Document:

Exhibit 10.4

 

FRAMEWORK AGREEMENT

This FRAMEWORK AGREEMENT (this “Agreement”), effective as of May 1, 2018 (the “Effective Date”), is entered into by and among BUNGE LIMITED, a company incorporated under the laws of Bermuda (“BL”), BUNGE LIMITED FINANCE CORP., a Delaware corporation (the “Revolving Borrower”),  USINA MOEMA AÇÚCAR E ÁLCOOL S.A., a Brazil limited liability company (“Usina Moema”), PEDRO AFONSO AÇÚCAR & BIOENERGIA LTDA., a Brazil limited liability company (“Usina Pedro Afonso”), AGROINDUSTRIAL SANTA JULIANA LTDA., a Brazil limited liability company (“Usina Santa Juliana”), MONTEVERDE AGRO-ENERGETICA S.A., a Brazil sociedade anônima (“Usina Monteverde”),  USINA GUARIROBA LTDA., a Brazil limited liability company agreement (“Usina Guariroba”), USINA ITAPAGIPE AÇÚCAR E ÁLCOOL LTDA., a Brazil limited liability company (“Usina Itapagipe”), USINA FRUTAL AÇÚCAR E ÁLCOOL LTDA., a Brazil limited liability company (“Usina Frutal”), and USINA OUROESTE AÇÚCAR E ÁLCOOL LTDA., a Brazil limited liability company (“Usina Ouroeste”); Usina Moema, Usina Pedro Afonso, Usina Santa Juliana, Usina Monteverde, Usina Guariroba, Usina Itapagipe, Usina Frutal and Usina Ouroeste  shall each be referred to individually as a “Pre-Export Borrower” and collectively, as the “Pre-Export Borrowers”), the Revolving Lenders (as defined below), the Pre-Export Lenders (as defined below), and SUMITOMO MITSUI BANKING CORPORATION, as administrative agent under that certain Revolving Credit Agreement described below (in such capacity, the “Revolving Administrative Agent”) and that certain Pre-Export Credit Agreement described below (in such capacity, the “Pre-Export Administrative Agent”).  BL, the Revolving Borrower, the Pre-Export Borrowers, the Revolving Lenders, the Pre-Export Lenders, the Revolving Administrative Agent and the Pre-Export Administrative Agent are collectively referred to herein as the “Parties” and each, a “Party.”

 

RECITALS

 

WHEREAS, pursuant to that certain Revolving Credit Agreement, dated as of the date hereof, by and among the Revolving Borrower, as borrower, the banks and other financial institutions or entities from time to time parties thereto as lenders (each, a “Revolving Lender” and collectively, the “Revolving Lenders”) and the Revolving Administrative Agent, a copy of which is attached hereto as Exhibit A (the “Revolving Credit Agreement”), the Revolving Lenders have agreed to make revolving loans (each, a “Revolving Loan”) to the Revolving Borrower from time to time;

 

WHEREAS, BL and the Revolving Borrower may elect, upon the satisfaction of the Conditions to Conversion (as defined below), to convert the aggregate amount of Revolving Commitments (as defined below) in effect as of the Conversion Date (as defined below) under the Revolving Credit Agreement into an equal aggregate amount of Pre-Export Commitments (as defined below) under that certain Pre-Export Financing Agreement, dated as of the date hereof, by and among the Pre-Export Borrowers, as borrowers, the banks and other financial institutions or entities from time to time parties thereto as lenders (each, a “Pre-Export Lender” and collectively, the “Pre-Export Lenders”) and the Pre-Export Administrative Agent, a copy of which is attached hereto as Exhibit B (the “Pre-Export Credit Agreement”), pursuant to which, subject to the satisfaction of the Conditions to Conversion and the other terms and conditions of this Agreement, the Pre-Export Lenders will agree to, from time to time, make one or more pre-export term loans to the Pre-Export Borrowers, by means of new loans or the assignment of the Existing KBBV Pre-Export Loans (as defined below) or Existing BIF Pre-Export Loans (as defined below)(each, a “Pre-Export Loan”);

 

 

WHEREAS, the Pre-Export Loans will be secured by (x) export receivables to be paid by a newly formed wholly-owned direct or indirect Subsidiary of Usina Moema (to be formed outside of Brazil) acting as off-taker (the “New Off-Taker”) under a new export contract between the New Off-Taker and the Pre-Export Borrowers and other export contracts between the New Off-Taker and Eligible Importers (as defined in the Pre-Export Credit Agreement) (collectively, the “New Export Contracts”) to be pledged by the Pre-Export Borrowers to the Pre-Export Administrative Agent for the benefit of the Pre-Export Lenders and the other secured parties and (y) certain other collateral described in the security documentation to be executed as a condition precedent to Conversion (together with the New Export Contract, the “New Collateral”);

 

WHEREAS, pursuant to certain master export prepayment agreements listed on Annex 2 attached hereto, among the Pre-Export Borrowers, as borrowers, and Koninklijke Bunge B.V., a private limited liability company organized under the laws of The Netherlands (“KBBV”), as lender (each, a “KBBV Pre-Export Loan Agreement” and collectively, the “KBBV Pre-Export Loan Agreements”), KBBV has previously made intercompany pre-export loans to the Pre-Export Borrowers which remain outstanding in the principal amounts as of the date hereof set forth in Annex 2 attached hereto (the “Existing KBBV Pre-Export Loans”) and are secured by payments to be made by off-takers under existing export contracts (the “Existing KBBV Export Contracts”);

 

WHEREAS, pursuant to certain master export prepayment agreements listed on Annex 3 attached hereto, among the Pre-Export Borrowers, as borrowers, and Bunge Iberica Finance SL (“BIF”), as lender (each, a “BIF Pre-Export Loan Agreement”, collectively, the “BIF Pre-Export Loan Agreements” and, together with the KBBV Pre-Export Loan Agreements, the “Existing Pre-Export Loan Agreements”), BIF has made intercompany pre-export loans to the Pre-Export Borrowers pursuant to the terms thereof which remain outstanding in the principal amounts as of the date hereof set forth in Annex 3 attached hereto (the “Existing BIF Pre-Export Loans” and, together with the Existing KBBV Pre-Export Loans, the “Existing Pre-Export Loans”) and are secured by payments to be made by off-takers under existing export contracts (the “Existing BIF Export Contracts” and, together with the Existing KBBV Export Contracts, the “Existing Export Contracts”);

 

WHEREAS, upon the satisfaction of the Conditions to Funding (as defined below) with respect to any Pre-Export Loan, (i) the Pre-Export Borrowers will have the right to request that the Pre-Export Administrative Agent, acting on behalf of the Pre-Export Lenders, purchase from KBBV and/or BIF, as applicable, at par, (x) one or more Existing KBBV Pre-Export Loan(s) or Existing BIF Pre-Export Loan(s), respectively, with an aggregate outstanding principal balance equal to the principal amount of such Pre-Export Loan and (y) KBBV’s or BIF’s rights under the applicable Existing Pre-Export Loan Agreement (but none of their obligations thereunder) and any related security interest in the applicable Existing Export Contracts solely to the extent related to such assigned Existing Pre-Export Loan(s), 

 

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(ii) the assigned Existing Pre-Export Loans will remain outstanding and be deemed to be, and be, treated as a Pre-Export Loan subject to the terms and conditions of the Pre-Export Credit Agreement which will amend and restate the Existing Pre-Export Loan Agreement(s) (and any related promissory note evidencing such assigned Pre-Export Loan will be automatically cancelled without further action by the Pre-Export Administrative Agent, KBBV or BIF) solely as it relates to such assigned Existing Pre-Export Loans and (iii) such Pre-Export Loan will be secured by a security interest in the New Export Contracts (including, without limitation, all amounts owed by the New Off-Taker and other Eligible Importers thereunder) and the other New Collateral, which will be substituted for and replace the security interest in the Existing Export Contracts in their entirety solely as it relates to such assigned Existing Pre-Export Loan, and the security interest in the Existing Export Contracts will be automatically released without further action by the Pre-Export Administrative Agent, KBBV or BIF; and

 

WHEREAS, the execution and delivery of this Agreement is a condition precedent to the effectiveness of the Revolving Credit Agreement and the Pre-Export Credit Agreement.

 

NOW, THEREFORE, in consideration of the payments, covenants, conditions, and promises contained in this Agreement, the Revolving Loan Documents and the Pre-Export Loan Documents, and for other fair and valuable consideration, the receipt and sufficiency of which are acknowledged by the Parties, the Parties agree as follows:

 

ARTICLE I.  DEFINITIONS

 

Section 1.1          Certain Defined Terms.  For purposes of this Agreement, capitalized terms not otherwise defined in this Section 1.1 or otherwise in this Agreement shall have the meanings assigned to such terms in the Revolving Credit Agreement.

 

“Affiliated Committed Lender”: with respect to any Revolving Lender, the branch or affiliate of such Revolving Lender identified as its Affiliated Committed Lender on Annex 4 attached hereto, or another branch or affiliate of such Revolving Lender to which such Revolving Lender assigns its Revolving Commitments in accordance with Section 2.4(a).

 

“Agreement”: as defined in the preamble.

 

“Assigned Export Receivables”: as defined in the Pre-Export Credit Agreement.

 

“Assigned Pre-Export Loans”: as defined in Section 3.1(a).

 

“Assignment Agreement”: as defined in Section 3.1(a).

 

“Authorized Agent”: as defined in Section 4.3.

 

“Authorized Agent Resignation Notice”: as defined in Section 4.3.

 

“BIF”: as defined in the fifth whereas clause.

 

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“BIF Pre-Export Loan Agreement(s)”: as defined in the fifth whereas clause.

 

“BL”: as defined in the preamble.

 

“Business Day”: as defined in the Pre-Export Credit Agreement.

 

“Collateral”: as defined in the Pre-Export Credit Agreement.

 

“Collateral Account”: as defined in the Pre-Export Credit Agreement.

 

“Conditions to Conversion”: as defined in Section 2.3.

 

“Conditions to Funding”: as defined in Section 3.1.

 

“Controlling Shareholder(s)”: a third party or third parties (other than BL or any of its Subsidiaries) that acquire(s) beneficial ownership of equity interests representing more than fifty percent (50.0%) of the aggregate voting power of the Voting Stock of each Pre-Export Borrower through a Direct Sale.

 

“Conversion”: the conversion of Revolving Commitments in effect as of the Conversion Date into Pre-Export Commitments in accordance with the terms and conditions of this Agreement.

 

“Conversion Date”: as defined in Section 2.2(b).

 

“Conversion Notice Date”: as defined in Section 2.2(b).

 

“Direct Sale”: a direct private sale of equity interests in Usina Moema that is neither (i) carried out on a stock exchange, (ii) in the over-the-counter market nor (iii) an IPO, so long as, with respect to clauses (i) to (iii), such sale of equity interests in Usina Moema carried out on a stock exchange or in the over-the-counter market does not result from a private negotiation.

 

“Effective Date”: as defined in the preamble.

 

“Eligible Importers”: as defined in the Pre-Export Credit Agreement.

 

“Existing BIF Export Contracts”: as defined in the fifth whereas clause.

 

“Existing BIF Pre-Export Loans”: as defined in the fifth whereas clause.

 

“Existing Export Contracts”: as defined in the fifth whereas clause.

 

“Existing KBBV Export Contracts”: as defined in the fourth whereas clause.

 

“Existing KBBV Pre-Export Loans”: as defined in the fourth whereas clause.

 

“Existing Pre-Export Loan Agreements”: as defined in the fifth whereas clause.

 

“Existing Pre-Export Loans”: as defined in the fifth whereas clause.

 

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“IFRS”:  international accounting standards within the meaning of IAS Regulation 1606/2002 to the extent applicable to the relevant financial statements.

 

“IPO”: initial public offering of equity interests to be further traded on an exchange.

 

“KBBV”: as defined in the fourth whereas clause.

 

“KBBV Pre-Export Loan Agreement(s)”: as defined in the fourth whereas clause.

 

“New Collateral”: as defined in the third whereas clause.

 

“New Export Contracts”: as defined in the third whereas clause.

 

“New Off-Taker”: as defined in the third whereas clause.

 

“Non-Complying Potential Controlling Shareholder”: as defined in Section 2.1(b).

 

“Non-Complying Potential Controlling Shareholder Notice”: as defined in Section 2.1(b).

 

“Off-Shore Sugar Co”: as defined in the Pre-Export Credit Agreement.

 

“Opt Out Commitment”: as defined in Section 2.4(b).

 

“Party” and “Parties”: as defined in the preamble.

 

“Patriot Act”: the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)).

 

“Potential Controlling Shareholder”: as defined in Section 2.1(a).

 

“Potential Controlling Shareholders List”: as defined in Section 2.1(a).

