be unsecured and interest free.

 

3.2                              The Indemnitee will not be entitled to any Advance in connection with any of the matters for which indemnity is excluded pursuant to Clause 2.2.

 

4                                        DETERMINATION OF ENTITLEMENT TO AND PAYMENT OF INDEMNIFICATION

 

4.1                              The Indemnitee may deliver to the Company a written request to have the Company indemnify and hold harmless the Indemnitee in accordance with this Agreement. Subject to Clause 4.9, such request may be delivered from time to time and at such time(s) as the Indemnitee deems appropriate in his or her sole discretion. Such request shall include such relevant documentation and information as is reasonably available to the Indemnitee.  Following such a written request for indemnification, the Indemnitee’s entitlement to indemnification shall be determined in accordance with Clause 4.2.

 

4.2                              Upon written request by the Indemnitee for indemnification pursuant to Clause 4.1, an initial determination with respect to the Indemnitee’s entitlement thereto under this Agreement will be made by one of the following, at the election of the Company:

 

 

a.                                     so long as there are Disinterested Directors with respect to such Proceeding, a majority vote of the Disinterested Directors,

 

b.                                     so long as there are Disinterested Directors with respect to such Proceeding, a committee of such Disinterested Directors designated by a majority vote of such Disinterested Directors, or

 

c.                                       Independent Counsel in a written opinion delivered to the Board, a copy of which will also be delivered to the Indemnitee.

 

The specific election by the Company in any given case to use the person, persons or entity enumerated above to make such determination is to be included in a written notification to the Indemnitee. The person, persons or entity chosen to make such initial determination under this Agreement of the Indemnitee’s entitlement to indemnification shall act reasonably and in good faith in making such determination.

 

4.3                              Any determination pursuant to Clause 4.2 shall not in any way (i) preclude the Company from (a) arguing before a competent court or arbitral tribunal, as applicable, that the Indemnitee is not entitled to be indemnified by the Company hereunder, and (b) recovering any amounts paid to the Indemnitee under this Agreement (including Advances) following a determination by a competent court or arbitral tribunal, as applicable, in a final and binding decision, that the Indemnitee is not entitled to be indemnified by the Company hereunder, or (ii) limit or otherwise adversely affect any right or the position of the Company in any proceedings before a competent court or arbitral tribunal, as applicable. A competent court or arbitral tribunal, as applicable, shall not in any way be bound by the determination made pursuant to Clause 4.2.

 

4.4                              If the determination pursuant to Clause 4.2 will be made by an Independent Counsel, the Independent Counsel will be selected by the Company and the Company will give written notice to the Indemnitee advising the Indemnitee of the identity of the Independent Counsel so selected. The Indemnitee may, within five (5) Business Days after such written notice of selection is given, deliver to the Company a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in this Agreement, and the objection will set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected will act as Independent Counsel. If a written objection is made and substantiated, the Independent Counsel selected may not serve as Independent Counsel unless and until such objection is 

 

 

withdrawn or a competent court or arbitral tribunal, as applicable, has determined that such objection is without merit. If the determination pursuant to Clause 4.2 will be made by an Independent Counsel, and within fifteen (15) Business Days after submission by the Indemnitee of a written request for indemnification pursuant to Clause 4.1 no Independent Counsel is selected, or an Independent Counsel for which an objection thereto has been properly made remains unresolved, either the Company or the Indemnitee may, at the Company’s expense, petition a competent court or arbitral tribunal, as applicable, for resolution of any objection which has been made by the Indemnitee to the Company’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the court or by such other person as the court may designate. The Company will pay any and all reasonable and necessary fees and expenses incurred by such selected Independent Counsel in connection with the determination pursuant to Clause 4.2.

 

4.5                              In making a determination pursuant to Clause 4.2, the person, persons or entity making such determination will presume that the Indemnitee is entitled to indemnification under this Agreement and anyone seeking to overcome this presumption will have the burden of proof.

 

4.6                              The Company will use all reasonable efforts to cause any determination required to be made pursuant to Clause 4.2 to be made as promptly as practicable after the Indemnitee has submitted a written request for indemnification pursuant to Clause 4.1.

 

4.7                              All payments of Expenses and other amounts by the Company to the Indemnitee pursuant to this Agreement will be made as soon as practicable after a written request or demand therefor by the Indemnitee is received by the Company, but in no event later than ten (10) Business Days after such request or demand is received or such later date as it has been found in the initial determination pursuant to Clause 4.2 that the Indemnitee shall be indemnified under this Agreement; provided, however, that an Advance will be made within the time provided in Clause 3.1. The written request of the Indemnitee for indemnification and payments shall constitute a binding and irrevocable undertaking of the Indemnitee towards the Company providing that the Indemnitee undertakes (verplicht zich ertoe) to the fullest extent allowed by applicable law to repay any such indemnification payment if and to the extent that it is ultimately determined by a competent court or arbitral tribunal, as applicable, in a final and binding decision, that the 

 

 

Indemnitee is not entitled to be indemnified by the Company under this Agreement. It is understood between the Company and the Indemnitee, and the Indemnitee hereby explicitly accepts (to the extent necessary, in advance), that any future indemnification payment pursuant to this Agreement is made to the Indemnitee under the condition that the Indemnitee shall repay any such indemnification payment if and to the extent that it is ultimately determined by a competent court or arbitral tribunal, as applicable, in a final and binding decision, that the Indemnitee is not entitled to be indemnified by the Company under this Agreement.

 

4.8                              The Indemnitee will fully cooperate with the person, persons or entity making a determination pursuant to Clause 4.2, including providing to such person, persons or entity, upon reasonable advance request, any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to the Indemnitee and reasonably relevant to such determination. Any actual and reasonable out of pocket expenses incurred by the Indemnitee in so cooperating with the person, persons or entity making such determination will be borne by the Company, unless it is ultimately determined by a competent court or arbitral tribunal, as applicable, in a final and binding decision, that the Indemnitee is not entitled to indemnification under this Agreement.

 

4.9                              The Indemnitee will in any event be required to submit any request for indemnification pursuant to this Clause 4 within a reasonable time, not to exceed one (1) year, after any judgment, order, settlement, dismissal, arbitration award, conviction, or other full or partial final determination or disposition of the Proceeding. The failure to timely submit the request to the Company shall not relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise, unless and only to the extent that such failure or delay adversely prejudices the Company.

 

5                                        NOTIFICATION AND DEFENSE OF PROCEEDINGS

 

5.1                              The Indemnitee agrees to promptly notify the Company in writing upon receipt of a complaint, demand letter, writ of summons, or other document in relation to (or upon otherwise becoming aware of) any Proceeding against the Indemnitee for which indemnification will or could be sought under this Agreement. The failure to notify the Company

 

 

shall not relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise, unless and only to the extent that such failure or delay adversely prejudices the Company.

 

5.2                              The Company will be entitled to participate in any Proceeding notified to the Company in accordance with Clause 5.1 and any other Proceeding against the Indemnitee for which indemnification will or, in the reasonable determination of the Company, could be sought under this Agreement. Any participation of the Company in any Proceeding in accordance with the previous sentence shall not in any way limit or otherwise adversely affect the right of the Company to dispute the Indemnitee’s right to indemnification hereunder.

 

5.3                              With respect to any Proceeding notified to the Company in accordance with Clause 5.1, the Company shall be entitled to assume the defense thereof, with counsel selected by the Company and reasonably satisfactory to the Indemnitee. The Company shall consult the Indemnitee on the conduct of the defense. The Company shall, however, have the right to conduct the defense as it sees fit in its sole discretion, provided that the Company shall conduct the defense in good faith and in a diligent manner. The Indemnitee shall have the right to employ its own counsel in such Proceeding, but any fees and expenses of such counsel incurred after notice from the Company of its assumption of the defense thereof shall be at the Indemnitee’s expense, unless: (i) the employment of counsel by the Indemnitee has been authorized in writing by the Company; (ii) an actual conflict of interest arises between the Company and the Indemnitee in the conduct of such defense or representation by such counsel retained by the Company and the Company has not appointed new counsel who does not have a conflict of interest; or (iii) the Company does not continue to retain counsel and the Company has not appointed new counsel reasonably satisfactory to the Indemnitee to assume the defense of such Proceeding, in which cases the reasonable fees and expenses of counsel shall be at the expense of the Company.