 

“Pre-Approved Controlling Shareholder”: as defined in Section 2.1(b).

 

“Pre-Export Administrative Agent”: as defined in the preamble.

 

“Pre-Export Amortization Commencement Date”: as defined in Section 2.4(a).

 

“Pre-Export Borrower(s)”: as defined in the preamble.

 

“Pre-Export Borrowers COC Event”: the occurrence of BL ceasing to hold, directly or indirectly, including, without limitation, by way of an IPO, beneficial ownership of equity interests representing more than fifty percent (50.0%) of the aggregate voting power of the Voting Stock of each Pre-Export Borrower.

 

“Pre-Export Commitments”: as defined in the Pre-Export Credit Agreement.

 

“Pre-Export Credit Agreement”: as defined in the second whereas clause.

 

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“Pre-Export Guarantors”: as defined in the Pre-Export Credit Agreement.

 

“Pre-Export Guaranty”: as defined in the Pre-Export Credit Agreement.

 

“Pre-Export Lender(s)”: as defined in the second whereas clause.

 

“Pre-Export Loan Parties”: as defined in the Pre-Export Credit Agreement

 

“Pre-Export Loan(s)”: as defined in the second whereas clause.

 

“Pre-Export Loan Documents”: as defined in the Pre-Export Credit Agreement.

 

“Pre-Export Maturity Date”: as defined in the Pre-Export Credit Agreement.

 

“Requirement of Law”: as defined in the Pre-Export Credit Agreement.

 

“Revolving Administrative Agent”: as defined in the preamble.

 

“Revolving Borrower”: as defined in the preamble.

 

“Revolving Commitments”:  as defined in the Revolving Credit Agreement.

 

“Revolving Credit Agreement”: as defined in the preamble.

 

“Revolving Lender Opt Out”: as defined in Section 2.4(b).

 

“Revolving Lender Opt Out Notice”: as defined in Section 2.4(b).

 

“Revolving Lender(s)”: as defined in the preamble.

 

“Revolving Loan(s)”: as defined in the preamble.

 

“Revolving Loan Documents”: as defined in the Revolving Credit Agreement.

 

“Revolving Maturity Date”:  as defined in the Revolving Credit Agreement.

 

“ROF”: as defined in the Pre-Export Credit Agreement.

 

“Tax”: as defined in the Pre-Export Credit Agreement.

 

ARTICLE II.  CONVERSION

 

Section 2.1          Pre-Approved Controlling Shareholders.

 

(a)          The entities set forth on the list attached hereto as Annex 1 (the “Initial Potential Controlling Shareholders List”) have been indicated by the Revolving Borrowers as of the date of this Agreement as potential purchasers of a controlling interest in the Pre-Export Borrowers through a Direct Sale.  The Revolving Borrower may deliver an updated Initial Potential Controlling Shareholders List to the Revolving Administrative Agent on a quarterly basis following the Revolving Closing Date to remove any Non-Complying Potential Controlling Shareholder or to add other Potential Controlling Shareholders to the list (as updated and in effect on any date, the “Potential Controlling Shareholders List”).  

 

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The Revolving Administrative Agent shall promptly deliver a copy of any such updated Potential Controlling Shareholders List to each Revolving Lender.  Any entity listed on the Potential Controlling Shareholders List as of any date of determination shall be referred to as a “Potential Controlling Shareholder”).

 

(b)          Each Revolving Lender shall use commercially reasonable efforts to determine on or prior to the Revolving Closing Date and on a quarterly basis after the Revolving Closing Date based on publicly available information whether (in its sole reasonable discretion) each Potential Controlling Shareholder listed on the Potential Controlling Shareholder List complies with its “know your customer” and anti-money laundering rules and regulations (as such rules and regulations may apply to a beneficial owner of a bank borrower), including, without limitation, the Patriot Act.  Each Potential Controlling Shareholder listed on the Potential Controlling Shareholders List attached as Annex 1 or most recently delivered to the Revolving Administrative Agent (and any Subsidiary fully owned, directly or indirectly, by such Potential Controlling Shareholder), as applicable, shall be deemed to be a “Pre-Approved Controlling Shareholder” by a Revolving Lender unless and until such Revolving Lender provides written notice (a “Non-Complying Potential Controlling Shareholder Notice”) to the Revolving Administrative Agent (which in turn shall promptly provide a copy of such written notice to the Revolving Borrower) (i) in the case of the Potential Controlling Shareholder List attached as Annex 1 hereto, on or prior to the Revolving Closing Date or (ii) in the case of any Potential Controlling Shareholders List provided on or after the Revolving Closing Date, within fifteen (15) Business Days of receipt by the Revolving Lenders of such Potential Controlling Shareholder List that in the Revolving Lender’s determination a Potential Controlling Shareholder has failed to comply with such Revolving Lender’s “know your customer” and anti-money laundering rules and regulations (as such rules and regulations may apply to a beneficial owner of a bank borrower), including without limitation the Patriot Act (any such Potential Controlling Shareholder identified in a Non-Complying Potential Controlling Shareholder Notice shall be a “Non-Complying Potential Controlling Shareholder” solely with respect to such Revolving Lender).

 

(c)          In the event that a Revolving Lender delivers a Non-Complying Potential Controlling Shareholder Notice at any time to the Revolving Administrative Agent or a Revolving Lender Opt Out Notice in connection with a Conversion to the Revolving Administrative Agent, the Revolving Borrower shall have the right to require such Revolving Lender, and such Revolving Lender shall be obligated, to transfer (at par) its Revolving Commitment, its pro rata percentage of outstanding Revolving Loans and its obligations under this Agreement (including, without limitation, any Opt Out Commitment as described below in Section 2.4) to any other Revolving Lender or any other entity selected by BL and which is acceptable to the Revolving Administrative Agent in its sole discretion (the “Transferee Lender”) that has agreed to the transfer (at par) of such Revolving Commitments, pro rata percentage of Revolving Loans and such Revolving Lender’s obligations under this Agreement and such Transferee Lender shall assume such Revolving Lender’s Revolving Commitments and obligations under this Agreement; provided, that, the Revolving Borrower shall pay any break costs associated with any transfer that is not in connection with a Conversion.  In addition, such Revolving Lender must pay the Transferee Lender an amount equal to the product of (i) the number of whole years remaining until the Revolving Maturity Date times (ii) 1/5th of the revolving upfront fees received by such Revolving Lender (which amount may be netted against the amount payable by the Transferee Lender for such assignment).

 

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Section 2.2          Notice of Conversion.  At any time prior to the Revolving Maturity Date, the Revolving Borrower and BL may deliver to the Revolving Administrative Agent (which shall promptly deliver a copy to each Revolving Lender) an irrevocable notice (a “Notice of Conversion”), pursuant to which:

 

(a)          BL and the Revolving Borrower request the Conversion;

 

(b)          BL and the Revolving Borrower identify the proposed date on which the Conversion shall become effective (the “Conversion Date”) subject to the satisfaction of the Conditions to Conversion; provided, that  such Notice of Conversion shall be delivered (i) with respect to a Pre-Export Borrowers COC Event expected to result from a Direct Sale to a Controlling Shareholder, at least sixty (60) days prior to such proposed Conversion Date and (ii) with respect to any other Pre-Export Borrowers COC Event, at least thirty (30) days prior to such proposed Conversion Date (the date on which such Notice of Conversion is received by the Revolving Administrative Agent shall be referred to herein as the “Conversion Notice Date”); and

 

(c)           BL certifies that it intends for a Pre-Export Borrowers COC Event to occur after the Conversion Date; provided, however that, for the avoidance of doubt, if a Pre-Export Borrowers COC Event does not occur after the Conversion Date, the Pre-Export Commitments shall remain in effect following the Conversion Date and the Pre-Export Loans shall remain outstanding until their scheduled maturities (unless required to be otherwise prepaid following an Event of Default (as defined under the Pre-Export Credit Agreement) or a mandatory prepayment event pursuant to the terms of the Pre-Export Credit Agreement).

 

Section 2.3          Conditions to Conversion.  Upon the Revolving Administrative Agent’s receipt of a Notice of Conversion and the satisfaction (or waiver by the Revolving Lenders) of the following conditions (the “Conditions to Conversion”), the Conversion shall become effective on the Conversion Date:

 

(a)          The Revolving Borrower shall have repaid all outstanding principal of the Revolving Loans together with all unpaid interest accrued thereon as of the date of such repayment and any other outstanding fees and other amounts under the Revolving Loan Documents;

 

(b)          Usina Moema shall have formed the New Off-Taker and the New Off-Taker and the Pre-Export Borrowers shall have entered into a New Export Contract in form and substance satisfactory to the Pre-Export Administrative Agent;

 

(c)          The Pre-Export Borrowers shall own the Collateral;

 

(d)          In the event that the Pre-Export Borrowers COC Event relates to a Direct Sale of a controlling ownership interest in the Pre-Export Borrowers to one or more Pre-Approved Controlling Shareholder(s) or Controlling Shareholder(s) any one of which is not a Pre-Approved Controlling Shareholder, BL shall provide a certificate of an officer of BL as of the Conversion Notice Date that, to the best of its knowledge, any such Controlling Shareholder is not a restricted person (i) listed on the “Specially Designated Nationals and Blocked Persons” list maintained by OFAC, (ii) identified in the annex of the Executive Order or (iii) listed on the Consolidated List of Financial Sanctions Targets issued by Her Majesty’s Treasury;

 

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(e)          In connection with a Pre-Export Borrowers COC Event that relates to a Direct Sale of a controlling ownership interest in the Pre-Export Borrowers to one or more Controlling Shareholder(s) any one of which is not a Pre-Approved Controlling Shareholder, during the period commencing on the Conversion Notice Date and ending fifteen (15) Business Days prior to the proposed Conversion Date, each Revolving Lender shall have received all documentation and other information about the Controlling Shareholder(s) as has been reasonably requested in writing by such Revolving Lender from the Controlling Shareholder(s) that is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations (as such rules and regulations may apply to a beneficial owner of a bank borrower), including without limitation the Patriot Act; provided, that to the extent each of the Controlling Shareholder(s) is a Pre-Approved Controlling Shareholder with respect to any Revolving Lender as of the Conversion Notice Date, such Revolving Lender shall not have a right to decline to convert its Revolving Commitment into a Pre-Export Commitment as a result of its “know your customer” requirements;

 

(f)          The Pre-Export Administrative Agent shall have received a written appraisal (in form and substance satisfactory to the Pre-Export Lenders) of the value of the Collateral (other than the Collateral Account (as defined in the Pre-Export Credit Agreement), the Existing Export Contracts and the New Export Contracts) prepared by a third party hired by the Pre-Export Borrowers and reasonably acceptable to the Pre-Export Lenders at least thirty (30) days and no more than ninety (90) days prior to the Conversion Date;

 

(g)          The Pre-Export Borrowers shall be in pro forma compliance with the Fixed Asset Coverage Ratio (as defined in the Pre-Export Credit Agreement) and the Offtake Contract Value to Debt Service Coverage Ratio (as defined in the Pre-Export Credit Agreement) as of the Conversion Date, as detailed in a compliance certificate in substantially the form of Exhibit E of the Pre-Export Credit Agreement, delivered by the Pre-Export Borrowers to the Pre-Export Administrative Agent at least five (5) Business Days prior to the Conversion Date;

 

(h)          The Pre-Export Borrowers shall be in pro forma compliance with the financial covenants set forth in the Pre-Export Credit Agreement as of the Conversion Date, as detailed in a compliance certificate in substantially the form of Exhibit E to the Pre-Export Credit Agreement, delivered to the Pre-Export Administrative Agent at least five (5) Business Days prior to the Conversion Date;

 

(i)          As of the Conversion Date, no Event of Default (as defined under either the Revolving Credit Agreement or the Pre-Export Credit Agreement) shall have occurred and be continuing;

 

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(j)          All fees required to be paid pursuant to the Fee Letter and reasonable and documented out-of-pocket expenses required to be paid pursuant to the Revolving Loan Documents and the Pre-Export Loan Documents, in each case to the extent invoiced at least three (3) Business Days prior to the Conversion Date, shall have been paid, or shall be paid on the Conversion Date;

 

(k)          The Pre-Export Administrative Agent shall have received a solvency certificate in respect of the Pre-Export Borrowers taken as a whole (after giving effect to the Conversion) in a form substantially similar to Exhibit D attached hereto at least five (5) Business Days prior to the Conversion Date;

 

(l)          The Pre-Export Administrative Agent shall have received (i) an unaudited consolidated pro forma balance sheet of the Pre-Export Borrowers (after giving effect to the Conversion) at least five (5) Business Days prior to the Conversion Date and (ii) the most recently prepared audited financial statements consisting of the consolidated balance sheet of the Pre-Export Borrowers as of the end of the year covered by such financial statements and the related statements of income and retained earnings and statements of cash flow for such year setting forth in each case in comparative form the corresponding figures for the previous fiscal year, certified by independent certified public accountants satisfactory to the Pre-Export Administrative Agent to the effect that such financial statements fairly present in all material respects the financial condition and results of operations of the Pre-Export Borrowers in accordance with IFRS consistently applied;

 

(m)          Off-Shore SugarCo shall have (i) become a Pre-Export Guarantor by executing the Pre-Export Guaranty and any other documents or agreements as the Pre-Export Administrative Agent shall reasonably determine necessary; (ii) taken all of the actions and delivered all of the documents and officer certificates required by Sections 5.1(t)(iii) and (iv) in the Pre-Export Credit Agreement in connection with becoming a Pre-Export Guarantor; and (iii) instructed all Eligible Importers with respect to all Assigned Export Receivables outstanding as of such date to make all payments thereunder directly to the Collateral Account as required under Section 5.2(f) of the Pre-Export Credit Agreement.