 

5.4                              The Company shall have no obligation to indemnify the Indemnitee under this Agreement for any amounts paid or expenses incurred in connection with a settlement of any Proceeding effected without the Company’s prior written consent, which consent shall not be unreasonably withheld.

 

5.5                              The Company shall not, without the prior written consent of the 

 

 

Indemnitee, consent to the entry of any judgment or award against the Indemnitee or enter into any settlement or compromise which (i) contains any non-monetary remedy imposed on the Indemnitee or a Liability for which the Indemnitee is not wholly indemnified under this Agreement or (ii) with respect to any Proceeding with respect to which the Indemnitee is made a party or a participant or is otherwise entitled to seek indemnification hereunder, does not include a full and unconditional release of the Indemnitee from all liability in respect of such Proceeding. Neither the Company nor the Indemnitee will unreasonably withhold its consent to any proposed settlement.

 

5.6                              The Indemnitee shall fully cooperate with the Company and its counsel and shall give the Company and its counsel, at the Company’s expense, all information and access to documents and files, and to the Indemnitee’s advisors and representatives, to the extent within the Indemnitee’s power, in each case as may be reasonably requested by the Company or its counsel with respect to any Proceeding that was (or should have been) notified to the Company in accordance with Clause 5.1.

 

6                                         LIABILITY INSURANCE

 

6.1                              The Company will use its reasonable endeavours to obtain and maintain, either in its own name or through an umbrella insurance policy of Casino, Guichard-Perrachon S.A., a policy or policies providing liability insurance to the Indemnitee with coverage up to such amount as will be determined by the Board for any Liabilities incurred by the Indemnitee and any expense reasonably paid or incurred by the Indemnitee in connection with any Proceeding, to the extent such Liabilities and Expenses relate to his position as a Director, former Director, Non-Board Co-CEO, former Non-Board Co-CEO, Employee, former Employee, Officer or former Officer.

 

6.2                              The Company undertakes to give prompt written notice of the commencement of any claim hereunder to its insurers in accordance with the procedures set forth in each of the policies providing liability insurance to the Indemnitee to the extent that, in the reasonable determination of the Company, insurance coverage is available in respect of such claim. Upon written request by the Indemnitee, the Company shall provide the Indemnitee with a copy of such notice. The Company shall thereafter diligently take all actions reasonably necessary under the circumstances to cause such insurers to pay, on behalf of the Indemnitee, 

 

 

all amounts payable as a result of such Proceeding in accordance with the terms of such policies. This Clause 6.2 shall not affect the Company’s authority to freely negotiate or reach any compromise with the insurer that is reasonable in the Company’s sole discretion, provided that the Company shall act in good faith and in a diligent manner.

 

6.3                              The Indemnitee will cooperate in all ways with the Company and its counsel and, if required by the Company, with the insurers issuing the Company’s directors’ and officers’ or other relevant liability insurance, to the extent the Company deems such cooperation reasonably necessary.

 

7                                        NON-EXCLUSIVITY

 

The rights and remedies of the Indemnitee hereunder shall not be deemed exclusive of any other rights or remedies the Indemnitee may at any time have under applicable law, any agreement other than this Agreement, any insurance policy or otherwise, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The exercise of any right or remedy hereunder, or otherwise, shall not prevent the concurrent exercise of any other right or remedy.

 

8                                        SUBROGATION

 

8.1                              In the event of any payment by the Company under this Agreement, the Company will be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee with respect thereto, including rights under any policy of insurance or other indemnity agreement or obligation, and the Indemnitee will execute all papers required and take all action reasonably necessary to secure such rights, including execution of such documents as are necessary to enable the Company to enforce such rights inside or outside of court.

 

8.2                              To the extent the subrogation referred to in Clause 8.1 is not possible for whatever reason, the Indemnitee shall, at the request and expense of the Company, take all reasonable steps to enforce such right of recovery in his own name (credit being given to the Company for any sum recovered by the Indemnitee by reason of such right of recovery) or assign the right of recovery to the Company.