 

(n)          The Pre-Export Administrative Agent shall have received (i) copies of customary security documentation in respect of the New Collateral duly authorized, executed and delivered by each applicable Pre-Export Borrower and (ii) evidence that all filings in Brazil that are reasonably necessary to create and perfect the security interest in the New Collateral in favor of the Pre-Export Administrative Agent, acting for the benefit of the Pre-Export Lenders, have been made;

 

(o)          The Pre-Export Administrative Agent shall have received customary legal opinions in respect to (i) the capacity of the Pre-Export Loan Parties, (ii) the validity and enforceability of the Pre-Export Loan Documents and (iii) the creation of security in respect of the New Collateral, from counsel to the Pre-Export Loan Parties, which shall cover such other matters incident to the transactions contemplated by this Agreement and the Pre-Export Loan Documents as the Pre-Export Administrative Agent may reasonably require;

 

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(p)          The Pre-Export Administrative Agent shall have received a customary Responsible Officer’s certificate with respect to each Pre-Export Loan Party dated as of the Conversion Date with appropriate insertions and attachments satisfactory in form and substance to the Pre-Export Administrative Agent, including (A) organizational documents, (B) resolutions and other necessary corporate approvals in respect of the Pre-Export Loan Documents to which such Pre-Export Loan Party is a party, (C) incumbency certificates and (D) additional documents that are customarily required in similar transactions;

 

(q)          The representations and warranties of the Pre-Export Loan Parties set forth in the Pre-Export Loan Documents shall be true and correct in all material respects on and as of the Conversion Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date;

 

(r)          Since the Revolving Closing Date, there has been no development or event which has had or could, in BL’s good faith reasonable judgment, reasonably be expected to have a Material Adverse Effect (as defined in the Pre-Export Credit Agreement);

 

(s)          The Pre-Export Administrative Agent shall have received (at least three (3) Business Days prior to the Conversion Date) all documentation and other information with respect to the Pre-Export Loan Parties, BIF and KBBV as has been reasonably requested in writing by any Revolving Lender at least ten (10) Business Days prior to the Conversion Date that is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the Patriot Act;

 

(t)          The Pre-Export Administrative Agent shall have received a duly authorized, executed and delivered promissory note from the Pre-Export Borrowers signed por aval by each Pre-Export Guarantor governed by Brazilian laws issued in connection with the Pre-Export Loans in an amount equal to 120% of the Pre-Export Commitments;

 

(u)          The Pre-Export Administrative Agent shall have received from each Pre-Export Borrower copies of the screen pages of the ROF evidencing the registrations of the terms and conditions of the pre-export facility provided under the Pre-Export Credit Agreement with the Central Bank of Brazil, in a form satisfactory to the Pre-Export Administrative Agent; provided, that, in the case of an assignment of an Existing Pre-Export Loan, the existing ROF related to such Existing Pre-Export Loan shall be amended and restated at the time of such assignment in a form satisfactory to the Pre-Export Administrative Agent;

 

(v)          The Pre-Export Administrative Agent shall have received evidence that each of the Pre-Export Loan Parties shall have appointed an agent for service of process in New York and such agent shall have accepted such appointment in accordance with the Pre-Export Credit Agreement;

 

(w)          The Pre-Export Administrative Agent shall have received evidence reasonably satisfactory to it that the business conducted and proposed to be conducted by the Pre-Export Loan Parties is in compliance with all Requirements of Law and regulations and that all registrations, filings and licenses and/or consents required to be obtained by the Pre-Export Loans Parties, as the case may be, in connection therewith have been made or obtained and are in full force and effect, except to the extent that the failure to comply with any such Requirement of Law or to make or obtain any such registration, filing, license or consent could not, in the aggregate, reasonably be expected to have a Material Adverse Effect;

 

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(x)           The Pre-Export Administrative Agent shall have received a list of real property owned by the Pre-Export Loan Parties in a form substantially similar to Exhibit E attached hereto;

 

(y)          The Pre-Export Administrative Agent shall have received a description of the areas where each Pre-Export Borrower’s sugar cane roots are located in a form substantially similar to Exhibit F attached hereto; and

 

(z)          The Pre-Export Administrative Agent shall have received a Responsible Officer’s certificate from each of the Pre-Export Borrowers certifying as to satisfaction of certain of the Conditions to Conversion.

 

Section 2.4          Conversion.

 

(a)          Subject to clause (b) below, upon satisfaction of the Conditions to Conversion, all Revolving Commitments of the Revolving Lenders will automatically convert on the Conversion Date to commitments of the Pre-Export Lenders to provide 100.0% (one hundred percent) of the Pre-Export Commitments under the Pre-Export Credit Agreement; provided that all Revolving Commitments of Revolving Lenders with an Affiliated Committed Lender may first be assigned by the applicable Revolving Lender to its Affiliated Committed Lender immediately before such Revolving Commitments are converted to Pre-Export Commitments; provided, further that if the Conversion occurs after the date that is twelve (12) months prior to the Revolving Maturity Date (or on the immediately preceding Business Day if such day is not a Business Day) applicable to any Pre-Export Lender (such date, the “Pre-Export Amortization Commencement Date” with respect to such Pre-Export Lender), the Pre-Export Commitment of such Pre-Export Lender shall be reduced upon Conversion to reflect a reduction of its Pre-Export Commitment in an aggregate amount that would have been amortized under Section 2.6(a) of the Pre-Export Credit Agreement if its Revolving Commitment had converted to a Pre-Export Commitment before its Pre-Export Amortization Commencement Date.

 

(b)          To the extent a Direct Sale of a controlling ownership interest in the Pre-Export Borrowers is to be made to (x) a Controlling Shareholder that any Revolving Lender has reasonably determined is a Non-Complying Potential Controlling Shareholder or (y) any other Controlling Shareholder that is not a Pre-Approved Controlling Shareholder with respect to such Revolving Lender that such Revolving Lender reasonably determines has failed to comply with “know your customer” and anti-money laundering rules and regulations (as such rules and regulations may apply to a beneficial owner of a bank borrower), including without limitation the Patriot Act, such Revolving Lender may deliver written notice (a “Revolving Lender Opt Out Notice”) to the Revolving Administrative Agent (which in turn shall promptly provide a copy of such written notice to the Revolving Borrower) informing of its decision to opt out of the Conversion (a “Revolving Lender Opt Out”) and (i) the Revolving Commitments of such Revolving Lender (to the extent they have not been transferred to a Transferee Lender, the “Opt Out Commitment”) will not automatically convert to a Pre-Export Commitment of such Pre-Export Lender to provide a Pre-Export Commitment, (ii) the Opt Out Commitment of such Revolving Lender shall be terminated and (iii) the Pre-Export Commitments will not include such Revolving Lender’s Opt Out Commitment, which will not be converted to Pre-Export Commitments, with the result that the Pre-Export Commitments will be less than the Revolving Commitments at Conversion by such amount.

 

12

 

Section 2.5          Termination of Revolving Loan Documents on the Conversion Date.  BL, the Revolving Borrower, the Revolving Administrative Agent and the Revolving Lenders agree that on the Conversion Date, (a) all obligations, liabilities and indebtedness of the Revolving Borrower and BL under the Revolving Loan Documents (other than this Agreement and any obligations that expressly survive termination) shall be fully paid, satisfied and discharged; (b) the Revolving Commitments shall automatically terminate; (c) the Revolving Credit Agreement, the Guaranty Agreement and each other Revolving Loan Document (other than this Agreement and any obligations that expressly survive termination) shall automatically terminate; and (d) the Revolving Borrower and BL shall have no other or further obligations, liabilities or indebtedness to the Revolving Lenders or the Administrative Agent under the Revolving Credit Agreement, the Guaranty Agreement or any other Revolving Loan Document (other than this Agreement and any obligations that expressly survive termination) after payment in full of the outstanding amounts described in clause (a) above.

 

ARTICLE III.  FUNDING OF PRE-EXPORT LOANS

 

Section 3.1          Conditions to Funding Pre-Export Loans under Pre-Export Credit Agreement.  The obligations of the Pre-Export Lenders to make each Pre-Export Loan under the Pre-Export Credit Agreement, by means of new disbursement or an assignment of the credits arising from the Existing Pre-Export Loans, are subject to the satisfaction of the following conditions (the “Conditions to Funding”):

 

(a)          In the event of an assignment of an Existing Pre-Export Loan, delivery to the Pre-Export Administrative Agent of an Assignment Agreement substantially in the form attached hereto as Exhibit C (each such agreement, an “Assignment Agreement”) with respect to Existing KBBV Pre-Export Loan(s) or Existing BIF Pre-Export Loan(s) that have an aggregate outstanding principal balance equal to the principal amount of such Pre-Export Loan (and in any event an aggregate outstanding principal balance of at least $3,000,000), and payable in Dollars, duly authorized, executed and delivered by KBBV and/or BIF (as applicable), as assignor(s), and the Pre-Export Administrative Agent on behalf of the Pre-Export Lenders, as assignee, and acknowledged by the applicable borrower(s) with respect to such  Existing Pre-Export Loans, pursuant to which KBBV and/or BIF, as applicable, will assign (at par) such Existing Pre-Export Loan(s) (the “Assigned Pre-Export Loans”) and KBBV’s and/or BIF’s rights (but not their obligations) solely to the extent related thereto under the Existing Pre-Export Loan Agreement and the security interest in the Existing Export Contracts related to such Assigned Pre-Export Loans to the Pre-Export Administrative Agent on behalf of the Pre-Export Lenders;

 

(b)          The Pre-Export Administrative Agent shall have received from the relevant Pre-Export Borrower copies of the screen pages of each ROF filed with the Central Bank of Brazil reflecting the terms of such Pre-Export Loan made under the Pre-Export Credit Agreement, in a form satisfactory to the Pre-Export Administrative Agent; provided, that, in the case of an assignment of an Existing Pre-Export Loan, the existing ROF related to such Existing Pre-Export Loan shall be amended and restated at the time of such assignment, in a form satisfactory to the Pre-Export Administrative Agent; and

 

13

 

(c)          Each of the conditions precedent to funding such Pre-Export Loan set forth in Section 4 of the Pre-Export Credit Agreement shall have been satisfied (or waived by the Pre-Export Administrative Agent with the consent of the Pre-Export Lenders).

 

Section 3.2          Amendment and Restatement of Existing Pre-Export Loan Agreements; Cancellation of Related Existing Promissory Notes and Substitution of New Collateral.  Upon the satisfaction of the Conditions to Funding with respect to any Pre-Export Loan,  (i) each Assigned Pre-Export Loan assigned by KBBV and/or BIF to the Pre-Export Administrative Agent for the benefit of the Pre-Export Lenders in accordance with Section 3.1 will remain outstanding, be considered amended and be deemed to be, and be, treated as a Pre-Export Loan subject to the terms and conditions of the Pre-Export Credit Agreement and any related promissory note evidencing such Pre-Export Loan executed in favor of the Pre-Export Administrative Agent, and any related promissory note evidencing such Assigned Pre-Export Loan shall be automatically cancelled without further action by the Pre-Export Administrative Agent, KBBV or BIF; and (ii) such Pre-Export Loan will be secured by a security interest in the New Export Contracts (including, without limitation, all amounts owed by the New Off-Taker and Eligible Importers thereunder) and the other New Collateral, which will be substituted for and replace the Existing Export Contracts in their entirety solely with respect to such Assigned Pre-Export Loan, and the security interest in the Existing Export Contracts will be automatically released without further action by the Pre-Export Administrative Agent, KBBV or BIF.

 

Section 3.3          Amendments to the Existing Pre-Export Loan Agreements.  For as long as an Existing Pre-Export Loan has not been assigned to the Pre-Export Administrative Agent for the benefit of the Pre-Export Lenders, KBBV, BIF and each Pre-Export Borrower have the right to amend, assign or otherwise change the Existing Pre-Export Loan Agreements and related promissory notes without any consent from any Party being required.