 

 

9                                        PARTIAL INDEMNIFICATION

 

If the Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of the Liabilities or Expenses incurred by him in the investigation, defense, appeal or settlement of any Proceeding but not, however, for the total amount thereof, the Company shall nevertheless indemnify the Indemnitee for the portion of such Liabilities or Expenses to which the Indemnitee is entitled. Moreover, notwithstanding any other provision of this Agreement, to the extent that the Indemnitee has been successful on the merits or otherwise in defense of any or all claims, issues or matters relating in whole or in part to an indemnifiable event, occurrence or matter hereunder, including dismissal without prejudice, the Indemnitee shall be indemnified against all Expenses actually and reasonably incurred in connection with such specific defenses on which Indemnitee prevailed.

 

10                                 NO DUPLICATIVE PAYMENTS

 

10.1                       The Company shall not be required under this Agreement to make any payment of amounts otherwise indemnifiable hereunder, if and to the extent that the Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

 

10.2                       If and to the extent the Indemnitee receives a payment under any insurance policy, contract, agreement (other than this Agreement) or otherwise after the Company has indemnified the Indemnitee for a Liability or expense, the Indemnitee shall reimburse to the Company the amounts received from the Company under this Agreement in connection with such Liability or expense promptly upon receipt of such payment by the Indemnitee.

 

11                                 DURATION OF AGREEMENT

 

This Agreement shall remain in effect until and terminate upon the latest of (a) the statute of limitations applicable to any claim that could be asserted against the Indemnitee with respect to which the Indemnitee is entitled to indemnification under this Agreement, (b) ten years after the date that the Indemnitee has ceased to serve as a Director or Non-Board Co-CEO or Officer or Employee, or (c) if, at the later of the dates referred to in (a) and (b) above, there is a pending Proceeding in respect of which the Indemnitee is granted rights of indemnification hereunder or 

 

 

there is a pending Proceeding in connection with this Agreement, one year after the final termination of such Proceeding (including any and all appeals).

 

12                                 MISCELLANEOUS PROVISIONS

 

12.1                       Entire Agreement

 

This Agreement contains the entire agreement between the Parties relating to the subject matter covered hereby and supersedes any previous oral or written agreements, arrangements and understandings between the Parties, provided however that it is agreed that the provisions contained in this Agreement are a supplement to, and not a substitute for, any provisions regarding the same subject matter contained in the Company’s articles of association as they may read from time to time and any employment or similar agreement between the Parties.

 

12.2                       Invalid provisions

 

In the event that a provision of this Agreement is null and void or unenforceable (either in whole or in part), the remainder of this Agreement shall continue to be effective to the extent that, given this Agreement’s substance and purpose, such remainder is not inextricably related to the null and void or unenforceable provision. The Parties shall make every effort to reach agreement on a new provision which differs as little as possible from the null and void or unenforceable provision, taking into account the substance and purpose of this Agreement.

 

12.3                       Amendment

 

No amendment to this Agreement shall have any force or effect unless and until it is in writing and signed by the Parties.

 

12.4                       No implied waiver; no forfeit of rights

 

12.4.1             Any waiver under this Agreement must be given by written notice to that effect.

 

12.4.2             Where a Party does not exercise any right under this Agreement (which shall include the granting by a Party to any other Party of an extension of time in which to perform its obligations under any provision hereof), this 

 

 

shall not be deemed to constitute a forfeit of any such rights (rechtsverwerking). The rights of each Party under this Agreement may be exercised as often as necessary and are cumulative and not exclusive of rights and remedies provided by law.

 

12.5                       Third party stipulations

 

This Agreement does not grant any rights to any third party (derdenbedingen), including, for the avoidance of doubt, any insurer.

 

12.6                       Notice

 

12.6.1             Any notice or other communication under or in connection with this Agreement shall be in writing and delivered by hand or sent by registered mail or sent as an email to the relevant email address set out in Clause 12.6.2. Delivery by courier shall be regarded as delivery by hand.

 

12.6.2             Notices under this Agreement shall be sent to the addresses of the Parties as specified below:

 

if to the Company:

 

Cnova N.V.

 

Attn:                                                                                                                                                                 General Counsel

Address:                                                                                                                                              Professor Dr Dorgelolaan 30 D

5613 AM  EINDHOVEN

The Netherlands

 

With copy to:

 

NautaDutilh N.V.