 

Section 3.4          Representations and Warranties Regarding Existing Pre-Export Loan Agreements.  BL hereby represents and warrants as of the date of each assignment of any Existing Pre-Export Loan in accordance herewith that all representations and warranties of KBBV or BIF, as applicable, set forth in the applicable Assignment Agreement are true and correct in all material respects.

 

ARTICLE IV.  MISCELLANEOUS

 

Section 4.1          Notices.  All notices, requests and demands to or upon the respective Parties to be effective shall be in writing (including by telecopy), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered, or three (3) Business Days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when received, addressed to the receiving Party at its address set forth in the Revolving Credit Agreement or Pre-Export Credit Agreement, as applicable, or to such other address as may be hereafter notified by the respective Parties hereto.

 

14

 

Section 4.2          Amendments and Waiver.  Neither this Agreement nor any terms hereof may be amended, supplemented or modified except in a writing executed by the Parties hereto.

 

Section 4.3          Tax Indemnity.  Without limitation of the indemnities and other protections set forth in the Pre-Export Loan Documents, BL and the Pre-Export Borrowers agree jointly and severally to indemnify the Pre-Export Administrative Agent and each Pre-Export Lender for, and to hold the Pre-Export Administrative Agent and each Pre-Export Lender harmless from, any and all Tax liabilities incurred solely as a consequence of the assignment of any Assigned Pre-Export Loans to the Pre-Export Administrative Agent on behalf of the Pre-Export Lenders.

 

Section 4.4          Appointment of Agent for Service of Process.

 

(a)          Each of BL and each Pre-Export Borrower (i) irrevocably designates and appoints BL’s chief financial officer (from time to time) at BL’s principal executive offices at 50 Main Street, White Plains, New York 10606 (the “Authorized Agent”), as its agent and attorney-in-fact upon which process may be served in any suit, action or proceeding related to this Agreement until the date that is one (1) year after the Pre-Export Maturity Date and represents and warrants that the Authorized Agent has accepted such designation and (ii) agrees that service of process upon the Authorized Agent and written notice of said service to BL or such Pre-Export Borrower, as applicable, mailed or delivered by a recognized international courier service (with proof of delivery) to BL’s Secretary or any Assistant Secretary at BL’s office at 50 Main Street, White Plains, New York 10606, shall be deemed in every respect effective service of process upon BL or such Pre-Export Borrower, as applicable, in any such suit or proceeding.  Subject to clause (b) below, each of BL and each Pre-Export Borrower further agrees to take any and all action, including the execution and filing of any and all such documents and instruments, as may be necessary to continue such designation and appointment of the Authorized Agent in full force and effect so long as this Agreement is in existence.  Nothing herein shall in any way be deemed to limit the ability of any party hereto to serve legal process in any other manner permitted by applicable law, and any service of process received by the Authorized Agent on behalf of a Pre-Export Borrower shall, for all purposes under Brazilian law, be deemed to have been received by such Pre-Export Borrower.

 

(b)          At any time on or after the Conversion Date, BL may deliver written notice to the Revolving Administrative Agent, the Pre-Export Administrative Agent and the Pre-Export Borrowers that BL’s chief financial officer shall no longer act as the Authorized Agent on behalf of the Pre-Export Borrowers (an “Authorized Agent Resignation Notice”) and, effective upon the Pre-Export Administrative Agent’s receipt of evidence that each Pre-Export Borrower has appointed a new agent for service of process in New York and such agent shall have accepted such appointment for a period ending one (1) year after the Pre-Export Maturity Date, BL shall no longer be the Authorized Agent for the Pre-Export Borrowers hereunder.

 

Section 4.5          Incorporation by Reference.  The terms and provisions set out in Sections 1.2, 8.3, 8.4, 8.6(a), 8.8, 8.9, 8.10, 8.11, 8.12, 8.13, 8.14, 8.15 and 8.16 of the Revolving Credit Agreement are hereby expressly and specifically incorporated into this Agreement as though they were set out in full in this Agreement and (a) references to “Revolving Borrower” therein in such Sections shall be deemed to refer both to the “Revolving Borrower” and the “Pre-Export Borrowers” for purposes of this Agreement, 

 

15

 

(b) references to the “Revolving Lenders” therein in such Sections shall be deemed to refer to both the “Revolving Lenders” and the “Pre-Export Lenders” for purposes of this Agreement, (c) references to “Revolving Administrative Agent” in such Sections shall be deemed to refer to both the “Revolving Administrative Agent” and the “Pre-Export Administrative Agent” for purposes of this Agreement and (d) references to “Revolving Loan Documents” therein in such Sections shall be deemed to refer to this “Agreement” for purposes of this Agreement.  In the event of any conflict between the provisions of this Agreement and the Revolving Credit Agreement or Pre-Export Credit Agreement, the provisions of this Agreement shall prevail.

 

Section 4.6          Loan Document.  For the avoidance of doubt, this Agreement is a “Revolving Loan Document” under the Revolving Credit Agreement and “Pre-Export Loan Document” under the Pre-Export Credit Agreement.

 

[SIGNATURE PAGES FOLLOW]

 

 

 

 

16

 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed and delivered by their proper and duly authorized officer as of the day and year first written above.

 

 

	 	
BUNGE LIMITED

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Rajat Gupta

	 
	 	 	
Name: Rajat Gupta

	 
	 	 	
Title: Treasurer

	 
	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Carla Heiss

	 
	 	 	
Name: Carla Heiss

	 
	 	 	
Title: Secretary

	 

 

 

 

 

 

 

Framework Agreement

 

	 	
BUNGE LIMITED FINANCE CORP., as the Revolving Borrower

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Rajat Gupta

	 
	 	 	
Name: Rajat Gupta

	 
	 	 	
Title: President

	 
	 	 	 	 

 

 

 

 

 

 

Framework Agreement

 

	 	
USINA MOEMA AÇÚCAR E ÁLCOOL S.A., as a Pre-Export Borrower

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Samuel Saenz Rozas

	 
	 	 	
Name: Samuel Saenz Rozas

	 
	 	 	
Title: CFO – Director

	 
	 	 	 	 
	 	
By:

	
/s/ Geovane Gonsul

	 
	 	 	
Name: Geovane Gonsul

	 
	 	 	
Title: VP – Sugar & Bioenergy

	 

 

 

 

 

 

 

 

Framework Agreement

 

	 	
PEDRO AFONSO AÇÚCAR & BIOENERGIA LTDA., as a Pre-Export Borrower

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Samuel Saenz Rozas

	 
	 	 	
Name: Samuel Saenz Rozas

	 
	 	 	
Title: CFO – Director

	 
	 	 	 	 
	 	
By:

	
/s/ Geovane Gonsul

	 
	 	 	
Name: Geovane Gonsul

	 
	 	 	
Title: VP – Sugar & Bioenergy

	 

 

 

 

 

 

 

 

Framework Agreement

	 	
AGROINDUSTRIAL SANTA JULIANA LTDA., as a Pre-Export Borrower

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Samuel Saenz Rozas

	 
	 	 	
Name: Samuel Saenz Rozas

	 
	 	 	
Title: CFO – Director

	 
	 	 	 	 
	 	
By:

	
/s/ Geovane Gonsul

	 
	 	 	
Name: Geovane Gonsul

	 
	 	 	
Title: VP – Sugar & Bioenergy

	 

 

 

 

 

 

 

 

 

Framework Agreement

 

	 	
MONTEVERDE AGRO-ENERGETICA S.A., as a Pre-Export Borrower

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Samuel Saenz Rozas

	 
	 	 	
Name: Samuel Saenz Rozas

	 
	 	 	
Title: CFO – Director

	 
	 	 	 	 
	 	
By:

	
/s/ Geovane Gonsul

	 
	 	 	
Name: Geovane Gonsul

	 
	 	 	
Title: VP – Sugar & Bioenergy

	 

 

 

 

 

 

Framework Agreement

	 	
USINA GUARIROBA LTDA., as a Pre-Export Borrower

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Samuel Saenz Rozas

	 
	 	 	
Name: Samuel Saenz Rozas

	 
	 	 	
Title: CFO – Director

	 
	 	 	 	 
	 	
By:

	
/s/ Geovane Gonsul

	 
	 	 	
Name: Geovane Gonsul

	 
	 	 	
Title: VP – Sugar & Bioenergy

	 

 

 

 

 

 

 

Framework Agreement

	 	
USINA ITAPAGIPE AÇÚCAR E ÁLCOOL LTDA., as a Pre-Export Borrower

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Samuel Saenz Rozas

	 
	 	 	
Name: Samuel Saenz Rozas

	 
	 	 	
Title: CFO – Director

	 
	 	 	 	 
	 	
By:

	
/s/ Geovane Gonsul

	 
	 	 	
Name: Geovane Gonsul

	 
	 	 	
Title: VP – Sugar & Bioenergy

	 

 

 

 

 

 

 

 

 

Framework Agreement

	 	
USINA FRUTAL AÇÚCAR E ÁLCOOL LTDA, as a Pre-Export Borrower

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Samuel Saenz Rozas

	 
	 	 	
Name: Samuel Saenz Rozas

	 
	 	 	
Title: CFO – Director

	 
	 	 	 	 
	 	
By:

	
/s/ Geovane Gonsul

	 
	 	 	
Name: Geovane Gonsul

	 
	 	 	
Title: VP – Sugar & Bioenergy

	 

 

 

 

 

 

 

 

Framework Agreement

	 	
USINA OUROESTE AÇÚCAR E ÁLCOOL LTDA., as a Pre-Export Borrower

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Samuel Saenz Rozas

	 
	 	 	
Name: Samuel Saenz Rozas

	 
	 	 	
Title: CFO – Director

	 
	 	 	 	 
	 	
By:

	
/s/ Geovane Gonsul

	 
	 	 	
Name: Geovane Gonsul

	 
	 	
 

:

	
Title: VP – Sugar & Bioenergy

 

	 

 

 

 

 

 

 

 

 

Framework Agreement

	 	
SUMITOMO MITSUI BANKING CORPORATION, as Revolving Administrative Agent

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Toshitake Funaki

	 
	 	 	
Name: Toshitake Funaki

	 
	 	 	
Title: Managing Director

	 
	 	 	 	 

 

 

 

 

 

Framework Agreement

	 	
SUMITOMO MITSUI BANKING CORPORATION, as Pre-Export Administrative Agent

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Toshitake Funaki

	 
	 	 	
Name: Toshitake Funaki

	 
	 	 	
Title: Managing Director

	 
	 	 	 	 

 

 

 

 

 

 

 

 

Framework Agreement

	 	
SUMITOMO MITSUI BANKING CORPORATION, as Revolving Lender and Pre-Export Lender

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Toshitake Funaki

	 
	 	 	
Name: Toshitake Funaki

	 
	 	 	
Title: Managing Director

	 
	 	 	 	 

 

 

 

 

 

 

 

Framework Agreement

	 	
ABN AMRO BANK N.V., as Revolving Lender and Pre-Export Lender

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Fausto José Caron

	 
	 	 	
Printed Name:  Fausto José Caron

	 
	 	 	
Title:  Attorney-In-Fact

	 
	 	 	 	 
	 	
By:

	
/s/ Rogier Pieter Anton De Jong

	 
	 	 	
Printed Name:  Rogier Pieter Anton De Jong

	 
	 	 	
Title:  Attorney-In-Fact

	 

 

 

 

 

 

 

 

Framework Agreement

	 	
ING BANK N.V., as Revolving Lender and Pre-Export Lender

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
By:

	
/s/ Rafael F. Mendes

	 
	 	 	
Printed Name:  Rafael F. Mendes

	 
	 	 	
Title:  Attorney-In-Fact

	 
	 	 	 	 
	 	
By:

	
/s/ Eber Faria

	 
	 	 	
Printed Name:  Eber Faria, MD

	 
	 	 	
Title:  Head of Trade & Commodity Finance LATAM

	 

 

 

 

 

 

 

Framework Agreement

Exhibit A

 

Revolving Credit Agreement

 

 

See attached.

 

 

 

 

 

 

 

 

 

 

Exhibit A

 

Exhibit B

 

Pre-Export Credit Agreement

 

See attached.

 

 

 

Exhibit C

FORM OF ASSIGNMENT AGREEMENT

 

This Assignment Agreement (as amended, supplemented or otherwise modified from time to time, the “Assignment”), is dated as of [●], and made by and between [Koninklijke Bunge B.V., a private limited liability company organized under the laws of The Netherlands][Bunge Iberica Finance SL, a [●] organized under the laws of Spain] (the “Assignor”) and Sumitomo Mitsui Banking Corporation, as administrative agent under that certain Pre-Export Credit Agreement (defined below) on behalf of the Pre-Export Lenders (as defined below)(the “Assignee”), and is acknowledged by [insert name of Pre-Export Borrower that is the borrower under the existing pre-export loan being assigned] (the “Applicable Borrower”).

 

WHEREAS, pursuant to the Master Export Prepayment Agreement, dated as of [●], between the Assignor and the Applicable Borrower and any promissory notes issued by the Applicable Borrower in connection therewith (as amended, supplemented or otherwise modified from time to time, collectively the “Existing Pre-Export Loan Agreement”), the Assignor has previously made one or more purchase price advance(s) to the Applicable Borrower (the “Existing Pre-Export Loans”) for the future export of Brazilian raw and/or white sugar, Brazilian hydrous ethanol and/or Brazilian anhydrous ethanol, and/or other sugarcane-based products and/or any product of the Pre-Export Borrowers (as defined below) (the “Products”) which remain outstanding;

 

WHEREAS, pursuant to the Existing Pre-Export Loan Agreement, the Applicable Borrower has previously pledged a security interest in certain export contracts described on Schedule II attached hereto (the “Existing Export Contracts”; together with the Existing Pre-Export Loan Agreement and all documents executed in connection therewith, the “Existing Loan Documents”), including, without limitation, all amounts owed by the buyers under such Existing Export Contracts (the “Existing Off-Takers”) for the Products;

 

WHEREAS, the Applicable Borrower and certain of its affiliates, as co-borrowers (collectively, the “Pre-Export Borrowers”), the banks and other financial institutions or entities from time to time parties thereto as lenders (the “Pre-Export Lenders”) and the Assignee, as administrative agent on behalf of the Pre-Export Lenders have entered into a Pre-Export Financing Agreement, dated as of May 1, 2018 (the “Pre-Export Credit Agreement”), pursuant to which the Pre-Export Lenders will agree to make pre-export loans, by means of new financing or taking assignments of the Existing Pre-Export Loans (the “Pre-Export Loans”) to the Pre-Export Borrowers pursuant to the terms thereof;

 

WHEREAS, in connection with the Pre-Export Credit Agreement, the Pre-Export Borrowers have pledged a security interest in (x) export receivables to be paid by a newly formed wholly-owned direct or indirect subsidiary of Usina Moema Açúar e Álcool S.A. (to be formed outside of Brazil) acting as off-taker (the “New Off-Taker”) under a new export contract between the New Off-Taker and the Pre-Export Borrowers and other export contracts between the New Off-Taker and Eligible Importers (as defined in the Pre-Export Credit Agreement) (collectively, the “New Export Contracts”) to be pledged by the Pre-Export Borrowers to the Pre-Export Administrative Agent for the benefit of the Pre-Export Lenders and the other secured parties and (y) certain other collateral described in the security documentation to be executed as a condition precedent to Conversion (together with the New Export Contract, the “New Collateral”);

 

 

WHEREAS, the parties hereto desire to effect the following transactions as of the date of this Assignment (the “Assignment Date”): (i) have the Assignor assign (at par) to the Assignee all of its right to receive all future exports and payments related to the Existing Pre-Export Loans that are described on Schedule I attached hereto (the “Assigned Pre-Export Loans”) that remain outstanding in the principal amounts set forth on Schedule I hereto (the “Outstanding Amounts”) (including, without limitation, all export proceeds received under the Existing Export Contracts)  solely to the extent related to such Assigned Pre-Export Loans, (ii) have the Assignor assign to the Assignee the Assignor’s security interest in the Existing Export Contracts solely to the extent related to such Assigned Pre-Export Loans, (iii) have the Assignee pay the Assignor a purchase price for such Assigned Pre-Export Loans in U.S. dollars in an amount equal to the amount set forth on Schedule III attached hereto (the “Purchase Price”), (iv) replace all of the Applicable Borrower’s obligations to the Assignor under the Existing Pre-Export Loan Agreement and the security interest in the Existing Export Contracts with obligations of the Applicable Borrower under the Pre-Export Credit Agreement and the security interest in the New Collateral solely to the extent related to the Assigned Pre-Export Loans, (v) the Assigned Pre-Export Loans will be deemed to be, and be treated as, a Pre-Export Loan subject to the terms and conditions of the Pre-Export Credit Agreement which will amend and restate the Existing Pre-Export Loan Agreement (and any related promissory note evidencing such Assigned Pre-Export Loan will be automatically cancelled without further action by the Assignee, the Assignor or the Applicable Borrower) solely to the extent related to such Assigned Pre-Export Loans and (vi) such Pre-Export Loan will be secured by a security interest in the New Export Contracts (including, without limitation, all amounts owed by the New Off-Taker and Eligible Importers thereunder) and the other New Collateral, which will be substituted for and replace the Existing Export Contracts in their entirety solely to the extent related to the Assigned Pre-Export Loans, and the security interest in the Existing Contracts will be automatically released solely to the extent related to the Assigned Pre-Export Loans without further action by the Pre-Export Administrative Agent, KBBV or BIF.

 

W I T N E S S E T H

 

1.          Effective as of the Assignment Date, (a) the Assignor hereby irrevocably and unconditionally assigns and transfers to the Assignee, and the Assignee hereby accepts the assignment and transfer of all of the Assignor’s right, title and interest (i) in, to and under the security interest in the right to receive payments on all exports under the Existing Export Contracts, principal and interest payments related to the Outstanding Amounts of the Assigned Pre-Export Loans (including, without limitation, the export proceeds under the Existing Export Contracts) and all other amounts owed by the Applicable Borrower from time to time under the Existing Pre-Export Loan Agreement  solely to the extent related to such Assigned Pre-Export Loans, (ii) in, to and under the security interest in the right to receive payments on all Existing Export Contracts solely to the extent related to such Assigned Pre-Export Loans and (iii) in, to and under the Existing Pre-Export Loan Agreement (the “Transferred Rights”); provided, that the Transferred Rights shall not include any of the Assignor’s obligations under the Assigned Pre-Export Loans or the Existing Pre-Export Loan Agreement or any related promissory note evidencing such Assigned Pre-Export Loans and (b) the Assignor hereby (i) cancels any promissory notes evidencing the amount due under the Assigned Pre-Export Loans and (ii) agrees to mark such promissory notes as cancelled and promptly deliver the original copy of such promissory notes to the Applicable Borrower.

 

 

2.          As consideration for the assignments described in Section 1, the Assignee agrees to pay the Assignor the Purchase Price by transferring cash denominated in U.S. dollars no later than 2:00 p.m. (New York City time) on the Assignment Date in accordance with the payments instructions set forth in Schedule IV attached hereto.  Upon the receipt of the Purchase Price from the Assignee, all of the obligations and responsibilities of the Applicable Borrower to the Assignor solely to the extent related to the Assigned Pre-Export Loans shall be released, the Assigned Pre-Export Loans will be deemed to be, and be treated as, a Pre-Export Loan subject to the terms of the Pre-Export Credit Agreement and the Applicable Borrower and the Assignee shall be the sole parties with any remaining rights, obligations and responsibilities with respect to such Pre-Export Loan.

 

3.          The Applicable Borrower hereby agrees that as of the Assignment Date and on each day thereafter, (i) the Pre-Export Credit Agreement shall amend and restate the Existing Pre-Export Loan Agreement solely as it relates to the Assigned Pre-Export Loans, (ii) any related promissory notes evidencing amounts due under the Assigned Pre-Export Loans shall be cancelled without further action by the Assignor or the Applicable Borrower; provided, that the Assignor shall mark such promissory notes as cancelled and promptly deliver a certificate to the Assignee attesting that such promissory notes were duly cancelled, (iii) any Existing Pre-Export Loans made by the Assignor to the Applicable Borrower which are not assigned hereunder and have not previously been assigned by the Assignor to the Administrative Agent shall remain subject to the terms and conditions of the Existing Pre-Export Loan Agreement and shall continue to be secured by the Existing Export Contracts, (iv) the Pre-Export Loans will be secured by a security interest in the New Export Contracts (including, without limitation, all amounts owed by the New Off-Taker and Eligible Importers thereunder) and the other New Collateral, which will be substituted for and replace the Existing Export Contracts in their entirety solely as they relate to the Assigned Pre-Export Loans, and the security interest in the Existing Contracts will be automatically released solely to the extent related to the Assigned Pre-Export Loans without further action by the Pre-Export Administrative Agent, KBBV or BIF and (v) the Applicable Borrower will continue to be obligated to pay the Assignee the Outstanding Amounts with respect to the Assigned Pre-Export Loans in accordance with, and subject to the terms and conditions, of the Pre-Export Credit Agreement and such related documents.

 

4.          The Assignor hereby represents and warrants as of the Assignment Date that:

 

		(a)	
The Assignor (i) is duly organized and validly existing under the laws of its jurisdiction of organization or incorporation, (ii) is in good standing under such laws and (iii) has full power and authority to execute, deliver and perform its obligations under this Assignment and the Existing Loan Documents.

 

		(b)	
The Assignor’s execution, delivery, and performance of this Assignment and the Existing Loan Documents have not resulted and will not result in a breach or violation of any provision of (i) the Assignor’s organizational documents, (ii) any statute, law, writ, order, rule or regulation of any governmental authority applicable to the Assignor, (iii) any judgment, injunction, decree or determination of any governmental authority applicable to the Assignor or (iv) any contract, indenture, mortgage, loan agreement, note, lease or other agreement, document or instrument to which the Assignor is a party, by which Assignor is bound or to which any of the assets of Assignor is subject.

 

 

		(c)	
(i)        This Assignment and the Existing Loan Documents (A) have been duly and validly authorized, executed and delivered by the Assignor and (B) are the legal, valid and binding obligations of the Assignor, enforceable against the Assignor in accordance with their respective terms, except that such enforceability against the Assignor may be limited by bankruptcy, insolvency, or other similar laws of general applicability affecting the enforcement of creditors’ rights generally and by a court’s discretion in relation to equitable remedies; and

 

(ii)          no notice to, registration with, consent or approval of or any other action by any relevant governmental authority or other entity or person is or will be required for the Assignor to execute, deliver, and perform its obligations under, the Existing Loan Documents or this Assignment, except for such notices, registrations, consents or approvals that have been obtained as of the Assignment Date.

 

		(d)	
The Assignor is the sole legal and beneficial owner of and has good title to each of the Assigned Pre-Export Loans and the other Transferred Rights free and clear of any liens or other encumbrances.

 

		(e)	
No proceedings before any governmental authority, including, without limitation, before any court, arbitrator or administrative or governmental body, are or have been pending against the Assignor or, to the best of the Assignor’s knowledge, threatened against the Assignor before any relevant governmental authority that, in the aggregate, could reasonably be expected to affect (i) the Transferred Rights or (ii) any action taken or to be taken by the Assignor under this Assignment.

 

		(f)	
The outstanding principal amount(s) of the Assigned Pre-Export Loans as of the date hereof are accurately stated in Schedule I.

 

		(g)	
The Assignor has not engaged in any acts or conduct or made any omissions (including, without limitation, by virtue of Assignor’s holding any funds or property of, or owing amounts or property to, the Applicable Borrower), that could be reasonably be expected to adversely affect the Assignee’s ability to enforce or recover on the Assigned Pre-Export Loans.

 

		(h)	
The Assignor has complied with, and has performed, all obligations required to be complied with or performed by it under the Existing Loan Documents, and the Assignor has not breached any of its representations, warranties, obligations, agreements or covenants under any of the Existing Loan Documents.

 

		(i)	
No broker, finder or other entity or person acting under the authority of the Assignor or any of its affiliates is entitled to any broker’s commission or other fee in connection with this Assignment for which the Assignee could be responsible.

 

		(j)	
The Assignor has not effected or received the benefit of any setoff against the Applicable Borrower on account of the Transferred Rights.

 

		(k)	
The Assignor (i) is a sophisticated entity with respect to the sale of the Transferred Rights, (ii) has adequate information concerning the business and financial condition of the Applicable Borrower to make an informed decision regarding the assignment of the Transferred Rights and (iii) has independently and without reliance upon the Assignee, and based on such information as the Assignor has deemed appropriate, made its own analysis and decision to enter into this Assignment.  The Assignor acknowledges that the Assignee has not given the Assignor any investment advice, credit information or opinion on whether the sale of the Transferred Rights is prudent.

 

 

		(l)	
The Assignor provided to the Assignee, on or prior to the date hereof the Existing Pre-Export Credit Agreement and all other Existing Loan Documents, including, without limitation, intercreditor agreements, subordination agreements, waivers and amendments and all other agreements executed in connection therewith, in each case as currently in effect.  A true and complete list of the Existing Loan Documents specified in the immediately preceding sentence is set forth in the Schedule II.

 

		(m)	
Except as disclosed on Schedule II, the Assignor has not given its consent to change, nor has it waived, any term or provision of any Existing Loan Document, including, without limitation, with respect to the amount or time of any payment of principal or the rate or time of any payment of interest.