 

Attn:                                                                                                                                                                 Mr. C.J.C. de Brauw

Email address:                                                                                                             Christiaan.deBrauw@nautadutilh.com

Address:                                                                                                                                              Strawinskylaan 1999

1077 XV  AMSTERDAM

The Netherlands

 

if to the Indemnitee:

 

to the address set forth below the Indemnitee’s signature to this Agreement;

 

or such other address as the Party to be given notice may have notified to the other Party from time to time in accordance with this Clause for that 

 

 

purpose.

 

12.6.3            A notice shall be effective, in the absence of earlier receipt:

 

a.                                      if delivered by hand to the relevant address referred to in Clause 12.6.2, at the time of delivery;

 

b.                                      if sent by registered mail to the relevant address referred to in Clause 12.6.2 and that address is in the same country as the sender, at the expiration of two Business Days after the time of posting;

 

c.                                       if sent by registered mail to the relevant address referred to in Clause 12.6.2 and that address is not in the same country as the sender, at the expiration of seven Business Days after the time of posting;

 

d.                                      if sent by email to the relevant email address referred to in Clause 12.6.2, one Business Day after the time of transmission;

 

12.6.4             If a notice or communication would otherwise be deemed to have been delivered outside normal business hours (being 9:00 a.m. to 5:00 p.m. on a Business Day) in the time zone of the territory of the recipient under the preceding provisions of this Clause 12.6, it shall be deemed to have been delivered at the next opening of such normal business hours in the territory of the recipient.

 

12.6.5             In proving service of the notice or communication, it shall be sufficient to show that delivery by hand was made or that the envelope containing the notice or communication was properly addressed and posted as registered mail or that the email was recorded in the IT system of the sender as having been sent and that the sender did not receive within twelve hours of sending the email an error message indicating failure to deliver. For the avoidance of doubt, a notification that the recipient of an email is out of the office, or no longer working at an organisation, shall not constitute an error message indicating failure to deliver.

 

12.6.6             The provisions of this Clause 12.6 shall not apply in relation to the service of documents for the purpose of litigation.

 

12.7                       Counterparts

 

This Agreement may be executed in two or more counterparts (including by facsimile signature), each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement.

 

 

12.8                      Assignment; successors

 

12.8.1             No Party may assign this Agreement (contractsoverneming) or assign any of its rights hereunder without the prior written consent of the other Party.

 

12.8.2             This Agreement shall be binding upon the Company and its successors and shall inure to the benefit of the Indemnitee and the Indemnitee’s heirs, executors and administrators. The Company shall require and cause any of its successors (whether direct or indirect by merger, demerger or otherwise) in respect of this Agreement, to confirm that it has assumed the Company’s rights and obligations under this Agreement and that it agrees to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

 

12.9                       Choice of law

 

This Agreement shall be exclusively governed by and construed in accordance with the laws of the Netherlands, without giving effect to any conflict of laws principles.

 

12.10                Disputes

 

The Parties agree that any dispute in connection with this Agreement or any agreement resulting therefrom shall be exclusively and finally settled in accordance with the Arbitration Rules of the Netherlands Arbitration Institute (Nederlands Arbitrage Instituut, “NAI”) as at present in force.

 

a.                                     The arbitral proceedings and all documents delivered to or by the arbitrators shall be conducted in English.

 

b.                                     The place of arbitration shall be Amsterdam, the Netherlands.

 

c.                                      The arbitral tribunal shall comprise three arbitrators. Each Party shall appoint 1 (one) arbitrator and the NAI shall appoint a third arbitrator who shall be the chairman of the arbitration tribunal. If a Party has not appointed an arbitrator within 30 (thirty) days of having requested or received notice of the arbitration, such arbitrator shall be appointed by the NAI.

 

 

d.                                     The arbitral tribunal shall decide in accordance with the rules of law.

 

e.                                      The Parties shall not be precluded from applying for injunctive relief in summary proceedings (kort geding) before any competent court instead of arbitrators.

 

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This Agreement has been entered into on the date first written above.

 

 

	
For and on behalf of
    	
 
    
	
CNOVA N.V.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    
	
 
    	
 
    
	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
For and on behalf of
    	
 
    
	
INDEMNITEE
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
 
    
	
 
    	
 
    
	
Address:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Email:

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