 

		(n)	
There are no funding obligations on the part of the Assignor or any other monetary obligation of any kind on the part of the Assignor (whether fixed, contingent, conditional or otherwise) in respect of the Assigned Pre-Export Loans (including, without limitation, making advances or relating to any currency or interest rate swap, hedge or similar arrangement) that the Assignor is required to pay or otherwise perform that the Assignor has not paid or otherwise performed in full.

 

	 	
(o)

	
There are no other agreements, amendments or contracts (whether written or oral) entered into by the Applicable Borrower with the Assignor in connection with the Existing Pre-Export Loan Agreement except for the Existing Export Contracts; provided, that all of the Assignor’s right, title and interest in, to and under any additional agreement, amendment or contract entered into in connection with the Existing Pre-Export Loan Agreement shall still be assigned to the Assignee under this Assignment.

 

5.          The Assignor acknowledges that (a) its assignment of the Transferred Rights to the Assignee is irrevocable; (b) the Assignor shall have no recourse to the Transferred Rights; and (c) the Assignor shall have no recourse to the Assignee.

 

6.          The Assignor hereby agrees that effective as the Assignment Date, the Assignor shall execute and deliver such other documents and take such other actions from time to time as shall be reasonably requested by the Assignee to effect the assignments under Section 1, and the Assignor hereby permits and authorizes the filing by or on behalf of the Applicable Borrower or the Assignee of, all filings and registrations with any federal, state, local or regulatory authority or agency in Brazil or the United States that are reasonably necessary to evidence such assignments and releases, including, without limitation, evidence of the electronic registration of the terms and conditions of each Assigned Pre-Export Loan with the Central Bank of Brazil, under the Module Registry of Financial Transaction (“Módulo de Registro de Operação Financeira - ROF”), duly amended and restated to reflect the relevant assignment hereunder, in a form satisfactory to the Assignee.

 

 

7.          THIS ASSIGNMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

8.          EACH OF THE ASSIGNOR AND THE ASSIGNEE HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS ASSIGNMENT OR ANY COUNTERCLAIM THEREIN.

 

9.          Each of the Assignor and Assignee hereby irrevocably and unconditionally:

 

		(a)	
submits for itself and its property in any legal action or proceeding relating to this Assignment, or for recognition and enforcement of any judgment in respect thereof, to the non exclusive general jurisdiction of the courts of the State of New York sitting in New York County, the courts of the United States for the Southern District of New York, and appellate courts from any thereof;

 

		(b)	
consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; and

 

		(c)	
waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section any special, exemplary, punitive or consequential damages.

 

10.          The Assignor (i) irrevocably designates and appoints Bunge Limited’s (“BL”) chief financial officer (from time to time) at BL’s principal executive offices at 50 Main Street, White Plains, New York 10606 (the “Authorized Agent”), as its agent upon which process may be served in any suit, action or proceeding related to this Assignment and represents and warrants that the Authorized Agent has accepted such designation and (ii) agrees that service of process upon the Authorized Agent and written notice of said service to the Assignor mailed or delivered by a recognized international courier service (with proof of delivery) to BL’s Secretary or any Assistant Secretary at BL’s office at 50 Main Street, White Plains, New York 10606, shall be deemed in every respect effective service of process upon the Assignee in any such suit or proceeding.

 

11.          This Assignment may be executed in one or more counterparts and by facsimile signature, all of which taken together shall constitute one and the same instrument.

 

12.          This Assignment will inure to the benefit of and be binding upon the parties hereto.  Nothing expressed or implied herein is intended or shall be construed to confer upon or to give to any person, other than the parties hereto, any right, remedy or claim under or by reason of this Assignment, and the terms, conditions, promises and agreements contained herein shall be for the sole and exclusive benefit of the parties hereto.

 

 

13.          No amendment or waiver of any provision of this Assignment shall in any event be effective unless such amendment or waiver shall be in writing and signed by the parties hereto.

 

 

 

 

In confirmation of their mutual consent and agreement to the terms and conditions contained in this Assignment and intending to be legally bound thereby, the Assignor, the Assignee and the Borrower have executed this Assignment as of the date first above written.

 

	 	
[KONINKLIJKE BUNGE B.V][BUNGE IBERICA FINANCE SL],

as Assignor

 

By:_______________________________

Name: ____________________________

Title: _____________________________

 

	 	 
	 	
SUMITOMO MITSUI BANKING CORPORATION, in its capacity as Pre-Export Administrative Agent,

as Assignee

 

By:_______________________________

Name: ____________________________

Title: _____________________________

 

	 	 
	 	 
	 	 
	
Acknowledged and Agreed:

 

 

[NAME OF PRE-EXPORT BORROWER],

as Applicable Borrower

 

By:_______________________________

Name: ____________________________

Title: _____________________________

 

	 

SCHEDULE I

Outstanding Amounts

	
Date of Advance

	
Outstanding Amount

	 	 

 

 

 

 

 

SCHEDULE II

Existing Export Contracts

[List all Existing Export Contracts related to the Assigned Pre-Export Loans]

 

 

 

 

 

2

SCHEDULE III

Calculation of Purchase Price

	
Aggregate outstanding principal amount of Assigned Pre-Export Loans

	
U.S.$_______________

	 	 
	
Accrued interest of Assigned Pre-Export Loans

	
U.S. $_______________

	 	 
	
Purchase Price

	
U.S. $______________

 

 

 

 

3

 

SCHEDULE IV

Assignor Payment Instructions

[Bunge to provide]

 

 

 

4

Exhibit D

FORM OF SOLVENCY CERTIFICATE

 

Date:  [●]1

 

To the Revolving Administrative Agent and each of the Revolving Lenders party to the Revolving Credit Agreement as of the Conversion Date:

 

I, the undersigned, the [title] of each of the Pre-Export Borrowers, in that capacity only and not in my individual capacity (and without personal liability), do hereby certify as of the date hereof, and based upon facts and circumstances as they exist as of the date hereof (and disclaiming any responsibility for changes in such facts and circumstances after the date hereof), that:

 

1.          This certificate is furnished to the Pre-Export Administrative Agent and the Pre-Export Lenders pursuant to Section 2.3(k) of the Framework Agreement, dated as of May 1, 2018 (as the same may be amended, supplemented, amended and restated or otherwise modified from time to time, the “Framework Agreement”), among BUNGE LIMITED, BUNGE LIMITED FINANCE CORP., as revolving borrower,  USINA MOEMA AÇÚCAR E ÁLCOOL S.A. (“Usina Moema”), PEDRO AFONSO AÇÚCAR & BIOENERGIA LTDA. (“Usina Pedro Afonso”), AGROINDUSTRIAL SANTA JULIANA LTDA. (“Usina Santa Juliana”), MONTEVERDE AGRO-ENERGETICA S.A. (“Usina Monteverde”),  USINA GUARIROBA LTDA. (“Usina Guariroba”), USINA ITAPAGIPE AÇÚCAR E ÁLCOOL LTDA. (“Usina Itapagipe”), USINA FRUTAL AÇÚCAR E ÁLCOOL LTDA. (“Usina Frutal”), and USINA OUROESTE AÇÚCAR E ÁLCOOL LTDA. (“Usina Ouroeste”); Usina Moema, Usina Pedro Afonso, Usina Santa Juliana, Usina Monteverde, Usina Guariroba, Usina Itapagipe, Usina Frutal and Usina Ouroeste  shall each be referred to individually as a “Pre-Export Borrower” and collectively, as the “Pre-Export Borrowers”), the Revolving Lenders, the Pre-Export Lenders, and SUMITOMO MITSUI BANKING CORPORATION, as administrative agent under that certain Revolving Credit Agreement (in such capacity, the “Revolving Administrative Agent”) and that certain Pre-Export Credit Agreement (in such capacity, the “Pre-Export Administrative Agent”). Unless otherwise defined herein, capitalized terms used in this certificate shall have the meanings set forth in the Framework Agreement.

 

2.          For purposes of this certificate, I, or officers of the Pre-Export Borrowers under my direction and supervision, have performed the following procedures as of and for the periods set forth below.

 

(a)          I have reviewed the financial statements (including, without limitation, the pro forma financial statements) referred to in Section 2.3(l) of the Framework Agreement.

 

(b)          I have knowledge of and have reviewed to my satisfaction the Framework Agreement, the Revolving Credit Agreement and the Pre-Export Credit Agreement.

1 NTD: Solvency Certificate to be dated 5 Business Days prior to the Conversion Date.

 

 

5

 

(c) As [title] of each Pre-Export Borrower, I am familiar with the financial condition of the Pre-Export Borrowers.

 

3. Based on and subject to the foregoing, I hereby certify on behalf of the Pre-Export Borrowers that after giving effect to the consummation of the Conversion to be consummated on the Conversion Date, the making of any Pre-Export Loans and the use of proceeds of such Pre-Export Loans on the Conversion Date and the initial borrowing thereunder, it is my opinion that the Pre-Export Borrowers taken as a whole are and will be Solvent. As used herein, “Solvent” means, with respect to the Pre-Export Borrowers on a particular date, that on such date, taken as a whole (a) the fair value of the property of the Pre-Export Borrowers is greater than the total amount of liabilities, including, without limitation, contingent liabilities, of the Pre-Export Borrowers, (b) the present fair salable value of the assets of the Pre-Export Borrowers is not less than the amount that will be required to pay the probable liability of the Pre-Export Borrowers on their debts as they become absolute and matured, (c) the Pre-Export Borrowers do not intend to, and do not believe that they will, incur debts or liabilities beyond the Pre-Export Borrowers’ ability to pay such debts and liabilities as they mature and (d) the Pre-Export Borrowers are not engaged in business or a transaction, and are not about to engage in business or a transaction, for which the Pre-Export Borrowers’ property would constitute an unreasonably small capital. When determining whether the Pre-Export Borrowers are Solvent, the amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

 

 

6

 

IN WITNESS WHEREOF, the Pre-Export Borrowers have caused this certificate to be executed on their behalf by an authorized officer thereof as of the date first written above.

 

	 	
[  ]

	 	 	 	 
	 	 	 	 
	 	
By:

	 	 
	 	 	
Name:

	 
	 	 	
Title:

	 
	 	 	 	 

 

 

 

 

Exhibit E

Description of Properties

	
Real Estate Record File

	
Current Owner

	
Location

	
Description of the relevant facilities

	
Description of the facility

	
Capacity of the facility

	
[·]

	
[·]

	
[·]

	
[Sugar mill facility]

	
[·]

	
[·]

	
[·]

	
[·]

	
[Sugar mill facility]

	
[·]

	
[·]

	
[·]

	
[·]

	
[Sugar mill facility]

	
[·]

	
[·]

	
[·]

	
[·]

	
[Sugar mill facility]

	
[·]

	
[·]

	
[·]

	
[·]

	
[Sugar mill facility]

	
[·]

	
[·]

	
[·]

	
[·]

	
[Sugar mill facility]

	
[·]

	
[·]

	
[·]

	
[·]

	
[Sugar mill facility]

	
[·]

	
[·]

	
[·]

	
[·]

	
[Sugar mill facility]

	
[·]

 

 

 

 

 

Exhibit F

Sugar Cane

	
Pre-Export Borrower

	
Description of Location of Sugar Cane

	 	 
	
[●]

	
[●]

	
[●]

	
[●]

	
[●]

	
[●]

	
[●]

	
[●]

	
[●]

	
[●]

	
[●]

	
[●]

 

 

 

 

 

 

 

Annex 1

 

Initial Potential Controlling Shareholder List

 

		1.	
AdecoAgro

 

		2.	
BP

 

		3.	
Brookfield

 

		4.	
COFCO

 

		5.	
Glencore (including Glencore Agri)

 

		6.	
Raizen (including Cosan)

 

		7.	
Sao Martinho

 

		8.	
Suedzucker

 

		9.	
Tereos

 

		10.	
Wilmar

 

 

 

 

 

Annex 2

 

Existing KBBV Pre-Export Loans and KBBV Pre-Export Loan Agreements

 

	
Lender

	
Borrower

	
KBBV Pre-Export Loan Agreement

	
Date of Advances

	
Outstanding Principal Balance (BRL)

	
KBBV

	
Usina Ouroeste Açúcar e Álcool Ltda.

	
Master Export Prepayment Agreement dated January 9, 2018

	
7/28/2017

 

7/28/2017

 

	
51,458,890

 

84,451,500

	
KBBV

	
Monteverde Agro-Energetica S.A.

	
Master Export Prepayment Agreement dated January 9, 2018

 

	
6/20/2017

	
82,552,043.53

	
KBBV

	
Usina Frutal Açúcar e Álcool Ltda.

	
Master Export Prepayment Agreement dated January 9, 2018

	
11/9/2017

 

11/9/2017

 

	
77,887,800

 

49,802,025

	
KBBV

	
Usina Itapagipe Açúcar e Álcool Ltda.

	
Master Export Prepayment Agreement dated January 9, 2018

	
9/14/2017

 

9/14/2017

 

	
47,981,600

 

33,422,925

	
KBBV

	
Usina Moema Açúcar e Álcool S.A.

	
Master Export Prepayment Agreement dated October 20, 2016

	
10/20/2016

 

10/28/2016

 

11/28/2016

 

	
135,000,000

 

260,000,000

 

90,200,612.94

 

 

Annex 3

 

Existing BIF Pre-Export Loans and BIF Pre-Export Loan Agreements

 

	
Lender

	
Borrower

	
BIF Pre-Export Loan Agreement

	
Date of Advances

	
Outstanding Principal Balance (BRL)

	
BIF

	
Usina Moema Açúcar e Álcool S.A.

	
Master Export Prepayment Agreement dated September 15, 2016, as amended by Amendment No. 1 to Master Export Prepayment Agreement dated January 9, 2018

	
3/18/2016

 

8/24/2016

 

9/15/2016

 

	
53,005,730

 

145,145,845.75

 

200,000,000

 

	
BIF

	
Usina Ouroeste Açúcar e Álcool Ltda.

	
Master Export Prepayment Agreement dated November 29, 2010, as assigned by Bunge International Commerce Ltd. (“BIC”) to BIF pursuant to that Assignment and Assumption Agreement dated November 29, 2010

 

	
7/28/2017

 

7/28/2017

	
51,458,890

 

84,451,500

	
BIF

	
Usina Itapagipe Açúcar e Álcool Ltda.

	
Master Export Prepayment Agreement dated November 29, 2010, as assigned by BIC to BIF pursuant to that Assignment and Assumption Agreement dated November 29, 2010, as amended by Amendment No. 1 to Master Export Prepayment Agreement dated January 9, 2018

 

	
9/14/2017

 

9/14/2017

	
47,981,600

 

33,422,925

	
BIF

	
Usina Guariroba Ltda.

	
Master Export Prepayment Agreement dated November 29, 2010, as assigned by BIC to BIF pursuant to that Assignment and Assumption Agreement dated November 29, 2010, as amended by Amendment No. 1 to Master Export Prepayment Agreement dated January 9, 2018

 

	
3/16/2016

 

4/20/2016

	
160,535,400

 

36,558,350

 

 

	
BIF

	
Usina Frutal Açúcar e Álcool Ltda.

	
Master Export Prepayment Agreement dated November 29, 2010, as assigned by BIC to BIF pursuant to that Assignment and Assumption Agreement dated November 29, 2010, as amended by Amendment No. 1 to Master Export Prepayment Agreement dated January 9, 2018

 

	
11/9/2017

 

11/9/2017

	
77,887,800

 

49,802,025

	
BIF

	
Pedro Afonso Açúcar & Bioenergia Ltda.

	
Master Export Prepayment Agreement dated November 29, 2010, as assigned by BIC to BIF pursuant to that Assignment and Assumption Agreement dated November 29, 2010, as amended by Amendment No. 1 to Master Export Prepayment Agreement dated January 9, 2018

 

	
3/27/2015

 

11/25/2015

 

9/15/2016

	
42,446,950

 

207,447,500

 

181,065,100

	
BIF

	
Agroindustrial Santa Juliana Ltda.

	
Master Export Prepayment Agreement dated November 29, 2010, as assigned by BIC to BIF pursuant to that Assignment and Assumption Agreement dated November 29, 2010, as amended by Amendment No. 1 to Master Export Prepayment Agreement dated January 9, 2018

 

	
3/27/2015

 

11/25/2015

 

10/28/2016

	
34,149,050

 

510,640,000

 

6,490,250

 

 

 

	
BIF

	
Monteverde Agro-Energetica S.A.

	
Master Export Prepayment Agreement dated January 9, 2018

 

	
June 20, 2017

	
82,552,043.53

 

 

 

 

 

 

 

Annex 4

 

Affiliated Committed Lenders

 

	
Revolving Lender

	
Affiliated Committed Lender

	
Sumitomo Mitsui Banking Corporation

	
Banco Sumitomo Mitsui Brasileiro S/A

	
ABN AMRO Bank N.V.

	
N/A

	
ING Bank N.V.

	
N/AExhibit

Exhibit 10.2

CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.
2005 EXECUTIVE INCENTIVE PLAN

Amended & Restated effective January 1, 2018

i

Exhibit 10.2

CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.
2005 EXECUTIVE INCENTIVE PLAN

PURPOSE

The purpose of the Plan is to provide executives designated by the Company’s Board of Trustees as eligible to participate in the Plan with incentives to achieve goals which are important to shareholders and customers of the Company, to supplement the Company’s salary and benefit programs so as to provide overall compensation for such executives which is competitive with those corporations with which the Company competes for the best executive talent, and to assist the Company in attracting, retaining and motivating executives who are important to the continued success of the Company.

ii

Exhibit 10.2

TABLE OF CONTENTS 
                                                                                                                                                       Page
    
	
				
	ARTICLE I. DEFINITIONS.......................................................................................
	1
	

	1.01
	......................................................................Adjusted Target Incentive Fund
	1
	

	1.02
	................................................................................Annual Incentive Awards
	1
	

	1.03
	..................................................................................................................AIP
	1
	

	1.04
	................................................................................................................ATIP
	1
	

	1.05
	.....................................................................................................Award Date
	1
	

	1.06
	...........................................................................................Board of Trustees
	1
	

	1.07
	...........................................................................................Board of Directors
	1
	

	1.08
	................................................................................................Capital Budget
	2
	

	1.09
	...............................................................................................................CEBs
	2
	

	1.10
	.....................................................................................................Net Income
	2
	

	1.11
	..................................................................................................................CEI
	2
	

	1.12
	.................................................................................................................CET
	2
	

	1.13
	......................................................................................................Committee
	2
	

	1.14
	........................................................................................................CECONY
	2
	

	1.15
	..........................................................................Deferred Income Plan or DIP
	2
	

	1.16
	.................................................................................................Effective Date
	2
	

	1.17
	............................................................................................Executive Officer
	2
	

	1.18
	..............................................................................................Incentive Award
	3
	

	1.19
	......................................................................................Incentive Percentage
	3
	

	1.20
	.............................................................................................................Officer
	3
	

	1.21
	............................................................................................Operating Budget
	3
	

	1.22
	..................................................................Operating Performance Indicators
	3
	

	1.23
	................................................................................................................O&R
	3
	

	1.24
	.......................................................................................................Participant
	3
	

	1.25
	...................................................................................Performance Indicators
	3
	

	1.26
	.................................................................................................................Plan
	3
	

	1.27
	...........................................................................................Plan Administrator
	4
	

	1.28
	...............................................................................................Potential Award
	4
	

	1.29
	.....................................................................................Target Incentive Fund
	4
	

	 
	 
	 

	ARTICLE II. ELIGIBILITY.........................................................................................
	4
	

	2.01
	........................................................................................................................
	4
	

	2.02
	........................................................................................................................
	4
	

	2.03
	........................................................................................................................
	4
	

	 
	 
	 

	ARTICLE III. ADMINISTRATION
	5
	

	3.01
	........................................................................................................................
	5
	

	 
	 
	 

	ARTICLE IV. DETERMINATION OF AWARDS
	5
	

	4.01
	......................................................................Incentive Percentages (Officer)
	5
	

iii

Exhibit 10.2

	
				
	4.02
	.....................................................................................Target Incentive Fund
	5
	

	4.03
	......................................................................Adjusted Target Incentive Fund
	6
	

	4.04
	.............................................................................................Incentive Awards
	6
	

	4.05
	..........................................................................Awards to Executive Officers
	7
	

	 
	 
	 

	ARTICLE V. PAYMENT OF AWARDS......................................................................
	8
	

	5.01
	.............................................................................................Time of Payment
	9
	

	5.02
	........................................................................................Manner of Payment
	9
	

	5.03
	...................................................................................Posthumous Payments
	9
	

	5.04
	...................................................................................Recoupment of Awards
	9
	

	 
	 
	 

	ARTICLE VI. MISCELLANEOUS.............................................................................
	9
	

	6.01
	..........................................................................Amendment and Termination
	10
	

	6.02
	..................................................................................................Effect of Plan
	10
	

	6.03
	.....................................................................................................Withholding
	10
	

	6.04
	...........................................................................................................Funding
	10
	

	6.05
	..................................................................................................Nonalienation
	10
	

iv

CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.
2005 EXECUTIVE INCENTIVE PLAN

ARTICLE I. DEFINITIONS

The following terms when capitalized herein shall have the meanings set forth below.

1.01    Adjusted Target Incentive Fund
shall have the meaning set forth in Section 4.03(c).

1.02    Annual Incentive Awards
shall mean annual awards made under the terms of this Plan, the AIP, the ATIP, the CET Annual Incentive Plan, and the Management Variable Pay Program.

1.03    AIP
shall mean the Con Edison Clean Energy Businesses, Inc. Annual Incentive Plan, as may be amended from time to time, or may mean, the Con Edison Transmission, Inc. (“CET”) Annual Incentive Plan, as set forth in Section 4.05 herein.

1.04    ATIP
shall mean the O&R Annual Team Incentive Program, as may be amended from time to time.

1.05    Award Date
shall mean, with respect to any Incentive Award, January 1 of the year following the year to which such Incentive Award relates.

1.06    Board of Trustees
shall mean the Board of Trustees of the Company or the Management Development and Compensation Committee of the Board of Trustees, if the Board has given the Committee authority to act on its behalf.

1.07    Board of Directors
shall mean the Board of Directors of Consolidated Edison, Inc. or the Management Development and Compensation Committee of the Board of Directors, if the Board of Directors has given the Committee authority to act on its behalf.

1

1.08    Capital Budget
shall mean the portion of the Capital Budget approved by the applicable Board that is comprised of capital expenditures, including electric, gas, steam, and common.  The Capital Budget goal may exclude certain expenditures as determined and approved by the Board.

1.09    CEBs
shall mean the Competitive Energy Businesses; awards made after January 1, 2018 shall mean Clean Energy Businesses, Inc.

1.10    Net Income
shall mean net income from ongoing operations, which includes income from operations after subtracting all expenses incurred, including federal and state income taxes.  Net income shall not include extraordinary non-recurring items identified after the target is established.  Net income shall be net of the reserve that is established for the Target Incentive Fund and awards made under the Annual Incentive Awards during the year-end closing and shall not be weather normalized. 

1.11    CEI
shall mean Consolidated Edison, Inc., or any successor by merger, purchase or otherwise.

1.12    CET 
shall mean Con Edison Transmission, Inc. 

1.13    Committee
shall mean The Management Development and Compensation Committee of the Board of Directors or the Management Development and Compensation Committee of the Board of Trustees, as applicable.

1.14    CECONY
shall mean Consolidated Edison Company of New York, Inc. or any successor by merger, purchase or otherwise.

1.15    Deferred Income Plan or DIP
shall mean the Consolidated Edison Company of New York, Inc. Deferred Income Plan, as amended from time to time.

1.16    Effective Date
shall mean January 1, 2005.

1.17    Executive Officer
shall mean an executive of the Company who holds the position of Chairman and Chief Executive Officer,  Senior Vice President and Chief Financial Officer, Senior Vice President and General Counsel, Senior Vice President - Corporate Affairs,  Vice President and General Auditor;  President and Chief Executive Officer of Orange and 

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Rockland, Inc., any Vice President of Orange and Rockland Utilities Inc., Senior Vice President - Corporate Shared Services, Senior Vice President - Utility Shared Services and President and Chief Executive Officer of Con Edison Transmission, Inc.  

1.18    Incentive Award
shall have the meaning set forth in Section 4.04 or Section 4.05, as applicable.

1.19    Incentive Percentage
shall have the meaning set forth in Section 4.01.

1.20    Officer
shall mean an executive of CECONY who is not an Executive Officer.

1.21    Operating Budget
shall mean the portion of the O & M Budget approved by the applicable Board which is comprised of departmental expenses, including Interference and Uncollectible expenses.  Operating Budget shall not include corporate expenses such as employee benefits, damages and lawsuits, rental fees (transformer vault rental) and external audit fees.

1.22    Operating Performance Indicators
shall mean the performance indicators used to determine an incentive award and shall be either the same as the component used for determining awards under Section 4.04 of this Plan, the ATIP, the AIP, or a combination thereof as applicable to the Executive Officer and as set forth in Section 4.05.

1.23    O&R
shall mean Orange and Rockland Utilities, Inc.

1.24    Participant
shall mean any individual who is eligible to participate in the Plan in accordance with Article II.

1.25    Performance Indicators
shall mean health and safety, operational considerations, customer satisfaction, reliability, environmental considerations, employee development considerations or any other or additional performance indicators that the applicable Board may, from time to time, deem appropriate.

1.26    Plan
shall mean the Consolidated Edison Company of New York, Inc. 2005 Executive Incentive Plan, as amended.

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1.27    Plan Administrator
shall mean the Vice President of Human Resources of the Company or such individual appointed by the Company’s Chief Executive Officer to administer the Plan as provided in Article III.

1.28    Potential Award
shall have the meaning set forth in Section 4.02(c).

1.29    Target Incentive Fund
shall have the meaning set forth in Section 4.02(a).

ARTICLE II. ELIGIBILITY

2.01    The Board of Trustees, in its discretion, from time to time, may designate and change the designation of the Officers within the Company eligible to participate in the Plan.  The Board of Directors, in its discretion, from time to time, may designate the Executive Officers eligible to participate in the Plan.

2.02    To be eligible to receive an award under the Plan for a particular year, an Officer must (a) have been employed by the Company during any portion of such year and (b) not later than September 30 of such year achieve an eligible position level or be designated by the applicable Board as eligible to participate in the Plan.  To be eligible to receive an award under the Plan for a particular year, an Executive Officer, must (x) have been employed by the Company, CEI or O&R during any portion of such year and (y) not later than September 30 of such year achieve an Executive Officer position or be designated by the Board of Directors as eligible to participate in the Plan.

2.03    If a Participant retires or resigns after June 30 at age 55 with at least five years of service, he or she may, in the sole discretion of the Plan Administrator, receive a prorated Incentive Award based on the number of full calendar months worked during the year to which such Incentive Award relates.

ARTICLE III. ADMINISTRATION

3.01    The Committee shall have full power and authority to interpret, construe, administer and make all other decisions in connection with the Plan, including making all factual and legal determinations; correcting any defect, supplying any omission, or reconciling any inconsistency; and taking any and all actions it deems necessary or advisable for the proper administration of the Plan.  To the extent determined by the Committee, administration of the Plan, including, but not limited to the selection of Eligible Employees for participation in the Plan, may be delegated to the Plan

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 Administrator; provided, however, that the Committee shall not delegate to the Plan Administrator any powers, determinations, or responsibilities with respect to (i) any Executive Officers/Officers; and (ii) the approval of performance goals and the certification of results based on such performance goals.  

The Plan Administrator shall make such determinations after receiving the recommendations of the Company’s Chief Executive Officer.  The Plan Administrator shall abstain from any determination under the Plan in which he or she has a personal interest, in which case such determination shall be made by the Company’s Chief Executive Officer.  All determinations of the Committee and the Plan Administrator shall be final and conclusive upon all Participants and any persons asserting any claim derived from a Participant.

ARTICLE IV. DETERMINATION OF AWARDS

4.01    Incentive Percentages (Officer)

The Board of Trustees shall determine a percentage of annual base salary deemed to constitute an appropriate incentive for each Officer eligible to participate in the Plan.  Each such percentage is herein called an “Incentive Percentage”.  The Board of Trustees may, from time to time, increase or decrease any Incentive Percentage, as the Board of Trustees may deem appropriate.

                    Applicable Incentive Percentages for Officers
	
		
	Title
	Incentive Percentage

	Senior Vice President
	50%

	Vice President - CECONY
	40%

4.02    Target Incentive Fund

(a)    At the end of each calendar year, the annual base salary of each Officer eligible to participate in the Plan for such calendar year, as such salary is in effect at the end of such year, shall be multiplied by the Incentive Percentage applicable to the position held by the Officer on September 30.   The sum of such products for all Officers eligible to participate in the Plan for each calendar year is herein called the “Target Incentive Fund” for such year.

(b)    For purposes of calculating the Target Incentive Fund for any calendar year:

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(1)    In the case of an Officer whose employment with the Company has terminated during the calendar year, the annual base salary of such Officer in effect at the time of such termination shall be deemed to be the annual base salary of such Officer at the end of such year.
    
(2)    Deferred compensation, at the annual rate in effect at the end of the calendar year pursuant to an agreement between the Company and an Officer, shall be considered part of such Officer’s annual base salary at the end of such year.

(3)    An Officer’s annual base salary shall be determined without any deduction for pre-tax contributions or after-tax contributions made pursuant to the Consolidated Edison Thrift Savings Plan, the Con Edison Flexible Reimbursement Account Plan, and the Con Edison OPTIONS Program for Management Employees, or the Deferred Income Plan.

(c)    The amount included in the Target Incentive Fund for any calendar year with respect to each Officer is called the Officer’s “Potential Award”.

4.03    Adjusted Target Incentive Fund

(a)    Each calendar year the Board of Trustees shall approve specific criteria and weightings to measure performance during the current performance period (“Performance Goals”).  The Board of Trustees will also determine whether award of the Target Incentive Fund for the preceding calendar year is appropriate based on the results achieved during the preceding Performance Period based on the established Performance Goals or whether and to what extent such Target Incentive Fund shall be reduced, eliminated entirely, or increased.

(b)    Notwithstanding any other provision, the Target Incentive Fund for any calendar year in which the Company omits a dividend on its common stock, or in which the CECONY Net Income is less than ninety percent (90%) of its target, shall be reduced to zero.

(c)    The Target Incentive Fund for a calendar year, as adjusted pursuant to this Section 4.03, is herein called the “Adjusted Target Incentive Fund”.

4.04    Incentive Awards 

(a)    After the Adjusted Target Incentive Fund for a calendar year has been determined as provided in Section 4.03, the Committee of the Board of Trustees, upon the recommendations of the Company’s Chief Executive Officer, shall make, 

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subject to confirmation by the Board of Trustees, awards to individual Participants who are eligible to participate in the Plan based on the achievement of Company performance goals, organizational performance, and the Participant’s individual performance for such year.  Such awards are herein called “Incentive Awards”.  

		
	(1)
	Incentive Awards shall be determined based on the following criteria and weighting:

	
				
	Criteria
	Sr. Vice President
	Vice President
	Scaling

	Adjusted Net Income (CECONY)
	15%
	12.5%
	0% - 100%

	Operating Budget
	20%
	17.5%
	0% - 100%

	Operating  Performance Indicators
	25%
	30.0%
	0% - 100%

	Individual Performance
	40%
	40.0%
	0% - 150%

(b)    If, however, a Participant has entered into an employment agreement with the Company, CEI, CET, CEB or O&R providing for a different basis for the determination of his or her Incentive Award under this Plan, the determination of the amount of his or her Incentive Award will be governed by the terms and conditions set forth in his or her employment agreement.

(c)    The aggregate of all Incentive Awards for a year may not exceed the Adjusted Target Incentive Fund for such calendar year.

4.05     Awards to Executive Officers

The determination of the Incentive Award for an Executive Officer shall be in accordance with this Section 4.05 instead of Sections 4.01, 4.02, 4.03 and 4.04.

The Board of Directors shall determine a percentage of annual base salary deemed to constitute an appropriate incentive for each Executive Officer eligible to participate in the Plan.  The Board of Directors may, from time to time, increase or decrease any Incentive Percentage, as the Board of Directors may deem appropriate. The Incentive Percentage for the President and Chief Executive Officer of CEI will be determined annually as approved by the Board of Directors.

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Applicable Incentive Percentages for Executive Officers

	
		
	Title
	Incentive Percentage

	President  - CECONY
	80%

	President & CEO - O&R
	80%

	President & CEO - CET
	80%

	Sr. Vice President & CFO
	50%

	Sr. Vice President  & General Counsel
	50%

	Sr. Vice President - Corporate Shared Services
	50%

	Sr. Vice President - Corporate Affairs
	50%

	Sr. Vice President  - Utility Shared Services
	50%

	Vice President and General Auditor
	40%

	Vice President - O&R
	40%

(a) Each calendar year the Board of Directors shall approve specific criteria and weightings to measure performance during the current performance period (“Performance Goals”). The Board of Directors will also determine whether an award of the Target Incentive Fund for the preceding calendar year is appropriate based on the results achieved during the preceding performance period relative to the established Performance Goals or whether and to what extent such Target Incentive Fund shall be reduced, eliminated entirely, or increased.  

(b)    Each Executive Officer’s Incentive Award payout will be determined based upon the satisfaction of the applicable Performance Goals.  The Committee of the Board of Directors, however, has the sole discretion to adjust an Executive Officer’s Incentive Award based on a review of the performance of the Company, CEI, O&R, CET, CEB or a combination thereof, including financial, operating and other factors, and based upon the recommendation of the Company’s Chairman and Chief Executive Officer (except with respect to his own award).  The Committee of the Board of Directors shall make, subject to confirmation by the Board of Directors, the Incentive Award to the individual Executive Officer.

(c)    If, however, the Executive Officer has entered into an employment agreement with the Company, CEI, CET, CEB or O&R providing for a different basis for the determination of his or her Incentive Award under this Plan, the determination of the amount of his or her Incentive Award will be governed by the terms and conditions set forth in his or her employment agreement.

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ARTICLE V. PAYMENT OF AWARDS

5.01    Time of Payment

An Incentive Award shall be paid between January 1 and March 15 of the calendar year following the calendar year to which such Incentive Award relates.  A Participant may defer up to 100 percent of his or her Incentive Award into the DIP upon the terms and conditions as set forth in the DIP, less any applicable withholding taxes required to be withheld pursuant to Section 6.03.

5.02    Manner of Payment

Any portion of the Incentive Award that is not deferred under the terms of the DIP shall be paid to the Participant in a single lump sum.

5.03    Posthumous Payments

If a Participant shall die before any payment to be made to the Participant under this Plan has been made, the payment shall be made to the Participant’s estate in a single lump sum in accordance with Section 5.01.

5.04    Recoupment of Awards
The Participant’s Incentive Award, is subject to the CEI’s Recoupment Policy, as amended from time to time.
(a) Under this Recoupment Policy, appropriate actions, as determined by the Committee, will be undertaken by CEI to recoup the Excess Award Amount, as defined below, received by any Participant when:
(1)    The Audit Committee of CEI determines that CEI is required to prepare an accounting restatement due to its material noncompliance with any financial reporting requirement under the securities laws ( a “Restatement”);

(2)    The Participant received an Award during the three-year period preceding the date on which CEI is required to prepare a Restatement; and

(3)    The amount of the Award received by the Participant, based on the erroneous data, was in excess of what would have been paid to the Participant under the Restatement (the “Excess Award Amount”).

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ARTICLE VI. MISCELLANEOUS

6.01    Amendment and Termination

The Company reserves the right, by action of the Board of Trustees, to terminate the Plan entirely, or to temporarily or permanently discontinue the making of awards under the Plan; and further reserves the right, by action of the Board of Trustees or the Plan Administrator, to otherwise modify the Plan from time to time; provided that no such modification, termination, or discontinuance shall adversely affect the rights of Participants with respect to Incentive Awards previously determined; and provided further, that no modification by action of the Plan Administrator shall have a material effect on the benefits payable under the Plan.

6.02    Effect of Plan

The establishment and continuance of the Plan shall not constitute a contract of employment between the Company and any employee.  No person shall have any claim to be granted an award under the Plan and there is no obligation for uniformity of treatment of employees or Participants under the Plan.  Neither the Plan nor any action taken under the Plan shall be construed as giving to any employees the right to be retained in the employ of the Company, nor any right to examine the books of the Company, or to require an accounting.

6.03    Withholding

The Company shall deduct from any payment under the Plan any federal, state, or local income or employment taxes that the Company, in its sole discretion, determines is required by law or governmental rule or regulation to be withheld with respect to such payment.  Each Participant shall bear all expenses of, and be solely responsible for all federal, state and local taxes due with respect to any payment received under this Plan.  All payments will be reported to the IRS.

6.04    Funding

All amounts payable in accordance with this Plan shall constitute a general unsecured obligation of the Company. Such amounts, as well as any administrative costs relating to the Plan, shall be paid out of the general assets of the Company.

6.05    Nonalienation

Subject to any applicable law, no benefit under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt to do so shall be void, nor shall any such benefit be in any manner liable for or subject to garnishment, attachment, execution or levy, or liable for or 

10

subject to the debts, contracts, liabilities, engagements or torts of the person entitled to such benefits.

6.06    Section 409A of the Code

All amounts payable under this Plan are intended to comply with the “short term deferral” exception from Section 409A of the Code specified in Treas. Reg. § 1.409A-1(b)(4) (or any successor provision), and shall be interpreted in a manner consistent with the applicable exceptions.  Notwithstanding the foregoing, to the extent that any amounts payable in accordance with this Plan are subject to Section 409A of the Code, this Plan shall be interpreted and administered in such a way as to comply with Section 409A of the Code to the maximum extent possible.  

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